How to Fly First Class -- Cheap!

I like to get a good bargain when I travel, who doesn’t? Now that the airlines have reduced their capacity so that there are fewer flights, the airplane seems more congested than ever. But there are ways to still enjoy a free first class or business class upgrade inexpensively.

Travel on Saturday to get an inexpensive upgrade to Business or First Class. Saturday flights are slow travel days and that’s basically because there are no businesspeople flying. It’s usually the businesspeople who accumulate a lot of frequent flyer miles and often get an upgrade to First Class as a reward. But on Saturday, they are home enjoying a late day, and It’s those Saturday flights when first class upgrades are available for a ridiculous price. I flew from Cancun to Atlanta on AirTran and upgraded to Business Class for only $69 for a 1 ½ hour trip. That seat would have cost five times that much if I had bought in advance. What did I get for that $69? A much roomier, cushier seat, alcoholic drinks and really good snacks. By the time I got to Atlanta, I was very happy all the way through customs. If your flight is two hours or longer with some airlines, you even get a meal. Granted, it might cost you more than $69, but that Business/First Class seat again would have cost you five times as much as your coach fare.

Avoid the Baggage Fees

Also, do you have at least two bags that you need to check in? Then it might be a good buy to pay extra for the first class upgrade. For most airlines, a first class seat entitles you to two free bags. Currently most airlines charge $25 for the first bag and $35 for the second bag. If you buy a first class upgrade at $100, then that upgrade helped you to save $60 on your bags or if you want to look at it another way, that first class seat only cost you an extra $40. Also, if your trip consists of a connection, it might be worthwhile to pay a first class upgrade on one part of the trip so that you still get your bags free.

Use one frequent flyer membership for the whole family so you can accumulate miles faster and get benefits. If you are a family of four, it doesn’t make sense to have four frequent flyer numbers if three of you don’t travel as much. Consolidate all your frequent flyer miles on one membership so that you attain an elite level and get a free upgrade faster. As an elite member you are usually allowed to have one free companion accorded the same benefits as the elite member.

Choose the frequent flyer program that has the airlines that you fly frequently in order to attain a level to get free upgrades. If most of your flying is done on United, Lufthansa, and US Airways then use the Star Alliance Program. If you fly on American Airlines and British Airways then be a member of the One World Program.

Check and see whether it’s inexpensive to buy the miles so that you can get your upgrade sooner. Depending on how many miles you have already accumulated, buying miles might be cheaper than buying that Business/First Class seat.

Retirement Plans for Small Businesses

So you’ve finally made the leap and started your own business and you have positive cash flow. Not so much that you can retire next year but enough that you can start thinking about putting away some money for your future. Here are some easy ways to build a nest egg.

IRAs: Roth vs Traditional

One of the easiest ways to put money into a retirement plan is to open up your own Individual Retirement Account commonly known as an IRA. IRAs came into being when the Employee Retirement Income Security Act was passed in 1974. At the time, it allowed you to contribute as much as $1500 into an IRA and to make that contribution deductible, allowing the individual to reduce their taxable income. When it came time to take the money out of the account for your retirement, that was when you were taxed on your money. This type of IRA is a tax-deferred retirement account because you were not required to pay any taxes on gains and the principal until you were allowed to take the money out at age 59 ½.

A few modifications had been made through the years with the IRA in terms of an increase In contribution limits, eligibility requirements, deductibility requirements, but there were not major changes until 1997 when the Tax Payer Relief Act was passed and created the Roth IRA, which was different from the traditionally existing IRA. Unlike the traditional IRA, contributions to a Roth IRA were not deductible but they had one big advantage over the traditional IRA, any earnings that the Roth IRA gained over the years were NOT taxable. This type of IRA is a tax-free retirement account because you didn’t have to pay any taxes on the money it earned. Another big advantage to the Roth IRA was that since the contributions were not deductible, the rules allowed you access to your contributions at any time. This gave the Roth IRA account owner more flexibility than the Traditional IRA account owner. With the traditional IRA, your money was locked up until much later into the future. If you had to take the money out, you were hit with penalties for taking your money out early. With the Roth IRA, if you had an emergency you can tap into your Roth IRA contributions without any penalty or taxes since these contributions were never deductible! These two reasons alone made the Roth IRA the more popular choice for the self-employed.

Currently you are allowed to contribute up to a maximum total of $4000 annually into an IRA account whether it’s a traditional IRA or a Roth IRA or both. IRA accounts can be opened in your local bank or a brokerage firm. The money you put in your IRA can be invested in CDs, mutual funds, bonds, stocks, annuities or a combination of these.

SIMPLE IRAs

Another type of retirement plan for self-employed businesses that was created in 1996 is the Savings Incentive Match Plan for Employees of Small Employers or SIMPLE IRA for short. If you are a one-person business, meaning that you are your own CEO, CFO and COO, then this type of IRA is worth looking into if you can put away more than $4,000 and as much as $11,500 annually. At this level, your business has grown to the point that your cash flow is consistent and you can easily contribute up to the maximum allowed in order to reduce your taxable income. Similar to the traditional IRA, your contributions to the SIMPLE IRA account was tax-deductible and if you were to take money out before age 59 ½ you will incur penalties. You can open up a SIMPLE-IRA in a bank or a brokerage firm and that money can also be invested in CDs, mutual funds, bonds, stocks, annuities or a combination of all those types of investments.

SEP-IRAs

A third choice to put money away for retirement is to use a SEP-IRA. SEP is short for Simplified Employee Pension Plan and was created with the passing of the Revenue Act of 1978. With a SEP-IRA, the self-employed business owner can put away as much as 25% of eligible compensation but no more than $49,000 each year. These contributions are fully deductible and if you were to take money out before age 59 ½ you will incur penalties. To be able to comfortable contribute to a SEP-IRA, your business at this stage is not only established but continues to thrive and you are actively looking to help reduce your taxable income in a legitimate way. Also at this stage, the business owner has some full-time employees and you would be required to make contributions on their behalf, based on a calculation not a dollar-for-dollar match, into their own SEP-IRAs when you make contributions to your own. If you value your employees and want them to remain with you, it is to your benefit to offer this type of retirement plan to them. As with the other IRAs, a bank or brokerage firm can help set up these accounts for you and your employees and as previously mentioned, the moneys can be invested in CDs, mutual funds, stocks, bonds, annuities or a combination.

As always, before you open any kind of IRA account, discuss your choices with your accountant so that you can choose the type of retirement plan that is appropriate for you at your given stage of the business. You want to be informed of the eligibility rules, maximum contribution limits, distribution rules, the deductibility of your contributions and so forth. Most important, if you are using investments other than a Certificate of Deposit you will want to discuss the risk involved with the type of investment that you use in you IRA.

Washington Plaza Hotel -- A Good Inexpensive Hotel

If you are in Washington DC any time soon, check out the Washington Plaza Hotel; it provides great value for the money

Travel Accessories Can Make or Break Your Trip

Traveling nowadays is about knowing what to bring with you on a trip and what to leave behind. To that end there are a few things that the well prepared traveler should have with them during their journey.

Carry-on Bag

The most important thing about your carry-on bag is the size. It should be able to fit the overhead bins or underneath the seat in front of you when the bag is full. The total size of your carry-on must not exceed 45 inches. To measure whether your bag is within the allotted 45 inches, you would measure length plus width plus height. The ideal dimensions are 22x14x9 inches. Furthermore, your carry-on bag cannot weigh more than 40 pounds. The rest of it is an expression of your personality.

Travel Wallet

A travel wallet is one of the most overlooked travel accessories. Stow away your boarding passes, claim checks for your luggage, hotel information, travel itinerary, and if needed, your passport. These days the whole airline industry is cutting back and the nice agent will most likely not provide you with a sleeve for your boarding pass. Having all your travel paperwork in one place means you don't have to waste precious time looking for it. Also, the travel wallet is a great way to hold all your receipts in one place. You want to consider travel wallets that are slim but can still hold all your papers for travel, waterproof in case you spill coffee on it, and have an eyecatching color so you can spot it quickly.

Pad and Pen Set

Although everything is now digital, there will still come a need for pen and paper. There have been enough times when I was caught without it and really wished I had it, that investing in a notepad and pen set was a smart and inexpensive idea.

Aspirin and Antacid Tablets

A two-pack of aspirin or antacid tablets will set you back $3 at some stores in the airport. Do yourself a favor and bring a couple of your own. You'll inevitably need aspirin in case of delays, missed connections, or something else going wrong and you have one big headache that develops. Or since airports are not known for having healthy, well prepared food, you can easily get an upset stomach and you'll want a couple of antacids to help you through. For convenience, these individually wrapped pills won't take up too much space in your bag.

Pocket Tissues and Sanitary Hand Wipes

For sanitary reasons, because traveling means you will be in contact with many surfaces that other people have touched, it's very handy to have these with you to keep yourself healthy and prevent you from catching germs. I prefer the sanitary hand wipes over the gel because it's one less liquid to worry about.

A Bag of Nuts

You never know when you'll be able to catch a meal in between catching a cab, a flight, or a connection. Having your own snack means that you won't go hungry and nuts will sate your hunger for a while until you can get a meal. If you area allergic to nuts, then a bag of granola or other nut-less trail mix should satisfy your hunger.

An Extra Bag

You never know when you'll need an extra bag bag when you travel. A cloth bag such as those recyclable ones that you can get from the supermarket for a buck is perfect. Fold and then roll them up into a small size with a rubber band, you are ready in case of an emergency.

Put all these small items in a zippered case or even a one gallon ziploc bag, but not with your toiletries bag. Put the case in your handbag or briefcase or your carry-on and you are all set.

Save Money By Staying At Airport Hotels Without Sacrificing Comfort

Most people want to stay in a downtown hotel when they visit a big city because everyone wants the convenience of being able to walk to their destinations, whether that's the shopping district, the theater district, the museums,the clubs and so forth. But you have to pay a lot of money for that convenience. It's even worse if you decide to rent a car to get around and bring it with you downtown, then you have to consider the hotel's parking fees and in a big city it can be as high as $40 a day. One way of cutting the cost of your hotel is to stay at a hotel near the airport.

But it's so far away, yes I hear that complaint often. But if you strategically plan your vacation and prepare, you can cut your hotel bill by as much as half if you stay at an airport hotel and often you can park you car for free or for 70% less than if you parked it downtown.

Choose an airport hotel that has a complimentary shuttle so that you can be dropped off at the airport. From there you can take public transportation downtown and go to any city attraction and come back. Your commuting expenses are minimized and you're still able to get to where you want to go. When it comes to shopping, then that part takes planning because you'll want to drop off bags in between shops and combine it with a night out on the town. Drop off your car at a centrally located garage early so that you can take advantage of their all day parking deal. Then you can leave your shopping bags during the day at the trunk of your car knowing that they should be okay and then go to see theater, go clubbing, or dine at a nice restaurant. And at night you can take your fully loaded car back to the airport hotel.

Another way to cut your parking expense is to check and see if any of the museums are centrally located and offer all day parking at a low rate and leave your car there. Of course you are combining a museum visit with your shopping.

In smaller cities where there is less traffic congestion, then it is a better deal because you can take your car and not worry so much about where to park the car and have a more spontaneous day and then return to the airport hotel.

If you've never stayed at an airport hotel you will be pleasantly surprised. Especially if you favor the major hotel chains. It's not only for people who want to stay near the airport to catch the early morning flight or for late arriving passengers on the red-eye anymore. The amenities that you will find at their downtown establishment can be had at their airport counterpart, again for a lower price.  You might also like the fact that the halls are less congested and their pool and fitness rooms are not so crowded. So think outside of the box when it comes to accommodations and you will find your pocketbook might not be so empty when you get home.