Friday, April 29, 2011

Should you use extra cash to pay down your mortgage?

Description: http://www.mint.com/blog/wp-content/uploads/2010/06/little-house.jpg

Should you pay off your mortgage as quickly as possible? Or are you better off paying it over 30 years and investing any extra cash? A lot of misinformation can be found among the financial “experts,” and one of the favorite is this argument:

Keep your mortgage in place to maximize your tax deduction.

Why is this bad advice? The math simply does not add up. For example, a family paying a federal rate of 28% plus a state rate of 5% is liable for 33% of taxable income. So if your total mortgage interest is $12,000 this year, it comes out like this:

$12,000 interest – 33% tax liability of $3,960 = $8,040 net after-tax interest

In other words, even after tax benefits, you are still paying 67% of the gross interest cost after allowing for the tax deduction. If you could eliminate the entire mortgage debt, you would save the after-tax interest of $8,040 per year.

A second myth is that you are better off investing your cash elsewhere. The argument is:

Invest any extra cash to increase your investment income.

There is also a problem with this argument. That extra investment income will be taxable, so even if you could match your 5% mortgage with 5% interest income, is the risk comparable? Your home is insured, you maintain it, and it provides many benefits beyond just being an investment. If you make 5% by investing elsewhere, what level of risk exposure do you accept? Chances are that the risk you take to earn 5% is not as valuable as the investment risk of paying 5% on your home mortgage.

Is that 5% cost really such a big deal? Yes. If you are paying 5% on a 30-year fixed rate mortgage starting at $100,000, your total interest cost is $93,259, so that your $100,000 mortgage costs nearly double to get paid off.

Some additional startling facts about your mortgage (all based on a $100,000, 30-year fixed-rate mortgage):

- At the end of five years, you have only paid off about 8% of your mortgage. Considering that most people move to a new home after five years, that means your 60 months of payments were almost entirely interest.

- At the end of 20 years, your mortgage is only one-half paid off. The other half is repaid over the last 10 years.

- Adding $50 extra to your payment each month takes five years off the repayment term, reducing it to 25 years and saving about $18,000 in interest.

Mortgage interest is calculated based on the remaining balance each month, so the higher your balance, the more of your payment goes to interest. This is why paying off as much as you can early on — a process called mortgage acceleration — is a valuable investment. If your mortgage is fixed at 5%, every dollar you prepay today yields you a reduced interest of 5% at a compounded rate. That is going to be a much smarter and safer investment than you can make anywhere else.

Michael C. Thomsett is author of over 60 books, including Annual Reports 101 (Amacom Books Press), Trading with Candlesticks (FT Press) and the just released new book, Getting Started in Stock Investing and Trading (John Wiley and Sons). He lives in Nashville, Tennessee and writes full time.

This post was provided by Minyanville.com.

Friday, April 15, 2011

America Cares About Buying Guns, Not Educating Kids

APRIL 15, 2011
BY LIZ DWYER : GOOD

In this year's State of the Union speech, President Obama called for a "Sputnik" movement in education, and asked our nation to do what's necessary "to give every child a chance to succeed" and compete with their international peers. Sadly, the latest federal spending bill includes more than $38 billion in cuts to K-12 and higher education programs. When you look at how much we're spending on defense, it's pretty clear: Our national priority isn't really education, it's buying guns and missiles.

Indeed, on Tuesday, our culture editor Cord wrote aboutSwedish-based think tank SIPRI's latest report, which details that since 2001, the United States' defense spending has increased 81 percent. And, we spend almost 43 percent of the money the entire world allocates to defense.

military.spending

Critics of our nation's public schools point to China's stellarinternational test results as a sign that we're falling behind our Asian counterparts when it comes to academic achievement. Notice that we spend six times more money on defense than China and we only have roughly one-fourth the number of people.

According to 2010 figures from the Office of Management and Budget, we're set to spend 20 percent of our federal budget on defense and a mere 3 percent on education. As the chart below from nonpartisan think tank Project America shows, Federal spending on education has never topped 4 percent of the budget—and is on its way down again.

federal spending

Literacy, technology, and scholarships are all being slashed this year. The number of Pell grants low income students can receive has been reduced from two to one, and essential AmeriCorps programs like Teach For America, the National Writing Project, and City Year have been defunded. Federal stimulus money to help cash-strapped state governments funnel money to schools has dried up. As a result, states hit by the economic downturn continue to cut billions from education.

But, as the SIPRI report points out, "even in the face of efforts to bring down the soaring US budget deficit, military spending continues to receive privileged treatment." And, despite putting education on the chopping block, House Speaker John Boehner (R-OH) is passing legislation increasing defense spending.

So much for the argument that we're just throwing money at America's education challenges. We've never come close to trying that.

Best regards

Ray1man

Sunday, April 10, 2011

Bullet trains good for jobs

Since the elections in November, newly elected Republican governors have been falling over themselves to return federal funding earmarked for high-speed rail. Their rationale is that once the rail project is built, the state will be the one bearing the operating cost while the trains lose money because no one is riding them. A new report says that this strategy is going to backfire: High-speed rail can be a huge driver of jobs and economic growth, and the government has already committed to at least $10 billion worth of spending, with plans for tens of billions more in the coming years.

The report, "The Case for Business Investment in High-Speed and Intercity Passenger Rail" (PDF) by the American Public Transportation Association finds that in addition to the obvious, but temporary, construction jobs, the benefits ripple out throughout an economy. Most importantly, for each $1 billion spent on train construction, 24,000 permanent jobs are created. That's a mere $41,667 per job, which looks downright cheap when you're staring down 9% unemployment.

The California High-Speed Rail Authority estimates that building a high-speed rail link between L.A. and San Francisco would result in 600,000 construction jobs and 450,000 permanent new jobs. There are currently 2.2 million unemployed people in the state; high-speed rail would halve its unemployment rate. Here is how high-speed rail would affect some major American cities, to the tune of billions of dollars in economic growth and new wages:

The concern with high-speed rail, as explained by the governors in states like Wisconsinand Florida is that no one will ride it. And while rail ridership is at an all-time high, it's a fair worry. Amtrak has trouble making ends meet. But what they're forgetting is that people don't want to ride trains not because they hate trains, but because trains aren't that fast. If you make the trains faster, people will ride them. Here is what happened in Europe when they added high-speed rail:

Shocking, yes, but if you spend the money to make the train more convenient, more people will pay to ride on it! And its not as if we really need to push that hard. In the crowded Northeast Corridor (the perfect place for high-speed rail), 62% of the people choosing between taking a train or a plane from Washington, D.C. to New York pick the train, as do 47% of Boston to New York travelers. And the people who choose the train instead of driving would decrease wear on the roads, resulting in $270 billion in road repair savings by 2050. That pays for the trains right there. And lest we forget the environmental benefits, remember, trains are the most efficient mode of passenger movement, especially high-speed ones:

Better for the bottom line, better for the environment. Plus, you're not stuck in traffic and your friendly TSA agent doesn't have to touch you in your special place before you get on.

Follow Fast Company on Twitter. Morgan Clendaniel can be reached by email or onTwitter.

[Photo by Flickr user danielfoster437]

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Ray1man

Sunday, April 03, 2011

ABCNews.com: 5 Ways iPad Is Changing the World

On anniversary of iPad's release, a look at top uses of the past year. http://abcnews.go.com/Technology/apples-ipad-year-ways-changed-world/story?id=13281459

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Ray1man

Friday, March 25, 2011

Bits: Competitors Take on iPad 2 Smart Covers

March 25, 2011, 5:35 PM

Third-Party iPad 2 Cases Take on Smart Covers

By NICK BILTON

MiniotThe Miniot wood cover for the iPad 2.

Although most hardware technology companies offer protective gear and cases for their gadgets, they also rely on third-party companies to create and design a variety of products. Over the past few years, partly fueled by the creation of delicate mobile devices with large flat screens, these companies have become an integral part of a product's success — and a multi-million dollar business.

When Apple announced its latest iPad 2 this month, one of the featured updates it showcased was its own Smart Cover, a sleek protective overlay for the iPad 2 that also turns the device on or off when opened or closed.

As my colleague Miguel Helft noted recently, although companies that sell cases for the iPad are impressed with Apple's new Smart Cover design, competitors said they were confident they would be able to offer a better and more innovative solution.

screenshot via Etsy.comAn iPad 2 sleeve made by Case Closed fits both the the iPad 2 and a Smart Case.

Judging from the few iPad 2 covers that have been announced so far, it looks competitors might be have a few tricks up their sleeves.

One product that is gaining a lot of attention is called the Miniot Cover, which is made of wood and can bend in a number of directions to allow the iPad to stand upright or lay at an angle for typing. The Miniot is expected to be introduced in late March and cost around $70.

Incase, which makes protective sleeves for a number of devices, is offering a case called the Origami Workstation. This case folds into different angles which allows the iPad 2 to prop up like a computer screen and also offers a resting spot for an external Bluetooth keyboard.

Belkin, another case manufacturer, is taking a different approach from Apple by offering a case that protects both the front and rear of the iPad 2. These covers also look more professional and business-like and the company said a range of options were expected to introduced in coming weeks.

Finally, a number of unique cases are beginning to appear on Etsy.com, the handmade craft Web site. One in particular that seems promising is a felt sleeve that fits over an iPad 2 and its Smart Cover. This is a solution for those who want to keep the Apple Smart Cover, but need a little extra protection during a commute.

Bits: Competitors Take on iPad 2 Smart Covers - The New York Times

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Ray1man

Sunday, March 20, 2011

Article: Mobile Stand for Tablet PC Review

Mobile Stand for Tablet PC Review
http://the-gadgeteer.com/2011/03/20/mobile-stand-for-tablet-pc-review/

THE GADGETEER
via RSS

March 20, 2011

Mobile Stand for Tablet PC Review

Jackie Cheng

Got a tablet PC, Xoom or an iPad? Then this stand is right for you! I got this stand from Deal Extreme which has since been sold out. But this stand is an exact clone of TwelveSouth's Com pass Stand for the iPad. I will be writ ing this review as an item pur chased from Deal Extreme. But if you want to buy it then please visit TwelveSouth. I'm sure that the qual i ty of TwelveSouth's Com pass Stand will be as good if not bet ter than the Mobile Stand from Deal Extreme.

Inside the Deal Extreme's Mobile Stand for Tablet PC box is just the alu minum stand and a sleeve. No instruc tions were pro vid ed but it's pret ty self explana to ry on how it should work.

The stand is made total ly from aluminum with lit tle bit of plas tic grips on the places where it con tacts the table and iPad/tablet.

There's 2 posi tions that can be set with this stand. Either lift ing out the longer leg to give the iPad a good angle in watch ing movies. Or pushing out the short er leg to have the iPad on a com fort able typ ing angle.

This shows the stand being used at the typ ing angle.

This shows the stand being used at the movie watch ing angle.

The stand is built solidly. And it's heavy being that it's made up of most ly aluminum. I got it on Deal Extreme for $17. There is no way to get it from Deal Extreme since they don't carry it anymore. TwelveSouth's Com pass Stand is sold for $39.99 direct from its website. It's a great stand and is total ly worth it even at the $39.99 price.

Filed in cat e gories: iPhone, iPad, iPod relat ed, Reviews

Tagged: iPad stand

Mobile Stand for Tablet PC Revieworig i nal ly appeared on The Gadgeteer on March 20, 2011 at 5:30 pm.

(Sent from Flipboard)

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Ray1man

Friday, March 11, 2011

iPad 2 tear down

iPad 2 tear down - The iPhone Blog

iPad 2 tear down

by Rene Ritchie, Saturday, Mar 12, 2011, 1 Comment

iPad 2 tear down

Right on schedule the feisty folks at iFixit got their hands on an iPad 2 and tore it down to its constituent parts. Doesn't look like there's any word yet on whether or not it uses an ARM Cortex A9 and PowerVR SGX 543 but hopefully that's forthcoming. Highlights include:

The thickness of these components — especially that of the glass — could drastically reduce the durability of the device, especially the glass' resistance to shattering. We'll see in due time if the percentage of folks with broken iPad 2 front glass is dramatically different than that of the original iPad.
Lifting off the LCD exposes the iPad 2's battery. We found a 3.8V, 25 watt-hour unit. That's just a hair more than the original iPad's 24.8 watt-hours, so any improved battery performance should be attributed to software and other hardware improvements.
We confirmed via software that the iPad 2 indeed has 512 MB of RAM.
The markings on the 1 GHz Apple A5 dual-core processor appear to be Samsung's, but Chipworks will investigate in the forthcoming days to find out for sure.
Other components that power the iPad 2:
Toshiba TH58NVG7D2FLA89 16GB NAND Flash
Broadcom BCM5973KFBGH Microcontroller
Broadcom BCM5974 CKFBGH capacitative touchscreen controller
Texas Instruments CD3240B0 11AZ4JT touchscreen line driver
Broadcom BCM43291HKUBC Wi-Fi/Bluetooth/FM tuner combo chip
S6T2MLC N33C50V Power Management IC
ST Micro AGD8 2103 gyroscope
ST Micro LIS331DLH accelerometer
There's also an Apple-branded 338S0940 A0BZ1101 SGP chip. This looks like the Cirrus audio codec Chipworks found in the Verizon iPhone, but they'll have to get it off the board to make sure!

What you expected or did Apple slap any surprises inside iPad 2?

Video after the break!

[iFixit]

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Ray1man

Wednesday, March 09, 2011

Booqpad for iPad 2 announced

Booqpad for iPad 2 announced
COOLEST GADGETS | MARCH 7, 2011
http://pulsene.ws/14Cgr

It isn't too long ago that the iPad 2 was announced, and to see more and more accessories roll out for it is definitely ... Read more

--
Want to read news on the go? Get Pulse, an awesome news reader for iPad, iPhone and Android. Its Free!

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Ray1man

Sunday, February 20, 2011

Article: Review: Cover Orange HD - Rolling Onto The iPad

Review: Cover Orange HD - Rolling Onto The iPad - Apple iPhone Apps

Reviews > Games > Cover Orange HD

Cover Orange HD

Reviewed February 20, 2011 by Allan Curtis
Price: 1.99

Overview

Cover Orange is a physics based spin on Angry Birds, in reverse. This time instead of destroying buildings and pigs, you're goal is to protect helpless oranges from a deadly rain cloud. It's actually a lot of fun, but will it stack up as a worthy replacement to the top game in iOS history?

Features

Cover Orange features familiar physics based gameplay, many stages and Game Center support.

The Good

Cover Orange takes the familiar "crush the building" gameplay from Angry Birds and turns it on its head. Cute oranges are left exposed to be ruined by an evil rain cloud. You have the power to move and drop objects, such as boxes, wagon wheels and planks to cover the vulnerable fruit. After you've placed all your armor, the nasty rain cloud flies by, shooting deadly raindrops that kill all the oranges they touch. If you have placed the objects in such a way that all the oranges are protected, you win and move onto the next level. This is an interesting idea and the game is dead simple to play, as the idea takes no time to learn.

Stages are nice and the strategies vary in how you have to protect your oranges. You might need to simply drop a box onto a level above an orange to shelter it, or you might need to drop a wagon wheel right on an orange to nudge it so it rolls under cover. In the more advanced levels you'll need to drop a weight onto a plank to release another plank to protect the oranges, as you can see it gets quite challenging.

The physics are well done, but still, the game is somewhat luck based. Sometimes items land in such a way that you unexpectedly protect the oranges yet other times almost the exact same movement yields items and oranges falling off cliffs. For a player looking for a skill game, this can be quite irritating. The raincloud's raindrops also bounce and "wiggle", so sometimes you're be unlucky and a raindrop will bounce right under a shelter that worked fine last time you played the stage.

Graphically the game is well done. The oranges have plenty of cute animations, and the game has a bright cartoony look similar to Angry Birds. Although the game doesn;t have quite teh same level of aesthetic polish as Angry Birds, it is sharp and colorful.

The Bad

Sound on the other hand, is not quite the same experience. In face, Sound-wise the game is poor. The same generic music plays throughout the game and the sounds the oranges make when they are hit get annoying very fast. The raincloud's corny laugh is particularly grating.

The game also has a fairly short lifespan. It lacks the addictive quality and personalty of Angry Birds, or the strategic feel of a game like Tiki Totems 2. After a few stages you've basically seen what you're going to be doing for the rest of the game.