Money question of the week: Where's the dollar headed?

The dollar has been in a steep decline against many of the world's currencies. The Canadian dollar reaching parity for the first time in more than 30 years and anyone who's been to Europe in recent years knows the exchange rate is grim.

Do you think the dollar will keep sinking or are you looking for a rebound? Has the decline in the dollar had any impact on you?

My column in Sunday's paper points out some of the opportunities and pitfalls of trying to cash in on currency movements. Here's a CFTC consumer alert about foreign currency fraud.

Please include your first and last names and cities if you would like your comments considered for pubication in the Times.

[AP Photo]

Pearl Steakhouse getting new life

The Pearl Steakhouse, where Lou Pearlman often held court, is being revived as a tapas restaurant with a new name and new look. Today's Times has the story of Ceviche Orlando at Church Street Station.

Women say Raymond James discriminates, retaliates

Three women who worked at units of Raymond James Financial Inc. have filed this lawsuit against the company in federal court in Chicago.They accuse Raymond James of discriminating against them based on gender, age and race by denying them opportunities for training and advancement, paying them less than men for comparable work, subjecting them to sexual harrassment and retaliating when they complained. The plaintiffs, Beverly Beren, Bernadette Seprish and Pahoua Lee, worked for Raymond James in Atlanta and in St. Petersburg, but they want the suit to be declared a class action including many if not most of Raymond James' women employees.

The suit was filed by Stowell & Friedman, a Chicago law firm noted for bringing discrimination lawsuits against brokerage firms.

In case you've been wondering what the creditors' committee has been up to

You probably can keep wondering. Here's a new order clarifying the requirement for the committee to provide creditors with access to information. Basically, the committee does not have to provide it if the information could be considered confidential. The definition of confidential seems to include practically anything about Lou Pearlman's or Trans Continental's assets or financial condition that hasn't already been made public if it comes from Soneet Kapila or if it was "prepared by or on behalf of" the creditors' committee. There is a procedure outlined for creditors to ask for information and, if turned down, to file a motion to compel the creditors' committee to release the information.

The saga of the Backstreet Boys

This article offers one version (circa 2002) of the saga of the Backstreet Boys and their rivalry with *NSync as Lou Pearlman proteges.

The Tampa Bay economy was hot--in 2005

The government's Bureau of Economic Analysis put out its first-ever report of Gross Domestic Product (GDP) by metro area yesterday. Among the details: The Tampa Bay economy is about the size of Peru's. Florida's metro areas scored extremely well, thanks in large measure to the red-hot real estate market. Of course things have cooled considerably since then. Here's my story from today's Times and here's a link to the bureau Web site where you can find details on every metro area in the country (see the links on the right-hand side of that page.)

Everything's coming up Rolls Royces

Bankruptcy trustee Soneet Kapila is going after Ultimate Motor Works of Longwood, which won't give back the deposit it took from Lou Pearlman for a new Rolls Royce or a 1984 Rolls belonging to Pearlman that it has been keeping in storage. Kapila says he doesn't know how much money Pearlman put down. In her deposition, Rene Chamberlain tossed around several numbers from $17,000 to $25,000. She didn't have any success getting the money back either.

The 1984 Rolls was damaged in a car accident. Ultimate Motor Works estimated repair costs at $10,285 and also wants $2,793 in storage fee going back to Jan. 18. An auto wholesaler contacted by Ultimate Motor Works offered to buy the car "as is" for $6,500. Kapila has turned down the offer and is demanding the car back. He says storage fees before the March 1 bankruptcy filing are the same as any other debts Pearlman incurred and will only be paid by the bankruptcy process. Kapila wants the court to order the company to hand over the 1984 Rolls, the deposit on the new Rolls and all documents relating to both vehicles.

Also-The emergency hearing on Kapila's complaints against Chamberlain is scheduled for Oct. 4.

[Photo from Times files]

A library visit that's better than free

A visit to the St. Petersburg Public Library this Sunday could pay big dividends. Investor Education @ Your Library looks like a worthwhile program for those who want to learn more about investments, planning for college or retirement or planning for income in retirement. The free program is from 1:30 to 4:30 p.m. with registration at 1:15 p.m. at the main library, 3745 Ninth Ave. N, St. Petersburg.

Participants will each receive the following booklets and guides:

  Five Keys to Investing Success

  Getting Help With Your Investments

  The Six Strategic Steps: Your Roadmap for Investing Wisely 

You can get more info here or by calling the library at (727) 893-7724.

[Florida Office of Financial Regulation photo]

How can I cash in my Krugerrands?

Question: My mother left me 10 one-ounce gold Krugerrands.  I see gold is more than $700 an ounce. Is this a good time to cash in and how does one do that?

Answer: Yes this is a good time. However, I cannot tell you whether there will be a better time later if you hold onto them. The way to cash in your Krugerrands is to take them to a coin dealer. The most efficient way to do this is to make a list of dealers, call them and ask them how much they will pay for your stash. For each coin you can expect to receive $10 to $15 less than the current price of gold. (If you buy, you pay about $10 more than the current price--the difference is the dealer's take.) Naturally you want to deal with someone who has been in business for a while. However, you don't have to worry about finding someone who is a coin expert since you are not dealing with a rare coin. A Krugerrand is a commodity coin with its worth based on its gold content, not on its rarity or beauty. 

(Photo credit: St. Petersburg Times)

Can I move my Canadian retirement money to an IRA?

Question:We opened a Canadian RRSP ( Registered Retirement Savings Plan) in the 1970s when we were Canadian residents/naturalized citizens. Now we are in our mid-to late 50s and we would like to have our RRSP funds transferred to a local US bank IRA. Can we accomplish this safely without any penalty or causing a loss and major tax penalties? It seems appropriate to have our money close to where we live and plan to retire. We gave up Canadian citizenship in 2000 when we became naturalized US citizens.

Answer: I am not an expert on foreign tax law, but my resesarch indicates that moving money out of the Canadian account would trigger a Canadian tax obligation. If you are going to have to pay taxes in Canada, the last thing you'd want to do is put the money in a U.S. account where you'd have to pay taxes again when you withdrew it. Here are a couple of sites (one and two) with some discussion of this topic. The U.S. tax law is very specific about which types of accounts are eligible for IRA rollover and foreign accounts are not among them.

Money question of the week: Do we need PIP?

   What do you think about the state doing away with PIP (Personal Injury Protection) as a requirement for all drivers? Will you add to your other coverage as a result?

The requirement to buy PIP coverage will expire Oct. 1 unless the Legislature decides to extend it. Right now they're working on a deal to call a special session to do just that, but it's still not a guarantee. Opponents of PIP say it leads to fraud and people should have a choice about what coverage they buy. Proponents say it assures at least basic coverage for injuries and that without it, hospital emergency rooms will get stuck treating injuries with no reimbursement. What do you think? If you include your first and last names and city, your comments will be considered for publication in the Times.

This also is a good time to remember that PIP pays no more than $10,000 per person for car crash injuries. If you are injured in a serious accident, or are at fault in an accident that does serious injury to someone else, the bill certainly will be higher. In my column today, I look at the other types of coverage that pay for accident injuries.

Soneet's after another Pearlman lawyer

Bankruptcy trustee Soneet Kapila filed this motion and supporting documents to compel Orlando lawyer Robert Leventhal and his law firm, Leventhal and Salughter, to turn over documents. He also wants them sanctioned for failing to do so.

Update:

Orlando Sentinel story 9/24

Pearlman tells reporter he has no regrets

"I'm proud of everything I've done," he said. "I've had a great, great time. I've just enjoyed all of the people throughout my career. We were the pioneers of a new regime. We brought a lot of joy to the world."

That gem of a quote is from Tyler Gray's jailhouse interview with Lou Pearlman last July and published in the October issue of Radar magazine (not yet available online). Gray concludes that "it's clear Pearlman fancies himself a king in exile, convinced that virtually no amount of wrongdoing can overshadow the contributions he has made to music."

 

US5 could be singing for Soneet

Bankruptcy trustee Soneet Kapila has worked out a deal with a German company that might result in the payment of 20,000 Euro (almost $28,000) from US5's fall 2007 tour. Wizard Promotions, which is managing the tour of Germany and Poland on behalf of another German company, Triple-M, agreed to put the money in escrow pending a court judgment. Transcontinental Records has a co-production agreement with Triple M, which Soneet says entitles the bankruptcy estate to share in the proceeds. However, Triple M says the co-production agreement doesn't exist. A German law firm has been pursuing the case on the trustee's behalf and this deal allows the tour to continue in the meantime. It does not impact any other claims Soneet might have to proceeds from the sale of CDs, DVDs or other merchandise or to proceeds from other US5 tours. So sing on!

(US5 publicity photo)   

August financials filed today

For those who are keeping track, here are the financials filed today in the two primary bankruptcies: Lou Pearlman, Trans Continental Airlines.

Of course they aren't nearly as much fun to read as the transcript of Rene Chamberlain's examination/deposition in the post below. If you are a regular MoneyTalk blog visitor, I think you'll find the examination fascinating reading for a couple of reasons. One is seeing the names of people you have come to know. I got a particular kick out of the fact that Rene said she learned she was supposed to show up for her exam through the MoneyTalk blog. There also are references to the litigation against Frank Torelli and Les Henderson and mentions of others who frequently post or are mentioned on this blog. The other reason this is interesting is that the questions being asked offer some insight into the investigation itself. So cozy up to your computer or print it out and enjoy some bedtime reading.

Soneet Kapila wants Rene Chamberlain to go to jail

Lou Pearlman/Trans Continental bankruptcy trustee Soneet Kapila wants the bankruptcy judge to send former Trans Con lawyer Rene Chamberlain to jail for contempt of court. He is requesting an emergency hearing on this motion to compel her to answer his questions. He also wants to inspect unopened mail  she claims is protected by attorney-client privilege. He wants a computer expert to examine her laptop, which she has claimed was lost or stolen. And he wants her held in contempt of court. Kapila says that she "has engaged in a pattern of outrageous and contemptuous conduct."

Here is a transcript of Chamberlain's examination: Part 1 Part 2 

Here is some other background info.

St. Petersburg Times story

How can I buy General Electric stock without using a broker?

Question: I want to buy stock directly with General Electric. Do you know how I can do this? I heard you set up an account with their bank which is in New York. I tried emailing them and got nowhere.

Answer: You can invest directly in General Electric and many other companies through this Web site.

What if you want to invest in a company that isn't on the site above? First, check this Web site to see if you find the company listed.

Still not there? Here is another site with a list of companies with direct purchase plans. Try clicking on the company name, which will take you to the company Web site. From there go to "investor relations." Don't see anything about a direct purchase plan? If you go back to your starting point and click on the stock symbol, you will take end up at Sharebuilder, which is a brokerage that specializes in automatic investing plans.

Buying stock directly on a regular basis is a way to build a stake in a particular company. However, it does have some drawbacks, including the need for scrupulous record keeping to avoid tax problems when you sell. In addition, if you aren't careful, you can end up with a bunch of small holdings and no overall investment plan. You need to keep your goals, your risk tolerance and the need for diversification in mind when you assemble an investment portfolio.

(Photo credit: Getty Images)

Are you ready for a rate cut?

The Federal Reserve Board is expected to cut the target rate for Federal Funds Tuesday for the first time since 2003, when the rate fell to 1%. (Here's a chart showing the rate history.) The rate has been 5.25% for a little more than a year. Everybody seems to expect at least a quarter of a point cut, with some hoping for half a point.

Here's what a rate cut is likely to mean for investors and savers:

*Expect a pullback in those juicy CD and money market yields. Rate cuts are always bad news for short-term income investors.

*Interest rates will decline on home equity credit lines, which are directly tied to short-term rates. That's good news if you already have a credit line or if you're in the market for one.

*Adjustable rate mortgages aren't quite so straightforward. Depending on the terms of your mortgage, you may be locked in at your current rate. If your mortgage is approaching reset, your new rate may be better than it would have been. However, it's still likely to be higher than the teaser rate that got you into the loan in the first place.

*Fixed mortgage rates are not directly tied to short-term rates. They're affected by what happens in the broader bond market. Those rates could go lower if the economy continues to slow. However, right now rates are low, so this is a good time to lock in a rate if you're thinking of refinancing.

Money question of the week: Have you ever attended an investment seminar

Have you ever attended an investment seminar? Tell us what it was like and how you fared if you bought an investment as a result. Include your first and last names and city so your comment can be considered for publication next Sunday.

(Photo credit: Getty Images)

Soneet Kapila wants HSBC to hand over documents

Soneet Kapila filed a couple of deposition notices today that indicate he's turned some attention to New York banks. He's asking HSBC and someone named Fred Volpacchio for all kinds of documents. Among other things, he's interseted in HSBC's credit rating system and how it monitored the money loaned to Pearlman.

If you've been considering a CD, you might want to act Monday

The Federal Reserve is widely expected to drop short-term interest rates when it meets Tuesday, which means banks are likely to follow the downward trend. Unfortunately for consumers, savings rates drop faster than borrowing rates. That means this probably is a good time to lock in a slightly longer-term rate. You might consider a CD ladder, buying CDs with varying maturities (one year, two year, three year).

You can check rates on sites such as bankrate.com  and Quicken.com. Certainly you shouldn't settle for a rate of less than 5%. You can go to FDIC.gov to check whether a bank has FDIC insurance.

Where can I find out about investment adviser designations?

Question: You mentioned that some of these investment seminars are put on by persons that use dubious professional designations that require no meaningful training, but suggest expertise and mislead investors. How do I as a senior know what these designations stand for? And which designations are meaningful and which are not?  What do the designations CSA and CLDP stand for? Can you email me a list that will answer some of my questions?

Answer: Here's the best source I have found for professional designations used by investment advisers. You have to pull down the drop-down box and hunt for the one you're looking for. I have never heard of CLDP and don't see it on the list. CSA is "certified senior advisor," which is one of the more dubious designations. Some credentials I consider of particular value are CFP, CFA, ChFC and PFS (for people who already are CPAs). For those who are interested, here is a column I wrote on the subject and here is some commentary on the proliferation of designations from author Errold Moody.

Will my sister's inheritance hurt my niece's chances for financial aid?

Question: My sister will soon be inheriting about $80,000 from our parents' estate. Her daughter is preparing paperwork for college. If my sister gets the check before all the paperwork is approved for her daughter, will it hamper her daughter from getting any financial aid? Is there anything my sister can do to avoid this?

Answer: It might or might not hurt her daughter's chances for financial aid. I recommend that your sister start her research with the expected family contribution calculator at the FinAid Web site. She can figure out currently how much colleges expect her family to pay toward her daughter's education each year. Then she can see how that number changes if her assets increase.

Financial aid for the year starting in September 2008 will be based on assets as of Jan. 1, 2008. Here are ways she could deploy her inheritance to minimize on countable assets: 1. Pay off her credit cards, car loans and other non-mortgage debt. 2. Pay down her mortgage. Home equity does not count in the federal financial aid formula, although some colleges may consider it. 3. Contribute to an IRA.

(Photo credit: Getty Images)

Here are other tips on maximizing financial aid eligibility.

Susan Antilla takes on Phillip Wasserman and "the # 1 retirement income planning firm in the nation"

A Tampa Bay insurance agent/financial executive is getting some national attention today from Bloomberg columnist Susan Antilla, but it isn't exactly complimentary. Phillip Wasserman, chief executive of Phillip Roy Financial Services in Clearwater, is described as a bully who is currently being investigated by both the Florida Department of Financial Services and the Florida Office of Financial Regulation. On its Web site the company says it speaks to 40,000 seniors a year through investment seminars. Wasserman is a former lawyer who resigned from the Florida Bar after being suspended. The St. Petersburg Times covered his dispute with the bar back in 1995 and 1996. I called his office and asked for his comment on her column, but he wasn't available.

Update: Wasserman's attorney, Anthony Battaglia, said the state has a "personal vendetta" against his client and Wasserman has filed formal complaints with the office of the inspector general regarding the conduct of the investigations. Wasserman called Antilla's column false, biased and unfair.

Another update: Wasserman called me to tell me more about his company. He said more than 800 representatives are now affiliated with him and that he's now a multi-millionaire and a major charitable donor.

Don't become an investment victim

Older investors are the prime target for most investment advisers, whether they're selling stocks, bonds and mutual funds, annuities or high-risk promissory notes. Fraud is the biggest concern, but an investment doesn't have to be a total scam to be bad for you. It might just be unsuitable for someone in your circumstances. It might be misrepresented in terms of the promised return or in failure to mention the risks and drawbacks - or both.

Learning more about investments and the sales pitches unscrupulous advisers use is your best defense. Here are some tips from the SEC regarding investment seminars. Here is yesterday's report on the problems regulators found in investment seminars aimed at seniors..

To check out an investment adviser or investment offering in Florida call 1-800-848-3792.

To get someone to give a presentation on investment fraud to your group contact Florida Seniors Against Investment Fraud (FSAIF).

To learn more about safe investing, here's a new Web site with helpful articles and advice for older investors and for military personnel. Here are some tips from the AARP and additional info from the SEC and the North American Securities Administrators.

Two places to get a referral to a fee-based financial adviser are the National Association of Personal Financial Advisors (888-333-6659) or the Institute of CPAs with personal financial specialist designations ((888) 999-9256).

(Photo credit: Getty Images)

The auction results are in

Here's a complete listing of the results of the most recent auction, including the names of the bidders, who bought what and how much was paid. Now you can find out who bought Lou Pearlman's Kleenex boxes and who got the Backstreet Boys flashlight wands.

The grand total, including buyers' premiums, was $309,936. Of that $56,352 was the auctioneer's fee and $5,872.63 was expenses, leaving a net of $247,711.37 for the bankruptcy estate.

There is no free lunch

"Free" lunches and dinners targeting seniors are a marketing staple for some investment advisers, but they can cost the unwary investor plenty. Securities regulators released a scathing report today of seminars as they are being conducted in Florida and six other states. St. Petersburg Times story. Here are some findings:

*100% of the seminars were sales presentations, even though many are advertised as "educational" or promise "nothing will be sold."

*50% featured exaggerated or misleading advertising claims, such as "how to receive a 13.3% return" and "how $100,000 can pay $1-million to your heirs."

*23% involved possibly unsuitable recommendations, such as risky investments to investors with conservative objectives.

*13% appeared to be fraudulent, including possible liquidation of accounts without customer knowledge and sales of apparently fictitious investments.

Next up for review: the use of dubious professional designations that mislead investors and pre-retirement seminars.

Update: I have received quite a few requests for names of the firms included in this examination and how they performed. The regulators would not release this information.

(Photo credit: Getty Images)

Are your finances ready for a hurricane?

We're fortunate that we haven't had a hurricane come our way yet this season, but we all know it could happen any time. Here are some tips to make sure you're ready:

1. Know what your homeowners insurance policy covers and what it doesn't. You need separate flood insurance to cover damage from flooding.

2. Have an emergency fund with part of the money in cash and part easily accessible through ATM withdrawals (money market or checking account). Some of it can be a little less accessible (savings bonds, short-term CDs).

3. Make a list of account numbers and telephone numbers for all your banking/investment/insurance accounts.

4. Make a list of names and phone numbers of people you might need to reach following a storm (relatives, doctors, friends.)

5. Make sure all your important papers are safe. One way to handle this is to scan copies and have the data on a portable computer drive or CD. Another approach is to store backups with a close friend or relative who lives elsewhere. If you have a business, it's important to safeguard those records too. I  don't recommend trying to carry boxes of records with you to a shelter if that can possibly be avoided. What you do need to take with you is identification (driver's license, passport), phone numbers (see 3. and 4), medical/drug information and, of course, money and your ATM card.    

Here are more tips on preparing for and dealing with a natural disaster.

(Photo credit: Associated Press)

Money Question of the Week: The proposed super homestead exemption

Do you support the proposed super homestead exemption that will be on the ballot in January? If it passes, would you give up your "save our homes" exemption in favor of the new super exemption? Please give your first and last names and city so your post can be considered for publication in the Times.

For background information, check out this Times report.

Should the state be protecting investors if that means sticking its nose into private companies' business?

We've had some arguments on the blog about politics. Before we get one started again, I want to state for the record that neither party has an exclusive on honesty or dishonesty.

So here goes: What is the  proper role of government in regulating/supervising businesses? It's a fact that many in state government preach a non-interference role for the state, i.e. the state should leave businesses alone and let them do their thing. That hands-off attitude is part of the reason Lou Pearlman could deflect investigations by sending a letter saying he wasn't doing anything wrong. A business is presumed to be operating legitimately and the state has to have lots of evidence to actually take any action.

A more activist role for the state in uncovering scams would contradict a hands-off philosophy. It also would require more taxes to pay investigators.

Where do you stand?

What happens to my FDIC insurance if my bank merges?

Question: I have a $100,000 CD with Crown Bank and another $100,000 CD with Fifth Third. I have since been informed that Fifth Third Bank has bought out Crown Bank. Will I still have FDIC coverage on my Crown CD even though it puts me over the limit?

Answer: Yes. Your Crown Bank CD will continue to be insured separately until it reaches maturity. That's how it works when two insured banks merge. For other types of accounts (such as checking, savings, money market), there is a six-month grace period during which separate FDIC insurance continues. You can even extend coverage if a CD comes due during the grace period and you renew it for the same term. For details, check page 29 of Your Insured Deposit.

If you have other questions about FDIC insurance, call 877-275-3342 toll-free.

Lou had a Caribbean cruise planned for November

Lou Pearlman was apparently planning to spend this Thanksgiving cruising the Caribbean. The bankruptcy judge approved  this very interesting motion  to get Cunard Lines to hand over $22,467 that Trans Continental Records and Pearlman had paid to book a 10-day Caribbean cruise over Thanksgiving for 10 people on the Queen Mary 2. The passengers who were supposed to be on board were four members of the Fallick Family (Thomas, Deborah, Thomas Jr. and Anthony), four members of the Gross family (Andrew, Ronni, Michele and Shana), Lou and Sean Van Der Wilt.   

The judge approved a whole stack of Soneet Kapila's motions today. Among them: the sale of Lou Pearlman's Windermere home for $7.1-million and a deal with Julian Benscher to take over several life insurance policies and share the proceeds with the bankruptcy estate should Lou die while they are in effect. The judge also gave the OK to to sell an Atlantic City condo and to abandon Lou's right to purchase Orlando Magic season tickets, which apparently attracted zero interest from prospective buyers. In addition, he granted the motion to allow the creditors' committee to keep confidential and privileged information secret from other creditors.

Some items that had been scheduled for hearing were continued to Oct. 4. Among them: A request to use Lou's membership reward points and frequent flyer miles for travel expenses related to the handling of the bankruptcy estate and a request from Aaron Carter to be freed from his management and recording contracts with Trans Continental.

Also of interest:

Church Street Station bouncing back.

Update:

Sean van der Wilt's attorney says Sean knew nothing about this cruise. He says Lou tried to get Sean to go on two prior cruises and Sean refused both offers.

What should you do if you are facing foreclosure?

If you can't afford your mortgage, don't wait until you are several months behind on your payments before trying to do something about it. Your first step should be to call your lender and ask to speak with someone in the "workout" or "loss mitigation" department about modifying your loan terms. Even if you previously were given the cold shoulder, I recommend trying again, because pressure is increasing on lenders to work out terms with homeowners. Step two is to speak with a housing counselor. (Or try here or here.)

If you have an adjustable rate mortgage, you may be eligible for the new FHASecure refinancing program.  Here are some other good tips from Bankrate.com. Whatever you do, don't fall for a "foreclosure rescue" scam.

(Photo credit: Getty Images)

Trans Continental bankruptcy claims update

For those who are keeping track, claims filed in the Trans Continental Airlines bankruptcy case now total $491,891,470. So far 1,322 claims have been filed, the vast majority of which appear to be from investors. Many people filed multiple claims because in addition to individual accounts, they had IRAs, trust accounts or joint accounts with various parties. Some had both EISA and stock accounts. Some claims also were filed by businesses. New claims continue to be filed and the filing deadline has been extended to Jan. 30.

It is difficult to determine the overall volume of claims against Lou Pearlman and his affiliated companies because many people filed duplicate claims in the various cases.

The $314-million number that has been used in the media came from Jerry McHale based on his analysis of the records he was able to find.

Calling Kristin Finger

The group of banks that has gotten permission to examine Robert Fischetti is now asking the judge to allow them to question Kristin Finger and to order her to produce documents. According to their court filing, when trustee Soneet Kapila tried to ask her questions, she invoked the 5th Amendment more than 25 times. They say this indicates "Ms. Finger knows information related to wrongdoing." They say they want to ask her about stock certificates and other documents related to securing the money Lou Pearlman borrowed from them.

Stay tuned.

Update: Tim Swanson at Portfolio.com blogs about Lou.

A look at Lou's life behind bars

Lou Pearlman is kept in "protective custody" at the Orange County Jail, which means he is separated from other inmates. He gets out of his cell for an hour or so each day to shower and enjoy the "day room," where there is a television and a telephone--but only when no other inmates are there. He has no access to the Internet. Weather permitting, he also gets an hour outdoors in an area where there is a basketball court, a couple of pull-up bars and benches. Typically, inmates out by themselves just walk around the basketball court in circles. He has no television in his cell and cannot see the day room television unless he is standing to look out the small window in his door. He can read materials from the jail library.

The only people Lou talks to face to face are the correctional officers and his lawyers. He also is allowed three 45-minute visits per week, conducted over a video visitation system, where each party sees the other on a television screen and talks on a telephone. Since he's been back in Orlando, Lou typically has had two or three visits per week (two people who come together count as one visit).

Lou's most frequent visitors are Tammie and Michael Hilton of Orlando. Others who have been to see him include Laura and Brittany Dunn, David Siegel and David Hedrick. John Ryan, Allan Siegel and Joseph Jacoboni scheduled visits, but they did not take place, according to jail records.

(Photo credit: booking photo)

Money question of the week: How are you managing your income in retirement?

Making your income last as long as you do is one of the greatest challenges facing retirees. There are inevitable tradeoffs--the more you spend now, the more likely you won't have enough later to maintain your lifestyle. But being too conservative exacts a price as well. In my column in today's Times, Gail Bruckner of Franklin Templeton gives her recommendations. This report from Fidelity talks about the potential role of annuities.

I want to know how you are managing your income in retirement. Do you have any tips to share with others? If so, I'd like to hear them.  Please give your first and last names and your city so we can consider your comments for publication in the St. Petersburg Times.

(Photo credit: Getty Images)

Housing bailout: What form should it take

I today's paper I wrote about President Bush's proposal to help homeowners whose adjustable rate mortgages are resetting at payments they cannot afford. This really puts the issue of a housing bailout on the table for national discussion. In my opinion the question is not whether there will be some kind of bailout but what form it should take. Bush's proposal is relatively modest and not likely to cost the government much. No doubt we soon will be seeing many more aggressive proposals. Some will be aimed at helping individual borrowers. Others will be aimed at improving the overall real estate market. What kind of help do you think the government should be  offering homeowners who might face foreclosure?