Survey Says: Your Interest Rate Is Going Up

May 15, 2015, 4:00 am

≫ Next: When It Makes Sense to Skip Filing a Car Insurance Claim

≪ Previous: Factory, Consumer Confidence Data Darken Q2 Outlook

Filed under: Federal Reserve, Stock Markets, CDs, Interest Rates, Economy

Financial Markets Wall Street Federal Reserve — **Richard Drew/AP**Federal Reserve Chair Janet Yellen speaking in March. The Fed has signaled that it's edging closer to raising interest rates from record lows in light of a strengthening job market.

"April job gains rebound to 223,000; unemployment dips," blared a recent headline on USA Today. But if you've got money in the stock market, that news may not be as good as it sounds. It could even be the prelude to a market crash.

Here's how.

Good News ...

According to the Bureau of Labor Statistics, the American economy did indeed add 223,000 new jobs in April, while unemployment declined to its lowest level since the financial crisis -- 5.4 percent. What's more, among those with jobs, average wages ticked up 3 cents to $24.87 an hour, marking a 2.2 percent rise over the past year. All of this adds up to a healthier economy, and in the opinion of the Federal Reserve, a healthy economy is one that can withstand higher interest rates.

For months, Fed Chair Janet Yellen has been hinting that the Fed may soon begin raising interest rates -- perhaps as early as this summer, perhaps in the fall. With the economy on the mend, more people getting jobs, and workers earning more at those jobs, it's likely the Fed will begin raising interest rates "sooner rather than later," argues USA Today in another article.

And it's not just USA Today that thinks so.

According to a recent poll by Gallup, 56 percent of U.S. investors expect interest rates will rise either a little or a lot in the next 12 months. Only 7 percent expect to see a decline.

... Becomes Bad News

Noting that interest rates have been "practically zero" since 2006, Gallup warns that any increase "could be a shock to the market and investors who have become accustomed to extremely low rates."

Gallup explains that investors in recent years have avoided money markets and CDs paying minimal interest, putting most of their money in the stock market. This is a key reason that the Dow is now sitting near 18,000. With nowhere else to put their money, investors have been using their savings to buy stocks. This buying has pushed stock valuations up to levels that Yellen described during an interview with the IMF last week as "quite high."

This situation could be especially dangerous for retirees. Gallup notes that nearly 1 in 5 retirees agrees that in recent years they have "put more money in stocks than [they are] usually comfortable with," specifically because the interest rates elsewhere are so low. Raise those rates, and investors might pile out of stocks, sending the stock market into a nosedive.

Granted, investors who are happy with recent stock market returns say they aren't likely to move their money out of stocks, and into CDs and money markets, even if those start paying better interest. (But 23 percent tell Gallup that they will switch.) Even those who say they won't could change their opinion in a hurry if stocks start to tumble -- creating a snowball effect of more and more investors fleeing the stock market for the relative safety of CDs.

What to Do Now?

That's not necessarily a bad thing for you, though. Everyone sees the risk of rising interest rates to the stock market. But so far, few people are acting to avoid that risk. That means there's still time to move to the front of the line and begin preparing your investments for the expected rise in interest rates. A few moves you might consider:

Cash out. If your stocks are up, now might be a good time to take some money off the table. Put it in a bank account and then, if interest rates rise to a level you like, you can use this money to buy a CD.
Cash out -- then cash back in. Alternatively, money taken out of the stock market today, and stashed safely in a bank account, could be used to buy back into the stock market later on -- if rising interest rates cause stocks to become cheaper.
Got a mortgage? Higher interest rates will mean more expensive mortgages. Right now, a 30-year mortgage costs just 3.8 percent interest, according to Freddie Mac. That's nearly a half-percent cheaper than the same mortgage cost a year ago, and more than a full point cheaper than mortgages cost five years ago. If you agree with (almost literally) everyone else that interest rates will rise over the next 12 months, the time to lock in a low rate is now.
Owe money on a credit card? If the Fed hikes interest rates, and banks do the same, then the first place we may feel the impact is on variable-rate credit cards. Here's a hint: You don't want to be caught with large unpaid debts on your credit cards when rates begin to rise. While as a general rule, it's always a good idea to cut back on spending, and pay down high-interest debt whenever possible ...

... today, with everyone agreeing that interest rates are moving higher, there's simply no time like the present to get started.

Motley Fool contributor Rich Smith tries to practice what he preaches. He has his mortgage refinanced and his credit cards paid off. (Do you?) Next step: Sell some stocks. If you're looking to buy instead, check out The Motley Fool's one great stock to buy for 2015 and beyond.

Permalink | Email this | Linking Blogs | Comments

↧

When It Makes Sense to Skip Filing a Car Insurance Claim

May 15, 2015, 6:15 am

≫ Next: Market Wrap: S&P Ekes Out 2nd Record Close After Ho-Hum Data

≪ Previous: Survey Says: Your Interest Rate Is Going Up

Filed under: Personal Finance, Inflation, Auto Insurance, Consumer Issues

Female Driver Making Phone Call After Traffic Accident — **Getty Images**

By Ellen Chang

NEW YORK -- Drivers pay an average of 41 percent more for car insurance after making a single claim, according to the second annual study by insuranceQuotes.com.

Massachusetts continues to be the worst state to have an accident occur -- just one claim leads to an average premium increase of 76 percent compared to 67 percent in 2014. The national average is up three percentage points this year, compared to the 38 percent increase found in 2014 (typically your premium won't increase if you aren't to blame for the accident, except in a no-fault state). The cheapest state is Maryland, which only increases premiums by 22 percent.

California also penalizes drivers for just one claim and increases rates by 75 percent, followed by 62 percent in New Jersey. Other states which have lower increases include Michigan with a 23 percent increase and Montana with a 25 percent rise in premiums. To check out where your state ranks, go here.

Many consumers underestimate the consequences of making claims because they can affect your rate for years.

Making a second claim proves to be very costly since a driver with two claims pays over twice as much for car insurance as a claim-free driver or 93 percent.

If you dent your car accidentally by backing into a pole in a parking garage and the amount of the damage isn't much more than your deductible, it might be worth it to pay for the repair yourself.

"Many consumers underestimate the consequences of making claims because they can affect your rate for years," said Laura Adams, a senior analyst at insuranceQuotes.com. "If you get a premium hike for making a small claim that could hurt your finances over the long run."

Location isn't the only reason your premium may increase drastically. Many increases are also affected by the type of claim. Bodily injury and property damage including collision claims are the most expensive with insurance costs rising by 45 and 41 percent, respectively. The cheapest ones are comprehensive claims for non-collision events such as theft and barely increase at 2 percent.

If you aren't sure whether you should file a claim, use the calculator here.

The study found that drivers who make a single auto insurance claim of $2,000 or more will see an average premium increase of 41 percent. A second claim in the same year increases your average annual premium increase by 93 percent. The average cost of an auto insurance premium in the U.S. is $815, which means an increase of 41 percent would result in having to shell out another $335, according to the National Association of Insurance Commissioners.

Consumers need to understand that insurers use criteria that assess risk, said Loretta Worters, vice president of the Insurance Information Institute in New York.

"Your premium is based on how likely you are to get in an accident and how much that accident will cost," she said.

The average yearly auto insurance premium is about $800, but there is wide variation around these averages, said Worters.

For many insurers, "credit-based insurance scoring is one of the most important and statistically valid tools to predict the likelihood of a person filing a claim and the likely cost of that claim," she said.

"Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history," Worters said. "For example, regular on time credit card and mortgage payments affect a score positively, while late payments affect a score negatively."

A number of factors determine if filing a claim is worth it, and consumers should obtain at least one or even two estimates before making any decisions, said Alec Stewart, principal of Eagle Independent Insurance Agency in Dallas.

"The bottom line is that people need an agent working for them to give them the best advice on whether a claim should be filed and to assist them with the claims process," he said.

--Written by Ellen Chang for MainStreet

Permalink | Email this | Linking Blogs | Comments

↧

Market Wrap: S&P Ekes Out 2nd Record Close After Ho-Hum Data

May 15, 2015, 9:57 am

≫ Next: 10 Techniques You Should Learn From Great Hagglers

≪ Previous: When It Makes Sense to Skip Filing a Car Insurance Claim

Filed under: Market News, Economic Indicators, Federal Reserve, Travel Industry, Interest Rates

Financial Markets Wall Street — **Richard Drew/AP**

By Noel Randewich

NEW YORK -- U.S. shares ended little changed Friday, with the S&P 500 edging up to a record high for a second straight session after a ream of weak economic data.

The Standard & Poor's 500 index (^GSPC) gained 1.63 points, or 0.08 percent, to end at 2,122.73. That followed a more substantial 1.1 percent jump Thursday that fueled speculation the benchmark index might trend higher after having oscillated in a range for much of the past three months.

However, weak industrial output and consumer sentiment reports Friday did little to instill confidence in investors about the economy's growth momentum. The major indexes spent most of the day in the red.

With the markets treading, it's really reflecting what's happening in the general economy.

"With the markets treading, it's really reflecting what's happening in the general economy," said Warren West, principal at Greentree Brokerage Services in Philadelphia. "The rest of the economy's not breaking out, so how can the market?"

The Dow Jones industrial average (^DJI) rose 20.32 points, or 0.11 percent, to end at 18,272.56. The Nasdaq composite (^IXIC) dropped 2.50 points, or 0.05 percent, to 5,048.29.

For the week, the Dow closed 0.4 percent higher, the S&P rose 0.3 percent and the Nasdaq added 0.9 percent.

Seven of the 10 major S&P 500 sectors rose Friday, with the utilities index up 1.26 percent.

Bank of America (BAC), which dropped 1 percent, weighed most on the S&P 500, while Netflix was its strongest positive influence.

Netflix (NFLX) rose 4.5 percent to $613.24 after Bloomberg reported it was in talks to enter China. The stock has soared 80 percent this year.

Industrial output slipped 0.3 percent, weighed by a decline in production by mining companies and utilities. Economists had forecast a rise of 0.1 percent.

U.S. consumer sentiment also fell more than expected in May and was at its lowest since October.

Weak Economic Growth

Adding to the negative tone, economists cut their forecasts for U.S. economic growth in the second quarter and the full year, and trimmed expectations for U.S. labor market gains.

"There is some concern about the first-quarter weakness spilling into the current quarter," said Ilya Feygin, managing director at WallachBeth Capital in New York.

Yum Brands (YUM) rose 4.38 percent after J.P. Morgan upgraded the stock to "overweight" and said the likelihood was increasing that the KFC owner might spin off its China business.

Next week's most closely watched quarterly earnings scorecard will come from the world's largest retailer, Walmart (WMT), which reports early Tuesday. Fed Chair Janet Yellen will speak about the economic outlook Friday.

Advancing issues outnumbered declining ones on the NYSE by 1,732 to 1,313, for a 1.32-to-1 ratio on the upside; on the Nasdaq, 1,381 issues fell and 1,365 advanced for a 1.01-to-1 ratio favoring decliners.

About 5.7 billion shares changed hands on U.S. exchanges, below the 6.2 billion average for the last five sessions, according to BATS Global Markets.

The benchmark S&P 500 index posted 38 new 52-week highs and 3 new lows during Friday's session; the Nasdaq composite recorded 94 new highs and 35 new lows.

-With additional reporting by Tanya Agrawal.

What to watch Monday:

The National Association of Home Builders releases housing market index for May at 10 a.m. Eastern time.

These selected companies are scheduled to release quarterly finance results:

Agilent Technologies (A)
Take-Two Interactive Software (TTWO)
Urban Outfitters (URBN)

Permalink | Email this | Linking Blogs | Comments

↧

10 Techniques You Should Learn From Great Hagglers

May 15, 2015, 10:00 pm

≫ Next: 30 Ways to Shave the Cost of Laundry

≪ Previous: Market Wrap: S&P Ekes Out 2nd Record Close After Ho-Hum Data

Filed under: Consumer Ally, How to Save Money

Wide view of suburban yard sale — **Getty Images**

By Mikey Rox

There are two types of buyers in the world -- the ones who lie down and take it, and the ones who can take it or leave it. If you're in the former camp, it's high time you learn how to stick to your guns and start shaving precious dollars off things you want and need. To hone your haggling skills, consider these tips from a few experts who know how to get things for less.

1. Establish a Budget and Stick to It

Before you set out on your trip, establish a budget for whatever it is you intend to buy. The goal is to get the dealer to meet you at that price or go even lower, and it's important to have a threshold in mind so you know when to hold 'em and when to fold 'em. "Make a decision about how high you're willing to go before engaging the seller - then stick to it," says CJ Legare, the founder of Functional Girl. "Haggling can be a passionate exchange; you don't want to overpay in the heat of the moment."

2. Arrive Well-Researched

It's important to know your stuff before you engage in any bargaining, which is why it's important to research the item you're buying. Show signs of uncertainty and, like a rabid dog can smell fear, the dealer, too, will sense your weakness.

"Whether shopping for a new car or attempting to lower a cable plan, great hagglers have done their homework and know what the competition is offering, current market prices, product/service specifications, so that they can negotiate with power," says consumer and money-saving expert Andrea Woroch. "You can't get much accomplished if you don't know what you're talking about. Online reviews can provide a treasure trove of information -- who the fair negotiators are, who has inventory worth paying for, and who to avoid."

3. Inspect the Item Meticulously

Get a leg up on the deal by inspecting the item through and through. If you find any imperfections at all, add them to your arsenal. Dents and dings decrease the value of the item -- so there's no reason you should still be paying full price. "A flaw is a reality check," Legare says, "but a flaw that you can work with is leverage that can make the difference between walking away empty-handed or getting a better deal."

4. Stay Polite Throughout the Process

You know the old saying -- you'll attract more flies with honey than vinegar. Translation: Leave the sour attitude at home if you want to walk away a winner. Even when the bargaining isn't going your way, stay polite, keep a smile on your face, and lose like a winner. It's not the end of the world, and there's always tomorrow. "You won't get anywhere by yelling or being rude. Specifically, this is true with monthly expenses and medical bills," Woroch says.

5. Flash That Cash

There are times when flashing your money is downright obnoxious (like most of the time!), but when it comes to haggling, busting out the cash isn't always a bad idea. Cash in hand lets the dealer knows that you came to play ball -- and you've got the bills to back it up.

"One of the best haggling tips I've learned is to 'show the cash,'" says attorney Richard A. Chapo. "First, know what you are willing to pay. Second, have it on hand in cash. Three, haggle with the cash in your hand where the salesperson or manager can see it. The cash tells them you are serious and ready to buy now, which is ever tempting and often turns a 'no' into a 'yes.'"

In addition to flashing the cash, be sure to let the dealer how much you're working with as well. This solidifies that you're serious, but it also gives the impression that if they don't meet your price, you'll most likely walk away.

"Great hagglers state their terms and see if there is any wiggle room," says Mindy Crary, financial planning coach at Creative Money. "[For example], 'You have so many great offerings here and I'd love to buy more than one but I am only working with $X today. Would you be willing to work with me a little?' I once got three vintage rings for the stated price of two on Etsy by using the 'praise + limit + offer' process."

6. Put on Your Poker Face

Emotion equals weakness, and in business that's a death sentence. No matter how badly you want something, it's critical to keep your cool. Express interest, but that's it. Treat it like any ol' thing that you can get someplace else -- at least in front of the dealer anyway.

"When presented with an item you're dying to own/buy or a deal that seems really good, don't appear overly excited or anxious, which may hinder your bargaining power," says Woroch. "The less excited you are over something, the more the sales associate needs to sell you on it."

Legare seconds that sentiment. "If a seller realizes you're excited about an item, they'll use it to their advantage during the haggle," she says.

7. Review Your Bills Regularly

Haggling isn't just done at car dealerships and antique shops. Sometimes you need to work people down in other situations -- even with big companies. Woroch says that she haggles every few months to keep her cable and Internet bills down. "I also recently haggled my way out of credit card interest for two months," she says. "If I didn't stay on top of my bills and review my account, I may not notice those small additional charges that would add up overtime." It's not a bad idea to take a look at your bills to see where you can trim some fat, too.

8. Don't Take No for an Answer

If you were willing to take no for an answer, you could've just stayed at home. "When a store associate can't help or you're getting nowhere with a customer service rep, it's time to take things up a notch --ask to speak with a supervisor or manager who has more power to work with you on a deal. Better yet, speak with a retention specialist when dealing with bills like cable, Internet and mobile phones," Woroch says.

9. Walk Away

You've lived without the item until today, which means that if the dealer isn't willing to meet your ideal but reasonable price, you can live without it a little longer. Don't be afraid to take your money someplace else. You might just get what you want after all. "When shopping for certain goods like appliances, furniture, and cars, salespeople can be pushy and it's easy to lose your ground," Woroch says. "A great haggler won't be afraid to walk away from a deal knowing that that a salesperson wants his or her business and will likely come running after or call you with a deal."

10. Provide Loyalty in Appreciation of Great Deals

I know lots of professionals - event planners and interior designers especially - who get great discounts on a regular basis from stores around town because they're frequent customers and they're always referring someone new. Mom-and-pop brick-and-mortar owners, in particular, are usually thankful for this practice and provide loyalty discounts accordingly.

Lagare's seen it before, too. "Don't underestimate the power of relationship building," she says. "When you find fair sellers with great inventory, bring them your business regularly and they'll throw you great deals in return."

Permalink | Email this | Linking Blogs | Comments

↧

30 Ways to Shave the Cost of Laundry

May 15, 2015, 10:00 pm

≫ Next: Crowdfunding: Unholy Hybrid of Retail, Investment, Risk

≪ Previous: 10 Techniques You Should Learn From Great Hagglers

Filed under: Consumer Goods, How to Save Money, Clothing & Accessories, Saving

By Marilyn Lewis

The average American family washes almost 400 loads of laundry per year, according to the Environmental Protection Agency. That's nearly $100 just spent on detergent a year -- not counting the cost of energy used to power your washer and dryer. Imagine putting most of that money back into your pocket. Nice? Yes. What's more, many of the tips below whittle the cost of doing laundry and also are kinder to the environment.

1. Skip the Detergent

Washing clothes without the soap may strike you as nuts, but give it a try, at least with lightly soiled laundry. If you've ever washed clothes in plain water while camping, you know you can get by without detergent.

Dubious? Jeffrey Hollender, co-founder of Seventh Generation, the maker of eco-friendly laundry soap. "wonders why more people haven't stumbled upon laundry's big, dirty secret: "You don't even need soap to wash most loads," he told The Wall Street Journal. The agitation of washing machines often does the job on its own.

2. Cut (Way) Back on Detergent

"More soap does not, in fact, mean cleaner clothes," writes cleaning expert and author Jolie Kerr, at Huffington Post. "Excess suds can hold dirt pulled from clothes and get caught in areas that won't always rinse clean, like under a collar, leading to bacteria buildup," CNN reports.

"Too many suds (a sure sign of an over-zealous detergent-pourer) might shut down your high-efficiency machine, and can wear on the equipment over time," advises Good Housekeeping,

Read a detergent bottle's label to know how much soap to use. and measure. If your wet clean clothes feel stiff or sticky, you're using too much soap. Or run the machine empty -- no laundry, no detergent. Suds visible in the water means you are using too much soap.

3. Skip the Detergent Every Few Loads

Do without laundry soap just occasionally, with a load of lightly soiled items like sheets, for example. Skipping soap now and then stretches the life of your detergent. It's also kind to your washer, which benefits from the break.

4. Rinse Residue From Your Machine

Using too much laundry soap can cost you the price of a new washing machine. Liam McCabe, laundry appliance tester and writer at TheSweetHome, notes that high-efficiency washers "are made to work with very small amounts of detergent. All the experts I talked to said that the No. 1 reason HE machines break down is because people use too much detergent in them. It's not able to rinse away properly, so the residue builds up in the machine, which causes performance problems, followed by mechanical problems."

Rodale News suggests preventive maintenance: "Running an empty machine with no laundry, adding a cup of white vinegar to help remove soap residues. If the wasted water and energy make you cringe, run a normal load of clothes and add the vinegar to that." Run one of these rinses at least every six months -- monthly if you do lots of laundry.

5. Make Your Own Laundry Soap

Making your own laundry soap cuts your cost from a quarter or more to 6 cents to 10 cents per load, HouseLogic finds. Money Talks News founder Stacy Johnson shares his favorite recipe for homemade laundry soap:

1 bar of soap.
3 gallons plus 4 cups of water.
1 cup borax.
½ cup washing soda.

Borax can irritate your eyes. Be careful. Washing soda is sodium carbonate, closely related to baking soda, or sodium bicarbonate. "Wear rubber gloves when handling it," says Real Simple, which reports that both can be purchased at supermarkets -- roughly $1.08 a pound of baking soda vs. around $1.75 a pound for washing soda. Penniless Parenting, a blog, tells how to heat baking soda to make it into washing soda.

Money Talks News' Angela Colley gives instructions: "Bring 4 cups of water to a boil. Grate the bar of soap with a cheese grater. Drop the pieces into the boiling water and cook until the soap dissolves. Pour 3 gallons of water into a large bucket. Add in the soap and water mixture. Add in one cup of borax and half a cup of washing soda. Stir until the ingredients thicken. Use about ¼ cup (the size of a normal laundry detergent cap) per wash cycle. Use one to two tablespoons per load."

Utah State University Cooperative Extension offers two variations.
Kristin Marr at Live Simply uses castille soap and essential oils among her ingredients.
HouseLogic (link above) tests and compares three recipes and a commercial detergent.

The product testers at TheSweetHome found that DIY detergents don't work as well -- probably because they're missing the "enzymes, surfactants (which work better at cleaning than soap), or polymers, which keep dirt from re-depositing on your clothes and making them turn grey over time."

6. Use Half the Soap With Soft Water

Hard water has lots of calcium and magnesium, minerals that make it difficult for cleaning products to perform their jobs. If you have soft water, though, you can dial back your use of detergent. The Chicago Tribune writes, "Softened water reduces the need for detergent by more than 50 percent because it doesn't contain the minerals that interact with the cleaning products."

7. Wash All You Can in Cold Water

Laundry machines are among the biggest energy hogs in a home. The Environmental Protection Agency urges washing laundry in cold water to save energy: "Hot water heating accounts for about 90 percent of the energy your machine uses to wash clothes." The average household saves about $40 a year using cold water to wash, it says. If your home's water is "hard," you may find that you require warmer water.

8. In a Pinch, Wash Laundry in Baking Soda

If you are out of detergent, substitute a cup of baking soda. "Your clothing will be cleaner than you imagine with the action of the baking soda, water and agitation from the washer," writes Mary Marlowe Leverette at About.com. She links to instructions for making your own laundry soap in powdered and tablet form as well as liquid. (Money Talks News' Donna Freedman has 84 other great uses for baking soda.)

9. Hang a Clothesline

You'll save $100 a year in electricity ($40, if you use a gas dryer) by hanging clothes to dry instead of using an electric dryer, we wrote a while back, quoting the National Resources Defense Council.

10. Wash Full Loads

Laundering is expensive because the machines require lots of energy. Cut your costs on energy by doing laundry only when you have a full load. Choose the correct water level and load size on your machines' controls.

11. But Don't Overload

Stuffing a washer or dryer too full stops your machines from working efficiently. Read your product manual for guidance on optimal loads. In general, if the clothes feel crowded you can be sure they won't have the space they need to tumble or agitate well. They won't get clean enough and fabrics can wear from rubbing against each other.

12. Set the Right Water Level

When you must do a smaller load, select a lower water level. You'll save money on water, on heat if you're using hot water and by running the washer a shorter time.

13. Use an HE Washer

When replacing your washer, consider buying an HE (high-efficiency) version. Front-loaders cost about $200 more, says Reviewed.com, at USA Today. Are they worth it? They clean better, use about five gallons less water per load and consume up to half the electricity with an electric hot water heater, so experts prefer them. But homeowners are passionately divided, the article says, concluding that, "if you can afford the extra up-front cost, front-loaders may offer significant savings down the road." Good Housekeeping compares front loaders vs. top-loaders.

14. Use the Right Soap for Your Machine

If you have a HE washer, whether top- or front-loader, avoid conventional laundry detergent, Consumer Reports cautions. Use only soap labeled "HE." Also, avoid detergents labeled "HE compatible" in your HE washer, warns this guide from The Cleaning Institute, an industry organization.

About.com's Mariette Mifflin explains why this matters: "High-efficiency front or top loading washers are designed with low water levels and a tumbling washing action. HE detergents are low sudsing and specially formulated to provide clean washloads in these energy-saving washers."

Use of any other kind of detergent in a high-efficiency washer can confuse your washer cycle and stop the machine -- and it can prevent it from washing or rinsing properly. Fortunately, prices are comparable for both types of detergent, so doing the right thing costs no more.

15. Feel Fine About Homemade Soap in HE Washers

You might wonder if homemade laundry products are appropriate for HE washers, but no experts warn against them. Many bloggers say they use DIY laundry soap in HE washers with no issues. Mary Leverette, at About.com, writes of homemade laundry soaps that, "since none contain a sudsing agent as an ingredient, all are safe for a high-efficiency washer."

Using homemade soap in your washer or not is a question of personal preference, University of Utah extension agents say, adding: "Homemade laundry detergents are naturally low in suds, which meets the HE washing machine detergent requirement. Homemade laundry detergents have not be found to harm or damage the clothing or washing machine."

16. Buy Detergent in Bulk

When buying laundry detergent, shop during sales. Purchase in large containers or in packs of multiples bottles at box stores for more savings.

17. Shop With Coupons

Reduce the cost of laundry soap by downloading coupons before you head out to the stores. Search for "detergent" at MoneyTalksNews' coupon page. When you are making your own laundry soap, find coupons for the individual ingredients.

18. Use the Dryer Again While It's Still Hot

Dry one load immediately after another to take advantage of the warm machine. A cold dryer consumes more energy warming up.

19. Jump When the Buzzer Goes Off

Be ready to open the dryer immediately when the buzzer announces that a load is done. Have hangers and a basket ready and be prepared to pull clothes out quickly and hang, fold or smooth them out. That way you won't need to waste energy and time on ironing.

20. Use Off-Peak Rates for Drying

Some electrical utilities charge less for energy when demand is lower. If peak pricing is available to you, schedule your laundry hours accordingly.

21. Don't Let Your Dryer Run Too Long

When the dryer is near the end of its cycle, check the contents for dryness. Pull it out when it is dry to the touch rather than letting the machine keep running. Newer dryers have sensors that signal the motor to stop when clothes are dry.

22. Remove Dryer Lint Regularly

Lint build-up in clothes dryers is more of a fire hazard than many realize. Remove lint from the lint trap screen with every use. Don't let it build up. Periodically clean the dryer vent and exhaust duct and behind the dryer. We explain here (in tip 11) how to do it.

23. Use the High-Speed Spin

If your washer allows you to select spin speeds, use a high spin speed to wring the most water out of laundry. Clothes emerge from the washer dryer and require less time in the clothes dryer.

24. Forget Fabric Softeners

Fabric softeners are another expensive commercial laundry product that can be effectively replaced with a DIY solution. Two options:

Add a quarter cup of white vinegar to the final rinse to soften fabrics and prevent static cling. Caution: Do not use vinegar if you are also using bleach. The combination creates toxic chlorine gas.
Or, add a half cup of baking soda to the last rinse.

25. Or Cut Back on Fabric Softener

If you're hooked on commercial fabric softener and don't like substitutions, try using half as much as you usually do.

26. Buy Easily Washed Clothing

Make life simpler and cheaper by steering clear of garments with dry-clean only tags and limiting your purchases of hand-washable items.

27. Use a Mesh Laundry Bag for Delicates

Protect delicate items by segregating them in the washer inside a zippered mesh laundry bag. Hang them to air dry. They'll last much longer.

28. Keep a Stain-Removal Pen With You

This trick is for parents. If you can whip out a stain removing pen or wipes at the moment the stain is fresh, you up the odds of saving clothes from being ruined by stains. If you're out of the house, don't forget to launder the item as soon as you get home.

29. Sort Laundry

Washing like fabrics and colors together is a basic way to prevent expensive laundry disasters in which an entire load of Dads underwear, for instance, is colored pink by a red t-shirt.

30. Be Prepared for Red Wine Spills

Not ten minutes after I walked into a party one summer evening, someone accidentally dumped a glass of red wine down the front of a favorite white cotton blouse. A stranger told me about a product called Wine Away, often carried in grocery and beverage stores. Astoundingly, it saved the blouse and left no trace of the wine.

Tell us your money-saving laundry tips and tricks at Money Talks News' Facebook page. 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.

Permalink | Email this | Linking Blogs | Comments

↧

Crowdfunding: Unholy Hybrid of Retail, Investment, Risk

May 15, 2015, 10:00 pm

≫ Next: 7 Things to Know About Divorcing During Your Senior Years

≪ Previous: 30 Ways to Shave the Cost of Laundry

Filed under: Technology, Personal Finance, Loans

CF3F83 five teens staying with funs of dollars in their hands close by five; teens; staying; funs; dollars; in; their; hands; fi — **Alamy**

By Shelly Banjo

Dave Bogaty is a coffee junkie. He exclusively buys his beans from a small-batch roaster in Brooklyn and scouts out local varieties in every city he visits.

So when the Massachusetts native and former Google software engineer saw a commercial-quality home espresso machine showcased on the "coffee@google" mailing list back in 2011, he went to crowdfunding website Kickstarter to snag one for $250. ZPM Espresso, the maker of the machine, had raised nearly $370,000 in a matter of days.

More than three years later, Bogaty has given up on ever seeing that coffee machine. Or his $250. After raising additional funding from private investors and selling pre-orders of the nonexistent machine through its own website, ZPM pushed back delivery dates for three years. Finally in January, ZPM alerted backers the company had folded and "will most likely be unable to offer refunds," according to an email reviewed by Quartz.

Accountability? What's That?

Bogaty mostly shrugs off the lost money (and he still hasn't bought a home espresso machine). But he tells Quartz he worries his experience may become more common as crowdfunding morphs into a murky offshoot of the much larger finance industry.

"This model is effectively financing without any obligation to the people giving you the money," Bogaty said. "There's no accountability."

Kickstarter is perhaps the best-known platform in the fast-growing constellation of crowdfunding outlets -- a catchall term used to describe a range of services, from websites offering backers early access to new products to sites that allow funders to make equity investments in startups and real estate projects. While they all tend to blend together in a loosely regulated pool of alternative finance, the basic idea is to provide an alternative to banks and venture capitalists and offer everyday consumers a quicker, more direct way to save, spend, and invest.

"We've all seen Kickstarter projects fail, but this is different," Bogaty told Quartz. He argues that ZPM Espresso raised hundreds of thousands of dollars by promising to create espresso machines for more than 1,000 enthusiastic backers but instead took the money and used it as operating capital, allowing it to attract private investors they otherwise might not have found, he says. Then, like the majority of startups, ZPM failed.

Evolving Concepts

In recent years, raising money online from crowds of individuals has become an increasingly common avenue for successful upstarts, helped along by big hits like Oculus Rift (acquired by Facebook) and Pebble Watch, which has raised more than $30 million on various Kickstarter campaigns. Now some startups forgo angel or seed money in favor of what venture capitalist Matt Turck refers to as a pre-Series A "crowdfunding" round.

For its part, Kickstarter says the definition of crowdfunding is still evolving. "Investment, commerce, and philanthropy are three very different types of transaction we're all familiar with and it's tempting to frame the Kickstarter experience within those existing boxes. But, ultimately, it's an entirely new kind of value exchange, and deserves its own set of expectations," spokesman Justin Kazmark said.

Worldwide crowdfunding reached $16.2 billion in 2014, up from just $6.1 billion the year before, according to research and advisory firm Massolution. The figures include various types of crowdfunding including models based on donations, rewards, lending, royalties, equity, or a hybrid version.

Da Vincis, Spielbergs and Medicis

In its early days, crowdfunding was often viewed as an idealist endeavor, allowing people to get music or film projects off the ground by tapping into a broad pool of small donors. (In 2009, the New York Times described Kickstarter as "a startup based in Brooklyn that uses the web to match aspiring da Vincis and Spielbergs with mini-Medicis who are willing to chip in a few dollars toward their projects.")

Today crowdfunding has morphed into a much more transactional mashup of commerce, finance, and investing. And the questions surrounding the industry -- is it charity? retail? investment? -- will likely only get more murky as a new generation of crowdfunding models and websites come online, many specifically designed to secure equity investments for new or growing companies.

New laws around the world are making it possible for more individuals to put their money into flavors of crowdfunding that are more like investments than donations. And regulators in the U.S., U.K., China, and Germany are making it easier for people without millions of dollars to invest in startups in exchange for shares in early-stage companies-opening the way for a further evolution of crowdfunding in that direction.

It's a natural progression, angel investor Gil Penchina told Quartz. Penchina, a former eBay executive turned angel investor, recently put together a pool of investors, known as a syndicate, to make equity investments in companies raising money through Indiegogo -- a donation-and-reward based crowdfunding site. In partnership with Indiegogo, angel investors will buy stakes in select companies behind successful crowdfunding campaigns. "When we started seeing hardware startups on crowdfunding websites begin to out-raise venture companies, we began paying serious attention to them," he said.

Angel Investors and Venture Capitalists

Angel investors and venture capitalists have been incubating projects on crowdfunding sites and trolling the platforms for new ideas for years, "now, we are just formalizing the process," Indiegogo CEO Slava Rubin told Quartz. He also points out that Indiegogo recently began offering backers the chance to buy insurance on some donation-and-reward-based campaigns in case the projects on its site go bust.

The attraction to crowdfunding is obvious from the perspective of the startups raising money, especially companies that manufacture gadgets or devices. Producing those items is a "capital-heavy business that is helped by selling thousands of pre-orders before you actually manufacture the product," says Adam Sager, co-founder and CEO of Canary, a home security device company that raised $1.96 million in pre-orders on Indiegogo and now sells its products at retailers such as Best Buy and Amazon. "When we saw the response on Indiegogo, we knew we were on to something, and so did the investors and retailers that went on to partner with us."

Regulation on the Way

But Sager explains that Canary used the Indiegogo campaign to fund the production of the devices exclusively, raising $1.2 million around the same time in additional seed funding to pay for hiring and other company operations.

At any rate, the amount of money flowing into crowdfunding platforms is set to rise over the next few years, as countries begin allowing more people to participate in platforms that are investment-driven, rather than the traditional blend of donations and rewards.

New rules go into effect in the U.S. this summer that allow small businesses to raise up to $50 million from the general public in a process resembling a mini-IPO, which could open up a new avenue to raise money through crowdinvesting. Previously, these types of private offerings were only available to so-called accredited investors with a net worth of $1 million or more, excluding their primary residence. The regulations stem from the Jumpstart Our Business Startups Act, which Congress passed in 2012 but has yet to fully implement. Additional rules specifically geared toward crowdfunding are expected by October.

Funders Have Limited Experience

In the U.K., which has already passed a set of rules regulating the industry, crowdfunding is now the fastest-growing form of alternative finance, growing three times faster than peer-to-peer lenders, according to a report from the University of Cambridge and think tank Nesta.

The U.K.'s Financial Conduct Authority, which spearheaded the rules, waves a big red flag at potential investors: "It is very likely that you will lose all your money," the financial watchdog cautions. It warns investors to "only invest money you can afford to lose."

The warnings are well placed: More than 60 percent of U.K. investors who put money in equity crowdfunding deals had zero prior investing experience and more than 40 percent were tapping funds that otherwise would have been placed in savings, the University of Cambridge and Nesta found.

Similar rules are in motion in China, as well as in Germany, where a proposed law would restrict investors from spending more than €10,000 on a single venture and allow them to demand a refund within 14 days.

Huge Risks

Consumer rights advocates caution against blindly accepting the populist argument from proponents who say crowdinvesting will give average investors access to the same kinds of money-making prospects as Silicon Valley bigwigs.

They say that early-stage investments do offer more access for everyday investors but come with limited liquidity and only deliver a payout if the company is sold or goes public, a process than can take many years if it ever comes. Plus, there is no way to know if an early-stage crowdinvestor's stake-and future upside-will be diluted by future financing rounds.

"The vast majority of people are still not saving adequately for retirement, so why would we push them into highly speculative investments in small companies?" says Barbara Roper, director of investor protection at the Consumer Federation of America. "There's a reason why this market traditionally hasn't been opened up to average investors, who can't recognize that the vast majority of companies will fail."

Back to that Espresso Maker

ZPM Espresso was one of those failures. It decided to scale up its original plan of making only 50 or 100 espresso makers to meet the much higher demand its Kickstarter campaign generated, Gleb Polyakov, a company founder, told Quartz. But that meant relocating to a bigger production facility and finding the right suppliers. The bigger operation led to manufacturing mishaps and certification hangups, which soon sucked up all the company's funds. Raising more cash from private investors and pushing delivery dates ever later wasn't enough.

Polyakov said his team worked 60 to 80 hours a week for years to build the espresso makers but "at the end of the day, the manufacturing was a lot more complicated than we expected, we got low on money, people started leaving, we couldn't get Series A funding, and there was no runway to stretch the project out beyond that."

As for the disappointment from its original Kickstarter backers, Polyakov explained his Kickstarter backers weren't investors. But he says their direct relationships with the company was also a bit different than the traditional links between a vendor and customer. "There's this investor-like sense that, hey, I've been communicating with the product makers, getting regular updates on manufacturing, and providing feedback, which creates a feeling of ownership you don't get when you're just buying something off of Amazon."

And while it's likely little comfort to those who gave their money to ZPM, Polyakov saidthe company's cofounders are trying to sell ZPM to a company that could someday actually build the espresso makers and deliver them to its original Kickstarter backers.

Permalink | Email this | Linking Blogs | Comments

↧

7 Things to Know About Divorcing During Your Senior Years

May 15, 2015, 10:00 pm

≫ Next: Is Social Security in Bigger Trouble Than You Think?

≪ Previous: Crowdfunding: Unholy Hybrid of Retail, Investment, Risk

Filed under: Retirement, Divorce

sad elderly woman sitting in a room — **Aletia/Shutterstock**

By Maryalene LaPonsie

Calling it quits during your senior years may no longer be a decision that raises eyebrows. The divorce rate for those ages 50 and older doubled between 1990 and 2010, according to a study by Bowling Green State University sociologists.

While remarriages tend to have higher divorce rates, it isn't only people on their second or third spouse who are seeing their marriage dissolve. The study published in The Journals of Gerontology found that 48 percent of divorcees were in their first marriage. If it looks like your happily ever after is ending, here are seven things family law experts say you need to know about "gray divorces."

1. Alimony Is Almost Always Granted After Long-Term Marriages

While younger couples may have temporary alimony agreements that provide financial support for their ex, often only long enough for lower earning spouses to get back on their feet, it's a different situation for those exiting long-term marriages. "In New York, for example, the court will generally give alimony for life," says Bruce Provda, a divorce attorney in New York City.

What's customary for alimony can vary, but legal experts say senior couples can expect it to play some role in their divorce proceedings. "If they're working, they're going to pay some alimony," says Bob Boyd, a partner with the Atlanta law firm Boyd Collar Nolen & Tuggle and past president of the Georgia Chapter of the American Academy of Matrimonial Lawyers.

2. Your Retirement Money Is About to Be Cut in Half

It doesn't matter if one spouse was considered at-fault for the divorce; attorneys say retirement funds and other assets are likely to be split evenly. "What looked like a lot of money to live on in your senior years doesn't look like much when cut in half," Boyd says.

Provda adds that some spouses may offer more of their pension to avoid making alimony payments. However, it may not be a person's best interest to accept a deal that would trade tax-favored investments for potentially taxable income.

3. If You Keep the House, You're Giving Up Something Else

Boyd says many women balk at giving up their marital residence. While it can be an emotional decision to give up a longtime home, it's one that makes the most financial sense, particularly when courts often split assets evenly. "If you take the house, it has a value," Boyd says. "[Then your husband] is going to get something in his column to balance that out."

That something could be a greater share of a pension or a smaller alimony obligation. Either way, keeping the house and giving up retirement savings or cash payments could put a person in a bind. Houses come with property taxes, maintenance expenses and other costs that can stretch already meager financial resources.

4. Your Kids May Be Older, but They Might Still Be a Factor

"Divorce is always a hard transition at any stage," says Christina Pesoli, a family law attorney in Austin, Texas, and author of "Break Free from the Divortex." "The silver lining [of senior divorce] is that it's not going to have the same gut-wrenching kid issues that younger couples have."

In most gray divorces, child support and visitation orders are out of the picture. However, that doesn't mean adult children aren't a consideration in the divorce proceedings.

Nancy Chemtob, a matrimonial attorney and founding partner of Chemtob Moss & Forman in New York City, says it's not unusual for parents to provide financial support for adult children. While adult children may want this support to continue, it's not something typically written into a divorce agreement unless a child has a disability or is in school.

"You can't obligate someone to pay a third party," Chemtob says. The same applies to couples who may be supporting elderly parents. As a result, some divorcees may end up in the difficult position of having to decide whether to use their diminished savings or income to continue this support.

Finally, adult children may react emotionally to their parents' divorce. Pesoli says there is no reason to overshare if everyone seems to be adjusting appropriately, but parents shouldn't have to keep the reasons behind the divorce a secret. "Share if it brings resolution and is needed to help kids make sense of what's happening," she says.

5. Be Polite, Civil and Businesslike

Emotions run high during a divorce, but experts say to try to keep conversations neutral. "It doesn't matter how old you are, be as amicable as possible," Chemtob advises. "There is no benefit in having a contentious divorce."

Pesoli agrees but adds that being amicable isn't the same as being an open book. Sharing information such as future plans, favorite possessions or desired assets could give a spouse considerable negotiating power during divorce proceedings. "Be polite, be civil, but keep it businesslike," Pesoli advises.

6. Don't Start Dating Before Your Divorce Is Final

Getting a divorce can have an impact on relationships beyond the marriage. It can polarize friends and leave some ex-spouses feeling alone and defensive. "It's so important, as a senior person, when you get a divorce to not let yourself be isolated," Boyd says.

Possible outlets for social interaction could be community events, volunteer activities or even hitting the campaign trail for your favorite candidate in the next election. However, Pesoli says newly single seniors shouldn't make the mistake of squandering their blank slate and jumping into a new relationship too quickly. "Dating before your divorce is final never makes things better," Pesoli says. It can upset children, anger the soon-to-be ex-spouse and add time and money to the proceedings.

7. Get a Prenup for the Next Time Around

With remarriages being more likely to end in divorce than first marriages, family law experts advise anyone considering another union to get a prenuptial agreement. "If I were getting married for the second time in my senior years," Boyd says, "I would surely get a prenuptial agreement."

Permalink | Email this | Linking Blogs | Comments

↧

Is Social Security in Bigger Trouble Than You Think?

May 15, 2015, 10:00 pm

≫ Next: Is America Getting Over Its Coffee Addiction?

≪ Previous: 7 Things to Know About Divorcing During Your Senior Years

Filed under: Retirement, Retirement Living, Social Security

By Karla Bowsher

More bad news about Social Security: The funds will run out sooner than government projections indicate, according to a new analysis.

In an article titled "Systemic Bias and Nontransparency in U.S. Social Security Administration Forecasts," academics from Harvard University in Cambridge, Massachusetts, and Dartmouth College in Hanover, New Hampshire, argue that the federal agency is underestimating the likely future shortfall of its funds.

The Social Security Administration says that to keep the program going, the agency expects to start tapping its reserve in 2019 and expects to deplete its reserve in 2033. According to an SSA summary of the 2014 annual reports:

Thereafter, tax income would be sufficient to pay about three-quarters of scheduled benefits through the end of the projection period in 2088.

That could be a big problem, considering that a recent Gallup poll shows that 36 percent of people who have yet to retire expect Social Security benefits to be a "major source" of retirement income. (See "Social Insecurity: 3 Reasons Retiring Might Be Tough.")

If the shortfall arrives "sooner than anticipated," as the academics project, it could make matters worse. They state that the SSA's Office of the Chief Actuary:

Underestimates life expectancy, especially for males.
Overestimates birth rates.

In other words, the academics project that retirees will live longer -- and fewer replacement workers will be born -- than the SSA projects. Both of these scenarios would deplete the SSA's reserve sooner than the agency predicts.

But Steve Vernon, a consulting research scholar at Stanford University's Center on Longevity in Stanford, California, writes at CBS News that he is puzzled by the fuss over how the SSA computes its shortfall projections:

This debate is much like arguing whether the Titanic is one mile or two away from the deadly iceberg. Whether the Social Security trust fund will be depleted in 2033, as forecast by the Office of the Actuary, or at some earlier date ... we still have a major problem in need of attention.

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!

Permalink | Email this | Linking Blogs | Comments

↧

Is America Getting Over Its Coffee Addiction?

May 18, 2015, 3:40 am

≫ Next: Summer Skies: Airlines to Fly Record Number of Passengers

≪ Previous: Is Social Security in Bigger Trouble Than You Think?

Filed under: Retail, Commodities & Futures, Industry News, Food & Beverage, Shopping Trends

Young woman drinking out of an orange cup — **Getty Images**

You wouldn't know it from the crowd at your local Starbucks (SBUX), but coffee consumption in this country has been declining. According to a survey by the National Coffee Association, 59 percent of respondents drank at least one daily cup of java last year, down from 61 percent in 2014's study and 63 percent in 2013.

Meanwhile, the average number of cups consumed a day fell to 1.85, an 8 percent drop from the 2014 level and the lowest figure since 2010.

Coffee isn't only part of our business and social culture, it's considered a big part of the day-to-day routine for many Americans. Why, then, are those numbers falling?

Not Your Father's Cup o' Joe

Consumption of the powerful dark liquid has changed radically over the years. In the old days, drip coffee was usually the only variety available at home, in restaurants, and at various kinds of takeout establishments. It was a bulk product, brewed into pots and sold at low prices.

The market changed when espresso-based beverages began their ascendancy in the 1990s, headed by the likes of Starbucks and other slingers of European-style drinks. These "designer" versions of good old java commanded higher prices, thanks in no small part to the labor involved in making them. Coffee became more of a treat, a specialty product as opposed to a commodity.

The prevalence of designer coffee is an established trend that's becoming even more entrenched. According to the NCA, thirty-four percent of those surveyed said that they're drinking what's characterized as "gourmet coffee" every day, a notable increase over 2013's 31 percent. "Gourmet," in this case, means a product that's either espresso-based or made from premium beans, according to the NCA.

If we narrow the parameters strictly to espresso-based beverages, those figures show even higher take-up -- 18 percent for 2014, compared to only 13 percent the previous year.

The shift toward designer coffee results in a move toward pricier offerings. After all, lattes, cappucinos and their ilk are significantly more expensive than traditional varieties. These days a Starbucks Grande Latte, for example, will set a customer back around $4.40 in California.

By comparison, a 48-ounce jug of J.M. Smucker's (SJM) famous Folgers instant coffee brand can be bought for something like $18.76. On a per-cup basis, that works out to around 5 cents.

In the times when the big pot of drip coffee was the standard, it cost very little to continually refuel your cup. At a price nearing or exceeding $5 a serving these days, few people have the means or the inclination to throw down more than a couple of Starbucks drinks every day.

Tea for Me

Some of the volume lost by coffee has been gained by its traditional rival, tea. According to the The Tea Association of the USA, the American market for the beverage increased by roughly 10 percent from 2012 to 2014, landing at over $10 billion in the latter year.

Like the culture of coffee, that for tea in America has shifted over the years. But the difference is, it's become broader rather than narrower, with a range of previously obscure varieties going mainstream -- witness the prevalence of green tea, for example or the ascendancy of the spice-laden chai variation.

Meanwhile, big companies have successfully devoted big resources to selling the cold variety of the beverage. In Coca-Cola's (KO) list of its top 20 products, three are teas while only one is a coffee drink. Those three -- Fuze, Gold Peak and Ayataka -- achieved this status only recently, beginning in 2012.

In what has to be seen as an acknowledgement of tea's rising popularity, Starbucks acquired specialty retailer Teavana in 2013. In its last full fiscal year before being swallowed by its present owner, Teavana's revenue grew by a brisk 35 percent on a year-over-year basis.

Designed for Popularity

Americans have always loved their coffee, but the shape of this affection has changed. No longer is it the drink kept close at hand, quaffed at regular intervals to get us through the day; instead it's enjoyed more intermittently and in fancier forms.

Not to mention much heftier prices, to the benefit of the latte and cappuccino purveyors now seemingly on every street corner.

Motley Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Starbucks. Try any of our Foolish newsletter services free for 30 days. Check out our free report on one great stock to buy for 2015 and beyond.

Permalink | Email this | Linking Blogs | Comments

↧

Summer Skies: Airlines to Fly Record Number of Passengers

May 18, 2015, 4:11 am

≫ Next: Dog Food Company Recalls Product Over Salmonella Fears

≪ Previous: Is America Getting Over Its Coffee Addiction?

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

Summer Flights — **J. Scott Applewhite/AP**

By SCOTT MAYEROWITZ

NEW YORK -- A record number of travelers are expected to take to the skies this summer thanks to a rebounding economy.

U.S. airlines will carry 222 million passengers between June 1 and Aug. 31, topping the summer of 2007 when 217.6 million people flew, Airlines for America, the industry's trade and lobbying group, predicted Monday. That figure includes 31 million travelers on international flights, also a record.

On average, there will be 2.4 million passengers a day, 4.5 percent more than last summer.

After several years of limiting their expansion, U.S. airlines are now quickly adding more seats, including 4.6 percent more this summer. Those added seats are mostly the result of airlines flying larger planes and packing in extra rows to existing jets.

Those extra seats have given pause to some Wall Street analysts who worry that airlines might have to discount fares to fill them. That hasn't happened yet, but after years of steadily rising airfares, there is a tiny bit of relief for fliers this summer -- $2.01 in savings to be exact.

The average round-trip domestic ticket this summer, including taxes, now stands at $454, down less than a percent from last summer. Vacationers to Europe will fare better, with the average ticket down 3 percent to $1,619, about $50 less than last summer, according to Airlines Reporting Corp., which processes ticket transactions for airlines and travel agencies.

Summer can be one of the most difficult times to fly. While airlines can plan days in advance for blizzards, it is hard to know exactly when a thunderstorm will roll through an airport, shutting down all baggage handling and flights. Add into that extremely crowded airports: 13 of the 15 busiest days to travel fall in the summer, according to the airline trade group.

Passengers on planes aren't going to have much spare space.

Last July, U.S. airlines sold a record 87.8 percent of seats on domestic flights, according to the Bureau of Transportation Statics. And that figure does include seats occupied by airline employees flying for free. In other words: virtually every seat was taken.

Permalink | Email this | Linking Blogs | Comments

↧

Dog Food Company Recalls Product Over Salmonella Fears

May 18, 2015, 6:06 am

≫ Next: Feds to Hold Hearing on Fiat Chrysler Recall Compliance

≪ Previous: Summer Skies: Airlines to Fly Record Number of Passengers

Filed under: Recalls, U.S. Government, Consumer Protection, Products, Pets

Portrait - Golden retriever — **Getty Images**

RANCHO SANTA MARGARITA, Calif. -- A specialty dog food company is voluntarily recalling a frozen product distributed in four states over fears of possible salmonella contamination.

The Food & Drug Administration said last week that California-based OC Raw Dog has recalled its Turkey & Produce Raw Frozen Canine Formulation.

The recalled formulations were packaged into 6½-pound Doggie Dozen Patties and 5-pound Bulk Bags with sell-by dates of Oct. 8.

The products were distributed in Colorado, Minnesota, Missouri and Pennsylvania. The food is sold through independent pet specialty retailers.

No illnesses have been reported. The FDA says pets with salmonella infections may be lethargic and have diarrhea, fever and vomiting.

Permalink | Email this | Linking Blogs | Comments

↧

Feds to Hold Hearing on Fiat Chrysler Recall Compliance

May 18, 2015, 9:05 am

≫ Next: Market Wrap: Dow, S&P Set Records as Rate-Hike Angst Ebbs

≪ Previous: Dog Food Company Recalls Product Over Salmonella Fears

Filed under: Chrysler, U.S. Government, Automotive Industry, Consumer Protection, Auto Recalls

FILE - This March 6, 2012 file photo provided by the law offices of Butler, Wooten & Fryhofer, LLP shows a burnt-out Jeep Grand Cherokee at the scene of a crash in Bainbridge, Ga. 4-year-old Remington — **Courtesy of Butler, Wooten & Fryhofer LLP via AP**A burnt-out Jeep Grand Cherokee at the scene of a crash in Bainbridge, Ga.

By TOM KRISHER and DEE-ANN DURBIN

DETROIT -- The U.S. government's highway safety agency says it will hold a rare public hearing in July to determine if Fiat Chrysler failed to notify customers and fix safety problems in 20 recalls covering more than 10 million vehicles.

Among the recalls is a contentious one covering 1.56 million Jeeps with gas tanks located behind the rear axles. The biggest involves almost 3 million cars with air bag inflators that can potentially rupture and injure a car's occupants.

The agency could order Fiat Chrysler (FCAU), formally known as FCA US LLC, to buy back or replace vehicles if it finds the company failed to fix defects, according to a statement issued Monday.

To prevent crashes, injuries and deaths, manufacturers need to fix these defects.

The National Highway Traffic Safety Administration said some consumers complained that they weren't notified of the recalls, while others said dealers lacked repair parts and didn't have service appointments available.

"To prevent crashes, injuries and deaths, manufacturers need to fix these defects," agency administrator Mark Rosekind said on a conference call.

Such public hearings occur rarely, and a single hearing for one manufacturer on multiple recalls is unprecedented, said Allan Kam, a former NHTSA enforcement attorney.

Fiat Chrysler, he said, likely wasn't giving the agency satisfactory answers in conversations before it set the hearing date. He expects the company to settle the matter before the hearing to avoid bad publicity.

NHTSA has been feuding with Fiat Chrysler for more than two years over the Jeep gas tank recall. The tanks offer little protection in a rear-end collision and are responsible for at least 75 deaths nationwide, according to agency documents.

But Rosekind told reporters that an examination of the company's recalls found a broader problem. In one recall, a recommended fix didn't work.

"It's really across the board, which is why we're looking at all 20 of them," Rosekind said. "There were already communications telling them to improve their performance, and we didn't see that direction followed."

Rare Hearing

NHTSA last scheduled a public hearing in 2012 and ordered a motorcycle maker to pay customers for the value of their vehicles in that case.

In 2011, the agency threatened a hearing about Ford Motor Co. (F) pickup trucks, but Ford recalled the trucks before the hearing could take place.

NHTSA will hold the hearing July 2. Witnesses and the automaker will be able to present evidence. The agency also ordered Fiat Chrysler to provide information on the pace of repairs of several recalls.

Chrysler said in a statement that the completion rate for all of its recalls exceeds the industry average. The company said it would cooperate fully with regulators.

In the Jeep recall, NHTSA data shows that by April Fiat Chrysler had repaired only a fraction of the Jeeps, far below the average completion rate of 75 percent in the 18 months after a recall starts. But Rosekind said Monday that the agency will not reopen the investigation that led to the Jeep recall.

Fiat Chrysler had fixed just 4 percent of the Grand Cherokees and 27 percent of the Libertys that were recalled.

Chrysler has maintained that the Jeeps are as safe as comparable vehicles built during the same time.

Permalink | Email this | Linking Blogs | Comments

↧

Market Wrap: Dow, S&P Set Records as Rate-Hike Angst Ebbs

May 18, 2015, 9:30 am

≫ Next: 13 Simple Ways to Stop Wasting Food - and Money

≪ Previous: Feds to Hold Hearing on Fiat Chrysler Recall Compliance

Filed under: Market News, Economic Indicators, European Union, Federal Reserve, Interest Rates

Dow Jones Average Closes In On Record — **Andrew Burton/Getty Images**

By Noel Randewich

NEW YORK -- The Dow Jones industrial average and S&P 500 ended at record highs Monday, helped by a rally in Apple as well as tepid economic data suggesting the Federal Reserve may wait to raise interest rates.

The Standard & Poor's 500 index (^GSPC) racked up its third straight all-time high close, gaining 6.47 points, or 0.3 percent, to end at 2,129.2 points. The Dow (^DJI) rose 26.32 points, or 0.14 percent, to end at 18,298.88, beating its previous record close of 18,288.63 from March 2.

U.S. homebuilder sentiment fell in May although most builders view market conditions as favorable, the National Association of Home Builders said Monday.

It's becoming more of the collective thought that the Fed can wait, because you really don't see any blistering growth.

Slowing economic expansion in recent months, stemming partly from a stronger dollar and sluggish wage growth, has led many investors to push back expectations about when the Fed will begin raising interest rates for the first time since 2006.

"It's becoming more of the collective thought that the Fed can wait, because you really don't see any blistering growth," said Kurt Brunner, a portfolio manager at Swarthmore Group in Philadelphia.

Apple (AAPL) shares rose 1.1 percent to $130.19 after Carl Icahn, one of the iPhone maker's top 10 shareholders, said the stock was "still dramatically undervalued" and that it should be trading at $240.

The Nasdaq composite (^IXIC) added 30.15 points, or 0.6 percent, to end at 5,078.44.

Apple's rise was the biggest factor for the rise in the three major indexes.

Seven of the 10 major S&P 500 sectors were higher, with the financial index's 0.56 percent gain leading the way.

Making Deals

Sentiment got a boost from talk of mergers and acquisitions.

Altera (ALTR) rose 5.65 percent to $46.93 after the New York Post reported the company had resumed talks with Intel on a possible deal. Intel (INTC) rose 1.24 percent.

Endo International (ENDP) fell 5.37 percent to $80.77 after the generic drugmaker said it would buy privately held Par Pharmaceutical from TPG Capital in a $8.05 billion deal.

Alibaba (BABA) fell 1.53 percent after a group of luxury goods makers sued the company Friday, contending that the Chinese e-commerce giant knowingly made it possible for counterfeiters to sell their products throughout the world.

With Monday's advances, the Dow is up 2.7 percent year to date, the S&P 500 is 3.4 percent higher and the Nasdaq is 7.2 percent stronger.

The S&P now trades at 17 times expected earnings, expensive compared to its 10-year median of 15.

Relatively light trading volume suggests recent gains may not be resilient, especially as the market approaches summer months when many on Wall Street takes time off, said Brunner.

About 5.3 billion shares changed hands on U.S. exchanges, below the 6.4 billion average this month, according to BATS Global Markets.

During the session, advancing issues outnumbered declining ones on the NYSE by 1,577 to 1,428, for a 1.10-to-1 ratio on the upside; on the Nasdaq, 1,719 issues rose and 1,014 fell for a 1.70-to-1 ratio favoring advancers.

The S&P 500 posted 34 new 52-week highs and 2 new lows; the Nasdaq composite recorded 111 new highs and 39 new lows.

-With additional reporting by Tanya Agrawal and Sweta Singh.

What to watch Tuesday:

The Commerce Department releases housing starts for April at 8:30 a.m. Eastern time.

Earnings Calendar
These selected companies are scheduled to release quarterly financial results:

Cheetah Mobile (CMCM)
Dick's Sporting Goods (DKS)
Etsy (ETSY)
Home Depot (HD)
TJX Cos. (TJX)
Vodafone Group (VOD)
Walmart Stores (WMT)

Permalink | Email this | Linking Blogs | Comments

↧

13 Simple Ways to Stop Wasting Food - and Money

May 18, 2015, 10:00 pm

≫ Next: Get Up and Succeed! 12 Influential Folks Share A.M. Rituals

≪ Previous: Market Wrap: Dow, S&P Set Records as Rate-Hike Angst Ebbs

Filed under: Consumer Goods, Food & Beverage, How to Save Money, Products, Financial Education

By Karla Bowsher

Thirty-one percent of the food produced each year in the U.S. goes uneaten, according to the latest estimates from the USDA. That translates to $161.6 billion per year -- or about $522 per person, per year. So to help you stop wasting hundreds of dollars in uneaten food each year, we've rounded up the best tips for fighting food waste.

1. Periodically Check Fridge and Freezer Temperatures

Cold temperatures cannot destroy the microorganisms that cause food to spoil, but sufficiently cold temperatures can significantly slow them down. Refrigerators should be kept at or below 40 degrees Fahrenheit, according to the U.S. Food and Drug Administration. Freezers should be kept at zero degrees.

Some experts and appliance manufacturers go colder, though. The University of Nebraska's Institute of Agriculture and Natural Resources, for example, recommends that fridge temps be set between 34 and 40 degrees. Samsung says the ideal temperature for French-door fridges is 37 degrees. The Institute of Agriculture and Natural Resources recommends that freezers be set to zero degrees, noting that food deteriorates more quickly when stored at higher temperatures.

2. Reorganize the Fridge, Freezer and Pantry

If you frequently forget about the items in the bottom of your fridge or the back of your pantry shelves, reorganize or try an organizational aid like a lazy susan. For example, a reader recently commented on the blog The Kitchn: "I was always forgetting my perishables in the veg drawers, etc. So I put the stuff that needs to be cooked on the top shelf, and the jars, nuts, flours in the produce drawers. This helped a lot."

3. Make Groceries Last Longer

Have you ever thought to keep onions in pantyhose? Or mushrooms in paper bags? Storing certain foods in certain ways can extend their life. For more easy ways to prevent food from spoiling early, check out "21 Tricks to Make Groceries Last Longer."

4. Find New Uses for Excess Food

Leftover mashed potatoes can double as a ready-made base for potato pancakes, and extra grapes can be frozen and used later as creative ice cubes in mixed drinks, for example. Flat soda can help scrub blackened pots and pans. For more fresh ideas, check out "12 Ways to Keep Good Food From Going Bad."

5. Track Your Trash

At least periodically, keep a log of all food items your household throws away. You'll become more mindful of how much food you lose to the trash can, which might help you lose less. You'll also be able to spot any patterns in the types of foods you trash. That way, you will know when to buy less of a certain food.

6. Plan Meals

Take a little time once a week to plan out one week's worth of breakfasts, lunches, dinners and snacks, or whatever meals your household eats. Then build a grocery list based on your meal plans.

7. Understand Use-By and Sell-By Dates

You don't necessarily have to toss food when its use-by date passes, and you definitely don't have to toss it when its sell-by date passes, for example. For a detailed breakdown of all food dates, check out the USDA's "Food Product Dating" fact sheet.

Use-by dates generally indicate when a food's peak freshness ends rather than when its spoiling starts. They're determined by the food manufacturer and, with the exception of infant formula, not regulated by the federal government, according to the USDA. Sell-by dates tell stores how long to display the product for sale. They are not expiration dates.

8. Read Dates on Packages

If you're buying milk, for example, don't automatically grab the jug that's closest to you. That's where stores often place the oldest jugs to ensure they're purchased first. Check the dates on the jugs behind it and buy the one with the latest date. It should last longer.

At home, keep groceries similarly ordered. So if you have multiple boxes of cereal, for example, place the newest ones in the back to remind you to use up the oldest ones first. If you have multiple loaves of bread, throw the newer one in the freezer.

9. Avoid Impulse Purchases

A few examples from "20 Surefire Ways to Slam the Breaks on Impulse Buys":

Shop your kitchen first. Check the fridge, freezer and pantry to see if you already have anything on your grocery list. If you do, cross it off your list, especially if it's perishable or you already have several on hand.
Stick to your list.
Shop solo. Kids and significant others might add unnecessary items to your cart or rush you into grabbing an item that's on your list, but not the best deal.
Don't shop hungry, angry or tired.

10. Buy in Bulk, but Share

Wholesale shopping can be a great way to save money, but it can lead to food waste in small households. So if you want to buy in bulk to save money but don't need bulk quantities, ask a friend or relative to split perishable purchases with you.

11. Shop Local

The farther away from you that food is grown or made, the older it is by the time it reaches your grocery store. So by the time you take home a food from a foreign country, for example, its "shelf life" could be significantly shorter than that of foods that were grown in your country, state or neighborhood.

This makes farmers markets ideal, but don't assume produce was grown locally just because it's sold at a farmers market. As Organic Life magazine put it in an article titled "6 Farmers' Market Scams": "There are two types of market models: real farmers' markets and 'farm markets' where buyers resell produce they bought at wholesale markets. The produce is usually not local and often comes from faraway states or other countries."

To find the real thing, look for "producer-only" markets, meaning that the farmers at the market grew the food they're selling on their own farms, explains Bill Duesing, president of the Northeast Organic Farming Association. Find out if your favorite market is producer-only by asking the director or market coordinator. And use your own judgment: If your local market is selling out-of-season produce, they're probably not local.

12. Spend Less Money on Food

If you can't help yourself from wasting food, spend less money on it. At least you'll throw away less money when you throw away food. Start with "25 Ways to Spend Less on Food."

13. Compost

If you're still letting food go to waste, or you refuse to use certain parts of foods -- like the skins of potatoes or apples -- try composting it. You'll spare a landfill, where food takes longer to break down anyway, and you'll get hearty topsoil in return. Perhaps use the soil to grow your own food. You'll save money -- and your sweat equity might make you less likely to let good food go bad.

Have any tips to add? Share them in the "Comments & discussion" section below or on our Facebook page. 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.

Permalink | Email this | Linking Blogs | Comments

↧

Get Up and Succeed! 12 Influential Folks Share A.M. Rituals

May 18, 2015, 10:00 pm

≫ Next: How to Boost Your Credit Score at Any Age

≪ Previous: 13 Simple Ways to Stop Wasting Food - and Money

Filed under: Careers, Celebrities, CEOs, Entrepreneurs, Career Change

handsome businessman walking back home from work — **DaniloAndjus**

By Jacqui Kenyon

Whether you're up-and-at-'em when day breaks or stumbling out of bed, the way you spend the morning sets the tone for the rest of the day. That's why many leaders have crafted morning rituals that maximize their energy, productivity, and creativity all day long. We asked a mix of high-profile CEOs, authors, investors, and entrepreneurs: What is your morning routine?

1. Email Begins the Day

Kara Goldin, CEO of Hint Water, wakes up at 5:30 on the dot every morning and heads directly to her inbox, which gives her a clear understanding of what the rest of the day will be like. After that, she embarks on a hike with her husband and dogs through the Marin hillside of California. "Without my hike, I feel unbalanced," she says. "I need this time to clear my head, connect with what I love, and center myself so that I can handle any challenge that might come up in the day ahead."

2. Three-Hour Commitment

Gary Vaynerchuk, cofounder and CEO of VaynerMedia, starts by catching up on the news: ESPN, Business Insider and a news aggregator called Nuzzel. Next, he communicates with his massive Twitter following: "I search my handle and try to find anything I might have missed from the night before, or even that morning, considering my European and Asian bases. I respond to as many people as possible." The most unusual aspect of his morning routine occurs in the car on the way to the office: He calls his mother, father or sister, depending on who he spoke with last. "I catch up with them. Talk to them. Just learn what they're up to. I really value those small moments."

3. Maximizing Creativity

Scott Adams, the creator of "Dilbert," says the first 20 minutes of his day are exactly the same, every day. Putting his physical body on autopilot "frees his brain for creativity." "My value is based on my best ideas in any given day, not the number of hours I work," he says. In his home office, he enjoys a delicious combo of protein bar and coffee. "I give myself this 'treat' knowing I can be trained like any other animal," he says. "And I want to train myself to enjoy waking up and being productive. (It totally works.)"

4. At First, Reflect

Billionaire John Paul DeJoria, the cofounder of Patrón tequila and Paul Mitchell hair products, starts every morning with five minutes of quiet reflection. "Doesn't matter where I'm at, which home I'm in, or what hotel room I'm visiting, the very second I wake up, I stay in bed for about five minutes and just be." During those five minutes, he tries to be truly "present" and is grateful for what he has. After that, the day begins: He examines his calendar for the day, checks in with his assistants and makes any pressing phone calls. One thing he doesn't do: Email. "I know, I've been told I'm a bit old school, but it all gets done just the way I need it to. It allows me to focus on the most important things that need my attention."

5. Five Habits

Brad Lande, head of Birchbox Man, wasn't born a morning person. After a series of life changes -- starting and selling a business, getting engaged, going on a meditation retreat, buying a home -- Lande realized that the little things, like your morning routine, can have an effect on your health and well-being. Now his morning routine has five key elements: hot water with lemon, meditation, yoga, face oil and a breakfast smoothie. "I did not arrive at them overnight," he says. "I discovered them along the way, and they have shifted my mornings from a sleepy blur to a clear awakening."

6. The Markets First

Kevin O'Leary, a "Shark Tank" investor and chairman of O'Leary Financial, wakes up at 5:45 a.m. to check the Asian and European bond markets. "Good investors don't stay in bed in North America with strings untied overseas, because if something happens in London or Tokyo while they're sleeping, everything could change," he says. After that, he works out for 45 minutes while catching up on some business TV: "Your health is one investment that is guaranteed to pay dividends." Then he's off to the office by the time the markets open at 9:30 a.m.

7. Simplicity Is Paramount

Andrew Yang, CEO of Venture for America, starts his day by pushing the dog off him. Next he'll check on his wife and son. If his son is awake, he'll spend time with him before heading to the office. If not, he hits the gym. If he needs an a.m. pick-me-up, he'll open a memo file on his phone and record three things he is thankful for. "The things I've typed on other days are still there. It's a long list. Always helps."

8. Water, Water, Water

Executive Kat Cole drinks 24 ounces of water every morning when she wakes up. Cole -- group president of Focus Brands, which includes Auntie Ann's, Carvel and Cinnabon -- picked up the habit when she was traveling in eastern Africa doing humanitarian work. "We are so lucky to have access to clean drinking water, and I think about how grateful I am for that almost every day," Cole says. Her routine also includes exercise, and often a breakfast or coffee meeting as well. "Talking, learning, and thinking with other humans creates a purposeful start to any day."

9. Consistency is a Virtue

NFL Hall-of-Famer Fran Tarkenton, founder of GoSmallBiz.com and Tarkenton Companies, says "sticking to a routine has always brought me clarity of thought, a positive mindset, and most of all, successful results for the rest of the day." Every morning he consumes a wide variety of newspapers: "I'll read every part - domestic, foreign, business, sports, even the parts that might bore me a little -- because feeding my brain is an absolutely essential part of my day," he says. "And by reading a diverse selection of papers, I get different viewpoints and different perspectives on all the things that affect me, my life, and my business." He also takes cares of his dogs, exercises a bit and eats a healthy breakfast. Each aspect of his routine makes him "more productive so that, in turn, I can do more for anyone I come in contact with throughout the day."

10. Out and Alone With the World

Cal Newport, author of "So Good They Can't Ignore You," stops only for a glass of water before heading outside with his dog. During their walk, he'll listen to audiobooks and do pull-ups at a local playground. "For me, interesting thoughts have a tendency to emerge when the rest of the world is quiet." When he arrives home, he employs a hack that allows him to stay on top of non-work productivity: He'll dedicate 20-30 minutes to household tasks, like paying bills or researching a contractor for a project. "This simple morning habit allows me to stay (reasonably) on top of these obligations while expending a minimum of energy in making decisions about what to work on and when."

11. In the Right Frame of Mind

Cheryl Bachelder, CEO of Popeyes, is a self-professed night owl, so she has a designed a morning routine that gets her "in the right frame of mind for the day." She starts her day with music, a tradition she has continued from childhood, which gives her purpose and reminds her of her family.
Bachelder also reads and writs on her blog. "To have the energy to lead, we need to be restored and prepared before we get to the workplace," she says. "When I honor these routines, it makes a big difference in the day."

12. The Routine Starts the Night Before

Nir Eyal, author of "Hooked: How to Build Habit-Forming Products," says "sticking to a morning routine improves the work I do and the life I live." And it starts the previous night: A timer shuts off his Internet connection at 10 p.m., and he charges his phone outside of his bedroom. This gives him more time to spend with his wife, and ensures that he gets to bed at a reasonable hour.

Permalink | Email this | Linking Blogs | Comments

↧

How to Boost Your Credit Score at Any Age

May 18, 2015, 10:00 pm

≫ Next: 4 Ways That Credit Cards Will Change by 2020

≪ Previous: Get Up and Succeed! 12 Influential Folks Share A.M. Rituals

Filed under: Credit, Credit History, Credit Score

By Karla Bowsher

Improving your credit score can be more arduous at certain points in life -- and inspires different approaches. CBS News -- with the help of Credit Karma -- has broken down average credit score by age, and the options for improving a credit score. We've added our advice and directed you to the parts of our Solution Center that can help you with your credit.

In Your 20s

Average credit score: 635.
What to do about it: Get a credit card without annual fees as soon as you can, which our Solutions Center's Finding the Perfect Plastic page can help you do. "Ask Stacy: How Can I Get Credit Without Credit?" can also help. Then, pay off the bills on time every month and get another card after a few months of responsibly managing the first one. Having multiple cards builds up your "payment history" score category, which constitutes 35 percent of your FICO score.

In Your 30s

Average credit score: 645 to 646.
What to do about it: Continue paying off credit card bills on time every month and monitor your credit score carefully. In truth, this advice applies to your credit score at any age. Don't apply for any other credit for at least six months before applying for any big loans like a mortgage, Greg Lull -- Credit Karma head of consumer insight -- told CBS.

In Your 40s

Average score: 648 to 657.
What to do about it: If you've built up a couple of decades of credit history responsibly, consider refinancing higher-interest loans to secure a better rate. Our Solutions Center can help you find the best rate on loans like mortgages, car loans and personal loans.

In Your 50s

Average score: 671 to 685.
What to do about it: If you have multiple credit card accounts, focus on the one or two that offer the best cash back or rewards. AS CBS reported: "There's no downside to leaving no-fee cards outstanding, but you have enough credit history that it's not going to hurt you if you cancel a credit card or two that charges an annual fee."

In and beyond your 60s

Average score: 699 to 712 for consumers in their 60s, 728 for consumers in their late 70s.
What to do about it: Resist the temptation to use your high credit score to take on more debt than you can afford. Chances are, you are in a situation where you are living off a decreasing income or limited retirement savings. According to CBS: "Once you're living on a fixed income from pensions, savings and Social Security, it's a good idea to be paying down those debts."

How does your credit score measure up to the average score for your age bracket? Let us know in a comment below or on our Facebook page. 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.

Permalink | Email this | Linking Blogs | Comments

↧

4 Ways That Credit Cards Will Change by 2020

May 18, 2015, 10:00 pm

≫ Next: Why Financial Advisers Can Be Worth the Fees

≪ Previous: How to Boost Your Credit Score at Any Age

Filed under: Credit, Personal Finance, Credit Cards, Shopping

It's hard to believe how some things have changed during our lifetime. Not long ago, we used to hurry home to watch our favorite shows on low-definition televisions, but now we stream high-def programing on demand through the Internet onto any device with a screen. In addition, we now have our choice of dozens of hybrid and electric cars that don't quite drive themselves yet, but may just do so in the not-too-distant future. Given the fantastic pace of innovation, what might we expect from our credit cards in the next five years?

1. Chip and PIN Everywhere

While 2015 will be the year that most merchants in the United States adopt smart-chip compatible terminals, the technological migration away from from magnetic stripes still has a way to go. Nearly all card issuers and merchants are just now using the chip-and-signature implementation, which just replaces the magnetic stripe with a more advanced microchip. So if someone steals your credit card, it can still be used fraudulently. The next step is to migrate to the chip-and-PIN standard, already in use in Europe and several other parts of the world. Only when credit card transactions require the input of a personal identification number (as ATM transactions do now) will we truly reach the next level of security.

2. One Card Fits All

There are currently several companies vying to introduce a single credit card that will store and transmit the information from all of your accounts. Right now, these cards cost more than $100 apiece, and none has proved itself in the marketplace. But cardholders can expect that the quality of these devices will rapidly improve while the price falls to a level considered to be an affordable, or perhaps even negligible, expense.

3. A Standardized Smartphone Protocol for Credit Cards

When it introduced Apple Pay, Apple made prominent the idea that we could make payments with our mobile devices. Nevertheless, the adoption of the iPhone and the Apple Pay standard has been far from universal. So it seems logical that the next step in the evolution of mobile payments will be an industrywide technological standard, rather than a proprietary one, much like the EMV smart chip and the magnetic stripe that came before it.

4. Taking the Card Out of Credit

You don't carry around a plastic card that represents your savings account or investments, so why do you need a physical object to represent your line of credit? The purpose of the credit card itself is to authenticate the transaction, and it isn't very good at that. Since credit cards can be lost, stolen, damaged, or just left at home, perhaps the ultimate solution will be to carry no credit card at all. Inexpensive fingerprint readers, like the ones in every new iPhone, could be easily included in merchant terminals, allowing us to leave our cards at home. When shopping over the phone or online, our devices could store and transmit our account information, making the plastic credit card itself into a relic of past.

Jason Steele has been writing about credit cards and personal finance since 2008. In his free time, he is a commercial pilot. He graduated from the University of Delaware with a degree in History. More

Permalink | Email this | Linking Blogs | Comments

↧

Why Financial Advisers Can Be Worth the Fees

May 18, 2015, 10:00 pm

≫ Next: 3 Tips to Create a Millennial Retirement Guide

≪ Previous: 4 Ways That Credit Cards Will Change by 2020

Filed under: Personal Finance, Financial Services, Financial Advisors, Financial Education

Parents and son talking with financial advisor — **Getty Images**

By David Ning

I am a do-it-yourself index investor. Aside from the fact that no one else cares about my wealth more than I do, keeping up with the day-to-day tasks is a hobby that pays me. I like managing my own investments, and I get to keep the fees that a financial adviser would charge to manage my money.

Still, I often suggest that others seek out a competent adviser for their financial management needs. While some people who call themselves financial advisers are really investment salesmen in disguise, others will be able to guide you to appropriate investments and manage them. Here are a few reasons paying a financial adviser could improve your finances.

An adviser will keep you from selling in a panic. Money can bring out the worst emotions in us. Staying the course when the market is down is one of the biggest keys to creating long-term wealth. Panicking and selling at the worst possible time will lock in your losses and prevent you from participating in the subsequent recovery. An adviser can help to talk you out of withdrawing everything when times are tough and help you to look at the situation logically. Part of an adviser's job is to offer council and act as a voice of reason when emotions run high.
An adviser can help you plan. How much to save, what asset allocation mix is right for you, when to start taking money out and how much you can safely withdraw are just some of the items your adviser should be able to address. Even if you can do these calculations on your own, an adviser can push you to get them accomplished earlier and double-check your assumptions.
An adviser can offer a second opinion. Managing money can be lonely, because talking about the subject is so taboo. But the stakes are high, because one decision can end up costing a significant amount of money. With an adviser who is already familiar with your situation, there's another experienced person to strategize with.
An adviser can give you investment suggestions. When new innovations hit the investment marketplace, your adviser can do the research for you and let you know if it suits your situation. He or she can also offer connections if you need different but related services. For example, you might need estate planning or tax help. Your adviser is likely to know someone who can help you, making your selection process more efficient.
A third party's validation can help your spouse feel better about your investment decisions. Investing is about odds, and some investments will turn out to be less than ideal. These losses can create a lot of tension if your spouse isn't on board with the overall plan. An advisor can provide confirmation and confidence in the strategy when needed, which can help ease some situations.
There's another person familiar with your financials if you pass away. While managing money myself has been a profitable route for our family, this strategy will no longer work if I get into an accident and can no longer manage everything. I can write out specific instructions, but it would still be extremely difficult for my wife to follow and pick up where I left off. The situation would be greatly improved by an adviser. Even though I might still be pretty hands-on, the adviser would know exactly why I own certain investments and keep records of all the investment accounts under our names. My wife can also easily obtain all the information necessary to continue the arrangement without a hiccup if necessary.

Hiring a financial adviser can be costly, even if you are lucky enough to avoid all the bad apples in the industry. But for many people, it's the right choice to make because their services can provide crucial help building wealth.

-David Ning is the founder of MoneyNing.com.

Permalink | Email this | Linking Blogs | Comments

↧

3 Tips to Create a Millennial Retirement Guide

May 18, 2015, 10:00 pm

≫ Next: Walmart Profit Falls on Pay Raises, Currency Shifts

≪ Previous: Why Financial Advisers Can Be Worth the Fees

Filed under: Retirement, Retirement Plans, 401K, IRA, Roth IRA

Cash in a jar marked 401k — **Getty Images**

Anytime I talk to millennials, the farthest thing from their minds financially is saving for retirement. Most of them are calculating how to pay down debt while also still being able to afford their monthly Uber, Amazon or Netflix charges. The logic of putting money into a retirement account that you can't touch for 50 years versus paying off current living expenses is a tough notion to get your head around, especially if you are earning an entry-level salary.

For starters, don't set yourself up to live from paycheck to paycheck. Get a job before an apartment and make sure the rent and utilities don't exceed 30 percent of your after tax income. If not, you'll keep digging yourself into a financial hole. Paying for more than you can truly afford will have you feeling anxious, guilty and overworked. Of course, it's a dream to be living in a spacious one-bedroom apartment in Greenwich Village. Except that apartment will come with a $2,500 price tag and be located on the top floor of a five-floor walk-up. Living on your own in New York City after four years dealing with roommates sounds like heaven. Except unless you're in investment banking or a tech developer it'll be nearly impossible to make that happen. Unless you have no other expenses and are happy only eating 99 cent pizza and cup of soup for meals. Get a roommate and live in a less expensive area of your city. Isn't it better to have roommates now while you are just starting out rather than in your 40s and 50s?

Don't Ignore Retirement: Most millennials tend to look the other way when it comes to retirement. As a generation, they've succeeded in pushing the clock back ... temporarily. They are making high-level purchases later on like buying cars and homes. They are also getting married at older ages and having kids much later in life than former generations. The biggest life milestone millennials are pushing back is setting up a retirement nest egg. Millennials are spending beyond their means and are living paycheck to paycheck more frequently than any other generation. According to the Bank of America/USA Today Better Money Habits Report, more than half of them live paycheck to paycheck.

Make a Plan and be Accountable: There is no denying that millennials are in a worse financial state than their parents. A shaky economy, diminishing Social Security rates, lack of job security and decreasing 401K match programs all negatively affect a millennial's retirement platform. Long gone are the days when loyal employees spent forty years at a single company and received a pension as a reward for good behavior. The pension is no longer a viable option for retirement unless you work for the city government. Professionals are jumping from company to company, gaining new skills, responsibilities and often a higher salary.

Understand the ABC's of 401(k)s. The first thing you need to ask, "Does my company have a 401(k) program and do they match it?" If it does, lucky you! You better sign up quick for both -- especially if they match. You'll be throwing away free money if you don't. That's like winning the lottery but never collecting your check. Of those surveyed, 43% have contributed to a 401(k) program, according to the Better Money Habits Report. If your company doesn't have a retirement plan in place, sign up for an IRA or Roth IRA. How do they differ? With an IRA, you will be taxed once you withdraw the funds when you retire. A Roth IRA will be taxed as soon as you open an account (and each time you contribute). The highest amount you can put in annually is $5,500. Go to your local bank and set up an account this week. Don't let it slide. Jump start 2015 by opening an account up today. Even if you think you can only put in a few hundred dollars yearly -- it'll still be more than zero. It'll also help you set up a pattern to save and hopefully budget out more cash for next year's contribution.

You might be thinking that this all sounds great, but you just don't have the extra dollars to make saving for retirement a current reality. Don't make excuses -- you are only sabotaging yourself. Think of your weekly guilty pleasures: the Venti Latte or the second glass of wine with dinner. There are items you can weed out or thin down. Downsize your Starbucks coffee order to a $1.75 tall brew coffee from a $3.45 latte and you'll save $621.25 a year. If you removed your daily coffee habit altogether you could save $1,239.25. Instead of spending your salary on designer shoes, pricey restaurants or high rent -- invest in yourself and put money towards your financial future. Stop living with financial regret.

Permalink | Email this | Linking Blogs | Comments

↧

Walmart Profit Falls on Pay Raises, Currency Shifts

May 19, 2015, 1:13 am

≫ Next: Robust Housing Starts Data Offers Hope for 2Q Growth

≪ Previous: 3 Tips to Create a Millennial Retirement Guide

Filed under: Company News, Earnings, Retail, Labor, Wal-Mart

By ANNE D'INNOCENZIO

BENTONVILLE, Ark. -- Walmart Stores (WMT) reported sluggish sales and a 7 percent drop in first-quarter profit as worker pay raises, spending on e-commerce and currency fluctuations put pressure on the bottom line at the world's largest retailer.

The company also reported a 1.1 percent increase for a key sales measure at its U.S. Walmart stores, its third consecutive quarter of increases. However, that growth came below analyst expectations.

Walmart's profit and total sales missed Wall Street estimates. The weakness adds to questions about the health of consumer spending. The latest government retail sales figures showed spending was flat in April, and Macy's (M), Kohl's (KSS) and J.C. Penney (JCP) announced disappointing results despite low gas prices and improvements in the job market.

The retail industry also is battling temporary issues, such as the labor dispute at West Coast ports that delayed shipments of merchandise.

Walmart itself is a barometer of consumer spending. Its challenges reflect the struggles of its low-income shoppers, who are being squeezed by stagnant wages and higher living costs. Walmart pointed out that its customers were either pocketing tax refunds and their savings from lower gas prices, or using them to pay pay down debt or bills like utilities.

Walmart also is facing fierce competition from the likes of online king Amazon.com (AMZN), dollar stores and grocers. It's also dealing with a shift among shoppers seeking the convenience of small stores or buying on their mobile devices and PCs.

In response, Walmart is rapidly opening smaller stores. It is also increasing its spending for its online operations to between $1.2 billion and $1.5 billion this year, up from $1 billion last year. It announced last week it was testing an unlimited free-shipping service for $50 a year, undercutting Amazon's popular Amazon Prime, whose annual dues are $99.

In Walmart's U.S. division, the company is trying to improve it selection and customer service, while making sure it has the lowest prices. Walmart is also aiming to improve the freshness of its produce.

The company expects to see improved results by the holiday season, according to Greg Foran, who had been president and CEO of Walmart Asia and took over Walmart's U.S. business last summer.

Higher Wages

As part of the strategy, the company raised the minimum wages for its hourly workers to $9 an hour in April. By February, all hourly workers will make at least $10 an hour.

That comes at a cost. It's part of a $1 billion investment in its workforce that also includes improved training.

Walmart is hoping that by investing in its people, Walmart will improve customer service, resulting in higher sales.

"We're not interested in reaching our goals, but reaching them in a way which is sustainable for the long term," Foran said. "This requires a steady execution, a pace that is fast but calculated, and one that allows us to get it right."

But such investments are squeezing profits in the short term.

Quarterly Results

Walmart said that net income was $3.34 billion, or $1.03 a share, for the three months that ended April 30. That compares with $3.59 billion, or $1.11 a share, a year earlier. Net revenue was down slightly to $114 billion, from $114.2 billion in the year-ago quarter. Analysts were expecting $1.04 a share and revenue of $116.27 billion, according to Zacks Investment Research.

By division, the U.S. Walmart division, which accounts for 60 percent of total sales, had a 3.5 percent increase in sales to $70.2 billion. Its Sam's Club division had a 3 percent decline in revenue to $13.5 billion. And its international division saw a 6.6 percent decline in sales to $30.3 billion. The company is focusing on improving its business in Brazil, China and Mexico.

Walmart said that its smaller Neighborhood Markets, which are a quarter of the size of a typical Walmart supercenter and focus on groceries, enjoyed a 7.9 percent increase in sales at stores open a least a year.

Walmart shares have declined roughly 7 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed slightly more than 3 percent. The stock has risen almost 4 percent in the last 12 months.

Shares fell $1.87, or 2.3 percent to $78.05 in premarket trading.

Permalink | Email this | Linking Blogs | Comments

↧

Latest Images