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Thursday, June 28, 2018

Keeping Your Car Breakdown Free

Keeping Your Car Breakdown Free


With the average cost of a new car over $25,000, maintenance is crucial


Cars just aren’t made the way they used to be. Thanks to Total Quality Management, they’re made better. But not even the most demanding of automakers has figured out a way to keep a car running if it’s not properly maintained. And with the average price of a new car now exceeding $25,000, at least, the price of neglect can wreak havoc with your budget. To keep your garage bills down and your wheels running smoothly, Automotive Services at the American Automobile association, recommends the following maintenance schedule:

Check the brakes for wear once a year. The front brakes wear out more quickly than the back brakes, particularly in the city, where you have to start and stop in traffic. Many repair shops have free safety checks. Replacing wrn brake pads should not cos much, including labor. If the pistons have to be rebuilt or replaced, that would cost more, but it will not be too costly.

Change the oil and oil filter every three months, or every 3,000 to 4,000 miles. Oil lubricates and cools the engine. When it becomes dirty, it’s doing its job. But if it gets too contaminated, it can cause more wear on the engine than there should be. An oil change will usually cost less than a hundred dollars even at a garage. Manufacturers typically recommend standard oil, which is defined as meeting manufacturers’ specifications. Synthetic oil is blended better and only needs changing once a year, but it’s considerably more expensive. If the auto manufacturer stipulates that the oil be changed at certain intervals, and you don’t do so, the manufacturer won’t accept liability if the car breaks down.

Replace the air and fuel filters when they are dirty, or once a year. The fuel takes particles from the gas tank and filters it, so it doesn’t clog fuel injection equipment. It also stops water that may build up in the fuel injection system. Replacing the fuel filter should cost about $55: about $20 for the filter and about half an hour of labor, depending on where it is located.

Air filters screen out dirt from the engine clean. They need to be replaced once a year unless you live in extremely dusty conditions. Filters cost $10 to $15 and take only a couple minutes of labor to replace.

Replace spark plugs every 30,00 miles. Spark plugs ignite the mixture of fuel and air in the cobustion cylinder. They are like the pilot light on a gas stove. If they’re not replaced from to time to time, the car may not start or may be sluggish or jerky. Depending on how many cylinders your car has, it takes about one and a half hour of labor, at anywhere from $60 to $80 per hour.

Check the battery regularly. The average life of battery is two to three years, possibly longer. A new one costs around $100. Corroded connections need cleaning or replacing. If you don’t have the maintenance-free variety, be sure to check the water.

Replace radiator and heater hoses every five years. The radiator and heater hoses are made of rubber, so they can get brittle and crack , which is when they fail. It’s usually the bottom radiator hose that goes; it’s the hardest to see and it id not regularly looked at. A replacement hose doesn’t cost much, plus about one and a half hours of expert labor. But replacing hoses before they go can save as much as $1,000 in repairs on an overheated engine. Sometimes a garage will replace the hoses at the some time as it replaces antifreeze.

Keep your car breakdown free. Photo by Elena

Change the antifreeze mixture every two years. The cooling system includes the radiator, heater core, hoses that attach the engine, and the antifreeze mixture. In a place where there are extreme conditions, the antifreeze mixture should be changed once a year. To flush and refill the antifreeze mixture takes about an hour. Some specials must cost around $60, otherwise, it can cost up to $150.

Leave the air-conditioner alone unless it’s not cooling. There are three major parts of an air-conditioner that can go bad. The problem with the condenser or evaporator will cost a few hundred dollars; a problem with the compressor also. If you need more freon, the likely bill will be about $100.

Check the exhaust system regularly. The rubber mounts that hold the exhaust system sometimes need to be replaced if they are worn. Wear is more likely if you take a lot of short trips, but in some cases, mounts will never need replacing. The exhaust system should also be checked for leaks at least once a year on late-model cars, and twice a year on older cars. In the height of summer or winter, the windows are closed; if there’s a leak in the exhaust system, you could be breathing the fumes. A garage will normally check your system free of charge. A new exhaust system will cost you up to $1,000 or more.

Check tires at least once a month for proper pressure and other problems. Low tire pressure cuts gas mileage and affects the car’s stability and safety. Tires also should be inspected for bulges or cuts on the side wall. Sometimes a tire is wearing unevenly, and there are rough edges. If you use a full-service gas station, they usually check the tire for free. You don’t have to take the tires off.

Rotate your tires every 10,000 miles or once a year. It costs dozens of dollars, but if you don’t do it, your tires will wear out a lot faster.

Replace wiper blades once a year. Do it before rainy season. If you get new blades, you can insert them into the arm yourself. You can replace the whole unit for a few dollars. It’s about 15 minutes of labor. A repair shop may install them for free.

Check vehicle lights regularly, especially during winter. To get the brake lights replaced, it costs less then $10 for a bulb. It’s a about a half-hour’s work. Changing the brake light in some cars can be done in 2 or 3 minutes. In the winter, it’s especially important to make sure the headlights are working properly. Depending on the type of headlights, it will take 15 minutes to a half-hour to change them. Normally, a new bulb doesn’t cost much.

Replace the clutch on a manual transmission every 60,000 to 100,000 miles. If you ride the clutch excessively, replacement will be needed sooner. Expect to pay from $400 or more for a new clutch.
The Fix-It Factor

Engine overhaul: If the engine is worn out, making a lot of noise, blowing smoke, or has no power, it might need an overhaul. That’s when an engine gets rebuilt to the manufacturer’s specification. For a 4-cylinder engine, it might cost thousands, it can get up even more for an 8-cylinder. That’s when you have to evaluate if it’s worth putting that much money into the vehicle.

Automatic transmission: The automatic transmission should be serviced every 25,000 miles. Symptoms of automatic transmission failure are that the vehicle feels as if it lacks power, is going nowhere, or is making grinding noises. The majority just won’t drive. If you have a transmission failure, it could cost thousands

Retail Seasons: Sales Make the World Go ‘Round

Retail Seasons: Sales Make the World Go ‘Round


For every retail item, there’s a season. White sales big on Columbus Day and silverware sales flourish in the June wedding season. Here’s when the following items are likely to go on sale across the United States.

January

    Holiday-related products, including wrapping paper, cards, lights, candles, holiday decorations.
    Cookware.
    Curtains.
    Dishes.
    Housewares, small appliances, including toaster ovens, blenders, food processors, coffee makers, etc.
    Rugs.
    Silverware.
    Toys.
    White sales, including linens.
    Winter apparel, including coats, furs, sweaters.

February

    Presidents Day sales, big for the electronics industry.
    Candy.
    Jewelry.
    Lingerie.
    Stereos.
    Televisions.
    VCRs.
    Winter clothes.

March

    Best time to buy winter clothes as retailers make room for spring lines.
    Camping gear.
    Gardening.
    Spring fashion promotions.

Shopping. Photo by Elena

April

    Bicyles.
    Jewelry.
    Lingerie.
    Personal care products.

May

    Furniture (bedroom sets, sofas, dining room tables).
    Gardening supplies.
    Home furnishings.
    Luggage.
    Mattresses.
    Outdoor furniture.
    Refrigerators.
    Spring clothing.
    Stereos.
    Televisions.
    Tires.
    VCRs.
    Washer/dryers.

June

    Father’s Day promotions.
    Electronics.
    Silverware (for wedding season).
    Sporting goods.
    Summer recreational gear.

July

    Bathing suits.
    Bicycles.
    Furniture.
    Mattresses.
    Refrigerators.
    Tires.
    Washer/dryers.

August

    Back-to-school promotions for children’s and junior’s clothing.
    Office supplies.
    School supplies.
    Undergarments.
    Wardrobe basics.

September

    Labor Day “last chance” promotions on summer wear.
    Air-conditioners.
    Cookware.
    Dishes.
    Lamps.
    Musical instruments (pianos, guitars, flutes, etc.)
    Recreational gear.
    Stereos.
    Televisions.
    Tires.
    VCRs

October

    Columbus Day white sales.
    Fall apparel.
    Home textiles.

November

    Curtains.
    Fall apparel.
    Holiday promotions.
    Lamps.
    Rugs.
    Winter recreational gear.

December

    Consumer electronics.
    Cookware.
    Cosmetics.
    Furniture.
    Home appliances.
    Jewelry.
    Luggage.
    Perfume.
    Toys.
    Washer/dryers.
    Winter apparel.

To buy or not to buy. That is the question. Illustration by Elena.

One Expert’s Way to Beat the Dow

One Expert’s Way to Beat the Dow


The strategy outperforms the market almost every year

There may be no sure-fire way to beat the market, but there is a strategy that comes convincingly close, author with Michael B. O’Higgins of Beating the Dow (Harper Perennial, 1992), suggests this system. At the beginning of the year, buy the 10 stocks out of the 30 Dow Jones industrials with the highest yields, often an indication that they’ve been labeled losers. (Calculate the yield by dividing the annual dividend by the stock price). Hold the stocks for one year and then repeat the process.

Sounds simple, but over the past 20 years, the strategy would have netted a handsome average annual 19 percent return, including dividends, compared to 14.3 percent for the Dow 30-stock average. The strategy has outperformed the Dow Jones Industrials for 17 of the past 22 years.

Downes suggests you budget at least $1,000 for each stock. By buying the individual stocks on your own, you can save the $450 or so it would cost to set up a $10,000 portfolio with a discount broker. Adjusting stock picks at the end of the year usually is not costly because typically more than half the stocks will remain on the list from year to year.

A Jamaican Beach. Photo by Elena

You also can buy the bargain 10 through unit trusts, which are sold through brokers such as Merrill Lynch, Smith Barney, Prudential Securities, and so on. The units are called the Select 10 portfolio and typically come with a 1 percent initial sales charge and 1.75 percent annual fee. The minimum purchase: $1,000 ($250 for individual retirement accounts). The trusts are liquidated each year, so to avoid capital gains taxes, you may want to hold on to them in an IRA.

A final tip: Investing in the cheapest five stocks of the ten highest yielders give you an extra kicker. Why? Because lower-priced stocks tend to move in greater percentage increments than higher-priced stocks and get better returns – even in grit-your-teeth years like 1994.

Investing in Oils

Investing in Oils


A study shows that investing in paintings can be unpredictable indeed

Oil paintings can be a good investment – problem is, they can also be a rotten investment. Knowing the difference means knowing a lot about what makes buyers, critics, and auction houses tick. And even then, the market can be unpredictable.

In Art Auction Trends, James Coleman compared the investment value of selected artists’ works to the consumer price index and the Standard & Poor’s 500. Between 1971 and 1991, 68 percent of the artists studied by Coleman kept pace with inflation and 54 percent outperformed the S&P 500. Sounds good – but how do you tell if your favorite artist is in the winner’s circle?

It’s hard. Consider the work of the highly regarded American impressionist Mary Cassatt. Her work was a good investment over the long run, but its value declined steadily throughout the 1970s. Despite a brief spike in 1981, the median price for Cassatt’s watercolors and drawings by 1984 had dropped well below the increase in the consumer price index and the stock market, and almost below the median price for her work sold in 1971.

Collectible Locks. Just collect what you like! Illustration: Megan Jorgensen (Elena)

Nonetheless, those who stuck to their guns made a killing when the median price for her work skyrocketed four years later, surpassing the increase in the CPI and nearly tripling the rate for the S&P 500.

How does one find stability in such a market? A painting’s ability to survive in a recession without a big price drop is a good sign of stability.

Better yet, just collect what you like. That way, you can ride out the bad times in good company.

An Artful Guide for the Artless

An Artful Guide for the Artless


Starting an art collection means dealing with dealers. Here’s how

The art world can be confusing place for even the most experienced of art buyers. Squishy factors as “historical interest” or “artistic integrity,” will determine whether your purchase is the bargain of lifetime or just expensive wallpaper. And if you’re just starting out, you’re at the mercy of the judgement of experts.

To even the odds, we can advise the beginning art collector. Here’s what we suggest:

Make sure that what you want is there to collect, and then collect the best in the field. If you want to collect Vincent Van Gogh paintings, you have to have a lot of money, or you will get the worst of the worst of what Van Gogh ever did, because that’s what’s on the market. To find out what’s out there, talk to dealers about finding other dealers in the same field, turn to international directories of dealers, or place ads in trade papers.

Establish as wide of a range or resources as possible. Not only will you see and learn more, but you’ll also be able to play the market for the best price and make intelligent price comparisons. There’s a difference between purposely playing dealers off one another – you shouldn’t do that – and asking intelligent questions. It’s like comparing cars at auto dealerships. You should ask dealers to explain why you saw something similar somewhere else for a different price.

Start by collecting an artist`s typical work. It’s a question of stability down the road – if you want things that will be liquid, you’d be well advised to go with the mainstream. At first you’ll want to find out what the artist is most famous for. Or if you like landscapes of Cape Cod, say, find out what people collect them like to have in them, and then you look for that in your pictures.

Artful Guide. Photo by Elena

Don’t confuse the work with the environment. Properly lit and displayed, even a sack of trash can look great. You can take anything – a tape measure, a can of soup – and put it up on a pedestal, light it, put it in an art gallery and you’re going to have people walk by and say, “wow that’s fantastic.” But when you get it home, all it is, is a can of soup. Take it out of the gallery environment, take it home on approval for a week. Usually you leave some sort of deposit, with no commitment to buy. On the other hand, unless you’re really experienced, it can be hard to see how beautiful something can be. At a garage sale it may look like a piece of junk, but a collector who knows what he’s doing will clean it up and display it properly and it’ll look like a million dollars.

Don’t take bulling. If you’ve got an art dealer who’s giving you a hard time, leave. When you get stuff like “The artist is almost dead” or “We sold six of these last month for X dollars,” just get out. If you feel pressure in any sense to do something, that’s a warning sign that you’re in the wrong place.

Start by working with the experts. Avoid galleries without direction of focus. These are good places to go for experienced collectors because chances are something’s going to slip through. But galleries like that are repositories for whatever people who are running around the area happen to find at flea markets and estate sales – the only focus they have is getting things they can mark up and sell for more. Those galleries have their place, and if you have experience, you can find bargains there.

Don’t ask, don’t tell. Forgeries are a touchy area, because you don’t want to call in one dealer to comment on another’s painting – that would be a conflict of interests – he would rather sell you one of his paintings. As you spend more time collecting, try to meet people – museum people or scholarly types, real true collectors who are not overly concerned about the money and who will give you a straight dope. If you recognize a forgery, don’t point it out. You can get involved in legal problems and you can make enemies fast.

Don’t let investment factors weigh too heavily. Art is immediately liquid only if you want to take a severe hit. If you buy and sell stocks and bonds and the like, you normally pay a 1 to 2 percent commission. If you pay a 20 percent commission to buy a work of art and then pay a 20 percent commission when you sell it – and those are very modest commissions in the art world – the art has to increase in value 40% before you see your first penny of profit.

Don’t try to chisel on prices, unless you have a really good argument. You shouldn’t worry about letting on that you really like a painting. A poker face won’t work anyway. If you are the type of person who likes getting a deal, dealers will bump their price up a bit when they see you coming, and then drop it down to what they wanted to sell it for in the first place. Or, worse, they’ll just sell you medium quality art that they would rather have out the door anyway. Sure they flex on the price a little bit, but you are not going to get the good stuff. You have to work for that – there`s a lot of competition.

Art Collection. Photo by Elena

The Small Print on Prints


They decorate a wall, but stocks do a better job of decorating a portfolio

Most art forms defy financial analysis because each work is highly individual. Prints are a different case because they generally are created in batches of 50 or 100. A 1993 study by University of Toronto economist James Pesando took advantage of this uniformity by analyzing the sales between 1977 and 1992 of 27, 961 prints by 28 modern artists, including Picasso and Matisse.

The results were not encouraging. The mean return for the prints was 1.51 percent annually, whereas a low-risk government bond would have gotten you a 2.54 percent return. Wily investors can still make a killing – annual returns on the prints ranged from a disastrous -35.34% to a healthy 47.18 percent. The method? Similar prints sold within a few weeks of each other varied in price by as much as 30 percent