Jennifer's Compass

Perspective on the financial crisis

Ok, so the bail out package from yesterday won't be the one we finally end up with. I'm good with that...and I'm sure all you are too. Right?

The trick now will be to hold your cool until this bump in the road gets straightened out. Click below for our segment from this morning as we try to put this all in perspective.

What does the bailout mean for you?

A compromise deal is on the table on the great bailout plan. House lawmakers are expected to vote today and President Bush is trying to rally support. But, will the financial bailout work? And, what does it mean for you?

Click below to see this mornings NECN segment. (remember the station will run an ad first)

Viewer questions: FDIC, bank safety and investing for college

On Friday, viewers emailed questions about WaMu, FDIC and bank safety, and college savings.  

Tracking your spending

One of the major results of the credit crunch is that a lot of people are wondering how to get their budgets under control. In this segment of In Focus, we talked about easy ways to track spending and how to get a handle on cash flow. 

The trick is to minimize the amount you have to make spending decisions on each month.

Tips to track spending and get budget under control
1. Find out what your expenses really are -- try www.Mint.com or www.Yodlee.com
2. Total your fixed and your variable expenses separately
3. Open a separate checking account for fixed expenses and one for variable
4. Allocate your pay with direct deposit into each account
5. Pay entertainment and extras with weekly cash allowance
6. Review after each paycheck

Tips on investing and saving with the year end in mind

It's always easier when you plan ahead. Fall is the perfect time to review your financial goals with the end of tax year in mind. There's just over 3 months until the end of the tax year and 7 months until the deadline to deposit money into your IRA.

If you have cash to invest:
* New investment can help you re-balance
* Check mutual fund web site for year-end distributions
* Capital gains and interest
* Remember: invest for the long term

Fall is a good time to review your retirement plan
* Calculate how much you should be saving
* Year-end and April '09 tax deadline
* Target nest egg 25 times your first year withdrawal
* Want $10,000 per year; need $250,000 in investments
* Resource: CalcXML.com click "Products" then "Consumer calculators"

Nervous? Keys to staying on track
* Keep saving from each paycheck
* At work: Invest enough to get employer match
* Don't reallocate out of stocks because of the market
* Talk to your advisor
* www.NAPFA.org

Click here to watch the segment

Viewer questions: AIG, home buying and political tax email

Questions from viewers this month included concern about AIG, buying a house with cash and tax email spam.

From Jim in Cambridge:
I'm retired and I have a 403(b) account with AIG VALIC. Now that I'm retired I understand I don't have to keep my account at AIG. Should I move it considering the problems AIG is having?

From David in Natick:
I'm thinking about buying a house, I have $300,000 and the house I want is $280,000. Should I pay for it all at once and take out a credit line for $100,000 or should I put $200,000 down and get a mortgage for the remaining $80,000?

From Susan in Braintree:
I've recently received the same forwarded email from several friends which starts out "INTERESTING DATA JUST RECEIVED ON TAXES" and continues to describe the tax policies of each presidential nominee. Is this for real?

CLick below for the video

In Focus: How safe are your accounts?

The banking meltdown has a lot of people wondering if their accounts are secure.

On this segment of In Focus, we discussed what you need to do to make sure your accounts are safe. Different types of accounts have different types of coverage, and you'll be less stressed if you understand the differences between each.

What will the mortgage giant bailout mean for consumers?

The government takeover of mortgage giants Fannie Mae and Freddie Mac is supposed to help stabilize the housing market, and help reduce mortgage rates. Taxpayers, homeowners, home buyers and sellers, and investors all have a stake in the change

We discussed a few preliminary ideas on Business Day tonight, but remember the jury is still out on whether this "fix" will help the housing market or the economy.

Click below for the video.

Lower mortgage rates should bring buyers into market

Our News Day Live segment tonight focused on the government take-over of Fannie Mae and Freddie Mac. Mortgage rates have come down a little; if you're trying to sell your house this could be your chance.

Re-check you listing price
** Review comparables
** www.zillow.com
** Change broker
** Update marketing/pictures
** Restage in and out

Auction
** Marketing costs 2%
** Same re commissions
** Cash deal
** Close in 30 days
** Absolute vs. Reserve price

If you decide to rent it out
** Cover mortgage
** Plan for maintenance
** Update home insurance
** New rules in 2009
** Check with tax advisor

Stay put for now
** Get a roommate to help with costs
** Catch-up on maintenance
** Carefully consider upgrades

Click here to go to the video.

Do you have the proper insurance in case of a disaster?

We're still waiting to hear how Hurricane Gustav affected the Gulf's oil industry – as well as the official reports on just how much damage the storm did to coastal homes and neighborhoods.

About two million people were evacuated ahead of the storm.

The evacuations, and the third anniversary of Hurricane Katrina are bleak reminders that everyone should have the right insurance in place.

Tips when buying: Homeowners or Renters
** 2 parts: Property protection and Liability coverage
** Flood, windstorm and earthquake are separate policies
** Buy enough to replace entire home
** Limit your claims

Tips for Auto Insurance
** Consider insurance when choosing new car type
** Drop collision on older car
** Ask for low mileage and group discounts
** Check your credit history

Premium saving tips
** Don't insure the irreplaceable
** Increase deductibles
** Buy policies through one agent
** Renters - schedule valuables
** Review annually; ask about credits
** Separate car and policy for teens