Do you want to become a millionaire? Stupid question, I know. Who wouldn’t want to be a millionaire? Well, I’ve shared my 5 steps on how to become a millionaire in the past, but there are a few unconventional methods as well. One of those is to win big on a game show — namely, the Who Wants to be a Millionaire show.  The clip below features a college student who would like to become a millionaire, but from the results you can see why he may want to rely on the basics such as spending less than you earn, avoiding debt and saving for retirement rather than count on his own intelligence. In fact, he might want to focus on studying a bit more while in college, getting some sleep, and not being hopped up on caffeine.

Want to become a millionaire? Step one: don’t be like this guy.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Want to Become a Millionaire? Don’t Be Like This Guy

I suppose it probably doesn’t come as much of a surprise, but Microsoft is discontinuing their money management software at the end of the month. They had a good run, but it’s pretty hard to keep up with so many free money management platforms and the long-standing top finance package that Quicken offers.

The writing was on the wall since last fall Microsoft announced they were going to stop selling Money in retail stores and offering annual updates. I know that buying software in the store as a whole might be slowly becoming a thing of the past, but you usually don’t see major titles stop offering their products in stores unless there are plans to discontinue it entirely at some point.

Microsoft did post an official announcement on their site today. It isn’t long, but the important part states (emphasis mine):

Microsoft Money Plus will not be available for purchase after June 30, 2009. All purchased Money Plus products must be activated prior to Jan. 31, 2011. With banks, brokerage firms and Web sites now providing a range of options for managing personal finances, the consumer need for Microsoft Money Plus has changed. After suspending annual updates of Money Plus in 2008, Microsoft is announcing today that we will no longer offer Microsoft Money Plus for purchase after June 30, 2009.

Some things have certainly changed as you have companies like Mint providing a unique personal finance package for free. But I’m not sure what banks and brokerage firms are offering that compete with what Mint, Money, or Quicken have to offer. Sure, they may provide some added features that can help consumers with their money, but nothing nearly as comprehensive as their software.

I think the main issue is that people know that they can get virtually the same level of service without paying by using Mint or Quicken Online. Sure, if you have more complicated finances or need more granular levels of reporting you might still opt for a more robust package. But most people are just looking for something simple, and Microsoft has been lagging in that department for years.

Are You a Money User?

So, I’m curious if there are any MS Money users out there. I’ve used it occasionally over the past few years for testing purposes, but I always fall back on Quicken. It’s not that Money is bad software, but I got my start on Quicken. Like the saying goes, you can’t teach an old dog new tricks. It’s hard to get out of a rhythm. But if you are using MS Money, how did you like it, and is the cancelation of it going to force you to look for an alternative?

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

No More Microsoft Money After June 30

If you’re reading this, you’re using a computer. Computers have become a necessity for most of us, and in many cases, we have even more than one. Unfortunately, computers can also have costs associated with them as technology continues to advance and software gets updated. If you’re like the millions of others out there using a PC with Microsoft software, you know just how costly it can be to upgrade to a new version of Windows, Office, or any of their other programs. In many cases, these software packages can run well into the hundreds of dollars and the license is only valid for one computer. If you want to upgrade multiple computers in your home it’s often not feasible to do so.

Then there’s open source software. Obviously, you’re free to install whatever you want on your computer so you can go ahead and grab a copy of Linux or any other free operating system and then use a number of the free applications to get your work done. This is a great way to keep costs down, but unfortunately it has a bit of a learning curve for the novice computer user and you may encounter some odd hardware or software incompatibilities. For people who may not want to learn a new system and stick with what’s familiar with Microsoft products, the options are usually to pay or pirate. Paying can be expensive, and pirating is illegal so the options are limited. And if you’ve ever been burned by dropping a few hundred bucks on a new version of software only to find it sucks or doesn’t work with your hardware, you know how frustrating that can be.

Introducing Microsoft TechNet Plus

Actually, this is nothing new. Microsoft TechNet is designed for IT professionals. TechNet Plus provides convenient access to full-version Microsoft evaluation software-without time limits. The annual subscription also includes Professional Support incidents, a technical information library, and many other resources for evaluating, deploying, and maintaining Microsoft software.

But you’re not an IT professional you say? You don’t have to be. There’s no test or qualifications you need to have in order to subscribe to TechNet Plus. You do, however, need to follow a few changes to the licensing terms since this is evaluation software. The main thing here is that this license isn’t meant for a live production environment. So if you run a business and are thinking about installing a bunch of software on your employee’s computers, you can’t. And if you’re a programmer, you’re not supposed to use this software in a software development environment.

According to the Microsoft FAQ:

Can I use evaluation software received in my TechNet Plus subscription at home?

The license grants installation and use rights to one user only, for evaluation purposes, on any of the user’s devices, this may include devices at home. Keep in mind that you may use the evaluation software only to evaluate it. You may not use it in a live operating environment, a staging environment, or with data that has not been sufficiently backed up. You may not use the evaluation software for software development or in an application development environment.

TechNet Plus Subscription Benefits

Microsoft software licensed for evaluation purposes. Evaluate full-version commercial products without time limits or feature limits, including Microsoft operating systems, servers, and Office System software. With full-version software, you can make informed decisions about new technologies and deployments at your own pace.

Beta software. Receive pre-release versions of Microsoft operating systems, servers and business applications.

Professional Support Incidents. For the toughest technical questions, a TechNet Plus subscription includes two complimentary Professional Support incidents and a 20% discount on additional purchased support incidents. Talk to a Microsoft Support Professional to help resolve mission-critical technical issues fast.

Managed Newsgroup Support. TechNet Plus provides unlimited access to over 100 Managed Newsgroups. Exchange ideas with other IT Professionals and get expert answers to your technical questions within the next business day-guaranteed.

Technical resources for Microsoft products. Access the Technical Information Library containing the Microsoft Knowledge Base, security updates, service packs, resource kits, utilities, technical training, and product documentation to keep systems and IT skills up-to-date.

Microsoft eLearning courses. To prepare for certification or simply to help build your technical skills, TechNet Plus includes a selection of Microsoft eLearning courses for free each quarter.

Online Concierge Chat. Chat with a Microsoft Search Assistant online for help finding the technical resources you need or for assistance with non-technical questions.

Subscription to TechNet Magazine. Receive a free one-year subscription to TechNet Magazine which provides hands-on information to help IT Professionals maximize their system’s security, reliability, scalability and interoperability.

How Much Does It Cost?

Ok, so this all sounds great, but how much does it cost? Well, the first year subscription is $349 and renewals go for $249 a year. Sounds like a lot, but consider how much just one copy of Microsoft software costs. One copy of an OS, one copy of Office, or far less than some of the server products. Obviously, if you have ever went out and bought a new copy of Windows or Office or something only to find out you hate it or that it doesn’t work right you can see how this could be helpful.

The good news is there’s a coupon code out there right now that gets you $100 off new subscriptions. That brings your first year subscription down to $249, or just over $20/month. The coupon code is: TW7OBA. I’m not sure how long it will last, so you may want to act fast if you’re considering this.

It’s Not for Everyone

It probably goes without saying that this service isn’t for everyone. If you’re someone who just buys a new computer and is content with the software they give you, then it could be a waste of money. But if you’re a bit of a computer geek like I am, the TechNet subscription can pay for itself quickly.

I build my computers from scratch and I’m constantly experimenting with hardware and software configurations and trying to get the most from my computers. And with multiple PCs at home, it just isn’t feasible to go out and buy new software every time I want to try it out or see if it works on my setup. Having the ability to download and install almost any Microsoft application available is a huge benefit and it allows me to plan my future computer and software purchases accordingly instead of wasting money on an upgrade that isn’t worth it.

So, consider how you use your computers and see if this is something you may be able to take advantage of. If you can, it could save you some good money. Obviously, using free open source software can save the most, but if you rely on or just like Microsoft applications, this is the best way to get your hands on it. If you already use TechNet, feel free to chime in and let us know if you’ve found it useful or not.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Consider a Microsoft TechNet Plus Subscription to Keep Computing Costs Down

A List of Free Online Antivirus Software

Keeping your computer safe and secure these days can be quite a task. It seems that everywhere you look, people are trying to steal your personal data, infect your computer with a nasty virus, or trick you into clicking links that aren’t legitimate. As you are probably using your computer to tackle a number of increasingly personal tasks, it’s more important than ever to make sure you’re protected. If you’ve ever been a victim of a devastating virus that wiped out your hard drive or received a strange email that secretly emailed all of your contacts, you know the importance of keeping your PC safe.

While there’s no substitute for an updated real-time virus scanner installed on your computer, there are times when you may not have antivirus software installed, or it may be costly to purchase an additional license for a computer that isn’t often used. So, luckily there are many free online scan utilities out there available to you. In addition to being completely free and easy to use, you’ll also get a feel for how many of the different types of programs work. If you’re thinking about purchasing antivirus software for your computer, you can get a better idea of which one might be best for you after trying the online versions.

Trend Micro HouseCall

Trend Micro HouseCall is an online application for checking whether your computer has been infected by viruses, spyware, or other malware. HouseCall performs additional security checks to identify and fix vulnerabilities to prevent reinfection. HouseCall works with most versions of Windows, and Mac OS 10.4 or higher and can be used with IE 6+ and Firefox. Scan your computer with HouseCall now.

BitDefender

BitDefender Online Scanner is an on-demand virus scanner which incorporates the award-winning BitDefender scanning engines. You can use it to scan your system’s memory, all files and drives’ boot sectors, and to automatically clean infected files. You will need Internet Explorer to run this scan. Use BitDefender today.

Symantec Norton Security Scan

Symantec offers two different scanning options. You can scan for security problems or just do a virus scan. In addition, you can also opt to download a free version of the basic software to your computer so it runs automatically without requiring you to go online and manually run the scan. You will need IE 5+ with ActiveX in order to run the online version. Try Symantec now.

F-Secure Online Scanner

F-Secure Online Virus Scanner is a free service. Use it to find out if your computer is infected, and disinfect your computer if needed. To use this scan, you will need to be running Windows and use Internet Explorer with javascript and ActiveX installed. In addition to the online virus scan, you may find the F-Secure Health Check useful as well. The health check will scan your computer and applications to determine if there are any outdated software or other vulnerabilities detected. Use the F-Secure online virus scanner.

McAfee Free Scan

McAfee FreeScan helps you detect thousands of viruses on your computer. Based on the award-winning McAfee VirusScan engine, FreeScan searches for viruses, including the latest known “in the wild” viruses, and displays a detailed list of any infected files. Should viruses be found, FreeScan even provides links to more information about the viruses and what you can do to clean your system. Try McAfee Free Scan now.

CA Online Virus Scan

Similar to the other scanners, this is a quick online tool that can scan your files for harmful files. The tool allows you to select specific drives or files if you don’t want to scan your entire computer, which is great if you just need to run a quick scan on something in particular. This tool also requires IE with ActiveX installed. Try the CA virus scanner today.

ESET Nod32 Antivirus

The ESET Online Scanner claims to be the best free virus scan. “A user-friendly, powerful tool, our online antivirus utility can remove malware—viruses, spyware, adware, worms, trojans, and more—from any PC utilizing only a web browser. No installation required. The scanner uses the same ThreatSense® technology and signatures as ESET NOD32 Antivirus, which means it is always up-to-date.” I personally use NOD32 as my personal scanner and have purchased their scanning software. The online version does require IE with ActiveX. Try the free online scan now.

Panda ActiveScan

Panda’s ActiveScan is a robust online virus and malware scanner that goes beyond most conventional scanners. Collective Intelligence (scanning in-the-cloud) that detects malware that traditional security solutions cannot detect. If you create a free user account, you can also create custom scans and access your scan history. And even better, this is one of the few online scanners that will work with Firefox. Try Panda’s ActiveScan today.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

8 Free Online Virus and Spyware Scanners – Scan Your PC Right Now for Free

Without a doubt, this Valentine’s Day is going to be tough on a lot of people. Unemployment continues to rise, investment accounts are taking a beating, and money is just tight all around. That doesn’t mean you have to completely put the romance on hold this year. There are plenty of things you can do to save some money while still enjoying time with your loved one.

The biggest problem about going out is obviously the cost. Even if you aren’t dining at an upscale restaurant, the total cost for what you get is pretty steep. The food itself is obvious, but what about the other expenses? If you want a glass of wine, you better be prepared to shell out some money. You also have sales tax where in many places, if you buy food at the store on your own, it isn’t taxed. And then you have the tip. Whether it’s 15 to 20 percent or more, that clearly adds to the bill. Even a modest dinner  can cost a couple an arm and a leg. Two dinners at $20, plus another $12 for two glasses of wine, $3 in sales tax, and a $10 tip, and you’ve just spent $65 for maybe two hours and some food.

This doesn’t mean you should never go out to eat, because it is good to get out of the house once and a while. But if money is tight this year, there’s no need in going out just because everyone else is. You can recreate a nice dining experience for a fraction of the cost at home.

Food is Relatively Cheap

Compared to what you pay in a restaurant, food is cheap. Now, I’ll admit that if you go to a nice place, you’re getting food that is prepared by a professional that may be nearly impossible for a novice to prepare at home, but this isn’t the case for everything. You can certainly create great tasting meals on your own with a few simple ingredients and pay significantly less.

For example, just last night I made a great and quick meal of fresh jumbo sea scallops, a fresh salad, and some asparagus for two for literally about $16. If you’re a seafood fan, you probably know that large sea scallops are usually pretty expensive at a restaurant, and not always easy to come by. If you wanted a full meal of scallops you’d expect to pay anywhere from $20-$30 at least. But, buy them on your own and you can probably find them for less than $18/pound, even way up here in the midwest where there isn’t an ocean for a thousand miles. 

So, I picked up a dozen large scallops for about $14 the other day at the store. This made about a 6-8 oz portion each for each of us. We also had a large bowl of already prepared salad in the fridge that was made on Sunday. And then I picked up a handful of asparagus sprigs at the store for about $1.50. Just enough for two people.  

Preparation couldn’t have been easier. Salt and pepper the scallops, and sear them in a skillet with some butter and olive oil for about 2-3 minutes per side, and they are done to perfection. The salad was already chopped and ready to go, so it took a minute to put some in a bowl and dress. And the asparagus went under the broiler with some olive oil, salt, and pepper while the scallops were cooking. And there you have it — a gourmet-like meal for hardly more than 15 bucks and about 10 minutes of of prep and cook time. No need to sit in traffic going to and from a restaurant, didn’t blow $70 or more, and the meal was still delicious and satisfying.

How to Do This On Your Own

I know what you’re saying. How can someone who isn’t good at cooking or even know what to buy at the store ever going to pull this off? Don’t worry. You don’t need to be a professional chef or even know your way around the kitchen to prepare a tasty meal and impress your partner. In fact, check back tomorrow for foolproof recipe provided by a guest poster, Jeff Rose. He has created an inexpensive and incredibly simple shrimp pasta dish that is almost impossible to mess up. 

If you don’t already have a bunch of recipes under your sleeve, then it can be a little intimidating when thinking about what to prepare and what you need to buy. But, there is help out there. Springpad now has a very useful date night planner just in time for Valentine’s Day. What this planner does is allow you to create the details of your date night and keep everything in one easy to remember place. Even better, it can provide reminders so you don’t forget an important date. In addition, you can then share the details with someone else. 

While the date night planner doesn’t have the actual recipes, it does allow you to type in your own if you have a recipe already, or even import a recipe from a URL. This is great news for Food Network fans. When you find your recipe over at the Food Network website, go ahead and import the URL. It will automatically pull in all of the ingredients and a link to the directions right on your date night page. 

And if your Valentine’s Day or date night involves more than a meal, you can use the date night planner to search for movies, concerts, restaurants, and more right in your area and add them to your online planner. And if you find it works well for planning your date night, you can use their regular weekly planner that allows you to plan out meals, restaurants, or events for the rest of your week as well. 

Save Money on Valentine’s Day and Beyond

If you try a night in this Valentine’s Day and find it successful, I bet you’ll start spending more time at home. Not only will you save money, but you’ll pick up some useful culinary skills and spend even more time together. Of course, it’s still great to get out on occasion and have dinner with friends, but you can make romantic one-on-one dinners part of your regular routine right at home without breaking the bank.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Save Money This Valentine’s Day by Having a Nice Romantic Meal At Home

If you’ve been reading my site for the past few years, you probably know that I’m not a huge fan of Robert Kiyosaki. Granted, he’s very successful, and has inspired many people, but I don’t feel his advice is very well-suited for the masses. I’ve talked about him in the past, and back in March of 2007 before the stock market really started to crumble, he said that people shouldn’t invest in the stock market if they want to save for retirement. But today, he wrote something over at Yahoo Finance that I do agree with. 

A Little Background

In hindsight, a lot of people would say he was right. He called it… or did he? In that Yahoo article, he was saying the market has been crashing for years even though it was going up, and that things like gold and oil were where you wanted to be. While he may have alluded to the stock market heading down, what about his safe alternatives he was suggesting? Well for one, oil did skyrocket in 2008. But it’s actually lower than the $65 or so a barrel when he wrote that article. Now, it’s hovering around the $40 mark. That’s a 38% loss. Not a much worse than the stock market.Then you have gold. There was a pretty solid gain from 2007 to current levels of around 25%. Of course, just like oil, it’s off from it’s peak in 2008 — down 13%. 

Anyone can be right part of the time. If you throw a bunch of asset classes out there and make a few predictions, you’re bound to be correct with some. So, the stock market went down, and he suggested it probably would. Great. But being on the oil bandwagon would have ended up just as bad. And gold was certainly a better place to be, but even that has been extremely volatile in the past few years, so your timing could make or break that investment. 

Don’t Forget Real Estate

One of Robert Kiyosaki’s primary teachings is in real estate. That’s where he made his money, and how he suggests others to make money. Now, real estate can be a great investment, and also a way of generating income. There’s no denying that. Just like any other type of asset, you can purchase real estate, and after it increases in value, you can sell it for a profit. In addition, you can buy real esate and rent it out to generate income. 

But with the allure of real estate, what’s really happened in the past few years? If you look at some markets, in just two years, property values have dropped upwards of 50%. If you bought a property a few years ago with the intention of selling for a profit, you’re out of luck in most cases. Why doesn’t Kiyosaki talk about how much value has been lost in the real estate market? He’s quick to point out that billions and trillions of dollars that were lost in declines in the stock market, but what about the trillions that have been lost in real estate values? 

Why I Still Agree With Him

I’m actually not writing this to point out flaws or try to convince people that he’s wrong. In fact, I’ve agreed with him in the past. He talks about a lack of financial education, and I can’t argue with that. This is something I’ve talked about on numerous occasions, and it isn’t that people are intentionaly making poor decisions with their money, it’s just that most don’t know any better. Most people have to learn by mistakes they make, but unfortunately, these mistakes can be very costly. 

So today, when I saw Kiyosaki had a new column titled Paying a High Price for Bad Advice, I had to see what he was up to since I usually think his advice is bad for most people. I was actually a bit surprised and found a number of comments that I completely agreed with. Of course, he starts off by criticizing the financial community, 401(k) plans, and most advice out there. But, I’ve come to expect that from him. But if you get through that, you’ll find this:

So my advice is, be very careful whom you take financial advice from — and that includes me. My guidance, after all, does not work for 80 percent of the people.

My advice is for people who are entrepreneurs or professional investors.

This couldn’t be more true. And I’m really glad he pointed out that his advice isn’t for everyone. In fact, it’s only for a few types of people. While he says his advice is only suitable for about 20% of the population, I’d say that’s being a bit generous. Even so, it’s great that he actually comes out and says this instead of preaching like his way is the best way for anyone. Yes, if you are the right kind of person with the apetite for risk, his methods can be very profitable. But they clearly aren’t for the majority of working Americans. 

But it was the final part of the article that really made the most important point:

I am not actually recommending gold, silver, or real estate. Assets do not make you rich. Assets can make you poor if you are not careful. In 1980 gold and silver hit all-time highs, gold hitting $800 an ounce and silver $50 an ounce. So the suckers jumped in and were slaughtered. The same thing happened with real estate in 2004.

If you do not know what you are doing, no asset can make you rich. Ultimately, what makes you rich is your financial intelligence. Your greatest asset is your brain — so take care of it and protect it from bad advice.

This hits the nail on the head. Assets don’t make you rich. You can invest in real estate and find yourself living on the street with ruined credit. You can invest in the wrong stocks and lose everything. You can invest in commodities and find your precious metals virtually worthless. It isn’t what you invest in as much as it’s knowing how and why you’re investing. 

People spend so much time trying to predict what the next good investment will be, or proclaim they have the secret to getting rich, but in reality, it’s little more than a crap shoot. Some assets will always have periods where they outperform, and will always have periods of underperformance. Whether it’s gold, silver, oil, real estate or stocks, it’s easy to look back on history and say, “oh, if I would have invested in X, I’d be in much better shape.” History lessons don’t make you rich. Educating yourself, and making the right choices for you and your own money will.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Robert Kiyosaki Writes Something Else I Agree With – Assets Don’t Make You Rich

As you might expect, writing for this site, not to mention my other site on Financial Planning at About.com, I receive a lot of email from readers. Most of it is good — people thanking me for something I helped with, general finance questions, and of course, a lot of spam. But every so often, I’ll get an email that is so strange it just makes me scratch my head.

I received an email through my other site at About.com, and it basically says I’m a “lost socialist” because I recommend that people should save in their various retirement accounts such as a 401(k) or IRA. It was just something I kind of got a chuckle out of and had to pass along:

I read an article of yours and agreed with everything except putting money in a 401k.  Anything that is run by our Government should not be used to store/accumulate/create(attempt) wealth. If you hold a life insurance license you should be teaching people the IBC concept which covers the need of financing ones personal needs, as well as breaking bad tendencies in personal development. No Government program will succeed, never has and never will.  You should get your head out of the clouds and teach others to do the same, by getting your money out of 401k, IRA,  Roth IRA or whatever other federal program you supply/endorse.  I hope you can educate yourself in a manner that is more productive and become a newfound capitalist rather than remain a lost socialist.

Haha, I don’t even know where to begin. First, it isn’t like these types of plans are government run entities, but are just a few lines of tax code that outline how money should be taxed. A 401k is just deferred compensation, and in most cases, you are free to invest in a number of things, virtually all of which have nothing to do with the government. The plan just says if you aren’t going to be taxed on the money now, you’ll be taxed later. 

The same goes for IRAs. These are private accounts you set up and are free to invest in virtually anything you want. The only say the government has is whether you’ll be taxed now, or taxed later. If this person has such an issue with the government’s hand in taxation of these types of accounts, then I guess they would be against investing in anything at all. I mean, let’s think about it — we have capital gains tax, which is just special treatment of some investment gains. And let’s not forget investing in government securities that may be exempt from state and local taxes, or municipal bonds that might be exempt from federal and state taxes. 

Sure, can the government decide to change the rules as to how assets are taxed in the future, and I’m not all that confident that the plans and tax benefits we see right now will stand the test of time, but I hardly see that as a reason to not participate in these types of plans at all. 

Anyway, I’m all for breaking bad tendencies and educating people to find ways to improve themselves, but I don’t think I’m quite ready to put on my tinfoil hat and proclaim 401(k)s and IRAs as failed government projects and I’m a socialist for recommending them. What do you think?

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Apparently I’m a Socialist for Suggesting That People Should Save in 401(k)s and IRAs

This is a guest post by Tanesha Morgan, writer for Personal Finance Analyst. Personal Finance Analyst is an online community of bloggers dedicated to taking the mystery out of money and helping you to live a happier, more successful life with the money you have.

The Windfall Elimination Provision (WEP) has been around since the Regan Administration, but most people never learn about this provision until it is too late.  The WEP is a provision in the Social Security law that serves to prevent retirees from getting a “windfall” of money from the federal government.  I’ll get back to the term windfall in a moment.  But first… how does this provision work?

The formula used to calculate a person’s social security benefit is based of several factors, but I’ll try to use a simplified scenario.  If a person paid social security taxes for 25 years, then he may be eligible for 90% of his average monthly earning.  However, if that person is subject to the WEP, he’d only be eligible for 40% of his benefits.

Who is Usually Affected by This Provision?

Generally, people who have made career changes will be affected… if that change involves moving from a social security covered position to a non social security covered position.

For example a teacher … public school teachers in many states contribute to a state or local government retirement system and are exempt from paying social security taxes.  But if after 20 years (which is long enough to be eligible for the state or local government retirement benefit), our teacher may decide that he wants a career change.

He moves on to a position which is covered Social Security.  If he stays in that position for about 10 years, then he is eligible for Social Security benefits.

Fast forward to our teacher’s 62nd birthday… he goes down to the Social Security office to apply for his Social Security benefits.  The worker figures out his benefit and then informs him that that benefit is going to be reduced nearly 50% because he is already receiving a retirement pension from another government.

This reduction prevents our teacher from getting a “windfall” of money from the government.  Windfall… I really have an issue with that term.  So instead of him being about to buy 2 loaves of bread with his social security check, he can only buy 2 slices.  **shaking my head**… Windfall?!? Give me a break!

I think this WEP is completely unfair.  If a person has worked long and hard enough to be eligible for two government pensions… then why should he be punished?  He earned the pension… so give it to him.  Two government pension checks do not equate to a windfall… no matter how you add it up.

For those non-Social Security covered state and local government employees, the WEP acts an inhibitor… preventing them from moving into private sector jobs.

Well, I suppose it only inhibits those who are aware.  Most people are not even aware that this provision exists.   Many first learn about it when they apply for their Social Security benefits… which by this time is too late because they have not planned for this benefit reduction.

Just about every year, one or two bills are proposed to Congress that would repeal this WEP… but every year it is either not heard or voted down.

The WEP has been in law more than 20 years, so chances are it will not disappear.  Therefore I thought it was important to alert my fellow financially conscious friends that this provision exists.  Hopefully, you aren’t depending on Social Security to take care of you during retirement, but in case you are… plan ahead and beware of this provision.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

The Social Security Administration’s Windfall Elimination Provision

It is officially autumn, and one of the best fall dishes I can think of is a big pot of homemade chili. It goes great with football, at tailgates, parties, or even just as a family meal that you want to stretch throughout the week. A few months ago I shared a good and cheap potato recipe for summer, but it’s time to shift gears. There are two things that make chili such a great thing: it’s cheap to make a lot of it, and you can easily feed a lot of people, or create multiple meals for your family with just one pot.

What if I told you that you could feed a dozen people, or supply your family of four with multiple meals for three days all for under $25? Well you can, and you can do so even using steak! Vegetarians, you may want to look away now, because we’re going to be putting together a really hearty and meaty chili. If you don’t eat meat, I’m sure you could find something to substitute, and probably even save a good deal of money, but you’re on your own finding a recipe for that.

Anyway, I want to share with you a relatively inexpensive chili recipe, but not just any recipe. This recipe has even won awards at chili cook-offs. No, we’re not talking any national competitions you’d see on the Food Network, but this recipe and slight variations has won some top honors at a number of local events over the past 15 or so years. I stole the basis of this recipe from my dad, but don’t tell him. So, let’s start with the ingredients.

Ingredient List and Cost

• 2 x 28 oz. Cans of Crushed Tomatoes – 2 x $1.59 = $3.18
  
• 28 oz. Can of Brooks Chili Beans – $1.89
• Green Bell Pepper – $0.69
• Poblano Pepper – 0.26 lb @ $2.49/lb = $0.65
• Garlic – 0.10 lb @ $2.99/lb = $0.30
• Sweet Onion – 1.21 lb @ $0.88/lb = $1.06
• 1 lb Roll of Bob Evans Zesty Hot Sausage = $2.50
• Round Steak – 2.96 lb @ $3.48/lb = $10.30
• Worcestershire Sauce
• Tabasco Sauce
• Liquid Smoke
• Chili Powder
• Ground Cayenne Pepper
• Ground Coriander
• Salt and Pepper
• Cumin

These prices were taken from my grocery receipt from last week when making this batch of chili. In total, I spent $20.57 on everything. The only thing that was on sale at the time was the Bob Evans sausage, which was $1.00 off, so if everything was regular price, it would have been around $21.57. You’ll notice I didn’t include prices or add the spices to the total cost. The main reason is that most of these things are typical spices and ingredients that the average kitchen will already have, with the exception of liquid smoke. So, depending on how many of these ingredients you already have, you might not need to purchase any of them, or you may need to spend a few dollars to pick up a small bottle of liquid smoke, Worcestershire sauce, chili powder, etc. In that case, you’d want to add anywhere from a couple, to maybe ten dollars or more to stock your pantry with these items. Either way, most are great ingredients to have on hand for dishes other than chili anyway.

Of course, your region may vary, and you may see prices for specific items significantly higher or lower based on availability or season. In addition, you may also be able to save even more money if you can pick up things on sale, especially the meat. Another great savings tip is to grow and can your own tomatoes. Not only will they probably taste better than from a can, but they are virtually free.

Preparing the Chili

Go ahead and chop those peppers. I don’t go too crazy in trying to get everything uniform since chili is a pretty rustic dish, but you do want them relatively small and manageable pieces. You can just use green bell peppers if that’s all you have, but I really like to use one bell, and one poblano pepper.

The same goes for the onions. Again, uniform size isn’t all that important because they will really soften up after cooking and be virtually shapeless anyway. I really like sweet onions for this for their milder flavor. Of course, go ahead and use whatever kind you have on hand or prefer. In this case, I used one large onion that weighed in a little over a pound. If you’re using smaller onions, you may want to use a few. I’d say after all said and done, it was around 3 cups.

Once you have your onions and pepper chopped, go ahead and mince up about 6 cloves of garlic. Then, throw everything into a big bowl. I have to stress the fact that it needs to be a big bowl, because not only are you putting all the veggies in here, but you’ll also be adding all of the meat and mixing it together for marinating a bit later.

Chop the steak into about half inch cubes. I typically find that round steak comes in big flat slabs that are around 1/2 inch thick anyway, so it’s easy enough to cut it into strips, and then cube it crosswise. As seen above, that is only about 1 pound of the 3 pounds total that go into the mix. It can take a little time to get through all of the chopping for this recipe, but your patience will be rewarded.

Once you add the chopped steak to the big mixing bowl full of onions and pepper, you’ll want to take the roll of sausage and break it up into pieces. At this point you’re not looking to do anything special with the sausage other than make it easy enough to work with. Don’t go and throw the whole log right on top since that will make your mixing job that much harder. Just break it up into pieces with your fingers.

Now comes the fun part! To your meat, onion, and pepper mixture, it’s time to add the seasoning for the marinade. To the bowl, add a few tablespoons of salt. I prefer kosher salt myself, but whatever you have is fine. Then, add a teaspoon or so of black pepper. For me, that’s about 20 turns on my pepper grinder. Now it’s time for the liquid components. We’ll be using both the liquid smoke and the Worcestershire sauce. No exact measurements here, but I’d guess about 4 or 5 tablespoons of Worcestershire and maybe 2 tablespoons of liquid smoke to start. Then, dig in with your hands! You need to thoroughly mix everything together. After you get things pretty mixed, you can determine if you need to add any more liquid. You don’t want a soup, but you want it to be moist and have everything covered. You can see from the image above how mine turned out after mixing everything together.

Now, we wait. Cover the bowl, and throw it in the refrigerator overnight if possible. You really want the flavors to get into the meat since that is the heart and soul of this recipe, but if overnight won’t work, you can probably get by with 4 hours. The longer you’re able to let it sit, the better it will be. I know, the smell that this mixture has created will fill your house with some of the most amazing aromas ever, but you’re just going to have to wait.

Cooking the Chili

After the mixture has had time to marinate, it’s time to begin the actual cooking. You’ll want the largest skillet you have to make this process go as quickly as possible. Remember, we’re working with nearly 4 pounds of meat and about 4 or 5 cups of vegetables. Even with a large skillet, it is impossible to brown everything in one batch. I know what you’re thinking, but don’t even try it. If you cram everything into the pan, you’re not going to speed anything up. It will take even longer to cook, and you’ll end up basically steaming the meat. So, work in batches. I have a 12-inch skillet that I used here and it took 3 batches. Each batch took about 7-10 minutes on medium-high heat. We’re not too concerned if the meat is 100% fully cooked since it is going to go into a pot and simmer for a few hours.

As your meat begins to brown, you’ll find yourself with something that looks like the picture above. Notice the liquid that’s coming out of the meat and veggie mixture. This is good! The last thing you want to do is to cook it so long that you boil this all away. You do want to have it reduce a little bit as to make sure you don’t end up with soup instead of chili, but this liquid that’s been extracted from the onions, peppers, meat and marinade is flavor that you can’t get anywhere else. So, it goes right into the chili pot. It doesn’t get better – great items and top brands at closeout prices at Cooking.com!

Once all of the browned meat is dumped into a big pot, you can add the entire can of chili beans. I insist on Brooks, but you can use whatever brand you happen to have. Then, add almost one entire can of crushed tomatoes. We’ll probably end up using close to the entire two cans of tomatoes, but you want to be careful and go slow with adding them, because it can turn from chili to soup very quickly. Remember, you can always add, but it’s very hard to subtract. So start with that, and give it all a good stir to check the consistency.

This is the consistency you’re looking for, although if you like your chili more chunky or more soupy, go for it. But I like mine to hold up well for dipping, but not so runny that you need to almost drink it.

Once you get the right consistency, it’s time for the seasoning. There is no exact science here, and you can really experiment with what works best for you. But you’ll want to start with about 2 tablespoons of chili powder, about 5 dashes of Tabasco sauce, and a teaspoon of both cumin and coriander. Top it off with a light sprinkle of cayenne pepper. Give it a good stir and see how it tastes. It will probably be pretty bland, and that’s fine. Again, it’s easier to add flavor, but nearly impossible to take it out once it’s in. So, slow and steady is the key here. After adding the first round of spices, add a little more of each, with the chili powder being the primary ingredient, and add just small amounts of the others. Keep doing this until the taste and amount of heat is right for you.

All you have to do now is let it simmer. At minimum, I try to give it two hours, but if you have four, that’s great. This long and slow cooking process really gives the meat a chance to become very tender, and all of the flavors and spices to come together.

Eating the Chili

And now it’s time to serve and eat! I like my chili a number of different ways. As pictured above, just a bowl with some shredded cheese on top is fantastic. Sometimes, if I want to make a little more of a meal out of it, we’ll whip up some corn bread. The chili also works great as a dip. I love to buy those Frito Scoops and just dig in with those. Or, consider topping your baked potato with some chili. The possibilities are endless, so you can either serve it all up to a group at a party, or use it in a variety of ways to feed your family for a few days.

Chili also stores quite well. It will last for about a week in the refrigerator, or if you want, put some in the freezer and thaw it out a month or two down the road. Since it is a bit labor-intensive and makes quite a bit, it doesn’t hurt to save some for eating later when you don’t feel like cooking and don’t want to spend money eating out.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Award-Winning Steak Chili Recipe to Feed a Crowd for Under $25

Are you like me and find yourself needing to wear a suit every day? As you know, it can be pretty expensive to keep up your wardrobe. But, if you act now, you can save some major cash on JoS. A. Bank suits today and tomorrow.

A friend emailed me an email he was sent last night announcing this sale early, and it is a pretty good deal. Buy one suit, and get two of equal or lesser value for free! They have a pretty vast collection of relatively cheap suits around $250, all the way to their premium line running around $1,000, so you have quite a few options to pick from.

I can always use a few more suits because the more I have in my rotation, the fewer visits I have to make to the dry cleaners. So, if you can stop into a local JoS. A. Bank store today or tomorrow, it would be worth it. They also have other good buy two get one free deals on other items, but those aren’t nearly as good as the suit deal. And if you don’t have a store near you, they did update their website to reflect a similar deal for online suit purchases. 60% off all suits. Almost as good as the in-store deal.

Anyway, I’m headed there after work to see what they have and hopefully I can score a few suits. If so, I probably wouldn’t have to buy any new work clothes for another two years. Here is the ad:

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

JoS. A. Bank Suit Sale – Buy One Suit, Get Two Free for Two Days Only