No Bubble?

AP survey: Economists see no stock market bubble apne.ws/10SVxkj — Personal Finance (@AP_PersonalFin) June 6, 2013

Seriously, no (serious) bubble? More on the methodology could be useful. E.g. sample of the economists, how many, etc.

Living in Bubble?

Oh! Ok, at least one economist defines what bubble he had in mind, which seems the be the “bubble” definition taken in the

article.

“A bubble is an extreme thing”

Just comparing their views and mine:

— Housing will deliver the biggest boost to the U.S. economy this year: There are evidence that most of the sales were fueled by bank and investor purchases.

— U.S. consumers will step up spending once the job market returns to full health: Unemployment and underemployment numbers are still big in the U.S., especially for the young adults. The unemployment rate for 20-24 year old age group is around 17%. The Millennial generation is showing signs of conservative spending. Oh! And this generation’s and others’ student loans – let’s not go there for this blog post but we’ll see where Sen. Elizabeth Warren’s student loan fix proposal will lead to. Hey! Didn’t they bails the big banks out? …. with the people’s money?

The author also mentioned about E.U. and the retiring population in the U.S. E.U. has not shown much economic progress. What happened in Greece and Cyprus were very scary [not big enough to let be failed?]. The trends in the U.S. point to increasing retiring segment of of the population (SS issues, healthcare expenses) with strong AARP lobbying – though, these are avenues for job opportunities and increased consumer spending.

The Affordable Care Act is another huge factor. Theoretically, we expect some smaller companies to not expand hiring beyond 50 employees. In addition, future insurance plans indicate most people face higher premiums and/or other out-of-pocket expenses. In other words, there are increasing uncertainties involved. These all will affect unemployment, underemployment, disposable income, and consumer spending.

Notary Public = Notario Publico?

Some translations, albeit correctly done word for word, may be disastrous. Some marketing to-Spanish translation blunders include American Airlines’ “Fly in Leather”, “Got Milk?”, Parker Pen’s “won’t leak in your pocket and embarrass you” logo phrase, “I saw the Pope” t-shirt, and Coors’ “Turn it Loose” slogan.

Vuela en cuero Image 1[1]. Literally translated to “Fly In Leather”, “Vuela Encuero” carries the meaning of “Fly Naked”

I saw the Potato Image 2[2]. A businessman in Miami FL promoted Pope John Paul II’s visit to Miami in 1987 with “Vi la papa!” (I saw the potato) t-shirt[3] when it should have been “Vi el Papa!”

Mistranslation comes in other forms too. The actual concept of Cinco de Mayo got lost in its celebration in the U.S.  through misinformed marketers trying to promote goods associated with the celebration and knowledgeable people narrating the facts in an un”sober” state. Myths related to Cinco de Mayo[4] include the  day when Mexicans defeated the Spanish, Mexican Independence Day, and the day when the Mexicans gained the ultimate victory over the Europeans – don’t even ask which one!

In personal finance, the most problematic translated English-Spanish term is Notary Public, which when translated word-for-word translates to Notario Publico. This is especially problematic because in Mexico, there are individuals who carry the Notario Publico title. I have a friend who was once a Notary Public in Las Cruces and when she mentioned that to her Mexican relatives, there were flabbergasted, expressing

“W’aah, Notario Publico!”

This was possibly due to the direct word-for-word translation and the high status of a Notario Publico in Mexico. A very respected legal figure, a Notario Publico is trained like a lawyer where one has to pass a grueling law exam and then, obtain residency training under a real Notary. In Mexico City, where the population is of 9 million in 2005, there are only 243 Notario Publicos.

In short, compared to a Notary Public in the US, a Notario Publico in Mexico is like a magistrate. This is not unique to Mexico. Scotland’s Public Notary is more similar to Mexico’s than U.S.’s. In fact, the U.S.-Mexico difference in Notary Public is quite parallel to that of England-Scotland, where notaries in Mexico and Scotland would get involved in more serious legal matter.

The main differences between a Public Notary in the U.S. and Notario Publico in Mexico[5] are as follows:

1. Responsibilities: Whereas Public Notaries in the U.S. mainly serve to notify signatures and documents, Notario Publicos may be highly involved in real estate transactions, preside over certain legal proceedings for a formation of corporations, provide judicial opinions, check for inconsistencies in legal documents[6], calculate taxes, and collect tax payments.
2. Qualifications: A candidate for a NM Notary Public must be a resident of NM, at least 18 years old, able to read and write in English, have clean criminal background, and not have a Notary Public status revoked in the last five years[7]. As previously mentioned, Notario Publicos in Mexico are like government-appointed Magistrates with rigorous law training.
3. Fees:  Most NM Notary Public will notarize signature and document verification for free although some maintain that they have fees. Mexican Notario Publicos usually charge from 0.015% to 1.12% of transactions involved, which amount to thousands of dollars for a real estate transaction.

Despite the title similarities, a Public Notary in the U.S. and Notario Publicos in Mexico are very different where the one in Mexico serves like a Magistrate in the U.S. Americans buying a house in Mexico may be surprised to learn that a house purchasing contract may be completed with a Notario Publico’s service but charged thousands of dollars for his or her service.

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[1] Flores, H. F. (2010). Traducciones de Slogans que no Sabes si Reír o Llorar. Retrieved May 22, 2013 from http://de10.com.mx/7186.html

[2] Rupp, C. (2010). Perdido en la Traducción. Retrieved May 22, 2013 from  http://goeastdesign.com/perdido-en-la-traduccion/

[3] Pearson, W. & Hattikudur, M. (2011). mental_floss: The Book: The Greatest Lists in the History of Listory. Ney York, NY: Harper Collins.

[4] Tures, J. A. (2012, May 5). Common Myths About Cinco de Mayo. Retrieved May 22, 2013 http://news.yahoo.com/common-myths-cinco-mayo-184100388.html

[5] Pikoff, J. A. & Crimmins, C. J. (2007). Lost in Translation: Texas Notary Public v. Mexico Notario Publico. Retrieved May 22, 2013 from  http://www.pikofflaw.com/news.php?id=1

[6] E.g. wills, trusts, and company bylaws.

[7] New Mexico Secretary of State (2012). Information for Notary Public. Retrieved May 22, 2013 from  http://www.sos.state.nm.us/Business_Services/Information_for_Notary_Public.aspx

America Saves 2013

February is Financial Aid Awareness Month, but in February, we are also having the America Saves Week. This means that we are promoting savings and debt reducing measures in this month. Usually held in the last week of February, this year’s America Saves week is from February 25th to March 2nd. This wonderful event is headed by Consumer Federation of America and participated by a long list of organizations – public, private, universities, companies, federal, state, military, etc. Various states organize event to promote these healthy financial habits.

My efforts this focuses on the Social Media project which includes Facebook postings, Twitter messages, and video sharing. Actually, a novel aspect of this year’s Social Media America Saves Week is the Xtranormal videos – e.g.

I am supposed to share 100 Twitter and 100 Facebook messages but I won’t do that (sorry Barb), but to my Twitter followers, please don’t get annoyed – those messages are good and it’s for a month. If you have to unfreind me, let’s be friends again after March 2, 2013. In case you don’t notice, you get bombarded with bad commercials on TV while surfin’ the net.

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My note on Feb 1 scores:::

• Klout: 27.10
• PeerIndex.net: 48

 

 

NM HS Econ vs. Personal Fin Requirement?

In 2011, what is the status for economics and personal finance subjects for high school graduation requirement?

So, two polls:

Answer: Click the two maps or look below for the answers. The maps have a comparison with other states.

More Information:

Download the full report from Council for Economics Education Survey of the States publication.

Online Business and Social Media Program in NM

For our Western Evaluation Capacity Training course, I have come out initially with this idea for a program to teach NM residents to utilize internet resources to come out and/or promote their business. NM is rich with traditions, demanded items, crafts of different ethnic groups, and historical items. Due to time limitations and other opportunities, I never had a chance to fully develop this program beyond this Logic Model:

FahzyLogicSpec20120316.PDF

If you have ideas and would like to collaborate, let me know.

Tax Credits

Two of the largest anti-poverty programs, Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) were designed to encourage people to work and provide tax relief to lower income families.

As their names may suggest, Earned Income Tax Credit (EITC) focuses on aiding the working poor, while Child Tax Credit (CTC) provides some financial support to offset the cost of raising children. Studies have found that these tax credits promote work, reduce poverty, help families meet basic needs, improve children’s academic performance, and boost future earnings later in life for EITC child recipients. Tax credit money from federal sources not only improves a household’s economic condition directly, but also boosts local economy. A study done for San Antonio TX in 2003 showed that each EITC dollar received generated a further $1.58 to local economy and each additional $37,000 results in one additional permanent job (Texas Perspectives, Inc., 2003).

Over 26.8 million EITC recipients took in almost $59.5 billion for 2010 tax year return (IRS, 2012b). Unfortunately, many eligible households are not claiming these credits. Center on Budget and Policy Priorities (CBPP) estimated that 20 to 25% of EIC eligible workers are not claiming EITC, which amounts to $10 billion of unclaimed EITC. Among the benefits of EITC are that it translates to as much as 45% pay increase, and both EITC and CTC lift more than 9 million above poverty in 2010, including 4.9 million children (CBPP, 2012).

For New Mexico, about 30,000 eligible families failed to claim EITC, which amount to between $74 and $136 in lost payment (Bowman, 2007). IRS (2012c) estimated 8,000 who had not filed 2008 tax return are eligible for EITC worth $7.4 million.

How much are these tax credit worth?

An overview of EITC and CTC is laid out in Table 1.

EITC

CTC

If you lived with a qualifying child for more than half the year, and you earned less than $36,920 ($42,130 if married), you can claim up to $3,169 in CTC benefits. If you lived with two children and earned less than $41,952 ($47,162 if married), you can claim up to $5,236. If you lived with three or more children and earned less than $45,060 ($50,270 if married), you can claim EITC up to $5,891. Workers not raising a family may be eligible for up to $475 if they earned less than $13,980 ($19,190 if married) and are between the ages of 25 and 64.

If you lived with a qualifying child for more than half the year, you can claim up to $3,169 in CTC benefits. A family that earns less than $3,000 is ineligible for the credit, and a family with two children that earns between $3,000 and $16,333 receives only a partial credit. The value of the CTC increases with a household’s earnings before reaching the $1,000-per-child limit.

Based on information in Table 1, it is evident that the amount of tax credits differs by income level, tax filing marital status, and number of qualifying children – which are the main tax credit determinant with few other affecting factors not shown here. The EITC amount is shown in Figure 1.

Figure 1. EITC Amount by Marital Status and Income Level. Source: CBPP (2012)

New Mexico is one of the 24 states (D.C. included) that also provide state EITC. Known as New Mexico Working Families Tax Credit, NM EITC amounts to a maximum of 10% of federal EITC. Its amounts, by number of qualifying children, are shown in Table 1.

Number of qualifying children Maximum federal EIC Maximum NM Working Families Tax Credit none $ 475 $47.50 one $3,169 $316.90 two $5,236 $523.60 three or more $5,891 $589.10

Table 1. New Mexico Working Families Tax Credit (Community Resources Information, Inc., 2012)

Outreach Message

Outreach message on EITC and CTC are three-fold:

1. 1.       Outreach: The largest financial returns likely come from promoting tax credits, with EITC average of 2,240 (2012 tax year).
2. Free tax preparation: Next, we need to encourage people to minimize tax filing costs. Paid tax filing averages about $100 per filing, which include per form fees and direct deposit filing. There are many free tax filing services across the national and state to low- and middle-income families. In New Mexico, TAX HELP New Mexico (1-888-212-4TAX, 505-244-4TAX) and IRS-organized VITA Program (1-800-829-1040) provide tax filing assistance filing. Their services may include services in Spanish and Navajo and advice to better manage the expected tax returns. If possible, encourage people to file their tax themselves so that they have a better idea about their income flow and its related tax issues (e.g. tax brackets, deductions).
3. How to better manage your tax returns money: Having high income does not guarantee financial security. We have been hearing stories about athletes and celebrities who make millions of dollars annually ending up in bankruptcy. Better ways to manage tax returns include paying debt, saving in a matching program (e.g. Individual Development Account), and settling bills.

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Oh! A program that have just conducted in January 2013. Thank you to the funder, Center on Budget and Policy Priorities.

Tax Credits:

Earned Income Tax Credit (EITC) and

Child Tax Credit (CTC)

FREE Train-the-Trainer Workshop

WHO SHOULD ATTEND?

Company/ organization managers, supervisors, employers, HR personnel, tax preparers, community and/or religious leaders, etc.

Topics covered:

ü Who is eligible to claim the EITC and CTC

ü Where to find FREE tax filing assistance

ü The impact and importance of a community Tax Credit Outreach Campaign

ü How to incorporate credit outreach into your daily work and more!

January 9, 2013

8:00 am to 12:00 noon

New Mexico State University – Gerald Thomas Hall – Room 303

940 College Drive, Las Cruces, NM

Speaker:

Dr. Fahzy Abdul-Rahman, NMSU

Join us for a FREE Continental Breakfast in the

Social Living Center, Room – 330, Gerald Thomas Hall at 8:00 am

RSVP to attend is required by January 4^th, 2013

Please call 575 646-2198 or send an email to: glorhern@nmsu.edu

Visit web site: http://mymoney.nmsu.edu/

It’s Been a While …

…. since I have had a post here. The second half of 2012 was interesting with presentations and project. The main ones were:

• Personal Finance Hot Topics survey – results presented in eXtension National conference
• Google Analytics study on Financial Security for All sites: Ask and Expert, curriculum,
• 4-H Build a Million curriculum presentation at NM 4-H Conference
• Western Evaluation Capacity Training for 15 months. My final project, which is also my current project to conduct personal finance programs to university employees – which we’ve just completed and presented at The Westin La Paloma in Tucson. 

…. I suppose my 2013 resolution is not to abandon my WordPress.

Home Energy Tax Credit in NM

I’ve just attended an energy efficientcy and alternative program training in the new NMSU facility in Corona, NM. The program, E3A: Exploring Energy Efficiency and Alternatives, aggregates relevant resources on green energy and package them into a wonderful program. The E3A program teaching materials can be divided into online resources and the teaching kit. The teaching kit (in picture) comprised of the instructor’s guide, teaching suppliemnt, and handout. The online resources include handout PDFs and PPT slides for presentation.

An important part of the program is to explain the energy pyramid that stresses on complexity and cost. First thing’s first: the easiest and cheapest ways to save on energy cost are to conserve energy use and to use cheaper energy-savings materials.

The Energy Management for Home is the most elaborate section. The crux of the information is very similar to Department of Energy’s Energy Savers program. Overall, this is a great program. Obviously, I need to find information that is more pertinent to New Mexico, including tax credit information.

Food Complaints

Where consumers can report their concerns on food, especially the raw, grocery-type ones?

• For food products: Report to FDA
• For general goods: FTC Bureau of Consumer Protection – Consumer Information which will lead you the Complaint Assistant site.
• NM Attorney General site, http://www.nmag.gov/consumer/file-a-complaint

This “Food Labeling Chaos” report by the Center for Science in the Public Interest has more in-depth information.

…. for other consumer complaint issues and avenues, you may want to be more creative. Examples:

• Call the company: They may provide a replacement for you, give you a refund, and mail you coupons.
• Talk about it: Never underestimate the impact of Word of Mouth. Besides alleviating the stress caused by the problem, talking about it to others may lead you to a fruitful solution.
• Share it via Social Media outlets: Via blog, tweet, forums, FB posting, Pinterests … . Many have use online videos to vent their frustrations and they seem to work – an example of confronting a dissatisfaction with a credit card:

… or they can be entertaining. Others suggestions?

Home Energy Savers

I have just conducted a survey [I know, pink] to our Home Economics County agents about altering my Plan of Work.

 

When asked about the programs agents “would like to see “, the most response with 6 out of 10 answered Home Energy Savers Program. When talking about budgeting, rents or house payments tend to be fixed payment but one housing expense category which you may be able to save on is the home energy usage. Some tips are just reminders on how to immediate cut on unnecessary energy use while others may require an upfront investment (e.g. CFL light bulb)

For the home energy information, you may order the free Energy Savers booklets from this site: http://www1.eere.energy.gov/library/order_form.aspx?FormID=2. Highly beneficial for summer and winter seasons – although I have to spend some time to tailor the publication for NM conditions. The program may be used with the Home Energy Smarts Standard slide calculator card – showing how much a household can save by adopting these energy saver practices.