Will You Have Enough Money To Retire?

In honor of Financial Literacy Month, I selected Helaine Olen’s book Pound Foolish: Exposing the Dark Side of the Personal Finance Industry for The Savvy Reader Book Club’s April/May selection. Today’s post is the first in a series of posts I will be writing based on the book.

In Pound Foolish, Helaine Olen writes:

Countless studies have been conducted about Americans and retirement post-2008, but they all say the same thing: we’re petrified and getting more scared by the day. “If we find a consensus about anything in America, this is it,” said pollster Bill McInturff, whose 2011 annual National Voter Survey found almost nine out of ten people worried they did not have enough money set aside. The folks who administer the United States’ corporate retirement plans feel similarly. When Deloitte and the International Society of Certified Employee Benefit Specialists surveyed plan sponsors, they found a mere 15 percent of those queried believed the employees their plans were supposed to be serving were saving enough money for their golden years. (Pgs. 75-76)

Why are we so scared?

The guaranteed pension is becoming extinct:

In the early 1980’s, 62 percent of workers had a pension plan, a guaranteed stipend paid by an employer to an employee when they retired; by 2007 the same number only had access to a 401(k) or similar employee-not employer-based savings plan, where one is expected to put their own money aside to pay for retirement.

Here are the problems with this new 401(k) retirement model:

No guaranteed stipends:
During retirement, my father-in-law had a pension and retirement health benefits in addition to his social security and Medicare benefits. He was content. He didn't travel or live extravagantly, but he did have enough money to give his grandchildren expensive gifts from time to time. When I think of my own retirement I know I won't have that luxury. The luxury of knowing exactly how much money I will have coming in every month. I don’t have a pension, just 401(k) savings and a few other after-tax investments. If a large unknown expense occurs or the market is hit with another huge correction my portfolio could be decimated leaving me without enough money to withdraw an adequate monthly stipend.

Is social security guaranteed?
I also think people, especially those who are under the age of 50, are worried the social security fund will run out of money and either the benefit won’t be available for them or it will be reduced.

We have to be our own investment manager:
I remember the first time I had to allocate my 401(k) contributions. I put 25% into each of the four funds offered. Later, I would put 100% into the fund that performed the best in the previous quarter. Currently, my financial planner selects the funds and provides the allocation for my 401(k) account.

Not all employees have a financial advisor:
In the past, my company’s 401(k) administrator would advise employees to direct their money into a target based fund when they were unsure how to allocate their contributions. After he learned these funds were not the panacea they were marketed to be he stopped giving advice altogether.  He is now interviewing 401(k) administration companies that offer financial planning services. My own financial planner recommends he proceed with caution. It has been his experience that these companies show up for an initial consultation then you never see them again, but your plan still pays the fees.

Retirement calculators don’t account for stock market corrections:
How much will your portfolio actually grow? Many financial planners, including my own, provide retirement worksheet projections indicating huge portfolio gains. My planner uses an earnings assumption of 8.42% and an inflation rate of 3%. Under closer examination I see the 8.42% is a blended rate ranging from cash and equivalents return of 4% to a special sector funds return of 12%.

When I left my last place of employment in 1998 my 401(k) account had a balance of $29,000. Fast forward 16 years and it now has a balance of 55,392.75. That isn't exactly an earnings rate of 12% (the standard rate used in most retirement calculators) or even 9.75% (the average annual return for the S&P from 1927 to 2011). I calculate the return to be less than 5%.  In case you are curious it is currently invested in Thornburg Limited Term Income Class C and Washington Mutual Investors Fund. When I complained to my financial planner about my measly return he reminds me this is just one piece of my entire portfolio which is diversified in totality.

No access to 401(k) plans:
As the popularity of contract workers continues to grow, I am concerned in future years retirees will have even less money saved for their retirement.

Will I have enough money to retire?
As I told my financial planner, I can't afford another major market correction. If my portfolio can achieve an 8.42% return and if I don't incur an unexpected hardship I should have enough money, if things don't go as planned...I have no idea what I will do.

What about you, will you have enough money to retire?

 *Part of Financially Savvy Saturdays on Femme Frugality and Debt Debs*

Esthetician Interview - Q & A with The Esthetic Goddess

After reading Susie of The Esthetic Goddess's post What I Have Learned (So Far) As An Esthetician, I knew I had to interview her about her career.  In the following interview Susie provides an insider’s look into her career as an esthetician while offering advice and tips to help the consumer. Enjoy:  

I have been a licensed esthetician for over 10 years in a wonderful medical spa. When I go to work every day I get to do facials, chemical peels, micro current, skin tightening treatments, and micro dermabrasion. My job is not only fun but rewarding and I love sharing what I have learned in the esthetics field!

What is an esthetician?
An esthetician is someone who works on the skin. This can include facials, waxing, chemical peels, body wraps, make-up and lasers. Estheticians cannot diagnose or treat skin diseases. If I see something suspicious on a client I recommend them to my favorite dermatologist who I know will take good care of them.

What motivated you to become an esthetician?
I started getting chemical peels at the age of 28. I thought it was so cool that just by applying something to someone’s skin you could change their skin tone and texture for the better.

When I was 37 my 17 year marriage came to an end. I had always been a stay at home mom and need a career. I had such a love for esthetics that it was a meant to be for me! We have no esthetic schooling around me so I drove 180 miles a day for school. I was extremely determined to make it happen and it was extremely worth it in the end!

What kind of experience and preparation helped you the most?
I feel like I got an exceptionally education from my esthetics teacher. She was a tough teacher. At first she didn’t even like me. (Hello?! I’m really lovable!) She gave me the hardest clients to work on and I was determined (There’s that word again. It describes me well!) To not let her break me. By the time I graduated her heart softened. She’d seen me working hard and exceeding education wise. She adored me by the end and I her! I owe so much to her. I felt very well prepared when I graduated.

In Illinois where I live Estheticians are required to have 750 hours of schooling. Once you graduate you have to get a state license by passing a written exam. After passing you can go on to more advanced training since you only learn basics in school. Every two years you need to complete 10 hours of continuing educating. This is for Illinois. All states have different requirements for estheticians.

What do you like best about your work?
Helping clients gain confidence! When a client comes to me with sun damage, acne, wrinkles, or whatever the skin problem is. I not only will help treat their skin but teach them what they need to be doing at home to maintain their skin in between the time till I see them again for another treatment. My goal is to always get my client skin looking great without make up.

What is your biggest headache?
Clients who think everything can be corrected in one treatment. It took a long time for their skin to get to the condition it is so it will take time to get it in good shape. Sometimes it can take several months. If you want your complexion looking beautiful for a wedding, reunion, etc. then start working on it a year before the special day.

What are the important personal qualities or abilities necessary for a person to be a successful esthetician?
Patience is a biggie! Not just treatment wise but you must have patience with the client themselves. For many of them they have never been taught to use the proper skin care. Often times I will baby step them into using the correct skin care. Starting with a good cleanser and working from there. This way they will not be overwhelmed with a lot of products at once.

I also think you must always be professional. I have a ton of fun with my clients but I would never bad mouth my completion. Even if a client is telling me of a bad experience they had with them.

Always do your job with integrity. Don’t sell a client a product or treatment you know will not work for them.

For someone who is considering this field, what would be you advice?
Find what you love in this field and specialize in it and never ever stop learning!

What do you wish you would have known before entering this field?
I can honestly say I have no surprises when I enter this field of work. I went into it with my eyes wide open and have never regretted it for a second!

How much can an esthetician expect to earn?
As a licensed esthetician you can make anywhere from $20,000-$50,000. It will all depend on experience and were you are working as well as what field you’re in. Working in a medical spa will pay more than working in a in a hair salon. You can also work from your own home or become a make-up artist. Salary will also depend on geo graphics. Do you live in a small town or big city? There are so many different variables.

Are there any scams or pitfalls to watch out for (phony opportunities, uncomfortable or scary situations, etc.)?
Oh there’s a ton of skin care out there that doesn’t really work. That’s why I will try out products for 3 months when trying a new product line. You cannot expect skin care to change your skin in 2 weeks and if they advertise that I would be very leery of that company. You also have to be careful of salesman selling machines. Lasers, skin tightening, microderm machines or any machine really. They all have limitations but sales people will say anything sometimes to make a sale. Not all sales people of course but they better have clinical studies to back up what they are claiming.

You mention on your blog that this is an ever changing field, what is the biggest change you’ve seen over the years?
There are definitely more machines then ever out now. So many different types of lasers and you can treat everything from sun damage to sagging skin to wrinkles with them. This is why it’s so important to stay on your toes. You have to figure out what really works and how well it will work for your clients.

I am a 51-year old woman with extremely oily yet sensitive skin. I recently noticed fine lines on my forehead and in the corner of my eyes. I have a drawer full of free samples of over-the-counter anti-aging products which I never remember to use. When I do remember, I either end up with a rash or don’t see any noticeable difference. If I were to visit your salon what would you recommend for my skin?
First and foremost we would sit down and discuss everything you are using on your skin and figure out what you should be using. Many times client believe there skin to be sensitive when it truly is not. It may have to do with two products they are using that are interacting with each other or it is an anti-aging ingredient, like retinol or glycolic acid, which when you first start using causes your skin to get red, itchy, or flaky. When used correctly, your skin will get acclimated to the products and all that will stop. After that we would discuss some of the treatments I can do on you to help address these issues. Like a chemical peel to help with fine lines and your oily skin. You may also be a candidate for the Venus Freeze treatment which helps tighten the skin. However I think your best bet is Botox to erase those wrinkles. Botox is a muscle relaxer. It’s perfect for forehead lines and crow’s-feet. I have been getting Botox done for over 20 years and think its da bomb!!

Also, I know a woman who had a skin treatment to remove acne scars from her chin at a prestige skin-salon. She ended up with second degree burns on her face and a settlement of $3,000 to pay her medical expenses. I’m not sure what happened; if a mistake was made with the procedure or if she didn’t understand the potential side-effects. What questions should consumers ask or potential problems should we be aware of before choosing a skin-treatment product or procedure?     
This really is dependent on the type of treatment. I think the biggest thing for the client would be to know how often they are preforming this procedure. What kind of training was involved and what is the reputation of the facility they are planning on going to.

Is there anything else you would like readers to know about yourself, skin care or your career?
If anyone is think of going into esthetics it is an incredible rewarding field and I feel blessed every day to not only have a wonderful clientele but to work in a medical spa with the a fantastic group of people ever!

Where can we find you?
If anyone has any concern about their skin I am always happy to help. I can be found at http://www.estheticgoddess.com.

The Savvy Reader Book Club Selection for Financial Literacy Month

In honor of Financial Literacy Month, I am selecting Helaine Olen’s book Pound Foolish: Exposing the Dark Side of the Personal Finance Industryfor The Savvy Reader Book Club’s April/May selection.

National Financial Literacy Month is recognized in the United States in April in an effort to highlight the importance of financial literacy and teach Americans how to establish and maintain healthy financial habits.

Why Pound Foolish?
Journalist and former financial columnist Helaine Olen has written a book exposing the myths of popular financial advice promoted by Suze Orman, David Bach and others. Here are some of her claims:  

Small pleasures can bankrupt you:
Gurus popular­ized the idea that cutting out lattes and other small expenditures could make us millionaires. But reduc­ing our caffeine consumption will not offset our biggest expenses: housing, education, health care, and retirement.

Disciplined investing will make you rich:
Gurus also love to show how steady investing can turn modest savings into a huge nest egg at retirement. But these calculations assume a healthy market and a lifetime without any setbacks—two conditions that have no connection to the real world.

Women need extra help managing money:
Product pushers often target women, whose alleged financial ignorance supposedly leaves them especially at risk. In reality, women and men are both terrible at han­dling finances.

Financial literacy classes will prevent future eco­nomic crises:
Experts like to claim mandatory sessions on personal finance in school will cure many of our money ills. Not only is there little evidence this is true, the entire movement is largely funded and promoted by the financial services sector.*

In case you are not familiar, The Savvy Reader Book Club is an online nonfiction book club created for the serious reader. I select a nonfiction book early in the month, and then host discussion posts covering my selection throughout the month. There's no signing up just read the book and stop back in to participate in the discussions at your leisure.

*I selected this book because I think it could lead to several interesting discussions. I plan to write discussion posts in both April and May.

Other book recommendations for financial literacy month:
If you are looking for a book to understand personal finance Helaine Olen recommends Personal Finance For Dummies. She describes this book as one of the most, informative, basic and unintimidating books on the subject she's read, and one that appeals to all ages and both sexes.

For a great list of personal finance books see:
Toby Bowers list of 10 Best Finance Books on Badcredit.org.
(Note: Popular authors such as David Bach, Dave Ramsey, Robert Kiyosaki and Suse Orman whose advice is disputed in Pound Foolish are not included on this list.)

Personal finance books I previously covered on this blog:
Susan L. Hirshman's Does This Make My Assets Look Fat?: A Woman's Guide to Finding Financial Empowerment and Success:
This book written for women is a comprehensive introduction to personal finance. Hirshman uses dieting strategies as metaphors for successful money management.  There is good information here, but I thought the dieting references were not necessary and annoying.

Mariko Chang's Shortchanged: Why Women Have Less Wealth and What Can Be Done About It:
In addition to or as a result of the wage gap, women also experience a wealth gap.  Read Chang's book to learn why and what can be done about it. 

Have you read Pound Foolish? If so, what were your thoughts? What book would you recommend reading for financial literacy month?

Please Note, I am an Amazon Affiliate

*Part of Financially Savvy Saturdays on Femme Frugality and The Million Dollar Diva*

Why I Mute TV Commercials

This month, The Savvy Reader Book Club, is reading Debora L. Spar’s book Wonder Women: Sex, Power, and the Quest for Perfection. Today is the first in a series of posts I will write throughout the month inspired by this book.

One of the first points Spar, who is roughly the same age as me, makes in Wonder Women is how the perfume commercials we grew up with in the 70’s shaped the visions of our future adult life. She writes:

They stuck somehow in the public consciousness, or at least in the minds of schoolgirls like me, who simply presumed that life in the grown-up world would be just like the ad for Charlie. We'd have careers to skip to, kids to adore us, and men waiting to douse us with perfume the moment we waltzed through the door. Money and great shoes only sweetened the package.

This wasn't of course, the life that our mothers were living. In 1970, only 43 percent of women worked outside the home. In upper-middle-class white families like my own, the number was slightly higher, hovering by 1974 at around 46 percent. Most of these women worked in "traditional" fields such as teaching or nursing, and they rarely wore stilettos to the job. Yet somehow, girls growing up in that era believed - thought, presumed, knew - that they would be different. That instead of replicating their mothers' suburban idylls of parent-teacher conferences and three-tiered Jell-I molds, they-we-would go the way of Charlie, enjoying children and jobs, our husbands' money and our own. And through it all, we would be smiling and singing, gracefully enjoying the combined pleasures of life. (Pg. 16)

I was astonished. I can't believe my entire life's vision had evolved from a commercial. I vividly remember watching the following Enjoli ad on TV and thinking this is the life I am going to have. I even told my friends quoting the famous line: "I can bring home the bacon. Fry it up in a pan. And never forget you're a man. Cause I'm a woman.

This wasn't the first time entire generations of women were influenced by advertisements.  In Betty Friedan's book The Feminine Mystique, Betty writes how middle-class white women in the 50's and 60's abandoned their careers so they could buy the latest carpet sweeper and cleaning cleanser. A lifestyle perpetuated by magazine editors who restricted the topics and advertisements portrayed in their magazines. Friedman had studied women’s magazines for decades and found the editorial decisions were made by men who enforced “occupation housewife.” Articles and advertisements only portrayed women as housewives. They didn’t want them to have any other ambitions than to be housewives.

Which brings me to The Reading Group Guides discussion questions for Wonder Women.  The very first question asks:

Do contemporary print and electronic publications (advertising, magazines, blogs) persist in creating impossible ideals of beauty, success, and motherhood in the name of commerce, or has this approach been tempered somewhat through the use of more realistic images and languages?

Umm... I  have to say yes.   Even ads like the following Special K commercial which urges women to shut down the fat talk leaves me feeling embarrassed about my weight:

Fortunately, I don't watch a lot of TV and when I do I either fast forward through the commercials or mute them.

What do you think:

Do contemporary print and electronic publications (advertising, magazines, blogs) persist in creating impossible ideals of beauty, success, and motherhood in the name of commerce, or has this approach been tempered somewhat through the use of more realistic images and languages? Can you site examples?

How not to be a victim of a scam or crime

Fraudsters, scammers and thieves seem to be out in full force this time of year.   Here are a few I came across this week along with  preventative tips:

Nicole of The Budgeting Babe was pickpursed (similar to being pickpocketed only her wallet was removed from her purse instead of her pocket) See My Wallet Was Stolen Last Night:
As Nicole dined at a Chicago restaurant two men came in and without waiting to be seated sat at the table directly behind her.  At one point the man behind her got uncomfortably close. Then five minutes later they both got up and left the restaurant without ordering anything. It wasn't until an hour later when Nicole searching for her wallet to pay her bill noticed it was missing.   In the meantime, the thieves had used her credit cards to charge items at a nearby Target.

This story comes a few weeks after this article appeared in our local paper. Elderly women were the target of purse thieves while shopping.  Two men distract a woman by asking her questions, while another man takes the wallet from her purse. 

The article recommends shoppers protect themselves by paying attention to where they keep their valuables.

Don’t walk away from carts with your purse in it and don’t leave valuables on the seats of your car in parking lots. You are a target.

If Nicole could turn back the clock I am sure she wouldn’t hang her purse on the back of her chair hidden behind her coat - she has been doing this for years and feeling falsely protected.  Nicole’s thieves seem to have been only interested in her credit cards and cash, but she can’t be completely certain they will not sell or use her personal information.  In her post Wallet Status, she provides preventative tips that would have helped minimize her loss:

- Clean her wallet after running errands.

- Keep only the credit cards she needs on a daily basis in her wallet. I would also remove checkbooks, medical cards and other IDs such as social security cards.

- Keep her wallet in a zipped compartment.

- Don’t take her full wallet with her when she goes out.  Just take the basics.

Stephanie of Graduated Learning was falsely accused of denting a car:
This is a weird one.  Earlier this week Stephanie tweeted, “Someone at work left a note on my windshield telling me I caused $1k in damage to their car citing dents I’ve had on my car for several years.” 

Initially, I thought this was a random scammer looking to harass and intimidate Stephanie until she gave him money or personal information to make him go away.  This is what professional con artists do – they search for an easy target (a female driving a car with dents) then harass them until they get what they want.  In this case Stephanie’s note guy ended up working at her company, though she didn’t know him personally.  After receiving a second note and leaving him a voicemail letting him know it wasn’t her, he texted her saying he would follow up the next day to better understand the fresh looking damage on her passenger fender and bumper that matched the damage on his car.

Tweeters concerned about Stephanie’s safety advised her not to meet or talk to this guy alone. They recommended she go straight to her company’s HR department and report the incident. She followed their advice and HR/Security ended up telling the guy to stop bothering her.  Hopefully he doesn't contact her again, but what an exhausting experience for Stephanie.

If someone you don’t know falsely accuses or harasses you, don’t hesitate to report them to authorities.  You do not need take this.

Mileage odometer on used car was rolled back:
An acquaintance recently traded-in his Pontiac Bonneville for a vehicle he purchased from an out-of-state dealership he found on Craigslist.  A few days later he spotted his former Bonneville (identified by a scratch he recognized on the advertisement's photo) also listed for sale on Craigslist.  There was just one little problem, his vehicle had had 175,000 miles on it.  This vehicle was advertised as having only 69,000 miles. He was sure it was his former vehicle.  The ad was from a dealership a few miles from the one he had worked with.   

He did not report the illegal odometer reading to Craigslist out of fear of retaliation. He also didn't think the odometer on the vehicle he purchased had been tampered with since he had verified the mileage on free CARFAX Odometer Check.  

The Carfax website provides the following tips to help used car buyers detect odometer fraud:

• Ask to see the title and compare the mileage listed on the title with the vehicle's odometer. Examine the title closely if the mileage notation seems obscured or is hard to read.
• Compare the mileage on the odometer with the mileage indicated on the vehicle's maintenance or inspection records. You may also want to examine the mileage listed on oil-change and maintenance stickers. You may find these stickers on windows or door frames, in the glove box, or under the hood.
• Get a free CARFAX Odometer Check to help uncover potential odometer rollback.
• If the vehicle has a traditional mechanical odometer, check that the numbers on the odometer gauge are aligned correctly. If the gauge's numbers are crooked, contain gaps, or jiggle when you hit the dash with your hand, the vehicle may have been involved in odometer tampering.
• Examine the tires. If the odometer reads 20,000 or less miles, the vehicle should have the original tires.
• Look at the wear and tear on the vehicle – especially the gas, brake and clutch pedals – to see if the wear seems consistent with and appropriate for the number of miles displayed on the odometer.

A company is charged $2500 in late fees and interest on credit card payments made prior to the due date two months in a row:
This company mailed the credit card payments seven days prior to the due date, but their checks did not clear the bank until the day after the due date.  The first month the credit card company refused to reverse the charges and as a consolation offered a higher rebate on future purchases for the next two months. According to the company's next statement this additional rebate had not been put in place and the company was again charged $2,500 in interest and fees.  The company complained and the customer service rep again refused to reverse fees and offered an additional rebate.  Emails threatening to cancel the corporate account have been ignored. 

I came across this informative post from a former customer service rep with a leading national credit card company. The rep provides the following secret to getting fees waived:

If all else fails, RAISE HELL!! Customer service reps are NOT ALLOWED to disconnect (we were diligently & secretly monitored and scored on our performance) a call unless the customer is being verbally abusive and using lots of profanity. So get mad and go on-and-on, the rep will just get sick of hearing you that they'll waive the fee just to shut you up!! Keep in mind that I got 200 calls a day with approx. 80% of them being IRRATE customers. I was starved for satisfied customers that didn't yell or get aggressive.

Tomorrow I am informing the employee in charge of company credit cards to call the credit card company one more time, to be courteous yet persistent. This employee should go on and on and on about how much the company purchases from the credit card company's gas stations each month, how the payments are always made at least seven days prior to the due dates.  She should list every payment made this year giving amounts, due dates and payment dates.  She should inform the rep how upset the company’s owners are and that they want her to cancel the account and most importantly she should talk about the additional rebate the company never received.  All the while repeatedly asking for the fees to be reversed, for $5,000 it is worth a try.

If the company continues to use this credit card company, all future payments should be made on-line.

Have you been the victim of a scam or crime similar to those I've listed above? Do you have any additional preventative tips?

If you enjoyed this post you may also like:
How to Avoid Business Scams
Exposing Unethical Marketing Tactics
How to Avoid Being Conned on a Dating Site

 

Not Understanding Hertz Refueling Policy is a Costly Lesson

We received an excellent deal on a car rental booked thru priceline.com for our recent trip to California.  Hertz accepted our bid for a full-sized sedan at $30 a day with unlimited mileage.

When we arrived at San Francisco’s SFO airport the Hertz rental counter was crazy busy. After waiting in line for at least 30 minutes, our Hertz representative was courteous and attentive.  She recommended we sign up for the Fuel Purchase Option (FPO) which she felt was the best refueling deal. We would purchase a full tank from Hertz at a price competitive with local fuel stations (currently around $4.49 a gallon) at rental.  When we returned the car the fuel tank should be as close to empty as possible, since we’d already pre-purchased a full tank of gas. Despite Clark Howard's advice to never prepay for fuel, the thought of not having the hassle of refueling before our return flight was appealing. Yes we both agreed, sign us up for that.  We were told our vehicle, which had been upgraded to a Jeep Liberty, would be ready in about an hour and we would be asked if we wanted the FPO option at that time.

After only 10 minutes, our vehicle was ready.  We were handed our Hertz contract along with the keys to the Jeep Liberty and were whisked off to the stall where our rental awaited us.  It was only after we had left the airport that I realized we were not asked about the FPO option.  Perhaps that nice Hertz representative had automatically signed us up for it.  Our rental contract said something about fuel and services at $9.29 a gallon. Something was not right, we would have to call and get clarification the next day.

Unfortunately Consumer Cellular, my cell phone carrier, does not have coverage in northern California.  I thought for sure I had checked into this before we left, but after losing cell phone coverage shortly after leaving San Francisco I realized I had not.  We decided to operate as if we had purchased the FPO option and talk to Hertz about the incorrect fuel price in our contract when we returned the car.

We filled up our Jeep Liberty's fuel tank the day before our vacation ended.  We had one final day of sight-seeing in addition to the two hour drive from our inn in Cloverdale to the airport.  We would attempt to return the vehicle with an empty fuel tank.

Traffic through downtown San Francisco on our return trip to the airport was terrible.  Plus, our GPS did not recognize streets that were closed due to construction or those that did not allow for left turns between 7:00 am and 7:00 pm on weekdays. After many GPS recalculations, we arrived at SFO’s Hertz car return with no time to spare.  My husband did a quick check-in as I grabbed our bags.  We reviewed our final Hertz bill as we ran to our terminal.  We were charged an additional $9.29 a gallon for 9.75 gallons of fuel totaling $104.66.  

We barely made our flight.  If we had stopped to refuel the rental car, we would have surely missed it.

Obviously the exorbitant refueling charge is mostly our fault for not understanding Hertz’s policy, but I feel Hertz should have verbally informed us of the refueling option stated in our contract when they gave it to us.  With each trip we take my husband complains more about the “travel” part of traveling and how he doesn’t want the hassle any more. Hertz you are not helping my case.

How about you?  Have you ever misunderstood a vehicle rental company’s refueling policy? Or do you follow Clark Howard's advice and always return your rental with a full tank of gas?

If you enjoyed this post you may also like:

Ann Taylor Loft's Return Policy Sucks
You need your customers more than they need you
The Stress-Free Zone

Ann Taylor Loft’s Return Policy Sucks

I have been slow to buy new clothes since losing weight last summer. Instead I wear either clothes that are too big or my former skinny clothes that are now over five years old.  I wanted to make sure I could keep the weight off before investing money in a new wardrobe. A couple of days before Easter I decided I needed a pair of pants that actually fit.   I found two pair at Ann Taylor Loft, a store I usually don’t shop at because their styles usually don’t work for me.  (Call me old fashioned, but I prefer Mom Pants) See examples:

One pair I wore to an Easter brunch the other I thought would be perfect for summer.  Last week I was all set to wear my new linen trouser pants to work before taking one last look in the mirror.  Argh! The pants looked terrible on me (to be honest they were a questionable purchase when I tried them on in the store, but I thought with a long linen shirt they would be okay). They were a tad tight showing every bulge. Plus, they really were too long.  Deciding I could not be seen in public wearing them; I returned them to the store. 

Ann Taylor Loft's Return Policy:

Unfortunately Ann Taylor’s return policy sucks. After 60 days they only give you the item’s current selling price either in the form of a merchandise credit or as a merchandise exchange. The good news is the credit never expires. 

Why is that good news?
Since I don’t ever plan on ever shopping at Ann Taylor Loft again I am planning on giving the credit to a friend who loves the store.  She will be able to take her time using the credit.

Lesson learned:

I need to educate myself on return and other company policies before making purchases at stores where I don’t normally shop.  Here is a list of links that will help all of us become more educated consumers:

Top Ten Worst Company Policies To Be Aware Of:
Money Crashers has put together a list of crazy company policies that border on rip-offs.

Gift Return Worst Practices: Retail Return Policies That Lose Customers:
I was aware of Best Buy and Target's return policies, but not Barnes and Noble.  Seriously B and N if we forget to include the packing slip when mailing back our return we forfeit both our refund and our purchase.

The 5 Worst Retailer Return Policies:
20 Something Finance lists 5 of the worst.

Kohl's is my Kryptonite
Kohl's actually has one of the best no hassle return policies out there. I am including this post from Stephanie at Graduated Learning because she does a great job showing us how Kohl's gets us to keep showing up at their store. 

Do you have a bad return experience you would like to share?

If you enjoyed this post you may also like:

That dress looks great on you!

Target's Elimination of Farmed Salmon is a smart PR decision

Are Toning Shoes a Marketing Gimmick?

Duped by Pottery Barns Aggressive Marketing Campaign

 

How to Avoid Being Conned on a Dating Site

Okay, all of you single ladies out there—listen up! We live in a scary world…and if you’re looking for love online, it can be even scarier. As great as those couples in the Match.com commercials make online dating out to be, the marketers behind those ads forget to tell us about the side of online dating that isn’t so great…

Because the internet provides such anonymity, it also unfortunately provides a breeding ground for some serious creeps—many of whom use online dating sites to prey on innocent women looking for love. So that your online dating escapades aren’t marred by such an experience, be sure to learn how to spot romance scams, married men, and then arm yourself with tips for safe online dating:

Watch out for romance scams. More and more online singles are falling into the traps of romance scammers—don’t fall yourself! These scammers are infamous for tricking their victims into believing that there is a true romantic connection in order to fraudulently access their money, bank accounts, credit cards, and more. So that you aren’t left with a broken heart as well as broken bank, ask yourself the following questions to help determine if your new cyber romance is legit or not:

• Does the guy seem too good to be true?

• Does he have an online dating profile picture that looks like it fell out of the pages of a magazine?

• Is he working overseas? Possibly in Nigeria?

• Does he profess his love and undying devotion to you almost immediately?

• Is his spelling/grammar atrocious and not aligned with his alleged education or life status?

• Is there a dire situation related to family troubles, business affairs, medical problems, etc. for which he requests money from you?

If you answered yes to any of these questions, you may just have a romance scammer on your hands. Cease all communications immediately, alert the dating site on which you met, and if you have already given money to this person, contact the police.

Watch out for married men. Sadly, the internet is full of men subscribed to online dating sites who just happen to have wedding bands around their left ring fingers. These men tend to seek out online women who are trusting, naïve and can be easily manipulated so that an affair can be carried through. To make sure that you don’t become the target of a lying, cheating, no-good man with a wife, keep an eye out for the following red flags:

• He has no profile picture. This is so his face isn’t out there heightening the chances of him getting caught.

• He asks for your number but won’t give you his. If the guy is married, he can’t have you calling in case his wife answers.

• He won’t share information with you such as his last name, where he works, where he lives, etc.

• He contacts on an irregular basis. This is because married men usually have schedules filled up with other things—like marriages!

• He won’t invite you over or introduce you to his friends and family. A married man obviously can’t have you blowing his cover—if you meet the people close to him, the jig is sure to be up.

Follow online dating safety tips. A great way to safeguard yourself from encountering con-artists like scammers and married men is of course to educate yourself about them. But for further protection and to ensure that you don’t ever find yourself in a dangerous situation on your quest for online love, check out the general online dating safety tips below:

• Never give out personal information. Until you are confident that the guy you are mingling with online is worthy of your trust, never disclose your last name, home address, place of business, phone number, financial info, or any other identifying details.

• Don’t rush into things. No matter how excited you may be to meet an online match in person, it is imperative to take things slowly. Reputable online dating services offer tools such as email, chat rooms and voice chat through their websites to allow singles to get to know each other before meeting—utilize these!

• Plan a safe first date. If your online relationship has reached the point of a face-to-face meeting, that is great—just as long as you hold safety as your number one priority. For the first couple of dates use your own transportation to meet your match in a public place, let a friend know where you’re going, be aware of your surroundings, forgo alcoholic drinks and listen to your intuition!

Guest post author, Ellie Stevens, shares with us her tips on how to avoid being conned when dating online. In addition, Ellie also owns Free Senior Dating Sites where she offers more safe online dating advice for single seniors.

How to spot a bogus diet, beauty products to save your money on and having it all

This week as I continue to recuperate from my bought with bronchitis I am directing you to a few articles/blog posts worth a read:

In today’s USA Weekend: 5 Way's To Spot a Bogus Diet.  A list of guidelines that if followed surely will rule out most of the current diet trends. Bottom line if you want to lose weight you need follow a diet that works towards a sustainable lifestyle and includes healthy eating and exercise.

I’ve wanted to reference: Val's Guide to Buying the Right Beauty Products from the August 2010 issue of O, The Oprah Magazine for some time. Val provides products worth a few extra bucks along with those we should save our money on. I was especially intrigued that she included facials as an item to save money on. She writes:

A facial can be terrifically relaxing and give you a temporary glow. But you don't need one to have gorgeous skin. Better to invest in a daily skincare system (with sunscreen) that exfoliates, moisturizes, and provides antioxidant benefits (like smoother, brighter skin) from vitamins A, C, or E, says Susan Evans, MD, chief of dermatology at Cosmetic Physicians of Beverly Hills. And, says Evans, if you have acne, rosacea, eczema, or hyperpigmentation, the extractions and peels sometimes performed during a facial can actually worsen your condition.

Nicole and Maggie of Grumpy Rumbling’s of the Untenured sick of blog posts talking about how women can have everything, just not at the same time have posted the unapologetic post: Why do I have everything?  And she does have everything. Sometimes all we need is to change our mindset and recognize what we have. I enjoyed how her “everything” included values, internal qualities and people as opposed to material possessions, salary and fancy titles.

'til I'm feeling better...

The Body Project

Motivation for reading
I decided to read Joan Jacobs Brumberg's book The Body Project: An Intimate History of American Girls after reading this review posted on Ava’s blog A Striped Armchair.

What is it about?
Brumberg provides an historical look at adolescent girls’ perception of body image from the Victorian era to the early 90’s (the book was published in 1997). The book’s premise is that increasingly since the early 1900s middle-class adolescent girls and women went from developing their inner beauty to working on their body; so much so that their bodies have became a project.

In the Victorian era, beauty was thought to derive primarily from internal qualities such as moral character, spirituality, and health. (Pg.70)

Compare that to this 1982 New Year’s resolution:

I will try to make myself better in any way I possibly can...I will lose weight, get new lenses, already got new haircut, good makeup, new clothes, and accessories. (Pg. xxi)

Brumberg points out girls are maturing faster and menstruating sooner than they did in the past and that our society currently does not provide a protective support system for them as the mother-daughter bond did in the past.

Although middle-class parents are invested more than ever before in the health and education of their adolescent girls, one of the most intimate aspects of the mother-daughter relationship- menarche and menstruation- had been relegated to medicine and to the marketplace by the time of World War II. (Pg 198)

My Thoughts:
The Body Project is a quick read that brought back my own body project. In my teens and early twenties I spent almost all of my free time shopping for the perfect outfit, styling my hair, applying Clearasil to my pimples and trying to tan my porcelain white skin. Looking back I regret not spending this time doing something more worth while. Reading the book I realized how subtle things like standard-sized clothing and bra sizes had a big impact on how I felt about my appearance. I was a flat-chested, petite skinny teenager who had to shop in the children’s section long after my class-mates had graduated to junior sizes. Brumberg mentions how when the movie “10” with Bo Derek’s perfect “10” body came out boys began rating girl’s bodies on a scale from 1-10. I remember the boys in my high-school doing this. I never learned my score, but was convinced I was a 2 or a 3.

I was also reminded of “the body projects” of the girls I knew; the worst being a college class-mate who water-skied professionally during summer breaks. After one winter, her manager told the 116 pound 5’ 6” girl she was fat and needed to lose ten pounds if she wanted to ski in his shows. This statement ruined her life. She headed down a path of bulimia that she still suffers from today not to mention all of the dental bills she incurred (bulimia wears away the enamel of your teeth).

I have to point out marketing gimmick discoveries. Brumberg informs us:

By 1995, American women and girls were spending more than $100 million on “cellulite Busters,” many of which needed to be applied liberally, at least once or twice a day, at a cost of $60 a tube. Although scientific studies have never supported their effectiveness, thigh creams are major business; and liposuction, a procedure that vacuums fat from the thighs and buttocks has become the most popular kind of cosmetic surgery in the United States. (Pg. 127)

Overall, I enjoyed reading the historical information and the development of marketing trends, but the book was a little dated. There was an entire chapter on body piercing. And I am not sure if I needed to read about the diminishing importance of the hymen. Current topics that I’d like to see included are botox and the effects of social media on girls and young women. I agree with Ava this book would make a great read for a women’s book club. The book brings up so many topics for discussion several of which I already talk about amongst my family and friends. How to talk to our daughters? How much to tell them and when? How to change the focus from a perfect body to a healthy body?

This would be a good book for a mother, teacher or any women/teenager/girl trying to understand how her body became a “body project.”

Searching for the truth

According to Wikipedia a lie (also called prevarication, falsehood) is a type of deception in the form of an untruthful statement, especially with the intention to deceive others.

Why am I writing about this?
Last week, liars or those who lie seemed to be the theme of my week:

First, I was filling out an amended form with one of my company’s salesmen when he told me to lie about the reason for the amendment. Our conversation went like this:

“Why would I write that? It isn’t true.”

“It is easier. I tend to do things the easy way.”

Naturally, I refused and we ended up compromising with me just stating the facts: previous form was submitted in error.

Later that day, another salesman asked me why he hadn’t been paid a commission for one of his sales. I spent thirty minutes researching the deal, eventually coming across an email I had sent his manager. (The sale had cost more than the salesman had predicted and I had asked his manager to approve my commission calculation based on the revised cost.) He had done so and I had paid the salesman his commission last month. When I told the salesman he had been paid he admitted he knew that, but wasn’t happy with the amount he’d received. Then why did he tell me he hadn’t been paid? What was his intention? Did he think I would accidentally pay him again?

Both of these scenarios infuriated me. These salesmen have lied to me in the past and I can guarantee I will think twice before I believe anything they say in the future. As my boss says:

When working with a salesman assume they are lying until proven otherwise.*

Which brings me to the story of the week: 60 Minutes and author Jon Krakauer reported Greg Mortenson the co-author of Three Cups of Tea: One Man's Mission to Promote Peace . . . One School at a Time lied about events in his book and may have benefited from donations to his charity to build schools in Pakistan and Afghanistan.

My first thought upon hearing about Mortenson was thank goodness I had read Citizen Reader's review of the book and had taken it off my TBR list.  My second thought was that lying scum.  One of the reasons I read non-fiction is to learn the truth. If I can't believe a non-fiction author who can I believe? Kim at Sophisticated Dorkiness discussed this topic in her post No, Lies Do Really Matter (Especially in Nonfiction)

Kim gives us her thoughts:

What is not inspirational is nonfiction that plays fast and loose with what has actually happened. It’s laziness to the supreme. Not only has the author been too lazy to research a true story enough to tell it accurately and well, he/she has also not been brave enough to write fiction from what is in his/her heart. Both of those types of writing take more effort than nonfiction filled with lies and distortions, and I don’t want to waste my time as a reader with writing that is lazy.

She asks:

How do you view truth in nonfiction — is alteration of the facts permissible if the story is “inspirational,” if the author admits and explains why, or never at all?

I love Kim’s take:

Nonfiction that plays fast and loose with what has actually happened. It’s laziness to the supreme.

My week culminated with me finishing Matt Taibbi’s book Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America which may be the most eye-opening book about what is going on in this country I've ever read. Griftopia begins with

But in a country where every Joe the Plumber thinks he is one clogged toilet away from being rich himself, we’re all invested in rigging the system for the rich and ends with an expose of Goldman Sachs, perhaps the most unscrupulous player behind the Great Recession, walking away pretty much unscathed and intact.

To answer Kim's question non-fiction needs to be true. In this country where more people can rattle off how many times Lindsay Lohan has been in jail than realize they are being conned by fast talking swindlers and bureaucrats pushing the latest bubble (or charity in Mortenson's case) we don’t need “inspirational” alteration of non-fiction. I can accept some alteration of facts for privacy's sake, but if a story is changed to make it more "inspirational" it is fiction.

*Which reminds me of my golden rule. If we (co-workers) think our salesmen are rude, incompetent, liars, etc., so do our customers.

How to Avoid Business Scams

My friend Sally retired from her job a couple of years ago. She has enough money to pay her bills each month, but has little left over for extras. She would like to find some sort of part-time work to supplement her retirement income. She was approached by a gentleman from her church offering to help set her up with an on-line store. He has his own store that generates a couple hundred dollars each month with almost no effort by him. She asked if I thought this would be a good idea. She did not know the name of the company she’d be working with, but did know they charged a nominal set-up fee. Here are the tips I gave her:

1. Just because you heard about this from someone who goes to your church doesn’t mean the business is legitimate. Either the gentleman who told you about it is being scammed himself or he may know it is a scam and plans on scamming you as well. Pat Kiley one of the master-minds behind the Ponzi scheme Jacquelyn Mitchard and hundreds of others fell for presented himself as a Christian. Also, it is a known fact many scammers type the words “God Bless” on the bottom of their phishing emails in an attempt to appear legitimate.

2. Do your homework. Find out the name of the company you will be working with. Type the name of this company into a web search engine with the word scam behind it. Type the name again with the word sucks behind it. How many web results come up? For example I typed in “Monavie scam” (which I wrote about here) 413,000 results came up. “Monavie sucks” brought 444,000 results. Read what these posters have to say. This will give you a good idea of the experiences others had working with this company.

3. Find out all the costs involved. I imagine the nominal fee presented to you is a teaser charge and more fees are to come. Also, think about how you are going to market this site. A new website doesn’t magically attract customers. You will be competing with both EBAY and Amazon. What will differentiate your site?

4. Remember my rule of thumb when you are presented with a business idea. If the idea is so good why are they pitching it to you? If the idea really generates hundreds of dollars each month the presenters would be off making gobs of money not selling their idea to you.

5. On a side note, any business venture that instructs you to cash a check and wire a portion of the money via western union is a scam. THIS CHECK IS A COUNTERFEIT AND WILL BOUNCE. The money from the fraudulent check will be removed from your account; you will be charged a penalty plus be out the money you wired.

Earlier this year, my company’s bank account and routing number were stolen. The scammers forged this information along with our company name onto fake checks as part of a mystery shopping scam. Shoppers signing up for this job received a check for $2,500.00. They were instructed to cash the check, use $50 of the money to make a purchase at any local Wal-Mart store and wire $2000 via Western Union. They would then answer a couple of questions about their experience and keep the remaining $200 for their trouble.

Luckily for my company, none of these fake checks cleared our account. We received a call from our bank when the first check was presented alerting us to the scam. Our bank put a stop on all checks being presented on this account. Approximately fifteen checks were presented and cashed. I received a handful of desperate callers who pleaded with me to cover the bounced check. They really needed the money. Sorry, but that's not how it works.  One even threatened a lawsuit against our company.

6. Finally, any business idea that sounds to good to be true probably is. Be careful Sally. You can not afford to be scammed.

Shadeism

Thanks to Webb From the Garden Bench for bringing the issue of shadeism to my attention. In my post My 2011 blog project, I mentioned a six year old girl who felt she wasn't pretty because she didn't curl her hair or wear lip gloss.  In the above documentary a four year old girl already believes white skin is beautiful and is unsatisfied with her own brown skin.  The video was originally posted on Vimeo:

It is an introduction to the issue of shadeism, the discrimination that exists between the lighter-skinned and darker-skinned members of the same community. This documentary short looks specifically at how it affects young women within the African, Caribbean, and South Asian diasporas. Through the eyes and words of 5 young women and 1 little girl - all females of colour - the film takes us into the thoughts and experiences of each. Overall, 'Shadeism' explores where shadeism comes from, how it directly affects us as womyn of colour, and ultimately, begins to explore how we can move forward through dialogue and discussion.

The concept of shadeism isn't new to me. I remember reading about colonialism in the Caribbean and how afterwards lighter-skinned people were rewarded with better employment while those with darker skin had to work in the sugar cane fields. It is even mentioned in my most recent read When Everything Changed: The Amazing Journey of American Women from 1960 to the Present by Gail Collins:

It was hard to avoid noticing that Spelman girls were not only extremely well-behaved; they were also, in general, extremely light-skinned. “The best of all possible worlds is that you are light as you can be, you have green eyes, or light brown, and you have long straight hair,” said Gwen Robinson, who was dark-skinned and who found that the male students from neighboring colleges were cruelly dismissive. (Pg. 136)

I even remember my own paternal grandmother preferring her blond fair-skinned grandchildren over her brown-haired olive skinned grandkids. At the time, I thought it was because the fairer children looked more like her side of the family, but now I believe her preference was due to skin color.  She preferred those who looked German over those who looked French. I also remember her telling me to stay out of the sun; don't tan your beautiful white skin.  

In another disturbing video, A Girl Like Me, a mother and her two daughters eleven and six all use skin lightening creams. As pointed out in the above documentary skin bleaching creams are harmful not only to a person's identity, but their skin. Please see the health threats of unapproved bleaching creams which describes the health and skin problems that may result from using these creams.  And most importantly tells us:

The best approach to be able to avoid the unwanted effects of bleaching creams is actually not to use them when it is not essential. Skin whitening ought to be used solely for skin issues.

How do we move forward?
In Shadeism part 2, Nayani Thiyagarajah suggests the first step is coming together and asking questions along with:

- Sharing stories
- Challenging what has been taught
- Changing our way of thinking

And most importantly:

There is strength in each of us our skin tones included and after centuries of trying to change ourselves, trying to blend in and trying to be accepted the time has come to collectively challenge the idea that beauty comes in only one form.

Also, please see Vivianne's post Shadeism - Unraveling the Color Barrier and read about her experience with shadeism.  She asks, "Why do we do this to ourselves and our children? Isn't there enough to battle against already?" and "Let's stop this now and cut the crap out."