Illustrations by John Kachik
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Putting the Fun in Refund
By Karen Hube, May & June 2004
Seven ways that big fat check from the IRS can change your life!
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Find a Dog at Your Local Shelter
The print edition of this article suggested that some readers may want to spend
their tax refund on a new dog, but many readers chastised us for not
encouraging the use of local animal shelters—even for purebred dogs, which
account for as much as 25 percent of some shelters' population. For readers
interested in adopting a dog from a shelter, check out our list of websites that help you find local shelters.
Think, quick: How did you spend your tax refund last year? If you're
like many people, you haven't a clue—you'd guess it was probably
on groceries, car repairs, or other household expenses. Which might be okay if
we were talking about pocket change. But we're not. The average refund is
about $2,000 this year, according to the IRS. Some sources say it may even be a
little more. "That's money that can really have long-lasting effects
if you use it wisely," says Richard Wagener, a certified financial planner
in Columbia, Maryland.
Among the smartest uses for extra cash are paying down high-interest debt
(such as credit card balances and car loans), saving for your child's
college expenses, or hiring an attorney to create or update your will. But you
also can invest your money in ways that will improve your mind, body, and
spirit. These investments may not all have a financial payoff, but they will
likely improve your life. And who can put a price on that? So once you've
spent what you need to on practical stuff, check out the following spring
specials, starting with the most affordable splurges:
Put Down Roots
If you're thinking of gussying up your garden for summer, consider
planting a tree. The newest trend: superfast-growing red or silver maples.
They're genetically engineered to grow branches spreading 30 feet wide in
about five years (versus 12 feet wide for traditional trees), and they're
becoming a huge hit, says Rick Heckman, president of Audubon Tree Experts in
New Orleans. They're easy to care for and resistant to many diseases and
insect damage. Each tree can last up to 150 years in colder climates and about
half that long in the South.
Ask your local nursery or grower for one of these maples. A tree with a
two-inch-diameter trunk will run about $200; double the diameter and you'll
pay about twice that. A landscaper will plant the tree for $50 to $200,
depending on its size and where you want it to be planted.
Show Some Latitude
News flash: You don't need a handlebar mustache or a fox-fur muff to
pass as an investor in fine art. All you need is a few hundred dollars. Antique
hand-painted maps of the U.S. are not only beautiful artwork; they're hot
right now. Some can be bought for as little as $100, and they've been
appreciating like gangbusters because peripatetic baby boomers nostalgic for
their home states are snapping them up, says Don McDonald, owner of PastPresent
Gallery in Celebration, Florida. "Ten years ago, an 1860 map of Texas went
for $100. Today it's worth $400 to $500," he says. "In another 10
years, that map could triple in value."
Tip: If you see a 19th-century school wall map of the U.S. at an estate or
garage sale, nab it. "These are extremely rare and can be worth at least
several thousand dollars," McDonald says. Info sources: antiquemapgallery.com, antiquemaps.com, or oldmapcompany.com.
Deco Your Halls
Flea market season is here, and some of the year's hottest products
could be hidden among the dusty tables in the form of art deco furnishings. Art
deco is best characterized by long lines, geometric patterns, and bold colors.
This sleek look from the 1920s and 1930s is back, thanks to a general trend to
streamline and simplify.
At a store, you might pay about $2,000 for a sofa or $400 for a coffee
table. But if you're willing to hunt through flea markets and estate sales,
you can find anything from martini glasses to a coffee table with a cat-shaped
pedestal for a fraction of the price. Even if you pay top dollar, however,
"these items have been appreciating for years, and as long as you take
care of them, they can be a great investment," says Gretchen Batis, an
antiques dealer who runs Oldenfinds.com
in Las Vegas, Nevada. Batis recently found a sofa set for $325 at a used
furniture store and saw the exact set in San Francisco weeks later offered at
$2,600. Check the Web or phone book to see if there's an art deco society
in your area.
Sleep Like a Baby
Do you feel tired and cranky all the time? Could be you need to drastically
change your life—or maybe you just need a new bed. In the past five years
or so, mattress makers have developed two new sleep-inducing features:
sturdiness to prevent depressions (so you never have to flip the mattress) and
reinforced sides so you can sleep at the edge without falling off.
In industry lingo, you're looking for a "no-flip,
edge-reinforced" mattress. If you tend to wake up frequently when your
partner moves, also ask for a thick pillow-top liner, heavy-gauge steel coils,
or individually wrapped coils—all features that reduce movement.
Prices for good mattresses with these features begin at about $700, but
models can be snapped up on Memorial Day for 10 to 20 percent off, according to
a spokesperson at 1-800-Mattress. And they're worth every penny. A
well-made mattress can vastly improve your sleep quality. "How well you
sleep will affect your mood, alertness, general health, and even your
longevity," says James Maas, Ph.D., a sleep researcher at Cornell
University and author of Power Sleep.
Two good models: the Sealy Posturepedic UniCased mattress and Serta's
Perfect Sleeper Easy-Care are both no-flip models with reinforced edges that
cost about $700.
Hire a Muscle Mentor
If you want to get in shape for summer, the surest way is to hire a personal
trainer. A trainer will evaluate your flexibility, posture, and cardiovascular
abilities, help you set exercise and nutrition goals, and teach you how to
exercise properly to prevent injury. "And trainers are great motivators.
They help you stick to it," says Maria Stack, M.D., an internist and
geriatrician in Cheshire, Connecticut.
Make sure your trainer is certified by a nationally known organization, such
as the National Academy of Sports Medicine or the American College of Sports
Medicine, advises John Agoglia, editor-in-chief of Club Industry
magazine.
Trainers charge anywhere from $35 to $80 an hour. To find one, you could
join a gym for $500 to $800 a year (spring is a good time to get a deal, as the
summer is their slow season) or hire a trainer to come to your home. Gym
equipment isn't a must; you can get a great workout by using elastic bands
and doing exercises like pushups and sit-ups.
"Commit to two days a week for 10 weeks," says Christine Keyes,
fitness director at the Fitness Edge, a health club chain based in Fairfield,
Connecticut. "After that, some people like to continue on their own.
Others stick with their trainers for years." See the National Academy of Sports Medicine's website and
the American College of Sports Medicine's
website to find a certified trainer in your area.
Make a Sound Investment
Ever dream of tickling the ivories? Now may be your chance. It's moving
season, and people are unloading pianos they haven't used in years.
"Prices get really competitive at this time of year," says James
Nicoloro, a used-piano dealer in Somerville, Massachusetts. You can find a
decent upright model starting at about $1,500, and lessons will run you $30 to
$40 an hour.
Pianos in this price range hold their value, so if you decide to sell in,
say, 10 years, you should recoup your money. Better yet, the benefit to your
mind and spirit can be immeasurable, says Alexandra Lamont, Ph.D., a music
psychologist at Keele University in Keele, England: "Playing an instrument
is enjoyment for its own sake but can also help you to sustain memory, sharpen
your spatial skills, and provide you extra motivation in life."
Before buying, check for dampness or mold inside the piano, rust-coated
strings, and hammers that show excessive wear. You won't spot all flaws, so
find a dealer (through your yellow pages or online) who will give you a
one-year guarantee to cover all repairs. If you're buying through a
classified ad, hire a technician (a local music school or church can refer one)
for about $75 to look it over. "They'll look for cracks in the
soundboard, tell you if the piano is tuneable, and spot other things you
won't be able to see," Nicoloro says. For a quick education, leaf
through The Piano Book by Larry Fine (Brookside Press, 2001); order it online or at 800-888-4741.
Appreciate Your Home
One of the best home improvements you are likely to make? Wood flooring.
Spending on all flooring increased by 70 percent between 1999 and 2002, driven
largely by an ongoing craze for hardwoods, says Jack Milarch, CEO of the New
Mexico Homebuilders Association. Wood floors give your home an elegant look,
and you'll be rewarded when you sell. "Wood floors are an appraisable
item and can add to the value of your home," says Susan Minnick, a
real-estate agent at McEnearney Associates Inc. in Arlington, Virginia.
But they're not cheap. Installing oak or maple in an 800-square-foot
floor can cost at least $4,000, says Stuart Ginsberg, sales manager of FastFloors.com, a company in Fort Lauderdale,
Florida. If your tax refund won't cover that, you can always convert a
single room. Beautifying a 13-by-15-foot space would run between $1,200 and
$3,000, depending on the wood you choose, Ginsberg says.
Karen Hube, our new Ms. Money columnist, plans to use her tax refund to
make the earth a nicer place. And to pay some bills.
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