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Dolls, Games, and Turtles Are Finalists for Toy Hall of Fame

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US Toy Hall Of Fame Finalists
AP/Mike GrollTeenage Mutant Ninja Turtles are among the 12 finalists for induction this year into the National Toy Hall of Fame.
ROCHESTER, N.Y. -- Pots and pans and paper airplanes are among the 12 finalists for induction this year into the National Toy Hall of Fame.

The humble contenders are up against American Girl dolls, the game Operation and several return nominees including little green Army men and bubbles.

The hall of fame at The Strong museum in Rochester announced the finalists on Monday. Two winners will be inducted Nov. 6.

Anyone can nominate a toy. An internal museum advisory committee narrows down the list and a national committee of history, toy and education experts then votes in the winners.

Inductees have to be widely recognized, proven to be more than a passing fad and foster learning, creativity or discovery through play.

The other 2014 nominees are: Fisher-Price Little People, My Little Pony, Rubik's Cube, Slip 'N Slide, Teenage Mutant Ninja Turtle Toys and the toy trucks sold each holiday shopping season at Hess gas stations.

The two winners will join last year's honorees, the rubber duck and chess, along with the 51 other toys that have been inducted since the hall was established in 1998.

Other past winners include Etch A Sketch, Play-Doh, Barbie, Mr. Potato Head and the Frisbee.

But things like the cardboard box and stick have also made the hall for inspiring kids to transform them into play things on their own.

 

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New Regs to Limit 'Tax Inversion' Mergers Reignite Debate

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Obama Delivers Statement On IRS Controversy At White House
Alex Wong/Getty Images
By JOSH LEDERMAN and JIM KUHNHENN

WASHINGTON -- The Obama administration's decision to curb the ability of U.S. corporations to skirt taxes by merging with foreign companies kicked off an immediate election-season debate over when and how to tackle the nation's complex corporate tax code.

Following through on a populist appeal from President Barack Obama for a new era of "corporate patriotism," the Treasury Department stepped in Monday with new regulations designed to limit the ability of U.S. firms to seek refuge in lower tax countries.

The Treasury will make these so-called corporate inversions less lucrative by barring creative techniques that companies use to lower their tax bill. Additionally, the U.S. will make it harder for companies to move overseas in the first place by tightening the ownership requirements they must meet.

"This action will significantly diminish the ability of inverted companies to escape U.S. taxation," Treasury Secretary Jacob Lew said. He added that for some companies considering inversions, the new measures would mean inverting would "no longer make economic sense."

The Treasury steps sparked a prompt partisan reaction.

Democrats generally supported the action as the best the administration could do without action from Congress, while Republicans faulted the administration for not making a greater effort to work with Congress to enact comprehensive corporate tax reform.

"The administration has made a good effort but administrative action can only go so far," Sen. Chuck Schumer (D-N.Y.) said in a statement. "This rule makes some companies think twice before inverting, but legislation is sorely needed."

Republicans pointed out that the U.S. has the highest corporate tax rate in the developed world and argued that Obama should be pursuing efforts to simplify the tax code, not punish companies.

"We've been down this rabbit hole before and until the White House gets serious about tax reform, we are going to keep losing good companies and jobs to countries that have or are actively reforming their tax laws," said Rep. Dave Camp (R-Mich.), who chairs the tax-writing House Ways and Means Committee.

In a display of bipartisanship, Senate Finance Committee Chairman Ron Wyden (D-Ore.) and the committee's top Republican, Orrin Hatch of Utah, said they were committed to putting together a stopgap measure to reduce the benefits of tax inversions that could win support from both parties.

More difficult, however, is developing more comprehensive tax legislation that reduces tax rates but also gets rid of cherished tax breaks that have effectively reduced the tax payments of many corporations operating in the United States. Many Democrats want changes to result in higher tax revenue, while Republicans prefer an overhaul that leaves overall corporate tax revenue essentially the same.

Administration officials who briefed reporters could not say how many pending inversions might be stopped by the new rules and specifically would not address whether the rules would block one of the most high-profile moves, an effort that Burger King announced in August to acquire Tim Hortons, a Canadian coffee and doughnut chain.

Obama applauded the Treasury for taking steps to reverse the trend of companies seeking to "exploit this loophole" to avoid paying their fair share in taxes. Yet he said he was still calling on Congress to pursue broader tax reform that would reduce the corporate tax rate, close loopholes and make the tax code simpler.

"While there's no substitute for congressional action, my administration will act wherever we can to protect the progress the American people have worked so hard to bring about," Obama said in a statement.

Coming just six weeks ahead of Election Day, the timing of Monday's announcement highlighted the appeal Democrats believe the issue has with voters. By having Treasury announce new steps now, the White House was practically daring Republicans to voice their opposition.

The announcement puts companies on notice that Treasury will be drafting regulations to clamp down, but the new measures will take effect immediately even while those regulations are pending. That means any transactions from Tuesday onward will be subject to the tougher restrictions.

Three new measures will seek to stop companies from finding ways to access earnings from a foreign subsidiary without paying U.S. taxes, including "hopscotch" loans, in which companies shift earnings by lending money to the new foreign parent company while skipping over the U.S.-based company.

Another rule change would make it harder for merged or acquired companies to benefit from lower foreign taxes by tightening the application of a law that says the American company's shareholders must own less than 80 percent of the new, combined company. The administration would like to reduce that percentage to 50 percent, but that will require legislation. In the absence of legislation, the administration says its new rules will make it harder for companies to get around the 80 percent requirement by prohibiting certain arrangements, such as a firm making large dividend payments ahead of the acquisition to reduce its size on paper.

About 50 U.S. companies have carried out inversions in the past decade, and more are considering it, according to the nonpartisan Congressional Research Service. The recent wave of inversions has been dominated by health care companies, including drugmaker AbbVie, which has announced plans to merge with a drug company incorporated in Britain.

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Amazon's Pilot Season Takes Off: Can It Jet Past Netflix?

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www.amazon.com"Really" is one of Amazon's new series.
Each year, Amazon.com (AMZN) produces a new slate of series pilots for customers of its Prime Instant Video service. Amazon kicked off its third pilot season on Aug. 28. Customers seem to like the Prime service even more than Hulu or Apple (AAPL) iTunes, and new shows may widen the lead.

According to research from Qwilt, Amazon Instant Video was the third-most-popular streaming service as of March, passing both Hulu (fourth) and iTunes (fifth). Only Netflix (NFLX) and YouTube accounted for more video traffic.To put a finer point on it, Netflix led all streaming services with 57.5 percent of "downstream" traffic volume. Think of it like ratings: The higher the percentage, the greater the chances of a viewer using bandwidth to tune into a show on that network. Amazon saw its share of traffic zoom five-fold, from 0.6 percent in March 2013 to 3.0 percent a year later.

While it's not clear how much credit original programming deserves for the gains, some newer shows have earned good reviews. For example, "Alpha House," a graduate of the first Amazon pilot season, gets 7.4 out of 10 stars on IMDb from 1,454 users.

Skeptics will rightly note that Netflix's top original series enjoy wider acclaim. Take "House of Cards," an Emmy winner that scores 9.1 out of 10 on IMDb from 145,662 users. Amazon shows may be finding favor with those watching, but Netflix originals remain more popular.

Yet I'm also not sure it matters. Qwilt's tracking finds that Netflix accounted for 19 times more downstream traffic than Amazon -- yet that's down from a staggering 87.5 times margin the year prior. The gap also closed before the e-tailer inked a landmark deal with Time Warner (TWX) to bring HBO programming to its platform. Here's a closer look at the five new programs Amazon is betting will narrow the chasm even further:

1. "Red Oaks"

Synopsis: "20-year-old David Myers takes a job as an assistant tennis pro at the predominantly Jewish Red Oaks country club in New Jersey and tries to figure out what kind of life he wants to lead." (Source: IMDb.)

Written by: Gregory Jacobs and Joe Gangemi

Starring: Craig Roberts, Jennifer Grey, Ennis Esmer

Current ratings: 4.5 out of 5 from 1,727 ratings on Amazon, 7.6 out of 10 from 131 users on IMDb

2. "The Cosmopolitans"

Synopsis: "A dramatic comedy about a group of young American expats in Paris searching for love and friendship and an ocean of distance from their past." (Source: IMDb.)

Created by: Whit Stillman

Starring: Chloe Sevigny, Adam Brody

Current ratings: 3.5 out of 5 from 1,537 ratings on Amazon, 6.1 out of 10 from 337 users on IMDb

3. "Hand of God"

Synopsis: "A morally corrupt judge suffers a breakdown and believes that God is speaking directly to him, compelling him onto a path of vigilante justice." (Source: IMDb.)

Created by: Marc Forster and Ben Watkins

Starring: Ron Perlman, Dana Delany, Andre Royo

Current ratings: 4.5 out of 5 from 3,144 ratings on Amazon, 9.1 out of 10 from 402 users on IMDb

4. "Really"

Synopsis: "A comedy that revolves around an opinionated group of thirty-something friends in Chicago." (Source: IMDb.)

Created by: Jay Chandrasekhar

Starring: Jay Chandrasekhar, Sarah Chalke

Current ratings: 4 out of 5 from 2,093 ratings on Amazon, 6.2 out of 10 from 401 users on IMDb

5. "Hysteria"

Synopsis: "A doctor travels to her hometown of Houston to investigate an epidemic among high school girls that may be spreading through technology." (Source: IMDb.)

Written by: Shaun Cassidy

Starring: Mena Suvari, James McDaniel, Josh Stewart

Current ratings: 4 out of 5 from 1,427 ratings on Amazon / 6.3 out of 10 from 352 users on IMDb

Now it's your turn to weigh in. Are you watching any of the shows in the Amazon pilot season? What, if anything, stands out vs. what's available on Netflix, YouTube, Hulu and iTunes? Leave your thoughts below.

Motley Fool contributor Tim Beyers owns shares of Apple, Netflix and Time Warner. Find him on Twitter as @milehighfool. The Motley Fool recommends and owns shares of Apple, Amazon.com, and Netflix. Try any of our Foolish newsletter services free for 30 days. Check out our free report on the Apple Watch to learn where the real money is to be made for early investors.

 

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Flash PMI and Richmond Fed Show Mixed Economic Readings

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SmokestacksThe flash Purchasing Managers Index (PMI) and the Richmond Fed released their numbers on Tuesday morning, giving off mixed economic readings.

The Richmond Fed in its manufacturing report pointed to solid strength this month for the sector. The index rose to 14 points, which was up two points from the previous month's reading of 12. Details showed incremental acceleration for new orders, which also read at 14. Shipments read at 11. Price data showed some acceleration for inputs while inventory data showed desired builds for both raw materials and finished goods.

Markit's U.S. manufacturing survey reported strong and steady growth so far this month, at 57.9 compared to 57.9 in the final August reading and 58.0 in the August flash. Details were not given to the public, but the report did note that output was strong and that new business was especially strong. The report also noted strength in backlog orders and export sales.

The U.S. manufacturing sector and Markit's reports on China and Europe are very closely watched. It would appear that U.S. markets are focused most closely on the Empire State report, and especially the long-established Philly Fed report for the first monthly readings on manufacturing.

Both the Empire State and Philly Fed reports, released last week, showed similar strength to this report.

ALSO READ: Chicago Fed Shows Worrying Signs for National Growth Trends


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SodaStream May Finally Have a Suitor or Two

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2013 Young Hollywood Awards Presented By Crest 3D White, SodaStream And The CW Network - Sponsors
Jonathan Leibson/PMC/Getty Images
SodaStream (SODA) has been one of Wall Street's bigger disappointments over the past year, but shareholders may finally be catching a break. Sources were telling several different international publications last week that the company behind the namesake carbonated beverage maker is in talks to be acquired for at least $40 a share.

The buyout would come as a welcome relief for investors who have seen the stock fall from its sudsy peak of $77.80 last summer to below $30 this summer. Inventory woes and cascading margins have slammed SodaStream, and investors know that soda is no good when the fizz is gone.

Bottling Up Optimism

Buyout chatter heated up last week when Israeli business publication The Marker reported that a British investor was in negotiations to acquire SodaStream in an $840 million deal that would swap common stock for $40 a share in cash. It seemed like just the latest in a long line of empty acquisitive talk, but then things began heating up in the U.K. media channels.

The Independent reported that beer behemoths Diageo (DEO) and SABMiller (SBMRF) are considering an offer for SodaStream. The Times apparently has another source naming private equity firm KKR as an investor willing to shell out $46 a share for SodaStream.

All of these conflicting rumors would seem to be turning this buyout symphony into a cacophony, and conspiracy theorists would argue that SodaStream itself could be behind this in an effort to smoke out a potential suitor. However, you don't often see three different international publications talking up SodaStream as a purchase.

Pop a Cap Off

We've been here before. It was originally Israel's Calcalist reporting last summer that PepsiCo (PEP) had the hots for SodaStream. Canned and bottled soda sales have been sluggish. Moody's Investors Service is reporting that carbonated soft drink sales declined 2.6 percent in the U.S. last year, with an even larger drop in diet sodas. Diversifying into SodaStream's growing global operations had some merit, especially as a way for PepsiCo to extend its brands into the faster-growing home-based carbonation market.

It didn't happen. Calcalist came back five months ago, reporting that PepsiCo, Dr Pepper Snapple Group (DPS), or Starbucks (SBUX) could be taking a 10% to 16% stake in SodaStream. This followed just two months after Coca-Cola (KO) initiated a 10% stake in Keurig Green Mountain (GMCR), helping the single-serve java heavy with its upcoming Keurig Cold launch. That didn't happen either.

Earlier this summer we had Bloomberg reporting that a private equity firm was looking to buy SodaStream at $40 a share, similar to the stories that would break in the U.K. and SodaStream's home turf of Israel last week.

None of the stories have panned out, but someone seems to be aggressively trying to play Cupid given SodaStream's knack for being at the center of buyout chatter. It's easy to see why SodaStream would be receptive: Stateside sales have been slumping since late last year, and overall profitability has taken a hit. SodaStream is still gaining momentum in more established European markets, and perhaps that's why the latest round of potential acquirers is a global smorgasbord. If SodaStream isn't going to turn its U.S. operations around soon, it could be in the best interest of its investors if it does consider any serious proposals. However, after more than a year of empty chatter, the rumors are intensifying, but nothing is certain until SodaStream makes it official.

Motley Fool contributor Rick Munarriz owns shares of Keurig Green Mountain and SodaStream. The Motley Fool recommends Coca-Cola, Diageo (ADR), Keurig Green Mountain, PepsiCo, SodaStream and Starbucks. The Motley Fool owns shares of PepsiCo, SodaStream and Starbucks and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.

 

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What's in Alibaba's Future? 10 Things You Should Know

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Alibaba Is To Be Officially Listed In New York Stock Exchange Today
ChinaFotoPress/Getty ImagesEmployees cheer at Alibaba headquartes in China as its stock debuts in New York.
At $231 billion, Alibaba Group (BABA) closed Friday with more than twice the market cap of Facebook (FB), three times that of eBay (EBAY), and about 50 percent more than Amazon.com (AMZN).

For founder Jack Ma, the run-up means he's now worth more than $20 billion, according to Forbes' estimates. Yahoo (YHOO), meanwhile, is now sitting on a stake that was worth more than $49 billion the day of the initial public offiering -- about $10 billion more than its current market cap.

Can Alibaba grow further? Don't answer yet. These 10 surprising facts may influence your thinking.
  1. A crown unlike any other. Alibaba isn't just China's leading e-commerce platform. The company serves 231 million annual active buyers, or more than 76 percent of the estimated 302 million Chinese who purchase goods online.
  2. More like eBay than Amazon. Alibaba is an almost entirely software-driven company that doesn't keep or develop inventory as Amazon does. Rather, the company uses logistics technology and a partner network to meet commitments to shoppers.
  3. Trading in line with Chinese peers. As expensive as Alibaba might seem, at 43.9 times earnings, the stock trades within spitting distance of local peers Baidu (BIDU) at 41.2 times earnings and Tencent Holdings (TCEHY) at 42.2 times earnings, according to S&P Capital IQ.
  4. Did we mention cloud computing? Alibaba Cloud Computing is capable of processing 3.6 million transactions per minute. The system serves more than 980,000 direct and indirect customers, making it a bit like China's version of Amazon Web Services.
  5. Astounding growth still ahead. Analysts peg Alibaba's long-term earnings growth at 29.9% percent annually over the next three to five years, according to S&P Capital IQ. Management expects similar gains, citing iResearch data that says Internet shopping is on pace to grow 27.2 percent annually from now through 2016.
  6. More business than the top U.S. shippers. Alibaba's logistics platform orchestrated delivery of 5 billion packages last year. By contrast, UPS (UPS) handled 4.3 billion deliveries over the same period.
  7. Some of the best margins in the Internet business. Alibaba's reported gross margin comes in at 73.5 percent. Only Facebook (80.9 percent) ranks higher among the "Internet Software and Services" companies tracked by S&P Capital IQ. It's a different story on the bottom line, where Alibaba leads the field with a 54.4 percent net income margin.
  8. Dwarfing not just eBay, but PayPal too. Subsidiary Alipay settled $5.8 billion in transactions value on last year's "Singles Day," a local spin on Valentine's Day. All told, Alipay handled $519 billion in payment volume last year vs. $180 billion for PayPal.
  9. An increasingly mobile business. Like most of its peers, Alibaba is trying to do more business via mobile devices. The effort appears to be paying off. As a percentage of overall merchandise value sold across the platform, mobile jumped from 14.7 percent in last year's third quarter to 19.7 percent in the fourth quarter.
  10. Cash is flowing. According to S&P Capital IQ, Alibaba generated $4.24 billion in cash from operations in the fiscal year ended in March. Over the trailing 12 months, the total rises to just over $5 billion. New transactions are generating even more profit than they had previously.
Now it's your turn to weigh in. Did you buy into the Alibaba IPO? Do you like the business for the long term? Leave your thoughts below.

Motley Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this article at the time of publication. Find him on Twitter as @milehighfool. The Motley Fool recommends and owns shares of Amazon.com, Baidu, eBay, Facebook and Yahoo. The Motley Fool recommends United Parcel Service. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.

 

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Cut Costs With Coupon Stacking -- Savings Experiment

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Coupon Stacking
While clipping coupons has always been a simple way to cut costs, maximizing your coupons can be an art in itself. Here are some introductory tips on how you can start clipping, and save more than ever.

First, there's coupon stacking. Manufacturer coupons are available in the Sunday paper, on product boxes and online, while store coupons can be found in sales circulars, on supermarket websites and even on your receipts.

When you find a manufacturer coupon and a store coupon for the same item, you can double-stack them for big savings. For example, a bag of Campbell's Go Soup normally costs $2.49 at Target. With a $1-off manufacturer coupon and a $1-off store coupon, the final cost drops to 49 cents. That's a savings of 80 percent.

A lot of well known retailers allow coupon stacking, including Walgreens, JCPenney and Walmart.
Check your favorite store's policy to find out if they support it, as well.

Next, there's coupon doubling. This is when a store automatically doubles the value of coupons of 50 cents or less. You'll see these deals offered at stores like Albertsons, Shop Rite and Safeway. For a complete list, check out GroceryCouponNetwork.com, but keep in mind that each store may have its own restrictions.

Ready to save? Give coupon stacking and doubling a shot and watch your savings multiply.

View Poll

 

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Ticket Prices for Jeter's Last Games Fly Out of the Park

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Baltimore Orioles v New York Yankees
Mike Stobe/Getty Images
If you want to witness Derek Jeter's final home game at Yankee Stadium on Thursday, be prepared to shell out a lot of cash. The average price to get into the Yankees game against the Baltimore Orioles is $845, according to the ticket aggregator TiqIQ.

The lowest price just to get into the ballpark is $362, which has risen from $220 less than a week ago. TiqIQ collects pricing information from a variety of ticket sellers. If have money to burn and want to get up close for the game, you could spend $9,700 and get a seat right behind the Yankees dugout.

"In terms of regular season games this is one of the most expensive we have seen in the history of the company," said TiqIQ Vice President Chris Matcovich. "With quantity dwindling and the game two days away, the price could continue to rise."

Last year's swan song for superstar reliever Mariano Rivera seems like a bargain compared to Jeter's sendoff. The average price for Rivera's last home game was $239, and the lowest price to get in was $59, according to an analysis by TiqIQ.

How About His Last Away Game?

If you don't want to pay New York money to get into Jeter's last home game, how about going to Fenway Park to see his final major league game? There, you can pay Boston money to see Jeter end his career. The average price of ticket for that game is "only" $534 --and the highest average price for a regular season game at Fenway in at least five years, TiqIQ said.

It will cost about $250 just to get into the park. But not to be outdone by their New York rivals, the priciest seat at Fenway for Jeter's final game is listed for more than $10,000 -- just a hair above the priciest seat at his Yankee Stadium farewell.

 

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Credit Scores Hit New Highs - But You Should Aim Higher

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During the financial crisis, millions of Americans found it nearly impossible to get the credit they so desperately needed. With skyrocketing foreclosure rates on mortgage loans gone bad and high default rates on credit cards, the health of the credit markets brought the financial system to the brink of collapse.

Today, almost six years after that crisis began, America's credit picture has gotten better. According to figures from credit-scoring agency FICO, the company's proprietary FICO scores have reached their highest average level since the agency started keeping records in late 2005. But even though credit scores at new record levels might sound impressive, most people have a long way to go to get the healthy credit scores they should seek.

Much Ado About Six Points

According to the latest available figures, the average FICO score hit 692 as of April. That represented an improvement of a single point from the year-ago measurement, and it brought the total gains since the score hit its lowest level in late 2009 to six points.

Admittedly, when you're talking about an average that covers tens or even hundreds of millions of people, a few points make a big difference. A FICO spokesperson noted that reducing the amount of debt outstanding likely played a huge role in the gains, as falling outstanding debt would lead to more favorable ratios of credit used to total credit limits.

Yet going from a score of 686 to 692 in a span of nearly five years has only limited value for the average American borrower. For many borrowing decisions, a score of 692 is still considered to be just on the upper end of acceptability, with good scores ranging from 700 up to the maximum of 850. Six points can prove to be the difference in getting a favorable decision from a lender, but it's rarely the decisive factor.

Perhaps more important, FICO itself argues that raw scores by themselves don't tell consumers whether they'll be able to get the financing they need. Many lenders use FICO scores, but each has its own strategy that it follows to make lending decisions, and so a score that would get you a loan at one institution might lead to your being denied at another.

Finally, credit scoring methods are regularly revised to reflect default experience more accurately. FICO announced its latest changes to its scoring methodology in August, with FICO Score 9 incorporating new information about how collection agencies deal with outstanding medical debt compared to non-medical debt. For some borrowers, that alone could boost FICO scores by 25 points.

Real Change for Your Credit Score

If you want to make real improvements to your credit score, you need to understand the most important factors in calculating it. Payment history makes up 35 percent of your score, and so making payments on time and keeping current on your outstanding bills is essential in keeping your score up or helping it rise after past mistakes. Another 30 percent comes from comparing outstanding debt to your total available credit, and paying down debt so that it's a lower percentage of your available credit can boost your score.

What you shouldn't expect, though, is a quick fix that will give you a major increase in your credit score in a short period of time. Given enough time, you can put past credit mistakes behind you, but it takes patience and discipline to establish healthy credit and demonstrate an ability to sustain it. Once you do, though, you'll quickly see the value of having a strong credit score -- and that should provide you with ample motivation not to let yourself slide back into bad habits once again.

Gains in the overall average credit score in America are good news for the economy as a whole, but you should strive to do more for your own personal score. Getting a good or excellent credit score will give you opportunities that others never get, and so it's worth taking steps to improve your credit and reap the rewards of a high score.

You can follow Motley Fool contributor Dan Caplinger on Twitter @DanCaplinger or on Google+. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.

 

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Coffee on Trial: Should a Cup of Joe Carry a Cancer Warning?

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Cup of coffee in pile of coffee beans,ks12936,beverage,coffee,beans,cup,color,nobody,paper bag,spill,spilled,pile,high angle
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Big coffee is on trial in California. At issue is whether Starbucks (SBUX) and some of the biggest names in the coffee business will have to post warning labels that say coffee products could cause cancer.

A California legal and environmental activist group called the Council for Education and Research on Toxics filed a lawsuit under the state's Proposition 65, which mandates that products containing cancer-causing chemicals have warning labels. The chemical at issue is acrylamide, a byproduct of coffee bean roasting.

The lawsuit has been brewing in the courts for several years, with Starbucks joined by other coffee sellers, including Caribou Coffee, Seattle's Best Coffee, 7-Eleven, and Dunkin' Donuts (DNKN). As the trial got underway this month, Starbucks called experts who testified that there has been no proven link between coffee and cancer.

The council alleges the amount of acrylamide commonly found in a cup of coffee exceeds what California considers to be a safe amount. The Food and Drug Administration has said the risks of exposure to acrylamide in food are uncertain, but the agency has published a list of how much the carcinogen has been found in various foods.

The View from a Nutrition Professor

Stanley Omaye, a University of Nevada nutrition professor, told Chemistry World that the science in this case tilts toward the defense. "Based on the animal studies, you would have to drink probably over 100 cups of coffee a day in order to get to that dangerous dose, so it is totally absurd," he told the publication.

In addition, Chemistry World said the coffee companies have argued that the plaintiffs haven't really analyzed what happens to acrylamide in coffee and don't have any evidence that it can cause cancer when consumed in the drink. They also argue, the publication said, that numerous studies have shown that drinking coffee can actually help reduce the odds of developing of cancer.

Meanwhile, for those who still want their morning cup of coffee, a small cup is still free for another week at most McDonald's restaurants.

 

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Market Wrap: Europe's Woes and Syria Strikes Sink Stocks

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CORRECTION Islamic State Military Airstrikes
AP/U.S. Navy, Mass Communication Spc. 3rd Class Brian StephensAn EA-6B Prowler lands on the aircraft carrier USS George H.W. Bush after conducting airstrikes Tuesday against ISIS targets in Syria.

By KEN SWEET

NEW YORK -- Grim economic news from Europe and airstrikes in Syria rattled global stocks Tuesday.

Most of the damage was felt in European markets, which fell sharply after a closely watched gauge of business activity for the region fell to a nine-month low.

The disappointing news about Europe's economy also weighed down Wall Street. The Dow Jones industrial average opened lower and finished the day with its second triple-digit loss in a row.

Slow Growth in Europe

Investors have been dealing with meager economic growth in Europe for months. The eurozone economy has been flat or barely growing since April, hobbled by the lingering effects of a debt crisis, uncertainty over a conflict in Ukraine and a lack of confidence among European consumers, businesses and banks.

"It has a very feeble recovery going on that is vulnerable to even the slightest external shock," said Jacob Kirkegaard, senior fellow at the Peterson Institute for International Economics.

The European Central Bank has announced a series of measures to jolt the economy, cutting interest and pumping money into the financial system by buying bonds backed by assets such as auto and credit-card loans. But it has yet to go as far as the U.S. Federal Reserve did, buying government bonds in an effort to push long-term interest rates lower.

Carl Weinberg, chief economist at High Frequency Economics, is not optimistic: "Recovery will take years."

European market indexes sank after the economic news. Germany's DAX fell 1.6 percent, France's CAC 40 fell 1.9 percent and the U.K.'s FTSE 100 lost 1 percent.

The New World Reacts

In U.S., the Dow (^DJI) slid 116.81 points, or 0.7 percent, to 17,055.87. The S&P 500 index (^GPSC) lost 11.52 points, or 0.6 percent, to 1,982.77 and the Nasdaq composite (^IXIC) fell 19 points, or 0.4 percent, to 4,508.69.

The Dow's triple-digit fall on Tuesday follows a 107-point stumble from the day before. The blue-chip index hasn't posted two losses of 100 or more points since June.

Still, the outlook in the U.S. is far more positive than Europe. The economy has been gaining strength after getting off to a slow start this year. Growth reached a 4.2 percent annual pace from April through June. Unemployment has dropped to 6.1 percent in August from 7.2 percent a year earlier. Employers have been adding 215,000 jobs a month this year, up from 194,000 a month in 2013. Consumers are more confident and willing to take on debt.

But individual countries' economies cannot stand on their own in today's global economy. If Europe and Asian economies were to lose more traction, it could spill over into the U.S., traders say. Companies in the Standard & Poor's 500 index, for example, generate nearly half their sales abroad.

"When it comes right down to it, U.S. companies do business globally," said Quincy Krosby, a market strategist with Prudential Financial. "Unless global demand can keep up, it's going to start hurting these companies."

Along with the bad economic news, investors had geopolitical concerns to worry about Tuesday.

The U.S. and five Arab nations attacked the Islamic State group's headquarters in eastern Syria in nighttime raids Tuesday. U.S. aircraft as well as Tomahawk cruise missiles launched from Navy ships in the Red Sea and the northern Persian Gulf were used.

"The escalation of the conflict will of course raise questions over the risk appetite of many within the markets," said Joshua Mahoney, research analyst at Alpari.

Investors moved money into U.S Treasury bonds and gold, which are considered havens during times of trouble. The yield on the 10-year U.S. Treasury note fell to 2.53 percent from 2.57 percent. The price of gold rose $4.10, or 0.3 percent, to $1,222 an ounce.

"Bonds and gold are responding to those geopolitical concerns," Krosby said.

In other metals trading, silver edged up half a penny to $17.78 an ounce. Copper fell less than a penny to $3.04 a pound.

U.S. health care stocks were among the hardest hit after the Obama Administration announced rules that would go after companies trying to do so-called corporate inversion deals. Such deals happen when a company merges with an overseas competitor to legally move its headquarters out of the U.S. to avoid paying high corporate tax rates. Health care companies have been among the most active in striking such deals.

Shares fell for Medtronic (MDT) and AbbVie (ABBV), which have considered inversion deals. Medtronic lost $1.90, or 3 percent, to $64.08 and AbbVie fell $1.15, or 2 percent, to $57.56. AstraZeneca (AZN), which was approached by Pfizer (PFE) earlier this year to do an inversion deal, fell $3.54, or 5 percent, to $71.13.

The euro was flat at $1.286 while the dollar rose 0.1 percent to 108.86 yen.

In oil markets, U.S. crude oil rose 69 cents to close at $91.56 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 12 cents to close at $96.85 on the ICE Futures exchange in London, reaching its lowest level since June of 2012.

In Asia, the decline in stocks was more modest. Hong Kong's Hang Seng shed 0.3 percent and Seoul's Kospi fell 0.6 percent. The Shanghai Composite Index gained a 0.2 percent.

Economics Writer Paul Wiseman contributed to this report from Washington.

 

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Disney Closes Another Iconic Ride, Is Mum on Replacement

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Backlot Tour is an attraction at Walt Disney World's Disney-MGM Studios theme park in Lake Buena Vista
Flame/AlamyCatastrophe Canyon is part of the Studio Backlot Tour that Disney is closing.
September hasn't been a good month for purists of Disney World in greater Orlando. Earlier this month, Disney (DIS) announced that it would be closing Epcot's Maelstrom attraction in the Norway pavilion to pave the way for a "Frozen"-themed attraction. Now it's announcing that Disney's Hollywood Studios will close its Studio Backlot Tour this weekend.

The Studio Backlot Tour is one of the few remaining attractions from when the park opened in 1989. Guests board a tram on a narrated tour through the backlot, highlighted by Catastrophe Canyon, where water and fire effects go off to simulate the movie-making process. Before boarding the tram, guests enjoy a live show in which audience volunteers assist in creating a naval battle scene.

It may have been dated and perhaps hokey, but it's one of the rare experiences in the park that has something to do with making movies, which is the theme of the theme park.

Something Borrowed

Theme parks change, and it's often for the better. You won't find many people lamenting about how World of Motion is now Test Track at Epcot. When Avatar opens at Disney's Animal Kingdom in a few years, only those in the minority will lament the Camp Minnie Mickey that went away to make room. After seeing what rival Comcast (CMCSK) did a few miles up I-4 in transforming the once-beloved Jaws boat ride at Universal Studios Florida into the ambitious Diagon Alley expansion of The Wizarding World of Harry Potter, it's hard to complain about industry updates.

However, it does create a temporary void. When the two attractions close -- Studio Backlot Tour closes on Saturday; Maelstrom sets sail through Norwegian troll country for the last time the following weekend -- the two parks will have one fewer attraction to entertain guests. Maelstrom's replacement isn't expected to open until early 2016, making 2015 a challenging year for Disney to keep attendance growing.

This may not be a big problem at Epcot, but it will limit the appeal and length-of-stay at Disney's Hollywood Studios. The experience -- including the pre-show, prop area walk-through, tram tour and memorabilia-filled exit -- took at least an hour. It's also one of the few family-friendly rides at the park. Its absence will create a void until a replacement opens, and that's not a good thing for the park, which may have entertained 10.1 million guests last year but still ranks last in attendance for Disney's four theme parks in Florida.

Something New

Disney gave Maelstrom fans nearly a month to experience Norway's attraction, and it's telling park guests what is coming next. It's got a shorter leash on the narrated tram tour, with Disney making the announcement a week before its closure. That's not going to give fans a lot of time to check it out one last time, though there's always time to virtually experience the Studio Backlot Tour through online videos.

It's also intriguing that unlike Maelstrom making way for Anna and Elsa, we have not been told what will take the place of the nixed attraction. The building itself that housed the pre-show and tram queue is substantial, and that's before considering the area covered by the tram.

The smart money has to be on a richly themed "Star Wars" area.

One popular rumor is that Disney will try to re-create the success that it has had in reviving Disney's California Adventure in Anaheim with its Cars Land update. Replacing Catastrophe Canyon and surrounding roads with the Radiator Springs attraction would be a no-brainer, but let's not forget that Disney has spent billions in recent years to acquire Marvel and Lucasfilm.

Disney is limited in the Marvel properties that it can tap for park attractions as long as Universal's Islands of Adventure has exclusive state rights to four of its biggest franchises, but Lucasfilm's "Star Wars" is only limited to the imagination of Disney's famous Imagineers.

The smart money has to be on a richly themed "Star Wars" area, especially since Star Tours -- Disney's only ride about the classic sci-fi franchise -- isn't too far away. Relocating the Streets of America cityscape shouldn't be a deal breaker with so much riding on "Star Wars" for Disney. With the movie series getting a reboot in time for next year's holiday season, it would make sense for Disney to scramble to try to cash in on the upcoming trilogy. The clock's ticking, and not just on a once-beloved tram tour through TV-show and movie homes that no longer exist and a sensory canyon that is also about to no longer exist. "Star Wars" needs the showroom space. Use the Force, Luke.

Motley Fool contributor Rick Munarriz owns shares of Walt Disney. The Motley Fool recommends and owns shares of Walt Disney. Try any Motley Fool newsletter service free for 30 days. Find new ways to earn high yields with our free report on dividend stocks.

 

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7 Top Athletes Not Named Derek Jeter Who Are Retiring in 2014

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Not every athlete gets a yearlong retirement tour as New York Yankees star reliever Mariano Rivera got last year and longtime shortstop and team captain Derek Jeter has had this year. While most athletes also don't enjoy the career longevity those two had, many have given their fans plenty of thrills over the years and deserve some recognition as they move out of the sport they became famous playing and onto the next phase of life.

Here are seven athletes not named Derek Jeter who announced their retirements in 2014:

 

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20 Personal Finance Influencers You Should Follow on Twitter

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http://ptmoney.comPhilip Taylor is the founder of the Financial Bloggers Conference.

Let the financial nerds unite! The fourth annual Financial Bloggers Conference, more commonly known as Fincon, just wrapped up in New Orleans with more than 600 self-proclaimed financial nerds in attendance (and yes, I am one of those proud nerds).

With so many amazing personal finance bloggers and experts in attendance, it might seen impossible to know who you need to follow. Don't worry. I got your back. Here's a breakdown of the top 20 Influencers from Fincon you must follow on Twitter.

1. Farnoosh Torabi

Toarbi (nicknamed "Noosh") is a financial reporter, money strategist, TV and web host and author of three books: "You're So Money -- Live Rich Even When You're Not," "Psych Yourself Rich: Get the Mindset & Discipline You Need to Build Your Financial Life" and "When She Makes More: 10 Rules for Breadwinning Women." She's also a frequent financial contributor to Yahoo (YHOO), "Today," ABC and women's magazines, including Glamour, Marie Claire and All You.

A recent tweet: "Being a female primary breadwinner can seem like a sort of social experiment." #whenshemakesmore " -- @FARNOOSH, Sept. 20

Twitter: @FARNOOSH

Website: farnoosh.tv

2. Casey Bond

Bond is a personal finance writer and the managing editor for GoBankingRates.com. She's obsessed with zombie movies and is an aspiring crazy cat lady.

A recent tweet: "How a Fun Work Day Can Increase Your #Savings ↑ http://ow.ly/BJ2JC #GBR " -- @Go_Casey, Sept. 20

Twitter: @Go_Casey

Website: GoBankingRates

3. Ruth Soukup

Chief proprietor at LivingWellSpendingLess.com -- a blog that draws more than 1.2 million unique visitors a month -- Soukup is also the author of an ebook titled "How to Blog for Profit (Without Selling Your Soul)." She appears regularly on Southwest Florida's "WINK News" and writes a bimonthly column for Harbor Style magazine. Her next book, "Living Well, Spending Less: 12 Secrets of the Good Life," will be released Dec. 30.

A recent tweet: "The Ten Big Money Mistakes You Might Be Making http://bit.ly/BigMoneyMistakes ... " -- @RuthSoukup, Sept. 20


Twitter: @RuthSoukup

Website: LivingWellSpendingLess

4. Murray Newlands

Newlands is an entrepreneur, writer, author and adviser who runs an international marketing agency in San Francisco. He was named one of 50 favorite online-marketing influencers of 2014 by entrepreneur.com. He is also a columnist at Inc., Entrepreneur, Venture Beat, Search Engine Journal, Technorati and Your Story.

A recent tweet: "A team aligned behind a vision will move mountains. Sell them on... http://zoot.li/ut33 #kevinrose #team" -- @MurryNewlands, Sept. 19

Twitter: @MurryNewlands

5. Steve Chou

Chou and his wife Jennifer created an online store -- Bumblebee Linens -- so that Jennifer could quit her dreaded day job. The goal was for Bumblebee to replace her $100,000 annual salary within one year, allowing her to stay home and care for their children. The online store exceeded their expectations and led to the launch of Steve's website, MyWifeQuitHerJob.com -- get the connection? Steve now spends much of his time training and coaching others to do just what he and Jennifer did, but without the steep learning curve.

A recent tweet: "Punch Fear In The Mouth - 5 Actions You Can Apply To Start Your Business Today http://bit.ly/R56AB7" -- @mywifequit, Sept. 18

Twitter: @mywifequit

Website: MyWifeQuitHerJob.com

6. Bob Lotich

Lotich is the founder of ChristianPF.com, a personal finance blog he create to let readers get control of their money, pay off debt, save more and give more than they ever dreamed possible -- with all advice given from a Christian-centric perspective. He is the author of two books: "Managing Money God's Way: A 31-Day Devotional" and "How to Save Money: A 21-Day Challenge to Save $500/Month."

A recent tweet: "Why Money Doesn't Solve Money Problems http://christianpf.com/money-doesn ..." -- @ChristianPF, Aug. 27

Twitter: @ChristianPF

Website: ChristianPF.com

7. Mr. Money Mustache

Mr. Money Mustache describes himself as "a thirty-something retiree who now writes about how we can all lead a frugal yet badass life of leisure." He founded MrMoneyMustache.com to show others the road to financial freedom that comes from living on 50 percent less than your peers and investing the difference in index funds and rental property.

A recent tweet: "From today's incoming search traffic: "Is a 40 min commute OK for $11.25 an hour?" To whomever asked that, the answer is "HOLY CRAP NO!!!!!"" -- @mrmoneymustache, Aug. 27

(What else would you expect from a self-described badass?)

Twitter: @mrmoneymustache

Website: MrMoneyMustache.com

8. Mike Delgado

Delgado leads and builds online communities for Experian (EXPN). He also started his own blog, MikeDelgado.org where he writes about community building, content marketing, content curation, leadership, productivity and creating more value for the people and businesses we work for.

A recent tweet: "To achieve a dream, build a bridge. This means, have plan, recycle materials, build as you go @JeffGoins #fincon14" -- @mikedelgado, Sept. 19

Twitter: @mikedelgado

Website: MikeDelgado.org

9. Mandi Woodruff

Woodruff is a personal finance correspondent at Yahoo (YHOO) and Yahoo!Finance. She's an occasional triathlete who lives the Astoria section of Queens, New York, by way of Atlanta.

A recent tweet: "Nothing > than sitting down w/ a table full of smart women talking biz + life! #fincon14 @TheBudgetnista @ColorsTV" -- @mandiwoodruff, Sept. 20

Twitter: @mandiwoodruff

10. Tiff the Budgetnista

Tiff the Budgetnista is the author of "The One Week Budget" (No. 1 on Amazon's budgeting list), blogger, speaker and an award-winning teacher of fun and engaging financial education. She is also a HuffPost blogger, and she has been seen on or contributed to "Today," MSNBC, Time, Essence, The New York Times, Forbes, Reuters and PBS.

A recent tweet: "I never understood the point of conferences until now. My business will never be the same... and neither will I. #FINCON14 #LIVERICHER" -- @TheBudgetnista, Sept. 20

Twitter: @TheBudgetnista

Website: TheBudgetnista.com

11. Cameron Huddleston

Huddleston is a money-saving expert and Kip Tips columnist for Kiplinger's. She was recently named by U.S. News as one of the top 37 personal finance experts on Twitter.

A recent tweet: "When old school and new school personal finance come together -- with J Money at #fincon14" -- @chlebedinsky, Sept. 19

Twitter: @chlebedinsky

12. J. Money

J. Money describes his roles in life as blogger, money coach, hustler and daddy. He is the founder and proprietor of BudgetsAreSexy, a personal finance blog that has gathered more than 7 million views. He also operates RockstarFinance.com and coaches people interested in blogging and online business.

A recent tweet: "'If debt is an option, you'll always be in debt.' -- @DaveRamsey // Truth?" - @BudgetsAreSexy, Sept. 16

Twitter: @BudgetsAreSexy

Website: BudgetsAreSexy.com

13. Emma Johnson

Johnson is the founder of WealthySingleMommy, a site devoted to professional single moms, especially those raising children alone. The site has been named to one of 15 members of The New York Times Motherlode blog's blogroll. She has written op-ed articles for the New York Times and appeared on or contributed to CNN Headline News, Forbes, Wall Street Journal Radio, CBS Marketwatch, Ryan Seacrest Radio, Woman's Day, NBC's "Today," NPR and FoxNews.com, among many others.

A recent tweet: "Don't use lack of money as an excuse not to be happy! - Emma Johnson http://bit.ly/1r71h5C #fincon14" -- @JohnsonEmma, Sept. 19

Twitter: @JohnsonEmma

Website: WealthySingleMommy.com

14. NerdWallet

NerdWallet covers banking, credit cards, education, health care, insurance, investments, mortgages, shopping and travel. Data-driven tools and impartial information help you decide about the money you work hard to earn.

A recent tweet: "#DYK the #Friends crew are finance gurus too? Here are 20 money lessons from Phoebe & friends: http://nerd.me/XOcHRB" -- @NerdWallet, Sept. 18

Twitter: @NerdWallet

Website: NerdWallet.com

15. Jared Easley

Easley is a co-founder of the Podcast Movement conference and the founder of StarveTheDoubts.com, a top-ranked podcast devoted to helping visitors to learn how entrepreneurs and high achievers overcome self-doubt.

A recent tweet: "How to Become More Passionate, Purposeful & Prosperous... this Year! http://delegation-diva.us8.list-manage2.com/track ... w/ @MeronBareket" -- @jaredeasley, Sept. 16

Twitter: @jaredeasley

Website: PodcastMovement.com

16. Joe Saul-Sehy

Saul-Sehy is the founder of the personal finance blog StackingBenjamins.com, where he tells stories about successful money management from people who have been there. He has also spoken to audiences at Microsoft (MSFT), Chrysler, AT&T (T) and IBM (IBM). He also spent nine years at Detroit's WXYZ as the "Money Man".

A recent tweet: "Over half of credit card reward users give them to charity or pay down debt according to Jennifer Roberts @ JPMChase. #fincon14" -- @AverageJoeMoney, Sept. 19

Twitter: @AverageJoeMoney

Website: StackingBenjamins.com

17. Philip Taylor

Taylor is the founder of Fincon and the creator and editor in chief of PTMoney. The blog's motto: Do more with your money in half the time. He is a certified public accountant who founded the site to share his experiences managing his money and to connect with others who were heading in the same direction.

A recent tweet: "Live Like You're Unemployed @RockstarFinance by @WorktoNotWork http://ow.ly/BiCcF" -- @ptmoney, Sept. 9

Twitter: @ptmoney

Website: PTMoney.com

18. Jonathan Stein

Based in New York, Stein is founder of the Betterment investing platform. He describes himself as an efficiency architect, happiness optimizer, engineer and economist.

A recent tweet: "It started with aligning with our customers. We decided we would make really smart investing available to anyone." - @jonstein, Sept. 12

Twitter: @jonstein

Website: Betterment

19. Josh Ellidge

Ellidge in 2007 founded the blog SavingsAngel.com to help you live abundantly. The site is committed to solid principles of "loving your neighbor along with oneself."

"If you inspire others to save or earn more money, keep fighting the good fight! It's a David & Goliath battle - but families NEED you!" -- @savingsangel, Sept. 17

Twitter: @savingsangel

Website: SavingsAngel.com

20. Gerri Detweiler

Detweiler is an author, speaker, credit expert for Credit.com, host of "Talk Credit Radio" and mom to a horse-crazy daughter.

A recent tweet: "5 tips on how to get the best deal on a car loan http://www.today.com/money/5-tips- ... via @todaymoney #creditexperts" -- @gerridetweiler, Sept. 11

Twitter: @gerridetweiler

Website: GerriDetweiler.com

 

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The 10 Worst Financial Predictions of the Last 25 Years

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Throughout history, there have been stories of great mythical oracles who could predict events. The Greeks had Pythia -- a high-priestess in the Temple of Apollo -- whose foresight was said to be infallible. In the Nordic countries, Odin was known to carry the severed head of Mimir, who gave him secret knowledge and counsel. Even in today's modern world, many still follow the advice of an "Oracle from Omaha."

But the fact is that nobody can predict with any amount of certainty what will happen in the future, especially when it comes to financial matters. That doesn't mean that many haven't tried -- more and more of them as the financial media has grown -- but more often than not, those who do end up with egg on their face.

Here then, in no particular order, are the 10 worst financial predictions of the last 25 years.


Brian Lund has developed a list of "20 Books Every Investor Should Know About."

 

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As Rates Rise, Fewer Consumers Apply for Mortgages

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home loans mortgages real estate refinancing
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By Caroline Valetkevitch

NEW YORK -- Applications for U.S. home mortgages fell last week as interest rates edged up, an industry group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, declined 4.1 percent in the week ended Sept. 19.

The MBA's seasonally adjusted index of refinancing applications fell 7 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, slipped 0.3 percent.

Fixed 30-year mortgage rates averaged 4.39 percent in the week, the highest since May. They rose 3 basis points from 4.36 percent the week before.

The survey covers more than 75 percent of U.S. retail residential mortgage applications, according to MBA.

 

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Walmart Debuts Low-Cost Checking Accounts for 'Unbanked'

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Views Of Shoppers And Products During A Wal-Mart Store Grand Opening
Patrick T. Fallon/Bloomberg via Getty Images
PASADENA, Calif. -- Walmart is introducing a mobile checking account for its customers that will eliminate the overdraft and bounced-check fees traditionally charged by banks.

It is Walmart's biggest push into the financial services sector and its target is customers that have limited access to traditional banking.

The company's GoBank checking has no minimum balance requirements and the monthly fee of $8.95 is waived if a direct deposit of $500 is made each month.

Clearing the way for people with poor credit scores and little money, Walmart said Wednesday that credit bureau ratings and other scores typically used to determine eligibility aren't part of the process.

Daniel Eckert, senior vice president of services for Walmart U.S., said that the retailer's customers "feel they just aren't getting value from traditional banking because of high fees."

Walmart is reaching for Americans who have suffered in the wake of the recession. Many of those people are the retailer's core customers.

The Census Bureau said last week that median household incomes were $51,939 in 2013. Adjusting for inflation, that's 8 percent lower than in 2007, when the recession began.

Increasingly meager paychecks have forced many Americans just getting by to pay fees for the same basic transactions that people with more money don't.

Customers can receive payroll direct deposit earlier than their normal payday if their employer notifies GoBank of a deposit in advance.

GoBank checking accounts offer additional services to aid in budgeting. The account notifies customers in real time if a purchase they are about to make falls outside of their budget.

The "Fortune Teller" feature crosschecks the price of a particular item against a customer's planned income and other expenses.

In addition, customers can send money instantly to each other at no charge through either email or a text message.

Walmart Stores (WMT), based in Bentonville, Arkansas, is operating the new account through Green Dot's (GDOT) federally insured Green Dot Bank. The retailer already offers prepaid cards through Green Dot.

A MasterCard (MA) debit card can be linked to the GoBank account, which can be set up with a starter kit that costs $2.95. There is a 3 percent transaction fee for using an ATM that is out of network.

GoBank is exclusive to Walmart, which will have it available at its stores nationwide by the end of October. The company has more than 11,000 stores in 27 countries.

 

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Why I'm Investing in My Son's College Fund Before My IRA

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College savings, concept of saving for college
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There was a great article on DailyFinance in August showing why one couple isn't making their children's education their top priority. They are focused on funding their retirement first. While the math shows it is better to make sure you have your retirement accounts before funding college expenses, I think it is wrong on a different level.

As a parent, my first job is to teach my kids how to be successful in this world. It is my responsibility to give them the right tools and education to help them compete thrive, and become contributing members of society. I'm fully aware of the power of compound growth and how it can derail your retirement planning. I'm also aware my child has more "earning" years than I, so it would be in my best interest to take care of my retirement first. While I understand all of these facts, I'm making a bigger investment in my child. Here's why I'm ditching the traditional retirement advice and investing in my child.

What is a Parent's Job?

When we become parents, we become responsible for our children in every aspect until they can leave the home and be on their own. When you first think about having children, you have to start planning. My planning consisted of starting a 529 college savings account as soon as my son was born. I have a desire for my son to succeed in life. No matter how bad you feel the college expenses are or will be, it is hard to fight the consensus that a college degree is still necessary.

Yes, your child might have a fancy degree and only works part time. There is nothing I can do about that. What we don't know is where college and associated expenses will be in 16 years. I can't know what will happen so far ahead, but I can certainly plan for it. By helping my son get a college education, I give him the foundation for success. The rest will be taught as he grows up and learns how to earn his way through life. I feel this is a parent's No. 1 priority.

Education is Still Very Important

There are jobs that don't require a college education. No one can deny that. But with many other jobs, you don't even get a chance for an interview unless you have a college degree. When you go into a pool of applicants, you have to bring your A-game. If you don't have a degree, then you are just that far behind those who do. I have spoken with numerous companies and recruiters who provide grim chances for those without degrees.

College costs are out of control in this country. Student loan debt tops $1 trillion and is rising. Still, we have a business culture that emphasizes a piece of paper. Until that emphasis goes away, college and the accompanying degree are utterly important. In the latest Pew Research report, millennials with a college degree are earning $17,500 more on average per year than someone who has a high school diploma. In the same study, it shows college degree holders have a 3.8 percent unemployment rate -- while those with a high school education face 12.2 precent. These numbers alone show a college education is still important.

There is No Free Lunch

My parents gave me the gift of a free education. They worked hard to provide for our family and even took on the debt. They did this to give me a leg up on others who had to get student loans. By giving me the opportunity to go to college without getting a loan in my name, my parents enabled me to hit the ground running with no restrictions. It is much harder for a new graduate when he or she is starting in a massive debt hole.

While my parents afforded me this excellent opportunity, I never took it for granted. I worked ever since I was legally able. I worked while in college and made money to pay for stuff I needed or wanted. I had to keep my grades up to keep my education funded, and my parents expected certain things from me. If I didn't deliver, I would have to answer to them. This method showed me there was no such thing as a free lunch. My son will learn the same.

I have a plan to help my son pay for college. I'm slowly funding his 529 account, which will give him a nice chunk of his education funded by the time he goes to college. The key to my plan is I won't tell him about his savings account. Why? I don't want him to think he can goof off and do what he wants. He will be required to work in high school. He will be required to keep his grades up. He will also be required to save up money for college. We will be rewarding him just like a rewards credit card, but in reverse. When he saves a dollar for college, we will provide two. This is what the college fund will be for.

My Son is My Investment

While not a traditional idea for an investment, I feel my college education fund is an investment in my son. I invest most of my time and money in him while he grows, so why not see that through to fruition by helping him fund his education? I know the power of a good education, but I also know the power of learning how to meet and exceed goals.

Yes, I could be affecting my retirement savings, but the 529 account I'm funding has some quality index funds from Vanguard, which provide me with some serious compound growth. I will lose out on 16 years of full investments in my retirement, but I feel it's more important for me to funnel most of the money toward my son. He is my greatest investment, and my goal is to show him how to properly succeed in life. I'm investing in the tools for him to use throughout the rest of his life.

I choose to invest in human capital at this point in my life.

While I consider my son a massive investment along with his higher education, I will not neglect my retirement in full. Instead of just quitting on my financial security, I'll just delay it for some time. I created a debt payoff/savings plan some time ago when facing a mountain of debt. The system worked well for me, so I plan on implementing it with my son's college investment. In the beginning, I'll funnel 80 percent of my extra funds into my son's 529 account. The other 20 percent will be placed into my Roth individual retirement account. I already fully fund my 401(k), so not fully funding my Roth IRA is OK. As the years go by, I will slowly reduce his contributions and increase mine. I also have an individual investment account, which enables me to increase my passive income.

All will not be lost when my retirement accounts are not funded to their fullest extent. I am a huge advocate for earning more on the side, so when I figure out ways to make a little extra money, I will do it. Any extra money coming into my budget will be allocated appropriately for my retirement. My main focus will be solely on providing my son with the necessary tools to approach this life with an open mind. Funding his education over my retirement is more important to me than the traditional advice. I choose to invest in human capital at this point in my life.

Grayson Bell is the founder of Debt Roundup, a personal finance site dedicated to helping people fight debt and grow wealth. He is also an avid home brewer, is a car junkie and loves all things DIY. He also shares his thoughts on how to make money at Sprout Wealth.

 

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New Home Sales Race to 6-Year High in August

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A Toll Brothers Inc. Development Ahead Of New Home Sales Data
Mark Elias/Bloomberg via Getty ImagesA new Toll Brothers home under construction in Jupiter, Fla.
By Lucia Mutikani

WASHINGTON -- Sales of new U.S. single-family homes surged in August and hit their highest level in more than six years, offering confirmation that the housing recovery remains on course.

The Commerce Department said Wednesday sales jumped 18 percent to a seasonally adjusted annual rate of 504,000 units. That was the highest level since May 2008 and marked the second straight month of gains.

July's sales were revised to show a 1.9 percent gain instead of the previously reported 2.4 percent drop.

Economists polled by Reuters had forecast new home sales rising to only a 430,000-unit pace last month.

While the new home sales segment accounts for only 9.1 percent of the housing market, the increase last month should allay fears of renewed housing weakness after a surprise decline in home resales last month.

A survey last week showed homebuilder sentiment hit its highest level in nearly nine years in September, with builders reporting a sharp pick-up in buyer traffic.

In August, new home sales soared 50 percent in the West to their highest level since January 2008.

Sales in the populous South increased 7.8 percent to their highest level in 10 months. In the Northeast, sales rose 29.2 percent, but were flat in the Midwest.

Despite the rise in sales, the stock of new houses hit its highest level in four years. At August's sales pace it would take 4.8 months to clear the supply of houses on the market. That compared to 5.6 months in July.

Six months' supply is normally considered a healthy balance between supply and demand.

 

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Gen Y Eyes Alternative Paths to the Dream of Homeownership

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By Juliette Fairley

In the pursuit of the Hollywood dream at age 25, Shequeta Smith moved from North Carolina to Los Angeles in 2004. She rented a room from a friend and began visualizing a place to call her own. "I wrote down exactly what I wanted on a piece of paper, and I still have that paper," Smith told MainStreet.

The screenwriter and director imagined paying only $600 for a rental with a parking spot in Sherman Oaks, one of the wealthier enclaves in the sprawling city. But now a decade later she is looking to relocate to become a homeowner. Smith is one of the 48 percent of millennials who plan to move so they can own in the next five years, according to a study by The Demand Institute.

"Most millennials want to own a home," said Louise Keely, president of TDI and senior vice president with Nielsen (NLSN). "But those who are currently renting may have trouble saving money for a down payment, because apartment rents have increased more quickly than their income."

"It's hard to save money for a down payment, because of the cost of living," Smith said. "But once I make it in the film industry, I will buy a house outright in Charlotte and travel back and forth to Los Angeles for filmmaking."

The Dream of Homeownership with a Twist

TDI's "Millennials and Their Homes: Still Seeking the American Dream" found that the average millennial has $5,000 in debt and only $3,000 in savings outside of retirement. "Their net debt doesn't look like they are in a position to put a sizable down payment on a house, so saving money is an issue for millennials," Keely told MainStreet.

As a result, more millennials are looking to alternative approaches to home ownership, with 69 percent saying they'd consider lease-to-own as one way.

"Many are open to alternative approaches to housing finance, including single-family rentals and hybrid contracts such as lease-to-own," said Jeremy Burbank, vice president with TDI and Nielsen.

A Different Job Market

That's partly because the job market that millennials face differs from that of young adults in previous decades. "Unemployment is higher for millennials than older adults, which has slowed their household formation and their movement into homeownership," said Keely.

Although the study further found that 44 percent of millennials think it's hard to qualify for a mortgage, most millennials are undeterred about long-term aspirations to own a home. About 51 percent of college grads aged 30 to 34 with debt own homes, compared to 67 percent of college graduates with no debt. The national average of homeownership is 65 percent.

"The homeownership rate is lower for those who have student loan debt, but it's still higher than those who didn't go to college at all," said Keely. "Our findings indicate that student loan debt delays homeownership but does not cripple it."

Multiple Alternatives

One alternative to traditional home-buying is leasing-to-own, which locks a tenant in to the right to buy a home at a later date at a set price after putting down a non-refundable deposit. In some cases, part of the monthly rent goes toward the downpayment.

Other alternatives to a mortgage include single family rentals, shared equity and long-term leases. Types of shared equity include cooperatives, private sector subsidies and land trusts. "An example of shared equity homeownership is when a municipality owns the land and builds the house while the homeowner owns the structure but not the land," Keely said.

Long-term leases are another alternative to one- or two-year rentals by extending leases to 30 years, for example. "In the U.K., a leasehold is when you have a long-term lease as opposed to a freehold, where you own the property outright," said Keely. "With a long-term lease, the resident has the comfort of staying in the home a long time."

Gen Y Housing Boost

Despite their financial circumstances, the study found that millennials will spend $1.6 trillion on home purchases and $600 billion on rent in the next five years. "Millennials are an important factor in housing market activity," Keely said. "Their aspirations to own homes, move to the suburbs and drive a car are similar to [those of] older adults."

Because many are still single with no children, millennials also contribute to the economy in a unique way. "They move more often than older adults, which creates turnover," said Keely. "Moving contributes to the economy quite a bit. It's a trigger for other types of consumption, creating income and revenue for various industries."

 

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