College scholarship

Need money for college? If you’re a credit union member, you may be eligible for one of the Leonard E. Wedel Scholarships offered by LifeWay Credit Union. Winners will be chosen based upon their financial need, academic record, and service to their community, school and church. Information packets will be available April 1 and must be returned by Friday, May 27.

Please call us at 615-251-2089 if you have any questions.

New safety seat advice makes sure kids are safe

The American Academy of Pediatrics and the National Highway Traffic Safety Administration recently established new child safety seat advice for parents (health.yahoo.net March 21).

Both organizations recommend that children riding in cars should remain in rear-facing child safety seats until their second birthday, or until they reach the maximum height and weight for the car seat. The new guideline is based on research indicating that children younger than two years of age in rear-facing safety seats are 75% less likely to die or receive serious injury in a crash (aap.org March 21).

This updates previous advice from pediatricians that children should be placed in front-facing car seats after their first birthday (chicagotribune.com March 20).

The medical group and federal agency also suggest parents use booster seats for older children who've outgrown child safety seats until they reach a height--typically 4 feet 9 inches--where a vehicle's standard shoulder-lap belts fit the child properly (nhtsa.gov March 21).

Consider these recommendations--in addition to reviewing the new guidelines--to ensure that child passengers are safe while riding in your vehicle:

• Purchase new. Buying new ensures the car seat or booster seat is damage-free. It is often hard to tell if a secondhand seat has been damaged from misuse or a previous accident. Unseen damage could compromise safety.
• Check recalls. Be certain the seat model you own or plan to buy hasn't been recalled. Check with the National Highway Safety Administration on the Web for a list of booster seat and child safety seat recalls. Contact the manufacturer immediately if you find out that the model you purchased has been recalled.
• Consider options. Buying a safety seat that converts into a carrier or booster seat may help you avoid the future expense of multiple safety devices. Remember to check the device's instructions or contact the manufacturer to make sure the device is approved for double duty.
• Proper installation. A child safety seat is only fully effective when correctly installed. Have your seat professionally installed or visit a police or fire station to have your child safety seat checked for proper installation. Some Red Cross chapters perform this safety check as well.

Disaster relief tips: options, warnings

Resist the urge to open your wallet too quickly following disasters, like the ones that have devastated Japan, if you want to direct your charity dollars where they yield the greatest benefit. Take a little time to check out the charity so you give to the good ones and steer clear of the scams.

Con artists exploit disasters, setting up shop quickly on the Internet and preying on your desire to provide short-term emergency aid and long-term rebuilding efforts.

Watch for these signs of charity scams:

• "Cash, please." Never donate cash if you can help it. Write a check to the charity--not to the person asking for the donation--so you have a record of your donation. Ask for a letter from the charity with donation amount and date for tax purposes.
• "We need your account number." Legitimate charities don't ask for this.
• "About 10% goes to the charity, and 90% goes to administrative costs." This is not a good use of your money. You may choose to donate to charities that spend 20% or less of your donation on administrative costs. The less spent on administrative costs, the better, so ask for percentages. If they just say, "80%/20%," persist and ask which of those numbers is for administrative costs.
• "We're a registered charity." Ask for a registration number, then check with the Better Business Bureau Wise Giving Alliance at 703-276-0100 or give.org for more information.
• "We're sending you this e-mail request for a donation." Be suspicious--most legitimate charities don't send e-mail requests unless you've donated before. Avoid clicking on links in solicitations for money, even if they appear to come from familiar organizations.
• "You don't need to check us out--we're legitimate." No legitimate charity will say this. Besides the Wise Giving Alliance, other charity watchdogs include the American Institute of Philanthropy at charitywatch.org, Charity Navigator at charitynavigator.org, and GuideStar at guidestar.org. Or, donate through a local fundraising federation such as the United Way (Consumer Reports Money Adviser February).

Here is a partial list of reputable organizations involved in Japan's disaster relief efforts (abcnews.go.com March 12 and huffingtonpost.com March 11):

• Doctors Without Borders (doctorswithoutborders.org);
• Global Giving (globalgiving.org); text JAPAN or 50555 to donate $10;
• International Medical Corps (internationalmedicalcorps.org); text MED or 80888 to donate $10;
• Operation USA (opusa.org);
• Red Cross (redcross.org); text REDCROSS or 90999 to donate $10;
• Salvation Army (salvationarmyusa.org); text QUAKE or 80888 to donate $10; toll-free 800-SAL-ARMY [725-2769];
• Save the Children (savethechildren.org/japanquake); text JAPAN or 20222 to donate or toll-free 800-728-3843; and
• World Vision (worldvision.org); text 4JAPAN to 20222; toll-free 888-56-CHILD [24453].

Keep cost of caring for elderly parents under control

More than 40% of caregivers spend about $5,000 each year caring for a loved one; many individuals receiving care are parents of baby boomers (USAToday.com, Feb. 28).

If you're a caregiver, here are some ways to help cut costs that won't compromise quality of care:

• Seek government help--Your local Area Agency on Aging can suggest programs in your state that can help with the financial burden of caregiving. Fifteen states offer a Cash & Counseling program for low-income seniors who are eligible for Medicaid. The program helps seniors pay for in-home daycare, including care that family members provide.
• Pay family members for caregiving--More than one-third of caregivers have been forced to quit jobs, take early retirement, or reduce work hours because of their caregiving commitment. Consider paying yourself or another family member out of your parent's savings for the care you're providing. This "salary" can help offset lost income. To avoid disputes with other family members, create a contract that outlines the terms of the agreement.
• Hire outside help--A survey by the Hartford Group, Hartford, Conn., shows that 80% of boomer caregivers feel moderate to high levels of stress associated with caregiving. Younger boomers, between 45 and 54 years old, appear to be shouldering the greatest burden; half report that they worry about the impact that caregiving has on their jobs. Hiring someone to provide some care allows you to provide better care for your parent when you're fulfilling your caregiving role.
• Claim your parent as a dependent--You may be eligible to claim one or both of your parents as dependents, based on how much support you provide. To do this, your parent's income, excluding Social Security, must be less than the amount of the personal exemption. For 2010, the personal exemption was $3,650; for 2011 it's $3,700. You also must provide more than 50% of your parent's financial support to qualify. For more information, visit irs.gov.
• Deduct your parent's medical expenses--If you can't claim a parent as a dependent, you might be able to deduct medical expenses. To qualify, you must provide at least 50% of your parent's financial support; your parent doesn't have to meet income restrictions. The deduction is limited to medical expenses that exceed 7.5% of your adjusted gross income. Qualified expenses include in-home health care, the cost of a nursing home, dental care and prescription drugs.
• Consider your own long-term care--After seeing firsthand what being a caregiver means financially and emotionally, many boomers are making arrangements for their own long-term care. Paying for long-term care insurance policies isn't easy for families that also are saving for retirement and children's college expenses. About 20 million middle-age Americans are stuck between conflicting sets of responsibilities, according to stltoday.com: caring for their own kids--and their parents. You also can start preparing for your own long-term care, without draining your money, by drawing up a living will and a health-care proxy.

Follow fill-up tips as gas prices rise

You've probably felt the sting of climbing gas prices in recent weeks. The national average is $3.38 a gallon--19 cents more than last week and 68 cents more than one year ago, according to the Department of Energy.

Fortunately, you can take steps to lessen the financial burden. Use these strategies to save money on gas, even as prices soar.

• Use online tools and apps. Websites like GasBuddy.com compile gas prices in your neighborhood. Type in your ZIP Code to find the station with the lowest price near you. GasBuddy also offers mobile apps for the iPhone, Android devices, and Windows phones (ABCNews.com Feb. 28).
• Avoid brand names. Prices often are cheaper at independent stations that are not affiliated with oil companies or gas brands, because they buy gas from more than one company (Bankrate.com Feb. 25).
• Don't fill up near the highway. It's all about location: Gas stations near freeways or highways often demand higher prices for their convenience. To find a lower price, put some miles between you and the highway before you fill up (WalletPop.com Feb. 25).
• Take advantage of reward programs. Some grocery stores partner with chain gas stations to offer fuel discounts to shoppers. And if you belong to membership-based stores, like Costco, you also may be able to find cheaper prices if you fill up at their stations.
• Use cash. Find out if any gas stations in your area accept cash only or offer a cheaper price if you pay with cash. You often can find a lower price at these stations than you would at one that charges the same price for paying with cash or a credit card.

Money-saving tax tips for filers

Before filing your tax return this year, become familiar with important changes since tax year 2009. Then take advantage of every credit, deduction, and free resource available (The New York Times Feb. 18).

Last year, millions of taxpayers didn't understand that they needed to complete Schedule M to claim the Making Work Pay tax credit. Luckily, the Internal Revenue Service (IRS) gave eligible filers the credit anyway, but don't count on that going forward.

First stop: IRS Publication 17, which has a link for "What's New for 2010." And there are plenty of other resources to guide you through the tax-filing process, including websites, tax software, and free local assistance.

Here are some suggestions:

• Find all tax deductions. A deduction reduces the amount of your taxable income. Common examples include mortgage interest you paid, charitable contributions, and medical and dental expenses that exceed 7.5% of your adjusted gross income. For more information about tax deductions for the 2010 tax year, visit irs.gov or efile.com/tax-deduction.
• Don't overlook a single tax credit. A credit is better than a deduction because it cuts your actual tax bill. Common examples include the child tax credit, dependent care tax credit, savers credit, and first-time homebuyer tax credit. For a list of family, work, and home-related tax credits, visit efile.com/tax-credit/federal-tax-credits.
• Let go of some tax breaks. Tax breaks that disappeared for tax year 2010 include the exclusion from income of up to $2,400 in unemployment compensation, which means that all 2010 unemployment payments are taxable; and a deduction for state or local sales or excise taxes on new vehicle purchases (unless you bought the vehicle in 2009 after Feb. 16, but you paid the tax in 2010). And the first-time homebuyer's credit is available only if you signed a contract before May 1 and closed before Oct. 1, 2010 (New York Times Feb. 18).
• E-file if possible. Visit irs.gov for options. Or you can e-file with commercial tax software or through a paid tax preparer. Shop around, and take into account the filing costs for both federal and state returns.
• E-file with Free-file if you're eligible. If your income is less than $58,000, visit irs.gov for information about 20 tax software companies that make their products available for free; some also support state tax returns for free. If you make more than $58,000 and are comfortable preparing your own tax return, consider Free File Fillable Forms at irs.gov/freefile.
• Use direct deposit. This is the fastest, safest way to receive your tax refund.
• Get free help from VITA. The Volunteer Income Tax Assistance program offers free tax help to low- to moderate-income taxpayers, generally with incomes $49,000 and below. Certified volunteers are at VITA sites throughout the community—neighborhood centers, senior centers, libraries, schools, malls, and many credit unions. Most offer free e-filing. Call 800-906-9887 for the nearest VITA site.
• Visit Taxpayer Assistance Centers (TACs). If you don't think your tax issue can be handled online or by phone, TACs provide face-to-face assistance through April 9. Visit irs.gov/localcontacts to find the TAC closest to you.
• Use Taxpayer Advocate Service (TAS) as a last resort. The TAS helps taxpayers resolve problems with the IRS. It's free and confidential after you've tried to resolve the problem through regular IRS channels. Call 877-777-4778.

Finally, plan ahead. The average refund last year was $3,003. Rather than giving an interest-free loan to Uncle Sam, file a new Form W-4 with your employer and have less money withheld from your salary, putting more money in your pocket throughout the year.

'Brady Bunch' families face financial challenges

-Blended families are the new normal. Divorce, remarriage, and living outside conventional marriage have changed families and created an expanded network of step relatives.

With more than half of all marriages ending in divorce and more than 40% of all Americans having at least one step relative, it's imperative to talk about money and how you'll handle it before entering into a new marriage (USAToday.com Feb. 6).

To keep your relationship sane and decrease money problems:

• Find common ground--Talk about money before blending families. Decide if you'll have separate or joint accounts, or both, as well as who'll be responsible for each child's expenses. What contributions can you count on from ex-spouses; what financial commitments have you made to ex-spouses?
• Discuss money issues with family members--Your children might have to change habits or get used to new rules pertaining to money, but including the kids in discussions about finances early on will lessen future problems.
• Plan ahead--If you're remarried and you and your new spouse each bring children to the new marriage, discuss how you'll pay for your children's college education. Will you both chip in for each child or will you be responsible for paying for only your own children? Will your former spouse, and perhaps the child's grandparents, play a role?
• Check insurance policies and wills--Read policies carefully to be certain that all family members are covered the way each parent wishes. It's just as important to check your wills to make sure the wording includes all children, both natural and adopted.
• Consider estate planning--Meet with an attorney and make sure all kids from past marriages are considered. This includes looking at college educations, inheritances, and even custody issues. Determine who will be responsible for your children if you die.

Act to lower your credit card rate

With the national average interest rate for credit cards reaching a record high of 14.73% (creditcards.com Feb. 2), you'll want to make sure you're getting the best deal possible.

The Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 restricts issuers' ability to raise rates, but whenever they can, you can be sure that many will. Here's some advice from the Credit Union National Association's Center for Personal Finance for getting the lowest rate possible on a credit card:

• Get a card from a credit union. A credit union credit card typically has a significantly lower interest rate than a bank credit card. For example, right now the national average rate for a high-limit "platinum" card is 2.34 percentage points higher at a bank than at a credit union ( Informa Research Services Inc. Feb 6).
• Use your card for convenience only. The very best way to control credit card costs is to use your card for its primary advantages only--as a convenient and secure way to make daily purchases or cover emergency expenses. Then always pay off your balance as soon as possible--preferably within the grace period, when no interest charges apply.
• Use a different kind of credit. Suppose you're buying a big-ticket item, such as a computer, or paying for major car maintenance. Rather than use your expensive credit card, consider "closed-end" credit, a loan with a set number of monthly payments. A personal installment loan, even if it's unsecured--that is, not backed by collateral--will have lower finance charges.
• Tend to your credit score. The rate a credit card issuer will offer you is highly sensitive to your credit history and the score derived from it. The credit score is the lender's estimate of the risk that you won't repay your card balance. That's why you'll want to do everything you can to demonstrate that you're creditworthy, such as by paying all your bills on time, without fail.
• Use a secured card. A credit card backed by money you've set aside in a special account is a good way to start improving a weak credit score. Your lender will give you a better interest rate because it can always take money from your account if you don't make your payments. But if you do, your credit record will improve and, over time, so will your score and your future cost of credit.

Don't pass up retirement tax credit

Hard to believe, but as many as 88% of taxpayers who could benefit from it don't even know about the Saver's Credit.

Officially named the Retirement Savings Contribution Credit, the 10-year-old saver's credit was designed to encourage low- to middle-income workers to save for retirement. But a survey released mid-January by the Transamerica Center for Retirement Studies of 3,598 full- and part-time workers with incomes of less than $50,000 indicates that as few as 12% of those who could benefit from the credit are aware of it (TheStreet Jan. 17).

One possible explanation for low awareness is that tax filers must use Internal Revenue Service (IRS) Forms 1040A, 1040, and 1040NR to claim the credit; it is not available if you file using Form 1040EZ. Thus, lower- to middle-income workers, those most likely to use 1040EZ and eligible for the credit, may miss it or remain unaware of it.

An eligible worker can apply the credit to the first $2,000 of voluntary contributions to a 401(k) or similar employer-sponsored retirement plan or individual retirement account (IRA). There are credits of up to $1,000 for single filers and $2,000 for married couples. The saver's credit is available to workers aged 18 years and older who contributed to a company-sponsored retirement plan or IRA in the past year and are:

• Single or married filing separately, with adjusted gross income (AGI) of up to $27,750 in tax year 2010 or $28,250 in 2011.
• Head of a household with AGI of up to $41,625 in 2010 and $42,375 in 2011.
• Married and filing a joint return with AGI of up to $55,500 in 2010 or $56,500 in 2011.

You may not claim the saver's credit if you're a full-time student or claimed as a dependent on someone else's return.

If you use tax preparation software, look for prompts that refer to the saver's credit, retirement savings contributions credit, or credit for qualified retirement savings contributions. If you work with a professional tax preparer, make sure he or sure is knowledgeable about the credit. And if you prepare your own forms, complete Form 8880 to determine the credit rate and amount; transfer that amount to the appropriate line on Form 1040A, 1040, or 1040NR.

Do falling home prices signal time to buy?

Home prices in many of America's largest cities continue to fall. The recently released Standard & Poor's/Case-Shiller home price index reports average home prices slipped 1.6% in 20 U.S. cities during November. Prices in eight cities sank to their lowest levels since 2006 and 2007 (nytimes.com Jan. 25).

These circumstances could mean it's an excellent time to buy a home. Here are three things to consider before taking the plunge:

1. How do you want to spend your extra money? Once you buy a house, you have to maintain it. You may need money you previously spent on life's little luxuries to repair a leaky roof, fix a broken window, or replace light fixtures.
2. Would you benefit from tax breaks? Owning a home means you can deduct mortgage interest and property taxes you pay throughout the year from your taxes, but you must itemize these on your tax return. You benefit from tax breaks afforded to homeowners only if itemized deductions will be greater than the standard deduction.
3. Can you afford a monthly house payment? The 26/38 rule can help you identify how much house you can afford. A monthly house payment should be less than 26% of your monthly gross income and includes your mortgage, property insurance, and property taxes. Your total monthly debt obligations—including house payment, car loans, and student loans, for example—shouldn't exceed 38% of your monthly gross income. This standard has some wiggle room; talk to your credit union home loan specialist for guidance.

Find a qualified tax preparer

If the thought of preparing your own taxes makes your head spin, you're in good company. The National Taxpayer Advocate office, within the Internal Revenue Service (IRS), reports that 60% of taxpayers pay someone else to prepare their returns (WalletPop.com Jan. 14).

Enlisting the services of a tax preparer can be convenient, but research before deciding which one to trust with your taxes. WalletPop.com offers these suggestions for finding a reliable, qualified tax preparer:

• Go online. Do a search for tax preparers in your area. Check each one's website for information about the preparer's qualifications. Also look for signs that the preparer stays informed about the latest tax issues, perhaps by writing a tax blog or contributing to media stories about taxes.
• Look for complaints. Check with licensing agencies or professional organizations to find out if complaints have been filed against a preparer. If a preparer has a number of complaints on record, you may want to steer clear.
• Ask about compliance. The IRS requires all paid tax preparers to have a Preparer Tax Identification Number (PTIN). Some states also require additional licensing. Ask potential tax preparers if they meet these requirements.
• Consider the cost. You probably can expect to pay between $200 and $500 for a federal return. But fees can vary depending on your location and the complexity of your return. If a preparer's fees differ greatly from others in the area, don't be afraid to ask why.
• Expect good service. Does the preparer return your phone calls, answer your questions, and advise you about which documents you should bring to your appointment? If not, look for someone you feel more comfortable working with.
• Check availability. Find out when the preparer's office is open and how you can get in touch during the off-season, in case there's a problem with your return.
• Get recommendations. Ask family or friends if they can refer you to a preparer. But don't settle for a name alone--ask additional questions about what the preparer does or doesn't do well.

Blowin' in the windfall

This month's $380 million lottery drawing brought worldwide attention to the holders of the two winning tickets. Each time a big lottery jackpot hits the news, you can be forgiven for thinking "That could be me!" and dreaming of a spending spree.

More likely you'll get a less newsworthy windfall--found cash, a year-end bonus, a modest inheritance. But even moderate windfalls can lead to costly mistakes if you're not careful. To ensure that you don't blow any windfalls that come your way, the Credit Union National Association's Center for Personal Finance recommends that you start by getting help from qualified advisers. Follow these tips:

• Pay the Internal Revenue Service first." Consult an expert--accountant, tax attorney, or other tax adviser--to determine your tax liability, if any. (Your state or local bar association might offer referrals to tax attorneys.) Insurance settlements and inheritances might not be tax deductible. If you do owe the government something, immediately set that amount aside before you spend any of the rest.
• Look at the whole picture. Almost as common as news stories about lottery winners are the follow-up articles about sudden millionaires who foolishly let it all slip away. Make no rash decisions. Instead turn to a Certified Financial Planner (CFP) for comprehensive windfall advice. A CFP designation means the planner has passed a rigorous exam and has stayed up to date with continuing education. Let the CFP help you consider all your needs, goals, and options and make the most of your good fortune.
• Give wisely. Windfalls can put recipients in a charitable mood. Get legal advice before giving money to friends and relatives to head off potential tax issues and hard feelings. Check out charitable organizations through evaluators such as Charity Navigator and Give Well to make sure your donations will be put to good use. And reward yourself, too. It's OK to splurge a little. Just be sure you don't jeopardize your long-term goals when you do.
• Keep an even keel. Windfalls can be stressful, especially if they're associated with a death in the family or because of a public event. Excitement, publicity, and the inevitable demands of opportunists and investment swindlers can be bad for your physical and mental health. Before you feel overwhelmed, talk to a trusted personal or family therapist about coping skills.

Your home: Prepare for a tough sell in 2011

If you're planning to sell your house in 2011, it's going to be a tough market.

That's the consensus of a number of analysts predicting that home prices will continue to fall, interest rates will rise in the second half of the year, and the number of sellers will continue to outnumber the number of buyers (seekingalpha.com Jan. 4).

The mortgage market has been so dismal Moody's Analytics suggested last year that in many markets in the U.S. it made more sense to rent than to buy. The cost to rent has gone up a modest 3% the past year and should continue to be moderate.

Some observers, however, say the market may improve by mid-2011 and certainly by the end of 2011. Moody's chief economist Mark Zandi told CNNMoney.com (Jan. 4) that owning a home again will be more advantageous than renting. His reasoning: Home prices will fall more, making ownership more affordable and the oversupply of homes for sale will keep already depressed home prices low. And while mortgage rates will rise in the second half of 2011, they will remain low by historical standards.

While forecasts for the housing market are varied, motivated sellers can succeed with these steps:

• First, get your house ready to sell. Often referred to as staging, and the subject of many television shows, this simply means taking an objective look at the sales appeal of your home. Does it need painting, new carpet, or minor fix ups? Get rid of things that make it your home--photos, for example. Make it as neutral and as uncluttered as possible. Sell to buyers' needs, not yours. Be honest with yourself about its curb appeal.
• Second, decide whether you'll go it alone (FSBO or for sale by owner) or enlist a broker. FSBO means more work on your part, but potentially more money in your pocket. And you'll likely have to fend off numerous calls from brokers hoping to get your listing. Listing with a broker offers greater marketing potential, but you'll be paying commissions to the selling agent and usually a buying agent.
• Third, decide whether you're willing to offer incentives. Even if you go it alone you might want to consider a commission to the successful buyer's agent. Agents are likely to nit pick your house to death if they show it without one. Consider including paying for a home warranty for the first year or two. They typically cover all appliances and the heating and cooling systems, for around $500 or so annually. Or offer to pay a portion of the buyer's closing costs; you can deduct it as a sales cost.
• Finally, be patient. Just try to find someone who can give you an accurate picture of how long it will take to sell a home these days. It all depends on local market conditions.

Three ways to leverage your payroll tax 'raise'

If you have a job and pay into Social Security, you'll get a temporary "raise" in 2011. That's because a 2% decrease in your payroll taxes is part of the Tax Hike Prevention Act Congress signed into law at the end of 2010 (msnbc.com Jan 3).

You won't see this money in a lump sum. Instead, each paycheck will be a tad more because you can expect to pay a little less in taxes. How much? You can get an idea by visiting Kiplinger.com and typing "tax cut calculator" in the search engine.

No matter what size your "raise," if you don't plan how you'll use that money it will slip away. Here are three ways to get power out of that extra cash:

1. Invest in yourself. If you don't have any credit-card debt, put the entire 2% in a pre-tax retirement account or Roth IRA, start laddering certificates of deposit/share certificates (CDs), open a high-yield savings account, or invest in a mutual fund. If you have credit-card debt, use the extra cash to pay it down.
2. Invest in your living situation. Establish an appliance-replacement fund and think "energy-efficient," pay more on your mortgage every month, or put the money aside every paycheck for auto maintenance.
3. Invest in quality of life. Start a fund for gift giving so you can celebrate important occasions and give to charity without worry, add a line to your budget for family entertainment so you're ready when the big show comes to town, stash the money to pay the rising costs of health care, or join a fitness club and invest in your personal health and well-being.

Two of these ideas have bonuses in that you'll get a percentage back if you invest in a pre-tax retirement account or a health savings account. Others save you money by reducing costs: If you pay down credit card debt, pay more on your mortgage, or upgrade an appliance, you'll wind up paying less in interest or the cost of energy. If you invest in a Roth IRA, besides bringing you more money when you retire, your contributions most likely will be cheaper in today's tax climate than they will be in the future.

Find the right fitness equipment

Is your New Year's Resolution to get fit, but your personal economy is shaky? You can lose weight, gain muscle mass, pump up your endorphins, increase flexibility--name your goal--without spending precious time and scarce money at a gym. Learn how to shop for quality new or used fitness equipment--from the simplest to the most complicated--and move your workout into your home (GenXFinance.com Dec. 27).

New equipment is ideal--it comes with a warranty and is an investment. But if your budget says "no," or you aren't sure what you need, it makes sense to purchase used equipment.

Websites can help you figure out what you need and want, get you started on your own exercise program, and even review brand names and models. Then, when you are ready to purchase equipment, you can make an informed decision.

Use key words and phrases to search these sites for ratings, comparisons, reviews, or helpful tips:

• ConsumerSearch.com reports what experts and users say about a product, without being influenced by advertising or other commercial considerations.
• About.com gets its information from real people with passion and expertise in their fields who agree to observe a conflict-of-interest policy.
• E-How.com combines expert with practical knowledge to help you research, share, and discuss solutions and tips for just about anything you want to do.

Examples of key words or phrases: exercise video, treadmill, resistance band, strength training, toning, elliptical machine, fit on a budget, and so forth. You'll find choices for information about the topic you enter, plus leads to new areas of exercise you perhaps hadn't considered.

Before you buy fitness equipment:

• Think about activities you already enjoy. This is important when venturing into something new to increase the likelihood you'll actually use the equipment you buy. For example, if you hate bike riding, don't buy a stationary bike. Start with exercise videos that you rent or borrow from the library and a good pair of shoes to find out what you like.
• Determine your budget. Exercise gear doesn't have to be expensive, but you want good quality. Visit About.com and search "exercise on a budget" for alternatives to spending a lot of money for gym membership or on home equipment.
• How much room do you have? Before you buy anything bigger than resistance bands, think about where you'll put it. Measure your space to avoid future problems.
• Beware of fitness fraud. This includes quick fixes and impossible claims. Example: An ab machine will target your abdominal muscles, but it won't reduce fat over your tummy.

Understand provisions of 2010 Tax Relief Act

In December, Congress passed and President Barack Obama signed the 2010 Tax Relief Act. The bill brings significant tax-law changes for many Americans.

The National Society of Accountants (Dec. 20) breaks down some of the most important changes, including:

• Increased Alternative Minimum Tax exemption amounts. The act increases 2010 exemption amounts to $47,450 for individuals, $72,450 for married couples filing jointly and surviving spouses, and $36,225 for married couples filing separately.
• No change in tax rates. Individual tax rates will be held at the 2010 level for the next two years.
• Extended capital-gains tax rate. For 2010, qualified capital gains and dividends are taxed at a maximum rate of 15%. The act extends that rate through Dec. 31, 2012.
• Extended itemized deduction limitation. The "Pease" limitation--which reduces the total amount of a higher-income individual's otherwise allowable deductions--was suspended for 2010. It was scheduled to return at a projected level of income starting at $169,550. However, the act has extended the suspension through Dec. 31, 2012.
• Suspension of personal exemption phaseout (PEP) extended. The PEP reduced the total amount of exemptions for taxpayers with adjusted gross incomes exceeding the applicable threshold--$169,550 for singles and $254,350 for joint filers in 2011. The PEP was suspended for 2010, and the act extends that suspension through Dec. 31, 2012.
• Extended marriage penalty relief. The relief provision increased the basic standard deduction for married couples filing joint returns to twice the amount for a single taxpayer. The act extends marriage penalty relief through Dec. 31, 2012.