Holiday ambiance: making a Clementine candle

1) Cut through only the skin of the clementine crosswise.

2) Next, CAREFULLY peel the skin off of the top of the tangerine first keeping the skin totally intact so that you get a half sphere of skin. The top is the half with the stem.

Pay extra attention when you get to peeling the part below the stem where skin connects to the fruit. There is a piece of white "stuff" extending from the skin into the center of the fruit. You want to preserve most of this piece. It will be used as the wick for the candle. If you peel it, and don't get a good wick, you'll need to start with a new clementine.

Now peel the bottom half of the tangerine the same way. The bottom half is the one without the stem.

3) Now, cut a hole (be creative in your pattern!) in the non-stem half of the tangerine. This will serve as the "top" of the candle and the hole will allow the heat and the flame to escape.

4) Now your ready to add the fuel (the olive oil).

Pour a small amount of the olive oil in the half of the tangerine with the wick. You only need to fill the bottom with 1/8" - 1/4" (about 5mm) olive oil.

If your wick is short, you'll only want to fill the oil up to about 1/8" - 1/4" (about 5mm) below the wick.

If your wick is too long (like mine) you'll want to cut the wick so it is about 1/8" - 1/4" (about 5mm) above the oil.

5) Lastly, light your candle! Take the matches (or a lighter) and hold it to the wick. Because the wick is still slightly damp, you'll need to hold the flame on it for a few seconds to dry it out and let it soak up the oil.

Once the wick stays lit by itself, place the other half on top and enjoy.

The bottom half of the candle should last a long time because the oil soaks into the skin and preserves it.

Important note: Like any object that has a flame, be careful not to leave your candle unattended!

Enjoy!!

contributed by KF, San Jose, CA

Are you ready to close out 2011?

Year-end is characterized by family, friends and celebration, but if you can pull yourself away from the merriment for a bit to do the below financial diagnostic before you bring in the New Year, it could pay off in spades.

Spend your Flexible Spending Account (FSA): Any money left in your
FSA at year-end is gone forever, so check your balance and look for ways to
use it.

Pay your state income taxes: You may be eligible to use your state income tax payment as a tax deduction if you pay it before year-end.

Prepay your property tax: Property taxes are a tax deduction, so consider paying your 2012 property taxes this year.

Make your charitable contributions: If you are charitably inclined and can use the tax deduction, be sure you make your contributions by year-end to be captured on this year’s tax return.

Give money to those you love: The annual gift exclusion allows you to give up to $13,000 to as many people you want in 2011 without a tax implication to you or the recipient. This can be a great way to help family members while reducing your estate if you are worried about estate tax.

Take your required minimum distribution: If you are subject to a required minimum distribution (RMD) from your retirement assets, unless it is your first RMD, you need to take the distribution before year-end or suffer a 50% penalty on the amount you should have taken.

Take investment losses: If you have realized investment gains for the year, now is the time to take some losses to offset those gains. If you overdo it, $3,000 in losses can offset income and any excess is carried forward.

Maximize retirement plans: Aside from some retirement plans like IRAs, which permit contributions until April 15th, others like 401(k)s and 403(b)s only permit contributions through year-end, so your year-end paycheck is your last opportunity.

Review your W-4: If you are having too much withheld from your paycheck you are simply giving the government an interest free loan and if you aren’t having enough withheld you may be subject to penalties, so be sure you W-4 elections are accurate.

Review your debt: With interest rates at amazing lows it is a good time to review any mortgages, credit card debt, auto loans and school loans to see if there are opportunities to consolidate or refinance.

Inventory your estate plan: Check that you have a Will, a General Power of Attorney, a Health Care Power of Attorney and if appropriate, a Trust.

Review the key people of your estate plan: Ensure the people you have selected as guardians, conservators, executors, trustees, general power of attorney, health care power of attorney and successor 529 plan owners are as you wish.

Review the beneficiaries of your estate plan: Ensure the people who are in line to receive your tangible and intangible assets are as you wish and that they will receive them as you wish (i.e. outright or at a certain age).
Review your insurance coverage: Dust off all of your insurance declaration pages to ensure they are still commensurate with you needs for protection.

Review your investment asset allocation: Asset allocation is your mix of stocks, bonds, cash, real estate and alternative investments. As markets oscillate, your asset allocation can go askew, so check to see if rebalancing your asset mix is appropriate to better align it with your needs.

Review your investment asset location: You’re not reading the same thing twice! This is location, not allocation. Asset location is placing your various investments in the right portfolio for tax advantages. For instance, investments that generate income and are taxed at your marginal rate are generally better off being placed in retirement accounts that defer or avoid tax. On the other hand, investments that generate capital gains, which are taxed more favorably, should be placed in taxable accounts as opposed to tax deferred accounts in which capital gains are converted into income.

Review your life goals and values: Money is not a goal, but rather a resource to achieve your goals. Revisit what is important to you in life and do a sanity check on your financial affairs to ensure they are congruent with what you are trying to accomplish.

Each of these items are highly dependent upon individual circumstances, so be sure to review these considerations with your financial, tax or legal advisors.

Contributed by Kevin Mahoney, CFP^®, Integris Wealth Management

Are you overestimating the value of your home?

Home values, over the past few years, have continued to decline as we face a lengthy housing recovery. This can be especially true if a home was purchased prior to 2008.

First, let’s look at some of the current lending guidelines in place and how they are impacted by the appraised value of your home. If the loan-to-value (the loan amount against the value of the home) exceeds 80%, Private Mortgage Insurance may be required, which is an additional monthly payment that protects the lender in the case of default when you have less than 20% equity in your home. Private Mortgage Insurance is automatically cancelled at 78% loan-to-value (22% equity), and can sometimes be removed 80% loan-to-value (20% equity).
Even more daunting, if the loan-to-value exceeds 96.5% (FHA) or 95% (conventional), we may not be able to qualify a borrower for one of our loan programs. This is why it is important, as an informed borrower, to not only find the right lender to work with, but to do some homework as well.

How do you avoid starting the refinance process only to find out you will pay mortgage insurance or you don't qualify at all? Try using the different tools outlined below to obtain an estimate of your home value. Here are some suggestions:

1. Zillow.com - http://www.zillow.com

2. Yahoo! Real Estate Home Values - http://realestate.yahoo.com/Homevalues

3. Contact a local real estate agent to find comparable home sale values.

4. Contact Mortgage Capital Associates, and we can use some tools and appraiser resources available to us.

Good luck!

What your credit report tells a lender

If you need a loan, whether to buy a new home or refinance an existing property, you need to understand your credit and its impact on what a lender is looking for. This is especially the case in today’s market, where qualifying for a mortgage is not as easy as it was just a few short years ago.

You credit score* is used to determine how much of a credit risk you are. Do you fit a profile that shows to pay back the loan? Do you have collections accounts outstanding or account delinquencies? Is your credit score high enough to qualify for the loan program you are seeking? Your credit score and the information presented in your credit report help to answer these important questions, which goes a long way in determining whether or not a lender will lend you the funds you need for your home loan.

Here are the areas lenders take into consideration:

1. Credit History
Lenders want to see a consistent track record for paying back your debts. The longer and more consistent the track record, the better. On the other hand, your credit score will decline if you've had any of the following: bankruptcy, foreclosures, collections, judgments, defaults, liens (all are indications that you've either not payed a creditor money owed them). If a lender sees this, they will assume you are a higher risk for defaulting which will make it less likely they will be willing to lend to you.

2. Your Debts
The Debt-To-Income (DTI) ratio is a ratio lenders use to calculate how much you owe for monthly debt obligations vs. how much you earn in monthly income (after tax). Typically, this ratio should be no more than 45% (for a Fannie Mae approved loan). For example, if your monthly after-tax earnings are $5,000, then the amount you spend on monthly debt should be no more than $2,000 (including your monthly mortgage payment, property taxes, and homeowner’s insurance).

3. Payment Track Record
Do you pay your bills on time? Do you pay regularly? Your credit report will indicate the length and quantity of any delinquencies that are reported by your creditors. Just one missed credit card payment can lower your score - so make sure you're paying your bills on time!

4. New Account Activity
Any activity in which you're trying to obtain a new line of credit (i.e. an auto loan, credit card, etc.) is reported and captured on your credit report. Even if you aren't approved or choose not to use it - opening a new credit account can lower your credit score. So don't apply for every credit card deal you see - you may be harming your credit score. If you are in the middle of obtaining a loan from a lender, you should avoid opening any new accounts while your loan application is being processed, as any new accounts that you open could negatively affect your qualification by raising your DTI or reducing your credit score.

5. Variety of Credit
Lenders want to see that you've had a variety of credit - it helps round out your credit background. But not all credit is equal. For example your payment history on a mortgage payment has more weight than your history payment on a credit card.

Rules of thumb:
- Don't bite off more than you can chew: Be aware of how much credit you're using in relation to your income. Also, don't apply for a lot of credit, especially if you don't have a good reason to.
- Pay on time! While this might sound overly simplified, one late payment could negatively affect your credit score.
- You may need to establish more credit history. If you don't have variety in your credit, ask a professional (your mortgage broker or loan officer) for tips on ways to improve your credit history.

Remember, for a home loan: Good credit = Good rates!

*A statistically derived numeric expression of a person's creditworthiness that is used by lenders to access the likelihood that a person will repay his or her debts. {Source: Investopedia.com}

Kale and Quinoa Salad

P-Lo's Kale and Quinoa Salad
from our "Home and Lifestyle Tips"

Many times, people want to include Kale in their meals, but often don't know what to do with it. Here is a delicious, yet hearty kale side dish that's sure to please.

1 cup quinoa
1 lemon
2 bunches Kale (washed thoroughly and cut into bite-sized pieces)
1 red onion (chopped finely)
2 teaspoons olive oil (or butter)
1/2 teaspoon cumin

1 small tomato - finely chopped
1/2 teaspoon salt

Cook quinoa according to package instructions. Replace a part of the water requirements with the juice of one lemon.

While the quinoa is cooking, in a pan, cook chopped onion over medium heat in oil until they start to brown then add in cumin and mix well. Set aside.
Chop tomato and mix in salt. Set aside.

Steam kale lightly. Be careful not to over-steam - kale will steam quickly. (Tip: leaves should not be wilted - and should be vibrantly green.)

When the kale is ready, mix all ingredients together and serve immediately. A delicious and healthy side dish!

contributed by LW, San Jose, CA