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7 Worst Wedding Gifts: Something Blue, Someone Blew It

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By Cameron Huddleston

You probably want to give your friends and family members who are getting married something nice, but you don't want to break your budget doing so. And you certainly don't want to end up buying the couple something they'll never use, will return to the store or laugh about for years to come.

You don't want your gift to be "that" gift -- the one people deem the worst they received, joke about it with other friends and roll their eyes every time they come across it in the back of their closet, garage or attic.

In general, it's best to stick to a couple's gift registry because those are the items they have chosen, says Trae Bodge, a shopping expert and senior editor of RetailMeNot. But if the couple didn't register or you can't afford most of the items on the registry, you might have to pick something on your own. To avoid wasting money on a bad wedding present, here are several items you should not buy:

 

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Try Quitting Amazon Prime. Bet You Can't

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www.amazon.com
Pop quiz time! Amazon Prime is like which of the following?
  1. The Eagles' "Hotel California," because you can check out anytime you want, but you can never leave.
  2. Flypaper.
  3. Black Flag's Roach Motel cockroach bait trap because folks check in, but they don't check out.
  4. All of the above.
The answer's obvious to anyone who has tried Amazon.com's (AMZN) loyalty shopping program where consumers pay $99 a year for unlimited two-day shipping of Amazon-warehoused merchandise, among other perks. Whether it's a supernatural hold or a mortal adhesive, once you sign up for Amazon Prime, you're pretty much happy to be stuck.

Amazon has never spelled out how many of its customers pay for Prime. All that we know is that it has "tens of millions," and a graph shown during last week's Fire smartphone media event showed that growth itself is accelerating at a freakish pace in recent years. Amazon has made Prime an indispensable service, and the leading online retailer has made it a success in a pretty ingenious way.

Plugging the Leaky Bucket

Before unveiling the e-tailer's first proprietary smartphone last week, Amazon founder and CEO Jeff Bezos talked up Amazon Prime. "You can fill a bucket with an eyedropper, if the bucket doesn't leak," he said before going on to explain that Amazon Prime is the bucket that doesn't leak. Without giving numbers, Bezos made it clear that once folks try Prime, they don't cancel.

It's the sticky nature of Prime that likely made Amazon comfortable in boosting the annual price from $79 to $99 earlier this year. Anymore, it's not just about the two-day shipping at no additional cost. While certainly that's important for a company that ships billions of boxes each year. Yes, billions.

However, in a neat twist, Amazon has made Prime sticky even for people who are starting to wean themselves off physical shipments. Prime also includes access to a growing catalog of streaming videos (40,000 titles), monthly Kindle e-book rentals (350,000 books) and with this month's debut of Prime Music, 1.2 million songs for streaming.

Digital Divide

Amazon is brilliant. It went from being the company that sold books, movies and CDs to one that offers all three of those categories in digital form at no additional cost beyond $99 a year.

It would make it easier to assess Prime if Amazon told us how many people are signed up. However, we still get a strong metric every quarter when Amazon updates the market on its overall financial performance.

Net sales climbed 22 percent to $74.45 billion last year, and analysts see sales climbing another 22 percent to $90.8 billion this year. You don't see retailers ringing up tens of billions in sales growing this quickly, but you don't have any other retailers of this size with a captive hold on tens of millions of shoppers with its sticky Prime program.

Once folks sign up for Prime, every shopping decision begins at Amazon.com. Now that Amazon is building up its digital ecosystem, it's also covered for the future in a way that most traditional retailers can only dream about.

Amazon has you exactly where it wants you in the Prime of its life.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com. Check out what Motley Fool analysts have to say about the next company that will revolutionize the way the world shops and interacts with its favorite brands every day in this new free report.

 

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N.Y. Attorney General Accuses Barclays of 'Dark Pool' Fraud

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N.Y. Attorney General Accuses Barclays of Dark Pool Fraud
Simon Dawson/Bloomberg via Getty Images Barclays CEO Antony Jenkins
By Karen Freifeld and John McCrank

NEW YORK-- The New York state attorney general has filed a securities fraud lawsuit against Barclays , accusing the British bank of giving an unfair edge in the United States to high-frequency trading clients even as it claimed to be protecting other customers from such traders.

The lawsuit, which relates to Barclays' LX Liquidity Cross "dark pool" alternative trading system, alleges that the bank promised to get the best possible prices for customers looking to buy or sell shares but instead took steps that maximized the bank's profits and executed nearly all of its customers' stock orders on LX instead of on exchanges or other venues that might have offered better prices.

The New York Attorney General's action is the highest profile case yet to emerge in the U.S. authorities' efforts to ensure that dealers aren't ripping off investors in increasingly automated stock markets.

These probes have been progressing for up to a year, but took on additional urgency in recent months, after best-selling author Michael Lewis released the book "Flash Boys: A Wall Street Revolt," which contends that markets were rigged.

Dark pools were originally created to allow investors to execute big trades without tipping off the market. But ever-larger volumes of trades have been shunted into dark pools and their critics say the opacity of the markets may be resulting in more and more investors getting ripped off.

Barclays' London-listed shares were down 4.5 percent at 219.65 pence by 0753 GMT (3:53 a.m. Eastern time) on Thursday, their lowest level since November 2012 and extending their fall this year to 20 percent.

The lawsuit delivers another blow to Chief Executive Officer Antony Jenkins' efforts to restore the bank's reputation after a series of scandals. He has said its culture, which has been criticized as high-risk, high-reward, had to change and that systems and controls are improving, but the emergence of past sins are hampering his efforts.

New York Attorney General Eric Schneiderman said Barclays told customers who chose to trade in its dark pool that they would be protected from "predatory traders," which use their speed advantage to deprive other investors of small profits on every trade. But in fact customers weren't protected at all, and the bank in fact courted predatory high-frequency traders in part by charging them virtually nothing, Schneiderman alleged.

"Barclays grew its dark pool by telling investors they were diving into safe waters," Schneiderman said. "Barclays' dark pool was full of predators -- there at Barclays' invitation."

"We take these allegations very seriously," Barclays said in an emailed statement. It added that it was cooperating with the authorities, looking at the matter internally, and that the integrity of markets was a top priority for the bank.

Schneiderman is looking at dark pools, which are typically owned by brokers, including all of the big banks, and where participants are anonymous and trading information is hidden until after the trades are completed.

The U.S. Securities and Exchange Commission has also taken an increased interest in issues surrounding dark pools and high-frequency trading. SEC Chair Mary Jo White earlier this month said her agency was developing a series of rules that would seek to make markets more transparent and fair for all investors, and the agency has also stepped up enforcement actions against dark pool operators.

Banks have admitted to bad behavior in other markets, after probes showed collusion in currency trading and short-term interest rate products, among other areas.

No Air Bag, No Brakes

Jenkins took over as Barclays chief executive in August 2012, replacing Bob Diamond who was ousted after the bank was fined for the alleged manipulation of Libor benchmark interest rates.

Jenkins is trying to improve profitability by cutting costs, including the axing of around a quarter of investment bank jobs, while pushing for the change in culture.

But the bank continues to be dogged by issues around past conduct, however, and last month it was fined 26 million pounds ($43.8 million) for past failures in internal controls that allowed a trader to manipulate the setting of gold prices.

The New York Attorney General's complaint against Barclays, which is based on internal communications provided by former employees, says while the firm told its clients it would keep high-frequency traders that engage in "predatory" trading practices out of its dark pool it never actually prevented any trader from participating.

For example the complaint alleged that Barclays falsified marketing material it said showed the extent and type of high-frequency traders in its dark pool by not including high-frequency trading firm Tradebot Systems. Barclays had already identified Tradebot, which at the time was the largest participant in the dark pool, as having been engaged in aggressive trading behavior.

A spokeswoman for Tradebot, of Kansas City, Missouri, said the firm had no comment.

Barclays wooed high-frequency traders by disclosing detailed, sensitive information about other customers to the firms to help ensure their aggressive trading strategies were effective, and by charging them almost nothing, the complaint said. HFT accounts for around half of all U.S. trading volume.

The complaint didn't specify the amount of damages being sought from Barclays.

Barclays also told its clients it doesn't favor its own dark pool when routing client orders to trading venues, when in reality it was doing just that, the complaint said. One former Barclays employee told the Attorney General's office that based on the high amount of client orders Barclays was sending to its own dark pool, better trading opportunities may have been missed elsewhere.

There was a lot going on in the dark pool that was not in the best interests of Barclays clients, one former director said, according to the complaint. "The practice of almost ensuring that every counterparty would be a high-frequency firm, it seems to me that that wouldn't be in the best interest of their clients ... It's almost like they are building a car and saying it has an air bag and there is no air bag or brakes."

The SEC is considering forcing dark pools and firms that match customers' orders internally to tell regulators and the public how they operate. In early June, the SEC filed a civil lawsuit against dark pool operator Liquidnet for allegedly improperly using its subscribers' confidential trading information to market its services.

The SEC declined to comment on the lawsuit.

-Additional reporting by Herb Lash in New York and Steve Slater in London.

 

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With Aereo Dead, What's Next for Internet TV?

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Aereo/AP
By RYAN NAKASHIMA

LOS ANGELES -- Just because Aereo's business model has been shot down by the Supreme Court, that doesn't mean customers' desire for a better TV experience has gone away.

People are still fed up with huge channel bundles, high prices, poor service and the lack of ability to watch all their shows on all their devices. That's part of why Aereo was attractive: It offered local broadcast channels and a few others on multiple devices for just $8 a month.

Industry watchers say the pay TV business must continue to evolve to win over unhappy customers, even if the nation's top court said grabbing signals from the airwaves and distributing them online without content-owner permission isn't the way.

"Even without Aereo, the reason people were cutting the cord, for cost reasons and so on, those don't go away," said Robin Flynn, an analyst with market research firm SNL Kagan.

Last year, the number of pay TV subscribers in the U.S. fell for the first time, slipping 0.1 percent to 94.6 million, according to Leichtman Research Group.

Into that breach have leapt companies that have offered quality TV content online for low cost, including Netflix (NFLX) and Amazon.com (AMZN). Hulu, which is owned by major broadcast networks ABC (DIS), NBC and Fox (FOX), offers full episodes of popular shows like "The Colbert Report" the next day for free.

While that's not live TV, which Aereo offered, for many it's a good-enough substitute.

The decision against Aereo is a setback, but not a fatal one for people who want to break away from traditional TV, said Bill Niemeyer, senior analyst at TDG Research.

"While the content on the major broadcast networks is very important for some people, it's not important for everyone," Niemeyer said. "So it's a dent, but I don't think it's going to significantly change the trends."

If anything, the rise and fall of Aereo has highlighted an important fact -- that high-quality TV signals are available on the airwaves for free -- something that might have been forgotten if Aereo hadn't insisted that its technology simply replicates the antenna and wire that an average person could set up on their own.

"What Aereo has really done in our perspective is to address the lack of understanding that over-the-air is free," said Mark Buff, CEO of Mohu, a company that makes flat indoor antennas that attach to walls.

Mohu has sold 1.5 million antennas since it began in 2011 and they work in the kind of dense urban areas like New York where Aereo is believed to have had a small subscriber base. It is about to launch Mohu Channels, a device that blends Internet video services like Netflix with free-to-air TV in a single channel guide.

"We certainly do see and believe that the cord-cutting movement is on the rise," he said.

Alki David, the CEO of online streaming company FilmOn, said the Supreme Court's ruling actually creates an opportunity for startups because the court said that Aereo bears an "overwhelming likeness" to cable companies.

According to David, that means online video companies can compel broadcasters to license their TV signals under the "retransmission consent" rules outlined in the 1976 Copyright Act.

That could help online video companies create small broadcast-channel only bundles for consumers rather than 100-plus channel packages from traditional pay TV operators that cost more than what some consumers are willing to pay.

"This might be the undoing of the bundling system," David said. "The only compulsory license we're after are the four or five local channels in the city we're in. Of course it would be great. What else can it mean?"

But it's not like the pay TV industry is standing still.

Satellite-TV company Dish Network (DISH) said it's preparing to launch an online TV service with channels such as ESPN, ABC, Disney Channel and others for about $20 to $30 a month before the end of the year. The target audience is young urban professionals who don't want to watch more than 20 or 30 channels.

Since last year, Comcast (CMCSA) has offered a slimmed down package combining Internet service, a little more than 10 local TV channels and HBO for $40 a month for 12 months. That's just $10 more than getting the Internet alone.

Niemeyer says the incremental $10 charge for broadcast TV and HBO seems like a very Aereo-like offering, especially because the HBO GO app allows for online viewing, and having a pay TV subscription will allow customers to sign in to different online offerings by networks.

"It's something they wouldn't have done five years ago, but they're doing it," he said. "I think they're trying to think long-term about how to still be a big-dollar business. It means they have to change. They have to change on channel bundling, how they deliver services to people, using what pipes and how."


Aereo Loses Supreme Court Case as Justices Side with Broadcasters

 

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Google Removes First Search Results After EU Ruling

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Belgium EU Google
Paul Sakuma/AP
By Julia Fioretti

BRUSSELS -- Google (GOOG) has begun removing some search results to comply with a European Union ruling upholding citizens' right to have objectionable personal information about them hidden in search engines.

The so-called "right to be forgotten" was upheld by Europe's top court on May 13 when it ordered Google to remove a link to a 15-year-old newspaper article about a Spanish man's bankruptcy.

"This week we're starting to take action on removals requests that we've received," a Google spokesman said Thursday. "This is a new process for us. Each request has to be assessed individually and we're working as quickly as possible to get through the queue."

Google received over 41,000 requests over four days after it put up an online form allowing Europeans to request that search results be removed.

Internet privacy concerns shot up the agenda last year when former U.S. National Security Agency contractor Edward Snowden revealed details of mass U.S. surveillance programs involving European citizens and some heads of state.

The EU executive has been critical of several major U.S. web companies, such as Facebook and Google, over their handling of swathes of personal data. National governments recently moved towards extending Europe's strict data protection rules to all companies, not just European ones.


Google's 'Right to Be Forgotten' Web Page Goes Live

 

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Money Minute: Facebook's 'Depressing' Lack of Diversity

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Facebook just came out with its staffing report and Chief Operating Officer Sheryl Sandberg would have to agree it's "pretty depressing."

Facebook (FB) is the latest tech giant to release its diversity or lack of diversity statistics. Almost 70 percent of Facebook's employees are men and 57 percent are white. Asians represent 37 percent of the company but Hispanics only account for 4 percent of staff and African Americans account for 2 percent. Tech companies like Google (GOOG), LinkedIn (LNKD) and Yahoo (YHOO) have become more forthright about their diversity statistics only recently under pressure from civil rights activist Jesse Jackson and the reports so far have shown a distinct lack of diversity in Silicon Valley. Facebook says it has formed partnerships with groups to find more women and minorities to add to its staff.

Network news is about to lose its only remaining female anchor. Diane Sawyer will be stepping down from the anchor seat at ABC's World NewsTonight as of August. Fill-in anchor, David Muir, will take her spot. It is just one part of a major staffing shuffle at ABC News, a unit of Disney (DIS). George Stephanopoulos will become the lead anchor for breaking news and election night effectively outranking Muir. Sawyer will continue at ABC doing investigative pieces and high profile interviews -- a role once reserved for ABC's Barbara Walters who retired from the network earlier this year.

Here on Wall Street on Wednesday, stocks marched higher with the Dow Jones industrial average (^DJI) gaining 49 points, the Nasdaq composite (^IXIC) adding 29 points and the the Standard & Poor's 500 index (^GPSC) up 9 points.

In its ongoing crackdown on high-frequency trading the New York State Attorney General's office is suing Barclays for allegedly misleading investors about high frequency traders in its so called "dark pools" -- off-exchange venues where institutional investors like to make big trades away from the public eye in the hope of avoiding having part of their buy or sell order picked off before the entire trade is completed. But the AG says Barclays actively sought to attract high-frequency traders in its dark pools. In a statement it said, "Barclays' dark pool was full of predators -- there at Barclays' invitation."

And finally, GoPro is ready for its closeup today. The company is going public trading on the Nasdaq under the ticker GPRO. Shares priced on the high end of its range at $24 apiece. The company raised $427 million in the offering. Demand was hot and it's no surprise. According to its filing, GoPros were the No. 1 selling camcorders in the U.S. in 2013.

-Produced by Karina Huber.

 

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Consumer Spending Ticks Up; Jobless Claims Tick Down

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Consumer Spending
Sarah Bentham/AP
By Lucia Mutikani

WASHINGTON -- U.S. consumer spending rose less than expected in May, likely held back by weak health care spending, which could prompt economists to temper their second-quarter growth estimates.

The Commerce Department said Thursday consumer spending increased 0.2 percent after being flat in April. Spending, which accounts for more than two-thirds of U.S. economic activity, had been forecast rising 0.4 percent.

When adjusted for inflation, consumer spending fell for a second straight month, suggesting spending this quarter could struggle to regain momentum after growing at its slowest pace in nearly five years in the first quarter.

Spending in May was probably constrained by weak health care spending as outlays on services barely rose for a second month. Spending on automobiles surged, accounting for more than half of the rise in durable goods outlays.

U.S. Treasury debt prices rose on the data while the dollar trimmed gains.

Reports on employment to manufacturing and the services industries suggest the economy has rebounded after sinking in the January-March period, but the spending data indicated that growth would probably fall short of expectations.

"The consumer spending number is not enough of an acceleration to give confidence to large second-quarter GDP rebound numbers," said Alan Ruskin, global head of G10 foreign exchange strategy at Deutsche Bank (DB) in New York.

Second-quarter growth estimates have ranged as high as a 4 percent annual pace. The economy contracted at a 2.9 percent pace in the first quarter, the worst performance in five years.

In a separate report, the Labor Department said new applications for state unemployment benefits slipped 2,000 to a seasonally adjusted 312,000 for the week ended June 21.

The declining claims suggest a recent streak of payroll job gains above 200,000, is likely to be sustained, lending the economy enough momentum for inflation to start perking up.

Inflation Ticking Up

A price index for consumer spending increased 0.2 percent in May, rising by the same margin for a third consecutive month.

In the 12 months through May, the personal consumption expenditures price index was up 1.8 percent, the largest gain since October 2012. It had advanced 1.6 percent April and should comfort Federal Reserve officials concerned about price pressures being too low.

Excluding food and energy, prices also posted a 0.2 percent gain. That followed a similar increase in April. The so-called core PCE price index increased 1.5 percent from a year ago.

That was the biggest increase since February last year and followed a 1.4 percent rise in April.

Both inflation measures still remain below the Fed's 2 percent inflation target.

Inflation, which has been depressed by weak medical care costs and sluggish wage growth, is being watched for clues on the timing of the central bank's first interest rate hike.

The Fed, which is scaling back the amount of money it is pumping into the economy through monthly bond purchases, has kept its benchmark lending rate near zero since December 2008.

 

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This Household Item Will Save You Big -- Savings Experiment

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A Solution for 3 Common Household Problems

View Poll

What if you could solve multiple household problems with just one product? Well, you can. Believe it or not, milk has many household uses that can save you money. Here are a few to get you started.

For one, you can polish patent leather shoes by rubbing them with a cloth dipped in a little milk. Just dry and buff to get the perfect shine.

You can also remove ink stains from clothing by soaking the area in milk. Depending on the stain, it can take up to 24 hours to remove completely, so be patient.

Milk can also repair fine cracks in china. Just place a plate or cup in a pan, fill it with milk and bring to a boil. Simmer it for 45 minutes and watch those cracks disappear.

So, before you waste money on pricey shoe polish, dry cleaning or new tableware, think about opening the fridge. Using milk instead of specialty products will help the savings add up.

 

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Mortgage Rates Drift Lower as Housing Market Struggles

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Mortgage rates locked down / fixed concept
Brian Chan/Alamy
Average U.S. rates on fixed mortgages declined this week, hovering near historically low levels.

Mortgage buyer Freddie Mac said Thursday that the average rate for a 30-year loan eased to 4.14 percent from 4.17 percent last week. The average for the 15-year mortgage fell to 3.22 percent from 3.30 percent.

Rising prices and higher interest rates beginning in mid-2013 have made homes less affordable for would-be buyers. At the same time, a limited supply of homes is available to buy. Sales of new homes are running about half the rate of a healthy housing market.

Home prices rose in April from a year ago at the slowest pace in 13 months, reflecting the recent drop-off in sales, according to the latest Standard & Poor's/Case-Shiller 20-city home price index released Tuesday.

Mortgage rates are about a quarter of a percentage point higher than they were at the same time last year. The increase in rates over the past year or so was driven in part by speculation that the Federal Reserve would reduce its bond purchases, which have helped keep long-term interest rates low. Indeed, the Fed has announced five declines in its monthly bond purchases since December because the economy appears to be steadily healing. But the Fed has no plans to raise its benchmark short-term rate from record lows.

After the central bank ended a two-day policy meeting last week, Fed Chair Janet Yellen sent the message that the economy still isn't healthy enough to grow at a consistently strong pace without the Fed's help. Yellen said that despite a steadily improving job market and signs of creeping inflation, the Fed sees no need to raise short-term interest rates from record lows anytime soon.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
  • The average fee for a 30-year mortgage fell to 0.5 point from 0.6 point a week earlier. The fee for a 15-year loan was unchanged at 0.5 point.
  • The average rate on a one-year adjustable-rate loan slipped to 2.40 percent from 2.41 percent. The
  • average fee remained at 0.4 point.
  • The average rate on a five-year adjustable mortgage fell to 2.98 percent from 3.00 percent. The fee declined to 0.3 point from 0.4 point.

 

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The Secret Behind How I'm Saving 40% of My Pay

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Hispanic woman counting coins from jar
Blend Images/Alamy
By Lauren Bowling

In our Money Mic series, we hand over the podium to people with controversial views about money. These are their views, not ours, but we welcome your responses.

Today, one woman shares how she went from being a spendthrift to saving nearly half of her income -- each month
.

I've never been very good at saving.

Credit: Stacey Bode PhotographyLauren Bowling
I'm a spender -- shoes, trips, nights out, you name it. It's a fact that became especially apparent to me when I found myself saddled with $10,000 of credit card debt after graduating from college.

Despite this fact, I decided to move to New York City a year later to pursue a career as an actress. The only problem? The minimum payments on my credit cards were so outrageous ($300 a month) that I had to put auditions -- and my career dreams -- on hold and get a steady, full-time job just to keep up.

As it turns out, I'm great at paying off debt.

I found a job as an administrative assistant at a hedge fund, making $45,000 a year. Between sticking to my budget and putting 30 percent of each paycheck toward my debt, it only took me 14 months to pay it all off.

I celebrated the feat by printing out a screenshot of my zero balance statement to display on the fridge. Having that measure of quantifiable success was empowering, but the truth is that I still hadn't gotten the hang of saving -- the one thing that could help keep me out of debt.

The Side Gig That Turned Me Into a Better Saver

After living off ramen for much too long, I wanted to experience the "good life" while I still had the chance -- but in a city that wouldn't put me back into debt. So after two years of living in New York, I moved to Atlanta to be closer to home and to switch careers. I didn't want to be an actor anymore -- or an assistant, for that matter! -- and living with my parents seemed like the best place to figure out my next step.

Around the same time, I started a blog. Working at the hedge fund had inspired me to get a handle on my money, and I began writing about the triumphs and pitfalls of working toward financial responsibility. I put all my efforts into the blog -- and it ultimately helped me land a job as a content and social media manager for a start-up.

Thanks to my blog, I'd come to love thinking, writing and talking about money -- and it inspired me to constantly strive to be more responsible with what I have.

Along with this keen interest in personal finance comes the consumption of a lot of other money-related journalism and ideologies. One of the most interesting? A movement among other bloggers called the "50% Club," in which members challenge themselves to put away half their income each month. I loved the idea and hoped that by joining, I'd become a better saver.

My bank account certainly needed a boost: I'd put some of my bonus from my old job (the only "savings" I had to speak of) toward a down payment on my first home in Atlanta, and even though I'd gotten a good deal, it needed a complete renovation -- which, of course, went over budget.

The 50 percent challenge seemed like a good way to aggressively save enough to build up my emergency fund and reestablish solid financial footing.

My First Month on the 50 Percent Challenge

Between my full-time job, freelance income from managing social media accounts for a few clients and advertising revenue from my blog, I take home around $5,200 each month after taxes. Half, or $2,600, seemed like a reasonable enough amount to save each month ... until I ran the numbers.

Owning and living in a 2,000-square-foot home by myself means my utilities and insurance premiums are higher than if I lived in an apartment or with roommates. And although the home is much bigger than I need (I originally bought it with my ex), I still need to live here another year or two in order to recoup my investment costs.

I still wanted to improve my savings habits in a more sustainable way, so I decided to name my own number.

So due to a large house and the associated costs, plus such fixed expenses as gas and groceries, I'm shelling out about $2,000 (40 percent of my income) a month before I've even spent any extra "fun" money.

So during my first month on the 50 percent challenge, I tried to trim back on expenses, like utilities and my cell phone bill, but it was tough. The home was old, so it used up a lot of energy. And I needed to use my phone quite a bit for my freelance work.

I also ended up spending my "lifestyle" money a little too freely. After working lots of hours between my full-time job and freelancing, I found it difficult to say no to myself more than usual when I wanted to enjoy my free time or indulge a little.

As a result, I ended up shuffling money back and forth between my checking and savings accounts to cover expenses -- and ultimately decided the 50 percent savings challenge just wasn't for me. But I still wanted to improve my savings habits in a more sustainable way, so I decided to name my own savings number.

A Retooled Money Challenge

I started by identifying my biggest money goals and working backward to determine how much I'd need to save in order to meet them.

It was January -- a perfect time to think about what I wanted to accomplish by the end of 2014. So I wrote a list: Pay off the last of my lingering house renovation debt ($7,500), increase my emergency fund to $10,000 (five months of living expenses) and fully fund my Roth IRA ($5,500).

Even during the months when I miss my goal, I try to remember that it's important to save something -- even if it's a small amount.

Tackling these three goals would cost a total of $23,000 for the year, which was $1,916 a month, or 36 percent of my take-home pay. To make it a nice, even number, I bumped it up to 40 percent, which meant saving only another $144.

Since I'd had trouble saving in the past, I was determined to adopt better habits in order to stay on track this time. I started by vowing to deposit the $1,300 I make each month from freelance work directly into my savings account, so I never see that money or feel it's free to spend. With those funds stashed away, I only need to save another $780 to hit my goal.

I also set up an automatic transfer to my savings account for $340 each pay period -- something I'd never done before. And it turns out that I don't really miss that money, either. I know everyone who automates their savings strategy says that, but I've finally learned how true it is!

The best part: Now that I've adjusted my savings number to something I feel more comfortable with, I rarely have to pull money out of savings to cover overages in my discretionary spending.

My New Life As a 40 percent Saver

With the money I've saved so far, I've been padding my emergency fund, as well as paying off student loans and credit cards that I ran up again while doing renovations.

After I pay off my debt near the end of the year, I'm planning to funnel the funds into my retirement account. Since we're only halfway through 2014, I've focused on paying down debt to save money on interest. It's been really exciting to see these numbers shrink with very little manual effort on my part.

I've also gotten better at saying no to social invitations or home improvement projects if my budget doesn't allow for it. And if I ever need to dip into savings (for emergency car or home repairs, for instance), I try to replace the money the following month.

Hitting the financial targets I've set for myself feels incredible, but perhaps the best thing I've learned from the challenge is not to beat myself up about what I can and cannot do. Some months I've saved closer to 45 percent, and others just 10 percent to 12 percent because an unexpected expense cropped up.

But even during the months when I miss my goal, I try to remember that it's important to save something -- even if it's a small amount. I plan to continue to save 40 percent for as long as my lifestyle allows, while also keeping in mind that life can change quickly. Just six months ago, I was saving only around 6 percent of my income.

 

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Four Ways We Feed a Family of Five for $575 a Month

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Simply put, grocery shopping is expensive.

The Department of Agriculture says that groceries can average $600 to nearly $1,300 for a family of four. However, the monthly bill for my family of five comes in at or below what the USDA considered "thrifty," and a considerable fraction of what we buy is organic food.

You, too, can save a lot of money on groceries -- if you make it a priority. Here's how we keep our grocery and dining-out budget under $575 per month.

Have a Meal Plan That Yields a Grocery Spending Plan

My wife and I started meal-planning about five years ago when we realized that we'd eaten chicken tacos for dinner three nights in a row. Our lack of a plan left us scrambling to pull together suppers, which meant we were using whatever was easy and on hand. That gets repetitive fast, and when we got bored with those meals, we were more likely to eat takeout, which further bloated our food budget.

You may be thinking that meal-planning takes too much time, and we thought that too, at first. But it only takes us 15 or 20 minutes a week to build a meal plan around what's on sale and what fits our dietary choices, that falls under our budget.

You can plan for a week or for a month, but don't give in to the fear that having a plan limits you. In fact, we've found that it brings us greater flexibility as we can swap things to save time as needed.

Buy in Bulk -- Wisely

One of the biggest ways we're able to minimize our grocery spending is by selectively buying in bulk, mainly at Costco. (COST) (The savings on toilet paper alone make it worth the membership.) Seriously though, we find that with our food plan in hand, we're able to more effectively use warehouse club shopping to save money on everything from oranges to chicken.

Of course, you have to do this wisely: Wasted food equals to throwing money away. If you find you're throwing away produce every week, think over what you ate that week instead of fresh fruits and vegetables. If your meals were dominated by boxed and canned foods, there's your answer. Next time you shop, buy fewer boxed and canned goods, which will force you use more of the produce you buy. If, on the other hand, you're eating a ton of fruits and vegetables, and still throwing some away, you may just need to decrease the variety of produce you're bulk-buying.

We all know that our food savings can be taken a step further by adding in coupons. However, remember: The stores and manufactures offer coupons to lure you into buying things you didn't plan to. Don't let coupons lure you into spending more than you were planning.

Make Loss Leaders Your Friend

Loss leaders are those items that grocery stores use to get you in their doors. They will sell something at a loss -- like a half-gallon of milk for $1 -- with the expectation that after you're there, and have the milk in your cart, you'll spend more on higher-margin items to make up for it. You can turn this on its head and only purchase the loss leaders, which give you instant savings -- if you need the items. Buying loss leaders also:
  • Adds variety to your meal routines.
  • Allows you to stock up.
  • Adds the possibility of a luxury item in your meal plan.
Grocery stores usually make their loss leaders fairly obvious. They are typically in larger pictures on the front or back of their weekly circulars. Just keep in mind that not everything in the circular may be on sale.

Shop in Season

My family loves strawberries. However, they're not in season year round where we live. When they are, it's common for us to find them going for $1 a pound. In mid-winter, we could easily pay triple that, if not more. As you can guess, we're not buying strawberries in February.

Applying that logic across the produce aisle can be a simple way to save money. Freeze your extras for out-of-season enjoyment. Grocery chains such as Aldi's commonly carry produce at a significant discount.

John Schmoll is the founder of Frugal Rules, a finance blog that regularly discusses investing, budgeting, and frugal living. He is a father, husband, and veteran of the financial services industry who's passionate about helping people find freedom through frugality. He also writes about wise ways to manage your money at WiseDollar.org.

 

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It's Summer, and Scammers Are Calling Seniors

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mature man sitting in chair with mobile phone
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Seniors are among the most common victims of con artists. According to New York State AARP Director Beth Finkel, older Americans had $2.9 billion stolen from them in the most recent year for which data is available, and the America's demographic shift toward an older population is only likely worsen the problem.

To protect seniors, New York Attorney General Eric Schneiderman recently issued an alert about five common phone scams, which typically spike in the summer. Criminals everywhere are using these and similar tricks to bilk you, your parents or grandparents and other older people you love.

Preying on Emotion, Hope and Respect of Authority

All five scams appeal to your emotions. One trick involves the caller impersonating your grandchild and asking you to wire money to help with a made-up financial crisis, like a car breakdown, medical expenses or even a night in jail. The nastiest part is that, thanks to social media, con artists can easily learn the names of your grandkids and details about their whereabouts, making the scenario sound realistic.

Another scam preys on your financial hopes. Scammers will tell you that you've won a lottery and ask you to pay fees and taxes associated with your "winnings." The criminals walk away with your cash and bank-account information that they'll use to take more money.

The most popular scams appeal to your respect of authority. Criminals pretend to be court officers, Internal Revenue agents or utility-company representatives and demand payment for overdue balances, fines, missing jury duty or other infractions. Unsuspecting seniors may accede to those demands by sending money via a prepaid debit card or by money-transfer services.

What You Can and Can't Trust

With these scams, caller ID won't necessarily save you, as con artists have learned how to trick the service by spoofing their originating phone number. As a result, you might see "Internal Revenue Service" or the name of your local utility in your caller ID box, even if it's a fraudulent call.

A better defense is to never to give out information on a call that you receive. If you believe that the phone call is legitimate, get a name, end the call, look up the real customer service number yourself, and call back whoever the caller claimed to be to ensure that you were talking to a legitimate representative. If the person or company denies having called you, then you'll know that you avoided becoming the victim of a phone scam.

Being vigilant about your personal information has never been more important, yet many senior citizens don't know about protections that younger people take for granted. Make sure you, your parents, grandparents and other older people know about these tactics.

You can follow Motley Fool contributor Dan Caplinger on Twitter @DanCaplinger or on Google+.

 

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After Market: Fear of Fed Action Makes Investors Skittish

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Worries about interest rates rising earlier than anticipated sent Wall Street lower Thursday, but GoPro flew high on its first day of trading.

Comments by the head of the Federal Reserve Bank of St. Louis rattled investors. James Bullard said he predicts rates will begin to rise by the end of the first quarter of 2015. And there was more bad news. Economists lowered their growth forecasts for the second quarter, citing weak consumer spending.
Federal Reserve Bank of St Louis President James Bullard Interview
Getty ImagesFederal Reserve Bank of St. Louis President James Bullard


At the end of the day the Dow Jones industrial average (^DJI) dropped 21 points, the Nasdaq composite (^IXIC) slipped almost 1 point and the Standard & Poor's 500 index (^GPSC) was lower by 2 points

But GoPro (GPRO) soared on its first day of trading. Shares of the initial public offering were priced at $24, and closed the day at $31.35. That's a gain of 30 percent from the IPO price.

Other top gainers included storage and information management firm Iron Mountain (IRM). Its shares rallied 20 percent after the IRS gave it approval to convert itself into a real-estate investment trust.
And Nabors (NBR) was also a winner up 6 percent after agreeing to sell its fracking unit for $2.8 billion to C&J Energy (CJES).

Aluminum giant Alcoa (AA) gained 2.5 percent, on news that it's buying aircraft parts maker Firth Rixson for $2.8 billion. It's been a stellar year so far for the stock -- it's up 40 percent since the beginning of 2014.

And ConAgra (CAG) known for its Slim Jim beef jerky and Hunt's tomato ketchup rose almost one percent on quarterly revenue that beat the street.

But Bed Bath & Beyond (BBBY) disappointed on earnings and lowered its outlook, sending the stock lower by 7 percent. 2014 has not been kind to its shareholders. The stock is down almost 30 percent year to date.

And finally, the U.S. shares of European banks got hit on news New York's Attorney General is suing Barclay's for failing to warn its clients about the presence of high-frequency traders in its dark pools. Barclay's (BCS) shares were down more than 7 percent, UBS (UBS) fell almost 2.5 percent and Credit Suisse (CS) was off by 3.5 percent.

-Produced by Karina Huber.

What to Watch Friday:
  • The University of Michigan releases its final survey of consumer sentiment for June at 9:55 a.m. Eastern time.
The following major companies are due to release quarterly financial statements:
  • KB Home (KBH)
  • The Finish Line (FINL)

 

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Should Dividend Investors Eject Merck & Co., Inc?

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Merck  has one of the largest dividends in health care, but does that make it one of the sector's top dividend stocks? 

In this video, Motley Fool Healthcare analyst David Williamson will be grading well known dividend stocks using a World Cup inspired grading system: a yellow card is a warning for investors, a red card is an ejection, and a "goal" happens if the stock looks like a winner. 

Watch and find out the current strengths and weaknesses of Merck and if it should be ejected by investors.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

 

The article Should Dividend Investors Eject Merck & Co., Inc? originally appeared on Fool.com.

David Williamson owns shares of Merck. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Should Dividend Investors Eject Johnson & Johnson?

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Healthcare conglomerate Johnson & Johnson  is many things, a dividend aristocrat, a blue chip stock, and a Dow component, but does that make it one of the sector's top dividend stocks? 

In this video, Motley Fool Healthcare analyst David Williamson will be grading well known dividend stocks using a World Cup inspired grading system: a yellow card is a warning for investors, a red card is an ejection, and a "goal" happens if the stock looks like a winner. 

Watch and find out the current strengths and weaknesses of Johnson & Johnson and if it should be ejected by investors.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

 

The article Should Dividend Investors Eject Johnson & Johnson? originally appeared on Fool.com.

David Williamson owns shares of Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Is GlaxoSmithKline's Dividend Safe?

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GlaxoSmithKline is one of the globe's largest drug companies. The company generates more than $40 billion in annual sales and, given that its dividend yield is nearly 5%, its shares are often included in dividend investor's portfolios.

Glaxo has a solid track record of dividend increases during the past five years; however, investors are right to wonder whether sliding sales tied to patent expiration may put Glaxo's streak in jeopardy.

In the following slideshow, you'll learn whether I think Glaxo's dividend is safe, and see how Glaxo's dividend matches up to its new consumer goods joint venture partner Novartis and its competitor AstraZeneca .

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

 

The article Is GlaxoSmithKline's Dividend Safe? originally appeared on Fool.com.

Todd Campbell has no position in any stocks mentioned. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. Todd owns Gundalow Advisors, LLC. Gundalow's clients do not have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Investors Need to Keep an Eye Out for This Developing Trend

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Big tobacco is used to threats from government policies, regulations, and taxes. So Philip Morris and British American , the world's largest two publicly traded tobacco companies, know how to handle regulators. 

However, the threat of plain packaging legislation has terrified these producers as they believe that selling cigarettes without their trademark branding would hit their sales hard.

The legislation would require tobacco companies to sell their products in drab green packs. In addition, at least 50% of each pack must be devoted to a graphic warning detailing  the risks of smoking.


So far, three countries have introduced plain packaging rules -- Australia, New Zealand, and Ireland -- although no one is really sure what effects the rules have had.

No clear measurement
Many mixed messages have been broadcast about the success of the plain packaging revolution.

For example, according to the Australian Bureau of Statistics, households consumed $3.2 billion in tobacco and cigarettes in the three months to the end of March 2014, almost $1 billion less than they did a decade earlier.

What's more, the ABS published figures which showed that 16.3% of Australian adults smoked daily in 2011-2012, down from 22.4% a decade earlier.

This data is completely different from the information released by tobacco companies. However, due to the reputation of big tobacco, many are just ignoring their data .

British American and Philip Morris reported figures that show that their cigarette sales within Australia increased by 59 million cigarette equivalents between them during 2013, the first rise in five years.

There is no way to tell which party is correct, but for investors this is an important point. Proof that plain packaging does significantly reduce smoking rates could lead to more countries around the world bringing in this legislation. This would hit both Philip Morris and British American extremely hard.

Looking for evidence
So are there any figures that suggest that plain packaging is having an effect? Well, Phillip Morris does not provide regional detail for its Asia cigarette volumes. Nevertheless, during the first quarter the company commented that :

...PMI's cigarette shipment volume [to Asia] of 70.8 billion units decreased by 2.5%, due primarily to: a lower market share in Australia and Indonesia...

During 2013 management did state that market share within Australia had increased. There is very little information available on the topic.

On the other hand, British American did provide some information on its business performance within Australia last year, the first year of plain packaging enforcement.

The company commented that the Asia Pacific region as a whole reported profit growth, at adjusted exchange rates of 7%, as a result of strong performances in Australia, New Zealand, Pakistan, Bangladesh, and Taiwan. Unfortunately, the company then went on to comment that :

...[Australia] Profit was up strongly as a result of higher pricing and cost saving initiatives, partially offset by lower volume. Illicit trade increased following the introduction of plain packaging. Market share was lower...

It would appear that there are some indicators that plain packaging is affecting sales. However, plain packing is not yet affecting the bottom lines of Philip Morris and British American.

Foolish summary
Overall, tobacco investors need to keep an eye out for developments in the plain packaging debate. While the initial figures are mixed, there is concern that the widespread roll-out of plain packaging could hit tobacco companies hard. For investors, this will likely translate into lower dividend payouts and share prices. 

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

The article Investors Need to Keep an Eye Out for This Developing Trend originally appeared on Fool.com.

Rupert Hargreaves has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Social Security: 3 Simple Charts That Will Help You Decide When to Take Benefits

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Deciding when to take Social Security benefits is one of the most important financial decisions you'll ever make. Among other things, you should consider when you'll need the cash, how long you're likely to live, and at what age you want to leave the workforce to (at least hopefully) pursue a life of relative leisure.

So how should you make the final decision of when to apply? Suffice it to say there's a multitude of research and commentary available on the Internet to guide this process.


But as Motley Fool contributor John Maxfield discusses in the video below, the only person who's ultimately qualified to make the decision is you. With this in mind, John shares three simple charts that can assist you.

The first shows the impact of timing on the size of your monthly benefits. The second shows the cumulative surplus and later deficit associated with taking benefits at age 62 as opposed to 66. And the third shows the probability you'll live to various ages, assuming that you're 62 years old.

An easy way to get more income during retirement
Even though Social Security plays a key role in your financial security, it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here now to instantly access a free copy today.

The article Social Security: 3 Simple Charts That Will Help You Decide When to Take Benefits originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Does Your Portfolio Need a Woman's Touch?

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Investors in PepsiCo , Lockheed Martin , and Procter & Gamble may reap the benefits of being ahead of a new trend in investing: the "gender lens." With a focus on companies that embrace gender diversity within their ranks -- both managerial and directorial -- investors may be crafting a new, successful type of strategy.

Investing in diversity
It's old news that diversity within an investment portfolio can lead to better returns through risk management. But now investors are seeking out companies that have fostered diversity within their own walls by promoting more women to key managerial positions and nominating more women to their boards of directors.

With more women entering the workforce, it would seem natural that women would start playing a bigger role at the heads of the nation's companies. And yet the most recent review of the Fortune 1000 shows that women represent only 4.8% of CEOs and 16.9% of all board seats.


With that in mind, some investor groups and organizations have begun to promote companies that support advancement for women as choice investment options. And this strategy isn't just a feel-good idea, either.

Realizing the power of diversity
The data has been out for a while now showing that women are often superior investors compared to men, with a lower risk tolerance that can lead to better decision-making, long-term planning, less frequent trading, and higher use of outside help.In fact from 2000-2009, hedge funds managed mostly by women produced an average return of 9.1%, versus 5.8%, the overall composite return of hedge funds during that period.

Even more data has emerged showing that companies that include more women in their top managerial positions and boards are more successful, even during periods of financial strain. From 2006 to 2012, large companies with higher levels of inclusion of female board members produced average revenue growth of 14%, while those firms with mostly male directors grew 10%, according to a study from Credit Suisse. The study also showed that firms with more female directors were quicker to reduce debt loads during the financial crisis, lightening the burden as the financial crisis developed.

Women in top positions are cited as helping these companies with talent development and management, broader problem-solving, long-term planning, and risk management -- all keys to success and growth for both the company and the economy at large.

Investing ahead of the curve
Just recently, the women's professional network Ellevate (formerly 85 Broads) introduced the first funds to focus on companies with progressive practices of advancing women to key roles within the organization. In conjunction with fund manager Pax World Management, Ellevate introduced the Global Women's Equality Fund .

Ellevate chair Sallie Krawcheck, a former Bank of America and Citigroup executive, has said that women within the Ellevate network have been searching for new opportunities to invest in like-minded people and companies: 77% of women globally and more than 50% of women in the U.S. say they "want to invest in organizations with diversity in senior leadership."

Indra Nooyi of PepsiCo and Marillyn Hewson of Lockheed Martin. Source: company websites.

Some of the top holdings within the fund are PepsiCo, Lockheed Martin, and Procter & Gamble; the first two have female CEOs, and the third has a significant number of female executives.

Though the stories differ slightly, the CEOs of PepsiCo and Lockheed Martin both highlight the effectiveness of female corporate leaders.

Indra Nooyi was attracted to PepsiCo because it was a good company that was struggling, according to an interview with Bloomberg. Six years after joining the food and beverage giant, Nooyi was promoted to president and CFO. She oversaw the restructuring of the company, which included the divestiture of restaurants that now make up the Yum! Brand chains. Since her 2000 promotion to CFO, PepsiCo's annual revenue has grown by 72%, and net profit has more than doubled -- with 2013 marking a $5.6 billion gain.

And though the beverage industry faces a global decline in sugary-drink consumption, Nooyi continues to resist pressures to split up PepsiCo. Instead, innovations in product development and packaging have helped bolster the company's product line. Nooyi has also developed a cost reduction plan, setting her sights on a $5 billion target for cuts by 2020.

Lockheed Martin, the nation's top defense contractor, hired its first female CEO last year, naming a 31-year veteran of the company: Marillyn Hewson. With only 18 months under her belt, she doesn't have an established track record as chief exec, but with a big challenge ahead, Hewson is already demonstrating her focus on keeping Lockheed Martin relevant.

With more than 60% of its revenue coming from government contracts, Lockheed Martin faces huge hurdles, namely, the end of two wars and the threat of further sequestration in 2016. But Marillyn Hewson already has her sights set on a new pathway for the company. With some key acquisitions in both cybersecurity and transportation firms, Hewson is welcoming a different focus for the future, with the intention of making Lockheed's success less dependent on defense spending.

Hewson has also been instrumental in easing tensions between the company's key F-35 Lightning II division and the Pentagon. Through a reshuffle of key players in the program, Hewson was able to tackle a problem that had been plaguing the company for a while.

Opportunities for you
While gender diversity should not be your only consideration when choosing an investment option, many of the companies within this new fund are clear front-runners in their markets. As investors become more socially conscious, companies that embrace gender diversity within their management teams may get a boost, though it may not be significant enough to prompt a buying spree from investors. The long-term benefits of diversity within an organization's management, however, could provide your portfolio with staying power.

As society embraces equality within the workplace and the boardroom, companies have an opportunity to improve not only their odds of long-term success, but also their public image, by elevating women to key managerial roles and providing advancement to both genders equally.

Top dividend stocks for the next decade
Investing in companies based on gender diversity may be a new approach to building your portfolio, but one proven investment strategy has stood the test of time: dividend investments. The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

The article Does Your Portfolio Need a Woman's Touch? originally appeared on Fool.com.

Jessica Alling has no position in any stocks mentioned. The Motley Fool recommends Bank of America, PepsiCo, and Procter & Gamble. The Motley Fool owns shares of Bank of America, Citigroup, Lockheed Martin, and PepsiCo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Why Amedisys, LightInTheBox, and Manitowoc Are Today's 3 Best Stocks

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The broad-based S&P 500 may continue to pull rabbits out of its economic hat in order to justify new all-time highs, but this week went to the bears. The iconic index advanced on Friday, but ended the week slightly lower.

The big news event of the day was the end-of-the-month release of the Thomson Reuters/University of Michigan consumer confidence figure, which came in at a reading of 82.5 for June. This compares favorably with the reading of 81.2 for May, and essentially matched the Street's consensus estimates. Rising consumer confidence signals a more positive short-term and long-term economic outlook for consumers, and may be enough to entice them to spend more. Since our economy is so intricately tied to consumer spending, a rising consumer confidence reading might signal that consumption is about to surge higher.

Despite this positive data, the S&P 500 spent most of its day in negative territory before trudging its way higher by 3.74 points (0.19%), to close at 1,960.96. The index is now up in eight of the past 11 sessions.


Topping all individual stock gainers today was home health and hospice care provider Amedisys , which advanced 29.8% after it favorably updated its second-quarter guidance. Following care-center consolidation, as well as general and administrative expense cuts, Amedisys announced before the opening bell that it now anticipates reporting $300 million-$305 million in revenue, and $0.15-$0.20 in operational EPS for the quarter. Comparatively, Wall Street was looking for breakeven EPS, and close to $297 million in revenue, so this was a sizable beat.


Source: MyFuture.com, Flickr.

However, as I mentioned earlier today, getting a read on home-health stocks like Amedisys can be challenging. While an aging and growing population should create ample opportunities for the home-health sector to grow over the long run, cuts in Medicare and Medicaid stemming from the passage of the Affordable Care Act, and spending cuts in Congress could weigh on companies like Amedisys going forward.

Not far behind Amedisys was China-based e-commerce retailer LightInTheBox , which gained 25.6% after it, too, raised its second-quarter guidance. Shortly before the opening bell, LightInTheBox announced that it now anticipates $86 million-$88 million in revenue for Q2, implying year-over-year sales growth of 19%-22%, up from its prior forecast of $84 million-$86 million. By comparison, Wall Street was forecasting just $84.8 million in revenue. LightInTheBox attributed its improved performance on improved product offerings and enhanced customer experiences with the site. While always cautious of Chinese small caps, I'd certainly suggest adding LightInTheBox to your watchlist, as its growth potential is intriguing. If it can successfully turn the corner to profitability next year as expected, it could be quite the bargain at its current price.

Source: Free photos & art, Flickr.

Finally, Manitowoc , a supplier of industrial cranes and foodservice equipment, added 10.8% on the day after investment firm and Manitowoc shareholder Relational Investors suggested that Manitowoc spin off or sell its foodservice business. As my Foolish colleague Travis Hoium pointed out earlier, investors reacted strongly to the fact that Manitowoc retained Goldman Sachs as its advisor, meaning the company is taking the prospect of a sale or spinoff very seriously. If Manitowoc were able to separate its two businesses, it's likely that shareholder value would be created simply from investors getting a more transparent view of where and how the company generates its sales and profits. At a trailing 12-month P/E of 36, this might be Manitowoc's only chance to head higher in the near term, as its shares look fully valued otherwise.

These three stocks delivered hefty gains today, but keeping pace with this Warren Buffett darling stock over the long run may prove impossible! 
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The article Why Amedisys, LightInTheBox, and Manitowoc Are Today's 3 Best Stocks originally appeared on Fool.com.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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