Noob Question  Guides/Anchors are not "on" the object I create

I know this is probably a setting I am not getting the right way... but here is my problem.

When I create an object... the path/guide/anchor is not "ON" the object I create... it "floats" outside of that object... INSTEAD of on the object like everyone else's that I see in tutorials etc.

Take a look

all of the objects I create seem to have this... so when I try to move the two parts of the flag together... they have a buffer area between them... and I can't move them together to overlap.

Thanks for any help...

I am usiing Illustrator CS6 by the way....