Jan 1, 2020
Nov 14, 2010
'Will'' You or Won't You?
No one ever wants to experience a life threatening or life altering illness. But the truth is, people face these kinds of situations everyday. It's so important to take action before a catastrophe strikes, so you can make important decisions with a clear head. This will help you insure that you and your family, income, and assets are protected in the way you want them to be.
Here are some important decisions you can make to protect yourself and your family.
Create a Will
It's been estimated that seventy percent of Americans have never drafted a will. This is amazing, because it is one of the most important documents you will ever create, especially if you have children.
In addition to your will, it is advisable to create Power-of-Attorney's to allow someone you trust to be able to make financial decisions or pay bills on your behalf if you are not able to do so yourself.
Also consider creating a living will, outlining the types of treatments that you would want or not want to have performed. Typically a living will is accompanied by a health care proxy, which is a Power-of-Attorney specifically for making medical decisions.
Start an Emergency Fund
There are dozens of reasons that it is important to build up a nest egg of cash, but one of the most important is to help protect against the loss of income that can occur during a medical crisis. Rarely considered for couples who both work, but worth mentioning, is that during a medical emergency, not only would the ill individual be out of work, but oftentimes the other would also have lowered income due to spending time and energy with the sick partner.
"Insure" Your Safe Future
Life insurance is rarely considered a popular discussion topic, but it is a very important way to protect your family. Dealing with the loss of a loved one is very difficult and there is no easy way to ease the pain. And the financial problems, although secondary, can be very serious. Loss of home, income, and savings can all be avoided with the right life insurance plan. Other types of insurance to investigate are disability insurance - which can help provide income if you are unable to work because of an injury or illness - and also long term care, which can help you preserve your assets from being eaten up by caretakers in the future.
Avoid Scams During a Loss
It's also important to be prepared during the loss of a loved one, especially as this is never an easy experience for a family, and people are often understandably distracted and overwhelmed with things to take care of. In fact, scam artists often use the obituaries in the newspaper as a way to target potential victims. Here are some tips to help you or your loved ones prepare yourselves during times of loss:
Protect Your Home: If funeral service dates and locations are listed in the newspaper obituary, scam artists will be able to tell when you will be away from home. And with friends and relatives visiting to pay their respects, neighbors may assume someone entering your house has permission to do so. To be safe, either ask a friend or neighbor to house sit while you're away, or let your neighbors know your plans so they can look out for suspicious visitors.
Know Who's Calling: If you have caller ID on your home phone, make good use of it and don't answer calls from unknown numbers. This will help you avoid calls from companies or individuals who are running cons. Remember: Any companies or people who pressure you during difficult times probably aren't looking out for your best interests.
Be Mindful of What You Pay: As you are going through papers, pay all bills that you know are legitimate like the mortgage, utilities, credit cards, and car payments. Do not pay anything from unknown parties or companies, including invoices, investment opportunities, calls for orders placed, or calls for money owed.
Get a Second Opinion: Sorting through paperwork can be overwhelming during times of loss. Consider asking a friend, family member, or even a trusted professional like an accountant or attorney to review any invoices or claims before you send a payment.
Losing a loved one is never easy. Let these tips help you be prepared when difficult times arise...and help ensure your loved ones are taken care of the way you want them to be.
Oct 26, 2010
Are you using Wordpress
There has been speak about using Wordpress beyond the normal web log configure, into the realms of a fully fledged content management system or CMS. Yet, the majority of people have no notion how this is even possible.
I must stress that the default Wordpress software is intended to be a blogging tool, so if you're trying to make it work like an alternative sort of content management tool you'll have to use the right plugins (enhancements) and have the a plain idea of what you need to accomplish.
While the exact gradual method is out of the scope of this article, lets explore some of the methods you can employ Wordpress, as I have personally done before.
1) Wordpress as An Article Directory
To make Wordpress work as an editorial directory, you need a special plugin, and an origin for the articles. MyArticleMarketer.com is the ideal tool for this, as the articles there are normally human-approved. They also encourage free distribution of their articles to other article sites.
After you have configure the Wordpress plugin, you should sign-up for Article Marketer's distribution list. By filling in their form and specifying the categories (or choose all categories), you automatically qualify to receive all old and new articles that are put forward to MyArticleMarketer.com
Although, with Wordpress as an editorial directory, you'll only be in a position to receive syndicated articles. Authors won't be in a position to sign-up or create a news report directly with you. It is likewise against MyArticleMarketer.com's terms or service to encourage authors to sign-up directly with you.
2) Wordpress as a Membership Site
You can set-up a free or paid membership site using Wordpress. All it takes is a couple of simple plugins to get the job done. As soon as you have installed the plugins, members will need to login to your site in order to view the content. You can also place a login form in your Wordpress style files to make it simple for users to lo inside and outside of your membership site.
Although, the plugins only create an easy membership system, so if you are expecting to create different membership levels and more advanced features, you'd probably want to sign-up with a professional membership system like AmemberPro.net and use their available plugins to ingrate with Wordpress.
Right at that moment of writing, AmemberPro.net has available plugins for a fair price and these will be installed by their support team, so you do not have to worry about the technical setbacks.
3) Wordpress as a Classified Ads System
Wordpress can work like any other classifieds site too. Users can sign-up on your website and place classifieds in the sort of new web log posts. They can also set expiry dates for their ads and specify listings or wanted ads.
Although, you will need to create all the necessary categories and even create a sign-up information page to teach your users how to place ads. The upside of using Wordpress as a classifieds site is that you can also employ tagging tactics to get traffic from web 2.0 sites and sites like Technorati.com
4) Wordpress as an Audio / Video Training Site
Utilizing the membership plugins mentioned above or AmemberPro.net's Wordpress compatibility plugins, you can make a membership site with Wordpress. Then, all of that is required to do is to include the Podpress plugin which looks after all audio and video elements on your site.
You will be in a position to display and stream MP3 audio or FLV video employing their intrinsic players. The Podpress plugin is actually robust and likewise permits you to specify setting on iTunes, so you can make this commercially and accessible to the entire iPod / iTunes community.
As you should be able to see by now, there's a whole lot of possibilities when it comes to using Wordpress to the extreme.
Oct 1, 2010
A New Way to Cut a Mortgage
Some homeowners who already have refinanced into low-interest-rate mortgages are using a little-known strategy to make their monthly payments even smaller.
Called "recasting" or "re-amortizing," the strategy allows a borrower to lower the monthly payment on an existing fixed-rate home loan for a small fee without having to apply for a new loan and without having to pay reappraisal and other fees.
Recasting also may enable homeowners to save on interest paid over the life of the loan, merely by putting a large sum of cash against the principal, whether or not they have refinanced already.
The bad news? Banks don't advertise the strategy, perhaps because it is less lucrative than refinancing a mortgage. And not all loans are eligible. To find out more, you will have to ask your lender directly.
At J.P. Morgan Chase & Co.'s Chase Home Finance unit, less than 200 mortgages a month are recast out of 10 million home loans outstanding, a spokesman says. At Bank of America Corp., about 200 to 300 a month recasting requests are received out of about 14 million home loans serviced by the company, a spokesman says. Neither bank has seen increased demand.
Here is how it works: A homeowner asks his loan servicer if he can put a large sum of money against the outstanding principal on the mortgage. Ordinarily, doing so would enable him to pay off the loan early, but he would still have to pay the same monthly note. But if the lender agrees to recast the mortgage, he may be able to reduce the monthly payment over the remaining term of the loan.
For example, a person with a 30-year $300,000 fixed-rate mortgage and an interest rate of 4.75% who recasted one year into the loan by putting in $60,000 toward the principal would trim his balance to $235,371. Assuming there were 29 years left on the loan, that would result in a monthly payment of $1,247 instead of the original $1,565.
Recasting can be a good choice for borrowers who have cash and want to reduce monthly payments but who can't refinance, such as those with no-documentation loans, most of whom can't get the same types of mortgages today due to tighter regulations, even if they have high income and good credit. (Self-employed professionals often find themselves in this boat.) And at a time of low interest rates on certificates of deposit and U.S. Treasury bills, paying off a mortgage early is a relatively safe investment that brings a return at least equivalent to the interest rate on the mortgage itself.
There are downsides to the strategy. Many financial experts advise against putting additional cash into one's residence, arguing that higher returns historically have been available in the financial markets and interest rates on bonds are likely to rise eventually.
They also warn of the possible tax consequences of retiring a mortgage early, because mortgage interest on a primary residence can be tax-deductible.
Mortgage recasting resembles a "cash in" refinancing-a newly popular strategy in which a borrower pays down principal on an existing loan in order to qualify for a new loan with a lower interest rate. In a recasting, though, the interest rate and the number of payments remain the same, and there are no transfer and title costs.
Getting permission to recast a loan can be tricky. The loan must be in good standing, and you need to secure permission from the loan servicer, who may or may not be the original lender. If the loan has been sold to an investor, the servicer also must secure its approval.
Since nearly two-thirds of all outstanding mortgages have been sold to investors via mortgage-backed securities, some homeowners could find this step difficult, especially those with subprime and "jumbo" mortgages. (Jumbos are loans that are too big to receive government backing through Fannie Mae, Freddie Mac or the Federal Housing Administration.) If approved, the borrower will need to sign a modification agreement, a legal document recording the change of contractual terms.
Each lender sets its own fees and requirements. Chase requires a minimum $5,000 principal payment to recast a loan and charges a $150 fee, for example. Bank of America generally charges $250. It suggests at least $1,000 be paid toward the principal, but has no minimum.
John Henry Low, a fee-only financial planner in Pine Plains, N.Y., says homeowners should have one to three years in savings as an emergency fund before tying up additional cash in their homes, even if the account is "paying nothing."
A financial adviser in Pennsylvania says he refinanced a $270,000, 15-year mortgage in November 2009 on a second home at a 4.25% interest rate. This year, he inherited some money and instead of having money "sitting around in a money-market fund earning a fraction of 1% interest," he decided to put $75,000 to pay down principal on his mortgage.
So he requested a recast in a letter to Chase, which had acquired the loan. To get it, he paid a $150 fee.
With 14 years remaining on the mortgage, his balance was reduced to $170,020, factoring in additional payments he had been making toward the principal. This reduced his monthly payment of principal and interest from $2,032 to $1,322, excluding escrow payments-a savings of $710 a month.
If he puts the $710 monthly savings back into the principal, he will pay off the mortgage in a little less than eight years, saving $24,300 in interest. He also has the flexibility of a reduced monthly payment "in case I lose my job or something in the future," he says.
You don't need to recast your loan in order to save thousands of dollars in interest over its life. You can simply make additional payments toward principal on an existing mortgage without paying a dime in additional fees, or make a 13th mortgage payment each year-assuming, of course, the loan has no prepayment penalty.
One thing in homeowners' favor: The recent overhaul of banking regulations has severely restricted prepayment penalties on new mortgages.
Write toM.P. McQueen at mp.mcqueen@wsj.com
Jul 27, 2010
Who is Robert J Russell
Do you need a Speaker for your next event ?
Call Robert J Russell - check out his Speaking website: http://robertjrussellspeaker.weebly.com/speaker.html
Watch the video - Who is Robert J Russell > http://www.youtube.com/watch?v=EcUlvMoPwyA
Jul 22, 2010
What's the difference between a Realtor and Real Estate Agent ?
I get this question all the time so I want to address it here.
Some people say they'd rather use a Realtor than a real estate agent because they believe they must have something more to offer. There is a misinterpretation that Realtors have more education, or even that they specialize in a specific niche. Realtor's and real estate agents are the same thing, with only a few very minor differences that don't mean a whole lot when you add them up. Realtors have some benefits that agents do not have, but for the most part, they do not affect the buying and selling experience of the client whatsoever.
Becoming a Realtor. In order to become a Realtor, you must already have your real estate license. To get your real estate license, you need the classes required by your state and then you must pass the exam. As a real estate agent, you are placed in a position of trust, so you must pass a background check and have nothing on your record that could lead the Departent of Real Estate to believe that you might do something illegal.
Discrimination. As a real estate agent, you cannot say or do anything that can be described as prejudice as far as race, gender, orientation, and so forth. It is a common belief that Realtors are more trusted and educated on this subject than agents, which is simply not the case. Realtors do take an orientation class that lightly covers the subject, but there is nothing that delves deep into the rights and wrongs of discrimination under the eyes of the law that wasn't already covered while they were taking classes to get their license.
Education. Some people have the misconception that Realtors are better because they've been required to take extra classes to obtain the status of Realtor, when that is actually another mistaken belief. Realtors do get some discounts on training, which most often amounts to $5-$15 in savings per seminar. This does not declare that Realtors must attend. In fact, it's completely optional for both agents and Realtors.
Medical benefits. Realtors can choose to pay extra to get medical coverage for their families, which can be a lot more convenient and inexpensive than purchasing it individually. This is one of the bonuses that nobody realizes exist unless they have joined the multiple listing service and the board as a Realtor, or are considered a real estate agent and have heard of the medical coverage benefits offered by the board. Again, this is a benefit for Realtors that does not affect the client whatsoever.
Higher status. People who become Realtor's aren't any better than real estate agents. The only true difference is that people who choose to be Realtors pay a lot more dues than those who are just agents. If that Realtor should change to an office where the broker is not a member, that agent loses their "Realtor" status and then becomes a real estate agent. Other than that, their business life continues unchanged and uninterrupted by the different title.
Naive advice. Sometimes people will give advice, in person, in books and even in articles to only use a Realtor if they want to get the best agent. However, it really doesn't make a difference in the end because they are both the same. If you are looking for a real estate specialist to help you in a transaction, choose one according to their personality, work ethic, experience, drive and other characteristics that they need do the best job for you. Then you're options will be open and a good old regular real estate agent might get an opportunity to help you with a transaction, or it could be a fantastic Realtor too.
Becoming a Realtor. In order to become a Realtor, you must already have your real estate license. To get your real estate license, you need the classes required by your state and then you must pass the exam. As a real estate agent, you are placed in a position of trust, so you must pass a background check and have nothing on your record that could lead the Departent of Real Estate to believe that you might do something illegal.
Discrimination. As a real estate agent, you cannot say or do anything that can be described as prejudice as far as race, gender, orientation, and so forth. It is a common belief that Realtors are more trusted and educated on this subject than agents, which is simply not the case. Realtors do take an orientation class that lightly covers the subject, but there is nothing that delves deep into the rights and wrongs of discrimination under the eyes of the law that wasn't already covered while they were taking classes to get their license.
Education. Some people have the misconception that Realtors are better because they've been required to take extra classes to obtain the status of Realtor, when that is actually another mistaken belief. Realtors do get some discounts on training, which most often amounts to $5-$15 in savings per seminar. This does not declare that Realtors must attend. In fact, it's completely optional for both agents and Realtors.
Medical benefits. Realtors can choose to pay extra to get medical coverage for their families, which can be a lot more convenient and inexpensive than purchasing it individually. This is one of the bonuses that nobody realizes exist unless they have joined the multiple listing service and the board as a Realtor, or are considered a real estate agent and have heard of the medical coverage benefits offered by the board. Again, this is a benefit for Realtors that does not affect the client whatsoever.
Higher status. People who become Realtor's aren't any better than real estate agents. The only true difference is that people who choose to be Realtors pay a lot more dues than those who are just agents. If that Realtor should change to an office where the broker is not a member, that agent loses their "Realtor" status and then becomes a real estate agent. Other than that, their business life continues unchanged and uninterrupted by the different title.
Naive advice. Sometimes people will give advice, in person, in books and even in articles to only use a Realtor if they want to get the best agent. However, it really doesn't make a difference in the end because they are both the same. If you are looking for a real estate specialist to help you in a transaction, choose one according to their personality, work ethic, experience, drive and other characteristics that they need do the best job for you. Then you're options will be open and a good old regular real estate agent might get an opportunity to help you with a transaction, or it could be a fantastic Realtor too.
Jul 16, 2010
Which is legal - Pepper Spray or Mace ?
Are self defense products such as pepper spray and mace legal?
Believe it or not pepper spray and mace are legal for self defense and personal security purposes in all U.S. states. New York, Massachusetts, and Michigan have specific restrictions that must be followed in order for users to be lawful.
Residents of New York state must purchase all defense spray from a licensed firearm dealer or licensed Pharmacist from within the state. Unfortunately, for New York residents, this means it is unlawful to purchase pepper spray products from anyone outside of the state. Specifically, residents can lawfully purchase and carry pepper spray by signing a form that affirms they are 18 years of age or older and have no felony convictions. Residents are limited to 2 canisters of pepper spray per transaction.
Massachusetts does not allow consumers to recieve pepper spray or mace by mail. All residents must purchase from a licensed firearm dealer. Residents of Massachusetts do not have to sign for their pepper spray products, so they are on the honor system. As a result, many consumers purchase defense sprays online and have them shipped to a border state for pickup.
Ironically, both New York and Massachusetts put no restrictions on the sale of bear and dog spray repellent. Some bear sprays are more potent and powerful than the human version. With no restictions on the animal version, many consumers living in New York or Massachusetts purchase online for their personal self defense.
The state of Michigan limits the concentration of pepper spray to 2% OC (oleoresin capsicum). A 2% concentration of CS tear gas is also legal. Pepper spray and tear gas cannot be combined. Again ironically, the percent concentration of OC does not necessarily correlate to hottness or potency. For example, we sell a 10% OC pepper spray concentration that is rated at 2 million SHU's, (scoville heat units are the industry accepted measure of hotness) which is illegal in Michigan. We also sell a 2% concentration that has a 5.3 million scoville heat unit rating and is legal. Michigan residents are limited to 35 grams of spray per person.
There are cities, towns, and counties who have specific restrictions regarding the use of a self defense spray like mace or pepper spray. It is advisable that you check with local law enforcement to ensure you are following all applicable laws.
Jun 29, 2010
Are you on Facebook - Check out our page
A big thank you to everyone who's become a fan on Facebook. If you haven't yet, we invite you to join the group .
The tips we give out aren't paid for or sponsored in any way. We're extremely grateful to have our loyal readers, because as we've mentioned in the past, our mission is to help people all over the world.
However, when you think of Robert J Russell, we hope that you will visit our website first!
Visit us online at http://www.robertjrussell.com or by phone at 972-679-9029. Thanks!
May 8, 2010
Mother's Day planning ( don't let her read this )
Mother's Day is just a few days away. If you've yet to plan a celebration for the mom or moms in your life, you'll definitely want to stick with this article. It may be too late to make reservations at a restaurant, but it's not too late to put together an incredible lunch that you can serve right in your own home.
Our moms play such an important role in all our lives, so it's only fitting that we create a special celebration on the day that honors them. Before we get into the subject of the food, let's talk a little about the day as a whole.
In addition to giving us life, moms do a whole lot for us. They are an example to their daughters of how to be a strong woman, as well as to their sons of the caliber of woman they should strive to have in their lives. They push us to do better as individuals, while at the same time provide comfort when we are vulnerable. Moms are the ultimate multi-taskers, oftentimes juggling careers with household and family responsibilities. In general, moms have very few moments to themselves. The reason - their job is 24/7, 365!
Today is mom's day to relax…completely. One duty she need not take on is planning her own Mother's Day celebration. That's going to be your job and I am going to help you do it. Don't worry. It's going to be fun. What do you say we get started?
Pampering
Considering the amount of pampering our moms do for us, it's only fair we return the favor on her big day. This may sound like a big job, but I'm going to simplify it for you by giving you two words to remember - spa day.
You'd be hard-pressed to find a mom that would not enjoy having a day of beauty. I'm serious when I say you really can't go wrong with this. Send her to the spa for a massage or a facial, or the salon to get her hair done. Even the nail salon for a manicure and pedicure, or a yoga class would work. The key is to find something she enjoys and that fits into your budget. Make her a mid-morning appointment on Mother's Day and get her out of the house for a few hours. This will give her a chance to decompress, and you a chance to put the finishing touches on a great spa-like meal.
Now, let's get cooking!
Food
It's not uncommon for a spa day to include a healthy yet satisfying lunch, as there is nothing like eating great food after a massage and a sauna. The difference on Mother's Day is that instead of mom eating that lunch at a restaurant, she'll be able to do it in the comfort of her own home…without having to do any of the work.
I'm going to set you up with a complete spa lunch menu that will not only fit the bill in terms of good eats, but it's something I'm confident anyone can pull off. First up is the Mother's Day salad.
Mother's Day Salad (serves 2)
- 2 hearts of Romaine lettuce (sold prepackaged in the produce section), sliced in half lengthwise
- 1 medium to large-sized, ripe Haas avocado, sliced in half lengthwise and seed removed
- 15 25-count shrimp (tails and shells left on)
- 12 cherry or grape tomatoes, sliced in half lengthwise
- Feta cheese crumbles
- Extra virgin olive oil
For the Dressing:
- Zest from 1 orange and the juice of 1/2 the orange
- 1.5 tbsp white wine vinegar
- 1 heaping teaspoon Dijon mustard
- 1 teaspoon honey
- 1/2 teaspoon smoked paprika
- Kosher salt and freshly ground black pepper
- 1/3 to 1/2 C extra-virgin olive oil
Poaching Liquid for the Shrimp:
- 3 to 4 C water
- 1 C dry white wine
- 1/2 onion sliced
- 2 garlic cloves, peeled and smashed
- 20 black peppercorns
- 2 bay leaves
- 2 sprigs of thyme
- Kosher salt
- 1 large bowl of ice water
Poach the shrimp on Saturday evening before Mother's Day. Begin by adding all of the ingredients for the poaching liquid (except the salt) into a saucepan. Heat on a high flame until the liquid begins to boil. Reduce to a very low simmer and cover. Allow the mixture to simmer lightly for 5 to 10 minutes. Add a generous amount of salt to the water and mix well.
Add the shrimp to the liquid. The simmer should go away, so turn up the heat slightly, but do not allow the water to boil. Allow the shrimp to poach for 3 to 5 minutes, or until they are opaque. Peel one of the shrimp and cut in half to check for doneness. If the shrimp is cooked through, transfer all of them to a bowl of ice water and allow to fully cool, which should take about 2 minutes.
Remove the shrimp from the ice water and pat them dry using paper towels. Store them in an airtight container in the refrigerator.
You can make the dressing on the morning of Mother's Day. In a bowl, add the orange zest, orange juice, vinegar, mustard, honey and smoked paprika. Season liberally with salt and pepper and whisk well.
Slowly add the olive oil to the mixture, whisking continuously until it emulsifies. Set aside.
When mom arrives home and is ready to enjoy your lunch, it's time to put the finishing touches on the salad. Start by removing the shrimp from the fridge and, using your fingers, remove the shells. The tails can either be left on, or removed. Set aside.
Preheat either a grill pan, or an outdoor grill.
Brush the cut sides of the romaine hearts and avocado with olive oil, and season with salt and pepper. Place the avocado halves, cut side down, on the grill and cook for 1 to 1.5-minutes. Give them a quarter turn and cook for an additional minute, or until grill marks are achieved. Remove and set aside.
Place the romaine hearts on the grill and cook for 30 to 45 seconds. Rotate a quarter turn and cook for another 30 to 45 seconds, or until they are uniformly charred. Remove and set aside.
To plate your salads, place two halves of the grilled romaine onto two separate plates. Top each salad with equal amounts of shrimp. Toss the sliced tomatoes in a tablespoon or so of the dressing, and place on top of the shrimp. Using a spoon, scoop out bite-sized pieces of the grilled avocado and arrange equal portions onto each plate. Drizzle each salad with the desired amount of dressing and top with crumbled feta cheese. Serve with slices of warm baguette.
You can always serve a chilled white wine with this salad, but for a true spa experience, how about we make mom some spa water? It's some of the most refreshing and tasty water you'll ever drink.
Spa Water (makes 1 gallon)
- 1 lemon, sliced crosswise very thinly
- 1/2 English or hothouse cucumber, sliced crosswise thinly
- 1 gallon purified water
Place the lemon and cucumber slices in a gallon-sized pitcher and add water. Refrigerate for 2 hours before serving.
Lunch has been served, and eaten, so it's time to give mom a little dessert. Here's the thing, though. Mom's day of beauty can't end with some over-the-top, ostentatious dessert, as it would completely defeat the purpose of a spa day. Here's my recipe for balsamic berries over vanilla gelato. It's sweet, delicious, and unbelievably easy to prepare.
Balsamic Berries with Vanilla Gelato (serves two)
- 2 C fresh strawberries, green stems removed and sliced
- 1 C fresh blueberries
- 1.5 Tbsp balsamic vinegar (good quality)
- 2 Tsp sugar
- Vanilla gelato
- Freshly ground black pepper (optional)
In a bowl, combine strawberries, blueberries, vinegar, and sugar. Mix well and allow the berries to sit at room temperature for 15 minutes.
Spoon vanilla gelato into bowls and top it with the desired amount of berries and the accumulated sauce. For an interesting finish, top the berries with a little coarsely ground black pepper. I know it sounds weird but trust me it's delicious.
The roadmap has been written. All that's left is for you to follow it.
Happy Mother's Day
PS Don't forget to do the dishes!!
Mar 5, 2010
You are what you drive
Education level, tech smarts and wealth are just a few traits your ride can convey
Porsches smack of success. Hondas preach practicality. And, according to a recent report, Chevys proudly proclaim of their owners, "I don't use the Internet."
Your car implies more about your life than you might think. While 13% of Chevy owners don't use the Web, by contrast, less than 3% of Honda owners remain in the technological Stone Age. The antithesis of flashy, Honda owners are usually pragmatic and well educated; 70% boast a college degree or higher, compared with 35% of Chevy owners and 45% of Ford owners.
| More from robertjrussell.com: • International Real Estate • Apartment Locator |
The data was released in the spring as part of this year's New Vehicle Experience Study by San Diego-based market research outfit Strategic Vision.
"Honda buyers buy primarily for the trust and dependability they find in our vehicles," says Honda spokesman Chris Naughton. "Typically, highly functional vehicles deliver less image because customers didn't purchase for image."
Education level and computer savvy are just a couple of the things your car says about you. We collected demographic data on 10 prominent auto brands from the manufacturers themselves, as well as from neutral sources like Strategic Vision. It turns out, your wheels also give clues to your age, gender, income level and marital status--even your political leanings.
Mini Mindset
If you'd like to cultivate an image of sophistication, try buying a Mini Cooper. The line of Lilliputian hatchbacks appeals to urbane buyers with median incomes of around $125,000. But aside from wealth, Mini owners are a tough bunch to pin down, demographically speaking, since the car has broad appeal.
"It's a certain mindset," says Nathalie Bauers, spokeswoman for Mini USA. "People who relate to the brand, there's no age to that."
| More from the Robert J Russell Companies: • the Robert J Russell Show • E-Newsletter • Insurance Online |
Bauers says Mini owners fall into four categories: brand enthusiasts, who relish the car's British racing roots; design aficionados, who like the car's simple elegance; social butterflies, who want to be part of the Mini community; and gas misers, who crave the Mini's fuel efficiency.
Some of the latter group trade down from trucks and SUVs not because they feel financially crunched by high gas prices, but because they want to be conscientious and reduce their impact on the environment. These "right-sizers" like the Mini's eco-friendly image; all Mini models get at least 34 miles per gallon on the highway. Says Bauers: "Many of our customers are people who get a smaller car because it's the right thing to do."
Gray Area
While Minis appeal to several different types of people, owners of the classic English luxury vehicle Rolls-Royce can't be pigeonholed beyond the fact that they're rich.
"As you can imagine, our customers do not really take surveys," says Rolls-Royce spokeswoman Karen Vonder Meulen. "The one common thread that all our customers share is a passion for life and most truly love cars."
Indeed, well-known Rolls owners range from royal families to rappers. Recording artist T-Pain, who ranks No. 9 on Forbes' Hip-Hop Cash Kings list, owns North America's first Rolls-Royce Drophead. The fire-engine-red coupe boasts a 12-cylinder, 453-horsepower engine and a top speed of 150 miles per hour. Base price: $435,000.
Similarly, the Bentley trademark screams wealth--typically at least $5 million in investable assets, to be precise--but in a softer voice than some of its competitors.
"Our cars aren't as brash as some other performance-car manufacturers," says Stuart McCullough, a Bentley board member. "We tend to be understated, quintessentially English. That reflects the mood and style of our customers."
Such restraint can be considered especially important in the current climate. With unemployment rates skyrocketing around the world, many auto enthusiasts would rather drive an understated gray Bentley than a flashy red Ferrari.
"The most opulent part of a Bentley is on the inside," says McCullough. "Rich people are very aware of how others see them at the moment, the choices they make. Now is not the right time to be seen to be spending money when you're laying people off at your factory."
A note to those wealthy employers: Think twice about splurging on even an understated new car. If you see scads of Hondas in your company parking lot, their savvy owners may be wise to your ways. If you only see Chevys, you might be able to get away with it.
In Depth: What Your Car Says About You
 |
1. Bentley
The Bentley trademark screams wealth, but in a softer voice than some of its competitors. "Our cars aren't as brash as some other performance car manufacturers," says Stuart McCullough, a Bentley board member. "We tend to be understated, quintessentially English. That reflects the mood and style of our customers." A Bentley also reflects its owner's bank account: typically flush with at least $5 million in investable assets.
 |
2. Buick
Known as one of Detroit's geriatric brands, Buick is trying to shake its reputation with splashy vehicles like the LaCrosse. Owners of the 2010 Buick LaCrosse are 13% younger as a group than owners of the 2009 version, according to Buick reps. But on the whole, the sedan's owners remain a stodgy bunch: two-thirds are older than 55. They're also reasonably affluent, with a median household income of $75,000.
 |
3. Chevrolet
On top of all the challenges facing Detroit automakers, Chevy must find a way to deal with the fact that its owners have a reputation for being behind the times, to put it nicely. Strategic Vision's 2009 New Vehicle Experience Study found that 13% of Chevy owners have never used the Web. By contrast, only 3% of Honda owners remain in the technological Stone Age. While 70% of Honda owners boast a college degree or higher, only 35% of Chevy owners can say the same.
 |
4. Ford
Like Chevy, Ford faces a few unfavorable demographic trends. Only 45% of Ford owners have a college degree and 12% don't use the Internet. To combat this image and appeal to a younger, more tech-savvy group, Ford has introduced features in its cars such as Ford Sync, which allows drivers to play music from an iPod on the auto's sound system using Bluetooth technology. Drivers can request songs by voice command; Sync will even read text messages aloud.
 |
5. Honda
The antithesis of flashy, Honda owners are usually pragmatic and well educated; 70% boast a college degree or higher. "Honda buyers buy primarily for the trust and dependability they find in our vehicles," says Chris Naughton, a Honda spokesperson. "Typically, highly functional vehicles deliver less image because customers didn't purchase for image." Honda users also tend to be tech-savvy--only 3% of owners don't use the Internet, compared with 13% of Chevy owners.
Mar 2, 2010
How companies are using your Social Media Data....You Need to Know
Companies are mining the social web to build dossiers on you. Information posted publicly on blogs, Facebook, Twitter, forums and other sites is fair game. It is yet another reminder that people need to be aware of what they are posting on social networking sites and to whom they're connected.
Jules Polonetsky, director and co-chair of the Future of Privacy Forum, said online users have no clue that a comment they made on a blog is being added to a database for some unknown use.
"I don't think users expect that," he said, and if consumers think idle chatter and casual conversation can be used against them by institutions, it's almost certain to create a backlash, according to Polonetsky. He said the Federal Trade Commission is right now re-examining the current privacy structure in the U.S.
But at the same time, he said consumers are always very comfortable with Amazon using data to recommend books they might like. "When users are in control of it, it's a win-win - if they feel empowered."
How Data is Being Used
Polonetsky said aggregators like Rapleaf Inc. will collate information about individuals and sell it to companies that want to learn about those customers and what they do online.
Personal finance reporter Erica Sandberg, who covered the issue of social media datamining in a story for CreditCards.com, said that if a data mining company turns your chatter and network into a behavioral pattern, and if they can prove it has some worth, then it's valuable to companies. Sandberg said this is just more information anyone can use to help them make a decision.
"I don't think there's anything scary about it," she said. "Why wouldn't they look at it? It's public." She said she is not aware of any specific examples of those who have been negatively impacted because of it.
Entities such as airlines, politicians, and even non-profits can use this data for finding new customers or targeting products to existing ones. Financial services companies such as banks and lenders are also using the same datamining services for marketing purposes and to make lending decisions. For instance, certain types of credit products, which fit your personality, could be marketed specifically to you.
"It's a helpful tool to identify the right customers, the best customers," Sandberg said.
She said the immediate fear is the misconception that it affects your credit report. She stressed that companies that do social media datamining do not have access to your credit report, and the act of collecting the publicly available data has no effect on your credit score.
However, she said, "it can affect the credit you're offered, and the credit you receive."
Social media contacts play a role in behavioral profiles as well. "I think what's most interesting is how those in your network have an impact," she said.
Do you know if your Facebook
friends have good credit histories? Likely not, but if you associate with people who are a good credit risk, than you'll probably be a good credit risk, according to Sandberg. "The whole idea [is] like follows like," she said.
Learning About Customers to Tailor Experience
According to a counter on their website, Rapleaf Inc. has mined social data about more than 389 million customers. They do that by crawling the Internet just like Google
or Bing
does, said CEO Auren Hoffman, but that they only crawl sites such as forums, social networks, review sites, newsgroups, and blogs - where information is publicly available.
He said clients they work with include car companies, airlines, hotels, banks, retailers, non-profits and politicians. If they can learn more about their customer, then they can personalize an experience for that customer, according to Hoffman. He said consumers are already expecting this high level of service, and that it's all about the product, service, and experience that you would prefer.
"The power to personalize things is much greater," he said.
Rapleaf's blog links to a SmartMoney story about how banks and financial services firms limit their use of social media data to marketing departments, and not those "charged with making credit and lending decisions," according to the post.
Sandberg said it's up to businesses to use the information from datamining companies as they please. "This is public information. They can use it any way they want."
Social Data Helps to Prevent Fraud
Lending Club, a peer-to-peer lending service that matches borrowers with investors, has been using a variety of tools and software to help them gather social media information for six months, according to Rob Garcia, the company's senior director.
He said Lending Club uses social media data for marketing and operational purposes and stressed that Lending Club does not use any social media data for credit decisions and that it does not affect whether an applicant can get a loan. "We use this information to benefit our customers - to prevent fraud," he said.
For operational purposes, Lending Club makes sure the user's information checks out to try to protect his or her identity, according to Garcia. So they will compare application information from a credit file against information that's publicly available. He said that if there's a mismatch, it gives them more reason to go to more strict identification procedures.
"We have found a way to use this information in a positive way," he said.
Credit Card Companies Turn to Social Media
Consumers might soon be seeing more credit card offers in their mailboxes. In the last quarter of 2009, the number of credit card offers mailed were up 46% from the third quarter of 2009, according to a news release on the direct mail tracking service Synovate Mail Monitor.
Anuj Shahani, director of competitive tracking services for Synovate's Financial Services Group, told me that the number of credit card mailings is still down 40% from the fourth quarter of 2008. He said the CARD Act, which is a new federal law aimed at better disclosure and banning unfair rate hikes, and the economy were reasons for the decrease in mailings of credit card offers.
He said that because of the CARD Act, there are restrictions on spending for credit card companies. Credit card companies will have to come up with targeting models, and data companies can help them figure out those models, according to Shahani.
"Issuers will have to come up with smarter ways to target the right audience because it is so much more expensive to extend credit," he said. "I think one of them will be social media."
Credit card companies are already using social media to launch new products. Shahani pointed out that theCitiForward credit card launched in March 2009 on MySpace. He said that in December 2009, American Express launched its new Zync card on social media sites.
Shahani said the credit card issuer's goal is to find the right audience and go to the right people and that's where he expects social media would come in.
Social Media Usage Tips
Here are some tips from Erica Sandberg on the types of content to avoid posting on the social web and handling network connections.
1. Determine whether you want to go public or private with your social media profiles. If the profiles are set to be public, then be consistent with information you are posting. "The caution lies in what you say. Be truthful," she said. For example, don't post a status update joking that you're filing for bankruptcy when you're not. "It's the off-the-cuff remarks you're going to want to be aware of," she warned.
2. Eliminate people and sites from your social networks that you don't need. "Make sure people who are around you are reflective of you as a wonderful person," Sandberg said.
3. Pay attention to your friend, invite, and connection requests. "You don't want random associations," she said. Sandberg recommends first checking out that person's profile before accepting it. "I get flooded with friend requests of people I don't know," she said. "You have no idea who these people are. It's a risky thing to do."
What if opting out of being on social media is not an option? Sandberg said she's on there for business purposes and can't really go private. In that case, be careful what you write. "It underscores the importance of being honest and projecting yourself in a positive way," she said.
Subscribe to:
Posts (Atom)