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Many retirement programs and pensions have limited their choices when it comes to funds. Many 401ks and other programs only offer a select few mutual funds called target funds. These funds seem great at first, until you look at the high fees and the generalities surrounding them.

Often these funds are just a “salad” of other funds. The managers place money in different mutual funds to reach a generally accepted asset allocation to protect your money and provide decent returns. Unfortunately, this means you also pay double fees as you will have to pay for the manager to manage your money and for the fees for the funds in which your money is invested. The target fund is merely the middle man for other funds.

These funds also rarely ever have your best interest in mind. The manager will likely take the target fund money and invest it only in funds offered by the same firm. It would be equivalent to a stockbroker only selling you investments that he holds, or selling you the highest rate fund he can find. Target date funds have a large amount of capital because of the overwhelming number of investors who are privy to getting ripped off.

If you can, try to avoid the target date funds altogether. For the most part, they are nothing but renamed index funds with double the fees.

In short, yes. All three presidential hopefuls want to lower taxes and limit tax hikes. However, all of them have vast social programs that will eventually cost billions in taxpayer dollars. Here is a quick run through of Hillary Clinton, Barack Obama, and John McCain with a quick glimpse of their policies.

Hillary Clinton

• Seeks immediate relief for housing crisis
• calling to freeze interest rates
• Co-sponsored bills totaling $502B in spending thru 2005
• Voted NO on paying down federal debt by rating programs’ effectiveness.
• Voted NO on $40B in reduced federal overall spending.
• Higher Social security tax

Barack Obama

• Bush stimulus plan leaves out seniors & unemployed.
• Help the homeowners actually living in their homes
• Save $150 billion in tax cuts for people who don’t need them.
• Rejects free market vision of government.
• Voted NO on paying down federal debt by rating programs’ effectiveness.
• Voted NO on $40B in reduced federal overall spending.
• Higher Social Security tax

John McCain

• Continue strong in Iraq
• Voted YES on $40B in reduced federal overall spending.
• Private social security accounts

A quick glimpse at the candidates platforms show that many of them would continue with the same federal budget, and all of them have shown a net increase in the budget. Their stances on each federal program, and program types are different, but total spending is the same.

The biggest cost to taxpayers, and an integral part to the 2008 election, is the war in Iraq. Two candidates, Hillary Clinton and Barack Obama both want to put a timetable for withdrawal in place - although Obama’s would be much sooner than Clintons.

John McCain wants to continue with the current strategy in the war on terror, and is adamant about staying in Iraq for as long as it takes, even if it takes 100 years. Ending the war in Iraq would save US Taxpayers roughly $150 Billion per year and cut the Federal Deficit by nearly half. The war is a much bigger expenditure than most people think.

All three candidates want to aid in the subprime blowup, which will cost even more in Federal money. After the buyout of Bear Sterns, all candidates agreed that the citizens of the United States needed assistance in keeping their own homes. No bill has yet to pass regarding new funds for homeowners, but it should remain a key talking point in Congress.

Hillary Clinton and Barack Obama support raising the bar on Social Security taxes so the upper class pays the current tax rate on more of their income. John McCain does not support the measure; only wanting to privatize social security so each person can make their own decisions.

As it appears, every candidate will affect your bank account negatively. Hillary Clinton desires more homeowner assistance and greater social programs, while requesting higher tax ceilings on social security. Her call to end the war in Iraq will lower the federal deficit, but not until 2012, her date of withdrawal.

Barack Obama wants to end the war in Iraq as soon as possible, but wants higher social security ceilings and more social programs than the two other candidates. It is safe to say that the savings from the war in Iraq would quickly be spent in more social programs. Universal healthcare being the key expenditure.

John McCain is also likely to increase the federal budget. Although he highlights his ability of foresight for the bridge to nowhere (which would serve 200,000 people) and various military expenses, he is willing to continue with the $150 Billion a year war. He supports some kind of health care aid much like his two democratic challengers although not as widespread.

Refurbished products abound, are they really worth the savings.  The short answer is yes.

Refurbished products are products that have been returned to the manufacturer after difficulty with use, problems with the device or simply the wrong product was shipped.  Most of the time, refurbished products are gutted then rebuilt and sold again as refurbished.  Many refurbished products get a more thorough look than the first production.

Where to buy

It is never recommended that you buy products from a third party because they cannot offer support or exchanges if the product is still malfunctioning.  The best deals in refurbished products come directly from the manufacturer.  Manufacturers have a lot to keep up when it comes to brand loyalty and will be willing to offer support if you experience products.  Some manufacturers even offer extended warranties even on refurbished products, as good as new in my mind.

It is important to note that refurbished materials are usually used, not new.  A refurbished product is usually a Frankenstein of many different failed machines, survival of the fittest if you will.  For products that wear out of time such as disk drives, batteries or anything with a somewhat limited use, you should expect a shorter lifespan.  These products have been used before you owned them and do have some ordinary wear and tear that comes with them.

Reconditioned is better

Reconditioned is even better than refurbished.  This usually means the products are in good working order but might be overstocked or been taken from lease.  Reconditioned products usually come with a full warranty equal to that offered when buying new but sell at the same price as refurbished products. 

The decision is that refurbished products are a great deal, especially when it comes to electronics.  Refurbished electronic products usually come with a deep discount and the same quality you would expect right of the box.  While it might not have the shiny packaging and expensive price tag, all in all refurbished products are a great buy.

Finding and clipping coupons is a quick and easy way to save on products you buy anyway.  Most name brand companies publish coupons in an attempt to promote their products, or to make them more appealing to the everyday savvy saver.  Some coupons make buying the name brand cheaper than buying a generic– those are the kind of coupons we’re looking for.

REAL double coupons

Very few people know that it is possible to use two coupons on products.  For most brands and stores, it is possible to use a manufacturer’s coupon and a store coupon.   It is important to first check with the customer service desk rather than a cashier for a more knowledgeable answer, but most stores will allow the use of two coupons if they are from two different sources. 

Double coupon stores

The ordinary double coupon deals are rarely as good as they sound.  Some groceries allow customers to use a coupon and receive savings equal to double the value of the coupon.  These discounts are usually limited up to $.75 or $1.  Unfortunately these deals are only found at high end stores, which might be more expensive than discounters even after the coupon.  Double coupons are the best for products that normally do not have coupons, such as milk, bread, meat and most produce.

Price match to save

Price matching is the best coupon known to man.  Shopping at a store that allows price matching will let you get the lowest prices you see in your Sunday paper while making just one stop.  Granted, not all sales are published, but the best ones generally are.  Be sure to look for stores that price match to get the most out of each trip.

Other stores offer coupons as well

Groceries aren’t the only product that offers coupons.  Department stores often run coupons for a discount after spending a certain amount of money, for example, save $10 for purchases over $50.  These coupons are great if you plan on spending that much anyway, but don’t go out of your way to qualify for the savings, this is like spending a dollar to save a penny.

Gasoline is very expensive, and there is not much hope of it getting cheaper any time soon.  There are some methods to saving money on gas, even if the prices are sky high.

Lose some weight

You should first look into your own car.  Leaving folding chairs, groceries, and salt in your car increases its weight and lowers your gas mileage.  Shaving just 100 pounds from your cars weight will increase gas mileage by a few percentage points.  Properly aired tires will roll better and reduce friction, also improving gas mileage.  Air filters and other components should be changed regularly as well as they can affect how your engine performs.

Gas Credit cards

The next step is to apply for a gasoline only credit card.  Certain gas stations give cash back for purchasing gas at their stations with their credit card.  Gas cards give up to 5% cash back for regular purchases at the name brand gas stations.  Some general purpose credit cards, like the Amex Blue or Chase Freedom give 5% and 3% cash back respectively.  A 5% savings is like going from 20 mpg to 21 or cutting the price at the pump from $3.00 a gallon to $2.85.  As you can see, there is a lot of money to be saved by using a cash back card.

There are speed limits for a reason

Driving the speed limit is another guaranteed way to save on gas, but can be hard to do for on the go drivers.  Very few people understand that driving even 10-15 miles per hour over the speed limit saves just a few minutes on travel time, but greatly decreases the efficiency of your engine.  You will see an instant improvement of 20% when traveling at 55mph rather than 70mph. 

Short trips ruin gas-mileage

Your car might get really impressive gas mileage, but short trips will greatly dismiss the benefits.  Short trips of 5 miles or less use much more gasoline per mile than long trips.  A short trip to the store will often yield a mpg ratio of 5-6. 

Saving an extra $100 per month will give your budget additional flexibility. There is a lot you can do with $100, such as paying down high interest debt, saving for future expenses, or even a luxurious vacation.

Cut the luxury

Small luxuries are the first place to look for cuts. Look into your wallet at the beginning of the week and at the end of the week, chances are that the small bills go quickly and you never have anything to show for it. The $4 cup of coffee in the morning, a $.75 candy bar at lunch and a gumball at the store might seem like a small amount at first, but this adds up to $150 per month.

Insurance premiums are out of this world

Insurance premiums are another place to save some additional cash without risking financial safety. Raising the deductible on your home or car insurance will drop your premiums by 25% or more. Increasing your deductible from $500 to $1000 will free up a significant portion of your budget while only adding additional liabilities if an emergency occurs. Why pay an extra $600 a year for just $500 more in protection on your car? Call your insurance broker and lower your deductible immediately.

Invest in cost saving devices

Invest in your future. Changing out light bulbs or your shower faucet head can bring instant savings in electric and water bills. New light bulb technology drops electricity use by 75% while still delivering the same amount of light. Low flow showerheads limit water usage but can still deliver the pressure that you enjoy from your traditional shower head.

Saving the small change

Start collecting spare change. The small amounts of money is quickly lost or spent on things we do not really need. The “gotcha” stores with the $1 items might sound cheap at first, but when you realize you have no need for them, they are no longer doing you any service. Start saving the small change and it will quickly add up.

Shopping around for the best interest rate can be a tedious task.  Minimum investments, investment periods and thousands of banks make shopping for a CD a difficult process. 

Stay away from corporate banking

Local for profit banks are generally the last place to look.  These banks are heavily taxed, unlike credit unions, and are out to profit, not benefit the members.  For profit banks usually have lower rates on CDs because they would rather borrow from the Reserve than from individuals.  For profit banks are also known for having significant fees for early withdrawal, and less options than credit unions.

Credit unions

Credit unions are the best place to check when considering in town banking and CD rates.  Credit unions are not for profit and look to serve members before making a profit.  Credit unions usually have favorable withdrawal policies and a plurality of plans spanning from monthly interest payments to compounding CDs.  If you want the high rates from someone in-town, a quick run to a local credit union is a great place to start.

Look online

For those willing to take the plunge with online banking, you will find the best CD rates from low-cost for-profit online banks.  These banks cut overhead by operating online and pass the savings to their customers and investors.  Online banks often use CD rates as a marketing tool and offer very high promotional and non-promotional rates designed to pull in new customers.  You might be able to find rates up to a full percentage point higher than off line banks. With this in mind you will incur some drawbacks such as overall convenience and limited access to your money.

Resources for finding the best rate

Websites such as Bankrate.com give a list of CD rates offered around the country.  The tech age has brought unforeseen competition in CD rates that has undoubtedly benefited the consumer.  The top yielding banks are ever changing, utilizing tactics such as adding .1% here and there to be listed as the #1 yielding bank. 

It’s amazing how saving a few extra bucks a day can pay off huge in the long run. The No Credit Needed blog has given us a nice little example of how $10 a day can add up to over 3/4 of a million dollars just in time for retirement and that’s with only a 5% return on investment. I think we can all do better than that

If I contribute $1 per day ($360 per year) for 50 years, at 5%, I’ll have more than $79,000!

If I contribute $10 per day ($3600 per year) for 50 years at 5%, I’ll have more than $790,000!

SO put down the soft drinks and chips. Both your body and wallet will thank you in the long run!