“Business, Personal Finance, Technology, Employment news for Austin and Central Texas ... - Austin American-Statesman” plus 2 more

Business, Personal Finance, Technology, Employment news for Austin and Central Texas ... - Austin American-Statesman
Personal Finance: Educated but broke - Washington Post
Personal Finance: Challenges of long-term joblessness on the rise - Sacramento Bee

Business, Personal Finance, Technology, Employment news for Austin and Central Texas ... - Austin American-Statesman

Posted: 19 Aug 2010 08:12 AM PDT

Home > The Real Deal > Archives > 2010 > August

August 2010

By American-Statesman staff | Thursday, August 19, 2010, 10:00 AM

Existing home sales in the Austin area fell 25 percent in July from a year ago, the Austin Board of Realtors reported.

Board Chairman John Horton said federal buyer tax credits, which expired in April, distorted the usual seasonal buying patterns, causing some sales to occur earlier in the year than usual.

As a result, he said it's more useful to look at sales for the year to date. For January through July, sales are up 5 percent compared to the first seven months of 2009, he noted.

In July, 1,518 homes sold at a median price of $222,000, up 15 percent from a year earlier.

For the first seven months, 11,260 homes have been sold at a media price of $194,000, up 2 percent.

Permalink | Comments (15) | Post your comment Categories: Residential

By Shonda Novak | Wednesday, August 11, 2010, 12:34 PM

Shoreline Partners Ltd., doing business as Shoreline Grill, has filed a bankruptcy petition that lists about $130,700 in assets, nearly $600,000 in debts and dozens of creditors for the fine dining restaurant next to the Four Seasons Hotel in downtown Austin.

The restaurant will continue operating as usual while its debts are reorganized under the Chapter 11 petition, said Austin attorney Barbara Barron.

Barron filed the petition late Tuesday on behalf of Shoreline Partners Ltd. The general partners of Shoreline Partners Ltd. are Jeff Weinberger and Ron and Peggy Weiss, who operate the 21-year-old restaurant on a daily basis and who also have an ownership stake in the limited partnership.

Weinberger is the operating partner of the general partnership, Shoreline Associates Inc., which manages the restaurant. The Weisses also are general partners.

Together the three own Jeffrey's, an upscale restaurant, and Cippolina West Austin Bistro, both on West Lynn Street.

The goal of the reorganization is to have the restaurant emerge stronger than before, Barron said.

"This is a group that's been around 35 years and they have a sterling reputation" and stellar track record as restaurant operators, Barron said. But she said Shoreline Grill became a casualty of the recession during the past couple of years.

Barron said that more than one-third of her caseload involving distressed businesses are currently restaurant-related.

In addition to the economy, Barron said other factors played a role in the Shoreline filling, including the "plethora of new restaurants that opened up." She said Shoreline's operators "probably didn't react quickly enough" to the intensifying competition.

The partnership's ability to pay its rent to landlord Thomas Properties Group also was an issue, as the lease was signed "when the economy was booming, and market rent is now half of what should be paid," Barron said.

According to the petition, the restaurant hasn't made money since the 2007 tax year, when net income was $52,082. The partnership's 2008 tax return listed a loss of $92,588, followed by losses of $205,860 in 2009 and a year-to-date net loss for 2010 of $179,557.97, the filing states.

One of the largest creditors is the Internal Revenue Service, which is owed $158,579.45, according to the filing.

Weinberger and the Weisses each made $40,000 loans to the corporation in February 2009. In addition, the filing lists a $25,000 advance from a personal credit card for a business expense.

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Personal Finance: Educated but broke - Washington Post

Posted: 19 Aug 2010 07:37 AM PDT

"I am giving Steven Slater two big thumbs up," says Gina Wilson of Denver, Colo. "Entitled rudeness is rampant and not just on airplanes, but everywhere. So good for Slater that he was fed up and did something about it. Those of us who suffer silently wish we had the guts he exhibited and love that he did what we want to do on a daily basis!"

Stacy Lynskey of Ashburn, Va. also understands Slater's actions.

"As a former airline customer service employee, I can see both sides of this. No, I don't think it is ever acceptable to lose your cool or curse at anyone in the workplace, but I can also feel Slater's pain. His frustration was likely a combination of being treated like chattel by his employer, and then being treated rudely by customers. There is no excuse anywhere for what this customer did and we must remember that Slater had put up with this kind of behavior for 28 years. So, yes, I would have started a slow clap, too. Slater deserved to go out with style - grabbing the beer was the coup de grace!"

In the end, the majority of people who responded felt like T.Q. of Las Vegas. Slater is no hero. He wrote: "I can sympathize with Mr. Slater's actions. I work with the public every day and there have been days it would have been so appropriate to tell someone off in a dramatic way or even toss a pie in their face. However, I've kept my professional cool, even if I uttered a few choice words to myself or after I hung up the phone. You're right to say that people need to keep control. If we all acted as rashly as Mr. Slater did every time we were insulted or fed up, it would be a very difficult world to live in."

Taking Early Social Security

In this still-shaky economy, more people have filed to collect payments before their full retirement age, reports the Associated Press's Matt Sedensky. More people filed for Social Security in 2009 -- 2.74 million -- than in any year in history.

It's because of the economy, of course. People who have lost their jobs are just opting to go ahead and collect Social Security, says Jason Fichtner, an associate commissioner at the Social Security Administration.

People entitled to full benefits at 66 would receive 75 percent of their check if they began collecting four years early. Conversely, if they waited until they turned 70, collecting four years late, they would earn 32 percent more.

Debt Defeaters

I still want to hear from those of you who have given the boot to your debt.

Send your Debt Defeaters stories to colorofmoney@washpost.com and put "Debt Defeaters" in the subject line. During my next live video chat Aug. 26, I'll read some of your stories.

Upcoming Events

- Saturday, September 18, 4:30 p.m. to 5:30 p.m.: I will be reading excerpts from my latest book, "Power to Prosper: 21 days to Financial Freedom," at the Capital Bookfest in Harrisburg, Pa. at the State Museum of Pennsylvania located at 300 North St., Harrisburg, Pa., 17120.

- Thursday, September 23, 7:30 p.m.: I'm appearing at the Fall for the Book Festival in the Johnson Center lower level (in Dewberry Hall South) on the Fairfax campus of George Mason University.

--Saturday, October 2, 5:30 p.m. to 6:30 p.m.: Come see me at the Boulevard at Capital Centre, located at 900 Capital Centre Blvd., Largo, Md., 20774. For more information, go to www.capitalbookfest.org.

--Thursday, November 4: I will be facilitating the Money Madness session at the Essence Women's Conference located in New York City at the Marriott Marquis. For registration and ticket information, go to www.essence.com/ewc.

Tia Lewis contributed to this e-letter.

You are welcome to e-mail comments and questions to singletarym@washpost.com. Please include your name and hometown; your comments may be used in a future column or newsletter unless otherwise requested.

Personal Finance: Challenges of long-term joblessness on the rise - Sacramento Bee

Posted: 15 Aug 2010 02:22 PM PDT

Editor's Note: For the long-term unemployed, staying afloat – financially and emotionally – is daunting. To help those on the road to recovery, the Bee brought together a long-time job seeker with a financial planner to offer advice on saving money while hunting for work.

When he lost his job in April 2009, Robert Mathis wasn't worried. With 23 years at AAA, most recently as a "quality analyst" driving to auto club offices in three Western states, he was confident of quickly finding work.

Fast-forward to August 2010.

These days, it's hard to rev up much optimism. The 48-year-old feels he's riding on fumes. He's burned through his severance and nearly tapped out his 401(k) fund. Despite numerous applications, his job search has netted just three in-person interviews. Worse, his health care premiums just tripled – to $586 a month – while his unemployment benefits will expire early next year.

Prior to his layoff, Mathis already was feeling some financial strain following a home foreclosure and subsequent divorce. Now, he's getting desperate, even contemplating a move from his Placerville rental to his mother's home more than 300 miles away in Northern California.

"When you first get laid off, you think: 'I'm smart, I can do this. I'll get another job in six months,' " said a weary-sounding Mathis. But after nearly 16 months he's discovered that "finding a job is the hardest job you can do."

Especially when he's got so much company. By U.S. Department of Labor standards, anyone who's been jobless more than six months (27 weeks or more) is considered "long-term unemployed." Nationally, about 6.6 million people were in that category as of July, nearly quadruple the number in July 2008. In California, 43 percent of the state's 2.2 million unemployed in June had been out of work for 27 weeks or more, according to the state Employment Development Department.

"These are the highest figures we've seen in 62 years – not only the sheer numbers but the percentage of the work force who are long-term unemployed," said Amar Mann, an economist with the U.S. Bureau of Labor Statistics in San Francisco. During the previous worst recession in June 1983, Mann said, 2.6 percent of the work force was long-term unemployed; today, it's 4.3 percent.

To help Mathis and other long-term unemployed, we asked Debbie Grose, a certified financial planner with Lighthouse Financial Planning LLC in Folsom, to map out plans for cutting costs and finding work.

On a recent morning, spreading out Mathis' financial paperwork on her firm's conference table, Grose quickly summed up the obvious: Facing the loss of his unemployment benefits and a tripling of his health insurance premiums, Mathis "needs to readjust pretty quickly."

For someone accustomed to a $64,000 salary and meals/mileage paid for by his employer, Mathis already lives frugally. He rents a small, one-bedroom home in Placerville. He doesn't eat out. He pays PG&E a discounted bill for electricity.

"There's not a lot of wiggle room in this budget," she told him, "but the more proactive you are, the better off you'll be in the long run."

While some of Grose's recommendations are specific to Mathis, many are applicable to anyone who's been unemployed long term. Here's her advice:

For saving money

• Continue to be frugal in order to build up a savings reserve.

• Settle up with the IRS and state Franchise Tax Board, to which he owes a total of $13,700. Grose suggested contacting the IRS about its economic hardship program, which helps the unemployed deal with delinquent tax bills.

• Consider selling his 2009 Toyota Camry – purchased four months before his unexpected layoff – and getting a less-expensive used car. If it pencils out, he could earn a few hundred dollars on the trade, plus save on his auto insurance.

• Switch to a lower-cost health plan. "It'll be bare bones but it'll cover you in case something major happens."

• Consider switching to a pre-paid cell phone that doesn't require a monthly service plan. Don't switch, however, if penalties will incur.

• Look into cheaper housing: taking a roommate; renting a room, rather than a house; offering to mow lawns or do maintenance in exchange for reduced rent.

• Call utility companies to ask about hardship reductions. "Especially if there are late payment fees or penalties, it can't hurt to ask," said Grose.

• Consider withholding taxes from alternating unemployment checks to ensure there's enough to cover an estimated $1,000 federal and state tax bill. "Pay attention to the amount taken out. You can do the math to see if it's enough to cover that tax bill by the end of the year."

For job hunting

Mathis, who has significantly lowered his professional expectations, took some recent steps to amp up his job search.

Worried that his 23 years at AAA might make him sound old, he's adding a photo to his LinkedIn.com profile to make it obvious that he's still in his 40s.

Several weeks ago, Mathis posted his résumé on Facebook to get feedback from friends/colleagues. He's already gotten some useful critiques, he says.

This month, he applied for three jobs: at Marshall Hospital, for a Verizon customer sales job and for a school custodial job in Placerville. He got rejections from each.

"It's like I've lost a piece of who I am because I don't have a job," said Mathis. "People ask what you do for a living and I don't have an answer anymore."

Grose's recommendations:

• Fine-tune your résumé. If it hasn't been updated recently, get professional advice to be sure it's current and lists specific job skills, such as training, instructing and claims analysis.

• Return to a career center to evaluate new retraining programs.

• Sign up with a temporary staffing agency.

• Volunteer. It's good for the soul to help a good cause. And it adds to the résumé.

• Find things that make you happy, whether it's cooking a meal or spending time with friends or family.

Above all, she urged him to stay hopeful. As someone in career transition herself a few years ago, Grose said she understands the intense feelings of discouragement. "I know it's hard. It's difficult hearing 'no' after 'no' for over a year."

Leaning across the table, the financial planner reminded him: "You've got some great skills and talents. You are not this situation. Honor that."

For more resources and tips for the unemployed, see accompanying story at right.

Have a personal finance question? Contact The Bee's Claudia Buck at (916) 321-1968.

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Personal Finance

Thursday, August 19, 2010