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Publication Information: Copyright "The Dollar Stretcher, Inc." 2001. ISSN 1527-2974
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In this issue:

Introduction

A Friendship Loan
by Gary Foreman

Holiday Dinner for Two
by Brenda Hyde

The $140 Phone Call
by Michelle Jones

Helping A Pack Rat Get Organized
by Maria Gracia

Tips, Quips, Quotes & Questions

On www.Stretcher.com This Week

Introduction
by Gary Foreman
gary@stretcher.com

Hello to all my Frugal Friends!

Have you noticed that when someone is grateful and says "Thank you" that they're always smiling? Guess that's because they're happy. Hope that this week finds you both happy and grateful!

All the Best!
Gary

A Friendship Loan
by Gary Foreman

Now that's an interesting question! And it must be an interesting friendship, too.

Before we consider whether it's a good idea, let's take a look at how 401k loans work. A majority of all private sector workers have a 401k plan available to them. They can set aside a portion of their pre-tax wages and put them into the plan. Some companies will also make a matching contribution. The contributions and any earnings are not taxable until the employee takes the money out of the plan. Because taxes aren't collected each year, money in a 401k grows quicker.

Federal law allows for employees to 'borrow' the money from their 401k. Loans are limited to 50% of the account balance or $50,000 (whichever is less). About 80% of 401k plans allow for loans. Some don't because it's expensive for them to keep track of loans and do all the necessary bookkeeping. The plan administrator can charge service fees on loans. Some charge a one time 'origination' fee. Others will charge a fee each year that the loan is active.

Most plans will let you borrow for any purpose you want. But some only allow loans for specific purposes like buying a house.

Since it's a loan, the money needs to be paid back with interest to the 401k plan. By law the interest rate that you pay must be competitive. The plan administrator will set the interest rate.

Generally loan repayment can be scheduled for up to five years. Most plans use payroll deduction for repayments.

Now let's look specifically at George's situation. Should he take out a 401k loan and then lend that money to his buddy? In every circumstance that I can conceive it would be a bad idea. And in some situations it could be a VERY bad idea.

First, if George should have an emergency situation he will not have these funds available. What happens if he has a medical emergency and needs to borrow money from his 401k? If it's already loaned to his friend it won't be there when he needs it.

George could also find himself tied to his current job because of the loan. In most cases loans must be fully repaid immediately if you leave your job. So George couldn't change employers if he wanted to.

Worse than that, if he was laid-off the entire loan would need to be immediately repaid. If George can't do that and he's under age 59 1/2 he'd face a 10% penalty on the outstanding loan. And the loan amount will be added to his taxable income this year. George could find himself in the rotten position of losing his job, being forced to pay taxes on money from his 401k plan that he doesn't even have and needing the money from the plan but not being able to get it from his friend.

Payments could also be a problem. Payroll deduction will continue whether George collects from his friend or not. Should George's friend miss a payment, George could find himself facing a crisis in his own finances. Any loan to his friend should be written up legally with a clear repayment schedule and rates for interest and penalties.

And, even if things go well, George could face a hidden expense. It's very possible that the investments in the 401k could have earned more than the interest rate on the plan loan. Because it's in a retirement account the money that he loses this year will be multiplied by the time he retires. For instance, if George is 30 years old, every dollar he loses today could mean a loss of $32 at retirement.

Finally, George needs to consider whether this is good for his friendship. If the friend is a good credit risk they shouldn't have trouble borrowing the money somewhere else. So there's no need for George's money.

If, however, the friend is being turned down by professional lenders, there's a good chance that George will not be repaid. Generally friends that can't repay loans don't remain friends for long.

If the friendship breaks up because George isn't willing to make the loan, it's not much of a friendship. Certainly not good enough to justify George taking the risks to make a 401k loan.

Finally a word of personal advice. I applaud George's willingness to help his friend. He's to be admired for that. But, more than one friendship has been lost because of borrowed money.

There is one guideline that George could use. If he's willing to lend his friend the money with the expectation that he will NOT be repaid he should make the loan. That means that he's willing to accept that he won't see any of the money again.

It sounds funny at first, but think about it. If he doesn't expect to be repaid he must be in a situation where he can afford to make the loan. And because he doesn't expect to get the money back his friendship won't be hurt if that happens.

Gary Foreman is a former Certified Financial Planner who currently edits The Dollar Stretcher website www.stretcher.com

Holiday Dinner for Two
by Brenda Hyde

While many families celebrate together at Thanksgiving there are also many people that are separated from their family and friends for the entire holiday, or like our family, join them on the weekends before and after. In these cases even a 12 pound turkey is too much for dinner, unless you want to have turkey leftovers for breakfast, lunch and dinner the following days! Never fear, there are solutions and actually it's easy to cook an elegant meal for a two to four people than a big crowd.

Boneless turkey breast is a great solution. They are large enough to enjoy for dinner, and you'll have just enough leftovers for dinner that night or the next day. If you are cooking for just yourself we also have a solution using fresh turkey tenderloin. Whatever your situation, you deserve to have a festive holiday dinner! Be sure to phone your family members or friends on Thanksgiving to chat with them and feel part of the celebration.

Ingredients:

• 1 Bone-in Turkey Breast-about 3 pounds
• slivered garlic cloves
• 1/2 tsp. dried rosemary or a sprig of fresh
• tablespoons honey
• tablespoon Dijon mustard
• tablespoon olive oil
• tablespoon lemon juice
• 1/2 tsp. pepper
• Salt to season

Make small slits in top of breast and insert garlic slivers and the fresh rosemary sprigs. If you are using dried then add it to the honey mixture instead. In a small bowl, combine honey, mustard, oil, lemon juice, dried rosemary if using and pepper. Brush herb mixture over the turkey breast. Sprinkle with salt. Place turkey in baking dish or roaster pan, meaty side up. Roast at 350 degrees for about 60 minutes. Baste every 10 to 15 minutes until done. Cooking time depends on the size of the breast. It should read at least 165 degrees on a meat thermometer that has been inserted into the thickest part of the breast. Allow to set while you finish the preparations, the carving will be much easier.

Ingredients:

• 1 pound baby carrots
• 1 pound small zucchini
• 1/2 cup boiling water
• 1 tsp. salt
• 1 tsp. dried thyme or 2 tsp. fresh thyme leaves
• 2 tablespoons butter

Scrub the carrots and zucchini. Slice the zucchini 1/8 inch thick and leave the carrots whole. To the boiling water add the salt, thyme and carrots. Cover and simmer about 10-15 minutes until carrots are still crisp-tender. Add the zucchini and mix well. Bring back to a boil and cover. Reduce heat and simmer about 5 minutes, until vegetables are tender. Drain and add butter, tossing gently to coat. This makes about 4 servings.

Ingredients:

• 1 cup finely chopped sweet onion, such as Vidalia
• 1 stick butter
• 5 cups coarse fresh bread crumbs
• 1 1/2 tablespoons chopped fresh tarragon
• 1 1/2 tablespoons chopped fresh chives
• 1 1/2 tablespoons chopped fresh flat-leaf parsley
• 2 tsp. salt
• 1 teaspoon black pepper
• 3/4 cup chicken broth

Cook the onion in butter in a large heavy skillet over fairly low heat, stirring, until butter is melted and onion is slightly softened, about 5 minutes. Combine bread crumbs, herbs, salt, and pepper in a large bowl and stir in butter mixture and gently stir in broth. If you like a moister stuffing you may need to add more broth. Transfer stuffing to a buttered baking dish. Cover with foil and bake for 20 minutes with your turkey breast at 350 degrees, then uncover and bake until top is crisp and stuffing is heated through, about 20 minutes more.

Notes: The fresh herbs should be easy to find in your produce section, but you can substitute dried tarragon-using half the amount. I don't recommend dried chives, but you can use the green part of green onions as a substitute. Parsley is always available fresh-if not, leave it out. This makes about 5 cups of stuffing.

Ingredients:

• Single 9" pie shell
• Filling:
• 2 eggs
• 2/3 cup lightly packed brown sugar
• 1 tsp ground cinnamon
• 1/2 tsp salt
• 1/4 tsp ground nutmeg
• 1 14-oz can pumpkin puree (about 1 1/2 cups), not pie filling
• 3/4 cup milk
• Topping:
• 1/2 cup sugar
• 1/2 cup brown sugar, lightly packed
• 1/3 cup corn syrup
• 1-1/2 cups pecan halves

Preheat oven to 425 degrees. NOTE: Do not prick bottom of your pie crust.

Break eggs into a large bowl. Beat until blended. Stir in brown sugar, cinnamon, salt and nutmeg until evenly blended. Then add pumpkin and milk, stirring until blended.

Pour pumpkin mixture into the unbaked pie shell. Bake on bottom rack of oven just until crust is golden around edges, about 10 to 12 minutes. Reduce heat to 325 degrees and continue baking until pumpkin filling seems set in center when lightly jiggled, about 45 to 50 minutes more. Place on a cooling rack while making topping.

In a large saucepan, combine sugars and corn syrup. Place over medium heat and cook, uncovered, stirring frequently, until sugar is completely dissolved, about 3-1/2 to 4 minutes. Remove from heat and stir in pecans. Evenly spoon over warm pie filling. Place in center of preheated broiler rack. Watch carefully and only broil until the topping bubbles. It will happen quickly! Remove from oven and place on cooling rack. Pie can be served warm or at room temperature. Refrigerate leftovers for up to two days.

My suggestion for dining with one for the holiday is to make it elegant but simple. Use your best dishes and glassware, light a candle, and make those phone calls! The previous recipe for Herb Buttered Zucchini and Carrots can easily be cut in half using the same instructions but exactly half the ingredients. The Herb Onion Stuffing can also be cut in half, be sure to use a small casserole dish that will fit the smaller serving of stuffing. Finally, if you know of someone else that is dining alone, consider asking them over for the holiday and ask them to bring dessert!

• 1 pound fresh turkey tenderloin, cut in half lengthwise
• 1/8 teaspoon salt
• 1/8 teaspoon pepper
• 3/4 cup pineapple juice
• 1 tablespoon chopped green onions
• 2 teaspoons chopped fresh sage or 1 tsp. dried
• 2 teaspoons chopped fresh thyme or 1 tsp. dried

Spray large nonstick skillet with nonstick cooking spray. Heat over medium heat until hot. Sprinkle turkey with salt and pepper; add to skillet. Cover; cook 3 minutes. Turn turkey; add pineapple juice. Cover; cook an additional 5 to 8 minutes or until turkey is no longer pink in center. Remove turkey from skillet; place on serving platter. Sprinkle with the green onions, sage and thyme. Cook liquid remaining in skillet over high heat 2 to 3 minutes or until reduced to about 1/3 cup. Spoon sauce over the turkey. You may slice the turkey before adding sauce.

Brenda Hyde is a freelance writer, wife and mom to three. For more holiday traditions, recipes, crafts and ideas visit her at http://seedsofknowledge.com or http://oldfashionedholidays.com

The $140 Phone Call
by Michelle Jones

We all know a penny saved is a penny earned, right? So, with that in mind, I just earned $140 with one phone call to my insurance company! That's a lot of money you know, money that the insurance company would have been happy to collect if I hadn't called to question the charge. Although I don't blame the insurance company completely, it does seem they make a lot more mistakes than they should.

The charge was for my son's visit to the hospital emergency room, actually, that was for over $300, and the $140 was an additional bill that came in for the ER physician. I knew we had already reached our deductible for this child, but for some reason they increased the deductible and charged the $140 to us at 100% patient s responsibility. I let the bill sit on my desk for a few weeks, being too irritated to even look at it.

Later on, I pulled out our benefits package and checked on that deductible. The amount we had already met was for approved in-network providersand the brochure said a higher deductible would be charged for out of network providers, which the ER was (out-of-network) because we were out of town when the accident happened. Next, I looked up benefits for emergency room visits and found that they are treated as in-network charges EVEN if you are out of town and have to go to an out-of-network provider. (Please note that not all insurance companies have this policy, it s actually the first time we've had one that does.)

I figured the insurance company must have rushed this claim out, stamping it with an out-of-network charge, not even looking to see that it was for an emergency. So, I called and brought it to the claim representative s attention and they agreed that it had been processed in error and they would send it through again. Instead of getting another bill for the $140 today, I just received notice from the insurance company that it has been paid. If you only knew how close I came to paying this bill before checking on it!

You have to check every single charge that comes in on your medical bills and insurance statements; as well as your credit cards and phone bills, to verify every single charge. If you find a mistake or something that just doesn't look right, make the call. Over the last two months I have saved almost $200 in duplicate or wrong charges on our medical bills, it adds up to quite a bit of money that could have been lost.

Michelle Jones (a href="mailto:editor@blessingsforlife.com">editor@blessingsforlife.com) is a publishing editor, web site designer, and freelance writer. For more information you can visit her at http://BetterBudgeting.com, or subscribe to the weekly Money-Saving Tips E-zine at http://betterbudgeting.com/msubscribe.html Copyright 2001 by Michelle Jones

Helping A Pack Rat Get Organized
by Maria Gracia

The wonderful, sentimental Pack Rat. So nice. So loveable. So out of space! Pack Rats desperately need more room, but can't bear to part with their stuff.

There are boxes of old records, books since grade school, reams of old, outdated paperwork, various decades of clothing, piles of magazines, calendars and planners more than 10 years old, old board games gathering dust, toys from children that have moved out on their own years ago, plus that horrible artwork from dear Aunt Martha, taking up every last nook and cranny of space. I've known Pack Rats that are literally possessed by their possessions!

The Pack Rat keeps everything--and won't get rid of anything. There's an inconceivable abundance of opportunities to acquire things in our lives.

Here are 10 ideas to help Pack Rats free themselves from clutter and stress:

1. Focus Determining why you're a Pack Rat will help you focus. Are you a sentimental person? Are your items proof of places you've been, work you've accomplished, or how much work you have ahead of you? Does the thought of decluttering seem like such a bear that you can't find the motivation to do it?

2. Don't be held hostage. Beware of being held hostage by your possessions. When your stuff begins taking over your life and you spend all your time climbing over things, looking for missing items, and fretting over where you'll put your next treasure, you are wasting precious time that you can never buy back.

3. Help your kids If your children pick up on your Pack Rat style, they will have the same problem when they're out on their own. If you begin to get organized now, your children will see how important it is and hopefully, follow your lead.

4. Recognize clutter. As a rule, if you don't use it or enjoy it, then it's nothing more than clutter. If you don't know what it is, it's clutter. If it's too nice to use, it's clutter. Toss it or give it to someone who will use it and appreciate it.

5. Make it a tossing game. Get your family into the De-cluttering Game. Make a party out of it. Play music, have refreshments, Toss-Toss-Toss. Have a pending reward ready, such as a big family dinner at a favorite restaurant after you've significantly reduced your clutter!

6. Make a someday box. If you save things you feel you may use someday, create a May Come in Handy Someday box. Place those things inside and when the box is full, discard something before you put anything else in.

7. Use the rotation box system. Use the Rotation Box system. Instead of displaying everything you like at once, display a little bit at a time. Keep the rest boxed up in storage. Every few months, put a few of these things in your box and take a few other things out for display.

8. Fix it or ditch it. Have you ever put aside broken items with the expectation that you'll get them fixed one day? Chances are, these items are still where you left them and they're still broken. Immediately schedule a date on your calendar and repair them when the date rolls around or toss the items right now while you have it on your mind.

9. Take a photo. Take photographs of possessions you don't want to forget, but don't have the space for. Save the photos in a scrapbook or photo album. Keep the memory, rather than allowing the memory to take up space.

10. Avoid going half-way. Avoid the Halfway-house Syndrome. You know. That's when you put things aside that you're not sure what to do with. These temporary storage areas almost always turn into permanent storage. Force yourself to make a decision whether to keep or toss.

Free Idea-Pak and E-zine filled with tips, ideas, articles and more to help you organize your home, your office and your life at the Get Organized Now! Web site! Copyright 2001 - by Maria Gracia - Get Organized Now! www.getorganizednow.com

Tips, Quips, Quotes and Questions

I would give her a savings bond. A $50 bond costs $25 and is usually worth the full amount if held 5 years. www.savingsbonds.gov
Karen C
in TX

More on giving money gifts, including how to help pay off credit card debt at www.stretcher.com/stories/01/011119a.cfm

There are tons of things you need to watch for! I am from Montana. There are lots of people stuck in Montana with nothing who are scammed into buying "dream acreage." They sell everything, quit their jobs and then find out there is: no water; no access; no JOBS; no electricity; no phone; an oil well sitting on it; etc.
Please don't be tricked! Definitely find a professional to assist you, but also be sure to visit the area in person. Talk to multiple people in the area about the economy, the neighbors, the funny smell, etc.
Courtney

more suggestions on how to get a good deal buying rural property at www.stretcher.com/stories/01/011119b.cfm

In your article you mentioned plastic, blankets, etc., to keep out cold air, but not window inserts. You can make them out of 1/2 inch or 3/4 "blue board" from the hardware store, cut to fit inside the window. You can leave them plain or decorate them with fabric or wall paper so that when viewed from the inside or outside they look nice. During the day, they can be removed or stored. I heard about something similar years ago, but recently when I saw blue board I came up with the modification. I am covering mine with inexpensive muslin.
Katrina

you'll find more suggestions on winter heating in the "Energy" section of our library www.stretcher.com/menu/topic.htm

I made microwavable heating pads for many of my older relatives one year. I purchased scraps of 100 percent cotton at the fabric store with nice designs on them. I sewed them into rectangles, put a couple of cups of long-grain white rice inside, and made a "pillowcase" for each one that can be removed and washed. It was very easy and cheap, and I personalized them by choosing a pattern that I knew each recipient would like. For instance, I found some fabric with Star Trek's Enterprise on it, and made that into heating pads for my dad and brother, who love Star Trek. It's important to use all-natural fabrics, though, since synthetic fabrics will melt in the microwave.
Kate

Please send your tips to Tips@stretcher.com If we use your tip or reply to 'Can You Help' in any of our publications we'll send you the next three issues of our print newsletter as a 'thank you'.

On www.Stretcher.com This Week

Friendship Loan
by Gary Foreman
Should he loan the money to his friend?
http://www.stretcher.com/stories/01/011119c.cfm

Credit Scoring 101
Do you know how to check your credit report?
http://www.stretcher.com/brm/01/011115.htm

Simple Autumn Pleasures
by Deborah Taylor-Hough
Holidays are a wonderful time to be home
http://www.stretcher.com/stories/01/011119d.cfm

Quiz
What's your holiday gift buying style?
http://www.stretcher.com/brm/01/011112.htm

The $140 Phone Call
by Michelle Jones
A few minutes of time paid off big
http://www.stretcher.com/stories/01/011119e.cfm

Helping A Pack Rat Get Organized
by Maria Gracia
They just can't bear to part with their stuff
http://www.stretcher.com/stories/01/011119f.cfm

Holiday Dinner for Two
by Brenda Hyde
What to do when you don't expect a crowd
http://www.stretcher.com/stories/01/011119g.cfm

101 Car Games
by Kathleen Bieke
Make travel time a fun time!
http://www.stretcher.com/stories/01/011119h.cfm

Giving 'Money' Gifts
Would you like to help someone get out of debt or begin an investment program?
http://www.stretcher.com/stories/01/011119a.cfm

Where's the best place to keep emergency funds?
http://www.stretcher.com/brm/01/011114a.htm

Get Rid of PMI Early
Sometimes, homeowners can drop private mortgage insurance earlier than the normal rules allow
http://www.stretcher.com/brm/01/011115a.htm

Buying Rural Property
What's the catch?
http://www.stretcher.com/stories/01/011119b.cfm

Specialty Banks
Banks for pet lovers, golf nuts and more
http://www.stretcher.com/brm/01/011112a.htm

Pay cash or finance a car?
http://www.stretcher.com/brm/01/011112b.htm

Refinancing your mortgage after a divorce
http://www.stretcher.com/brm/01/011112c.htm

Lock In
Student loan rates at record lows
http://www.stretcher.com/brm/01/011113.htm

What's the better investment -- buying a house or land?
http://www.stretcher.com/brm/01/011113a.htm

Recession Blaster
30 simple ways to s-t-r-e-t-c-h your money
http://www.stretcher.com/brm/01/011114.htm

Find It Fast
Time is not on your side when it comes to your credit report
http://www.stretcher.com/brm/01/011115b.htm

No mortgage?
Then pay other debts
http://www.stretcher.com/brm/01/011115c.htm

Mandatory IRA distributions on multiple funds
http://www.stretcher.com/brm/01/011113t.htm

Plan for taxes along with the wedding
http://www.stretcher.com/brm/01/011114t.htm

Cafeteria plans take bite out of tax bill
http://www.stretcher.com/brm/01/011114w.htm

Rules on rolling over IRAs for a better return
http://www.stretcher.com/brm/01/011115t.htm

Exterior Mold
The Natural Handyman
Sometimes finding the right answer depends on asking the right question
http://www.stretcher.com/stories/01/011119k.cfm

Plummeting Gas Mileage
Ask Bob: The Auto Answer Man
What's causing it to drop?
http://www.stretcher.com/stories/01/011119m.cfm

Readers' Tips
http://www.stretcher.com/stories/01/011119t.cfm

Home or Small Business

Challenging Times for the Entrepreneur
by Anne-Marie Rennick
How to keep your spirit strong in challenging times
http://www.stretcher.com/stories/01/011119j.cfm

How to recover an unpaid debt
http://www.stretcher.com/brm/01/011115d.htm

Sharing Company Secrets?
Is your old PC telling tales?
http://www.stretcher.com/brm/01/011112e.htm

Undeterred
Start-up tips for an undaunted dot-commer
http://www.stretcher.com/brm/01/011113e.htm

Your Reputation
For employees, company reputation outranks compensation
http://www.stretcher.com/brm/01/011114e.htm

Measured Success
Hitting the right notes on a music-related home business
http://www.stretcher.com/brm/01/011115e.htm

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