Cherry didn’t waste any time building his real estate empire. The North Carolina A&T State University graduate moved to the area in 2001 after securing a job at the U.S. Department of Agriculture in Washington, D.C., where he works as a marketing specialist. “I lived in an apartment for about a year and then purchased a house. One of my friends had just purchased a condo and I thought, ‘Why not do the same?’” says Cherry. In 2002, he paid $132,000 for a two-level town house in Upper Marlboro, Maryland, and offset the costs of owning the home by having roommates share the expenses of the $1,032 monthly mortgage payment, plus another $300 a month in food and utilities.

Although home values in Upper Marlboro have declined 17% over the past year according to real estate analysis Website Zillow.com, Cherry’s properties have increased in value since he bought them. Today, Cherry’s first property is worth $275,000––a gain of $143,000.

Cherry purchased his second home in 2004 for $178,000, and again split the monthly bills with friends who shared the home. By the time he purchased his third town house that same year for $165,000 and his fourth town house the following year for $210,000, he saw them strictly as investment properties.

Cherry now owns five town houses and one single-family house. Four of the homes fall under the Maryland Department of Housing and Community Development Section 8 program, which provides monthly payments to offset the difference between what low-income tenants can pay and the fair market rent of the unit.

Cherry now shares an apartment with a roommate so that he can save money and prepare for his September 2009 wedding. His fiancée, Arvenita Washington, is a 33-year-old anthropologist and entrepreneur. The couple recently had a town house built for $410,000 in Upper Marlboro.

Although Cherry has accumulated assets, he is still at financial risk. He receives approximately $11,000 each month in total rental income and must pay an estimated $9,800 for all of his mortgages every month.
In short, he is “asset rich” but cash poor, a vulnerable position in this economy.

The Advice

David Hinson, president of Wealth Management Network in New York City, offers some guidance to help Cherry bolster his assets and cash savings. Also weighing in are Ivory J. Johnson, director of financial planning at Scarborough Capital Management in Annapolis, Maryland, and Carla J. Cargle, founder of Genesis One Wealth Builders in Sugar Land, Texas.

Nix the new home. Although the new house is already built, Hinson strongly advises that Cherry and his fiancée not go through with purchasing it, but instead take the penalty. As a second option he suggests they rent out the home and live in the property Washington currently owns. They would be in a better position if they rented the home to a tenant and used the additional income to pay down outstanding debt and increase savings. “By opting to put down only 3.5% and borrow the rest to build the new home, Cherry has nearly doubled his cost structure at the very time he desperately needs to preserve cash,” Hinson says.

Boost reserves. Cherry’s cash reserve is $7,200. This is dangerous because he is overleveraged on his mortgage obligations, and cash flow problems are just one tenant vacancy away. Once married, Cherry and his fiancée should make an effort to live on one salary for three years and save the remaining salary, advises Hinson.

Protect real estate investments. A primary concern in real estate investing is vulnerability. Tenants, guests, and even trespassers may sue. Should such persons prevail, they could attach properties, bank accounts, and personal possessions to satisfy the court’s judgment, says Johnson. He recommends Cherry create a limited liability company to safeguard his real estate properties. “He needs to preserve his wealth and protect it from the claim of creditors.”

Establish an estate plan. Johnson also recommends that Cherry set up a living trust to hold and manage his properties. In the event of his death, a trust agreement will protect Cherry’s assets from probate, shelter his assets from creditors, and pass on assets to heirs with limited hassle. Johnson notes that $500,000 in work insurance and $1 million in term life insurance is sufficient for the time being to cover Cherry’s properties, but it won’t be when children enter the picture. He suggests replacing and adding more coverage now while the cost is relatively low because of Cherry’s age.

Manage tax refund and adjust withholdings. Cherry should use his anticipated $13,000 tax refund to pad his emergency savings account. In addition, he should adjust withholdings so that his tax payments equal his tax liability. Of the total refund amount, about $9,000 is from income; the remaining sum is from property tax rebates.

Temporarily reduce retirement contributions. Cherry should temporarily reduce his 15% contribution to his retirement plan to about 8%, suggests Cargle. With his employer providing a 5% match, he is in a position to put away 20% of his income toward retirement annually. Assuming an annual rate of return at 10%, he will accumulate roughly $3 million by the age of 60, says Cargle.

To receive an application for the financial fitness contest, send an e-mail to financialfitness@blackenterprise.

This story originally appeared in the June 2009 issue of Black Enterprise magazine.

The Carrés are hardly unique. Through most of this decade, millions of Americans were drawn into the housing market. They came not simply looking to be homeowners, but with visions of becoming landlords and market speculators who could buy homes at low prices and flip them for profit. In those years, U.S. economic activity was powered by home building, home buying, the financing of real estate purchases, and consumers’ own desires to fill new homes with the furnishings of middle-class life.

The Carrés were no different. In 2002, they purchased their primary residence, a four-bedroom, two-bath, $220,000 house, in Lawrence, Massachusetts. In 2006, they bought a $292,000, three-bedroom, two-bath rental home in Cape Coral, Florida. Then there’s the two acres of land in Coral Spring, Texas, they bought for $57,000, and the 35 acres in Marianna, Florida, purchased for $60,000 the same year.

The housing market’s collapse has stripped wealth from millions of American households. Since the height of the boom in 2006, home values across the U.S. have fallen dramatically. By the end of 2008, more than 8.3 million homeowners nationwide owed more on their mortgages than their property was worth, according to a survey by mortgage market analysis firm First American CoreLogic.

The Carrés were no frenzied real estate speculators. There was logic behind each of their purchases. They bought land in Texas thinking the warm climate would make it an ideal place for Sherley’s New York-based parents to retire. The Florida rental property was supposed to pay for itself, but given the economy and the resulting glut of houses on the market, they haven’t been able to make a sale. They also haven’t been able to get much in rent. The most they’ve been able to charge is $1,000, but the monthly mortgage payment is $2,000. And the other plot in Florida? “I was supposed to flip that land quickly but it didn’t happen because of the market,” says Edenswear, 35.

As if declining assets weren’t enough, the Carrés, who have three children, are enduring another hallmark of the current economy: job loss. Last summer, Edenswear lost his job in sales, making $30,000 a year. That blow has made living on Sherley’s annual salary of $105,000 (which she earns as an assistant principal at a charter school) more difficult. In addition, the couple’s 2-year-old daughter Ilyana, recently started daycare, which costs $215 per week. The couple’s two other children are 10 and 8 years old. “The economy has had a major effect on our plans,” says Sherley, 36.

The couple, married for 11 years, owes about $600,000 on the two homes, for which they pay approximately $3,000 in monthly mortgage payments. As for the two plots of land, they own them outright. Sherley’s undergraduate and graduate school loans, however, total $50,000 and deferment ends later this year, when they’ll have to begin chipping away at that bill.

On the plus side, Sherley has $74,000 in her 401(k) at work. They each have $2,500 in individual stocks, a total of $7,000 in a mutual fund, and $4,000 in their savings and checking accounts. “It’s not enough,” says Sherley, who is becoming increasingly anxious. Says Edenswear, “If we could just sell the land or house in Florida, the profits would do a lot to change our situation.” Meanwhile, Sherley and Edenswear want to begin saving, not only for emergencies, but for retirement and their children’s college education. Sherley and Edenswear have learned the hard lesson that sometimes things don’t go according to plan. The reality check has inspired them to think twice about purchases and cut back as much as they can.

Despite everything, they’re optimistic. “We’re proud of the homes and the land we’ve purchased,” says Sherley. And they haven’t given up on real estate, as they hope their investments will eventually help them retire early.

The Advice

What is most encouraging about the Carrés’ situation is the optimism that the couple holds for the future. They are clearly thinking in the right way to prosper in the long term (i.e., plan for retirement, save for a rainy day, thinking twice about purchases large and small.) However, remedying their current situation will require them to rationalize some of their personal goals with the hard realities of the market. Never forget that for us to get to the long term we must always first go through the short term. So let’s start there.

The Carrés’ greatest short-term need is to increase cash flow. Because of the loss of Edenswear’s position, the family has experienced a 25% reduction in its gross income. Assuming a 25% marginal tax rate at the federal level, and a 5.3% marginal tax rate in Massachusetts, the after-tax value of Edenswear’s salary was approximately $24,400.  Assuming he is currently still unemployed, an immediate way to recoup 46% of his after-tax salary, or approximately $11,200 per year, is to remove their youngest child from daycare until he finds permanent employment. Hiring a babysitter on the days when Edenswear has to leave the home for an interview will be much less expensive than their current situation.

A second measure to improve not just short-term, but long-term cash flow is to refinance the mortgage on the family’s primary residence. Without specific information on the credit situation of the Carré family, I am assuming this is still possible, especially given Sherley’s employment in a high-paying job. With respect to their primary residence, the Carrés are suffering from a situation similar to some 20% of all American homeowners—negative equity. The Carrés are hurt to a much greater degree, however.

At current market prices, their primary residence has a loan-to-value ratio of 149%.  Lenders prefer this ratio not to exceed 95%, and the lower the better. Still, there’s hope. Part of the Obama administration’s Housing Affordability and Stability Plan is directly aimed at homeowners like the Carrés who are not currently in default but are likely to default on their mortgages due to their high level of negative equity.

There are many ways the Carrés could have their mortgage modified. The simplest method would be an interest rate reduction. Assume that they were able to achieve a modification that reduced their interest rate by 2% annually. This would save them approximately $400 per month, or $4,800 a year. If they were able to negotiate a modification that extends their mortgage’s term from 30 to 40 years, in addition to a reduction of their interest rate by 2%, this would save them approximately $600 per month, or $7,200 a year. Finally, if they were able to have their mortgage amount reduced to 105% of current value (difficult, but not impossible), maintain the term at 30 years, and receive a 2% interest rate reduction, they could save approximately $900 per month, or $10,800 per year. Let’s assume they achieved the middle option, extending the term with a rate reduction, and temporarily removed their youngest child from daycare until Edenswear found permanent employment, on a pretax basis, they could effectively replace 85%, or $20,800, of Edenswear’s lost after-tax salary.

n My final piece of advice will likely be the hardest to accept. The land that the Carrés bought to retire their parents on in Texas—sell it. Don’t get me wrong, loyalty to one’s parents is a laudable value. However, economic responsibility is also a laudable goal. By the Carrés’ own admission, they did not purchase the property with an eye to making it an income-producing piece of land. They currently receive no cash flow from it, and are unlikely in the near future to be able to build a home on it to house their parents. While it’s true that they are currently underwater on the property by approximately $46,000, they may be able to recoup some of this loss through capital gains reductions on their taxes. This could reduce their taxes by as much as $750 in the year of the loss (capital losses are limited to $3,000 against ordinary income), not to mention the approximately $11,000 in increased liquidity that they would receive from the proceeds of the sale.

Additionally, they could carry forward the remaining losses to future years for further tax savings. Collectively, all of these recommended cash flow improvements in the first year would increase their cash flow to $32,550 (or 133% of Edenswear’s after-tax salary).  Note that this solution does not have to leave the Carrés’ parents out in the cold. Instead of moving them to Texas, give them the rental property in Florida.

If they just replace the current amount of rent received, $1,000, then there is no loss. If they receive the property free and clear, then the foregone monthly rent will be a minor portion of the salary Edenswear receives from a new job.

This story originally appeared in the May 2009 issue of Black Enterprise magazine.

Some 93% of Lorillard’s revenues come from Newports. The company has the highest profit margins in the U.S. cigarette industry. I asked around, and friends who are smokers and ex-smokers say Newports are so popular among African Americans that the word “Newport” is sometimes used among black smokers as a substitute for the word “cigarette”–the way some people say, “Hand me a Kleenex,” when they mean “tissue”. In any case, Newport is the second-best-selling brand in the U.S. behind Phillip Morris’s Marlboro.

Even if Lorillard doesn’t get acquired, Barron’s claims Lorillard looks like a good investment. “Its shares trade at 11 times projected 2009 profit of $5.50 a share and provide a yield of 6%,” according to the financial weekly. “Lorillard pays out 70% to 75% of its profit in dividends. The company, which was spun off by Loews last year, has a great balance sheet, with more than $1 billion of cash at year end and no debt.” Barron’s concludes that Lorillard should be trading about 30% higher than it’s recent price of around $62.

As an investment, even with all its potential upside, I wouldn’t touch Lorillard. I can’t say that I apply strict socially conscious guidelines to all my investments. But, consider this: According to a 2008 report on cigarette marketing to blacks from the Campaign for Tobacco Free Kids, “nearly 80%of all smokers start before the age of 18 and, not surprisingly, the vast majority of kids smoke the three most heavily advertised brands. One of these heavily advertised brands, Newport, is the cigarette brand leader among African-American youths in the United States. Eight out of every ten black, youth smokers smoke Newport cigarettes.”

While blacks don’t smoke in larger proportions than the general U.S. population, they do suffer disproportionately from health complications brought on by smoking. In a case like this, where a company relies on a single product that potentially wreaks such harm on African American health, I’m not buying shares.  I’m not sure I would invest in any cigarette company, for that matter. Would you?

Where do you draw the line? Do you leave your social or political beliefs out of investment decisions?

In the session, Accountability: How to Avoid the Blame Game at the Women of Power Summit, a number of scenarios and questions were candidly thrown on the table regarding the topic in an effort to challenge women to think of accountability as an obligation to yourself and those around you.

“A sense of personal responsibility,” says session moderator Marilyn Johnson about the top thing she hopes attendees took away from the session. “This is so they are holding themselves to a much higher standard that when they walked in this room.”

As vice president of market development for IBM, Johnson (who has been attending the summit since its inception) believes we as women of color also owe it to ourselves to maintain a “sisterhood accountability;” however she realizes that’s not often easy to construct. “We’re so busy and we’re so tired of arm wrestling ourselves with all the powers that be that it’s sometimes not easy to think about others,” says Johnson. “You’re so busy wrestling that you can’t free up a hand to reach out and grab somebody else and bring them along.” But of course, it’s imperative that we do so. She adds, “We’ve got to stop and situate ourselves in a much bigger scenario and that’s evident right now. It’s not only bigger than us but it starts with us.”

Such relationships segmented directly into the importance of mentorship. Lisa Pickrum, executive vice president and chief operating office for the RLJ Corp. was one of the panelists and sees mentorship as a two-way street just like accountability. “Go out get a mentor and really set some goals about what it is they want out of that relationship and what they can bring to the relationship,” says Pickrum.

She adds that among the charges is to utilize the relationship to uncover how you can be more accountable as well as hold other people accountable without pointing figures.

How best to handle being thrown “under the bus” in a professional manner:
o Address the impropriety. Is it a recurring problem?
o Decipher the situation. Consider their intent. Remember that there’s a time to act and a time not to, know the difference.
o Be sure there’s nothing else. Be sure not hit by the same problem just as you’re trying to get up and dust yourself off.
o Let them know. Identify the person and have an honest professional conversation with them.
o No tears. Men of any color don’t know how to handle this within the workplace.
o Results. Did you learn anything while “lying” there?

Recommended reading:
o The Speed of Trust by Steven M. R. Covey
o Cowboy Ethics: What Wall Street Can Learn From the Code of the West by James P. Owen

The Women of Power Summit runs Feb. 11-14 at the Ritz-Carlton, Grande Lakes in Orlando, Florida.

Tennille M. Robinson is the small business editor at Black Enterprise magazine.

Alabama
Poll hours:  7AM – 7PM
# of electoral votes: 9
2004 election results: Voted for George W. Bush
2000 election results:  Voted for George W. Bush
Senate seats open: None
House seats open: 2 Democrat; 5 Republican
Swing state: No
Polling place search: http://myinfo.alabamavotes.gov
State elections Website: www.alabamavotes.gov
Provisional ballot status: https://myinfo.alabamavotes.gov
Red State

Alaska
Poll hours: 7AM – 8PM
# of electoral votes: 3
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 1 Republican
Swing state: No
Red State

Arizona
Poll hours: 6AM – 7PM
# of electoral votes: 10
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 0
House seats open:  4 Democrat; 4 Republican
Swing state: No
In person, no-excuse early voting begins 33 days before the election
Red State

Arkansas
Poll hours: 7:30AM – 7:30PM
# of electoral votes: 6
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Democrat
House seats open: 3 Democrat; 1 Republican
Swing state: No
Red state

California
Poll hours: 7AM – 8PM
# of electoral votes: 55
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 0
House seats open: 34 Democrat; 19 Republican
Swing state: No
Blue state

Colorado
Poll hours: 7AM – 7PM
# of electoral Votes: 9
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 4 Democrat; 3 Republican
Swing state: Yes. In the 2004 election, George W. Bush defeated John Kerry by only 4.7% in popular votes. A Sept. 24, CNN/Time poll showed the electorate split 51% supporting Sen. Barack Obama and 47% support Sen. John McCain
How Obama can win: Use his appeal to mobilize young people to vote. Colorado’s abundant, well-educated, under-30 set support him but has a poor track record of showing up at the polls. Also, connect with Latino voters, whose turnout rates are typically below that of other groups. In Colorado, Latinos comprise 20% of voters, a considerably larger minority voting bloc than African Americans.
Leaning blue

Connecticut
Poll hours: 6AM – 8PM
# of electoral votes: 7:
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 0
House seats open: 4 Democrat; 1 Republican
Swing state: No
Blue state

Delaware
Poll hours: 7AM – 8PM
# of electoral votes: 3
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Democrat
House seats open: 1 Republican
Swing state: No
Voter registration look-up: http://pollingplace.delaware.gov/
Blue state

Washington D.C.
Poll hours: 7AM – 8PM
# of electoral votes: 3
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 0
House seats open: 1 Democrat
Swing state: no
Voter registration look-up: http://www.dcboee.org/voter_info/reg_status/
Blue state

Florida
Poll hours: 7AM – 7PM
# of electoral votes: 27
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 0
House seats open: 9 Democrat 16 Republican
Swing state: Yes. The state’s growing population of Cubans, retirees, and service workers has resulted in a much more diversified demographic. The 2000 election was filled with a month of legal wrangling that resulted in Bush winning the electoral votes. In 2004, Bush defeated John Kerry by 5 percentage points.
How Obama can win: Grab a major share of the large numbers of independent voters living along the heavily populated I-4 Corridor running east to west through Orlando. Visit large urban counties in central and southern Florida to win over receptive residents as well as turn out African American voters. Offer superior solutions to address Florida’s deeply troubled economy – especially the depressed real estate sector.
Toss up

Georgia
Poll hours: 7AM- 7PM
# of electoral votes: 15
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 6 Democrat; 7 Republican
Swing state: No. Has sided with Southern Democrats when on the presidential ticket, voting for Jimmy Carter in 1976 and 1980, and Bill Clinton in 1992.
How Obama can win: Get more whites to vote Democrat while maximizing black participation. Also target young, college-educated whites who are indifferent to candidate’s race. Focus on economic problems and voter dissatisfaction during Bush’s presidency. Sell the planks of the Democratic Party platform as more conservative than most whites perceived them. Identify and mobilize voters likely to vote for him.
Red state

Hawaii
Poll hours: 7AM – 6PM
# of electoral votes: 4
2004 election results: Voted for John Kerry
2000 election results: Voted for Al. Gore
Senate seats open:  0
House seats open: 2 Democrat
Swing state: No
Blue state

Idaho
Poll hours: 8AM – 8PM
# of electoral votes: 4
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 2 Republican
Swing state: No. Historically voted Republican
Red state

Illinois
Poll hours: 6AM – 7PM
# of electoral votes: 21
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Democrat
House seats open: 11 Democrat; 8 Republican
Swing state: No
Provisional ballot status: http://www.elections.il.gov/VotingInformation/ProvBallotSearch.aspx Blue state

Indiana
Poll hours: 6AM – 6PM
# of electoral votes: 11
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 0
House seats open: 5 Democrat; 4 Republican
Swing state: Yes, but it’s historically voted Republican in presidential elections
Voter registration lookup: http://www.indianavoters.com/PublicSite/Public/FT1/PublicLookupMain.aspx?Link=Registration
How Obama can win: Capture this red state by registering new voters, especially young people and African Americans—two low turnout groups that polls suggest support Obama. Since unemployment in the state is the highest it’s been since 1992, connect with working-class voters and concentrate on the economy and well-paying jobs.
Leaning red state

Iowa
Poll hours: 7AM – 9PM
# of electoral Votes: 7
2004 election results: Voted for George W. Bush
2000 election results: Voted for Al Gore
Senate seats open: 1 Democrat
House seats open: 5 Democrat; 4 Republican
Swing state: Yes. The closeness of the general election vote, as well as the importance of its caucuses, which kick off the nominating process every election cycle, give the electorate great influence in electing the president.
How Obama can win: Work closely with Hillary Clinton supporters and gain their backing. If he cannot get the Hillraisers’ support, his chances of winning here are slim because Iowa can swing both ways.
Leaning blue state

Kansas
Poll hours: 6AM – 8PM
# of electoral votes: 6
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 2 Democrat; 2 Republican
Swing state: No
Voter registration look-up: https://myvoteinfo.voteks.org/
Red state

Kentucky
Polls hours: 6AM – 6PM
# of electoral votes: 8
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 2 Democrat 4 Republican
Swing state: No
Red state

Louisiana
Poll hours: 6AM – 8PM
# of electoral votes: 9
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open:  1 Democrat
House seats open: 3 Democrat; 4 Republican
Swing state: No. Louisiana lost significant population as a result of Hurricane Katrina in 2005. If the exodus is permanent, the state could lose an electoral vote in 2012, depending on the 2010 census.
Sample ballot: http://www400.sos.louisiana.gov/cgibin/?rqstyp=BLTINQ&rqsdta=start
Red State

Maine
Poll hours: Hours vary, but polls open no earlier than 6AM and close no later than 8PM
# of electoral votes: 4
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Republican
House seats open: 2 Democrat
Swing state: No. Maine is one of two states that does not use the “winner takes all” rule. The winner of the popular votes gets two electoral votes, while one is assigned to the winner of each of Maine’s two congressional districts.

Maryland
Poll hours: 7AM – 8PM
# of electoral votes: 10
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 0
House seats open: 6 Democrat 2 Republican
Swing state: No
Blue state

Massachusetts
Poll hours: 7AM – 8PM
# of electoral votes: 12
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Democrat
House seats open: 10 Democrat
Swing state: No
Blue state

Michigan
Poll hours: 7AM – 8PM
# of electoral votes: 17
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Republican
House seats open: 6 Democrat; 9 Republican
Swing state: Yes. A Sept. 26 Detroit Free Press poll showed 11% of the electorate were undecided.
How Obama can win: Register new voters, expanding the electorate. Focus on Michigan’s No. 1 issue: an economy that has lost 128,000 motor vehicle and automotive parts jobs in the past 12 months. Galvanize predominantly male, unionized workers by promising green-color jobs and reviving the auto industry with tech-driven, energy-efficient cars produced in the USA. Employ Hillary Clinton to campaign harder and more frequently to counter the Republicans’ strategic use of vice presidential candidate Sarah Palin.
Sample ballot: https://services2.sos.state.mi.us/mivote/votersearch.aspx
Leaning blue state

Minnesota
Poll hours: 7AM – 8PM
# of electoral votes: 10
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Republican
House seats open: 5 Democrat; 3 Republican
Swing state: No, but during the 2000 and 2004 elections the democratic presidential nominee only won by 2.5% and 3.5% of the popular vote, respectively.
Leaning blue state

Mississippi
Poll hours: 7AM – 7PM
# of electoral votes: 6
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 2 Republican
House seats open: 3 Democrat; 1 Republican
Swing state: No
Red state

Missouri
Poll hours: 6AM – 7PM
# of electoral votes: 11
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 0
House seats open: 4 Democrat; 5 Republican
Swing state: Yes. An Oct. 1, CNN/Time poll showed the electorate split, 49% for Obama and 48% for McCain.
How Obama can win: Follow the strategy Democrat Claire Catskill devised to win her Senate seat in 2006: vigorously campaign in overwhelmingly white, rural GOP areas, especially outstate Missouri, to pick up much-needed votes, even if he doesn’t win a majority of them. Do well in St. Louis County, and attract more voters in St. Charles County, a St. Louis suburb that tends to swing Republican but is still viable. Keep hammering the Republicans on economic issues.
Leaning red state

Montana
Poll hours: Hours vary but polls open no earlier than 7AM and close no later than 8PM
# of electoral votes: 3
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Democrat
House seats open: 1 Republican
Swing state: No
How Obama can win: Drive voter turnout in Montana’s more populated, booming West. Maximize this newcomer-attracting region’s registration of Democrats and Independents. Focus on education, cherished by both East and West. Bypass the economic message–the state is prospering. Downplay land, gun, and social issues. Be himself—and forget the cowboy hat.
Leaning red state

Nebraska
Poll hours: 7AM (MST) – 7PM (MST)
8AM (CST) – 8PM (CST)
# of electoral votes: 5
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 3 Republican
Swing state: No
Red state

Nevada
Poll Hours: 7AM – 7PM
# of electoral votes: 5
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 0
House seats open: 1 Democrat; 2 Republican
Swing state: Yes, an influx in population has made Nevada a swing state. In 2004, George W. Bush defeated John Kerry by 3% of the popular vote.
How Obama can win: Keep the base energized now that registered Democrats outnumber Republicans. Play a solid ground game to boost the usual weak turnout among Nevada’s main concentration of Democrats in Clark Country (Las Vegas), and rally supporters in northern Nevada. Visit new voters and keep them ready for November polls. Focus on the economy, especially take-home pay and Nevada’s battered housing market.
Toss up between blue and red

New Hampshire
Poll hours: Hours vary. Visit http://www.sos.nh.gov/polling.htm for details.
# of electoral votes: 4
2004 election results: Voted for John Kerry
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 1 Democrat; 2 Republican
Swing state: Yes. New Hampshire was the only state to vote Democrat in the 2004 election and Republican in the 2000 election.
How Obama can win: Pursue undeclared voters; they’re 43% of the electorate. Capture these essentially independent thinkers, who gravitate toward new-paradigm candidates. Keep core Democrats on board with detailed policy proposals. Point out measureable rises in the state’s low unemployment. Offer solutions for the economy, healthcare, environments, and the Iraq War.
Toss up between red and blue

New Jersey
Poll hours: 6AM – 8PM
# of electoral votes: 15
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Democrat
House seats open: 7 Democrat 6 Republican
Swing state: No
Blue state

New Mexico
Poll hours: 7AM – 7PM
# of electoral votes: 5
2004 election results: Voted for George W. Bush
2000 election results: Voted for Al Gore
Senate seats open:  1 Republican
House seats open: 2 Democrat Republican
Swing state: Yes. The state has voted Democrat since the 1992 election bit voted Republican in the 2004 election. George W. Bush narrowly defeated John Kerry by .8% of the popular vote.
How Obama can win: Reach people with substance as well as symbolism. Deliver a clear, moderate, pro-business message appealing to western-style conservative Democrats. Emphasize his background, characters, and values. Campaign vigorously for the Hispanic vote that supported Hillary Clinton, particularly since one-fourth of New Mexican voters are Hispanic.
Leaning Blue state

New York
Poll hours: 6AM – 9PM
# of electoral votes: 31
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 0
House seats open: 23 Democrat; 6 Republican
Swing state: No
Blue state

North Carolina
Poll hours: 6:30AM – 7:30PM
# of electoral votes: 15
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 7 Democrat 6 Republican
Swing state: Yes
How Obama can win: Pursue the rare chance for a competitive presidential race here by using campaign resources to register and turn out new voters. Mobilize the black electorate in a way that’s not happened here before. Build on the recent success here of the state’s Democratic legislature and governor to secure a difficult (but not impossible) win.
Provisional ballot status: www.app.sboe.state.nc.us/provisionalvoting/?s=86
Absentee ballot status: www.sboe.state.nc.us/VoterLookup.aspx?Feature=voterinfo
Leaning red state

North Dakota
Poll hours: 7AM – 7PM
# of electoral votes: 3
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 0
House seats open: 1 Democrat
Swing state: No
How Obama can win: Wedge into the usual Republican presidential vote with support for the state’s all-Democrat congressional delegation. Blast high fuel and food prices. Pledge getting the job done in Iraq and brining troops back home to a state proud of its high rates of military service. Keep under-30 voters excited and make sure they get to the polls.
Red state

Ohio
Poll hours: 6:30AM- 7:30PM
# of electoral votes: 20
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 0
House seats open: 1 Democrat
Swing state: Yes. In 2004 George W. Bush garnered a two percent victory for the state’s popular vote.
How Obama can win: As Hillary Clinton did in the primary, convince voters that he understands long-standing economic problems and can solve then in this pivotal state. Recognize women voters’ high turnout rate, and stimulate greater turnout among Democrats in Cleveland. Make sure eligible voters get to vote and that ballots are properly counted. Address the war in Iraq.
Online Feedback: www2.sos.state.oh.us/pls/voter/f?p=104:1:93001109639196
Toss up

Oklahoma
Poll hours: 7AM – 7PM
# of electoral votes: 7
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 1 Democrat; 4 Republican
Swing state: No
Red state

*Oregon
Poll hours: 7AM – 8PM
# of electoral votes: 7
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Republican
House seats open: 4 Democrat; 1 Republican
Swing state: No
Blue state

Pennsylvania
Poll hours: 7AM- 8PM
# of electoral votes: 21
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open:  0
House seats open: 11 Democrat; 8 Republican
Swing state: Yes. In 2004 John Kerry beat our George W. Bush by a 2.5% margin
How Obama can win: Bring Hillary Clinton to rally her supporters. Convince financially stressed Pennsylvanians that a McCain presidency would be George W. Bush’s third term. Use vice presidential candidate, and Pennsylvania native, Joe Biden as an asset. Explain how he’d fix the economy. Make sure college students have absentee ballots or have registered to vote near campus.
Voter registration lookup: https://www.pavoterservices.state.pa.us/Pages/VoterRegistrationStatus.aspx
Provisional ballot status: https://www.pavoterservices.state.pa.us/Pages/ProvisionalBallotSearch.aspx
Leaning blue state

Rhode Island
Poll hours: Hours vary but polls open no earlier than 7AM and close no later than 9PM
# of electoral votes: 4
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 1 Democrat
House seats open: 2 Democrat
Swing state: no
Voter registration lookup: http://www.sec.state.ri.us/vic/
Sample ballot: http://www.sec.state.ri.us/vic/
Provisional ballot status: http://www.sec.state.ri.us/vic/
Blue state

South Carolina
Poll hours: 7AM – 7PM
# of electoral votes: 8
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Democrat
House seats open: 2 Democrat; 4 Republican
Swing state: no
Absentee ballot status: http://webprod.cio.sc.gov/SCSECVoterWeb/voterInformationSearch.do
Provisional ballot status: http://webprod.cio.sc.gov/SCSECVoterWeb/voterInformationSearch.do
Red state

South Dakota
Poll hours: 7AM – 7PM
# of electoral votes: 3
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Democrat
House seats open: 1 Democrat
Swing state: no
Voter registration look-up: http://apps.sd.gov/applications/st25cers/
Red state

Tennessee
Poll hours: Hours vary, but polls open no earlier than 7AM and close no later than 7PM
# of electoral votes: 11
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 5 Democrat; 4 Republican
Swing state: no
Red state

Texas
Poll hours: 7AM – 7PM
# of electoral votes: 34
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 13 Democrat; 19 Republican
Swing state: No
Red state

Utah
Poll hours: 7AM – 8PM
# of electoral votes: 5
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open:  0
House seats open: 1 Democrat; 2 Republican
Swing state: No
Red state

Vermont
Poll hours: 5AM – 7PM
# of electoral votes: 3
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open:  0
House seats open: 1 Democrat
Swing state: No

Virginia
Poll hours: 6AM – 7PM
# of electoral votes: 13
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Republican
House seats open: 3 Democrat; 8 Republican
Swing state: Yes
How Obama can win: Visit northern Virginia’s ethnically diverse suburbs, full of Democratic-leaning professional. Advertise running mate Joe Biden’s national security expertise to attract defense and think-tank workers. Get Gov. Tim Kaine to stump for him. Appeal to suburban women with abortion rights and equal pay issues. Register and turn out black voters in the Richmond and Tidewater areas.
Toss up between red and blue

Washington
Poll hours: 7AM – 8PM
# of electoral votes: 11
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open: 0
House seats open: 5 Democrat; 4 Republican
Swing state: No
Blue state

West Virginia
Poll hours: 6:30AM – 7:30PM
# of electoral votes: 5
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 1 Democrat
House seats open: 2 Democrat; 1 Republican
Swing state: Yes. Despite voting for the Republican presidential candidate in 2000 and 2004, West Virginia is primarily Democratic at local and state levels.
Sample ballot: www.wvvotes.com/voters/sample-ballots.php
Online inquiries: www.wvsos.com/service/helpline.htm
Red state

Wisconsin
Poll hours: 7AM – 8PM
# of electoral votes: 10
2004 election results: Voted for John Kerry
2000 election results: Voted for Al Gore
Senate seats open:  0
House seats open: 5 Democrat; 3 Republican
Swing state: No
How Obama can win: Get mainstream voters comfortable with him. Deliver an understandable memorable economic message addressing jobs, high gas prices, and the economic crisis facing the nation. Reframe the core issue of the campaign to the economic survival of the middle class and the competitive position of the United State in the global economy. Propose job-creation opportunities for low-income people. Address healthcare and education. Mobilize young people to promote his campaign and show up at the polls.
Leaning Blue state

Wyoming
Poll hours: 7AM – 7PM
# of electoral votes: 3
2004 election results: Voted for George W. Bush
2000 election results: Voted for George W. Bush
Senate seats open: 2 Republican
House seats open: 1 Republican
Swing state: No

*Counties can keep polls open until 9PM
*Oregon votes entirely by mail. Poll hours reflect the hours of the county election offices on Election Day.
*All poll hours for the respective states are local times.

FICO FAST FACTS

• You have multiple types of credit, such as student loans, credit cards, and a mortgage.
• You have several accounts in good standing.

Your credit score might decrease if:

• The only credit you have is an authorized user account.
• You are near the limit on several credit cards.

If you’re working to improve your credit, listen up. Fair Isaac Corp., creators of the FICO credit score, announced a new scoring model expected to take effect this spring. The model, named FICO ’08, provides a more precise way for lenders to determine a borrower’s creditworthiness. One major change is that FICO scores will now exclude authorized user accounts, also known as “piggyback credit,” from the scoring formula, says Craig Watts, public relations manager at Fair Isaac. This is partly a response to the rise in credit-repair companies charging consumers fees as high as $2,000 to be added to the account of someone with good credit who is in turn paid by the company for the use of their account.

Emily Davidson , an expert at Credit.com, a credit information Website, says teen borrowers will be hit the hardest. “Many young people have authorized user accounts because their parents wanted to help them establish credit. But once the new model is in place, authorized users without a credit history of their own will not have a credit score,” says Davidson.

In cases where an authorized account is the first type of account a borrower obtained, not including it can shorten the credit history, resulting in a lower score. Length of credit history accounts for 15% of one’s total score and payment history accounts for 35%. According to Fair Isaac, 30% of the population has an authorized user account on their credit report and between 60 million and 75 million borrowers will be affected by the change. As an alternative, Davidson suggests becoming a joint cardholder, where each person is equally responsible for the payments and outstanding balance.

Another change is that more points will be given to borrowers with several credit types, such as student loans, credit cards, and a mortgage, because it demonstrates they can manage payments on various types of loans. Furthermore, delinquencies will be handled differently. “Under the current version of the FICO score, if a person has one delinquent account, they’ll get lumped together with people who have more than one delinquent account. But the new model separates people from those who have multiple delinquencies,” says Watts. One thing that won’t change is the scoring range. It will remain 300 to 850.