Do You Want to Play the Lottery and Never Lose?

Who doesn't like to play the lottery?  But how often do you actually win something? Oh, maybe you win a few dollars here and there.  And don't you just hate it when you lose  What if I told you that there is a lottery that you can enter that you never lose?

The answer lies in something called Prize-Linked Savings Accounts. What, you have never heard of them? You are not alone, neither have most people.I discovered them recently when I came across a reference to them in the editor's note to the December 2013 Money Magazine.  Intrigued, I did a little research and was quite astonished how simple and useful they are as savings mechanisms and as a means of satisfying that inner voice that insists that the next time I play the lottery, despite all the evidence to the contrary, I will win big.

Prize linked savings accounts are savings accounts offered by banks, credit unions and local and national governments which pay little or no interest, but which are eligible for participation in a lottery, where the   proceeds of the lottery are paid from earnings on the deposits. In other words, the savings portion of the account is never touched, but if lucky enough, you may win money with absolutely no risk of losing any of your savings. Sound too good to be true?  Well, in Europe and elsewhere, they have been offered since at least the mid 1950s.

In Great Britain, which was one of the first countries to adopt the accounts, it has been shown to have substantially increased the amount people have saved. It is estimated that more than 25 billion pounds have been saved by people in Great Britain since the program was initiated there.

While many states in the US consider these accounts to be a form of illegal gambling, four states, Michigan, Nebraska, Washington and North Carolina permit these types of win-win lotteries.Consideration is being given in other states as well to allow these accounts including Connecticut, Massachusetts, Rhode Island, Maine, Mississippi and Maryland.

I don't know about you, but it seems to make a lot of sense to permit these types of accounts. After all, most states now permit certain types of lotteries and many allow casinos. With the personal savings rate in the US an  abysmal 2 to 3 percent, the Prize-linked savings account may just be the motivation needed to improve that rate. This step not only gives the state's residents a chance to win money, it guarantees that none of the money deposited will be lost.

Sources:  Money Magazine, The Financial Brand

The Latest Superfood: Eating Nuts May Save Your Life

In a study released yesterday in the prestigious New England Journal of Medicine, researchers from the Harvard School of Medicine concluded that eating as few as one ounce of nuts each day can reduce the likelihood of dying from heart disease by as much as 25%, cancer by 10% and 20% from diabetes and lung disease.

The study showed that all types of nuts were able to bring about these effects: walnuts, almonds, cashews and even peanuts. The researchers also concluded that the desired effects could be achieved regardless of whether the study participants exercised or were overweight.

The Harvard study actually confirmed a 10 year old study by the US Food and Drug Administration.

According to the researchers, the beneficial effects of eating nuts is derived from the substantial amounts of folate, potassium, fiber, good monounsaturated fats and antioxidants.

Given these results, it would seem that nuts are the latest superfood.

Sources: USA Today,New England Journal of Medicine

Negotiation Techniques from Goldman Sachs

Recently, the Huffington Post Small Business section published an article entitled, "7 Negotiation Techniques Every Small Business Owner Should Know", posted by Goldman Sachs. http://www.huffingtonpost.com/2013/10/30/negotiating-tips-small-business_n_4058588.html?view=print.
The techniques are as follows:
1.Figure out your goals.
2.Do the research.
3. Know what you're willing to give up.
4.Know when you should walk away.
5.Know about your counter party's past performance.
6.Write down the outcomes.
7. Look at your own company's resources to see how you can use them to seal the deal.
I have discussed many of these same points in various posts on this blog and in my ebook, "How to Get the Best Deal Every Time", which is available on Amazon.http://www.amazon.com/How-Best-Deal-Every-Time-ebook/dp/B00BRPVH4U/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1384966607&sr=1-1

They are all good points and are equally applicable to almost any type of negotiation, whether buying a new car or house or trying to get a raise from your boss.

Consumer Reports Magazine Supports "Haggling" for Gifts

The Christmas buying season is upon us, even though we have yet to celebrate Thanksgiving.  It happens every year and sales seem to begin earlier and earlier. Christmas in July may not just be a joke soon.

So, if you are beginning to search around for gifts for your family and friends, here is a tip you might want to consider.

Many people will be buying electronics gifts this year: HD and 3D televisions, Smartphones, cameras and just about anything else you can plug into the wall or load up with batteries. Most people will be going to Big Box stores or small specialty shops. Whichever you shop, keep in mind that the price listed on the product is not the price you must pay.  Haggling over the price or the warranty or some other aspect of the purchase is not only good practice, to do anything else is just plain unwise unless you enjoy paying full price (and nobody I know likes that).

I have written several times in this blog about how you can save money by negotiating for the best price. :http://notjustforboomers.blogspot.com/2013/09/how-to-save-money-by-negotiating.html;http://notjustforboomers.blogspot.com/2012/12/the-baby-boomers-practical-guide-to_11.html;http://notjustforboomers.blogspot.com/2012/12/the-baby-boomers-practical-guide-to_11.html. I have even written a book on the subject which is available on Amazon entilted,"How to Get the Best Deal Every Time," which is available as an e-book.http://www.amazon.com/How-Best-Deal-Every-Time-ebook/dp/B00BRPVH4U/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1384817264&sr=1-1&keywords=tony+basinski

In its annual gift issue,  Consumer Reports, www.consumerreports.org, suggests that "haggling" for the purchase of appliances and electronics gifts is a sure way to save money. Consumer Reports, December 2013. We couldn't agree more. And Consumer Reports provides the best information on which brand to buy and where best to buy the products you are shopping for this season.

How to Approach Negotiations and Win

I have written several times on various negotiation techniques to give you an edge. Today's New York Times suggests a novel approach: exertion. In an article entitled "Work Up A Sweat, and Bargain Better," the author reports on a study by researchers at the Massachusetts Institute of Technology that concluded that if you approach negotiations with an attitude of excitement, you are likely to be even more successful if you are moving during the negotiations.

The study showed that a certain level of exertion appeared to result in a better outcome. The study, reported in the journal, Psychological Science, involved participants who negotiated over the phone while walking versus those who remained seated or walking slower.

The study confirmed what we always suspected: the "movers and shakers" will do better in negotiations. How can you become a mover or shaker? Other research shows that just telling yourself that you are "excited" may be enough.

So, go ahead and give yourself a little pep talk before beginning to negotiate for that new car or the terms of that new job. You might be surprised how well you do.

A Visit to Fraunces Tavern in New York City

Recently, we were in New York City for a short visit. Because we had been to most of the major museums in the city, we were looking for something a little different. I suggested we make a visit to Fraunces Tavern. Fraunces Tavern is best known as the place where, at the end of the Revolutionary War, in 1783, General George Washington gave his farewell address to the officers of the Continental Army.

Washington's address to the officers was given in what is called the Long Room, apparently because of its length across the width of the building atop the tavern below.  According to a contemporary account by one of the officers present, there was not a dry eye in the house as Washington finished the address and shook hands with those present.Washington, of course, did not fade away as he then apparently thought, but went on to become our first President.

And neither did Fraunces Tavern just fade away. New York City became the first capital of the United States and the Tavern housed the offices of the new government's Departments of Treasury, War and Foreign Affairs (today's State Department).

Built in 1719 as a private residence, it became the most popular tavern of its time after being purchased by Samuel Fraunces in 1762.  While the upper floors are a museum,which includes a Hall of Flags of the United States,  the lower floor still serves as a tavern. In addition to the tavern itself, the building  is also connected with several other buildings, including another restaurant, where we ate. The restaurant, among other dishes, serves what is described as George Washington's favorite chicken pot pie. I don't know about Washington, but it was my favorite, just filled with white meat chicken and topped by a thin, crisp shell. Yum!

Fraunces Tavern is located at 54 Pearl Street in the Financial District, near Wall Street. The phone number is 212-425-1778. There is a small fee for admission to the museum, but it is well worth a visit.

How to Get Through Airport Security Quickly

Recently, we have been traveling by airplane quite often. It seems like the time to get through security keeps getting longer and longer. So I decided to see if there was anything I could do to make it a little easier and maybe even quicker.

I knew, of course, there was no way I could hurry along the other travelers or the TSA personnel. What could I do myself that might ease the process just a little? I came up with the following solution that seems to work well.

After you get through the boarding pass checkpoint, you usually start the process of removing your wallet, watch, and other personal items you have in your pockets or are wearing, such as jewelry. What if you removed those items before you went through the security line?

I tried it and it makes the ordeal just a little better. I removed my wallet, watch, comb, and loose change from all my pockets and placed all the items in a small plastic freezer bag I had brought with me.  I then placed the bag in my briefcase (you could also use your carry- on  bag).  It seemed like I flew through the x-Ray process. Once on the other side, I emptied out the plastic bag and was on my way.

It seemed to me that not only was it quicker, it was safer.  Just putting all your personal items in those little plastic dishes as you go through security always seemed to me to be a  little unsafe. We have all heard stories of and maybe even experienced ourselves missing or forgotten watches, wallets, etc. Using my suggested method makes those a  lot less likely. Try it; I think you'll like it.