This week saw the passing of Jack LaLanne. He was one of the first fitness gurus I can ever remember, on TV daily when I was a child. Good-bye Mr. LaLanne, I hope we learned the lesson you taught.
Joe
My latest guest post at the Turbo Tax Blog is about State Sales Tax. How it varies from state to state, how it may be deductible on your income taxes, and best of all, why your bagel in New York will cost you nine cents more if sliced. I kid you not.
Joe
Yes, there’s a correlation. Well, maybe. 40 years ago, Walter Mischel, a psychologist specializing in personality theory and social psychology conducted an experiment. He put children at a desk with two marshmallows. The children had a choice, to eat one immediately, or to wait about 15 minutes to be able to eat two. The children either passed, earning the extra marshmallow, or failed, and just got the one. The children were then studied years later, and the gratification delayers were far better off, their SAT scores averaging 210 points higher. The instant gratifiers had higher BMI (body mass index) and were more likely to be drug users.
We have so many tests we are given throughout our lives, standardized testing starting in the early years at school. In the end, is it really possible to measure future success through this simple experiment? And if so, how do use this data once we accumulate it? Do we attempt to teach our children patience and the benefits of delayed gratification, or is this behavior so part of their nature, we need to just prepare for the inevitable? I offered my 12 year old the choice. Her response? “How about we wait till Friday, light a fire, and eat the whole bag.” Good answer.
Note, I was made aware of this experiment through a Forbes article, How To Raise Financially Responsible Children,and after a bit of searching found a more in depth piece at The New Yorker, Don’t, The secret of self-control. If this story piques your interest, both articles are interesting reading.
FTC disclaimer – I received no marshmallows or any compensation from any marshmallow companies for this article.
This week, let’s start with B.H. Greenberg’s Top 10 Worst Estate Planning Mistakes. Of course, the first mistake of estate planning is to not have one. And remember, these are only the worst, there are more where these came from, so start here and learn.
Next, Tom Drake at Canadian Finance Blog answers How Much Mortgage Can I Afford? It seems that in Canada, the 35 year mortgage was not uncommon, but it was recently announced that 30 year would now be the maximum mortgage term.
Financially Poor gives us 9 Tips to Help You Become Financially Fit. A great list, but my favorite? “Get Free Money From Your Employer.” There’s no excuse to ignore the matched 401(k). Many employers will match your first 5% of income dollar for dollar, don’t miss out on any of this.
Dawn Fallik wrote at Wallet Pop, Tribute Coins May Be Pretty — But They Are a Pretty Bad Investment. You may have seen the commercials – first they show a $50 one ounce gold coin, then they offer you a replica, with about 65 cents worth of gold plating. These coins are advertised heavily on CNBC, but as with anything, buyer beware.
Also at Wallet Pop, Kelly Phillips Erb (aka TaxGirl) wrote about Nine Tax Deductions You Shouldn’t Even Think About Claiming. Fortunately, none were on my list.
Last, this week, I read that Roth IRA conversion surge. I continue to believe many are making the conversion who should not be. The average conversion in December was $94,000, even if split over two years, it may put the account holder into the next marginal rate. Be very careful before you convert.
New claims for unemployment fell this past week, but the nature of these jobs goes unreported. Too many are grabbing work where they can, but at reduced incomes, and in many cases, part time work.
Joe