Economy, Business, Credit, and Debit @ the Roundup #16

Welcome to the February 24, 2010 edition of road to financial independence.

Billeater presents Save Money on Your Home Internet Business posted at Billeater.

TradingStocks.com presents Market Neutral Investing posted at Trading Stocks.

KCLau presents Focus: Achieving Goals posted at KCLau's Money Tips, saying, "A guest post by Sayeed, a senior manager in a large MNC in Penang on how he achieved his financial goals"

presents How to Save for Retirement for 20 and 30 Year Old | eHow.com posted at FaithAllen, saying, "Your road to financial independence tomorrow depends on how you save for retirement when you are in your 20 and 30's."

debt kid presents What Is A Debt Snowball posted at DebtKid.

MatthewPaulson presents Factors That Affect Home Values posted at Fine-Tuned Finances.

Wise_Bread presents One Step Guide to a Better Job and More Money posted at Wisebread.

Silicon Valley Blogger presents Best Online Stock Brokers For Cheap Stock Trades posted at The Digerati Life.

The Smarter Wallet presents Gold Chart Update: Where Is The Gold Market Headed? posted at The Smarter Wallet.

All Others

Jen aka Kittykat7983 presents Discover 3 Ways to Make Money Working Online posted at Lee McIntrye's Point and Click Coaching - Reviewed.

TheSmartestConsumer presents Real Rate Of Investment Return posted at The Smartest Consumer, saying, "Understanding real rate of return is important for successful financial planning."

presents How to Plan to Pay Off Debts Fast | eHow.com posted at FaithAllen, saying, "Paying off debts is essential for financial independence. Debt is very damaging to a person financial situation that you must be free from to reach your financial independence."

Donald Latumahina presents How to Make Extra Money Online posted at Life Optimizer.

tristin presents This Is Me ? I Will Become a Millionaire posted at tristinaugustus.com, saying, "Inspiration for Everybody!"

Lazy Man and Money presents Seven Things You Must Do to Prepare for An Emergency posted at Lazy Man and Money, saying, "Get prepared for natural and real life emergencies."

JJF presents IRS Imputed Interest Rules | IRS Tax Advice posted at The Personal Finance Blog.

nissim ziv presents Career Transitions: What Are Your Mental Resources? posted at Job Interview Guide, saying, "Career transition sounds promising to those who feel that their current career doesn’t seem to fulfill their desires – their career aspirations.
Though many people decide making a career transition, not so many can make it."

Charles Chua C K presents 7 Tips to Avoid Debt posted at All About Living with Life.

Wenchypoo presents Ending Bureaucracy posted at Wisdom From Wenchypoo's Mental Wastebasket.

Deb Bixler presents Sales Technique-Direct Sales Marketing posted at Direct Sales / MLM Cash Flow, saying, "Don't take the art out of sales! Comments welcome!"

Martin Russell presents My Biggest Mistake Starting Off posted at Martin Russell.

David de Souza presents Tax Rebate Forms ? Tips and Advice posted at UK Tax Blog, saying, "Some tips and advice for when you complete your tax rebate forms this year."

The Investor presents Would you sell yourself for £1 million? posted at Monevator.com, saying, "Selling your future income for money today is a novel idea that one man is trying. Would you?"

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Carnival of road to financial independence #16

Welcome to the February 23, 2010 edition of road to financial independence.

Beating Inflation

Curt presents 7 Steps to Lift Yourself Out of the Recession: Series Introduction posted at PennyJobs.com.

HighestCDrates presents What is a Certificate of Deposit? posted at Highest CD Rates Info, saying, "A certificate of deposit can be a stable addition to any portfolio."

Frugal Living

Annette Berlin presents Reu$e And Save Series: Plastic Bags posted at Stuff With A Purpose, saying, "Because plastic bags are not biodegradable, I try to avoid them whenever possible. When they can’t be avoided, I try to at least reuse them. Here are ten ways I utilize plastic bags a second time."

Inside Mutual Funds presents How To Raise Your Credit Score posted at Spare Dollars, saying, "Your credit score can mean everything when it comes to getting a loan and not paying as much back in interest. By taking care of your credit score you can save yourself hundreds or thousands of dollars in interest. This article talks about a few easy ways to improve your credit score."

Tom Tessin presents How Buying Online Saves You Money posted at FSC Blog, saying, "If you're shopping in the stores.. stop! Find out why you should shop online."

MDP presents Free Money posted at My Dollar Plan.

Darryl Holland presents Why You Should Care About Your Credit Scores posted at Credit Secrets Revealed By Darryl, saying, "Learn to improve your credit score by up to 247 points in the next 90 days.Soon you will be able to proudly run a credit check with no shame.Stop paying more interest for your loans and credit cards.Start getting those low interest rate loans that you deserve.The Credit Secrets Revealed ebook will help you solve your credit problems."

James Adair presents New FHA Rules! (how does this effect Portland?) posted at Oregon Mortgage Blog, saying, "Federal Housing Administration is planning to introduce new rules by increasing its cash position and lower its risk profile for about a year. This increase will affect the down payment, as the first payment amount changed by FHA would increase from 3.5% to 5% down. This increase will affect the down payment, as the first payment amount changed by FHA."

ATP presents Frugal Living posted at BLOGGING MY WAY OUT OF THE RAT RACE.

Peak Personal Finance presents How Much Mortgage Can You Afford? posted at Peak Personal Finance, saying, "Remember these extra costs of home ownership the next time you shop for a house."

jim presents How to Build a Zero-based Budget posted at Blueprint for Financial Prosperity.

Steve Faber presents Propose To My Girlfriend » Cheap Wedding Plans – How to Save A Bundle of Money on Your Dream Wedding posted at Propose To My Girlfriend, saying, "Here are some powerful strategies to avoid starting off your life together deeper in debt than you need to. Sure many times the bride's father kicks in a nice wad of cash, but many people simply don't have that luxury."

Jasmine Hall presents 50 Best Money Blogs for Women posted at Accounting Degree.com.

Joe Johnson presents How to Be Fashionable on a Budget posted at Fashion Merchandising, saying, "About saving money and resisting impulse purchases when buying clothes."

Case Ernsting presents Unemployment Doesn?t Have to Suck posted at FinditLocal411 Blog, saying, "With so many jobs disappearing from the table in this tough economic times, it's important to manage your finances until you land on your feet. Unemployment is something many of go through, and with some hardwork, you can get out of this tough financial situation."

BWL presents How Much Can You Afford To Pay For A House? posted at Christian Personal Finance, saying, "A look at how much house we can afford and how much we should buy..."

Passive Income

Darwin presents Business Development Companies – Excellent Overlooked Investment Strategy posted at Darwin's Finance, saying, "If you haven't heard of Business Development Companies, this article highlights some of the opportunities and risks associated with these high yield investments."

James The Traveler presents Ways To Make Money Online posted at Make Money Right Now, saying, "Your Own Online Business Can Lead To Financial Freedom."

Steve Patterson presents How To Use Video Marketing To Showcase Yourself Online posted at Technology, saying, "At some point in the video, when the time is right, mention your website."

MyMaria presents What Makes a $1,000+ eHow Article? posted at My Work at Home Mom Blog, saying, "As a work at home mom, building passive income through online writing allows me more time with my family. I've used eHow to build residual income -- and have had several articles earn over $1,000 a piece in the process."

Reducing Expenses

Lynnae presents YNAB 3 Personal Budget Planning Software Review posted at beingfrugal.net, saying, "Budgeting is the best way to figure out what expenses you can reduce."

MDP presents Do You Have a Worst Case Scenario Plan? posted at My Dollar Plan.

Peak Personal Finance presents Tax Time: Home Related Tax Breaks posted at Peak Personal Finance, saying, "Don't miss these tax savings from home ownership."

MDP presents Do You Overlook the Indirect Costs? posted at My Dollar Plan.

Patrick @ Military Money presents Which Types of Insurance Do You Really Need? posted at Military Finance Network, saying, "This article covers some of the basic types of insurance needed by most people, young and old."

Ki Gray presents Determining Whether to Refinance Your Mortgage posted at National Real Estate Blog.

jim presents Best Free Checking Accounts posted at Blueprint for Financial Prosperity.

Peak Personal Finance presents 3 Things to Ask Yourself When You Refinance | Peak Personal Finance posted at Peak Personal Finance, saying, "Keep these tips in mind if you are thinking of refinancing."

Four Pillars presents How To File Your Federal Taxes Online For Free posted at Quest For Four Pillars, saying, "Free online tax filing suggestions."

Stock Investments

Aussie Investor presents Best Shares To Buy In 2010 posted at Australian Investing, saying, "Buying shares over the past couple of years has certainly been a hair-raising experience for most of us. It's been an extraordinary roller coaster ride. So how do we restore our investment portfolios back to their former glory? In this post, the author offers some tips to help you find the best shares to buy for 2010."

Big Cajun Man presents De-Cluttering Financially posted at Canadian Personal Finance Blog, saying, "Just like getting rid of clutter around the house is important, de-cluttering financially is important too!"

Frank Goley presents Business Success Strategies by ABC Business Consulting » Blog Archive » Developing and Implementing A Winning Marketing Plan posted at Business Success Strategies, saying, "The business success strategies blog is written by small business success expert, Frank Goley, the chief business consultant for ABC Business Consulting. Frank has more than twenty years experience helping companies start, grow, turn around and succeed."

Frank Goley presents Strategic Planning for Business Success posted at Business Success Strategies, saying, "The business success strategies blog is written by small business success expert, Frank Goley, the chief business consultant for ABC Business Consulting. Frank has more than twenty years experience helping companies start, grow, turn around and succeed."

Frank Goley presents Small Business Finance: Equity, Debt, Cash Flow and IPO posted at Business Success Strategies, saying, "The business success strategies blog is written by small business success expert, Frank Goley, the chief business consultant for ABC Business Consulting. Frank has more than twenty years experience helping companies start, grow, turn around and succeed."

Abdulrasool Sumar presents How to Retire as a Millionaire with your 401k Plan and 7 Strategies to Achieve Growth of your 401k Plan posted at 401k, saying, "Learn the story of Knute Iwaszko who saved $1 million in his 401k plan with a $60,000 annual salary and paying the costs to raise 5 kids. You do not have to be a Goldman sachs CEO or a whiz kid on Wall Street making millions!"

stockman presents Chart Base Patterns posted at Learning Stocks, saying, "A key to being a succesful stock trader is learning how to spot chart base patterns and when to buy a stock. A chart base often acts as a foundation for stocks to “jump” off of; to begin a large share price increase."

Dividend Growth Investor presents Realty Income (O) Dividend Stock Analysis posted at Dividend Growth Investor.

Frank Goley presents BUSINESS SUCCESS STRATEGIES » Blog Archive » Why a Business Plan is so Important to your Business Success posted at Business Success Strategies, saying, "The business success strategies blog is written by small business success expert, Frank Goley, the chief business consultant for ABC Business Consulting. Frank has more than twenty years experience helping companies start, grow, turn around and succeed."

Alan Johnson presents Market Timing Manipulation posted at The Reasoned Investor.

Debt Hawk presents Fidelity Enhanced Index Funds posted at Mutual Fund Explorer, saying, "The Fidelity Enhanced Index Funds were designed to follow a specific index and outperform it."

MDP presents Lending Club $100 Sign Up Bonus posted at My Dollar Plan.

FMF presents Is It Possible to Beat the Market? posted at Free Money Finance, saying, "Is it really possible to beat the stock market? Or are you better off simply investing passively in index funds? This post, along with comments by readers, debates the issue."

Patty Pedersen presents Seven Ways to Invest in Auto and Auto Part Stocks posted at AlphaProfit MoneyMatters - Investing Blog, saying, "Auto stocks are a favorite of the momentum crowd. Assets in Fidelity Select Automotive have swelled 20 times from a year ago. This article presents five prudent auto plays including Autoliv and Penske Auto."

That concludes this edition. Submit your blog article to the next edition of
road to financial independence
using our
carnival submission form.
Past posts and future hosts can be found on our

blog carnival index page.

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Technorati tags:

road to financial independence, blog carnival.

Stock Portfolio and Watch List Updates for February 2010

Following are the activity from the previous month:

1. Sold Costco (COST) on 02/09/2010 at $58.29 for a 6.6% loss. The stock was purchased in October 2008 just before the credit bubble blow up. The share price went as low as $38 during the March lows before bouncing back. We realized some income from dividends and covered calls during the period of our ownership making the overall return around break-even.
2. Doubled our Kraft (KFT) position at $28.57 on 02/09/2010. The Cadbury purchase is a huge step that should help grow Kraft – Cadbury has very good market share in fast growing developing areas of the world. The deal price was generous and the Pizza deal with Nestle (a side-deal to raise cash) was tax-inefficient and at less than fair value according to Warren Buffet. Even so, assuming Kraft is able to realize synergies while expanding globally, it should turn-out well.
3. Bought Telefonica SA (TEF) at $68.74 on 02/09/2010. The stock offers a very good dividend. The mobile operator has a strong presence in Spain and in Latin America. Overall, it is the third largest wireless operator in the world behind Vodaphone and China Mobile. Broadband & TV make up only around 12% of its customer base which makes those areas a growth opportunity.
4. Closed our ICICI Bank (IBN) March 40 Covered Calls at 0.95 on 01/22/2010. The calls were written on 10/06/2009 at $5.95. The transaction generated income of around 0.5% compared to the current portfolio value.

Our cash position is around 5%. Below is our updated portfolio – it is about 4.5% in the red:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	16.69	20.16	3.13	20.83	0.38
Philip Morris International (PM)	1/4/2005	32.19	49.98	6.43	55.25	0.45
Kraft Foods (KFT)	Various	26.33	28.92	5.98	9.85	0.23
Pfizer (PFE)	Various	24.37	17.99	4.65	(26.17)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	36.52	9.44	44.49	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	7.07	1.83	(37.01)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	32.94	5.96	(16.02)	0.03
Itron Inc. (ITRI)	11/07/2007	85.01	66.89	3.46	(21.41)	None
Anthracite (ACPI – formerly AHR)	11/09/2007	7.97	0.18	0.05	(97.72)	0.00
iRobot (IRBT)	12/18/2007	18.65	17.50	3.62	(5.36)	None
LDK Solar (LDK)	01/22/2008	30.49	6.58	1.02	(78.42)	None
Aegon N.V. (AEG)	04/28/2008	15.99	6.05	0.94	(62.16)	0.00
Frontline Limited (FRO)	10/06/2008	36.95	27.54	2.13	(25.46)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	5.62	2.03	(19.30)	0.00
Plum Creek Timber (PCL)	07/23/2009	30.50	36.65	7.58	20.17	0.46
CPFL Energia S.A. (CPL)	07/28/2009	50.45	63.78	6.59	26.43	0.55
BP plc (BP)	08/05/2009	51.49	54.30	5.61	5.46	0.45
AT&T (T)	08/27/2009	26.38	25.10	5.19	(4.87)	0.39
Sysco Corporation (SYY)	10/13/2009	25.23	29.14	6.02	15.48	0.39
Exelon (EXC)	12/30/2009	49.38	44.88	8.66	(9.12)	0.39
Telefonica SA (TEF)	02/09/2010	68.74	70.94	9.12	3.13	0.57
Cash				5.34
Total Portfolio					(4.45)	4.60

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
Ameritrade (AMTD)	5/21/2008	17.69	01/19/2010	17.45	(1.33)	(0.05)
AMTD Jan 17.5 Covered Calls (TQAAW)	1/19/2010	NA	9/10/2009	NA	NA	0.57
COST Jan 60 Covered Calls (PRQAL)	1/19/2010	NA	9/10/2009	NA	NA	0.14
IBN Mar 40 Covered Calls (ITZCN)	1/22/2010	NA	10/06/2009	NA	NA	0.50
Costco (COST)	8/01/2009	62.27	02/09/2010	58.18	(6.57)	(0.20)
Realized Gain/(Loss) YTD	-	-	-	-	-	0.95

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.

Our current watch list follow – Archer Daniels Midland (ADM), Automatic Data Processing (ADP), Boeing (BA), Becton Dickinson (BCK), BHP Billiton (BHP), Cardinal Health (CAH), Cresud (CRESY), Eaton (ETN), Emerson Electric (EMR), AgFeed (FEED), Glaxo (GSK), Home Depot (HD), Intel (INTC), Nokia (NOK), China Nepstar (NPD), Nutrisystem (NTRI), Nucor Steel (NUE), Qiagen (QGEN), Telefonica (TEF), UPS (UPS), and Waste Management (WM).

Bosnia & Herzegovina Stamps Profile

Bosnia & Herzegovina is a country is South-East Europe bounded by Croatia, Serbia, and Montenegro. There is also a 15-mile Adriatic Sea coastline. The country has a total land area of just under 20,000 square miles and a population of around 4.6 million – the population density is well above average at over 200 per square mile. The country consists of the plains in the Northeast and Southern regions with the rest hill and/or mountainous. The area covering present day Bosnia & Herzegovina was part of the Ottoman Empire until 1878 when the ottomans ceded the administration of the province to Austria-Hungary following the Berlin treaty. The Austro-Hungarian rule continued until after World War I which commenced when Serb nationalist youth Gavrilo Princip assassinated the heir to the Austro-Hungarian throne, Archduke Franz Ferdinand, in Sarajevo. After 1918, Bosnia & Herzegovina joined what became Yugoslovia in 1929. The province witnessed horrific war-crimes during World War II following cessation of Bosnia to Croatia following Nazi invasion of Yugoslavia. It became an independent country again in 1992 following the break-up of Yugoslavia. The GDP (ppp) stands at a modest $4500 although it has one of the highest income equality ranks – military industries and other public sector employment along with farming accounts for this. Politically, the country is divided into two entities - Republika Srpska (Serb - 49% of total area) and the Federation of Bosnia and Herzegovina (Bosniak-Croats - 51% of total area), the result of ethnic wars following independence and the Dayton peace agreement of 1995. The Brcko district, a third entity in the north created in 2000 out of land from both entities is a prosperous multi-ethnic area and represents the hope of the future of the country.

The first stamps of Bosnia & Herzegovina were a set (Scott #1 to #10, no #3) of nine in single colors showing the Coat or Arms released between 1879 and 1894. A mint copy of the set is very expensive at around $1000 while a Used set can be had for less than $60. The Coat of Arms design continued until 105 – three other sister-sets were released during this period – some of the lower denominations are especially affordable and can be had for a few cents (example - Scott #11 to #16) while others are valuable and fetch several hundreds (example – Scott #19 and #20. Other significant stamp issues of Bosnia & Herzegovina during the period till 1918 include:

1. A set (Scott #30 to #45) of sixteen stamps released in 1906 showing local scenes in single colors and Emperor Franz Josef in the highest denomination stamp. The designs show View of Deboj, View of Mostar, Piva Gate Jajce, Narenta Pass and Prenj River, Rama Valley, Vrbas Valley, Old Bridge or Mostar, Bey's Mosque of Sarajevo, Donkey post, Jezero and tourists pavilion, Mail Wagon, Bazaar at Sarajevo, Postal Car, Saint Luke's Campanile of Jajce, and Emperor Franz Josef. The set catalogs for around $25 MNH or Used.
2. A long set of twenty one stamps released between 1912 and 1914 showing Emperor Franz Josef (Austro-Hungary). The set (Scott #65 to #85) catalogs for around $170 MNH or Used. The highest denomination dark-ultra-gray 10K stamp is the most valuable at around $100.
3. An important semi-postal set released in 1916 (Scott #SP1 and #SP2) showing a wounded soldier and a blind soldier being helped by a woman. The designs capture the reality of the times very well. The set is very affordable and can be had for around $2 MNH or Used.
4. A set of eighteen stamps (Scott #105 to #122) released in 1917 showing Emperor Karl I. The set catalogs for around $40 MNH and $60 Used.
5. After independence in 1992, the three entities that form the country of Bosnia & Herzegovina issued their own stamps. One significant issue of Bosnia & Herzegovina after independence is the set of seven stamps (Scott #210 to #216) showing the Main Post Office of Sarajevo. The designs aim to capture the tumultuous civil-war period – the demolished interior, pre-civil war exterior, and post-war exterior serve as a constant reminder of the destruction caused by ethnic conflicts. The set catalogs for around $6 MNH or Used.

Significant stamps issues of Bosnia & Herzegovina (Bosnian Croat Administration) since 1992 include:

1. A stamp released on February 10 1994 to mark the formation of Bosnian-Croat Administration. The beautiful stamp (Scott #11) in multicolor catalogs for around $4 MNH or Used.
2. A stamp released on May 25 2003 to mark the World Wine Day. The stamp (Scott #102) catalogs for around $2 MNH or Used. It uses a simple design showing different types of cork-screws.

Significant stamps issues of Bosnia & Herzegovina (Serbian Administration) since 1992 include:

1. A beautiful set of three stamps released in 1994 showing monasteries. The set (Scott #37 to #39) show the following designs - Tavina Monastery, Mostanica Monastery, and Zitomislic Monastery. The catalog value is around $15 MNH or Used.
2. Another beautiful Costumes Set of four stamps released in 2001. The set (Scott #145 to #148) catalogs for around $5 MNH or Used.

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Last Updated: 07/2011.