The 5 Biggest Personal Finance Milestones From My Life

March 2, 2015, 10:00 pm

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Filed under: Personal Finance, Financial Education

I want to talk about the five biggest moments in my personal finance journey. I was never destitute, but growing up with a single mom, we didn't have anything resembling financial security. When it was time for me to go off on my own, I promptly did a financial faceplant and amassed a bunch of debts that are frankly embarrassing to think about today. It has been more than a decade since I started turning things around, and half that time since I really started to gain ground. Lots of people can replicate in these milestones in their own lives.

1. I hit rock bottom. When I look at pictures of myself at 21 and 22, I want to slap my stupid face. That kid spent and partied his way to five figures of debt with very little money coming in. I hope you enjoy that sports car, because you certainly can't afford it! I didn't really know better yet, but I quickly learned when I couldn't afford to make payments and I found out that I would be paying off my debts for more than a decade at the rate I was going. It took awhile for the reality of this to sink in. I will be poor -- this poor -- for many years to come. So I changed things up. I sold my car. I worked 70-80 hours a week at two jobs for almost two full years. I stopped wasting money and time, and I threw every extra dollar at my debts until ...
2. I paid off my debt. In less than two years, no less! This was a huge eye opener for me. Not only had I killed off debt that was set to haunt me for a big chunk of the rest of my life, I had done it quickly. I've got to credit my mom for inspiration on this one. I had seen her turn her life around by buying a business a couple of years before. Seeing that another life was possible gave me the energy to work stupid long hours until my head was above water. It was a great feeling, but it didn't stop there.
3. I started saving. For over a year, I was putting upwards of $1,000 into debt balances, every single month. Now I had no more debt. I kept working at the same rate for about half a year, still saving that much every month. But I started saving it in several key areas: 1) a six-month emergency fund, 2) a fund for the down payment of a house, 3) monthly contributions into my fresh new individual retirement account, 4) a fund for travel and 5) a fund to help start my business. Once the emergency fund was filled up, I could contribute even more to these other areas. At some point, I burned out laboring like a workaholic (not my natural mode of existence), so I quit my other job and took a breather. I can't tell you how much my mindset at this time differed from that of two years before. I felt like I could breathe. I didn't feel anxious. I felt good.
4. I started my business. This takes us to about 2010, when I started getting the Modest Money blog off the ground. MM didn't become my full time gig for a couple more years, but I had learned the basics of web marketing through one of my jobs, and I knew I could do this thing myself. I spent thousands of hours learning how to really do this thing. I went to conferences, learned coding and talked to anybody who knew something I didn't about blogging. I also started a couple of side web ventures, a couple of which are still going strong today. Today, my work life is pretty fluid. Some days I work for other people, many days just for myself. I have a lot of residual income streaming in from many sources. If one business goes belly up, I know there are different revenue streams that will survive. The same goes for my investments.
5. I bought my house. I don't know if I just missed the memo on home ownership when I was growing up, but it has turned out to be an awesome way to build wealth. My home has appreciated about 7 percent every year I've owned it. Because my taxes and interest payments are written off on my taxes, that's a 28 percent return on my investment since I bought my house. Add to this the steadily building wealth I've gained through equity, and my home might be the single best investment I have made in life thus far. It makes me want to buy more real estate.

The Hero in Your Future

I don't know if you saw Matthew McConaughey's crazy-eyed Oscar acceptance speech from last year, but he said something I'll always remember. He said that his hero in life was himself 10 years from now. That might sound a little conceited if you don't frame it right. Basically, he said he wanted to always be pushing himself to be better, to become someone that his past self could respect and admire. I want to do the same. I think my little debt-ridden self from a decade-plus ago would like the guy I've become. I want the same to go for the guy I am 10 years from now. Here are a couple bonus milestones I'd like to see in my future.

1. More houses. I'd like to own a few houses. I've seen the way my current place has appreciated, and I'd like to rent to others. Growing up in a string of rental places, I know how vulnerable being a renter can be. I remember good landlords and bad ones. If I'm going to invest in properties, I want to provide quality housing to people without pushing for the highest dollar tenants. Just a personal project, but it's something close to my heart. The way I look at it, it's a way I can grow my money while providing a service that people actually need.
2. Investments for my children. I don't have kids, and my girlfriend and I have no specific plans. But I want them someday. Before I start reproducing, I want to have investments in place for them to at least be able to go to college, to get a level of education somewhat better than the one I had.

These future investments will only be possible because I made the changes I mentioned in the first milestone. Without changing my life and paying off my debt, I never would have been able to achieve any level of wealth. Many people never get past that first step. I want to encourage you to make the change. Those two years or so were the hardest step on this journey. I guess that's why more people don't get past that stage. If I can do it, you can. Feel free to reach out to me or check out my writing for tips on how. But it's not rocket science. You can get there just like I did.

 

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How to File Taxes for Your Deceased Relative

March 2, 2015, 10:00 pm

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Filed under: Taxes, Estate Planning, Estate Tax, Tax Laws

By Stephanie Faris

After a family death, the last thing a grieving person wants to deal with is paperwork. But someone has to file a final tax return.

When someone dies, an estate is created that collects all of the deceased's debts and assets. Generally a person is named the executor of that estate, either through the late person's will or by the laws in that state. If there is a surviving spouse, that person will take precedence, but if there's no spouse, the deceased's children, parents or siblings will shoulder the responsibility, in that order.

While the executor of the estate is ultimately responsible for ensuring the return is filed, that person doesn't have to do the work alone. The return will need to be submitted by the April 15 tax-filing deadline to avoid penalties. The return will be filed using the same method a living person's tax return is filed, with two major exceptions. The word "deceased" should be placed in parentheses after the decedent's name and the date of the taxpayer's death should be written at the top of the tax return.

Special Tax Forms

If the deceased taxpayer is entitled to a tax refund, the executor will need to file Form 1310, which is a request for a refund due to a deceased taxpayer. Complete this form even if you're a surviving spouse filing jointly with your late husband or wife. Having the supporting documentation will help if the Internal Revenue Service has questions about your return.

When the tax return is signed, it should be signed by the appointed personal representative for the deceased taxpayer. If no personal representative has been appointed, the spouse can sign the return and note next to the signature, "Filing as surviving spouse." In the absence of either of those, the person who is in charge of the deceased's property should sign the return and note that he is signing it as the individual's personal representative.

When claiming the taxpayer's income, claim everything from the beginning of the year to the date of death. It's important to distinguish whether the taxpayer uses the cash or accrual accounting method, since that will determine whether the income is considered income in respect of a decedent. When classified as such, the money passes through the estate as income, rather than through the deceased's tax filing.

When a taxpayer dies with investments and pensions, much of that income is taxed to the person who inherits those funds. One exception is the Roth individual retirement account and Roth 401(k), which are tax-free at the point of distribution as long as the investment was made five years prior to the person's death. If less than five years has transpired, the surviving family members can have the inherited IRA rolled over into a Roth IRA until the five years is up. If a deceased's assets exceed $5.34 million, Form 706 may be required to figure the estate tax imposed by the IRS.

Deductions and Filing Status

Unless the deceased was a meticulous record keeper, it may be challenging to collect all of the tax deductions he or she incurred from the beginning of the year until the date of death. Deductions must stop at the point of the person's death, including monthly recurring expenses.

However, any medical bills that were incurred prior to death can be claimed as long as they're paid within a year of the person's death. If a family chooses not to itemize on a return, the IRS will allow the full standard deduction to be claimed, regardless of when the person's death fell within the tax year.

The spouse of a decedent can also file as a qualifying widow or widower for up to two years following the death of a significant other. In doing this, the spouse will be able to enjoy the benefits of filing jointly for as long as possible.

 

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Stop Making These 10 Dumb but Common Money Moves

March 2, 2015, 10:00 pm

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Filed under: Personal Finance, Budgeting, How to Save Money, Saving

By Maryalene LaPonsie

You're no dummy, right? Then you need to stop making dumb money moves. If you're not sure what those are, Money Talks News finance expert Stacy Johnson is here to tell you. I can count six of these dumb money moves as ones I've made at some point in my life. How about you?

1. Carrying a Credit Card Balance When You Have Money in the Bank

Actually, we could have put the period after the word "balance" in the sentence above. Credit cards are powerful tools and can give you some pretty nifty rewards, but it's dumb, dumb, dumb to carry a balance. It's even dumber to carry a balance when you have money in the bank.

Your savings account is making what, 0.1 percent interest? And your credit card interest rate is probably at least 10 to 20 percent, right? Mathematically, it makes no sense to leave that money languishing in your savings account. Of course, you don't want to leave yourself without any emergency cushion, but you should think twice before joining the households that are carrying a credit card balance despite having plenty of cash to pay it off.

2. Going Into Debt for Items That Lose Value

A related dumb money move is going into debt for items that lose value. Buying a house with a mortgage can be a smart financial move because you can almost always count on it appreciating (i.e. gaining value) over time. But think about your credit card debt. What did you buy with that money? Do you still have it? If you do, could you sell it for what you paid?

I'll go out on a limb and say the answers to those last two questions are maybe "no" and "definitely not." Rather than go into debt and pay outlandish interest for items that are quickly tossed or become worthless, save your pennies and pay cash instead. If you're not sure how, you may be making dumb money move No. 10 below.

3. Buying New When You Could Buy Used

Staying on the spending theme for a moment, let's talk about buying new stuff all the time. It's a dumb money move that can cost you oodles of money. Certainly, there are some items we don't recommend you buy used. But for almost everything else, from clothes to cars, you can usually find used versions that are nearly as good as the new ones but cost a fraction of the price. You can read this list of the 14 things you should always buy used.

4. Spending Money on Stuff That You Almost Never Use

Even worse than buying something new when you could buy used is buying something new that you'll only use once or twice a year.

Power tools for an impulse weekend project instantly come to my mind, but people make all sorts of purchases for items they will almost never need again. From tables for your teen's high school open house to a boat for your vacation, you may be better off renting than buying. Not only can it be cheaper, but you aren't stuck maintaining and storing these items for years on end.

Another option may be to share purchases of seldom-used items. For example, see if your neighbors want to pitch in for a lawn mower and garden tools that you can keep in a communal shed for all to share.

5. Failing to Cancel Trial Subscriptions or Return Unwanted Stuff

I'll raise my hand and admit this is a dumb money move I continue to make. My most recent gaffe came late last year when I was part of a wedding party. I couldn't make it to a local store to buy some clothes I needed, and I ended up purchasing online. Knowing time was short, I bought two sizes with the intention of returning whatever didn't fit. That sounded good, in theory. In practice, the unneeded item is still sitting in my breezeway, and the return window has closed.

In addition to failing to return unneeded items, another mistake is failing to cancel trial subscriptions or recurring expenses for services you never use. When you sign up for a free trial, make a note on your calendar so you cancel before being charged. Also, keep your eyes peeled for recurring charges on your monthly statements and cancel any service you haven't used in the last month.

6. Missing Out on Your 401(k) Match

While a lot of dumb money moves are related to spending, some are about saving. Notably, many people make the mistake of forgoing their employer's 401(k) match. This is free money your boss puts in your retirement account on your behalf. The only catch is you also have to be putting money in the account.

If you're not sure if your company offers a 401(k) match, call the human resources department. Matches can vary by company and are usually capped at a percentage of your income. For example, an employer may match your contribution to a 401(k) account dollar-for-dollar, up to 3 percent of your income. Or they may match 50 cents on the dollar, up to 6 percent of your income. No matter the exact formula, you don't want to pass up the chance for free money, do you?

7. Signing Contracts You Don't Understand

I seem to hear about this mistake most often when it comes to mortgages. People agree to adjustable-rate mortgages and then seem surprised when the interest rate goes up. Or they're shocked to learn they haven't made a dent on the principal balance after paying on an interest-only loan for a year.

Of course, this dumb money move isn't limited to mortgages. People also buy life insurance, investments and lease vehicles without fully realizing what they're getting themselves into. The simple fact is, signing contracts you don't understand can be an expensive mistake. The Maryland Attorney General website offers some tips to help you make smart decisions.

8. Forgetting to Set Up a Safety Net

It's dumb to go through life without a safety net. You need a Plan B to spring into action in the event you lose your job, your car engine dies or your child breaks their arm. And one of the best Plan Bs you can have is money in the bank. If you're having trouble getting out of debt and saving cash, here are 14 suggestions to help you save $1,000 by summer.

The other safety net you need is proper insurance coverage. Here are my recommendations for the insurance and financial products you should consider for your personal safety net. Before you buy them though, check out dumb money move No. 9.

9. Paying Extra for Low Deductibles

Assuming you have some money in the bank, raising the deductibles on your insurance policies is a great way to save some cash. For example, the Insurance Information Institute reports increasing your auto insurance deductible from $200 to $500 could save you anywhere from 15-30 percent off your bill. Select a $1,000 deductible, and you could save 40 percent.

However, this strategy only works well if you have money in the bank to cover the deductible when the time comes. In addition, those of you with chronic or serious health concerns may want to steer clear of medical insurance plans with super high deductibles. In your situation, it may be better to pay a higher monthly premium than try to meet a deductible that could, for bronze plans on the government exchange, run as high as $13,200 for a family.

10. Living Without a Money Plan

The final dumb money move far too many people make is living without a financial plan. It's also the dumb money move that can often be directly or indirectly linked to almost all nine mistakes listed above.

You may think writing down financial goals and creating a budget is boring, difficult or depressing. Not to mince words, but I think it's dumb to use those excuses to avoid trying. If you're not sure where to start, we've got plenty of resources for you here. As a first step, read this article on how to make a budget you can live with.

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a pdf of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait?

 

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Auto Sales Perk Up in February Despite Snowy Weather

March 3, 2015, 12:50 am

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Filed under: Automotive Industry, Consumer Goods, Manufacturing, Economy, This Built America

By TOM KRISHER and DEE-ANN DURBIN

DETROIT -- Freezing temperatures and drifts of snow took a small bite out of U.S. auto sales in February, but most automakers still reported gains thanks to the strong economy.

Toyota (TM) led major automakers with a 13.3 percent gain over last February. Others came in below analysts' predictions. Chrysler (FCAU), General Motors (GM), Honda (HMC) and Nissan all saw gains of 6 percent or less.

Ford's (F) U.S. sales were down 1.9 percent, as dealers lacked the inventory to meet demand for the new F-150 pickup truck. Volkswagen's sales fell 5.2 percent.

All automakers report U.S. sales Tuesday. Analysts had predicted an 8 percent increase over a year ago to nearly 1.3 million vehicles, based on the strength of the U.S. economy.

Falling unemployment, low interest rates and new versions of big sellers like the Jeep Cherokee -- which saw sales jump 19 percent in February -- drove buyers to dealerships in many cities. The forecasting firm LMC Automotive pushed up its 2015 forecast by 40,000 vehicles, based on strong demand. The firm is expecting U.S. sales to top 17 million this year for the first time since 2001.

Still, LMC said it became apparent as the month went along that bad weather in the mid-South and on the East Coast was hurting sales.

Colonial Volkswagen of Medford, Massachusetts, had almost no customers for a two-week period at the start of the month. Ken Cataldo, the dealership's general manager, said he and his staff spent much of the time clearing snow from cars and moving them around the lot just north of Boston in order to plow snow away.

"It was the worst two weeks of my life in the car business," said Cataldo, who's been selling cars for 29 years.

As temperatures warmed at the end of the month, some customers came out of hibernation. Colonial ended up selling 75 cars, still short of its goal of 115 and the normal monthly sales of 130, Cataldo said. He's hoping to make up for the lost sales this month.

"We've already put February in the rearview mirror," Cataldo said.

Dockworkers' Strike Impact

There were also obstacles to overcome on the other side of the country. LMC said a dispute that halted some shipments of car parts into West Coast shipyards may also have impacted sales. The impasse was settled on Feb. 21.

In California, gas prices soared to more than $3.30 a gallon after an explosion at a refinery; nationally, they rose around 30 cents a gallon. But the national average of $2.44 a gallon is still $1 less than a year ago, according to AAA.

Consumers and businesses still shopped for trucks and SUVs despite the higher gas prices. GM said sales of the Chevrolet Silverado pickup jumped 24 percent last month to 45,395. And small SUVs continue to be one of the hottest segments in the market. Toyota sold nearly 22,000 RAV4 SUVs, up 33 percent from a year ago and a February record for the vehicle.

Toyota, with total sales of 180,467, bucked the industry with double-digit sales increases for the Camry, Corolla and Avalon sedans as well as SUVs and trucks. Prius hybrid sales were down 6.6, the victim of lower gas prices.

GM's sales rose 4.2 percent to 231,378. It got a boost from big SUVs like the Cadillac Escalade, which saw sales nearly double over last February.

Ford's Sales Slump

Ford's sales declined nearly 2 percent to 180,383. Every Ford and Lincoln brand car except for the Mustang was down, and key SUVs like the Escape and Edge also saw sales declines. Ford blamed lower sales to commercial and rental fleets for some of the losses. Pickup sales are also slow as the company ramps up production of the new F-150. Ford says it won't have normal levels of truck inventory on dealer lots until the end of June.

Chrysler sold 163,586 vehicles for its best February in eight years. Sales of the Jeep brand rose 21 percent increase as Americans continued their shift away from cars toward small and large SUVs.

Honda's sales were up 5 percent to 105,466. Sales of its Fit subcompact jumped 81 percent after a recent redesign, but sales of other cars like the Accord and Civic fell.

Nissan's sales rose 2.7 percent to 118,436, a February record for the Japanese automaker. Nissan was led by the Rogue small SUV with a 24.6 percent sales increase.

Volkswagen's sales fell 5.2 percent to 25,710. Big sales gains for the new Golf couldn't overcome lower sales elsewhere in the German automaker's lineup.

 

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10 Things to Never Buy at Target

March 3, 2015, 1:30 am

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Filed under: Shopping, Target, How to Save Money, Deals, Stores

Target (TGT) is a great place to shop for many a thing, but there are some things you shouldn't buy there. Amazon (AMZN), Walmart (WMT), Best Buy (BBY), Costco (COST), Dollar Tree (DLTR) and Staples (SPLS) beat the big-box retailer on prices in quite a few categories, saving you possibly thousands of dollars a year.

That said, some approaches -- sales, the Target markdown schedule, store coupons, a Target Red card and the Target Cartwheel mobile app, a favorite app of consumer guru Andrea Woroch -- occasionally makes Target the best buy. Some other notes:

• Target.com recently initiated the lowest minimum threshold of $25 for free shipping, bettering Amazon's $35 and Walmart's $50 minimums.
• Shopping at Costco requires a yearly membership, starting at $55.
• You can now use name-brand coupons at Dollar Tree.

1. Infant Formula

Costco had the best prices on formula, hands down, with its store-brand Kirkland infant formula, beating both store-brand up & up from Target and Walmart's Parent's Choice for a 40-ounce canister at $17.99 compared to up & up's $23.49 and Walmart's 33.2-ounce canister for $19.98. Costco's formula was significantly cheaper than the Target price for name-brand Similac 22-ounce canister, $24.99 on sale.

Diapers were a pretty good deal at Target, with up & up beating out Amazon, Costco and Walmart for a size 5 box of 144 diapers at $28.99. With additional possible stacking of Target Red card and Cartwheel savings and the possibility to subscribe for delivery with free shipping over $25, Target could save you hundreds a year keeping your baby dry.

2. Bedding

Walmart had Target beat for bedding sets. An eight-piece king bedding set at Walmart for $49.96 may cost five bucks more but includes five extra accessories, such as a bedskirt and more pillow shams. For basic pillows, Walmart beat Target at $3.58, compared to $4.04 at Target.

Consider quality, though, as you spend eight hours daily between the sheets. "You can find superior quality with similar prices or even sometimes cheaper prices at department stores like Macy's (M)," Woroch said. "Especially if you search sale items and then apply a coupon for a deeper discount. Grab a printable coupon or online coupon from CouponSherpa.com. Even Homegoods has a good selection of cheap sheets. The only problem is that there is a limited selection."

3. Groceries

In the grocery aisles, Target had higher prices on some staples, such as dairy, produce and canned goods. Dairy was a shocker, with a gallon of store-brand Market Pantry Target milk $4.49, compared to $2.79 at Costco and $2.98 at Walmart. Smaller chain stores like Aldi and other grocery outlets have milk running at these lower prices. Over a year, at two gallons a week, one could save almost $200 at Costco.

Butter and margarine were cheaper at both Walmart and Costco. Bananas -- America's most popular fresh fruit -- ran 28 cents each at Target. An average banana weighing four ounces equates to $1 a pound at Target, compared to 57 cents a pound at Walmart, 46.3 cents a pound at Costco and possibly less at your local supermarket. Cheerios at first looked like a good deal at Target at $3.99 for 21 ounces, but at Costco a two-pack of 20-ounce Cheerios (40 ounces total) costs $5.49.

If you are a K-cup coffee fanatic, Costco is your destination, with 100 count K-cups for $36.99, as opposed to an 18-count package for $10.99 at Target and $10.98 at Walmart.

For organic food, especially for produce, go to Trader Joe's, said Meghan Heffernan, a representative for savings.com.

3. Holiday Decorations, Wrap and Cards

"Gift wrap, gift bags and tissue paper is cheapest at the dollar store or even discount retailers like Marshalls," Woroch says. "Greeting cards you can get two-for-$1 at the dollar store." Party items are also a better buy at dollar stores.

4. Kitchen Items

If you are starting a household or need to replace pots and pans, the Farberware New Traditions 14-piece set, guaranteed for life, was $20 and change cheaper at Walmart than the Target price of $99.99. A Kitchen Aid basic stand mixer in black cost $20 less at Walmart than Target, $229 to $249.99. A starter pots and pans set is usually available at Ikea for under $40, and a basic cooking set was spotted for $26.99 on a daily deal at Staples. Target did beat out Walmart by five bucks for a basic six-quart Crockpot manual classic at $24.99. But Walmart beat Target for a Keurig 2.0 Model K300 coffeemaker by $10 with a price of $109.

5. Electronics and Accessories

Target had one of the highest prices for 55-inch Samsung TVs at $1099.99, with the same model $769.99 at Costco and $998 at Walmart -- but a similar size TV 1080p LED model from Panasonic was only $680 from BestBuy.com, with free shipping, as featured on www.bradsdeals.com. Target did have a Westinghouse 55-inch 1080p LED HDTV in store for $599.99. Although TVs are sometimes a good buy at Target, Woroch said, "the best prices for HDMI cables, remote controls and antennas are at Amazon."

Costco also had a cheaper Apple (AAPL) iPod 32GB touch at $234.49 to Target's $249.00, but Target was able to offer an iPad Air 2 for $499 -- $80 cheaper than at Costco, and a Sony PS4 Destiny was cheaper at Target than at Walmart. For smartphone and tablet accessories like cases, chargers and protective screens eBay (EBAY) has the cheapest selection, Woroch said.

6. Printer Paper

A 500-sheet ream of printer paper at Walmart ran $3.72, compared to the Target up & up brand at $5.39. Occasionally, Staples runs instant rebate deals where the paper is almost free if you're willing to log on and enter the details of your purchase receipt.

7. Batteries

Dollar stores are the cheapest places to get batteries, hands down. An eight-pack of 16 AA Sunbeam batteries costs a dollar at Dollar Tree -- beating an Energizer Max 20-battery pack for $13.79 at Target or a Costco store-brand 48-battery pack for $12.99.

8. Athletic Gear and Underwear

Unless you need Nike or similarly expensive brand athletic shoes, sneakers were cheapest at Walmart, with Danskin (famous for dancewear) athletic shoes for children and adults running from as low as $3 on clearance to an average $11. These were much cheaper than Costco's Fila shoes at $19.99 or Target's Champion shoes, running $19.99 to $34.99.

Woroch doesn't like Target for fitness gear like yoga mats and weights, saying, "I found better deals on similar quality goods at discount retailers like Homegoods and Ross."

Walmart's $7.96 for multipacks of women's panties beat Target's $9.59 for Hanes brand. No Boundaries bras at $6.96 at Walmart were $6 cheaper than the Target Hanes wire-free sports bras at $12.99 -- and the Walmart bra came with a pair of matching boyshorts. Men's underwear at Target ($12.99 for a seven-pack) and Walmart were similarly priced, and both were a better deal than Costco's Kirkland four-pack for the same price.

9. Books and Movies

Amazon is the champion, and it regularly offers daily deals in both categories, especially in its e-book versions for bestsellers. For instance, New York Times bestseller "The Girl on the Train" ran $18.36 at Target.com and $16.17 on Amazon with a Kindle version at $8.99. The paperback version of "American Sniper" was $8.99 at Target.com and $6.07 on Amazon, with the Kindle version $4. Amazon also offers the easy choice of buying used copies, and there are plenty of book sites on the web. Movies can also be checked on price comparison sites simply by typing in the title. Of course, almost any book available at Target can be read for free from your local library -- if you are willing to wait.

10. Toiletries and Prescriptions

Walmart beat Target and Costco on its store-brand version of Head & Shoulders green apple 23.7-ounce shampoo for $3.48, compared to $4.29 at Target and $7.49 at Costco for the 40-ounce Head & Shoulders shampoo. Dollar Tree had them all beat for name-brand toothbrushes, full-size deodorants, shampoos and toothpastes for $1. Unless you need higher-priced cosmetics and grooming items, you can do better at dollar stores with basic grooming items.

Consumer Reports gave Target high marks for its store-brand sunscreen and its store-brand, generic, over-the-counter drugs. Woroch would direct you to Costco for your prescriptions.

 

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Popeyes CEO Comes Out Swinging on Rivals' Recipes

March 3, 2015, 2:30 am

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Filed under: Careers, Food & Beverage, Restaurants, CEOs, This Built America

By CANDICE CHOI

NEW YORK -- Popeyes CEO Cheryl Bachelder isn't shy about sharing her opinion of competitors' chicken.

The 58-year-old executive's frankness isn't surprising considering Popeyes turnaround during her tenure represents a vindication of sorts. In her upcoming book, Bachelder recounts a low point in her career when she was serving as president of KFC and her boss suggested it was time for her to go.

"In other words, I got fired. Few things are as clarifying as losing your job. My confidence was shaken," she writes.

After leaving KFC (YUM) in 2003, she says she decided to spend her "retirement" serving on boards, including for the parent company of Popeyes. She got another shot at proving herself in late 2007, when the struggling chain tapped her as its next chief executive.

Since then, Popeyes Louisiana Kitchen (PLKI) has been playing up its regional identity and remodeling stores to be more inviting. Sales at established U.S. restaurants have climbed in each of the past six years and the domestic store count has expanded to 1,870, up from about 1,580 in 2007.

Here's what Bachelder had to say about Popeyes and the industry in an interview with The Associated Press.

Q: How does Popeyes chicken differ from Chick-fil-A and KFC?

A: The first thing you notice about Popeyes is the marinade. It's a real reddish, orange color. It sticks to the chicken, you see it all through the chicken, and that's where the flavor is. And our chicken is dipped in an egg-and-flour batter before it's fried. That gives it a really crisp texture. There's more of (the batter) and it's crisper.

I'm not knocking [Chick-fil-A] -- they're great competitors. But their product is very plain vanilla. Who else did you say? KFC? Oh, them (laughs).

Their Original Recipe is deep fried in a pressure cooker, so it's got a soft coating on it, and today's customer likes a crisper coating. And the seasoning is basically just kind of a pepper flavor, so it doesn't really have the complex flavors we have.

(Representatives for Chick-fil-A and KFC declined to respond.)

Q: What was the state of Popeyes when you became CEO?

A: The company was 35 years old, so it was well-established and had a strong footprint. But it was tired, not relevant and not talking to its customers like it should.

We did a huge turnaround that launched in the fall of 2008. As you may remember, the fall of 2008 was an unusual time to invest heavily in your business, so we were either crazy or brave. I choose to think we were brave.

Our market share is up 50 percent from that date.

Q: It used to be Popeyes Chicken & Biscuits. Why did you change the name to Popeyes Louisiana Kitchen?

A: The brand is from Louisiana, so it's true. Our founder created these recipes out of the Cajun and creole heritage of that state. It's the most interesting American food there is, and we're an international brand so it exports really well too.

It's a much stronger identity.

Q: How has Popeyes food changed with the revamp?

A: We've done incredible innovation from our Louisiana roots. We did something early on called Wicked Chicken that plays on what you might find on Bourbon Street -- a little mystery, a little intrigue.

We've done a lot of boneless, portable foods that better suits your lifestyle today. We also bought seafood front and center. We're a Gulf Coast company, so we should have seafood credibility.

Q: You've said Popeyes wouldn't serve salads, but have you considered other ways to offer lighter options?

A: We like to offer delicious food that our guests want, so we're constantly testing innovative food items, fried and not fried. The challenge is, if you eat a lot of non-fried chicken at home -- you have the dry, broiled piece of chicken -- when you go out you want the more indulgent chicken.

Q: Are there disagreements with franchisees over what to add to the menu?

A: Every quarter, we have free-flowing ideation sessions. We come with 80 ideas or more ideas. Then there's very quantitative testing.

A franchisee is an emotional, passionate entrepreneur, and we want their ideas. We just don't want to do their goofy stuff. That's one of the benefits of doing it in a hard-research and quantitative way.

For example, franchisees really like alligator bites. That is something that's in Louisiana restaurants, so the franchisees say, let's do alligator bites. And we say, well, let's put it through the process.

And now, if we try to put one of our favorites out there, they're like, no, no, no, no -- there's a metric, we can't do that.

It governs both of us.

Q: How will the fast-food industry be different in five years?

A: I think the whole sector is moving toward quality food, which is something we've always stood for. In the remodeling of our system, we've really brought to life the heritage and quality of the food. We have spice jars up by the front counter with actual spices in them, actual red beans in them, actual rice, to celebrate the ingredients.

 

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Best Buy Is Rising From the Dead

March 3, 2015, 3:41 am

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Filed under: Company News, Earnings, Retail, Best Buy, Consumer Electronics

Best Buy (BBY) stepped up Tuesday with better-than-expected financial results. The last major consumer electronics superstore chain standing saw its revenue climb 1.3 percent to $14.21 billion if you exclude the problematic appliance stores in China that it finally unloaded last month. Wall Street pros were expecting a slight decline.

The news gets even better on the bottom line as Best Buy's cost-cutting initiatives continue to bear fruit. The retailer's adjusted profit from continuing operations clocked in at $1.48 a share, up sharply from the $1.20 a share that it posted a year earlier and the $1.35 a share that analysts were targeting.

The bottom-line beat is welcome but not entirely unexpected. Best Buy has been posting better-than-expected adjusted quarterly earnings for more than a year. Its Renew Blue initiatives designed to trim overhead while still sprucing up sales are paying off. With its Five Star chain in China out of the picture, it's also not a shock to see sales starting to inch higher. Best Buy had announced back in January that domestic stores clocked in with an encouraging 2.6 percent uptick in sales during the nine-week holiday shopping period.

This is still a much brighter snapshot than it seemed Best Buy was painting earlier this year when it was lamenting external pressures -- including weak industry demand, deflationary pricing, and shoppers wising up to the point where they are bypassing the high-margin extended warranties that the chain offers -- for holding back its ultimate profitability.

Making It Rain

Best Buy is sharing the wealth. It will be returning more money to its shareholders in a couple of different ways. For starters, it will resume its existing share buyback initiatives, aiming to repurchase another $1 billion worth of stock over the next three years.

The chain is also boosting its quarterly payouts by 21 percent to 23 cents a share, pushing its yield back up to north of 2 percent. It is also declaring a one-time dividend of 51 cents a share, distributing the after-tax proceeds stemming from an LCD-related legal settlement.

Best Buy is looking pretty good, and it's why the stock's hitting new highs at a time when smaller chains are getting crushed. We've seen hhgregg (HGG) surrender more than half of its value since the start of last year and the carnage at Conn's (CONN) has been even worse.

The Coast Isn't Clear Just Yet

It's still premature to celebrate the turnaround at Best Buy. It is bracing investors for what could be a challenging fiscal 2016. The new fiscal year that began last month will be one in which Best Buy ramps up its investments to counter the negative trends in the industry.

"While these investments will put pressure on our fiscal 2016 operating income rate, we believe they leverage our executional momentum and will allow us to build a differentiated customer experience and a foundation for long-term success," CEO Hubert Joly notes in Tuesday morning's press release.

The market's forgiving Best Buy, for now. However, with Best Buy suggesting that margins will be tested in the coming quarters, it may be best for investors to see this new fiscal year play out before jumping on a stock that's already nearly doubled off last year's lows. The market has discounted a turnaround that's being established on moving ground.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. Want to make 2015 your best investing year ever? Check out The Motley Fool's free report on one great stock to buy for 2015 and beyond.

 

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The Real Deal Behind Deal Sites -- Savings Experiment

March 3, 2015, 3:56 am

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Filed under: Savings Experiment, Shopping

While it's true that people aren't exactly flocking to daily deal sites like they used to, you can still find some great discounts if you play it smart. Here are a few ways to get the best deals for your dollar.

First, consider the actual value of the deal you're getting. For example, a 50 percent off coupon at a local restaurant might seem tempting, but if the meals there are expensive to begin with, you might end up spending a lot more money than you intended. Remember, saving money on an overpriced item isn't really saving at all, so do some calculations first.

Next, keep in mind that an out-of-range deal doesn't always mean out-of-reach. A lot of so-called "local" deals, especially ones from larger chains, are actually available nationwide, so try searching for deals in other cities to cast a wider net. Just remember to read the fine print to check the terms and conditions so you know exactly what you're paying for and where it'll be available.

Lastly, if you're looking to save time, try using a deal aggregator for your bargain hunting. Sites like Yipit and 8Coupons collect thousands of daily deals from across the web, so you can view them all at once without sifting for hours. In addition to coupons from Amazon, Groupon and LivingSocial, these aggregators will even include deals from Facebook and Twitter, too.

It's easy to get carried away on daily deal sites, but it really pays to play it smart. Follow these tips and you'll be able to reel in the discounts, without getting your budget hooked.

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Chuy's Is No Chipotle or Qdoba

March 3, 2015, 4:20 am

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Filed under: Company News, Earnings, Retail, Food & Beverage, Restaurants

Another burrito roller stepped up to post quarterly results this week. Chuy's (CHUY), a chain of 61 full-service restaurants specializing in Tex-Mex dishes, reported fresh financials Monday.

It was a mixed report. Sales were strong, climbing 22 percent from the prior year's quarter to $61.8 million, fueled primarily by the chain's brisk expansion. There are 13 more Chuy's around than there were a year ago. Sales were decent at existing restaurants, with comparable-restaurant sales up 3.8 percent during the quarter. However, Chuy's did warn of lower sales volume at some of its newer restaurants.

Chuy's runs a festive concept where bar patrons can treat themselves to a nacho bar out of the back of a makeshift car trunk during happy hour. Guests are invited to bring in framed prints of their dogs to populate the walls of new restaurants. The restaurants also have shrines to Elvis Presley.

Sticking to the Presley theme, Chuy's top line may have been "love me tender," but its bottom-line results were "nothing but a hound dog."

Profitability declined despite the healthy sales spurt. Chuy's blames several factors including higher labor costs and higher food costs for gnawing away at its margins. Pesky prices for beef, chicken, and dairy -- three major components in Tex-Mex staples -- and a general reluctance to pass the increases entirely on to its customers resulted in a quarterly profit of 14 cents a share. Chuy's had checked in with a profit of 15 cents a share a year earlier.

The good news is that analysts were actually holding out for net income of just 13 cents a share. It's the first time in more than a year that Chuy's has beaten Wall Street's profit target. However, you're not going to find too many people celebrating a decline in profitability on the merits of relative expectations.

Fast Casual Wins Again

Investors can contrast Chuy's performance to that of Chipotle Mexican Grill (CMG) and Jack in the Box's (JACK) Qdoba. Chuy's shareholders won't like what they see.

The market may be cool with Chuy's checking in with a 3.8 percent uptick in comps, but that's a pittance compared to what the leading burrito rollers in fast casual are up to these days. Chipotle and Qdoba came through with a surge in comps of 16.1 percent and 14 percent, respectively.

Chipotle credits the spike largely to a price hike that it rolled out in May of last year. Qdoba points to a simplified pricing strategy whereby folks pay a single price for entrees based on the proteins, with everything else, including guacamole and queso, available at no additional cost.

The difference between Chuy's and the other two burrito rollers is even more pronounced on the bottom line. Chipotle's net income soared 52 percent in its latest quarter. Earnings per share at Jack in the Box -- which include Qdoba and the much larger namesake burger chain -- rose 27 percent.

Tex-Mex Flex

Chuy's is still early in its growth cycle. With just 61 locations across the country, it's a lot smaller than Qdoba with 647 eateries and Chipotle with 1,783 locations.

It also might not be fair to lump it in with the fast-casual players. Full-service restaurants have been growing a lot slower than fast-casual concepts in recent years as diners crave quicker experiences and lower price points without having to tip.

In terms of investing, all three chains trade at pretty lofty multiples. Chuy's trades at more than 30 times the midpoint of its new guidance for 2015. That's rich, but Jack in the Box and Chipotle trade at slightly higher markups. Investors will want to look at this dining niche. Consumers are clearly connecting with the burrito joints. However, given the hefty markups, they may want to wait until the stocks correct before taking a bite.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Chipotle Mexican Grill. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.​

 

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Behind the Scenes of Disney World's Price Increase

March 3, 2015, 4:35 am

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Filed under: Company News, Walt Disney, Travel, Inflation, Entertainment Industry

It's going to cost you more to visit Disney World, but this isn't the end of the world -- or the World. Disney's (DIS) move to raise ticket prices last month is not a surprise to those who have been following the family entertainment giant.

Disney has rolled out admission increases on an annual basis for ages. You have to go all the way back to 1988 to find the last year that one-day tickets didn't move higher, according to AllEars.Net. Even the timing isn't a surprise: Its previous increase also took place during the final weekend in February. There was an element of surprise in last year's move: The three previous annual hikes had taken place in early June, following five consecutive years of August increases.

Yes, it will cost more to visit the world's largest theme park resort. It's just not as big a deal as you might think.

Mickey Mouse March

A day at Magic Kingdom will now set you back $105, up from $99 before the Feb. 22 hike. Admission to Disney's three other Florida theme parks rose $3 to $97. Disney stopped charging the same rate for its four theme parks in 2013.

The media is playing this up as Disney World prices breaking into the triple digits, but that was actually already the case last year. These prices don't include the Florida sales tax that pushed the previous $99 entrance at Magic Kingdom to $105.44. Factor in parking -- now a whopping $17 a day -- and the money spent on food and souvenirs, and that sum shoots even higher.

It's the nature of inflation in entertainment. We all see our cable bills, multiplex admissions, and pro team season tickets creep higher with every passing year, so why not theme park admissions?

Goofy Math

It's also not a big secret that few guests will actually be paying $105 a day to visit the Magic Kingdom. Disney prefers to sell multiday tickets that drive down the prices substantially. A five-day ticket costs $315, or $63 a day. A 10-day ticket is just $365, or $36.50 a day.

There's a catch with the multiday discounted tickets: They expire within 14 days of the initial use. (Of course, you can pay more so that they don't expire.) Disney wants tourists heading down to Central Florida to make its parks a priority, keeping them away from rival attractions. It has fleshed out an ecosystem of resort hotels, complimentary transportation, and more recently MyMagic+ ride reservation technology to keep guests close. It even offers resort guests extended operating hours at its parks.

It's easy to see why Disney wants to keep tourists at its resorts. The Orlando area is ramping up its attractions, and these days there's no bigger threat to Disney World than Comcast's (CMCSA) Universal Orlando. The rival theme park operator has been growing faster than Disney since opening The Wizarding World of Harry Potter five summers ago, and this past summer's expansion of the Potter-themed attractions resulted in Comcast's theme park revenues soaring nearly 30 percent in its latest quarter.

This doesn't mean that Disney is wrong to raise prices. It, too, is checking in with record theme park attendance in Florida despite a lack of recent major attractions being added to its parks. The economy's improving, and families that had put off a trip to Disney World aren't going to let a $6 price hike get in the way. Disney also knows that it will be a major beneficiary of the sharp drop in gasoline prices, giving it the flexibility to raise prices since it knows guests will need to shell out less to get there. This summer is going to be another big one for amusement and theme park operators, and higher ticket prices will translate into even greater operating profits for the companies manning the turnstiles.

Motley Fool contributor Rick Munarriz owns shares of Walt Disney. He operates a few theme park-related websites as well as the All Things Florida YouTube channel. The Motley Fool recommends and owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool's one great stock to buy for 2015 and beyond.

 

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U.S. Running Out of Room to Store Oil; Price Collapse Seen

March 3, 2015, 5:37 am

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Filed under: Energy, Gas Prices, Oil & Gas Industry, Public Utilities, This Built America

By JONATHAN FAHEY

NEW YORK -- The U.S. has so much crude that it is running out of places to put it -- and that could drive oil and gasoline prices even lower in the coming months.

For the past seven weeks, the United States has been producing and importing an average of 1 million more barrels of oil every day than it is consuming. That extra crude is flowing into storage tanks, especially at the country's main trading hub in Cushing, Oklahoma, pushing U.S. supplies to their highest point in at least 80 years, the Energy Department reported last week. If this keeps up, storage tanks could approach their operational limits, known in the industry as "tank tops," by mid-April and send the price of crude -- and probably gasoline, too -- plummeting.

"The fact of the matter is we are running out of storage capacity in the U.S.," Ed Morse, head of commodities research at Citibank, said at a recent symposium at the Council on Foreign Relations in New York. Morse has suggested oil could fall all the way to $20 a barrel from the current $50. At that rock-bottom price, oil companies, faced with mounting losses, would stop pumping oil until the glut eased. Gasoline prices would fall along with crude, though lower refinery production, because of seasonal factors and unexpected outages, could prevent a sharp decline.

Multiple Factors Involved

The national average price of gasoline is $2.44 a gallon. That's $1.02 cheaper than last year at this time, but up 37 cents over the past month. Other analysts agree that crude is poised to fall sharply -- if not all the way to $20 -- because it continues to flood into storage for a number of reasons:

• U.S. oil production continues to rise. Companies are cutting back on new drilling, but that won't reduce supplies until later this year.
• The new oil being produced is light, sweet crude, which is a type many U.S. refineries are not designed to process. Oil companies can't just get rid of it by sending it abroad, because crude exports are restricted by federal law.
• Foreign oil continues to flow into the U.S., both because of economic weakness in other countries and to feed refineries designed to process heavy, sour crude.
• This is the slowest time of year for gasoline demand, so refiners typically reduce or stop production to perform maintenance. As refiners process less crude, supplies build up.
• Oil investors are making money buying and storing oil because of the difference between the current price of oil and the price for delivery in far-off months. An investor can buy oil at $50 today and enter into a contract to sell it for $59 in December, locking in a profit even after paying for storage during those months.

The delivery point for most of the oil traded in the U.S. is Cushing, a city of about 8,000 halfway between Oklahoma City and Tulsa at an intersection of several pipelines. The city is dotted with tanks that can, in theory, hold 85 million barrels of oil, according to the Energy Department, though some of those tanks are used for blending or feeding pipelines, not for storing oil.

There Are Other Numbers to Consider

The market data provider Genscape, which flies helicopters equipped with infrared cameras and other technology over Cushing twice a week to measure storage levels, estimates Cushing is two-thirds full. Hillary Stevenson, who manages storage, pipeline and refinery monitoring for Genscape, says Cushing could be full by mid-April. Supplies are increasing at "the highest rate we have ever seen at Cushing," she says.

Full tanks -- or super-low prices -- are not a sure thing. New storage is under construction at Cushing, and there are large storage terminals near Houston, in St. James, Louisiana, and elsewhere around the country that will probably begin to take in more oil as prices fall far enough to cover the cost of transporting the oil. Also, drillers are cutting back fast because oil prices have plummeted from $107 a barrel in June. And demand is showing signs of rising.

While the Energy Department reported another enormous rise in crude stocks last week, up 8.4 million barrels from the week earlier, it also reported that diesel and gasoline supplies fell more than expected. That leads some to conclude that demand for crude will soon pick up, easing the glut somewhat. But many analysts believe oil prices will fall through the spring, before summer drivers start to relieve the glut.

 

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Target Looks to Woo Younger Shoppers With Grocery Revamp

March 3, 2015, 7:44 am

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Filed under: Retail, Consumer Goods, Food & Beverage, Target, This Built America

By Supriya Kurane

Target (TGT) has zeroed in on seven grocery categories, including granola, yogurt and craft beer, to attract younger shoppers, urban dwellers and Hispanics, The Wall Street Journal reported, citing people familiar with the matter.

The U.S. retailer is showing signs that its food direction will become less reliant on packaged and processed foods that are out of favor with many consumers, the Journal said.

The changes would mean less shelf space for packaged food companies, including Campbell Soup (CPB), General Mills (GIS) and Kraft Foods (KRFT).

Target is also looking to hire an executive with grocery experience to head the business and Chief Executive Officer Brian Cornell has been interviewing candidates in recent weeks, the newspaper said.

Company representatives weren't immediately available for comment outside regular U.S. business hours.

Target is expected to unveil plans for new investments and cost cuts at an analyst meeting Tuesday in New York.

Under Cornell, who took over as chief executive in August, Target has already made a few big strategic shifts, including pulling out of the Canadian market and refocusing on a few key product lines such as beauty, apparel and baby goods.

 

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Target to Cut Thousands of Jobs in $2 Billion Restructuring

March 3, 2015, 8:37 am

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Filed under: Company News, Retail, Layoffs, Target

By Nathan Layne

Target (TGT) said Tuesday it planned to cut several thousand jobs, mainly from headquarters locations, as part of a restructuring that will cut $2 billion in costs over two years.

The cost-cutting forms a key plank of a revival plan outlined by Chief Executive Officer Brian Cornell, who is seeking to narrow the retailer's focus to a handful of key product lines and bolstering its online business to rejuvenate sales.

Speaking to a meeting of analysts in New York, Cornell said the restructuring was aimed at freeing up resources for investments in its focus areas. "Cutting complexity at headquarters will make us more competitive," he said.

Target also unveiled forecasts for the fiscal year to January 2016.

The company said it expected adjusted earnings a share, which excludes data breach costs and other expenses, of between $4.45 and $4.65 for the full year to January 2016, compared with last year's $4.27 and the market consensus for $4.51 according to Thomson Reuters I/B/E/S.

It projected comparable sales growth of 1.5 to 2.5 percent this fiscal year.

The company also said it had the capacity to buy back up to $2 billion worth of its own shares this fiscal year, and look to repurchase $3 billion annually from the following year and beyond.

 

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At Hotels in America's Priciest Cities, You Pay for the View

March 3, 2015, 8:48 am

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Filed under: Travel, Travel Industry, Lodging, Vacation Planning

Travelers to California, Hawaii and Florida saw the highest hotel rates for the first half of 2014, with all but five of the top 20 cities in those popular vacation spots experiencing price increases from 2013.

The priciest place to spend the night in a hotel? Visitors to Newport Coast, California, an affluent community 50 miles south of Los Angeles, paid $519 a night for the first half of 2014, a 9 percent increase from $477 a night during the same time in 2013, according to the latest Hotels.com Hotel Price Index.

Cities on the coast or islands made up 17 of 20 spots on the list. Here are the top 10 U.S. cities where travelers paid the most for the first half of last year, followed by nightly price for a hotel room and percentage increase or decrease from 2013:

1. Newport Coast, California: $519, +9 percent.
2. Wailea, Hawaii's island of Maui: $448, -3 percent.
3. Oahu, Hawaii: $438, +3 percent.
4. Yountville, California's Napa Valley: $418, +5 percent.
5. Rancho Palos Verdes, Caifornia: $407, +9 percent.
6. Duck Key, Florida: $382, +18 percent.
7. Bal Harbour, Florida: $371, +24 percent.
8. Princeville, Hawaii's island of Kauai: $368, +18 percent.
9. Sausalito, California: $358, -4 percent.
10. St. Helena, California's Napa Valley: $348, -8 percent.

Bal Harbour had the highest price increase, at 24 percent, followed by prices up 19 percent in Paradise Valley, Arizona; and up 18 percent in Princeville, Hawaii, and two Florida spots: Duck Key and Key West.

Most Expensive Domestic Markets

Those are the highest prices for U.S. cities. Some domestic markets, however, are still costly but not as much as the cities listed above. Honolulu, for example, led a list of domestic markets where U.S. travelers paid the most for a hotel -- with an average of $236, 3 percent more than in 2013 --- but it's still a lot less than other resort areas in Hawaii.

San Francisco saw the biggest increase in hotel prices among domestic markets, rising 10 percent to $179 a night, which Hotels.com says could be attributed to a new spring tourism campaign.

Other expensive domestic markets for U.S. travelers were: New York City at $221 a night, up 4 percent; Boston and Miami-Ft. Lauderdale, up 6 percent to $187; and Salisbury, Maryland, up 3 percent to $171.

The Cheapest U.S. Cities to Visit

If you don't mind not being at the beach and want to go somewhere off the beaten path, Hotels.com found the least expensive U.S. cities: Macon, Georgia, and Dothan, Alabama, at an average of $80 a night.

Tied for third were Albany, Georgia, and Yuma, Arizona, at $81 per night. Five cities tied for fifth place at $86 per night: Grand Junction, Colorado; Ottumwa, Iowa; Wichita Falls, Texas; Lawton, Oklahoma; and Joplin, Missouri.

Most Expensive Countries

If you're looking to leave the U.S. for vacation, there are some countries to avoid if you don't want to pay the highest prices for a hotel room. Among countries where U.S. travelers paid the most, French Polynesia led the list for the first six months of 2014 at $522 a night, surpassing Maldives.

Monaco had the highest percentage increase of 30 percent, to $442 per night. Like San Francisco, Hotels.com attributed the increase in part to Monaco's increased promotional efforts.

That may make you pause the next time you see a bombardment of ads promoting your favorite vacation destination.

 

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Market Wrap: Tech Stocks Lead Indexes Fall From Records

March 3, 2015, 8:51 am

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Filed under: Energy, Technology, Market News, Automotive Industry, Oil & Gas Industry

By Sinead Carew

NEW YORK -- U.S. stocks finished lower Tuesday, a day after the S&P and Dow hit records, and the Nasdaq retreated along with technology stocks.

Soft auto sales numbers and Iran commentary also gave some investors pause after a strong run-up for major indexes in February. Traders were also waiting for a slew of economic data later this week, culminating with the monthly payrolls report.

We just came a little too far fast. It made sense to have little bit of a pullback here.

"We just came a little too far fast. It made sense to have little bit of a pullback here," said Brian Lazorishak, portfolio manager at Chase Investment Counsel in Charlottesville, Virginia.

"Given the level of optimism, the overbought condition, we wouldn't be surprised to see at least a couple of days of consolidation," he said.

Technology stocks fell as investors took profits a day after the Nasdaq hit the 5,000 milestone for the first time since the peak of the dot.com bubble in March 2000.

Microsoft (MSFT) weighed most on the Nasdaq and S&P 500 with an 1.4 percent drop to $43.28, followed by a 2.2 percent decline in shares of Cisco Systems (CSCO), which gave back most of Monday's gains.

Semiconductor chips were some of the worst-hit, with the Philadelphia SE Semiconductor index closing off 1.94 percent after a February gain of more than 12 percent. The S&P 500 technology sector finished down 0.8 percent

The biggest percentage decliners in the S&P 500 were Micron Technology (MU), down 5 percent to $29.66, and Applied Materials (AMAT), which fell 4.5 percent to $24.48.

The Dow Jones industrial average (^DJI) fell 85.26 points, or 0.47 percent, to 18,203.37, the Standard & Poor's 500 index (^GSPC) lost 9.61 points, or 0.45 percent, to 2,107.78 and the Nasdaq composite (^IXIC) dropped 28.20 points, or 0.56 percent, to 4,979.90.

Weather-Impacted Auto Sales

For the second year in a row, tough winter weather slowed U.S. vehicle sales in February, with several automakers missing analyst projections. U.S.-listed Fiat Chrysler (FCAU) shares fell 3.3 percent to $15.31 while Ford Motor (F) declined 2.4 percent to $16.17.

Adding to investors' caution, Israeli Prime Minister Benjamin Netanyahu warned U.S. President Barack Obama against accepting a nuclear deal with Iran. His comments caused some investors to pull back but helped boost oil prices.

Utilities and energy were the only two of 10 S&P 500 sectors that ended the session higher.

About 6.3 billion shares changed hands on U.S. exchanges, below the 6.5 billion average for the last five sessions, according to BATS Global Markets.

Declining issues outnumbered advancing ones on the NYSE by 1,810 to 1,249, for a 1.45-to-1 ratio; on the Nasdaq, 1,784 issues fell and 948 advanced, for a 1.88-to-1 ratio favoring decliners.

The benchmark S&P 500 posted 11 new 52-week highs and 1 new lows; the Nasdaq composite recorded 70 new highs and 32 new lows.

-With additional reporting by Chuck Mikolajczak.

What to watch Wednesday:

• The Institute for Supply Management releases its service sector index for February at 10 a.m. Eastern time.
• The Federal Reserve releases its Beige Book survey of regional economic conditions at 2 p.m.

 

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7 Creative Ways to Save Money on Your Wedding

March 3, 2015, 10:00 pm

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Filed under: How to Save Money, Saving

Your wedding is one of the most special days of your life -- but you don't want to spend the rest of your lives together paying for it.

Fortunately, there are plenty of ways you can host a day to remember without a budget you'll always regret. Here are seven big ways to cut back on costs while still planning a lovely wedding.

In the end, your big day is all about you and your love for each other. The rest is just details, and you don't need to spend a small fortune on the details. Use the savings to enjoy a nice honeymoon, make a downpayment on a house, build an emergency fund together or even create a "baby fund" (if you're so inclined.)

Paula Pant quit her office job in 2008, traveled to 32 countries and is a successful real estate investor. Her blog Afford Anything is the groundswell of a rebellion against tired old financial advice that says you should skip lattes and chain yourself to a desk for 40 years. Afford Anything helps you crush limits, create riches and maximize life.

 

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What to Buy at RadioShack as Its Bankruptcy Proceeds

March 3, 2015, 10:00 pm

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Filed under: Bankruptcy, Retail, Mobile Technology, Deals, Consumer Electronics

By Cameron Huddleston

Considering that RadioShack declared bankruptcy a month ago, the message on the retailer's site might seem a bit perplexing. It reads, "We are open for business! Check out our exclusive Web deals."

Our advice: Capitalize on the confusion. While the 94-year-old electronics chain did indeed file for Chapter 11 protection on February 5, many of its approximately 4,000 company-owned stores, as well as RadioShack.com, remain in operation -- at least for now. The ultimate fate of RadioShack is up in the air, so take advantage of bargains before locations are shuttered or sold off.

Deep discounts can be found online and in stores, but the retailer will stop honoring RadioShack gift cards after Friday. Shelley Hunter of GiftCards.com says holders of gift cards are catching a break since it's not unusual for stores to stop accepting gift cards immediately after declaring bankruptcy. Hunter says consumers still are in possession of about $44 million worth of the retailer's gift cards.

Best Values

If you have a gift card you need to use or just want to take advantage of deeply discounted prices, these items should offer some of the best values at RadioShack, according to Louis Ramirez, senior editor of bargain-shopping site DealNews.com:

• Smartphones. Over the past year, RadioShack has had some great deals on smartphones, says Ramirez. You might not see many markdowns on the newest models of phones, such as the iPhone 6, but Ramirez says you should see discounts on models such as the iPhone 5c and the LG Volt 4G.
• Media streaming devices. Ramirez says that RadioShack has had some great deals in the past on Amazon Fire TV and Roku Streaming Sticks, which let you stream movies, TV shows and more to your television. So he expects these items to be discounted as RadioShack clears out inventory.
• Hobby accessories. RadioShack has always been a go-to shop for hobbyists, so it's no surprise that it has offered great prices on an array of accessories, Ramirez says. Among the most-discounted accessories at RadioShack have been emergency weather alert radios, which the store sells for as little as $10, he says.

Smart Ways to Redeem RadioShack Gift Cards

• If the items above don't appeal to you or you don't need a new tech gadget for yourself, here are several creative ways you can use your RadioShack gift card:
• Stock up on everyday items. Hunter recommends using your gift card to buy items you know you're going to need, such as batteries or phone chargers.
• Purchase gifts. RadioShack sells gaming systems, video games and a variety of electronic toys. So if you have kids who like these items, use your gift card to buy them for upcoming birthdays or holidays.
• Get broken gadgets repaired. Some RadioShack retail locations offer on-site repair services for Apple and Samsung mobile devices.
• Buy items to donate. Hunter says that you can put your gift card to good use by buying items to donate, such as computer keyboards for kids' school or supplies for your place or worship. You can claim a tax deduction if you donate items to an eligible nonprofit.
• Buy items to sell. Under normal circumstances, you could sell unwanted gift cards for cash at Web sites such as GiftCards.com, CardCash or Cardpool -- but these aren't normal circumstances. None of the sites is accepting RadioShack gift cards due to the bankruptcy filing and imminent expiration. So if you want cash for your card, Hunter recommends using it to buy something at RadioShack, then turn around and sell that item on eBay or Craigslist.
• Don't toss your unused gift card. If you don't redeem your gift card before the deadline, you might be able to get your money back if you file a claim with RadioShack, Hunter says. You'll likely need proof that you have a gift card, so that's why you should hang on to it. There's also a chance that gift cards will be honored by any RadioShack stores that operate under new ownership. It's possible too that other retailers will offer discounts to holders of RadioShack gift cards. When Sharper Image declared bankruptcy, for example, Brookstone let consumers turn in Sharper Image gift cards for 25 percent discounts, Hunter says.

 

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You Can Soon Charge Your Phone on Ikea Furniture

March 3, 2015, 10:00 pm

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Filed under: Technology, Mobile Technology, Furniture, Home & Garden

By Chris Ciaccia

If you've ever gotten tired of constantly looking for an outlet to charge your phone, you're in luck -- thanks to Ikea. People can leave their devices on Qi-supported pads built into Home Smart pieces, allowing them to charge wirelessly.

Ikea is doing this in conjunction with the Wireless Power Consortium, owner of the Qi technology, which has more than 200 partners, including some of the world's largest technology companies, such as HTC, Microsoft, Lenovo's Motorola Mobility unit, Samsung, Sony, Texas Instruments and Verizon.

"Ikea is delivering on its vision of making life at home better with this innovative, stylish and useful new collection that show consumers the beauty and simplicity of wireless charging," consortium Chairman Menno Treffers said in a statement. "We applaud Ikea for its unmatched insight and their unique passion for making wireless charging affordable and simple for consumers."

The tables, lamps and desks will be available in Europe and North America next month and will come to the rest of the world later.

Apple Isn't Part of the Plan

Although customers won't be able to directly charge Apple iPhones because Apple isn't part of the group, there are a number of iPhone cases that support the Qi standard. Consumers will be able to charge more than 80 mobile devices thanks to Qi, which has also been built into 15 models of cars and into more than 700 products.

"Our belief is that mobile phones are vital parts to people's lives at home and their desire to stay connected," said Bjorn Block, a technology manager at Ikea. "Qi addresses an unmet need to keep devices powered."

 

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These French Investors Are Guaranteed to Make Money

March 3, 2015, 10:00 pm

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Filed under: Investing Basics, Scandals and Lawsuits, Investing

My position on active management is very clear. Attempting to "beat the market" through stock picking, market timing and trying to select mutual fund managers who will go on to outperform is the road to retirement frustration. I have seen no credible evidence that anyone possesses the expertise to engage in these activities successfully over the long term. Wall Street, however, has done an excellent job of confusing luck with skill, leading many gullible investors to believe that using its services is a prudent way to invest.

Given these beliefs, you can imagine my surprise when I uncovered a form of active management that actually makes sense. Understanding why this exception works may help you reassess the way you currently invest.

Active Management That Works

According to a February article in the Financial Times, a French citizen could become a billionaire by the end of this decade, all thanks to the unique wording of a life insurance agreement given to him by his father. Starting in 1987, a French insurance company called L'Abeille Vie (now part of Commercial Union) began offering a "special deal" to its wealthier clients. It was called a Fixed Price Arbitrage Life Insurance Contract.

Pursuant to the terms of these policies, holders allocated their dollars to different investment funds offered by the insurer. Prices for the funds were published each Friday. However -- and this is the unique part -- clients were allowed to switch funds at those prices any time before the next price was published, even if the markets moved up or down in the interim.

The ramifications of this provision were profound. If a fund increased in value, it could be purchased at the lower price published the previous Friday. If the price went down, the fund could be sold at the higher price published the previous Friday. These provisions gave the holder of the policy a risk-free way to earn staggering returns.

Not surprisingly, for the decade commencing in 1997, the investments of this lucky policy holder increased by 68.6 percent annualized.

The insurance company is fighting to have these provisions overturned. So far, it has had no success.

Clearly, this is a form of active management that works. Unfortunately, it is no longer available.

Active Management That Doesn't Work

The bread and butter of almost all dealer-brokers and many advisors is their ability to convince you they can "beat the market." What they are really saying is that they can predict tomorrow's prices and give you the chance to buy at those prices today. However, unlike the special situation involving the French insurance policies, they are just guessing at tomorrow's prices. They may be right or wrong, but if they are correct, it's more likely attributable to luck rather than skill.

And active management's long-term track record does not inspire confidence. Exhaustive, long-term studies published in peer-reviewed journals have found relatively few actively managed funds produce benchmark-adjusted expected returns sufficient to cover their costs. Over the past five years, more than 70 percent of domestic equity managers, 74 percent of global funds, 70 percent of international funds, 45% of international small-cap funds and 68 percent of emerging markets funds underperformed their benchmarks.

If these are the dismal results of the best stock pickers in the world, with all of the resources available to them, do you really think you and your broker can do better?

The Takeaway

Unless you are fortunate enough to own one of the unique French insurance agreements that permit you to buy stocks at yesterday's prices when they have increased in value, trying to "beat the market" is a loser's game.

As noted by my colleague, Larry Swedroe, and his co-author, Andrew Berkin, in their book, "The Incredible Shrinking Alpha," active management is "the triumph of hype, hope and marketing over wisdom and experience."

It doesn't work.

Daniel Solin is the director of investor advocacy for the BAM Alliance and a wealth adviser with Buckingham. He is a New York Times best-selling author of the Smartest series of books. His latest book is "The Smartest Sales Book You'll Ever Read."

 

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Tax-Free Trick Many Ordinary Americans Don't Know About

March 3, 2015, 10:00 pm

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Filed under: Taxes, Income Tax, Tax Cuts, Tax Laws, Tax Refunds

Many people believe that only rich people get the benefits of lucrative tax breaks. Yet for years now, the tax laws have made provisions for ordinary middle-class Americans to get just about the best possible tax break out there: tax-free treatment for a portion of their income. Even better, with this break, you don't have to lock up your money until retirement. In order to take advantage of this break, though, you have to know the specific types of income that are eligible -- and then put yourself in a position to start earning that kind of income for yourself.

Going Beyond Retirement Accounts

When most financial experts talk about tax-free growth, they'll typically mention Roth Individual Retirement Accounts and Roth 401(k) plan accounts. Roths give retirement savers a chance to earn tax-free income and growth on their investments, with the opportunity to avoid tax on all the gains they earn between when they make their Roth contributions and when they take the money out in retirement. Roths can make great investment vehicles for people saving for retirement, especially if you're in a low tax bracket right now.

But there's another tax-free opportunity that you don't need a retirement account to use. The tax law currently makes provisions for special treatment for two types of investment income: long-term capital gains and qualified dividends on stocks and mutual-fund distributions.

The part of these tax provisions that people know best applies to higher-income taxpayers. Until 2013, a maximum rate of 15 percent applied to long-term capital gains and qualified dividends. Two years ago, changing tax laws imposed a 20-percent rate on those taxpayers who were in the highest available tax bracket.

What many people never realize, though, is that a special 0 percent rate applies to taxpayers who are in the two lowest income-tax brackets. That might sound like it's reserved for low-income taxpayers, but in actuality, the second-lowest bracket extends upward all the way to taxable income of $73,800 for joint filers and $36,900 for single filers. Moreover, that doesn't include the standard or itemized deductions and personal exemptions that many people qualify to take, allowing you to make even more money while still remaining in those brackets.

How to Earn Tax-Free Income

If you're in one of those two lowest tax brackets, then tax-free treatment is yours for the taking. But that still leaves the question of what you need to do to earn the right type of income to qualify.

Long-term capital gains are relatively simple. If you have profits from an investment, you have to have held on to that investment for at least a year plus a day in order to get long-term treatment for the gains when you sell. Otherwise, higher short-term capital gains rates apply for investments held for a year or less.

For qualified dividends, the requirements are a little trickier. Typically, stock of U.S. corporations and of some foreign corporations whose shares are listed on a U.S. stock exchange will meet the test for qualified dividend treatment. But special entities like real-estate investment trusts, business development companies and master limited partnerships don't always qualify for the lower rate. In addition, to get qualified dividend treatment, you have to hold on to the stock for more than 60 days out of the four-month period surrounding the date on which the stock goes ex-dividend. Otherwise, you'll pay the ordinary income tax rate for regular income.

If you hold stocks through a mutual fund, then part of the distributions you receive from the fund will represent qualified dividends. Under some circumstances, a fund might pay out some qualified and some nonqualified dividend income, but in that event, it will report that fact on the 1099 tax document you receive early in the year.

From a big-picture standpoint, the tax-free provisions of the tax laws act as an incentive for those with modest income levels to invest for the long run, especially in the stock market. Given the lengths to which most people would go to avoid having to pay tax on their income, making the most of long-term capital gains and qualified dividends makes a lot of sense -- and not only will it save you on your taxes, but it might just encourage you to invest more profitably as well.

Motley Fool contributor Dan Caplinger always looks for tax-saving tricks. You can follow him on Twitter @DanCaplinger or on Google+. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.

 

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