Sandy’s Impact and Election 2012 and Links

New York City and the rest of the northeast took a big hit from Hurricane Sandy this week.

Millions are still without power, potable drinking water, or the ability to get to and from work.  It is a scary situation that will take several weeks to truly get over.

Edit: If you know someone impacted by Hurricane Sandy, they can apply online for FEMA assistance at http://www.disasterassistance.gov/ or by calling 1-800-621-3362.  If you’re on a smartphone you can check m.fema.gov  Help them out by passing on this info and help them communicate with the agency.

Meanwhile, the nation’s Presidential election happens on Tuesday.  Will New Yorkers get to vote?  Does it even matter on a national scale since New York tends to be a super-blue state?

Imagine not being able to get to work, cash a check, or buy groceries for two weeks.  Are you financially ready for a natural disaster?  Here are some articles to help you manage your money better:

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Microsoft Launches Windows 8 and Slate Tablet and Links

With one of the most radical changes in Microsoft’s history, the company launched a new tablet as well as a new version of Windows this week.

The software behemoth from Redmond, Washington is drastically altering the Windows operating system in hopes that you will use it on your PC, your tablet, wherever you are.  They’re also launching retail stores that look very similar to Apple stores to try and compete for the hearts and minds of consumers.

Initial reviews of Windows 8 have been positive, but I’m not yet convinced that having one operating system to rule them all is the best move.  I like my Windows desktop and wouldn’t enjoy a tile based interface.  (Little known fact: you can change everything to look like Windows 7 with the Start bar and everything.)

Plus the Slate tablets are competing in an arena that Apple practically invented and there are two versions of Windows 8: Windows 8 RT (for low power devices with huge battery life) and normal Windows 8 for tablets.

I think this is going to lead to a lot of confusion in the mind of consumers.

Thankfully you and I don’t have to worry about launching any historic products this week. Let’s focus on getting our personal finances straight:

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Using a Roth IRA as an Emergency Fund – Pros and Cons

Roth IRAs are by far my favorite type of investment holding account available.

I love the idea of setting aside $5,000 in after-tax money in order to never pay taxes on the amount ever again.

There are other perks to using a Roth IRA besides never paying income tax on your nest egg.  One of the most prominent: you can withdraw your contributions at any time, even before retirement.  (This isn’t recommended, of course, but it is possible.)  You won’t pay any penalty or taxes for withdrawing your contributions under normal situations.  You will pay tax and penalties if you withdraw your investment earnings, so never do this.

This unique withdrawal capability has some people counting on their Roth IRAs as an emergency fund.

But is this a wise choice or a fool’s gamble?

Should I Use My Roth IRA as an Emergency Fund?

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US and Iran May Have One-on-One Nuclear Talks and Links

There are rumors floating around in the international news community that the United States has agreed to one-on-one talks with Iran about its nuclear programs.

The White House has denied this rumor for now.  This is potentially huge news and could have a positive or negative sway on the election based on how voters perceive this as a foreign policy move.  With a stronger debate performance by Obama in the latest debate, will talking with Iran boost him further or give Romney more talking points?

Following the election closely is fine as long as you are following your finances more closely.  Here are some articles to help you do that:

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What is Social Security Tax?

When you get your first paycheck from a new job you might be surprised to see how many different deductions reduced your earnings.

You’ll see deductions for Federal income tax, state income tax if your state charges it, and a whole host of acronyms of other taxes.

One of those taxes is social security tax.

We’ve all heard of it, but what exactly is Social Security tax?

What is Social Security Tax?

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Incredible Baseball Post Season and Links

I thought about making another mention of politics and debates and all that, but you’re probably getting your fill from all of the local TV and radio ads.

Instead, let’s talk about something positive: baseball and the playoffs.

We’re just getting through the first real round of the playoffs and there have already been several amazing comebacks.  Games that were completely lost (like the Cardinals at the Nationals Friday night) are rescued from the fire to eliminate the other team.  Home runs robbed by leaping outfielders.  Multi-million dollar contract players benched for essential nobodies in the biggest media market there is.

It’s been a fun run and you can bet the commissioner’s office is applauding all of the enhanced interest in their sport.

I won’t be robbing anyone of a homerun this week, but I will be reading these:

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Should I Use the Home Office Tax Deduction for My Home Business?

Everyone that wants to be audited, please raise your hand.

No one?

Simply mention the phrase “home office tax deduction” and most people instantly think of an audit.

To say there is quite the stigma surrounding taking a home office tax deduction would be an understatement.  On one hand, many individuals assume if they claim deductions for using part of their home for business purposes that they will automatically incur the wrath of an IRS audit.  On the other hand, being able to write off a bunch of legitimate costs is extremely tempting and could save business owners and their employees a lot of money at tax time.

So should you use the tax deduction from running your business out of your home?  What can you claim and what are the risks?

How to Stop Fearing the Home Office Tax Deduction

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The First Election Debate and Links

President Barack Obama and Republican Nominee Mitt Romney sparred with words this week for the first official debate.

Both debaters shared their campaign’s views on heavy hitting topics, undoubtedly telling some white lies in order to sway voters.  Both parties promise to fix all of your problems all while not increasing taxes or cutting funding to programs.  Both are not telling the truth.

Stop worrying about the election and start worrying about your finances.  Here’s some tips to get started:

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The Difference Between a Hard Credit Pull and a Soft Credit Pull

Your credit score is an incredible tool that can build up your life if used properly and tear it down if abused.

The difference between a great credit score and an okay credit score might be the difference in 0.5% interest on a home or auto loan and thousands of extra dollars of interest paid.

If you’re looking to protect your credit score you need to be aware of the difference between a soft credit pull and a hard credit pull.  One can damage your credit score while the other is mostly harmless.

Do you know the difference?

Two Types of Credit Inquiries: Soft Pull and Hard Pull

Here’s a look at the two types of credit report pulls.

What is a Soft Credit Pull?

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Facebook Reveals Gift Function and Links

Facebook has a revenue problem that it may have solved a portion of recently.

The company announced a new function today called Facebook Gift where you will get a friendly reminder that you have a friend with a birthday, and you should send them a gift.  When you buy a gift through Facebook the company gets a cut of the revenue.

This is a much preferred model of earning revenue compared to banner ads like Facebook has now.  A vast majority of those ads are meaningless to users, and a majority of clicks on those ads are alleged to be by bots that are designed to milk advertisers.

I prefer to buy gifts for my friends because I know them not because a social media site says to, but that doesn’t mean Facebook’s stock price won’t go up.

Make sure you don’t spend too much money on those gifts. Track how much you spend with some of these great articles:

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