Barack Obama

Obama was born in Honolulu, Hawaii to Barack Obama, Sr. (born in Nyanza Province, Kenya) and Ann Dunham (born in Wichita, Kansas). Barack Hussein Obama (born August 4, 1961) is the junior United States Senator from Illinois and a member of the Democratic Party.

Obama grew up in culturally diverse surroundings. He spent most of his childhood in the majority-minority U.S. state of Hawaii and lived for four years in Indonesia. Obama delivered the keynote address at the 2004 Democratic National Convention while still an Illinois state legislator. Since announcing his candidacy in February 2007, Obama has emphasized ending the Iraq War and implementing universal health care as campaign themes.

As a member of the Democratic minority in the 109th Congress, Obama co-sponsored the enactment of conventional weapons control and transparency legislation, and made official trips to Eastern Europe, the Middle East, and Africa. Obama's parents separated when he was two years old and later divorced. His father went to Harvard University to pursue Ph.D. studies, then returned to Kenya, where he died in an auto accident when the younger Obama was twenty-one years old.

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Personal Finance Thursday, Jan. 22, 2009

The Economy's Guest Role

Among all the high profile guests and important issues that were front and center during Inauguration Day festivities, it was the economy, which had one of the starring roles.

Following are some of the many references President Barack Obama made about the economy in his sometimes somber inaugural address:

* "That we are in the midst of crisis is now well understood. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some but also our collective failure to make hard choices and prepare the nation for a new age."

* "Homes have been lost, jobs shed, businesses shuttered."

* "Our health care is too costly."

* "These are the indicators of crisis, subject to data and statistics. Less measurable, but no less profound, is a sapping of confidence across our land; a nagging fear that America's decline is inevitable, that the next generation must lower its sights."

* "Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America."

* "The state of our economy calls for action: bold and swift. And we will act not only to create new jobs but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together."

* "We will harness the sun and the winds and the soil to fuel our cars and run our factories."

* "The question we ask today is not whether our government is too big or too small, but whether it works, whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end."

Click here to read more from the transcript.

Swift Action

At least when it comes to his staff, Obama is already reigning in the budget. He signed an executive order to freeze the pay of senior White House staff who make more than $100,000.

"Families are tightening their belts, and so should Washington," Obama said.

As for the economy as a whole, Obama, however, is getting pushback from the swift action he wants to take to end the recession. For example, a Congressional Budget Office's analysis says infrastructure projects are ineffective at stimulating a lagging economy. Read more in "Stimulus Projects May Be Slow, CBO Says"(Jan. 21).

Fiscal Fashion

I hesitate to even go here but here I am.

I like Michelle Obama's fiscal fashion sense. She's not as frugal as I am, but certainly the First Lady seems to be watching what she spends on the family's clothes.

She's a fan of J. Crew, which if you're the First Lady is a relatively moderate clothing line. She wore a J. Crew outfit for her appearance on The Tonight Show and spent $148 for the off-the-rack dress she wore on ABC's "The View."

Although Michelle Obama (you know I love her first name) selected two designer outfits for Inauguration Day and night, by high fashion standards the dresses were "affordable."

Do you recall when Nancy Reagan was criticized for purchasing a $65,000 inaugural gown?

The best story of fiscal fashion sense is courtesy of former First Lady Rosalynn Carter. She wore the same gown to both her husband's presidential inauguration party and his Georgia gubernatorial inaugural ball. She took some flack for that. But I just love that kind of penny pinching. It's sensible.

Read more about our new First Lady's fashion sense, or as I like to call it "cents," in "All Hail the Leader of the Fashionable World" (Jan. 21).

Just In Time For Tax Season

Even the would-be tax man had some problems with his taxes.

Timothy F. Geithner, Obama's nominee for Treasury Secretary, which oversees the IRS, had to be extremely contrite in admitting he made $43,000 worth of tax mistakes.

As Dana Milbank writes in A Comedy of Tax Errors: "You would not be mistaken to think there was a bit of showbiz going on with Geithner's hearing yesterday. Senators plan to confirm him, but they don't want to encourage tax cheats. The solution: 3 1/2 hours of ritual flagellation."

Things failed to get better after Geithner revealed he had used Turbo Tax to help prepare his returns. I'm guessing the company won't be using Geithner as a customer reference.

Speaking of filing taxes, read my column from Sunday: Electronic filing is free this year.

Reader Questions: FICO Scores, Refinancing

Here are some leftover questions from my first online discussion of the year:

Q: A year ago I had never heard of a FICO Score and now it seems that we live and die by this 3-digit number. My score is in the 700s. A couple of weeks ago after paying off another credit card I noticed the company charged me an interest rate starting from the last day of the billing cycle to the day I paid the card off. I called to complain and in anger told them I was shredding the card and never using it again. Now I'm afraid they've canceled the card, which of course will ding my FICO. I have no intention of applying for any credit this year and I will be paying off my remaining $6,000 of debt this year (knock wood). Should I even worry about it?

A: First, you actually have three credit scores from the three major credit bureaus -- Equifax, Experian, TransUnion. Each company generates a credit score on you that represents what's in your credit files at each bureau.

Now as to your question, yes, you are worrying too much. The company probably didn't cancel the card without your officially letting them know with a telphone call or in writing. Just canceling the one card may bring your credit score down just a bit, especially if it's a card you've had for a while. One major factor in determining a credit score is the length of time you've had a credit account. But sounds like you're mad enough about how you were treated to take the hit if you indeed decide go through with your threat and cancel the card. Paying your bills on time and paying off that $6,000 could offset what dip you might get by canceling the one card.

Q: I need some advice about refinancing, since it seems like I've heard a lot conflicting things. We've been in our house about three years, put 10 percent down, have good credit, pay a little extra on our mortgage each month and have some equity built up. But it seems like now would be a good time to refinance, since we do have an ARM, although it doesn't reset for 7 more years. (Yes, we got a 10-year ARM). But I'm not sure we'll be in our house for more than 3-4 more years? Is it worth it? How do I figure that out?

A: You are thinking the right way. You have to weigh the cost of a refinancing with how long you plan to be in the house. If you plan to sell soon -- assuming you can in the current real estate market -- no use refinancing unless you break even on your savings well before you sell.

Try this refinance calculator at bankrate.com, which should help you determine whether it makes economic sense to refinance.

Q: I am a married, preggo mom of one, and our 401(k)s are currently just sitting in their respective accounts. We're afraid to put more money into them and have the values continue to dwindle. I also want to open 529s for our children. Lastly, I'd like to payoff my $6,000 Visa balance. However there is only but so much money to go around. Which direction should we look to go first? 401(k), 529 or Visa payoff? Currently, I'm paying $5 more than the $120 minimum every month. My interest rate is still 2.9 percent so I want to stay in good standing with them.

A: With a new baby on the way, I would concentrate for now on paying off the $6,000 in credit card debt. Even at just 2.9 percent that's still debt you should quickly get rid of. Second, I would not be afraid to continue contributing to your 401(k) plan, especially if your company is still matching any part of your contribution. Although the market is down, this is a good time to buy good stocks that are depressed. After you pay off the credit card debt and begin to save for your retirement again, then I would move to open up college savings plan for the one-year-old. After the baby's born, then you can open a 529 plan for him or her.

You are welcome to e-mail comments and questions to singletarym@washpost.com. Please include your name and hometown; your comments may be used in a future column or newsletter unless otherwise requested.

Charity Brown contributed to this e-letter.

-Michelle Singletary

Today's Color of Money
Tax Cuts Are Short-Term Fix for Long-Term Problem
The day before Barack Obama was sworn in as the 44th president, I was on a panel in which other participants spoke of Obama as if he were a superhero.

Sunday's Column
This Year, Electronic Filing Is Free for All
You know the saying that there's no free lunch? Well, the Internal Revenue Service is trying to prove you can get something free when filing your taxes.

Thursday, Jan. 29, 12 p.m. ET
Color of Money Book Club
Personal finance columnist Michelle Singletary will host a discussion with Mitchell Zuckoff, author of "Ponzi's Scheme: The True Story of a Financial Legend."

From Sunday Business
Livid Investors Launch A Volley of Lawsuits
Some angry investors -- both average Americans and giant pension funds -- are not taking their massive losses quietly. Holding portfolios that have imploded from a barrage of financial time bombs, they are turning to the courts for compensation.

Your Money Help Desk
How Will Pension Benefits Be Affected if Your Company Goes Bankrupt?
Gerald Fairbanks and Jean Rhian have pensions. That's the good news.

Jane Bryant Quinn
Exchange-Traded Funds Beat Active Managers
The exchange-traded-fund industry has the enemy in its sights: the active manager who runs a traditional equity mutual fund. When they first appeared in the marketplace, ETFs talked up such virtues as lower costs, tax advantages and ease of trading. Now, after the Dow Jones industrial average's w...