Improve your ACT score up to 4 points in under 2 hours?

June 8th, 2010

Hey

Ron Caruthers here. I don’t think I can stress enough how competitive today’s college admission and scholarship environment is, but it helps to give your student every possible advantage. These days, schools are using ACT and SAT scores not just to determine whether a kid gets in or not, they’re using them to determine what sort of merit AND need based financial aid packages they’re going to hand you. So, your student’s ACT and SAT scores don’t just determine admission, they can be the difference between paying full tuition…..or getting thousands of dollars of grant money, so you must pay attention to this.

Last week I told you I’d send over a killer offer for a 100 minute ACT crash course that can raise their scores by up to 4 points (that’s like 200 points on the SAT!) in just a couple of hours if they’re taking the ACT this Saturday. So, here are the details:

First, you’ll get immediate access to the video course run by Dr. Kuni Beasley, who has taken the SAT and ACT more times in the last few years than he can count, and he’s cracked the code on amazing test taking strategies and techniques that will instantly help your student to score better.

In this video, he’ll explain the following:

  • The simple mistake on the reading comprehension and science sections that 97% of all students make and how to instantly overcome it to improve your score with no studying required;
  • The one technique that will have other students thinking you might be crazy (or homeless), but that will give your grammar scores an instant boost by activating ‘that’ part of your brain. Your friends may laugh now, but they’ll be amazed when they see how much better you do than they did;
  • How to answer 89% of the math questions that seem to trip everybody up with 8 simple rules that do NOT require you to even use your calculator. For instance, you’ll learn ‘the bikini rule’ which will help you answer all fractions questions in seconds, and 7 other rules like the CRACK the safe rule, the POE rule, the PAW of averages rule, and the travel rule.
  • 6 rules for acing the reading and grammar portions of the essay, and the exact order to answer each section and question in. Plus, he’ll give you a simple test booklet tip that will save you 7-10 minutes per section and help you to avoid transposing answers.
  • And much, much more.

    • Now, here’s what this video will NOT do: it is NOT designed to ‘teach’ any high school subjects. It is focused on simple, easy-to-learn rules and techniques that are designed to help you ‘out-smart’ the test. However, as Dr. Beasley says, the ACT doesn’t care how you get the right answer, it only matters that you HAVE the right answer. So this video will give you a ton of fast and easy techniques that your student can use immediately.

    So, here’s the deal: the video normally retails for $197 (and it is worth every penny at that price and then some) but I’ve gotten him to allow me to offer it at $97 for the next 48 hours only. Plus, I’ll throw in a few bonuses that will make this a complete no-brainer for you.

    First, I’m going to add a 1 hour video taught by the World’s Fastest Reader Howard Berg called ‘How to Learn Anything in Half the Time’ that’s worth $197 also. You’ve seen Howard in the Guinness Book of World Records and in Sony commercials with Payton Manning and Justin Timberlake. This is a great, immediately usable video that will help your student for high school, college and beyond. In fact, many parents like you will benefit from it as well if they have to continue to learn new things in today’s economy.

    Also, I’m including a certificate for a free College Evaluation in our office that’s worth $225. We will evaluate your situation based on 21 different areas ranging from your student’s preparedness to your ability to financially afford college and make suggestions for you to improve your overall ‘college readiness’. This even includes a mathematical prediction of your student’s chances of getting in to the schools he or she is interested in and an analysis of what they can do to improve those chances, as well as an evaluation of what the colleges will expect you to pay for each year your student attends school and how low that amount can go with proper planning. The only catch is that this must be used by August 31st, 2010.

    PLUS, I’ll include a copy of my book ‘What Your Guidance Counselor Isn’t Telling you’ that we normally charge $20 for, but the information inside is priceless and worth many times that. I wrote this based on 17 years of experience in the college planning industry and after working with over 3,000 families to determine what the most common mistakes were, so it’s full of inside tips and information about steps that most families completely miss, and that most guidance counselors don’t have the time to share.

    So, you’re getting $639 of value for only $97. That’s 85% off for savings of $542!

    But, there are a couple of catches: First, this offer is only good until 5pm, Thursday June 10th OR when I feel like we’ve released enough of these. See, because the one bonus includes my staffs and my time, if we get a ton of these immediately, I may simply call this off because we’ve sold too many and I want to make sure that we can fit everybody in before my super-busy season starts (which is September 1st every year). So, if you’re interested, don’t mess around.

    Catch number 2: Dr. Beasley is brilliant, but he’s also a little dry. So, you have to warn your kids in advance that they have to stick with the information and they can’t just give up after 10 minutes. Trust me, the information is amazing.

    Catch number 3: Because I’m offering this at the last minute, I didn’t have time to set up a fancy web page or anything, so you have to call in or send an email to order it. My number is 760-438-9095, and they’ll be answering the phone until 6pm Pacific tonight, and they’ll start again at 9am Pacific tomorrow.

    If you call after hours, you can simply say you want ‘Ron’s $97 ACT Crash Course Special’ and leave your phone number, credit card info (it’s safe. It will only be us listening to it), your expiration date and your billing address. The phone number is especially important so we can call you in case we can’t understand you. As soon as we’ve processed your credit card info, we’ll immediately give you your login information so your student can instantly begin accessing the information, and we’ll immediately send out your bonuses.

    If it’s easier for you, you can also send an email to susy@mycpsi.com with all the same information.

    I’ve been searching for good ACT and SAT information for years, and this is the best I’ve seen. Plus, we’ll give you a 100% money-back guarantee if you’re not completely satisfied with the stuff you’re getting.

    Well, sorry for such a long email, but this is super important. Susy will be waiting for your call. Remember, don’t put this off! Call us now at 760-438-9095.

    Your college ‘wizard’,

    Ron Caruthers

    PS. If you’re student is going to retake the SAT at all, Dr. Beasley has a 2 hour SAT crash course that normally sells for $197 that you can add for only $50 more! That’s both plus all the bonuses for $147, so you save another $150 and get the course for 75% off! Call us now to get this started.

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    What to do if you’re Waitlisted or Rejected from Your Top College Choices

    March 26th, 2010

    Well, this time of year is always an emotional roller coaster for me.

    On the one hand, for the majority of the families I work with, everything goes according to plan…they get in where they’re supposed to, they get the aid they’re supposed to, and everything is great.

    But, I also spend a LOT of time dealing with the handful of families where things do NOT go like they’re supposed to…whether they don’t get the right amount of financial aid, or they get wait-listed or rejected altogether. In fact, often the phone calls come back to back in rapid succession, so by the end of the day, I’m completely exhausted emotionally.

    So, today, let’s talk about what to do if you’re rejected or deferred (waitlisted).

    First off, if you’re rejected, for the most part, that’s going to be a tough one to overcome. But it’s not totally impossible. For instance, just today, we had a student who was flat out rejected from her first choice get admitted. I’ll talk about exactly how to do it in a second. However, the important thing to understand is that she had been rejected from a small, private school that SHOULD have accepted her in the first place.

    If she had been rejected from UCLA, which had over 55,000 applications this year for 3,900 freshman slots, we would have told her not to bother.

    Wait-listed is a little easier. For some schools, it’s just that….a waiting list until they figure out their ‘yield’, which is a fancy word for ‘how many students are actually coming here in the fall and will we have any room left over’. For other schools, they don’t really mean it, but it sounds politer than a ‘no’.

    So, here’s what to do if you’re rejected or waitlisted from your top school.

    First, figure out which school you’re most interested in of the schools that HAVE accepted you, so we have a plan B. You might even send in a housing deposit if it’s close to the May 1st deadline, but figure out what you’re going to do if this doesn’t work first.

    A word from me: if this doesn’t work, let me tell you what I’ve learned over the years of doing this. You are much better off accepting an offer at your second choice, working your tail off, and transferring in a couple of years than you are attempting to take a year off, even if you do something really cool…like live in Europe or work on a cruise ship. That will not help your chances of getting in the next fall, so you’ll be back at square one. So, if you really want to go to college, go to college. On the other hand, since I tend to contradict myself even in my own thinking, I’ll have a great article for you in a few days about some students who have very successfully taken a year off, and been much better for it.

    Anyway, let’s get down to the business of getting you in to your top choice:

    • Next, you need to make a list of all your accomplishments that have happened since you originally turned in your application to them.
    • What awards have you won?
    • What killer grades have you gotten?
    • What community service projects have you been involved in?
    • What internship have you set up for the summer?
    • In other words, why should they pick you versus all the other talented students that are applying there?

    This is NOT the time to be shy! You need to be polite, but frankly, it’s your job to convince them that they should want you. And remember, be as specific as you can….don’t tell them you’ve improved your grades…tell them exactly how much you’ve improved them and exactly what you’ve been up to since you applied.

    After that, make a list of all the reasons why you want to attend there. And use the same formula: be as specific as possible about why they are your number one choice. For instance, I just helped a client with a letter like this, and we referenced the fact that an alumnus of theirs had just won his fourth academy award and that, given the chance, we would make them as proud of us (well, the student) as they were of him. It showed we were paying attention.

    So, to recap so far, what we’ve basically created is a letter that addresses two subjects: why you are perfect for them, and why they are perfect for you.

    Now, once you’ve made an interesting and specific letter that is persuasive about why they should pick you, we’ve got to look up who to address it to. It should be addressed to the Dean of Admissions BY NAME. Meaning, don’t put ‘Dean of Admissions’. That’s as bad as putting ‘To Whom It May Concern’. Go to the trouble of looking up his or her NAME, so it’s addressed to Dr. Jane Doe, Dean of Admissions.

    Then, be sure to CC anybody at the college who had helped you or would be interested in seeing you get in the school, like a coach, admissions representative, music teacher, friend of the family that works there, or anybody else you can think of.

    OK, are you ready for the best suggestion of all? I swear to you, nobody else knows this.

    Send the package via Fed-Ex.

    Yep. Not Priority Mail, DHL, UPS or anything else. Fed-Ex ONLY.

    Here’s why: the first battle is getting this all seen by somebody, so we’ve got to make sure that it gets to the right people. And NOTHING does that better than a Fed-Ex package. Don’t ask me why, and NO, I don’t own stock in them. But, you can write the best letter ever, but if nobody sees it, it won’t do you a damn darn bit of good. Fed-Ex ONLY.

    Last point: I often get asked whether you should include a picture of yourself or not. I feel that you should. Here’s why: it personalizes the package. You don’t have to have model looks, either. It just helps them to identify with who you are. And, if you’re going to include a photo, make it

    of you with your family, your dog, or doing something interesting. Do NOT make it of you with your boyfriend/girlfriend or wearing a sweatshirt from their college. It just doesn’t help your case.

    OK, one more point before I sign off: don’t worry if the letter is not perfect. You’re taking a step that most people won’t, so you’ve already set yourself apart. Like John Francis Tighe said ‘In the land of the blind, the one-eyed man is king.’

    Or like Woody Allen said ’50% of success is just showing up.’

    Or like Ganhdi said…just kidding, but I think you get the point.

    You do NOT need to attempt to use every SAT vocabulary word that you’ve ever learned, or to write prose like Hemingway…you just need to list some honest reasons why they should pick you.

    Now, like Larry the Cable Guy says ‘Get ‘er done’.

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    5 Hot Job Search Tips for New College Graduates (and everyone else, for that matter)

    March 9th, 2010

    My daughter Jessika just landed her first job as a hostess at an Italian restaurant in Whittier, California (Zi Teresa if you’re in the area. She’s the tall blonde. Tell her dad is watching her if you stop by. www.ziteresarestaurant.com). I was so excited by the prospect of my daughter being gainfully employed  that I put together 5 hot job search tips for everyone in today’s economy, but especially for the new college graduate.

    President Obama said in his State of the Union address that the nation’s economy ‘begins with jobs’, and there’s no real point to a college education unless it leads to work that you enjoy that allows you to support yourself and your family. So, here are my 5 hottest tips:

    1.     Treat your job search like a real job. That means starting early and working late, and not getting discouraged if it takes longer than you’d like. It IS harder landing a job (especially your first one) than it is actually having a job. So, don’t run from it. Embrace it, and realize that most people conduct their job searches lackadaisically and only actually work at it a couple of  hours a day. You have an instant leg up by working longer and harder than they do. If you’re in college and a junior or a senior, start now. It’s never too early. And make the people at the Career Center your new best friends.

    2.     Before you head out the door, be sure to check your Facebook, Twitter, MySpace (does anyone use that anymore?), Zanga, LiveJournal, YouTube, Fickr and all your other social networking accounts for anything distasteful or incriminating.  I’ve written on this before regarding how it can affect your chances of getting in for college, and it’s even more true how damaging it can be when applying for a job. (You can read that article here). Remember the ‘Granny Test’…..if it would give your granny a heart attack, then it’s best deleted before you start your job search. Your new employer doesn’t really need to see how great you look drinking out of a beer bong. Trust me on this one.

    3.     Be specific on your resumes. Just like when writing an essay or a term paper, be sure to use action words and specific accomplishments, rather than fluffy words that don’t have any meaning. Much better to explain that you worked at a restaurant and increased your average diner’s check by $11.54 (you can sell and suggest things)  over the normal for the store and that your average tip was 21% (you give great customer service) versus telling them you’re a ‘well-rounded individual that has excelled in multi-cultural disciplines.’ The first example is meaningful and specific and the second is just words that don’t really mean anything. Also, remember the purpose of a resume is to get an interview. The purpose of the interview is to land the job. So, practice specific questions and your responses before you have your first job interview. (I’ll write another article in the next few weeks about specific suggestions for acing your interview.)

    4.     Research your potential employer before you interview with them. There are a number of ways of doing this, but the obvious ones are spending some time on their website, talking to anyone you know that works for them, hanging out at the bar or Starbucks that is nearby during breaks or after work, and reading their shareholder’s reports if they’re publically traded. You’ll walk in the door being much better prepared than anyone else if you just take an hour or so to do this before each interview, which will lead to an ease and confidence on your part that’s sure to impress them. This also involves researching what your starting salary should be based on the marketplace and what you have to offer and negotiating from there once you are offered the job, not basing your requests on what YOU need.

    5.     Don’t forget to follow up. Notice I said follow up, not stalk.  That means a handwritten thank you note sent immediately after your interview to all the parties that were present. In today’s email saturated world, a handwritten note is a breath of fresh air, and will also help set you apart. If you haven’t heard from them after the time period they said they’d get back to you in, then one additional call, email or written follow up is acceptable expressing your continued interest in the job. Anything above that is excessive.

    6.     Finally, if all else fails, be willing to work for free on a ‘trial basis’. It’s just like the internships we’ve been encouraging you to get during your entire college career: simply offer to work for a set period of time for free.  Straight up free. If they like you at the end of the period, then they can make you an offer.  If the offer is good, you can accept it. If not, you move on to the next place, BUT…I have never had anyone who tried this that didn’t end up employed in very short order.

    So, I hope these tips get you started and out the door. If you’re looking for a great book on the subject, be sure to pick up Harvey Mackay’s new book Use Your Head to Get Your Foot in the Door: Job Search Secrets No One Else Will Tell You. Harvey wrote the first business book I ever read Swim with the Sharks Without Getting Eaten Alive, and I’ve been a huge fan of his common sense business advice ever since. He also has a ton of useful articles and job search tools on his website www.HarveyMackay.com.

    Here is another article that I wrote on what to watch out for on Facebook.  Click here

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    6 Year End Tips for Saving on Your Taxes

    December 14th, 2009

    Believe it or not, 2008 is almost over. And while most people don’t like to think about their taxes until March or April, NOW is the perfect time to review your situation to make sure that you are paying the lowest amount legally possible. With that in mind, here are 6 things you can do before the end of the year to help you save big money on your taxes.

    1. Sell Some of Your Stocks

    First off, if you have any money in the stock market, you’ve probably lost plenty with the current economic situation. If you have after-tax stocks or mutual funds (meaning they’re not inside a retirement plan like an IRA or 401K) that are down in value, you can sell them, and you are allowed to write off $3,000 of the loss against your current earned income. If you are in the 25% tax bracket, that means that you will save $750 on your federal taxes come April 15th. And, if you really like the stock, you are allowed to buy it back 31 days later, and still take the write off.

    2. Invest for Retirement

    I know, I know…this sounds like exactly the opposite of the previous tip, but if you have any extra cash around, now is the time to put it into an IRA or your 401k at work. You will get the double benefit of the tax write off for this year, and you’ll be buying when the market is down, or on sale. So each dollar invested will purchase more stock or mutual fund shares than it would if the market was high.

    3. Get any Medical Tests or Work Done

    Again, you have a double benefit here if you spend a lot of money on medical bills. First, if you’ve already met your health plan’s deductable, you will get your care covered versus if you waited until after the first of the year when you might have to pay a new deductable. Also, if you have medical bills that exceed 7.5% of your adjusted gross income, you are allowed to write off anything in excess of that, thus saving the taxes on that money as well.

    4. Prepay Expenses

    Certain expenses, like your January mortgage payment, can be paid in December, and you’re allowed to take the deduction for this calendar year. Other expenses in this category include state or property taxes. Also, if you own a business, you can buy equipment that you’ll need next year and take the write off as well.

    5. Defer Income

    Technically, you only have to pay tax on income received by the end of the year, so if you have any leeway on how or when you get paid, you can choose to have that money pushed into the upcoming year. If you own a business, that may mean sending your invoices in late December, so the income doesn’t actually hit until January. On the other hand, keep in mind, you’ll still have to pay the taxes on the income next year.

    6. Get Married

    Even if you get married on December 31st at 11:59pm by an Elvis impersonator in Las Vegas, the government considers you married for the entire year, and allows you to take the appropriate (often higher) credits and deductions. So, if you’ve been thinking about tying the knot, what more romantic reason could you think of for doing it this year than saving money on your taxes!

    These tips should give you some things to review and think about. Remember that a little bit of planning now can save you a bunch of money come April 15th.

    Also, don’t listen to the media that keep talking about how no one is going to be able to afford college this year, and for the next few years. There’s still plenty of money available if you know where to look for it. So, be sure to check out my other website if you’ve got a student getting ready to go to college for a complete list of my workshops on How to Pay for College Without Going Broke.’ www.CollegePlanningSpecialists.com

    Ron Caruthers

    www.CollegePlanningSpecialists.com

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    College Planning Workshops

    December 14th, 2009

    Are you staying awake at night trying to figure out how to pay for college?

    “How to Get Thousands of Dollars of FREE Money For College…Regardless of Your Income Level or How Good of a Student You Have”

    If you’re the parent of a student that is planning on attending college, you absolutely must attend my workshop called “How To Send Your Child To The College Of Their Choice Without Spending Your Life’s Savings, Sacrificing Your Current Lifestyle, Or Just Plain Going Broke.” I’ve got all the upcoming dates listed below, so there’s no excuse for you not to come to one.

    At this class, I will reveal astonishing ways to beat the high cost of college that your guidance counselor and the colleges aren’t telling you—BUT smart parents across the country are using to pay almost nothing for college. In fact, hundreds who have attended our seminars have discovered new secrets and strategies to send their children to schools they never thought they could afford.

    Here’s just part of what you’ll learn:

    1. The 5 greatest myths about planning for college—and why listening to other parents or a guidance counselor will cost you big time.
    2. How to double, or in some cases triple, your eligibility for FREE grant money.
    3. How even millionaires and parents making a good six figure income are getting tons of free grant money, and how you can too!
    4. Why your child’s guidance counselor is the worst source of information on college planning, and where to go to get the truth.
    5. How to get the colleges to practically line up and beg your student to come to their school.
    6. The amazing way some parents put their kids through college, and end up in better financial shape than when they started—even though they hadn’t saved a nickel for school.
    7. The ONE single mistake 91% of all parents make that costs them thousands….and they don’t even realize it. PLUS, how YOU can avoid making the same mistake.
    8. What to do right now if you haven’t saved a single dime for college; or, what to do if you did save money for school—-but…… it’s not enough, you lost it all in the market, or you had to spend it somewhere else. BONUS: How NOT to be punished if you did save enough for college– don’t lose out because you were thrifty!
    9. How to obtain a “tax scholarship” to pay for ALL of your tuition—right from the IRS. 100% legal, but not one in 1000 accountants knows how to get it!
    10. Why following the advice of an accountant or financial planner can cost you buckets of free money…AND, why you need to avoid the new college savings plans like the plague! Believe me, what you don’t know on this CAN cost you a boatload.
    11. The absolute, GUARANTEED most expensive way to send a child to school….and how to avoid it!

    NOTE:
    If you think you make too much money to get any aid (or that’s what you’ve been told), you absolutely MUST attend this class to learn the shocking truth about how many families earning six figure incomes are getting thousands of dollars of free money each and every year. There really is hope, despite what you’ve heard!

    This seminar is strictly informational – so nothing is for sale…. so don’t hesitate to come. Select the seminar that best fits your schedule, and make your reservations NOW! Don’t hate yourself for not getting valuable information that can save you an absolute fortune.

    Look at the list below, pick the date that works for you and get yourself registered immediately. And don’t let anything come up that day. Cancel whatever you have to cancel so you can be there.

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    529 College Savings Plans: The Good, the Bad, and the Getting Uglier-by-the-minute

    December 8th, 2009

    The rest of the world is finally realizing what I’ve been saying all along: 529 college savings plans are NOT all they’re cracked up to be.

    It only makes me wonder what took them so long…..

    See, when they first came onto the scene, these savings plans were touted as the greatest thing since sliced bread or indoor plumbing. Who wouldn’t love a way to save for college and get a permanent tax break, much like you get on a Roth IRA? However, there were a bunch of problems with these kinds of plans. First, most financial advisors, investment salespeople, and even CPA’s don’t understand that they can have a negative impact on qualifying for financial aid. That’s why I teach the workshops that I do on the subject, and if you haven’t attended one of these, you really need to. (You can see my upcoming dates and register at www.CollegePlanningSpecialists.com, by the way).

    So, many families that would otherwise be eligible for aid inadvertently screw themselves because they save money here or in other places that can actually hurt you more than help you.

    However, there is another problem with these that is finally getting acknowledged: they’re expensive and they offer subpar returns. That’s what Greg Brown an analyst from Morningstar was quoted saying in today’s USA Today. His comment, like I’ve been saying for years, was that during a good market, people don’t pay attention to what fees they’re being charged, but when the market reverses, then these problems come to light.

    For instance, Fidelity just lowered their fees up to 50% on their 529 plans that are used in 7 states. In other words, they were previously overcharging their customers by so much that they could lower their fees by 50% and still make money. By the way, Vanguard, TIAA-CREF and UPromise have all lowered their fees as well.

    That’s not as bad as being in Oregon, though, where Oppenheimer lost families in their state up to 36% (!!!!!) of the value of their accounts in one year…..in the conservative portfolio designed for parents who had kids getting ready to go to school in the next 12 to 24 months. Yeah, the parents were pretty pissed and so were the state legislators, who sued Oppenheimer. It’s like Will Rogers said: it’s not the return ON your money that’s important, it’s the return OF your money that counts.

    Here’s your lesson: first off, you need to educate yourself about the entire process (my workshop is a great place to start) and just because ‘they’ think these plans are a great idea doesn’t really mean that they are. In fact, I feel that 529’s are only appropriate for about 10% of the families out there that we meet, and ONLY if the kids aren’t going to college for 10 or more years. For the rest of the other families, more conservative options that couldn’t lose money and wouldn’t count against them for financial aid, would be much, much better. But, everybody is different, and that’s why you’re welcome to come by my office to ask about what YOU should be doing. We book up a few weeks in advance, but it’s definitely worth it. You can find us at 760-438-9095 or online at www.CollegePlanningSpecialists.com.

    In any case, like they always say about almost everything, let the buyer beware. The so-called ‘great’ plans may not be so great for you.

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    I’m Bad……I’m Nationwide

    December 10th, 2008

    Yep, you read that right. I’ve got the first, and from what I can tell, only nationally syndicated college planning radio show on the planet!

    If you didn’t know, Ed and I have been quietly toiling away for the last few months perfecting our radio voices and our interviewing styles so that we’d sound like we’ve been doing this for years when we finally went ‘live’ with our show. I’m not quite sure we pulled that off, but at least I think we didn’t embarrass ourselves. AND, the initial reviews are overwhelmingly positive. In fact, one radio producer said that we had ‘million dollar radio talent’ (did you read that, mom?).

    So…..you need to check it out. It’s an hour long show, and I think you’ll find it quite informative, as well as fun and easy to listen to. We cover all topics related to college and career planning, as well as useful tips that you can immediately implement. Also, each week, we’ll be introducing special features like our ‘Weird College News’ and our College Hall of Shame….where we pubically call out schools that have abused families that we know. AND we name names! And, in the spirit of fair play, we also mention schools that have gone our of their way to treat families fairly and ethically.

    Check it out right here, Radio Shows

    Be sure to let me know what you think. My email is ron@mycpsi.com. Also, you’re welcome to write me there with questions or story ideas.

    And, don’t forget, we teach local classes in the San Diego area, as well as national telephone classes and internet ‘webinars’ (they’re like watching me do my thing live…..but on the internet) on all types of college topics, but especially on how to pay for college in these crazy economic times without going broke. So, be sure to look up that schedule at www.CollegePlanningSpecialists.com .

    Sincerely,

    Your humble, but now semi-famous, servant,

    Ron Caruthers

    www.CollegePlanningSpecialists.com

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    6 Year End Tips for Saving on Your Taxes

    December 2nd, 2008

    Believe it or not, 2008 is almost over. And while most people don’t like to think about their taxes until March or April, NOW is the perfect time to review your situation to make sure that you are paying the lowest amount legally possible. With that in mind, here are 6 things you can do before the end of the year to help you save big money on your taxes.

    1. Sell Some of Your Stocks

    First off, if you have any money in the stock market, you’ve probably lost plenty with the current economic situation. If you have after-tax stocks or mutual funds (meaning they’re not inside a retirement plan like an IRA or 401K) that are down in value, you can sell them, and you are allowed to write off $3,000 of the loss against your current earned income. If you are in the 25% tax bracket, that means that you will save $750 on your federal taxes come April 15th. And, if you really like the stock, you are allowed to buy it back 31 days later, and still take the write off.

    2. Invest for Retirement

    I know, I know…this sounds like exactly the opposite of the previous tip, but if you have any extra cash around, now is the time to put it into an IRA or your 401k at work. You will get the double benefit of the tax write off for this year, and you’ll be buying when the market is down, or on sale. So each dollar invested will purchase more stock or mutual fund shares than it would if the market was high.

    3. Get any Medical Tests or Work Done

    Again, you have a double benefit here if you spend a lot of money on medical bills. First, if you’ve already met your health plan’s deductable, you will get your care covered versus if you waited until after the first of the year when you might have to pay a new deductable. Also, if you have medical bills that exceed 7.5% of your adjusted gross income, you are allowed to write off anything in excess of that, thus saving the taxes on that money as well.

    4. Prepay Expenses

    Certain expenses, like your January mortgage payment, can be paid in December, and you’re allowed to take the deduction for this calendar year. Other expenses in this category include state or property taxes. Also, if you own a business, you can buy equipment that you’ll need next year and take the write off as well.

    5. Defer Income

    Technically, you only have to pay tax on income received by the end of the year, so if you have any leeway on how or when you get paid, you can choose to have that money pushed into the upcoming year. If you own a business, that may mean sending your invoices in late December, so the income doesn’t actually hit until January. On the other hand, keep in mind, you’ll still have to pay the taxes on the income next year.

    6. Get Married

    Even if you get married on December 31st at 11:59pm by an Elvis impersonator in Las Vegas, the government considers you married for the entire year, and allows you to take the appropriate (often higher) credits and deductions. So, if you’ve been thinking about tying the knot, what more romantic reason could you think of for doing it this year than saving money on your taxes!

    These tips should give you some things to review and think about. Remember that a little bit of planning now can save you a bunch of money come April 15th.

    Also, don’t listen to the media that keep talking about how no one is going to be able to afford college this year, and for the next few years. There’s still plenty of money available if you know where to look for it. So, be sure to check out my other website if you’ve got a student getting ready to go to college for a complete list of my workshops on How to Pay for College Without Going Broke.’ www.CollegePlanningSpecialists.com

    Ron Caruthers

    www.CollegePlanningSpecialists.com

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    How to Survive the Current Stock Market Crash….With Your Money AND Your Sanity Intact

    October 8th, 2008

    By Ron Caruthers,

    CEO www.CollegePlanningSpecialists.com

    Wednesday, October 08, 2008

    (Ron’s note: I wrote this as quickly as I could to respond to market conditions and without the normal time that I would allow for ‘seasoning’ and editing that I give when I write anything. So, in advance, I ask your forgiveness for any typos or sentences that aren’t perfectly clear. I read it out-loud twice and it seemed OK, but I’m sure I missed something. I’ll clean up any miscommunication in a follow up article tomorrow.)

    In the last few weeks, I’ve taken more calls from nervous clients than I did in all of the rest of the 18 years that I’ve been in the financial industry put together. Especially given that the market has gone down in the last 5 straight sessions, and 6 out of the last 7, I thought I’d take a moment to address what’s really going on, and why you’re probably better off staying put, even if you hate me for saying it.

    First, let’s start with the obvious: the NASDAQ is off its’ last high by 38%, and the S & P is off by 36%; and that sucks, no matter what I try to say about it to cheer you up.

    So, if your money is predominately in stocks, you’ve experienced a loss of at least 20%, even if your manager is doing an excellent job of protecting you against the downside. And most likely, you’ve lost a whole lot more than that. Just like George Bush Sr. used to talk about a rising tide lifting all boats (at least, I think it was Bush senior, although it could’ve been Reagan), a lowering tide is going to lower all boats as well, even well-captained ones.

    However, before you rush out to sell everything and put it in your mattress, it’s probably helpful to review the history of the market and what’s really going on. There are several reasons to stay the course with your chosen plan and not abandon ship just because the market is down, no matter how stressed out you may be right now.

    So, with that in mind, this is the first of a several part series I’ll be writing to hopefully help calm you down, and make you understand just what’s happening, and what YOU should be doing or not doing about it at this moment. In this installment, we’ll discuss the reasons for not selling in a panic right now.

    Reason #1: Historically, good markets last longer than bad markets.

    Since World War 2, the average bear market–which is what it’s called anytime the markets slide over 20% off of their highs–has lasted 332 days, or right around 20 months. However, the average bull market (what they call it when the market is trending up) lasts around 1,738 days or 57 months. Put another way, the average bull market lasts almost 3 times as long. So, the longer you are in the market, the more historical up days that you’ll have, by a margin of almost 3-1. So, even though it may seem like the end of the world right now, especially with what’s going on around us, the odds are still in your favor that you’ll have more days that you’ll make money than days you’ll lose money.

    Reason #2: Good markets tend to go up further than bad markets fall.

    Again, since WW2, the S&P has fallen an average of 34.1% during a bear market. However, the average bull market logs gains of 150%, which far outweigh those losses.

    So, following this, here’s a hypothetical example of how this would affect YOU:

    If you started this bear market with exactly $100,000 and it was all invested in an index fund tied to the S&P 500, you’d be down to around $64,000 as off close of business yesterday. Now, this doesn’t take into account fees or anything like that, I’m just trying to illustrate a point. Put another way, you’d be down just about the average of a normal bear market like we’ve been discussing.

    But, following this same historical average, if you stay put and ride out the storm, once the market turns around, by the time the next bull market is done, you would have around $160,000.

    So, you would have made all your money back, and then some. Now, remember, anything can happen, and as FINRA (the new name of the old NASD) loves to make us say: Past performance is no guarantee of future results. However, the reason there are averages in the first place in this life is because history tends to repeat itself.

    Reason #3: You’re already down, so you might as well hang tough.

    Another way of saying this is the old phrase ‘In for a dime, in for a dollar’. If you’re this far in, even if the market continues to fall or stay flat for some time, you’re better off riding it out than moving to some other investment, like cash or bonds.

    Here’s why: first, historically, you’ve already lost the majority of your investment that you’re likely to lose. Back to the averages: the market is down right now about the average that it normally falls during a bear market. So, realistically, how much further down can it really go? No matter what happens, it can’t go to zero, correct? Now, don’t get me wrong, it can still go down further. But right now, we’re sitting on what it averages going down. So, if you’ve been in the market more than 5 years, you’ve already been through this before and you’ve seen it recover with your own eyes on your own financial statements.

    Plus, once the market begins to recover, it often recovers quickly and extremely. Tomorrow, we’ll talk about the danger of missing the best days of the market, and how this can hurt your overall return dramatically. But, back to the history books again: once the market begins its turnaround, it typically takes an average of 23 months to get back to dead even. The next 34 months of the bull market on average are net gains on your portfolio.

    Reason #4: This isn’t any worse than what we’ve seen before

    Yeah, I know, you’re ready to throw rocks at me now, but I’m serious. See, every time something like this happens, everybody acts like it’s the end of the world. So, right now, y’all are getting worked up over the subprime mess, and the housing meltdown, and the credit crunch. Now, don’t get me wrong, it’s pretty bad. But is it really any worse than the DotCom meltdown coupled with 9/11 that we went through during 2000, 2001, and 2002?

    We tend to forget just how bleak everything looked back then. But it seemed like the end of the world then also.

    What about Black Monday in 1987, where the market fell 27%….in one day! That seemed like the end of the world also. However, what most people don’t remember is that the market still finished the year up, even though Black Monday hit in October.

    Yes, there have been some recent bank and brokerage failures, mainly due to these Wall Street asses thinking they’re smarter than everybody else. But is it really any different than the meltdown of Kidder Peabody? Or E.F. Hutton…remember them? Or Long Term Capital Management—the hedgefund that collapsed that everyone said was going to bring down the whole economy? And, I could go on and on, but the point is don’t look at this and think that we’ve never seen a crisis like this before. And you can’t tell me that this one is different because this one is global. They were ALL global at the time.

    (By the way, this is also why we do NOT use any of these Wall Street Morons to handle our clients’ money. We use boring Midwestern companies for the majority of our fixed money, and an Los Angeles based manager for the majority of our clients’ retirement assets: We want them as far away from New York as possible because we don’t want them infected by the incestuous thinking that goes on in Wall Street and that led to this mess in the first place.)

    So, I’m not going to give you some speech about tough times never lasting, but tough people do. However, I will remind you again that it’s not as bad as the media portrays it. Lately, there’s been talk about how this is as bad as the Great Depression; but again, the facts say something different.

    Right now, unemployment is right around 6%. Now, obviously, that sucks if you’re one of the 6%. On the other hand, during the depression, unemployment was over 20%…for three solid years. So we’ve got a long ways to go there.

    And right now, even with as bad as the housing market is—and no doubt, it will get worse before the dust settles—foreclosures make up only 3% of the total housing market. During the depression, it was over 50%. And, think about what happened before the housing market began to crash: it was fueled by ridiculous increases in housing values that were well above the averages. Even now, housing values are still well above where they started before the runup. They’re just off they’re highs.

    And, just like the dotcom runup of the late 90’s, anytime you have significant increases above the mean average, it has to be offset by similar significant decreases below the average to bring everything back to, well, average. If you went to church, they taught you the same thing: 3 years of feasting were always followed by three years of famine. So, what you’re seeing is some of the excess being cleared out of the system, but you are not seeing anything close to the Great Depression. At least not yet, so the comparisons are NOT accurate.

    My next article, which will come tomorrow or Friday, will discuss why you still need the stock market, even if your about ready to retire; why Suze Orman is a big hypocrite; and why the bond market is more treacherous than a psychopathic, cheating wife or girlfriend (substitute husband or boyfriend if you like).

    In the meantime, just be cool. You may be dying to get out of the market, just like an airsick passenger can’t wait to get out of the airplane. However, ripping open the emergency exit door and jumping out without a parachute isn’t the best way to get over that feeling. Neither is immediately selling everything you own just to get over your discomfort. In an upcoming article, I’ll also be discussing how to bail out of the market smartly if you really have had enough and can’t take it anymore, and what to do if you have a 529 college savings plan that’s down a huge amount, and why it isn’t the end of the world.

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    Are you stressed out by the stock market meltdown?

    September 19th, 2008

    Well, it seems that everyone’s a little jumpy these days. And who can blame us? With gas at around $4 a gallon, the price of oil skyrocketing (even if it’s been dropping lately, it’s still pretty high!), home values plummeting, banks failing left and right, and the uncertainty of who’s going to be the next President, it’s no wonder that the stock market is having an off year. So, if you’re concerned about your 401k turning into a 201k, here are some tips to help you weather the storm:

    • Keep everything in perspective. Stocks have had the highest rate of return of any asset class since the turn of the century, averaging 11.9%, but with that high rate of return comes the occasional down year. Remember that statistically, the market makes money 4 out of 5 years, but loses money the other year. Unfortunately, you never know in advance when the off year is going to strike, so you can’t pull your money out and put it in the mattress.
    • Continue to fund your retirement plans and your IRA’s. I heard someone say once that the stock market is the only thing that nobody likes to buy on sale. So, if you keep putting your money away, you’re buying shares cheaper and lowering your overall cost. The pros call this ‘Dollar-Cost Averaging’, and it makes sense.
    • Diversify your assets. Now, you’re not necessarily diversified if you have a bunch of mutual funds or stocks, because they may all behave the same at the end of the day. True diversification spreads your money out over several asset classes so that you’re protected against the downside of the market. A good plan should make you money during the good times and not lose it all for you during the bad times. Now is an excellent time to review and ask your adviser what they are doing to make sure you don’t lose your hard-earned money.
    • Keep 6 months cash on hand at all times. Cash, by the way, is NOT the same as having a home equity line available, because the home equity line can be shut down at any time. Cash IS money in your checking or savings account, the cash inside a cash value life insurance policy (which is safer than putting it in the bank. Call me if you want to know why), or money inside your mattress or buried in the back yard. Having 6 months cash around will help you survive any short-term emergencies like losing your job, or having a medical crisis, and it will ensure that you don’t have to liquidate your other assets when they’re down in value.
    • Spend less than you make. I know, this isn’t a fun one, in fact, it’s downright un-American! But if you follow these tips, you’ll avoid making major mistakes like having to cash in your mutual funds when they’re down in value, or emotionally reacting to every negative headline that hits the newsstands.

    Ron Caruthers is one of the  nation’s leading experts on all areas of tax, finance and college planning, and is the host of ‘The Ron Caruthers Show’ on KCEO Radio in San Diego. He is also the author of ‘What Your Guidance Counselor Isn’t Telling You’, due out in October. You can also view his other website www.CollegePlanningSpecialists.com. He can also be reached at 760-438-9095.

    Ron Caruthers

    www.CollegePlanningSpecialists.com

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