Most of you probably have some semblance of an investment account, whether that be and IRA or 401K. If not, you should open one. Check About’s site for more information. I’m going to assume these accounts of yours are losing a lot of money right now. If not, I want to see your portfolio! On average, retirement accounts are down at least 20% from 2008. However, you may want to check your account to see if you are investing in mutual funds. What are they? Well, in short they are “professionally managed type of collective investment schemes that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities” - Wiki’s definition, not mine.

What they forget to tell you about mutual funds is that they are basically stock plans that are bound to do worse than the stock mark index and will charge you fees on top of it. In 2008, most funds, even the top rated funds had terrible returns. For more see the NYT article. What many people don’t know about their mutual fund is how often and when they will be charged fees. And since everything is in one retirement account, which is already under a fee schedule, it can be hard to account for.

To start, if you have a mutual fund look up everything you can regarding its fee structure and performance. My advice, sell the fund and trade it for an index fund. Index funds are not actively managed but automatically track the stock market so they by default have lower fees. [For more info check About’s site.] Even the best mutual fund managers have trouble beating the index fund and you will be bound to see a greater return on your investment with one. Sure the market is terrible right now, but it will get better and by ridding yourself of mutual funds, you can maximize your investments now.

From the NY Times today - capitalism is not dead, ladies!  Seed funding for NY-grown tech companies.  

If you are anything like millions of Americans out there, you are probably staying as far away from the stock market as you can. However, you will likely agree that the stock market reacts on fear. It also reacts on speculation. If you can handle the wild ride and avoid the fear and speculation, you beat out a lot of competition and stand to make yourself a few bucks in the stock market. My inspiration for this post came as I was watching CNN this morning. One of the top headlines read, “Yesterday’s Biggest Losers, Some of Today’s Biggest Gainers” in reference to the stock market. And it’s not the first time I’ve heard this story.

Many friends of mine have curbed spending and investments because they are reacting on fear from the media. In my last post, I wrote about how we must look beyond the negative in to media to see the positive in our current economic situation. I understand people have lost their jobs, as I am in the same boat myself, but if the unemployment rate is 10.5% that means 89.5% of people are still employed. Many of these people are making the same or greater salary as they were last year. While it is always a good idea to curb “frivolous spending” there is no reason to stop investing especially when stocks that would otherwise be robust have crashed due to fear.

Take a look at the stocks that have had a beating during the last few years and evaluate their valuation. Not to mention, there are “bargain stocks” out there right now. If you have a retirement plan, or IRA, do NOT stop your contributions. Now is the best time to cash in on low stock prices before they start regaining value but do so with great research and investment on your part.

Addressing the concerns of crafters and artisans:  Consumer Reports:  The Consumer Products Safety Commission (CPSC) has extended a one-year delay in implementing the Consumer Product Safety Improvement Act (CPSIA).  This Act was intended to increase product safety in products geared towards children with respect to such hazards as lead paint.  However, it would have severely hurt small toy, clothing and craft businesses by implementing expensive testing and standardization (even for, say, those who didn’t use paint in their goods).  The provisions regarding lead paint prohibitions for certain children’s products remain in full effect.  So, don’t go shutting down your Etsy store, crafters!  

 Fair Pay, Okay!  In one of his first Presidential acts, President Obama signed the Lilly Ledbetter Act into law.   As discussed earlier in this blog, this act will allow suits to be brought to bring pay equality in the face of gender disparity (reducing a Supreme Court decision which made it harder to do so). 

Don’t Get Overtaxed!  It’s that time of year - after you digest your Superbowl wings, and heed the call of the groundhog, you business owners may want to be considering your tax filings.  Here’s some year-end tax tips you may find useful!

Girl Power - A Young Woman’s Perspective I came across this article in the New York Times and thought it was worth sharing; equality in academia giving a young woman a bit of a shock - and changed perspective - in the gender-unequal workplace.  NYT: Girl Power at School, but Not at the Office  
Mompreneurs - Running a Home and a Home Business
This was on NPR this morning, and intrigued me.  Here’s a web site that focuses on this growing trend of stay-at-home moms who are actively growing home businesses. 
Fair Pay on the Way
The Lily Ledbetter Fair Pay Act - designed to help remedy pay disparities between men and women - passed the Senate.