Al D’Amico’s Blog

WASHINGTON AP– The Federal Reserve has slashed a key interest rate by half a percentage point as it seeks to revive an economy hit by a long list of maladies stemming from the most severe financial crisis in decades.

The central bank today reduced its target for the federal funds rate, the interest banks charge on overnight loans, to 1 percent, a low last seen in 2003-2004. The funds rate has not been lower since 1958, when Dwight Eisenhower was president.

The cut marked the second half-point reduction in the funds rate this month. The Fed slashed the rate by that amount in a coordinated move with foreign central banks on Oct. 8.

In a brief statement explaining today’s action, the Fed said the “intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and business to obtain credit.”

The central bank said it had room to lower rates because the spreading economic weakness was lowering the risks that inflation would get out of control. Indeed, the weakness has caused dramatic declines in the price of oil and other commodities.

While many economists believe the U.S. has already fallen into a recession, they think the aggressive efforts by the Fed to cut rates and take other actions to unfreeze credit markets will keep the country from plunging into a prolonged and deep downturn.

The Fed’s action was expected to be quickly followed by a reduction by commercial banks in their prime lending rate, the benchmark for millions of consumer and business loans, by a similar half-point.

The sun is about to set on another season of Daylight Saving Time. In case you hadn’t noticed, Daylight Saving Time (DST) began earlier last spring and ran longer into this fall. But, alas, all good things must come to an end…and this year Daylight Saving Time ends Sunday, November 2nd.

The extra month that we enjoyed was actually the result of the Energy Policy Act, which was enacted by Congress back in 2005 and first went into effect last year. Originally, the bill was written to extend Daylight Saving by two months, but some very verbal opponents fought the change. Farmers say that DST has a negative impact on their livestock in general–as it is tough for them to adapt to the time change, and they consequently produce less milk, eggs, etc.

Because DST is not followed uniformly around the world, airlines claim that it might mean many missed international flight connections. Additionally, TV and Cable stations argued that they would lose viewers and advertising revenue, simply due to less time spent in front of the television because of more time spent outdoors in daylight.So a compromise of one additional month of DST was reached. However, Congress did retain the right to revert back to the old dates if the change proves to be widely unpopular, or if the energy savings aren’t significant.

Why is Daylight Saving Time Longer?

Despite the concerns listed above, Americans overwhelmingly like Daylight Saving Time. There is simply more sunlight in the evenings to enjoy the outdoors and get things done. Additionally, there may be emotional benefits, as we typically feel better with more daylight.

Plus, additional hours of daylight can help save energy on a national scale. Less electricity is needed, as fewer lights are turned on as early in the evening…and with energy costs so high, even a small amount of savings is very welcome.

And brighter is safer - studies have shown that the DST shift reduces traffic accidents. An increase in accidents in the dark mornings is more than offset by the evening decrease in accidents, due to the increased visibility gained with more sunlight. Halloween is also arguably safer. Child pedestrian deaths are four times higher on Halloween than any other night of the year. By extending Daylight Saving Time, however, trick-or-treaters are able to spend an extra hour gathering treats while it’s still light out. Candy manufacturers are happy too, as they’ve lobbied for years to have DST extended through Halloween.

A study by the US Law Enforcement Admin also determined that crime is consistently lower during DST, with violent crimes down as much as 10% to 13%. For many crimes, like mugging, darkness is a factor–so more light in the evening hours reduces these types of crimes.

Falling Back… Manually

Since DST has been extended, you’ll want to double-check all of your electronic devices and confirm that the time is correct. Although you may be accustomed to your computer and maybe even your digital clock in your car automatically updating, the recent change of dates for Daylight Saving Time may require that these devices be manually changed, as they now may NOT be ready to update to the correct time on the correct date!

So keep an eye on your electronic devices and remember to change your clocks on Sunday, November 2nd as we turn back the hands of time once again!

Identity theft is now passing drug trafficking as the number one crime in the nation–with more than 15 million victims every year. Rather than lie awake at night worrying and wondering if your identity has been stolen, you can actually take a simple step to protect yourself…it’s called a credit freeze (or, sometimes, a security freeze).

Here’s How It Works. When someone tries to open an account in your name, they’ll be stopped in their tracks. That’s because one of the first things a creditor will do before opening the account is pull a credit report. By having a credit freeze in place, creditors aren’t able to pull your credit report. And, since very few lenders will issue credit without first seeing a credit report, identity thieves can’t open fraudulent accounts using your name. However, when you want to apply for credit, you can temporarily lift the freeze using a PIN… thus, allowing your legitimate application to be processed.

The Flip Side. It’s important to remember that when the freeze is active, you’ll have to lift the credit freeze before you can purchase a car, get a new credit card, or refinance a mortgage. For most major purchases, this won’t be much of an issue. However, a credit freeze can be problematic if you want to open an instant credit card with a store.

To learn more about these issues and to find out if your state allows credit freezes, visit
www.ConsumersUnion.org/finance/creditfreezeinfo.htm.

You need to rent a car, but need a great deal. So you’ve spent hours online, and you finally feel confident that you’ve found that great deal. You’ve had five website windows open at a time, compared and contrasted, made your selection, finally finished filling out all the online screens, you’re ready to check out and sure you’re rounding the last bend…but then you come to a screeching halt. After all that work, you’re staring at a field asking for a promotional code, coupon code, or rate code. And all you can think is…after all that work! If I had that secret code it could potentially save me even more money on this rental rate, but I don’t know the code!

So before you even cross the start line, is there a way to save money and save time on car rentals? Better yet, how can you get your hands on those secret codes?

 If you need a rental car, you should start by checking out two links. First hit www.rentalcodes.com, and search for the current discount codes for all of the major rental car companies. The site clearly spells out the type of code being offered, when the code expires, and what type of car the discount applies to. Jot down a few codes for different rental car companies and then take a few minutes to do a little comparison shopping, by visiting www.bnm.com. This site gives an easy rental car comparison tool, as well as publishes last minute discount offers and even more codes. Here’s another hot tip: some of the agencies will give you an even deeper discount if you pay for the entire rental upfront.

And reserving the car isn’t the only place that you can save a few bucks. Consider these money saving tips when you arrive at the rental counter.

• Don’t accept the prepaid gas option unless you are certain the tank will be empty when you return the car. Although this can be convenient, it can also be costly. If you choose this option, it may cost you an entire tank of gas plus a service fee when you return the car, even if you only use a few gallons!

• Before you agree to the insurance option at the counter, know the details of your own auto insurance policy. If your auto policy has collision coverage, skip the insurance option. It can save you $20 or more per day.

• Take the time to walk around the vehicle and note all the dings and scratches. This will save you the headache of being charged for damage that may not have been done while you had the car in your possession.

With gas prices at their current high levels, taking advantage of the above tips will help save you a few needed bucks…and may even provide a deep enough discount for you to upgrade to that sassy convertible! 

For credit-challenged folks, FHA has become the “new sub-prime.   FHA can often get Borrowers into a home when they qualify for no other conventional product.  

10 Fast FHA Facts:  

1) Low Credit Scores are considered, FHA will often accept “Alternative Credit” 

2) Options for Little or No Down Payment 

3) 97% LTV on Purchases with Gift, or Seller Credit (Down Payment Assistance Program no longer available) 

4) Non-Occupying Co-Borrowers OK 

5) Up to 75% of Rental Income OK (most Lenders) 

6) No Reserve Funds Needed 

7) Sourced Gift Funds Allowed, Often Without Seasoning 

8) Up to 6% Seller Assistance OK 

9) No Arbitrary Limits on Cash Out Amounts 

10) Letter of Explanation Considered on Conditions 

 Let me know if you have any questions!
Al D’Amico
310.544.7511

Nothing puts a bigger damper on the fun than leaving for the airport with ample time to check in and board your flight, only to arrive and find out that your flight is delayed…or worse yet, cancelled. When you combine the increase in travel demand with the decrease in available aircraft–due to airlines trimming the fat and cutting back on scheduled flights–there are bound to be delays and cancellations. But doing a little planning in advance could help minimize the turbulence with your summer flight plans.

Here are a few tips:

1. Reservations: Just as the old saying goes, “the early bird catches the worm”. When it comes to air travel, the early bird catches the flight. Booking an early morning flight may decrease the chance of dealing with flight delays or potential cancellations. Most thunderstorms happen in the afternoon, and booking early flights will help you avoid being stuck in the airport waiting for a storm to pass. And if your morning flight is cancelled, you will still have the afternoon to try and reschedule your flight plans. Additionally, if your flight schedule requires a connection to another flight, be sure and leave enough time in between flights to make your connections, factoring in the possibility of a short delay.

2. Check In: Save yourself some time by obtaining your boarding pass online. Simply log onto the airline’s website and print your boarding pass before leaving your home or office, up to 24 hours in advance. You will improve your chances of getting a better seat by checking in early, plus save time and hassle at the airport by avoiding the kiosk or check in lines. Even if you are checking luggage, most airlines have a designated area that you can check in luggage only and avoid the boarding pass lines…or check your luggage curbside, and you’re ready to head to your gate with no lines at all!

3. Luggage: But where luggage is concerned, try to travel light and carry on your luggage if possible. Carrying on your luggage will save you time hanging around baggage claim when you land, and avoid the headache of trying to retrieve luggage if it is lost. When you are carrying luggage on, be sure to be in line to board as quickly as you can - as overhead space can fill up quickly, and you might be forced to check bags anyways.

4. Airport / Flight Status: While you’re printing that boarding pass out, you can also obtain information about airport delays by hitting www.fly.faa.gov. Or another great site to obtain information about airport delays or to check flight status is www.FlightStats.com. You can even sign up for FlightStats electronic alerts, and receive notifications about flight delays or cancellations via email or text message. Most airlines have flight status on their websites as well, which can also be very handy if a friend or family member is picking you up at the airport.

5. Weather: Log onto www.weather.com to check the weather in the city you are departing from as well as in the city you will be arriving at, to help determine any potential travel delays due to weather conditions. It’s also helpful to know weather conditions for your destination, so you can pack appropriately.

6. Security: Even if your flight is on time and there are no delays, long lines at security checkpoints could delay you enough to cause you to miss your flight. To find out how long it may take you to get through security, visit http://waittime.tsa.dhs.gov/index.html. And a few hints on getting through security quickly - be prepared. Before you step up to the security table, remove your belt, shoes, cell phone, jewelry, keys and change from your pockets. Remove your outer jacket and place in a bin with your other belongings. Make sure your laptop computer is out of its case, and lying flat and unobstructed in its own bin before sending it on the conveyor belt through security. Keep your boarding pass in hand for the TSA agent to review - don’t put it on the conveyer belt. Be aware that if your boarding pass is marked with “S’s”, you have been randomly selected for a full screening, and sh ould allow more time.

As you pass through the metal detector, be sure not to brush against the sides, as this will set off the alarm. Metal detectors work by measuring the aggregate amount of metal you are carrying as you pass through, and some machines have higher sensitivity than others. If your metal content exceeds the limit, the machine will beep and you’ll get one more chance through. This time, be careful in trying to remove as much metal as possible, because if the alarm goes off a second time, you will have to go through the full body screening, which could delay you further. And if you do get selected for “special screening”, be cooperative with the agent. They are just doing their job and working to keep passengers everywhere safe.

Taking the above steps will not eliminate delays all together, but will certainly help you avoid having to spend a good part of your vacation in a terminal. Bon Voyage! 

These days, many people are looking for new ways to cut costs and save money. Here are five great ideas from the editors of Kiplinger:

Free TV & Movies: Full episodes of more than 300 shows from NBC Universal and Fox stations are available on www.hulu.com. The site also offers over 165 free full-length movies in a variety of genres. In addition, other networks like ABC and CBS are also starting to post full episodes of various shows on their Web sites.

Free College Savings: Sign up at www.Upromise.com and you can turn everyday purchases into college savings. You’ll earn cash rewards for eligible purchases of groceries, gas, dining out, travel, and online shopping. The money is then automatically transferred to your child’s 529 account. In addition, your family and friends can help, too, by linking their rewards to your Upromise account.

Free Directory Assistance: The next time you need to call 411, dial 1-800-FREE-411 instead for free directory assistance for both residential and business listings. While you may have to listen to a short advertisement after the voice prompts, you will still save a few dollars.

Free Credit Report: By law, you can receive one free credit report once a year from each of the three main credit bureaus. Visit www.annualcreditreport.com to request your report.

Free Recipes: Need some inspiration in the kitchen? Check out www.allrecipes.com and www.Epicurious.com where you can access over 100,000 recipes for all kinds of meals…no matter your level of expertise. You can search by meal, occasion, or ingredient, and there are plenty of user reviews and cooking demonstration videos to help.

For twenty-five more great freebies, visit www.kiplinger.com/features/archives/2007/08/free.html.

The Al D’Amico Real Estate Team
310.544.7511

Unless you drive a hybrid car or ride your bike to work, there’s no way to escape the high gas prices. But there are ways you can get better gas mileage out of your vehicles – which will save you money in the long run, according to Edmunds.com, an online resource for automotive information.

Here are 10 ways to help you get better gas mileage:

1. Follow the Recommended Maintenance - A well-maintained vehicle will operate more efficiently. Fouled spark plugs, dirty air filters and clogged fuel filters will diminish fuel economy.
2. Keep Tires Properly Inflated - Under-inflated tires require more energy to roll; properly inflated tires can improve fuel economy by as much as 3 percent.
3. Take a Load Off - Heavier vehicles require more energy to move. Pack light and remove unnecessary items from the car.
4. Don’t Drive Aggressively - Hitting the gas pedal hard after stopping, slamming on the brakes and speeding all decrease fuel efficiency.
5. Use the Highest Gear Possible - Lower gears use more power, so manual transmission drivers should switch to a higher gear when driving at a steady speed, and automatic transmission drivers should avoid using “sport” mode.
6. Use Cruise Control Selectively - Cruise control is a great asset on flat roads, but isn’t the most efficient on hilly terrain.
7. Think Clean - Keeping your car washed and waxed improves its aerodynamics, thereby improving fuel efficiency. On a long trip, a quick run through a gas station car wash might more than pay for itself.
8. Avoid Excessive Idling - An idling car burns fuel. Whenever possible, turn your car off while waiting, and try to avoid drive-through windows and long toll booth lines.
9. Think Before You Ventilate - Air conditioning consumes more fuel, while rolled down windows decreases aerodynamics. Roll down windows when in slow-moving traffic; use the air conditioner when traveling at high speeds.
10. Combine Your Errands - Cold engines use more fuel than warm engines. Combining errands means the engine will be warmer for more of the trip.

Hope this helps! 

If you know of anyone that needs real estate help - let us know!

Al D’Amico

Don’t miss this unique opportunity to visit the working studios of 9 area artists on the beautiful Palos Verdes Peninsula. 

October 4 & 5 from 10am-5pm you may visit all the studios or just one.  Enjoy conversations with the artists, see where they create their art and view a large collection of their work. 

The artists include:

• Nancy Backes
• Lois Barnes
• Elma Beck
• Don Crocker
• Bridget Hardenbrook
• Lois Olsen
• Karen Pester
• Margaret Schultz
• Jody Wiggins

Tickets are $20 in advance or $25 the day of the tour.  Proceeds benefit the programs of the Artists’ Studio.

For further information or to charge tickets by phone, call The Artists’ Studio at The Village, 310.265.2592 from 11am-6pm Monday-Saturday or 12-6pm on Sunday.

If you know of any other exciting events coming up - we’d love to hear about them!

Friends,

I came across this information and found it very useful given today’s economy…

Unless you drive a hybrid car or ride your bike to work, there’s no way to escape the high gas prices. But there are ways you can get better gas mileage out of your vehicles – which will save you money in the long run, according to Edmunds.com, an online resource for automotive information.

Here are 10 ways to help you get better gas mileage:

1. Follow the Recommended Maintenance - A well-maintained vehicle will operate more efficiently. Fouled spark plugs, dirty air filters and clogged fuel filters will diminish fuel economy.
2. Keep Tires Properly Inflated - Under-inflated tires require more energy to roll; properly inflated tires can improve fuel economy by as much as 3 percent.
3. Take a Load Off - Heavier vehicles require more energy to move. Pack light and remove unnecessary items from the car.
4. Don’t Drive Aggressively - Hitting the gas pedal hard after stopping, slamming on the brakes and speeding all decrease fuel efficiency.
5. Use the Highest Gear Possible - Lower gears use more power, so manual transmission drivers should switch to a higher gear when driving at a steady speed, and automatic transmission drivers should avoid using “sport” mode.
6. Use Cruise Control Selectively - Cruise control is a great asset on flat roads, but isn’t the most efficient on hilly terrain.
7. Think Clean - Keeping your car washed and waxed improves its aerodynamics, thereby improving fuel efficiency. On a long trip, a quick run through a gas station car wash might more than pay for itself.
8. Avoid Excessive Idling - An idling car burns fuel. Whenever possible, turn your car off while waiting, and try to avoid drive-through windows and long toll booth lines.
9. Think Before You Ventilate - Air conditioning consumes more fuel, while rolled down windows decreases aerodynamics. Roll down windows when in slow-moving traffic; use the air conditioner when traveling at high speeds.
10. Combine Your Errands - Cold engines use more fuel than warm engines. Combining errands means the engine will be warmer for more of the trip.

Let me know if you know of any more ways to get better gas mileage.

Al D’Amico
The Al D’Amico Real Estate Team