ET CETERA            Hopefully useful and informative information    ·        The number of people in the U.S. with "past due" balances on their credit card bills rose to a record in the second quarter this year. A record 4.82% of credit-card accounts were past due in the second quarter, up from 4.76% in the first quarter.   ·        By taking small steps to improve their credit scores, consumers as a group could save billions of dollars each year, according to a new study that sheds light on the widespread confusion over credit scoring. The study, released on September 20 by the San Francisco-based card issuer Providian Financial Corp., analyzed industry data on 352 million credit card accounts to determine the average daily balance, interest rate and credit limit for a broad range of consumers across the credit score spectrum. Based on this information, the study found that consumers could save an average of $76 annually on credit-card finance charges - or $16.4 billion in total - by making a 30-point improvement in their credit score.   The three-digit credit score, which typically ranges from 300 to 850, is the most widely used measure of a person's credit risk. Consumers with high scores - the current U.S. average is approximately 723 - have an easier time securing low-interest loans and other favorable terms on credit.   Consumers can obtain one free copy of their credit report from the three major credit bureaus each year. Go to www.annualcreditreport.com.   Credit scores, often referred to as FICO scores because they were pioneered by the Fair Isaac Corp. in the late 1950s, have been marketed to consumers only for a few years.   [Editor's Note: A 2004 survey shows that the percentage of people who obtained their credit score increased to 31% from 24%.   ·        China is expected to introduce higher automobile taxes soon to push Chinese buyers toward choosing vehicles with smaller engines, in line with efforts to improve energy conservation and fuel efficiency.  China currently has a one-time consumption tax ranging from 3% to 8%.   ·        It happened with technical support, financial services, tax return preparation and catalog order-taking. Now, a growing number of U.S. and British companies as well as law firms are outsourcing legal work to India.   The Wall Street Journal (September 28) noted that "the practice started a few years ago with simple word processing and filing services performed by nonlawyers. But increasingly, squads of experienced but inexpensive lawyers based in India are doing things ranging from patent applications to divorce papers to legal research for Western clients."   ·        Congress gave final approval (October 20) to legislation that would bar lawsuits against the firearms industry arising from gun violence. The measure passed the House 283-144. The Senate passed the bill in July. The law prohibits lawsuits against manufacturers,  importers and dealers where criminal wrongdoing is found. Gun manufacturers and dealers still would be subject to product liability, negligence or breach-of-contract suits.  The bill now goes to President Bush for his signature.   ·        Its seems like everyone has a list. Money magazine (August 2005) announced the ten Best Places to Live. The list included:   Moorestown, New Jersey Bainbridge Island, Washington Naperville, Illinois Vienna, Virginia Louisville, Colorado Barrington, Rhode Island Middleton, Wisconsin Peachtree City, Georgia Chatham, New Jersey Mill Valley, California   ·        Even with a planned postage rate increase, the Postal Service expects to go nearly $2 billion in the red next year. Postal Chief Financial Officer Richard J. Strasser told the agency's board of governors (September 27) that rising costs will result in a $1.8 billion deficiency in 2006.   The Postal Service plans a 5.4% rate increase in January, which would raise the cost of sending a first-class letter by two cents, to 39 cents.   ·        The average number of days that it took for an American company to fill a job vacancy in 2004: 48 Source: PWC   ·        Two years after the National Do Not Call Registry took effect - and with more than 100 million numbers enrolled - dinner-time conversations are still being interrupted by telemarketing calls.   Regulators say the system is working, but a survey by the Consumer Care Alliance found that 51% of the registered consumers say they're still getting calls they think the list is supposed to block. Lois Greisman, the Federal Trade Commission official in charge of the registry, says the agency receives a "steady flow" of between 1,000-2,000 complaints about telemarketers every day.   Do-Not-Call Tips:   Sign up for the National Do Not Call Registry at www.donotcall.gov, or call 1-888-382-1222.   Tell callers to put you on their company's do-not-call list, which they must maintain by law.   Sign up for your state's do-not-call list.   Get on the industry's list at www.dmaconsumers.org/cgi/offtelephone.     ·        The U.S. government for the first time is spending federal dollars to promote the USA abroad. Foreign tourism to the USA still has not rebounded to pre-September 11 levels. The federal government is spending $6 million on an ad campaign in the United Kingdom, the USA's No. 1 overseas tourist market. The government will spend $10 million next year in the U.K. and Japan, the No. 2 overseas market.   Canada and Mexico are the No. 1 and No. 2 foreign markets but aren't considered "overseas."   ·        Roughly eight in ten baby boomers plan to do some type of paid work during retirement. But only about a quarter of current retirees have worked for pay since quitting their jobs.   How baby boomers plan to spend retirement:   42%   Work and leisure 17%   Never work for pay 16%   Work part-time 13%   Start their own business 6%     Work full-time 6%     other   Source:  The Merrill Lynch New Retirement Survey   ·        If you have a baby at 40, can you still retire at 60? It just got a lot more difficult. You've narrowed the time frame, so if you retire at age 60, your child would be smack-dab in the middle of college.   Greg Reed, a financial planner with Smith Frank & Partners in Dallas, Texas ran the numbers for a hypothetical couple and reached the following conclusion: Retire at age 67, when full Social Security benefits kick in.   Assumptions: §        Ages:                                   40 §        Husband's Income:              $90,000 §        Wife's Income:                    $35,000 §        Joint Retirement Savings:      $150,000 §        Annual Pay Increases:          3.5% §        Annual increase in Tuition:    6.0% §        Return on retirement and §        College Savings:                   8.0%   New Recommended Expense         Cost per Month   Increased 401(k) or IRA                                              $1,000 (up from $520)   College Fund                       $365 (could produce $60,000)   Life insurance - Husband      $122 (20 year policy worth $1 M)   Life insurance - Wife  $53    (20 year policy worth $500,000)   Disability insurance - Husband $104.24 (5 years of $4,000 a month tax free income)     ·        5.7%:           The increase in medical-malpractice payouts by 15 leading insurance companies (2000-2004)        120%:          The increase in the net premiums collected by those 15 companies (2000-2004)      ·        Amtrak, the national passenger-railroad operator, began implementing a series of fare increases in October in order to offset the rising cost of fuel. Citing a 40% rise in fuel costs this past year, Amtrak said (September27) that fare increases will be implemented on a tiered basis, starting with an average $3 to $4 rise in general fares (October 4). Acela Express ticket prices will rise 7%, Regionals 5%, long-distance coach 7% and long-distance sleeper 5%.   ·        In early 2006, discount giant Southwest Airlines will start flights to Denver, a high-fare market and one of the biggest cities where the Dallas-based carrier doesn't go. Southwest pulled out of the former Denver Stapleton airport in 1996 because of congestion, delays, weather and cost. Stapleton's replacement, Denver International Airport, is less prone to congestion. Ten-year old Denver International initially cost airlines $20 a passenger to operate there. The cost has dropped to less than $9 a passenger.   ·        Three airlines known for cost-consciousness have reported profitable 3rd quarters. While Southwest, Jet Blue and Alaska Airlines all reported positive quarters, each of the carriers are feeling the effects of high jet fuel prices.   ·        Independence Air, hoping to economize on costly fuel and cut its overall expenses ahead of the slow winter travel period, said it will shrink its daily schedule to 225 to 250 flights a day this month from its current 350. The move, which FLYi Inc., the parent company announced on September 26, will lead to discontinuation of service to nine airports by December 1 and possibly a reduction of the fleet.   ·        A newly designed $10 bill was unveiled on September 28 featuring splashes of orange, yellow and red to go with the traditional green.   ·        The $10 bill is the third denomination to be jazzed up with colors as part of the government's effort to thwart counterfeiters. The $10 makeover followed changes to the $20 bill in 2003 and the $50 bill in 2004. The new $10 bill won't go into circulation until early 2006.   ·        The next bill to get color treatment will be the $100 bill (2007). At present, there are no plans to add color to the $1, $2 or $5 bills.   Finally, for the golfers   Don't buy a putter until you've had a chance to throw it   Questions? contact Jim Kelly 949-709-3800 or email jim@jimkellyCPA.com