CONNECTING OUR COMMUNITY FREE drop-off points Test Your Money

PR

SRT

ST

DC

AR

-RT

SO

RT

U.S

. P

ost

age

PA

IDM

on

tpel

ier,

VT

Per

mit

NO

. 12

3

Th

e B

rid

geP

.O.

Bo

x 1

143

Mo

ntp

elie

r, V

T 0

5601

Published Weekly

C O N N E C T I N G O U R C O M M U N I T YF R E E atdrop-off points

Mailed by subscription

June 182009

PublishedWeekly

quiz by Peggy Munro

introduction by Steve Marsh

illustration by Tim Newcomb

sponsored by Community National Bank

Test Your Money Management SkillsTake Our Financial Literacy Quiz

In today’s economy, when many of us are tightening our belts and paying more attention to financial matters than ever before, Community National Bank—in partnership with TheBridge—is happy to bring you a Financial Literacy Quiz assembled by Peggy Munro. Peggy is aBridge columnist, writer, tax expert and enrolled agent (a tax professional licensed by the U.S.

Department of the Treasury). The quiz can be found on pages 3 through 5 of this issue.Many of us know the importance of creating a monthly budget and paying our bills on time. But

that’s just the beginning of financial literacy. We need to know about a range of subjects, such ascredit and debt, taxes, real estate and mortgages, insurance, saving for college, investing, retirement,and Social Security.

Community National Bank welcomes the opportunity to work with Peggy Munro and The Bridgeto bring you this quiz. For over 158 years, Community National Bank has been meeting the finan-cial needs of our Vermont communities. Now, more than ever, we recognize the need for financialliteracy and we’re committed to helping our customers and community members learn more aboutcritical financial issues.

At Community National Bank we strive to assist our customers by offering a full line of financialproducts and services. If you would like to learn more about Community National Bank, please stopby any of our offices or visit our website at www.communitynationalbank.com.

Take the quiz. Test yourself on a range of financial issues. Figure out what you know and don’tknow and what gaps you need to fill.

Do you have a pen or pencil handy? Are you ready? OK—turn to page 3 and start taking the quiz!

—Stephen Marsh, President, Community National Bank

T H E B R I D G E ~ Connecting Our CommunityP.O. Box 1143, Montpelier, VT 05601

Phone: 802-223-5112 Fax: 802-223-7852Editor & Publisher: Nat Frothingham

Managing Editor: John WaltersSales Manager: Jessica Moseley

Sales Representative: Peter DuBoisGraphic Design & Layout: Dana Dwinell-Yardley

Horizons Editor: Tim TavcarEditorial Page Editor: Peter T. MallaryCalendar Editor: Dana Dwinell-Yardley

Copy Editor: John WaltersProofreader: Kate Mueller

Distribution: Kevin Fair, Karen Hanron, Bob Lincoln, Daniel RenfroWeb Master: Michael Berry

Advertising: For further information about advertising, deadlines, and rates: Phone: 223-5112, ext.11 (Jessica) or ext. 12 (Peter)

E-mail: [email protected] or [email protected] Fax: 802-223-7852

Editorial e-mail: [email protected] or [email protected] Phone: 223-5112, ext. 10 (Nat)

The Bridge office is located at 104 Main Street, Montpelier.

The Bridge is published every Thursday, and is available free of charge at manylocations around central Vermont. You can receive The Bridge by mail for $50 a year. Bridge Connection memberships are available for an amount of yourchoice from $50 per year. Make out your check to The Bridge, and mail to

The Bridge, P.O. Box 1143, Montpelier VT 05601.

Copyright 2009 by The Montpelier Bridge

PAGE 2 • JUNE 18, 2009 THE BRIDGE

A Big Bequest for Barre

The city of Barre has a very nice problem on its hands: what to do with a windfall of cashfrom the estate of a Barre native. Sixty-six-year-old Charles Semprebon left an estate

worth roughly $3.5 million when he died on May 24 in New Mexico during a cross-countrybicycling trip. In his will, he named the city as his primary beneficiary.

He made one earmark: $1 million to be split between Barre City and Barre Town to com-plete a planned network of bike paths in the two communities. The bulk of his estate is leftto Barre City to provide for “civic improvements that the city cannot afford to pay out of thegeneral fund budget.”

“I had no idea this was coming,” says Barre Mayor Thom Lauzon, who learned of the mas-sive gift last week at a meeting with members of the Semprebon family. As for what to dowith the money: “The first focus is on the bike paths,” he says. “There needs to be a delib-erative process” in deciding how to spend the remainder of the bequest. “The Semprebonfamily needs to figure prominently in that discussion. They knew him best.”

Given Semprebon’s advocacy of fitness and cycling, Lauzon believes that some of his es-tate might be used to realize long-delayed plans for regional bike paths throughout centralVermont. He and Barre Town Chair Jeff Blow are putting together a regional committee todiscuss ideas. Lauzon also hopes to identify projects that could qualify for state or federalmatching funds to make the bequest go even farther.

Cheshire Cat Grows Up

Abig change is coming at The Cheshire Cat, the clothing-and-craft store at 28 Elm Streetin Montpelier: Owner Lucy Ferrada is discontinuing her children’s section.

“Adult sales have been really good,” she explains. “I definitely have a niche in craft andcraft-style clothing. And I spend a lot of my own time designing and hand-painting clothingfor adults.” So she decided to focus on what had become the core of her business.

The decision is a tad bittersweet: before Ferrada opened The Cheshire Cat, she and herhusband Joe owned Cow & Lizard, a nationally known manufacturer of children’s clothing.Between the two ventures, she notes, “that was 20 years of my life doing children’s clothingin one way or another. So it’s a little nostalgic, but good.”

Throughout June and July, Ferrada is having a countdown sale on her remaining children’sinventory. For the rest of June, all kids’ items are 35 percent off; in the first half of July, 50percent; and in the last half of July, anything left will be 75 percent off. “I’m not sure I’ll havemuch left by then,” she says. “I was amazed at how many people came in the first twoweeks.”

She’ll spend August reorganizing the store and will hold a Grand Opening for the newCheshire Cat in September.

Simply Delicious on the Move

One of the mainstays of Barre’s Main Street is moving around the corner. Simply Deli-cious, which sells candy, gift items, and Vermont-made foods, will close its 160 North

Main location at the end of June; by late July, it will reopen in the old railroad depot at 1Depot Square, just off Main. Its cotenant, Bag Ladies Express, will also make the move.

“It’s a great building and a great opportunity for us,” says Christine Conti, owner of Sim-ply Delicious. And right now, a great opportunity for shoppers: through the month of June,everything in the store (except Fred Swan merchandise) is discounted by 10 to 30 percent.“The more I can sell now, the less I have to move,” says Conti. “Do your Christmas shoppingearly!”

There will be some changes in the new space. Simply Delicious will add baby gifts, freshpopcorn, and “retro candy”—items you might remember from childhood but are no longerwidely available. (Zagnut, anyone?) Bag Ladies Express, which makes take-out food, will adda small lunch counter and some outdoor seating. Also, Simply Delicious will staff a new Barrevisitor’s center, which will open in the depot.

Outdoor Movies on the Green

Vermont College of Fine Arts (VCFA) will hold an outdoor film series this summer. Open-ing night is July 10; it continues each Friday evening through the end of August. The lo-

cation is the campus green in front of College Hall. The films will be shown on an 8-by-10-foot screen near the fountain.

“We’d been thinking for a while about an arts-related event on the green, to bring the com-munity together,” explains Stacy Theberge, VCFA director of External Affairs. “Outdoormovies seemed like a great way to do that.” The lineup is still being finalized, but all filmswill be appropriate for viewers of any age.

Showtime will be roughly 8:30 p.m. Moviegoers will be encouraged to show up early witha picnic, a blanket, and some lawn chairs. The Bridge will publish more information in earlyJuly, including a complete schedule of films.

Permanent Home for the VCFA Store

In other news from the hill, a room just inside the main entrance to College Hall is beingoutfitted as a limited-service retail outlet for VCFA-related books and materials and VCFA

clothing and giftware. Throughout the 27-year history of the college’s low-residency MFA in Writing Program, it

has had a temporary store during student residencies. The new VCFA Store will now have apermanent location, but hours of operation will remain limited. “It’s mainly for students,”Theberge explains. “We don’t want to compete with the bookstores in Montpelier. In fact,we’re working with them, to purchase our books through the local stores.”

As for VCFA merchandise, “we’d like to sell it to the public,” she says. For now, the VCFAStore is only open when low-residency students are in town or upon request; Theberge saysthe college may start opening the store during special events on campus.

—all items by John Walters

HEARD ON THESTREET

Weather OutlookRoger Hill’s Forecast

More wet cool weather, possible drying and warming next week.

Synopsis: With the official start of summer occurring at 1:45 a.m. EDT on Fathers; Day (Sun-day, June 21), the hope would be that Dad could get out of the house and do some summerrecreation without getting wet. But he may have to wait just a little longer, as a period ofmostly gray and unsettled weather continues this weekend before a drying trend andwarmer temperatures work into the region. Why so nasty this first half of June? Some of thekeys to our recently chilly and very wet weather lie in the Arctic Circle, where there hasbeen an absence of strong storm systems. Instead, a teleconnection parameter called the“arctic oscillation” has forced chilly air much further south than usual. This, with a powered-up jet stream more typical of April and early May, has brought many disturbances andweather systems through our region. Another ingredient has been an abundance of moistureheading northward on a collision course with the cooler and somewhat drier air acrossCanada. The result has been gray, cool, and frequently wet weather. But the arctic oscilla-tion phase appears to be changing! This could provide the right combination of conditionsfor next week to be much more summer-like. Some models were hinting at 80s and some-what humid weather by the middle to end of next week.

Forecast for Montpelier and VicinityToday (Thursday, June 18): Thickening clouds. Showers overspreading the region late morn-

ing toward Rutland, and into the Northeast Kingdom later in the afternoon. A high 60 to 65.South to southeast breeze 10 to 20 mph.

Friday: Rain in the morning exiting as few leftover sprinkles. Maybe a break or two of sun laterin the afternoon. Temperatures in the low to mid 60s. Light winds.

Saturday: Considerable cloudiness. Occasional showers likely in the afternoon. A high around65. East winds 10 to 15 mph.

Sunday, Fathers’ Day and the summer solstice: Mostly cloudy. A chance for light showeractivity. A high in the upper 60s. Northeast breeze 10 to 15 mph.

Outlook for Monday: Chance for a morning sprinkle, then partly sunny in the afternoon andnot as cool. Highs reaching into the upper 60s to low 70s. Northerly breeze 10 to 15 mph.

For updated weather information, visit Roger’s website at www.weatheringheights.com.Roger’s forecasts can be heard on Radio Vermont/WDEV, 550 AM and 96.1 FM, weekdaysat 6:10, 7:15 and 8:10 a.m. and 12:32 p.m.; and at 7 weekday mornings on WCVT-FM 107.1.

Nona Estrin’s Nature WatchWith calendar summer less than a week away, the gardens are finallystarting to take off, and tiger swallowtail butterflies seem to graceevery late lilac (Miss Kim is one late variety). Summer gets busier andbusier. With so much going on, so much to do, what could be moreimportant that taking time to stop awhile and pay attention, to reallybe and see where you are? I tell myself this as we plan visits to andfrom friends and relatives. So, quick, drop everything, and get out tosmell the air, look at the sky, and feel and see the world!

Credit and Debt • Social Security • Retirement • Insurance • Real Estate • College • Taxes • Investments

THE BRIDGE JUNE 18, 2009 • PAGE 3

If the past year has proven anything toanyone, it’s that the world of finance isfar from straightforward, and policies and

decisions that seem far removed from ourlives actually impact us in major ways. Thisquiz is designed to gauge your financial liter-acy and to see if you’re connecting all thedots and have the information you need tonegotiate during these challenging times.

The quiz is divided into different areas; allthe questions are true or false (no essays re-quired). You may breeze through some top-ics and struggle on others. Answers are at theback, along with explanations. You’re grad-ing yourself, so pat yourself on the back forwhat you do know, and do some additionalreading to bone up on areas where you’reshaky.

Questions

Credit and Debt1. Credit is a reputation for solvency and in-

tegrity that entitles and enables a personto be trusted when borrowing or buying.

2. Debt is something that is owed, such asmoney, goods, or services.

3. Collateral is property pledged by a bor-rower in order to obtain a loan and maybe seized by the lender if the borrowerfails to pay the full amount borrowed.

4. When a borrower defaults on a nonre-course loan, the lender may take only thecollateral pledged for that loan.

5. Credit agencies keep an accurate recordof all sums you owe, and all three majoragencies will have identical reports onyou.

6. You may request free annual credit re-ports from each of the three major agen-cies once each year, including yourcredit score.

7. Credit scores only factor in whether youpay your bills, not what you owe.

8. It’s easy to borrow with a good creditscore; a bad score makes borrowing im-possible.

9. Nonsecured credit (without a collateralpledge from the borrower) typically car-ries a high interest rate because it isriskier for the lender.

10. Debt is debt and should be avoided;there’s no difference “good debt” and“bad debt.”

11. Bankruptcy and insolvency are one andthe same and occur when the value ofyour liabilities exceeds the value of yourassets.

Social Security12. Paying into Social Security is the same as

saving for retirement—they must pay outto you at least as much as you pay in.

13. Once the Social Security trust fund goesbroke, money won’t be available to payout benefits to retirees.

14. If you were married for at least 10 yearsbefore divorce, you can claim a Social Se-curity benefit based on your ex-spouse’searnings if it’s larger than the benefitbased on your own earnings.

15. The size of your Social Security benefit isdetermined by the amounts you pay in

over the years and the number of yearsthat you work.

16. If you’re temporarily disabled, you maybe entitled to Social Security disabilitybenefits.

17. Minor children of deceased parents areentitled to Social Security benefits.

18. You’ll receive the largest lifetime benefitif you begin receiving Social Security atage 62.

19. Even though you’ve already paid taxes onthe amounts you’ve contributed into theSocial Security system, you may have topay income taxes on amounts you re-ceive.

Retirement20. If you’re employed, you are required to

retire from your job when you reach age70.

21. A defined benefit pension plan pays youa predetermined amount each and everymonth for as long as you live.

22. Tax-deferred retirement accounts allowyou to save for retirement with moneyfrom your current wages. The amountsyou save now are taxed when you takethe money out of the account, not whenyou earn it.

23. A spouse who doesn’t work at a payingjob may not make contributions into anIRA.

24. People choose to defer paying tax ontheir retirement contributions becausethey assume they’ll pay lower incometaxes in retirement.

25. If you take distributions from your IRAbefore the year in which you turn 59 1/2,you’ll pay a 10 percent additional tax, nomatter what!

26. You can invest your IRA in whateversorts of securities you want, even in realestate, with very few exceptions, but thecontributions you make must be in cash.

27. 401(k) plans (and 403[b] or 457[b] plans,for nonprofit or public-sector employ-ees) can be invested however you want,with no restrictions.

28. It makes sense to borrow from your401(k) plan, since you’ll pay yourself in-terest.

Insurance29. Insurance is a form of risk management,

where a group of people pay smallamounts (premiums) against the possibil-ity of a large, potentially catastrophicloss, such as the cost of a major illness.

30. Everybody, no matter what their situa-tion or age, should have some life insur-ance, even if it’s only enough to pay for afuneral.

31. For most people who need life insur-ance, term life is the way to go: it’s af-fordable, and it does what it has to do—provide protection for your loved ones incase you die.

32. Variable or whole life insurance policiesare great investments, since the cashvalue in them builds up over time.

33. Disability insurance only pays you ifyou’re disabled on the job.

34. Payments you receive for a disability arealways taxable to you.

35. Your employer is required to carry work-man’s compensation coverage for you.

36. If you’re laid off from your job throughno fault of your own, you’re entitled tocollect unemployment compensation,since your employer has been paying un-employment insurance premiums onyour behalf.

37. Long-term care insurance is unnecessaryonce you’re over age 65, since Medicarewill pay for nursing home care if youneed it.

38. Using the same insurance company to in-sure your home and your car will usuallysave you on your total premiums.

39. You should never self-insure; no onecould possibly have the necessary re-sources to withstand a major loss.

40. Private mortgage insurance (PMI) willmake your mortgage payments for you ifyou are financially unable to do so, pre-venting the bank from foreclosing onyour property.

Real Estate and Mortgages41. Real estate is land, including anything

permanently attached to it, like build-ings.

42. The purchase price for real estate is de-termined by what a willing buyer willpay a willing seller for a particular pieceof property.

43. You must have a 20 percent down pay-ment to purchase a piece of real estate.

44. Banks are required to lend you money inexchange for a secured interest (a mort-gage) in the property you are purchasingprovided your debt-to-income ratio (theamount of your monthly payments for alldebts, including this mortgage, as a per-centage of your gross monthly income) isless than 33 percent.

45. Interest-only mortgages are a great wayto get into real estate since they keepyour monthly payments low.

46. Mortgage rates lower when the FederalReserve lowers short-term interest rates.

47. Refinancing your home makes sensewhen you have lots of credit-card debtyou want to pay off.

48. Real estate is one of the best investments,as values almost always increase overtime.

49. It’s always better to buy a home than torent, since renting means you’re justthrowing your money away month aftermonth.

50. If you find that you owe more on real es-tate than it’s worth, you’re better off let-ting the bank foreclose on that propertythan continuing to make payments.

51. If you’ve been turned down for a mort-gage by one bank, give up. Every banklooks at the same credit scores; not qual-ifying at one bank means no bank willlend to you.

Saving and Paying for College52. The only types of tax-advantaged college

savings plans are 529 Plans and CoverdellEducation Savings Accounts (ESA).

53. To qualify for federal financial aid, stu-dents (and their parents, if they are stilltheir parents’ dependents) must com-

plete the Free Application for FederalStudent Aid (FAFSA) each and every year.

54. The Expected Family Contributionamount that the FAFSA calculates is set instone; colleges won’t consider loweringthat amount, no matter what your cir-cumstances.

55. When determining how much financialaid a family is entitled to receive, collegescount the parents’ assets at the same rateas they count the student’s assets.

56. Anyone may establish a 529 Plan or aCoverdell ESA for any student.

57. If you fund a 529 Plan or a Coverdell ESA,you’ll receive an income tax deductionfor the amount that you put into the plan.

58. You’ll only owe income taxes on the in-come portion of distribution from a 529Plan or a Coverdell ESA if that distribu-tion wasn’t used to pay qualified ex-penses.

59. If you decide to pay educational ex-penses using distributions from your In-dividual Retirement Account, you’ll notonly owe income taxes on the distribu-tion, but you’ll also have to pay a 10 per-cent additional tax.

60. It may take a village to raise a child, but ifa grandparent, other relative, or even afamily friend pays for your education,those payments become taxable incometo you.

61. With a slim budget, forget about sendingyour child to a private college. No matterhow much aid private schools are willingto give you, state schools are alwayscheaper.

62. If the financial aid package that you’vebeen offered includes a variety of fund-ing, including outright grants and loans,you’re not allowed to pick and choosebetween the various types of aid; youmust accept, or reject, them all.

Taxes63. Any money or other property you re-

ceive during the year is taxable incometo you; you must declare it on your in-come tax return and pay taxes on it.

64. A tax is an amount of money you mustpay to a government that is calculated asa percentage of the value of income orproperty.

65. The payment of income taxes is volun-tary; the U.S. Constitution actually pro-hibits forced tax collection from U.S. cit-izens.

66. You’re not required to declare cash pay-ments to the IRS.

67. The IRS. sets federal tax policy.68. It’s better not to file a tax return when

you don’t have the money necessary topay all the taxes owed than to file oneand fail to pay the full amount of the tax.

69. When the IRS sends you a letter statingthat you owe more tax, you must acceptits determination. After all, they have ex-perts who calculate these things.

70. Charitable contributions are only de-ductible if you itemize your deductions,if you have proof of the contributions

continued on page 4

The Financial Literacy Quiz


from the organization(s) to whom yougave, and if you have actual receipts forindividual contributions that are $250 orgreater.

71. When you sell your house for less than itcost you to purchase and improve it,you’re allowed to deduct the loss onSchedule D.

72. If you sell your house for more than itcost you to purchase and improve it, youmay not owe any tax on the profit pro-vided it doesn’t exceed $250,000($500,000 if you’re married and filingjointly) and you lived in that house for atleast two of the last five years.

73. With graduated taxes, the more you haveor earn, the higher the percentage of taxyou pay; flat taxes, on the other hand,have everyone paying the same basicrate.

74. Death taxes should be done away with,since that property’s already been taxed.

Investing and Investments75. Investing should only be done by people

with lots of money; if you have littlemoney, you’re better off putting it in thebank.

76. Investment means using your money inthe hopes of making more money.

77. All investments carry some element ofrisk; the safest investments are typicallythose with the least risk.

78. Bonds, notes, and certificates of depositare all types of investments that pay in-terest; when you purchase these invest-ments, you’re actually lending money tosomeone else.

79. Buying shares of stock means that you’rebuying a piece of a company.

80. Interest is the money you earn when youlend your money to someone else; divid-ends represent the payment of a corpo-ration’s profits to its shareholders.

81. Mutual funds are created when a groupof people pool their money together topurchase a collection of assets, such asstocks, bonds, or real estate.

82. When buying shares of stock, be surethat you receive your stock certificatesfrom the broker; you’ll need them whenyou want to sell those shares.

83. It’s not important to keep track of howmuch you paid for any particular invest-ment; what that investment is worthtoday is the only measurement that mat-ters.

Answers

If you’ve made it this far, congratulations!Now, see how you’ve done.

Credit and Debt1. True. Why would lenders lend if they

didn’t trust the borrowers? In fact, lend-ing to untrustworthy borrowers mightmore correctly be termed gambling.

2. True. If there’s any expectation that youhave to repay it, that’s a debt. It’s proba-bly a gift when the lender has no expec-tation of repayment.

3. True. A classic example of this is real es-tate that secures a mortgage.

4. True. When you default on a nonre-course loan (including most residentialmortgages), the only property the lendercan seize is the real estate collateral thatsecured that loan in the first place.

5. False. The three credit agencies—Exper-ian, TransUnion, and Equifax—are noto-rious for compiling reports littered withinconsistencies, inaccuracies, and out-right untruths.

6. True. You should check all three credit

reports at least annually. You’re entitledto one free report per agency per yearusing www.AnnualCreditReport.com.

7. False. Credit scores (including the all-powerful FICO score) factor in whetheryou pay your bills on time, how muchyou owe, how much credit is available toyou, and how long you’ve been handlingcredit.

8. False. A good credit score will enable youto borrow money at attractive rates. Less-than-sterling credit scores will raise theinterest rates lenders will charge you andlimit the amount you’ll be able to bor-row. Even with a truly atrocious creditscore, lenders will still lend to you; how-ever, the interest rates and other termscharged may convince you to wait awhile and try to repair your faulty creditfirst.

9. True. Because lenders have little re-course in collecting from you if you de-fault on an unsecured debt (one withoutany collateral), they will charge higher in-terest rates to compensate for their in-creased risk.

10. False. You incur good debt when youborrow to purchase something that hascontinuing value, such as real estate or aneducation; you accumulate bad debtwhen you borrow to pay for things thateither have no continuing value or losevalue quickly, like vacations or cars.

11. False. Bankruptcy is the legally declaredinability or impaired ability for a personor organization to pay its creditors. Insol-vency indicates your inability to paydebts as they fall due, or that your total li-abilities (debts) exceed your total assets.

Social Security12. False. Provided you, or a parent or

spouse, have paid into the Social Securitysystem, you’re entitled to receive SocialSecurity benefits once you reach a cer-tain age, you become disabled, or you’rethe surviving spouse or minor child ofthe contributor. If you die before you’verecouped all you’ve paid into the sys-tem—too bad. Unless your heirs are enti-tled to survivor benefits, your interest inthe system expires when you do.

13. False. Amounts currently being paid intothe system by current workers will fundapproximately 75 percent of current ben-efits being paid even after the trust fundruns out.

14. True. 15. True. 16. True. If your disability is major, prevents

you from working in your profession,and is anticipated to last for one year orlonger, you may be eligible for Social Se-curity disability benefits.

17. True. Provided the deceased parent con-tributed into the Social Security system,minor children and the surviving spouseare all entitled to receive monthly bene-fits.

18. False. The total amount of your benefitwill depend on how much you receivemonthly times the number of monthsyou collect. Monthly benefits starting atage 62 will be much lower than thoseyou’ll receive that begin at your full re-tirement age. Waiting to begin benefitsuntil age 70 will garner you the largestpossible monthly check.

19. True. If, when you add half of your an-nual Social Security benefit to your otherincome, the total is $25,000 or more($32,000 if you’re married and filejointly, and $0 if you’re married and fileseparately), some portion of your SocialSecurity will be included in your adjustedgross income, and you may owe some in-come tax on it.

Retirement20. False. There are no federal or state re-

quirements as to when you must retire.Your employer, however, may have amandatory retirement age.

21. True. Benefits are based on your salarywhile working and the number of yearsyou worked for that company. Onceyou’re receiving benefits, every monthlycheck will be in the same amount.

22. True. Types of tax-deferred retirementaccounts include traditional IRAs, 401(k)plans, 403(b) plans, and 457(b), as wellas self-employed plans like SARSEPs,SEPs, and Simple IRAs.

23. False. Provided the spouse who is earn-ing has enough income from his or herjob, he or she may make annual contri-butions into the nonearning spouse’s IRAaccount.

24. True. If you suspect you’ll be payingtaxes in a higher bracket at retirement,contribute to Roth IRAs and 401(k) plans(plans that you fund with income that’salready been taxed) instead of tax-deferred plans. With Roth plans, sinceyou’ve already paid taxes on your contri-butions, your retirement distributions areincome tax free.

25. False. There are lots of exceptions to the10 percent additional tax rule, includingdeath, medical costs, education, rollingthe account over to another IRA account,and so on.

26. True. 27. False. You must choose your investments

from a set group your employer selects.28. False. Borrowing money from your

401(k) plan can be risky, especially sinceyou have to repay the money almost im-mediately if you leave your job for anyreason.

Insurance29. True. 30. False. If you don’t owe any money and

you have sufficient assets to provide fordependent family members, why pay forlife insurance?

31. True. If you need life insurance, buy termlife insurance. When investing, othertypes of investments will give you amuch better return on your money.

32. False. They’re expensive, and the insur-ance agent who sold this to you profitsmost.

33. False. Disability insurance pays you ifyou’re disabled for any reason.

34. False. If you pay for the policy yourselfusing money you’ve already paid tax on,benefits paid to you are income tax free.

35. True. 36. True.37. False. Long-term care insurance will pay

for in-home care or nursing home care, ifyou require it. Medicare will only pay fornursing home care, and only for a limitedperiod of time. Once that time haspassed, all additional costs are your re-sponsibility.

38. True. 39. False. If what you’re insuring isn’t worth

much (such as an older car that has littlebook value), the annual collision insur-ance premium may exceed the amountyou’d receive if you totaled the car.

40. False. PMI will only make your mortgagelender whole if you default on your mort-gage and the lender forecloses.

Real Estate and Mortgages41. True. 42. True.43. False. A 20 percent down payment will

probably make it easier to obtain a mort-gage, and you won’t be required to carryprivate mortgage insurance, but it’s pos-

sible, in the right circumstances, to buyproperty with very little money down.

44. False. Your debt-to-income ratios are onlyone factor banks will take into considera-tion. Other factors impacting your abilityto borrow include your income and howlong you’ve been at your job.

45. False. Interest-only mortgages encourageyou to buy more house than you can re-ally afford. You should only choose amortgage where the payments, includingprincipal, fall well within your budgetand where any interest increases will bemodest.

46. False. Short-term interest rates have verylittle impact on mortgage rates, whichare long-term. They will, however, im-pact the interest rates on home equitylines of credit (HELOC).

47. False. Figure out why you’re running upyour credit-card bills, and change yourbehavior instead. You run the risk of los-ing your house to foreclosure when youuse your home equity as a piggy bank.

48. False. Real estate values rise and fall peri-odically. And, when you need to raisecash quickly, real estate takes longer tosell than almost any other type of invest-ment.

49. False. Depending on how high homeprices are in comparison to the cost of acomparable rental, it’s often better, andcheaper, to rent than to buy.

50. False. Provided you can continue makingyour payments, you should honor thenote that you signed. Foreclosure shouldalways be the option of last resort, notfirst.

51. False. All banks view your records differ-ently; if one bank turns you down, try an-other.

Saving and Paying for College52. False. The interest you earn on certain

U.S. Savings Bonds is also tax exempt ifyour income falls below certain limitsand you use the bonds to pay for college.

53. True. Complete the form online atwww.fafsa.ed.gov.

54. False. Colleges understand that circum-stances change. In addition, the FAFSAdoesn’t include everything about your fi-nances. Telling the college about chal-lenges you’re facing may well garner youan improved financial aid package.

55. False. Parental assets are counted at amuch lower rate than student assets.

56. True.57. False. College savings plans are funded

using money you’ve already paid incometax on; however, many states (includingVermont) allow you a state income taxcredit if you save for college in thatstate’s resident savings plan.

58. True. 59. False. You’ll owe income taxes on the

distribution if you’ve taken the moneyfrom a traditional IRA, but there’s no 10percent additional tax.

60. False. It’s a gift, not taxable to the recipi-ent. If the kindly soul that’s paying sendsthe money directly to the school, evennormal gift tax rules are suspended.

61. False. Private schools often have large en-dowments, which enable them to givehefty financial aid awards that stateschools can’t afford.

62. False. You may accept whatever parts ofthe award you’d like and reject the rest.

Taxes63. False. Gifts (money or property you re-

ceive where the person giving has no ex-pectation of services performed or re-payment) are not taxable to you.

64. True.

continued from page 3




65. False. This is one of the most widely heldmisconceptions about taxes in this coun-try; believing this could land you in jail,just like Wesley Snipes!

66. False. Payments you receive for servicesyou perform, whether received bycheck, in cash, or in kind (bartering, forexample), are taxable income to you.

67. False. Congress sets federal tax policy;the IRS enforces it.

68. False. Filing a tax return on time will stoplate filing penalties, and it’s relatively sim-ple to set up a payment plan with the IRSthat won’t kill your budget.

69. False. The IRS’s computer, just like yours,depends on the quality of the informa-tion that’s input, plus it may lack infor-mation. Mistakes often happen, so youshould never accept its assessment of ad-ditional tax without checking over itsreasoning carefully.

70. True.

71. False. The loss on the sale of your per-sonal residence is a nontaxable event.Congress figures you bought the houseto live in, not as an investment, and treatsit accordingly.

72. True. You may even be able to exclude aportion of the gain if you’ve been forcedto sell the house before you meet thetwo-out-of-five-year requirement, al-though those rules have recently beenrevised, so check with a qualified tax ad-visor to be sure.

73. True.74. False. There’s no such thing as death

taxes. Estate taxes are based on propertyvalues at the decedent’s date of death.Paid by a tiny segment of the population,estate taxes are primarily assessed on pre-viously untaxed accumulated wealth.

Investing and Investments75. False. The minute you open a savings ac-

count, you’ve just become an investor.Investing is for everyone.

76. True. 77. True.78. True.79. True. 80. True.81. True.82. False. The only use for stock certificates

these days are as framed artwork. Sharestoday are traded in so-called street ornominee name, through a stock broker(including online brokerages), whokeeps track of those shares owned inyour name.

83. False. Tracking your acquisition cost(basis) for each investment is critical sothat, when you sell it, you’re able to de-termine if you made, or lost, money.Knowing your basis ensures that you’llonly pay taxes on the portion of the salesprice that exceeds your basis; when you

don’t know the basis, you’ll pay capitalgains tax on the full sales price.

Margaret (Peggy) Atkins Munro, EA, is atax consultant, writer, and lecturer. A solepractitioner located in Essex Junction, Ver-mont, she has over 30 years experience invarious areas of taxation and finance, spe-cializing in, among other things, individ-ual and small business tax issues.

Peggy is the author of 529 and Other Col-lege Savings Plans for Dummies and has co-authored Taxes 2009 (2005, 2006, 2007,and 2008) for Dummies, and Estate andTrust Administration for Dummies. In addi-tion to her biweekly column for The Bridge,she has been interviewed on numerous fi-nancial and tax-related topics by, amongothers, CNN Radio, Family Circle, U.S. Newsand World Report, USA Today, Parents Maga-zine, and the Associated Press.




Business and Real Estate

BLACK INK PROPERTY MGMT., LLC

Central Vermont:❦ Full Property Management,

specializing in Single Family Homes

❦ Multiunits

❦ Commercial Properties

❦ Tenant Screening and Selection

ED & JANE BENOIT

100 State Street, Suite 249Montpelier VT [email protected]

P. 223-0126 • C. 802-793-4013 • [email protected] • Route 14, East MontpelierPROPANE DELIVERY • AIR CONDITIONING • INSTALLATION • SERVICE

Locally owned and operated.Call us for your propane needs!

• Residential• Commercial• Handpaint or Spray• Metal Roof Painting• Vinyl & Aluminum

Painting• Interior/Exterior

• Free Estimates• Reasonable Rates• Neat, Quality Work• Professional Service• References• Insured• EMP Certified

• New Construction• Renovations• Woodworking• General Contracting

223-3447clarconstruction.com

www.bigrocklandscape.com

793-6607“Intentionally Better”

Commercial andResidential

Fully InsuredLawnMaintenanceToo!

P R E C I S I O N P A I N T I N GINTERIOR AND EXTERIOR, NEW CONSTRUCTION, EXISTING HOUSES

Reasonable Rates. Fully Insured.20 Years Experience. Commercial and Residential. References Available.

Cris Michaud 223-0120 or cell 272-9809

Sam Clark Design◆ kitchen design

◆ cabinets

◆ accessible design

◆ ecological kitchens

Office: 802 479 4018www.samclarkdesign.com

Repairs • New floors and wallsDecorative Concrete

Crane work • Consulting Since 1972

(802) 229-0480 • gendronconcrete.com

ENERGYSAFE HOMES LLCCharlie Woodhams, Certified Energy Auditor

9 Brook St. • Barre, VT 05641 • [email protected] • 479.9154

HEATING BILLS LEAVING YOU COLD?Save Energy $$$: Schedule a Blower Door Test Today!

Zero V

OC

Volatile O

rganic C

ompounds

NON-TOXIC PAINT is the result of funda-

mental research that generated numerous patents and scientific

breakthroughs. The makers of Mythic paint partnered with poly-

mer researchers at the Univeristy of Southern Mississippi to de-

velop this elite, non-toxic paint, even in dark and bright colors.

Available at Blouin’s in Montpelier

Introducing

Stronger, safer, smarter paint.

34 BARRE STREET, MONTPELIER ~ 229.4040

On a wonderful lot backing up to woods with a pleasant view and nice landscaping, this Montpelierhome has been impeccably maintained. Large bright living spaces include a large living room and bigformal dining room, an updated kitchen, and three bedrooms. A comfortable L-shaped family room hasa cozy gas fireplace and glass doors open out to the big rear deck. Offered by its original owners since1967. $236,000.

81 Main Street, Montpelier

229-0345 • HeneyRealtors.comA Trusted Name In Real Estate Since 1956

New in MontpelierNew in Montpelier

A D V E R T I S E ! 2 2 3 - 5 1 1 2

recycle


Locally owned and proud of our independence!

Ask us about Medicine-on-Time,

Personal Prescription System

Richard Harvie, RPh. Jocelyn DePaolis-Thivierge, RPh.

Comfort Inn & Suites MAPLEWOOD LTD.

Exit 7, I-89, Montpelier, VT. 802-229-2222

www.comfortinnsuites.com

89 Rooms · 18 2 1/2 Room Suites · VIP Suite with Whirlpool and

Steambath · Lounge Open Daily · Free Deluxe Continental Breakfast ·

Centrally Located

Convenience Store on Property

· Free Business Center In Lobby · Complimentary High Speed Internet in Every Room

FREE Wireless Internet Access Throughout Hotel!

• Free Business Center in the Lobby

• Complimentary High Speed Internet in Every Room

Fresh Hot Waffles Every Day • Centrally Located

Tell them you saw it in The Bridge!

Bedding PlantsPerennialsHardy Nursery StockApple TreesBlueberry Bushes Vegetable Starts

Route �� CabotOpen Every Day & to '�'()�*+,

CABOT GREENHOUSE AND NURSERY

WE DO IT ALL!Countertops • Hearths

Dedication plaques

Wholesale • MemorialsFrom design to cemetery2 Granite Street, Montpelier

223-3502

NORTHEAST GRANITE CO.

Deborah DeGraffLicensed Acupuncturist with 24 years experience

Call for an appointment. 223-6821

Cranio-Sacral Work and AcupuncturePromotes Rest, Relaxation, and Restoration, Keep-

ing Your Body in Balance and Your Immunity Strong

LIMEHURST LAKE CAMPGROUNDRte 14, Williamstown • (802) 433-6662 • www.limehurstlake.com

250-foot WaterslidePicnic Area, Swimming

Public Beach: openevery day, 10 am – 7 pm

S U M M E R F U N !S U M M E R F U N !Season

Passes


Calendar of Events★★

Upcoming EventsFRIDAY, JUNE 19Sign Up for Dungeons and Dragon at the LibraryItching to battle? Meet your volunteer Dungeon Master and establish your adventuringparty. You must be able to commit to four Fridays of gaming, 4–5:30 p.m., starting July 10.Kellogg-Hubbard Children’s Library. 223-4665.

Vermont Mountaineers Game vs. New Bedford6:30 p.m. Montpelier recreation fields, Elm Street. $4 adult, $3 senior, student, or mili-tary, $10 family. College Hill neighborhood night. www.vermontmountaineers.com.

Green Mountain Opera Festival: The Marriage of FigaroMozart’s comedy, chronicling the 24 hours prior to getting the wedding to the church ontime and parodying the18th-century upper class. Performance repeats Sunday, June 21.7:30 p.m. Barre Opera House. $10–$50. Tickets at the Opera House box office, 476-8188.

SATURDAY, JUNE 20Peregrine Falcon ForayFor youth birders. Come help monitor the pair of peregrines at Marshfield Mountain.9 a.m.–12 noon. Free. Contact the North Branch Nature Center at 229-6206 for meetingplace and more information.

Mini History ExpoWashington County historical societies highlight the lore and artifacts of central Vermont.9 a.m.–4 p.m. Pavilion building, Montpelier. Free. Special events throughout the day.Cosponsored by the Montpelier and Vermont Historical Societies.

Trail Work in East MontpelierHelp build new hiking trail. All abilities welcome. Arrive anytime, stay as long as you want.9 a.m.–5 p.m. Mallory Brook Trail, end of Johnson Road. 655-6051 or www.hikingtrailbuilders.com/mallory.

Shop with the Chef at the Farmers MarketAriel Zevon and Adam Woogmaster, chef/owners of Local Agriculture Community Exchangein Barre, prepare dishes made with seasonal market offerings. Free samples and recipes.10:30 a.m. Capital City Farmers Market, 60 State Street, Montpelier. Free. 685-4360 orwww.montpelierfarmersmarket.com.

College Hill Neighborhood PicnicGames, music, pie contest with celebrity judges, and more. Bring a potluck dish, chairs orblankets, plates and utensils, beverages, and musical insruments.4–8 p.m. Vermont College green. Pie judging at 5:30 p.m., jam session at 6:30 p.m. Raindate June 27. Andrea, 229-2326.

SUNDAY, JUNE 21Hike with the Green Mountain Club, Montpelier Section Difficult, nine-mile hike in Stowe on the west side of Mount Mansfield.Contact leader Steve Lightholder, 479-2304, for meeting time and place.

Blazin’ Cellos ConcertTwenty-two cellists and a bassist, under the direction of Robert Blais, perform Dvorak,Bach, the Beatles, a tango, and a new work by Vermont composer Lydia Busler-Blais.3 p.m. Unitarian Church, Montpelier. Free. Contact [email protected].

Green Mountain Opera Festival: The Marriage of FigaroSee Friday, June 19, for description.3 p.m. Barre Opera House. $10–$50. Tickets at the Opera House box office, 476-8188.

Vermont Mountaineers Game vs. Newport6:30 p.m. Montpelier recreation fields, Elm Street. $4 adult, $3 senior, student, or military,$10 family. Downtown/Cliffside neighborhood night. www.vermontmountaineers.com.

Traditional Irish Music on Fiddle, Flute, Banjo, and GuitarThree members of The Sevens—Sarah Blair, Mark Roberts, and Flynn Cohen—play Irishtunes and a few American ones, too. Irish session follows.7:30 p.m. The Lamb Abbey, 65 Pioneer Court, Montpelier. $15. BYOB. Sarah, 223-0141.

MONDAY, JUNE 22American Red Cross Blood Drive at Vermont College11 a.m.–5 p.m. Alumni Hall gymnasium, Vermont College, Montpelier. Walk-ins ac-cepted, or make an appointment at 1-800-843-3500, ext. 3265.

TUESDAY, JUNE 23Bike Ride with the Green Mountain Club, Montpelier Section Moderate, 12-mile ride in Calais. Possible swim as well.Meet at 10 a.m. Contact leaders Jim and Marie McWilliam, 229-1761, for meeting place.

Renewable Energy WorkshopColin Sorenson from Alteris Renewables explains renewable energy options, incentives,and site requirements for homeowners.6–7 p.m. Hunger Mountain Coop, Montpelier. Free. Register at 223-8004, ext. 202.

Body Wisdom: Health Talk and Open HouseCurious about chiropractic? Join an open discussion of the body’s unending capacity forgrowth and healing.6:30 p.m. RiverSide Chiropractic, 136 Main Street (carriage house behind 138 Main),Montpelier. Free. 262-6097 or www.riversidechiropracticvt.com

Vermont Mountaineers Game vs. Lowell6:30 p.m. Montpelier recreation fields, Elm Street. $4 adult, $3 senior, student, or mili-tary, $10 family. The Meadow neighborhood night. www.vermontmountaineers.com.

Why Do We Repeat the Same Mistakes Over and Over?An evening of enlightenment with Michael Conforti, Jungian analyst; Sandy Morningstar,body-centered therapist; and David Arnere, astrologer.7–9 p.m. Capitol Plaza, Montpelier. Free. 249-8888 or www.connectwithamymiller.com.

Waterbury Community Band ConcertA varied program of marches and other concert band favorites. 7–8 p.m. Rusty Parker Memorial Park, Waterbury. [email protected].

WEDNESDAY, JUNE 24Water Quality of the WinooskiKim Greenwood, staff scientist at the Vermont Natural Resource Council, discusses waterquality issues impacting the Winooski River as they have evolved over time. Part of theWinooski River Sojourn, a paddling trip sponsored by the Friends of the Winooski River.8:30 a.m. Montpelier High School. Free. www.winooskiriver.org.

Vintage Cars Take Over the GreenView more than 100 pre-1916 cars parked on the college green for a meeting of the NewEngland Brass and Gas Tour, part of the Horseless Carriage Club of America. 11:30 a.m.–1:30 p.m. Vermont College green, Montpelier. Free.

Chiropractic Clinic at the Montpelier Senior CenterReduced rate chiropractic clinic for Vermont seniors. Dr. Jae Ehrich, DC, offers gentle andeffective adjustments using network spinal analysis. An opportunity to unwind tension. 3–5 p.m. Montpelier Senior Center. $15. Call the senior center at 223-2518 to schedulean appointment. www.riversidechiropracticvt.com.

Film Showing: Crazy Sexy Cancer“Diagnosed with a rare, incurable cancer, 31-year-old Kris Carr exits her career and divesheadfirst into an epic journey, becoming a ‘full-time healing junkie.’” Raw treats served.5:30–7:30 p.m. Hunger Mountain Coop, Montpelier. Free. Register at 223-8004, ext. 202.

Vermont Yankee: A Discussion of Our Energy FuturePanelists Adam Greshin, Arnie Gundersen, Dr. Nancy Chickering, James Moore, andLawrence Mott discuss the political, health, environmental, and economic implications of

the upcoming legislative decision on re-newing Vermont Yankee’s license.6–8 p.m. Big Picture Theater, Waitsfield.Free. 496-4566.

Live MusicBLACK DOOR BAR & BISTROFriday, June 19Dr. Burma, 9:30 p.m.Saturday, June 20Mad Mountain Scramblers, 9:30 p.m.Monday, June 22Michael Arnowitt (jazz), 6 p.m.Saturday, June 27Myra Flynn’s CD release party, 9:30 p.m.44 Main Street, Montpelier. $5 coverfor all shows. 223-7070 or www.blackdoorvt.com.

CHARLIE O’SFriday, June 19First in SpaceSaturday, June 20Murder WeaponWednesday, June 24EntandreFriday, June 26Starline Rhythm BoysSaturday, June 27In This Century with The Rogue Birds70 Main Street, Montpelier. 223-6820.

LANGDON STREET CAFEFriday, June 19Sara Grace and the Suits (alt-folk), 9 p.m.

Saturday, June 20Evan Crandell and the Two Hot Two

Handle (funk), 9 p.m.Monday, June 22Open mic, 7 p.m.Tuesday, June 23Mobjack (Americana), 8 p.m.Wednesday, June 24Mari Rosa (world), 8 p.m.R. I. S. E. (world), 9 p.m.Thursday, June 25AJ Shanti (indie folk), 8 p.m.Loop 2. 4. 3. (experimental), 9 p.m.Friday, June 26The Charlie Messing Duo (freak folk),

8:30 p.mmCrunchy Western Boys (bluegrass),

9:30 p.m.Saturday, June 27Doug Perkins, Gordon Stone, and Patrick

Ross (acoustic), 9 p.m.4 Langdon Street, Montpelier. 223-8667or www.langdonstreetcafe.com.

MAIN STREET GRILL AND BARTuesday, June 23Miriam Bernando and Jairo (Spanish),

7–10 p.mTuesday, June 30Doug Perkins and friends (bluegrass),

7–10 p.m118 Main Street, Montpelier. 223-3188.

Submit your event!★ E-mail only, please. Send list-

ings to [email protected].★ Our deadline for the next

issue, June 25, is 5 p.m. onFriday, June 19. The June 18calendar covers events hap-pening June 26–July 3 (more ifspace allows).

★ Montpelier events have prior-ity, then central Vermontevents.

★ Listings may be edited forlength, style, and clarity.

★ All listings are free. In the caseof ongoing events and classes,we give priority to new listingsand one-time workshops.

City MeetingsMONDAY, JUNE 22Planning Commission Meeting,

7 p.m., City Council Chambers

TUESDAY, JUNE 23Design Review Committee Meeting,

5:30 p.m., City Council Chambers

WEDNESDAY, JUNE 24City Council Meeting, 7 p.m., City

Council ChambersCity Hall, 39 Main Street, Montpe-lier. Sandy, 223-9502, ext. 11.

SCHOOL BOARD MEETINGWednesday, June 24, 7 p.m. Montpe-lier High School library.

Documents

CONNECTING OUR COMMUNITY FREE drop-off points Test Your Money