With the Federal Reserve keeping interest rates at historically low levels, investors have been looking for investments to provide them the yield they can't get from bonds or banks. That, however, is pushing investors into riskier and riskier assets. One of the most risky right now is probably Whiting USA Trust I .

What is Whiting USA Trust?
Whiting is one of those investments that seems too good to be true... because it is. Most sources have the yield listed at around 90%. Holy cow! But that yield isn't as good as it looks, making Whiting the perfect example of why you need to understand exactly what you own before you buy.

Whiting is a trust that was set up in late 2007 by Whiting Petroleum Corporation . The trust owns a "term net profits interest that represented the right to receive 90% of the net proceeds from Whiting's interests in certain existing oil and natural gas producing properties." That sounds a bit arcane, and it is. What it means, however, is that Whiting USA Trust I gets "90% of the net proceeds from the sale of production of 9.11 million barrels of oil equivalent (MMBOE)" from a collection of wells.

(Source: Public domain, via Wikimedia Commons)

That's basically equal to 8.2 MMBOE. And if you like oil and gas, this could be a perfectly fine option for getting direct access. However, here's the rub: After the trust has sold the 9.11 MMBOE, it terminates. It just shuts down and goes away. By design, the shares of Whiting USA Trust I will be worth nothing.

This, however, isn't some devious and hidden fact. From the trust's FAQ page: "What will be the value of the units when the trust terminates? A -- Zero." And the time until zero hour hits? Again from the FAQ page: "How long are the trust's distributions expected to last? A -- Based on independent engineering at December 31, 2013, the trust is expected to terminate in March 2015." Basically, early next year, the trust will have pumped the 9.11 MMBOE that triggers its termination.

What's it worth?
That begs the question of what Whiting USA Trust I is worth. The simple answer is that the shares are worth nothing in and of themselves, because they don't actually represent any tangible assets. The trust is worth only what dividends it pays. The most recent distribution was in August, and amounted to roughly $0.56 a share. If the trust terminates in March, trust owners will get two more distributions plus about a month or so of operation in a sort of stub period.

The math is pretty easy. Whiting USA Trust I's value equals $0.56 plus $0.56 plus around $0.20 -- or just less than $1.40. I'm being generous on purpose because oil price movements are what dictate the payment. (It's worth noting that oil prices have been heading lower, so my estimates are likely on the high side.) Even with such mathematical largess, the point is painfully clear. But Whiting USA Trust I was recently trading at more than $2.40 a share.

Source: Chspf, via Wikimedia Commons.

That's wrong, right?
I wish I could say that this was, indeed, a mistake. But it isn't. In fact, in the trust's August distribution announcement, it basically said investors are overpaying: "to the extent that the Trust units are trading at a price substantially in excess of the aggregate distributions that may be reasonably expected to be made prior to the termination of the Trust, the market price decline in Trust units is likely to include one or more abrupt substantial decreases."

That's as close to "don't buy this" as you are likely to see any company say publicly. The scary part is that Whiting USA Trust I has been so open about what is going to happen -- and still investors are buying the trust units at what is almost sure to be an inflated price. If you own Whiting USA Trust I, I suggest you heed the company's advice and expect price declines. If you're looking at Whiting USA Trust I because of its insane yield, move on to greener pastures. And if you're searching for yield in increasingly arcane places, make sure you know what you're buying.

Wanna know a secret about me?

I used to be a general contractor. Yep -- for about two weeks.

I was building up my rental portfolio and figured, "Hey...as long as I'm doing all this work on my own rentals, I might as well do it for other people, too."

Thus "Open Door Maintenance" was born. And within a few weeks ...died.

You see, I quickly learned that "being handy" and "being good at running a contracting business" were two TOTALLY different things.

I was not a good contractor.

I realized you don't need to be a general contractor to do most work around your home or at your investment properties, and you don't need to be super handy either. You just need to know how to do a few simple tasks. This is why I was excited when Bill from over at 1st-Inplace Home Inspections sent me this infographic. It's excellent and shares some really great projects that any real estate investor could handle, as well as some safety tips for doing them yourself.

Related: 5 DIY Investment Property Maintenance Tasks Every Investor Should Know

Enjoy it, and let me know what you think by leaving a comment below! And of course, don't forget to tweet or share this post on your Facebook!

DIY home projects to save you money!

 Special thanks to Bill from 1st in Place Home Inspections for this infographic!

This article originally appeared on Bigger Pockets and is Copyright 2014 BiggerPockets,

With 266 Boeing customers ordering 12,100 737 units since the plane's introduction, Boeing's  single-aisle airliner is the best-selling commercial airplane in history. Perversely, that's posing something of a problem for Boeing.

Boeing's 737 line of products -- one of the company's most popular and reliable cash producers. Photo: Boeing.

Hoping to keep up with demand for the 737, Boeing confirmed this month that it will once again increase the rate at which it produces 737s. Effective 2018, Boeing plans to begin churning out 737s at the rate of 52 planes per month. As Boeing points out, that works out to 620 planes built per year -- the highest rate of 737 production ever, and a good 10-planes-per-month faster than the rate at which Boeing puts 'em out today.

But here's the amazing thing: Even Boeing's latest ramped-up rate of 737 production may not be fast enough to quench customers' thirst for new 737s. A quick glance at Boeing's order book shows you why. To date, airplane orders received -- and canceled -- at Boeing through mid-August 2014 stand at:

• 802 "gross" orders for various flavors of its 737 regional airliner
• 261 orders for 777s
• 48 orders for 787s
• four 767s
• and a pair of 747s.

As Boeing noted in its update, no new cancellations were reported over the past seven days. As a result, Boeing's 1,117 gross plane orders to date, minus the 106 reported order cancellations, leave Boeing's order book chock-full with 1,011 net new orders for the year.

(In other news, Boeing also noted that the past week saw only one new order for its planes -- specifically, a 747 transport going to AirBridgeCargo Airlines. According to S&P Capital IQ, AirBridgeCargo is a subsidiary of Russia's Volga-Dnepr Group -- so apparently, American sanctions against Russia for its "invasion" of Ukraine earlier this year don't extend to denying it airplanes from Boeing.)

What it means for investors
Russia and its 747s aside, though, this week's Boeing update has two key takeaways for owners of Boeing stock. Firstly -- Boeing's backlog isn't getting any smaller.

$440 billion strong and growing, Boeing's backlog is something of a double-edged sword for Boeing. On the one hand, of course, Boeing's in business to sell planes. The fact that its customers are hungry to buy the planes that Boeing builds is certainly good news for Boeing stock in the long run.

In the short term, however, the second takeaway comes into play, as we see demand continue to run away from Boeing's ability to supply it. Again, we're talking about 802 new orders taken in through just 10 months of this year. After cancellations, that number drops to 722 net orders, granted. But a production ramp to "only" 620 planes still won't be enough to slake demand. (And even that acceleration in production won't happen till 2018). This suggests that Boeing could encounter tighter profit margins as it is forced to hire new workers, pay existing workers more overtime, and maybe even open new plants or production lines to meet demand.

Make no mistake -- insatiable customer demand is a nice "problem" to have. But do keep an eye on those Boeing profit margins.

The Internet is brimming with tales of how your complete lack of knowledge surrounding credit scores is costing you big every day. We get it. How about some good news for once?

Finding out you had it wrong all along doesn't have to be a bad thing. In fact, you could be relieved to learn you were mistaken. The following are common misconceptions about credit that you'll be happy to know aren't true at all.

7 Myths About Credit Scores Explained

1. Closing my oldest credit card will shorten my credit history
One of the most pervasive credit myths, closing an old credit card account will not lower your credit score due to a reduced credit history. Closed accounts in good standing actually stay on your credit report longer than negative entries, thus maintaining the positive credit history that attributes to a higher score.

As credit bureau Experian explains on its blog: "Even if closed, the accounts that have no late payment history remain on your credit report for 10 years from the date closed. As long as the positive information remains, it contributes to a stronger credit history."

That's not to say, however, that closing a credit card account can't hurt your score. If you are presently carrying debt -- whether it's an outstanding loan or another credit card balance -- eliminating a portion of your available credit will increase your credit utilization ratio. And that's bad news for your score.

2. Checking my own credit will ding my score
It's true that multiple credit inquiries can have a negative affect on your credit (depending on the circumstances -- more on that in No. 6), but not if you're the one doing the inquiring. You could check your credit every day if you wanted, with no harm to it.

In fact, staying on top of your credit reports and scores is a smart way to help catch errors or instances of fraud right away. The sooner these problems are addressed, the faster your credit will recover.

3. Working with a credit counseling agency will be reported to the credit bureaus
Simply seeking out the advice of a credit counselor will not be reported to credit bureaus and won't affect your scores positively or negatively. However, the actions you take at the recommendation of a credit counselor can impact your scores.

Credit scoring agency Fair Isaac explains on its website:

For example, choosing to make partial payments or agreeing to settle for less than the full amount on accounts may be regarded negatively by the FICO® scoring model. Additionally, any late payments occurring either before or after you began the plan may also be regarded negatively.

4. Earning a lower income means being stuck with a lower credit score
Like credit counseling, your income has no correlation to your credit score. Claire E. Murdough, a contributing writer to personal finance blog ReadyForZero, explained: "A high earner can have terrible credit and a low earner can have excellent credit. Just because you make a good wage does not mean you'll have high credit and salary does not necessarily indicate financial responsibility."

She added, "Instead of focusing on simply making more, it's helpful to focus on the ways that you can work to solidify a solid financial foundation."

5. Paying off my cards will prevent my score from increasing
A common credit myth is that you have to carry a balance on your credit card in order to generate activity. The truth is that paying off your bill in full every month is the best thing you can do for your credit rating. As long as you are using the card regularly, the activity will be reported to credit bureaus regardless of whether or not you pay the entire balance.

Credit Reporting Expert and President of Consumer Education at SmartCredit.com, John Ulzheimer, stated on the site that, "Another thing to consider, along with expensive interest, is the impact on your credit scores of carrying a balance ... Carrying a large balance relative to your credit limit can have a negative impact on your credit. Less than 10% should be your target."

6. Rate shopping for a loan will result in several dings to my credit score
When you apply for a credit card or loan, the lender performs a hard pull of your credit report to determine your creditworthiness. One or two of these hard pulls can cause a slight, temporary decrease in your credit scores. Many inquiries over time can result in a significant decrease in score and is a big red flag to creditors.

That is, except when you're shopping around for a loan. Since getting the lowest interest rate possible on a home, auto or student loan is incredibly important, credit bureaus understand you will want to get quotes from several lenders before settling on a deal.

Fair Isaac explained: "The FICO score ignores inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping."

It's recommended that if you are looking for a loan, keep rate shopping limited to within a 30-day period to protect your credit score.

7. A low credit score could cost me my job
This last myth is more about the perceived consequences of a low credit score, but bears discussion nonetheless. Although it's not uncommon for employers to review certain parts of your credit report as part of the hiring process, no one will ever look at or consider your credit score. These two words are often used interchangeably, but mean two very different things.

"It is illegal for credit scores to be used as a tool for screening potential employees," Kimberly Foss, certified financial planner and founder of Empyrion Wealth Management, told Daily Worth.

An employer can only pull your credit report with your permission, and even then, they don't get the full picture. Essentially, they're looking for major warning signs of irresponsible behavior -- but your score, whether high or low, should never be a determining factor.

This article originally appeared on gobankingrates.com.

Real estate can be a very hectic business. There are often many projects going on all at the same time, and every one of them needs attention right this second.

I can be a "Ready...Fire! Aim..." kind of guy, so it was important for me to learn how to manage (or at least try to manage) my day effectively. I've read a ton of articles about time management, have tried a billion different methods -- and have come upon seven steps that I (try) to implement into my daily routine to help me buy more real estate. They are as follows:

7 Steps for Higher Daily Productivity in Real Estate

1. Add four real estate agents to a contact list.

I always consider myself "in the market" for a real estate deal. If an agent brought me a good deal, then I would do everything in my power to go out and find the capital for it.

The key is to have agents bring you deals or new listings. I started keeping a spreadsheet of all the agents I have done deals with in the past or who I have met. Any time an agent gives me a business card, they are added to my list.

I start with a follow up email saying what type of deals I'm looking for and telling them a little bit more about myself. Then I make sure to follow up at least every two weeks and check in to see if there are any deals they have that would be interesting to me.

Most times agents are very receptive and welcome having an investor in their back pocket in case a deal requires all-cash or a quick close. Aside from giving you the opportunity to buy more deals, it is a really great way to expand your network. You never know what opportunities may come up.

Your daily task is to add four people to this list.

2. Prioritize your money.

If you want to buy real estate deals, the harsh reality is that it usually takes a chunk of your own change. Yes, you can find investors, but the more money they put in, the better terms they get. Ideally, you want to put in a significant amount yourself. This will make the investors more comfortable and also hopefully make you more money in the long run.

In order to have money to invest in real estate deals, you likely need to sacrifice in other areas. Yes, being frugal by eating in, not buying the new car and spending less on iTunes helps. Still, I have found that the real key for me has been to not invest (at least as much) in other areas.

For example, for a long time I was having a lot of money taken out of my paycheck and put directly into a 401K investment plan through work. There are a lot of benefits to investing in a 401K, and I'm not saying you shouldn't. I just decided that real estate was my priority and stopped putting as much money in the 401K so that I could save for my next rental property.

Many people are in a situation where they live paycheck to paycheck, and saving seems impossible. I have lived most of my life that way, even when I did own real estate with an investor. My advice is to start saving a little bit -- hell, even $10 a week. But make sure that it is actually saved, and not dipped into the next time you want to go to dinner at the new restaurant in town.

Eventually, you will make more money -- you simply have to believe that -- and when you do, you will already have the saving skills ready!

Your daily task is to not spend money on something frivolous and to put that money into an account that you don't touch -- except for real estate purposes.

3. Plan your day the night before.

I stole this one from good ol' Ben Franklin.

Ever find yourself sitting in front of the television on Sunday evening wondering where the day went? Happens to me all the time -- particularly since the advent of NFL RedZone! Oftentimes, I will have gone out on Saturday night and not planned what I want to do on Sunday, which makes it easier for me to get drawn into the commercial-free black hole known as Internet streaming television. Maybe for you it's not football -- maybe it's doodling or sleeping.

None of these things are inherently bad, but they don't help you buy more real estate.

I am the most productive when I plan my day out. Your plan may never be perfect, but you will be in a way better spot than if you didn't plan anything at all. It's too easy to get off on a tangent. I plan what I'm going to eat, what I'm going to do, what I'm going to accomplish and even sometimes what I'm going to wear!

Yes, I know I may have some control issues, but the point is that a plan will improve your productivity as you head toward the goal to buy more real estate.

Your daily task is to plan your day the night before.

4. Get your real estate license.

This will count as an expense at first, but could help in a couple ways.

The first way is that you will learn more about real estate. The courses aren't terribly expensive, and they give you a ton of good information. I personally don't have the attention span to read through all the material, but I do use the books as a reference guide to this day. The basics of real estate can sometimes be overlooked on blogs, but they are really important and are often forgotten. First, and foremost, it's all about "location, location, location" -- and you will read that phrase about six billion times in most class materials.

The second thing that getting your license could help with is finding you a chunk of change. Representing yourself on a deal can be tricky, and there is certainly liability. I would recommend working under a broker or at least talking to a lawyer. However, if you are able to represent yourself (or even a friend) on a deal, then you can earn a chunk of change that could get you started on your first property (or second, or third, etc.). Hypothetically, you could approach an investor and say that you will put up your commission on a particular deal as your contributed capital. It may only be a small percentage, but it gets you started.

Your daily task is to spend a half hour working toward getting your real estate license.

5. Try to find chunks of change.

I use "chunks of change" to describe a large sum of money. A chunk of change is different for every person. When I was ten years old, a chunk of change was $20. Today it is much larger than that. I really like chunks of change because I find it is easier to do something with it and because saving money gradually is hard.

To take the real estate agent example, if you are an agent on a $500,000 deal, then you will likely get a commission check for around $7,500, less your broker's fee and whatever you need to save for taxes. If you are living paycheck to paycheck, as I used to, then this is tantamount to a pot of gold! Take this money and try to invest it into a property. $5,000 likely isn't enough on its own, but it's a start.

Chunks of change can come in many forms: inheritance, bonus, other investments, etc. I recently met with a very successful investor who owns close to 1,000 apartment units. When he was thirty years old, he took all of his money out of savings and used it to buy an apartment building in San Francisco. His chunk of change was his retirement savings.

I'm not necessarily advocating for you to be that risky, but my point is that you need to be creative in order to find your chunk of change.

Your daily task is to spend a half hour thinking of ideas to get a chunk of change, or working toward them.

6. Refocus your day at noon.

I stole this one from an email flier that I get on a daily basis.

Planning your day the night before is great, but it's just that -- a plan. Things happen: your boss gives you an assignment, your kid gets sick and needs to be picked up, or you simply forget to do something. That's fine, life happens. The key is to get back on track. Know your goals for the day, and make sure you have them prioritized. You want to do the most important things first. I know it feels good to get all the busy work out of the way, but it saps your best energy from the most important thing -- buying more real estate.

I constantly ask myself two main questions:

Can this be done tomorrow? If so, then stop doing it.

Is this what I planned to do today? If not, then ask yourself if it helps you buy more real estate. If the answer is still no, then stop doing it.

Your daily task is to spend ten minutes at noon to refocus your day.

7. Have a coffee meeting with a real estate person.

Coffee rocks! It's also cheaper than lunch. Force yourself to get out there every single day and meet someone for coffee. Your natural tendency right now is going to be to think of a reason why you can't. Your schedule is too busy, you don't like coffee, or you can't afford it.

Make the time, drink a cup of tea, and bring a cup of coffee for all I care. Hell, go Goodwill Hunting on me and meet someone for caramels. The point is to get out there everyday and grow your network.

Your daily task is to get coffee (or caramels) with a real estate person.

These are ways I try to improve and manage my day.

This article originally appeared on the Bigger Pockets Blog.

According to the most recent data, foreclosure activity in the U.S. is at its lowest level since July 2006. All foreclosure-related metrics dropped in September, including the number of homes repossessed, the number of properties set for foreclosure auctions, and the number of default notices issued.

Source: flickr user Nick Bastian.

While this is definitely a good sign, it doesn't necessarily mean that home prices are going to continue on their upward trajectory. Rather, it does mean that the housing market is returning to a "healthy" state. But what does that mean to you?

The data looks great
Foreclosure activity in the U.S. is now at an eight-year low. According to RealtyTrac, there were 106,866 foreclosure filings across the country, which is 8.6% less than in August, and represents a year-over-year drop of 18.6%.

In fact, overall foreclosure activity, which includes foreclosure notices, auctions, and repossessions, is now back down to pre-bubble levels, according to the report. The number of lender-repossessed homes in September dropped by 13% from the month before, default notices given to homeowners dropped by nearly 10%, and the number of homes set for foreclosure auctions dropped by 5.5%.

Why home prices may actually cool off now
Despite this good news, home prices aren't necessarily going to continue on their upward trajectory. Since bottoming in early 2012, U.S. home prices have gained nearly 25% in value, and have actually pulled back a little bit recently.

The foreclosure market was one of the big reasons for these gains. Generally, foreclosed homes sell for lower prices than traditionally sold homes. In fact, RealtyTrac also reports that the median sales price for a foreclosed home was 36% less than that of non-distressed sales. As foreclosures have been gradually working their way out of the market, home prices have naturally risen faster than they normally would, simply because there are fewer foreclosures holding the average price down.

There are other factors that could drive home prices a little lower in the short term. A big one is the seasonality of the housing market. Generally, summer is the peak selling time for homes, as kids are out of school, and it's simply more convenient to move. With summer ending, selling activity is probably going to cool off considerably.

Thanks to higher prices, activity may cool off even more this year than in most years. The recent mortgage application data shows purchase applications are actually 4% lower than they were at this time last year. The inventory of existing homes on the market has actually risen by about 24% in 2014 as sellers try to take advantage of higher prices, while the rate of sales has increased by just about 4%. The laws of supply and demand tell us that high inventory plus lower demand means prices are likely to drop a little bit.

What a healthy market looks like, and what it means to homebuyers
In a healthy market, real estate gradually appreciates by a low single-digit percentage. Gains like we saw before the market collapsed and the declines that resulted from the bubble bursting are not healthy.

Take a look at the chart below, which tracks U.S. home prices since 1991. The market of the 1990s was pretty healthy. The market of the past decade or so has not been healthy.

We may see a small drop in price as the market becomes healthy again as prices adjust to normal supply and demand dynamics again. However, without a massive amount of foreclosure activity, there should be much less volatility in the housing market going forward. In other words, if you have been putting off buying a home, you can now buy with a little more confidence.

Source: Medicare.

Nearly 50 million Americans are enrolled in Medicare, and for the retirees who are in the system, healthcare costs are one of the biggest concerns affecting their financial future. Over the years, retirees have gotten used to the constant uptick in healthcare costs. But recently, those costs have started to flatten out, and according to the latest news from the Department of Health and Human Services, Medicare recipients will reap the benefits of the slowdown in health care-spending growth. Still, the question most retirees are asking is whether those flat costs will continue into the future, preserving more of their meager cost-of-living increases from Social Security to keep for non-medical expenses.

How Medicare costs got held in check
Earlier this month, HHS Secretary Sylvia Burwell announced that the standard monthly premiums and deductibles for Medicare's Part B program, which covers the majority of costs for doctors' visits, ambulance services, and outpatient care, will remain unchanged in 2015. Most participants will pay $104.90 for their Part B monthly premium, while those in certain upper-income ranges will pay higher amounts. Singles making between $85,000-$107,000 will pay $146.90 per month, while total costs rise to $209.80 for singles making up to $160,000, $272.70 for those earnings up to $214,000, and $335.70 for those with incomes above $214,000. The income thresholds are exactly twice as large for joint-filing couples.

Source: Medicare.

Moreover, the deductible for which Medicare participants are initially responsible will stay the same as well. Enrollees will have to pay a deductible of $147 for their coverage.

Indeed, the announcement continues a favorable streak for the program. The same premiums were available not just last year but in 2013 as well. Moreover, current premiums are actually below the rates that Medicare participants paid in 2011 .

Burwell didn't hesitate to attribute the cost containment to the Affordable Care Act. "The stabilization of Part B premiums is another example of how we are containing health care costs to provide a more sustainable and affordable health delivery system," Burwell said. She also cited statistics showing that growth in Medicare spending per capita has risen just 0.8% annually over the past four years, well below the rate of GDP growth.

Not every aspect of Medicare costs remained the same, though. Deductibles for Medicare Part A, which covers hospitalization and other inpatient costs, will rise $44 to $1,260 in 2015. Skilled nursing facility stays will also see a slight increase in costs, with a $5.50 increase to $157.50 per day between the 21st and 100th days of skilled-nursing care.

Sharing in the benefits -- while they last
Given that Medicare is a public program, it only makes sense for participants to get a cost break when the program performs better than expected. The Congressional Budget Office released a report in August looking more closely at the trends in Medicare spending, noting the outright declines in inflation-adjusted spending per participant. For the near future, the CBO sees Medicare cost growth to continue to be modest.

Source: Medicare.

The question is whether the continued aging of the population will eventually create a demographic problem for Medicare. As Baby Boomers retire, they become eligible for Medicare at age 65, but so far, the bulk of them are in the early years of their retirement where they're still relatively healthy. The potential crisis could come 10-20 years down the road, when the oldest Baby Boomers could have much higher demand for healthcare that could greatly increase costs for the program as a whole.

Some believe, though, that no such crisis will occur. Greater prevalence of generic drugs has reduced prescription costs dramatically, and patients have cut back on medical procedures that aren't essential to their health. Efforts to educate Americans about the true cost of their health care might also be playing a role in containing spending. It's unclear whether those recent trends are tied to the current state of the economy or whether they represent a fundamental, longer-lasting shift in behavior. But the optimism is encouraging for those looking to keep healthcare costs in check for those living on fixed incomes in retirement.

News that Medicare premiums will once again remain flat in 2015 is welcome for retirees looking to make ends meet. If the reversal in past trends to skyrocketing healthcare costs proves permanent, then Americans both young and old stand to share in the gains for years to come.

While the latest news proclaims that the economy is rebounding, the truth is that most Americans are wasting their money. Spending is up, which is good for the economy — but can spell bad news for consumers on a personal level.

"Consumers who find themselves mired in debt are serving the larger economy at great personal sacrifice," said Stuart Vyse, professor of psychology at Connecticut College and author of "Going Broke: Why Americans Can't Hold on to Their Money."

"The economy runs on consumption, and as a result, personal savings is never mentioned because it is considered counterproductive and a drag on the economy," Vyse said.

According to the Employee Benefit Research Institute's (EBRI) annual Retirement Confidence Survey, Americans are living longer — and they do not have anywhere near enough saved in their bank accounts for retirement. In fact, the report found that the majority of Americans (57 percent) have less than $25,000 in total household savings or investments.

Where and How People Spend Money Instead of Saving
Certainly recent economic hardships have reduced disposable income and the ability to save for many, but are there other factors influencing how Americans spend money? We asked financial experts why Americans can't seem to keep their money in their bank accounts.

1. Lack of Personal Finance Education
"One of the main reasons that people don't save money in the short- or long-term is that they're simply unfamiliar with concepts such as setting a monthly or annual personal budget and saving for retirement," notes Andrew Schrage, co-owner of MoneyCrashers.com.

2. No Emergency Savings
Too many people have experienced unexpected financial hardship, caused by being out of work for long and short periods of time, or having a car breakdown or health crisis that an emergency fund could help cover.

"Despite how high a salary might be, one is likely to be broke due to the lack of preparation for emergencies," said Xavier Epps, owner of XNE Financial Advising, LLC in Woodbridge, Va. "Emergency savings is the key to financial success and without it, you're just making it more difficult to be financial stable."

According to the Bureau of Economic Analysis, Americans only saved 2.5 percent of their income on average for the month of April, 2013.

"Consumers should aim to save much more in order to cover unexpected expenses and possibly job loss," recommended Epps.

3. High Inflation
Some personal finance experts point to inflation as a big factor in suppressing people's ability to consistently add to their bank accounts.

"Our government deficit spending has skyrocketed, and the main cost of that spending is weaker buying power for the dollar," said Brian Luftman, founder and president of American Farm Investors in Lexington, Ky.

"Our government says inflation is at 3 percent, but Americans are paying significantly more for food, heating and cooling bills, gasoline and health care," Luftman said. "All of those costs have virtually doubled since 2008, and very few Americans are making any more money than they were in 2008. I think real inflation is 10 to 15 percent a year, and I don't see that changing."

Photo credit: SimpleIllustrations

4. Overspending Made Easy
"With social media like Facebook and Twitter and we can see what everyone in our own social circle is doing, what they are purchasing, and where they are eating, traveling and shopping," said Rachel Parrent, community engagement manager for Vantage Credit Union. "Many times it makes us believe that if they can afford it, so can we."

Simply put, too many people spend money they haven't earned.

"People fall into bad habits like eating out regularly or thinking that spending a little here, a little there won't amount to a lot by the end of the month," said Kathy Palmer, vice president of marketing at Vantage Credit Union. "Credit cards and electronic purchasing make it much easier to spend than having cash in your pocket."

These social pressures and the ease of spending combine to create an environment that "places enormous burdens on self-control" and how people spend money.

"All of the barriers to consumption have been removed: you can shop 24-hours a day, with or without cash on hand," Vyse said. "The urge to purchase something can be satisfied in minutes without ever leaving home."

5. Taking on Big, Long-Term Loans
"Perhaps the worst mistake people make is to assume large, long term debt burdens that are difficult to escape without the certainty of enough sustained income to support them," Vyse said. "In today's world, the most common examples are student loans and mortgage loans. If you have calculated incorrectly or if your income drops, these kinds of debts can have a dramatic effect on your life and well-being."

Should circumstances change and the borrower is unable to make monthly payments toward these debts, there is no quick-fix solution.

Considering that the graduating college class of 2012 accrued an average of $29,400 in student loan debt, an increase of 63 percent in under a decade, rising college costs definitely play a role in the ability to save.

"By having to make significant monthly payments for student loans shortly after graduating, it can be virtually impossible to start an emergency fund or begin saving for retirement," Schrage said. "It can even make staying on top of monthly bills a challenge, which often leads to credit card debt."

Brian Frederick, JD, CFP of Stillwater Financial Partners in Scottsdale, Ariz., adds that student debt doesn't just affect younger generations, but parents as well.

"I'm seeing more and more people sacrifice their own retirement savings needs and run up large credit card balances to fund their children's college," Frederick said. "This can result in credit card debt of $20,000 and up at high interest rates — without a lot of excess cash flow to pay down the debt, they just keep paying the interest and not a whole lot toward principal."

Tips to Jump-Start Your Bank Account
Devotees of personal finance guru Dave Ramsey know that the first step to gaining financial independence is putting away $1,000 for emergencies. Other financial experts recommend an even bigger emergency fund of three to six months of expense, to act as a buffer.

To get there, financial experts recommend eliminating everything but the basics to build up that emergency fund. That can mean cutting your cable service, cooking at home, trading high-lease cars for low-cost transportation, hosting yard sales or finding another job to supplement your income. It's drastic, but a necessary way to get through, and prepare for, some tough times.

"Look for ways to cut or eliminate your monthly expenses and bills," Schrage said. "Limit personal purchases only to those that you actually need, and clip coupons to save on groceries. All of these ideas should make for the ability to save at least a modest amount each month."

In addition to limiting spending, Vyse advised cultivating a habit of saving. He recommends having a certain percentage of deposits automatically diverted to a savings account.

"This way, money is saved no matter what else happens, and it does not require a deliberate action on your part," Vyse said.

This article originally appeared on GoBankingRates.com.

Warren Buffett has been on the media circuit over the past few weeks, appearing on CNBC as well as speaking at Fortune's "Most Powerful Women" summit.

Never one to shy away from speaking his mind, the Oracle of Omaha didn't disappoint this week either. He let the world know his thoughts on some financial wizardry for the everyday American and then weighed in on the 2016 presidential election.

Financial wizardry for the average Joe
Looking for a way to short-change interest rates? If you are, look no farther than this method, one that Buffett calls a "no-brainer." It's really easy actually, even without a Bloomberg Terminal, primary brokerage, or seven figures in the bank.

Just take out a mortgage and buy a home. Or, if you already own your home, consider a refinance if you haven't in the last few years.

If interest rates rise -- which most experts think will occur sometime in the next 12 to 18 months -- then taking out a fixed rate mortgage today is a great way to hedge against that likelihood. If rates do decline further, you can always refinance, and if rates rise, you can simply keep paying your monthly payments and enjoy that below market rate for the next 30 years.

In typical colloquial fashion, Buffett said of the 30 year fixed rate mortgage, "It's a 30-minute instrument if you've been wrong on interest rates and it's a 30-year instrument if you've been right on interest rates."

As far as Buffett is concerned, this is a very convenient and powerful way for Main Street households to apply Wall Street hedging strategies for long term financial success.

Buffett the political pundit?
Buffett has had quite the career beating the stock market with his value oriented stock investments, so he certainly has some credibility as a prognosticator. But what about politics? 

Speaking at Fortune's "Most Powerful Women Summit" last week, Buffett predicted that Hillary Clinton would win the White House in the 2016 presidential election. As of yet, Clinton has not formally announced her intention to run, though many in the political arena expect her to announce her candidacy in the coming months. 

He went as far as to quip that he was so positive that one could "bet money on it," and that Clinton would announce her campaign "as late as possible."

It's too early to change his nickname to the "Oracle of Washington," but nevertheless, it's an interesting statement from the world's greatest investor.

In 2013, China installed 26 gigawatts of solar and wind power. That's roughly five times as much as was installed by the United States, the second largest renewable power player. The pair spent nearly $100 billion combined last year. But, perhaps surprisingly, a roughly $1 billion utility plant retrofit that recently went live in Canada may have the bigger long-term impact.

Headlines
There's no question that solar, wind, and other renewable power options are a huge opportunity to improve the environment. And, for those with both an environmental eye and a financial bent, there's an opportunity to make money because growth within the industry has been swift. The amazing customer growth statistics at SolarCity  are proof.

Since 2009, the company's customer base has grown at more than 100% a year. No wonder the price of the company's stock has skyrocketed more than 300% since it went public. The only thing is, pretty much everyone on Wall Street sees what's going on. And while such renewable power technology is transformative, there are other efforts taking place in the energy space that could be even bigger.

SCTY data by YCharts.

Clean tech of a different sort
One sleeper technology that's finally coming to fruition is carbon capture and sequestration. SaskPower in Canada has the pleasure of being the first utility in the world to go live with the technology at utility scale. SaskPower retrofitted the tech onto an existing 110 megawatt coal-fired power plant at a cost of around $1.2 billion (U.S.). It is expected to capture up to 90% of the carbon dioxide produced from the plant. The captured carbon will be sold into the energy industry for use in drilling activities.

While SaskPower may be the first to flip the switch, it isn't the only power company working on carbon capture. For example, Southern Company is in the process of getting its 580 megawatt Kemper coal-fired power plant up and running. The big difference here is that Kemper has been built from the ground up to include carbon capture. NRG Energy (NYSE: NRG) is also working on carbon capture at a 240 megawatt coal plant, though, like SaskPower, it's a retrofit. Both Southern Company and NRG Energy plan to sell the carbon dioxide they capture to the energy industry. The takeaway here, however, is that, despite high costs and no track record at the utility scale level, carbon capture is gaining steam. 

(Source: XTUV0010, via Wikimedia Commons)

Clean coal to the rescue?
While you may hate coal, this enabling technology is one to watch closely because it could be huge for the environment. Why? Because around 40% of the world's power comes from coal and roughly two-thirds from carbon-based fuels.

In other words, despite all the money being spent on renewable power, carbon fuels still rule the roost. Cleaning these up, then, would have a much bigger impact today than waiting for renewable power to displace carbon fuels.

But the fly in the ointment is the cost. According to the Congressional Budget Office power from coal plants with carbon capture is likely to cost as much as 75% more than power from a coal plant without. And, according to the U.S. Energy Information Administration's projections, power from coal with carbon capture would cost roughly 80% more than onshore wind and just under 15% more than photovoltaic solar. Offshore wind and thermal solar would remain more costly.   

But the cost overruns and delays at Southern's Kemper plant paint an ugly picture of the reality of carbon capture. The plant was expected to cost $2.6 billion, but is going to cost more than $5.5 billion. The SaskPower plant also saw a price increase, though a far more modest 10% or so. Essentially, both projects highlight the problem: an already expensive technology that winds up costing more than projected. And both got a helping hand from their respective local governments, though the same could be said of many renewable power alternatives.  

Although carbon capture proponents say costs will come down as more companies invest in the technology, that may not happen because costs are currently so high. A chicken and egg conundrum. However, if a price tag is placed on carbon and experience allows for costs to drop, it's reasonable to believe that the cost of carbon capture technology will fall. The second round of carbon capture installations will be the real test.

If you're interested in getting involved, Southern Company is a part owner of the technology it's installing and hopes to license it to other utilities. If you'd prefer to avoid a direct investment in a utility investing in carbon capture, Southern's partner at the Kemper plant is engineering and construction player KBR . KBR will clearly have developed important skills that it can offer utilities looking to build carbon capture plants, once Kemper is complete.

Even if you don't want to get involved, and still hate coal, don't overlook the massive impact that cleaning coal, and other carbon fuels, could have on the environment. Like renewable power, carbon capture could truly be a transformational technology.

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If you want to pick stocks and beat the market, you need to understand a company's cash flow. Cash allows the company to grow and invest in itself, it allows it to pay its talented workers, and, most importantly, it's the stuff that will hopefully make it back to you as an investor.

My insights below are largely adapted from Working Capital Management by Bernd Heesen. Heesen's book is focused on working capital from a business-manager's perspective, but there's a lot that investors can learn from this book that will help them find great investment opportunities.

A word before we start: This approach works primarily for asset-intensive businesses like manufacturing companies. It's not an approach that you can use with banks or insurance companies, and will typically work poorly for intellectual-property based technology and services companies.

Being able to afford latest technology is what matters
To be successful in the long term, companies need to keep up with technological developments. Think about it this way: today we find a mobile data connection of at least 7.2 Mbit/s essentially all over Germany, while just 15 years ago most house-olds were satisfied with their 100 times slower ISDN line at home. You wouldn't sign a contract with Deutsche Telekom today, if you were only offered ISDN speed, would you?

But to keep up with the latest technology requires a substantial amount of money.

For this reason, using a company's ability to finance asset replacement -- and improvement! -- with internal cash flow can be an indicator of that company's strength. This is what Heesen calls the "1,2,3 rule". And here's how it works.

Operating cash flow of:

• 1 times depreciation means its business is strong enough to fund preservation of substance
• 2 times depreciation means its business is strong enough to fund preservation of technology
• 3 times depreciation means its business is strong enough to fund growth

Come on, you just picked 1,2, and 3 so that you don't have to think of a catchy name for this rule, right?
Well, there is something to it. But let me explain why this makes sense and isn't totally arbitrary. If a company earns its yearly depreciation as operating cash flow, what does it mean? It means that it is able to preserve the value of its assets in the balance sheet by investing the complete operating cash flow back into them. Agreed? Number "1", check.

This, however, won't ensure state-of-the-art technology. The latest technology usually comes with a higher price tag. And we can check the number "2" under the assumption that an asset's price tag -- due to its technological progress and inflation -- doubles during its lifetime.

If we don't use that assumption of prices doubling, we'd need to substitute it for a number that correctly reflects the economics. However, the above has generally proven to be a good rule of thumb for manufacturing and other asset-intensive companies. It's doesn't work quite as well for computer hardware though.

Completing the 1,2,3 rule
So, investing cash at a rate of two-times depreciation into your assets means that you are affording state of the art technology. But your toughest competitors are doing the same. Hence, you won't outgrow them just doing this. And this is why we have the "3" in our rule.

Admittedly, the three-times level is somewhat arbitrary. In general, as long as the money is spent well, the higher the investment, the better. And to be sure, 2.5 times is actually a good number -- but who wants to say "According to the 1,2,2.5 rule this company is a buy"?

Enough talk, let's look at some real life examples

The following table shows four DAX companies in asset-intensive industries (defined as businesses where fixed assets make up more than 40% of the balance sheet) and how I rate them based on the above - from A (good) to C (weak):

Data source: annual reports of the respective companies from 2009 - 2014.

All numbers in the table are averaged over the last five years to smooth one-time effects and business cycles. I used the ratio of fixed assets-to-depreciation as a proxy for average asset life.

"Wait a minute," you might be thinking, "why did you rate Adidas a B, even though you said previously that 2.5-times is good and Adidas is well beyond that?"

There are two reasons for my rating:

• Average asset lifetime at Adidas is 15 years -- well above the 10 years mentioned previously. So I think it's possible that asset prices more than double within their lifetime.
• More significantly: you don't see this in the table, but the cash flow-to-depreciation ratio has been decreasing continuously in the last five years, from four in 2009 to just 1.8 in 2013.

Hence, I believe that B is a more than adequate rating.

The rating of Deutsche Telekom should be clear -- unless asset prices in this industry don't increase, the company is left to just preserve the asset value. And I doubt that it was cheaper to roll out the LTE network compared versus the 3G rollout 10 years ago. Infineon's rating is a strong B, considering the short life of its assets. I do, however, find it a bit concerning that the ratio at Infineon has also been decreasing in the last five years. Finally, in my view, K+S is a clear A rating, even if we adjust for the relatively long asset lifetimes.

Conclusion
The 1,2,3 rule is simple to use and provides valuable insights into the strength of a company's cash flow. It's not only useful in comparing one company to another, but we can use it to judge a specific business that we are interested in. We only need to apply some common sense when interpreting the information. And obviously, this shouldn't be your sole parameter to base your investment decision on. But it is one useful building block to separate winners from losers. In fact, I think we may have found one potential winner in the table above: K+S.

Try it out with one of your investment ideas and feel free to share your insights below if you want to discuss!

Last year, Google launched Helpouts, a marketplace where users could connect with Google-vetted experts in a variety of fields via Google+ video chats. Experts decided the rate, payments were made through Google Wallet, and Google kept 20% of the fee. However, the company waived that fee for healthcare professionals to test its use as a telehealth platform. Google's main partner in that initial phase was One Medical Group, a network of doctors located across the United States who charge between $0 and $60 per telehealth consultation.

Source: Wikimedia Commons.

Now Google is taking Helpouts to the next level by linking its search engine directly to telehealth consultations during a "limited trial." If a user does a search for a health-related question, a "Talk to a Doctor Now" link to a Helpouts telehealth consultation might appear. Google will foot the bill for all telehealth consultations during the trial period, which it hopes could teach more people to rely on Google-fueled remote connections with doctors.

Google has enhanced its main search engine with health-related results before. In 2009, it added special search results for emergency situations. In 2012, it provided users searching for symptoms with a list of related conditions, medications, possible side effects, and links to in-depth resources.

Will Google's connection of Helpouts with search help the tech giant start a slow takeover of the growing telehealth market, or is this idea still ahead of its time?

The growth potential of the telehealth market
Research firm IHS expects global revenue from telehealth devices and services to rise tenfold from $440.6 million in 2013 to $4.5 billion in 2018. During that time, the total number of patients using telehealth is expected to grow from less than 350,000 to 7 million.

In the U.S., a decrease in available physicians and rising demand for quality care will fuel that growth. The Council on Graduate Medical Education projects that by 2020, the nation will face a shortage of 85,000 physicians, while other studies forecast a shortfall of 200,000.

Meanwhile, 65 million baby boomers will enroll in Medicare over the next decade, which will increase demand for the limited number of doctors. Remote telehealth consultations could address this gap in supply and demand, and possibly reduce the number of physical visits to the doctor's office. These shorter consultations can also reduce the number of emergency room visits and readmissions, which can be costly to both patients and insurers.

How Google will become a telehealth giant
Google is poised to tap into the growth of the telehealth market, thanks to its dominant position in Internet search and mobile devices. The company as of August controlled 67% of the U.S. search market and 52% of smartphones via Android, according to comScore.

In 2013, the Pew Research Center's Internet and American Life Project reported that of the 81% of U.S. adults who use the Internet, 72% had searched for health information online over the preceding year. Fifty-nine percent went online to self-diagnose themselves based on symptoms. However, self-diagnosing an illness can be dangerous, since the study showed that 38% of those who did so believed it was something they could take care of at home.

By putting a free telehealth consultation at the top of healthcare search results, Google can convince users that it's smarter to talk to a licensed medical professional instead. Some states also allow physicians to prescribe medication via a telehealth consultation, which could make it a convenient alternative to visiting the doctor's office.

Google's biggest challenge is ensuring that Helpouts is compliant with HIPAA regulations, which protect the privacy of patient records. Google has stated that its platform is secure, but that Helpouts providers who wish to use the platform with protected health information must enter a business associate agreement with Google. In other words, Google must approve the physician before he or she is allowed to access a patient's electronic health records or other information for a remote consultation.

The Foolish final word
Google has expanded its footprint into healthcare over the past year with Calico, smart medical devices, the Baseline genetic database, and Google Glass' healthcare apps. Linking Helpouts to search might not be as bold a move as those efforts, but it could raise awareness of telehealth, lower healthcare costs, and reduce potentially dangerous online self-diagnoses.

Fessing up to mistakes isn't a problem for Warren Buffett and his longtime partner at Berkshire Hathaway , Charlie Munger. The two are more than willing to acknowledge their errors, and that's a great lesson for investors.

Because mistakes happen
If you invest long enough, you'll have winners and losers. And those losers can sometimes be doozies like Buffett's loss in U.K. supermarket chain Tesco, which has seen its shares tumble 49% this past year on revelations that the company overstated its first half profit by $400 million. 

According to Berkshire Hathaway's annual letter to shareholders, Buffett and Munger own 301,046,076 shares of Tesco, at a cost north of $1.7 billion. That makes Berkshire Hathaway the third-largest owner of Tesco shares, which means that the company's losses on the investment are in the neighborhood of an eye-bruising $700 million.

Tesco's slide to 11-year lows makes its shares the worst performing among the FTSE 100 this year, but Tesco isn't Buffett and Munger's first mistake and it won't be their last mistake either.

Dusting yourself off
Buffett's mistake with Tesco stems not from a failure to understand its business. Tesco is a dominant retailer, operating in 11 countries, that trails only Walmart in terms of revenue and sales. As one of the planet's biggest retail operators, with an impressive 30% grocery market share in the U.K., Tesco is clearly a big player worthy of a long-haul investment.

Instead, Buffett and Munger's mistake is the result of poor timing and ostensibly mismanagement at Tesco's highest levels. Yet, while those excuses lend plenty of cover, Buffett didn't shy away from taking the blame.

In an interview with CNBC on Oct. 2, Buffett said, "I made a mistake on that one more than anybody else made a mistake ... That was a huge mistake by me."

His willingness to take responsibility for buying Tesco ahead of its steep drop speaks volumes about Buffett's character and suggests that even if you follow a proven discipline such as buying great companies with competitive advantages that are selling at reasonable prices for the long term, sometimes you can still end up with a dud.

In Janet Lowe's book Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger, Munger addresses the issue of losing investments by saying: "I've been through a number of down periods. If you live a long time, you're going to be out of investment fashion some of the time." 

In his 2003 letter to shareholders, Buffett echoed Munger's view, writing, "In buying businesses, I've made some terrible mistakes, both of commission and omission." But he was also quick to add that, "Overall, however, our acquisitions have led to decent gains in per-share earnings."

Munger and Buffett's comments remind investors that mistakes should be taken in stride and shouldn't distract from the bigger picture of long-term success. It might be tempting to toss aside proven strategies during market swoons, but staying focused on what works over time is a better approach.

That might mean remembering that, time and time again, it has been proven that investors who take a long-term view do better than those who think for the short term. It might mean focusing on buying stocks you know and understand, rather than chasing hot penny stocks. And it might mean sticking with a low-cost investment approach that includes using discount brokers, index mutual funds, and exchange-traded funds, which can help more of your investment dollars go to your nest egg rather than Wall Street bonuses.

The bad with the good
There are many ways to manage your money successfully. Some investors will focus on value companies, others will embrace growth stocks, and many others will rely on mutual funds in retirement plans to do the heavy lifting.

Understanding that risk exists in any investment approach helps you decide which approach best suits you. After all, we're all a bit different. As Munger says in Lowe's book, "If losses are going to make you miserable -- and some losses are inevitable -- you might be wise to utilize a very conservative patterns of investment and saving all your life."

The concept of a digital currency has really taken off over the past couple of years. Bitcoin's massive surge in price, combined with the ever-increasing number of retailers who accept the currency has made quite a few headlines.

Source: flickr user Marc van der Chijs

However, most of the headlines tend to be about businesses that accept bitcoins. And I'm partially to blame -- my previous bitcoin article was about places where you can spend the virtual currency.

Many people have no idea how to acquire bitcoins. With this in mind, here is a quick guide on how to get some bitcoins of your own to spend or to hold.

Two ways to get them
When it comes to acquiring bitcoins, there are two main ways to do it: mining or buying.

Mining involves buying expensive computing equipment that solves complex mathematical problems in the bitcoin network, for which the "miner" is rewarded with newly created coins.

The problem with mining is that as more coins are mined and as more people join in, the process gets exponentially more difficult, diminishing both returns and the value of the hardware itself. At this point, being profitable in bitcoin mining is a very speculative venture, and is probably best left to professionals.

That brings us to buying bitcoins, however it's not quite as easy as it sounds. Here is a quick guide to buying bitcoins for your own "wallet."

Buying from an exchange
There are a few bitcoin exchanges out there, such as Coinbase, where people can create their own bitcoin "wallet" and purchase their own bitcoins.

All you need to do is set up an account, link and verify your bank account, and buy your bitcoins at the current exchange rate. Buying on Coinbase takes a few days before your bitcoins are available in your wallet, but you pay the price shown at the time you place your order. And there is an "instant buy" feature with lower daily limits that requires you to link a Visa credit card to your account.

While Coinbase is the biggest and most reputable place to buy bitcoins, there are several other exchanges, and a good list is available here. Be careful of scams, however, and make sure you verify the authenticity of any exchange before making a purchase.

Just a hint: the prices should be close to each other on all legitimate exchanges. If Coinbase is selling bitcoins for $400 and a small exchange lists the price as $320, it should be a big red flag.

Can I use my credit card or buy with cash?
Not really. I mentioned that Coinbase allows you to link a credit card, but this is a backup payment method only. In other words, if your bank declines a purchase transaction, Coinbase can charge your credit card.

As far as cash goes, you can buy with cash, but it's a little tough to do right now for most people. The good news is that it's getting easier.

The new concept of a bitcoin ATM has really caught on, and in just a few months, a pretty good network of ATMs has been built up, as you can see on this map. Using a bitcoin ATM, you can use cash to purchase bitcoins, and some machines allow you to exchange your own bitcoins for cash. Check out these examples from Genesis Coin to see what they look like.

As bitcoin becomes more and more mainstream, this network should continue to expand.

Coming soon
While it's not the most complicated act in the world to buy bitcoins today, it's definitely not as mainstream-friendly as it could be. For instance, if there were a bitcoin ATM in every American town, or if bitcoins could be easily acquired with a credit card, I'd be willing to bet a lot more people would get involved.

And, that may be coming sooner than you think, thanks to the rapid expansion of the bitcoin ATM network, and PayPal's recent first step toward bitcoin integration by allowing its merchants to accept bitcoin payments. While it may be some time away, if PayPal's 100 million active users are able to buy, hold, and transfer bitcoins in their accounts, it could be the big push bitcoin needs to really break into the mainstream.

In the meantime, unless you happen to live near one of the ATMs, an online exchange (specifically Coinbase) linked to your bank account is the best way to get your hands on some of the virtual currency.

Venerable tech giant IBM made famous the phrase that an elephant can indeed dance. However, this IT pachyderm has more often stumbled than danced in the past several quarters.

IBM stock has largely had an uninspired year in 2014 as the company continues to

Source: IBM

grope for fresh sources of sales growth. Accordingly, the market has awarded IBM with an effectively flat return this year.

IBM is scheduled to report third-quarter earnings after market close on Monday. Let's review what investors should expect from this critical update.

Inside IBM's earnings report
From the look of it, the investing and analyst community largely expects more of the same from IBM. Here are the average analyst expectations for IBM's revenue and earnings per share:

Source: Yahoo! Finance 

Again, no huge surprises here. Assuming IBM closely tracks the analysts' expectations, which certainly isn't a given, it will mark the 10th straight quarter of year-over-year sales declines for IBM, a statistic that more acutely frames the company's protracted growth problems.

Looking to the bottom line, the reasonably strong growth amid IBM's top-line problems also shouldn't surprise anyone in the peanut gallery. In addition to continually shedding unattractive businesses that can drag on its profit margin, a la the sale of the server business to Lenovo earlier this year, IBM is perhaps the most prodigious purchaser of its own stock in the entire technology space. Expect much of the profit increase to be fueled by this oft-used tactic.

Perhaps the single main focus of IBM's earnings release should involve growth initiatives. The company has made some significant investments that should help support future growth, including the rollout of its cloud-based Watson service and the development of a network of 40 server centers in 15 countries that it hopes will push its cloud-based software to enterprise users. However, as earnings continue to slowly dwindle, expect investors' patience to hold for only so long.

Short-term pain, long-term gain?
It's hard to deny that IBM's present revenue growth issues make it a reasonably unappealing stock in many investors' eyes. The market certainly thinks so, having priced IBM at under 12 times price to earnings. However, I maintain the market's current, and somewhat deservedly, low opinion of IBM's investment prospects creates an opportunity for long-term, conservative investors. The reasons are twofold.

For starters, although IBM has done little to expand its top line in recent years, its massive stock buybacks over the past two decades helped the company to growing profits impressively even as revenue stagnates. Consider that from the end of fiscal 2002 through its most recently reported quarter IBM reduced its share count by a whopping 61%, and hopefully it's clear that Big Blue's profit growth story is very much separate from its sales growth struggles. IBM has also proven extremely committed to growing its cash payouts to shareholders over the years. In the past decade, IBM has increased its dividend from $0.18 to $1.10, good for a 20% average annual growth rate. This commitment to returning capital to its shareholders has been perhaps the defining trait that has helped this established blue-chip company outperform the market over the past 10 years, even as it struggled to boost sales.

The second reason to believe in IBM's ongoing success is a matter of record. Former CEO Sam Palmisano said IBM would reach $20 of operating earnings per share for fiscal 2015. The very public nature of this pledge suggests investors should take it as gospel creed that IBM will indeed hit this number.

One investors' trash ...
In all likelihood, IBM's upcoming quarterly report will look very much like those from past several quarters. IBM is simply too large to dramatically alter its operational structure and overhaul its product portfolio in short order.

However, with a management team dedicated to methodically leading the company into the cloud-centric future and a maniacal commitment to returning capital to shareholders, IBM certainly exhibits many of the characteristics of a largely unpopular stock that is headed toward better days. IBM's restructuring won't be simple or materialize overnight, but it's highly likely that it will eventually arrive. When that happens, investors willing to consider IBM today will certainly be happy they saw the forest for the trees with one of enterprise tech's most powerful names.

JPMorgan Chase, the largest U.S. bank, disclosed in a securities filing that the data breach reported in late August was much larger than previously thought, impacting 76 million households, or two out of every three American households, and 7 million small businesses. The JPMorgan Chase data breach took place this summer, and news of it broke in late August.

The new estimate is far greater than JPMorgan Chase's original estimate of one million affected accounts, reports The New York Times.

JPMorgan Chase has not said how many individual customers or accounts were affected, instead using the number of households, according to The Huffington Post.

Data breach limited to customers' contact information
The extent of the data breach and the information accessed was found to be limited to general user info and details of the administrative and technology systems used by the bank, according to JPMorgan Chase.

The personal information obtained by the hackers includes names, mailing addresses, emails and phone numbers. It does not appear to include more sensitive information that would allow hackers to directly access users' funds or steal identities, such as passwords or social security numbers.

JPMorgan Chase said there is no evidence, as of yet, that the stolen information was used to commit fraud. Still, this contact information could provide hackers with a head start in accessing users' accounts. Hackers can use personal information to get around security questions meant to verify an individual's identity -- a strategy thought to be used by the hackers who leaked the nude photos of several celebrities in September.

The information about the bank's technology systems include knowledge of the software and applications used within the bank, including those that are part of the cybersecurity system. With knowledge of the inner workings of such a large organization, hackers could have a much greater opportunity to quickly identify and exploit weak points in JPMorgan Chase's systems, reports The New York Times.

5 things Chase Bank customers should do to protect themselves
While it's unclear the exact extent of the breach, with two-thirds of U.S. household affected it's safe for all Chase Bank customers to assume that their information was compromised. While account information was not stolen, Chase Bank customers are still at a greater risk now. If you're a Chase Bank customer, here are five things you should do to minimize your risk.

1. Keep an eye on your statements. If you don't already check your bank statements regularly, start. Review all purchases and keep an eye out for tiny charges -- according to CNN Money, fraudsters will sometimes charge just a few cents to test out credit card information before racking up charges.
2. Update login information. Review the information used across services and accounts, and update passwords for logins that use information that might be compromised.
3. Check you security questions. Choose those that are more obscure or not easily found out. Hint: it's not that hard for a hacker to find out your mother's maiden name or the name of your elementary school. Time magazine even suggests treating security questions like passwords and making up nonsense answers, like your mother's maiden name is Jingleheimer-Schmidt.
4. Be wary of scammers. The main way hackers can make use of your information is to sell it to scammers. These scammers will know how to contact you, and will know you're a Chase Bank customer and might use this info to put a convincing face forward. Make sure to verify all contact. If you're contacted by a service representative from any company, don't reply. Hang up or ignore the email, find the actual service number from the corporate site, and call that number directly to verify anything you might have been told.
5. Don't switch banks yet. JPMorgan was set to spend $250 million on security this year -- and that was before news of the breach broke. If this behemoth bank is scrambling to keep up with hackers, your money is unlikely to be any safer with smaller banks or credit unions that have less resources to put toward security.

This article originally appeared on GoBankingRates.

Photo credit: aresauburnTM.

If you've given up on saving money because you think budgeting and tracking expenses are too hard, it's time to rethink your strategy. You don't have to track every penny and pinch it until Abe Lincoln screams; all you need to do is make a commitment to cutting expenses and use some hacks that help you trick yourself into saving money.

1. Cut your housing bill in half by splitting expenses with a friend
Whether it's a ride to work or a two-bedroom apartment, sharing costs with a good friend can help you cut some of your biggest living expenses -- without doing any work. After all, you enjoy being around them -- why not share a living space with a good friend to save on one of your biggest single expenses: housing.

According to the Bureau of Labor Statistics, the average American spends over $16,000 on housing every year. Having a roommate lets you put away $8,000 in savings if you can make it work. When that roommate is a good friend, it's just plain fun.

2. Slash your food costs -- just by changing grocery stores
According to Consumers' Checkbook, the difference between shopping at a Wal-Mart and a Whole Foods is a whopping $4,056 per year for the average family -- you can probably guess which store is cheaper. Commit to shopping at a cheaper grocery store -- or even just to buying generic instead of name-brand items -- and allocate the money you save straight into your savings account. You'll see your savings increase by thousands every year. 

3. Never buy new
"Never" is a little extreme, but if you tell yourself "never," it'll probably end up being the appropriate "rarely." The point is, except for perishable items, avoid buying new whenever you can. Make it into a game. What can you spend less on by buying it second-hand? Cars, clothing, furniture and just about everything else you might need can be had for a fraction of the cost, simply by going used.

Case in point: cars. If a car retains half its value after five years, it's a minor miracle. Even the highest-valued car loses 30 percent of its value after five years, according to The Motley Fool. At an estimated dealer price of over $27,000 for a new Toyota FJ Cruiser, you'd have an extra $8,100 to put in your savings account if you bought it used. Keep this in mind every time you're tempted to buy something new and shiny instead of something with a longer shelf life.

4. You'd be surprised how much you can get for free
Take on the mantra, "If it's free, it's for me." It's a fun and easy way to remember that free stuff equals a bigger savings account. One great way to do this is to keep your eye on the "free" section of Craigslist. The most common finds are items that are more expensive to throw away than give away -- like couches and TVs -- but other great deals pop up all the time.

5. You can make rewards cards work for you
A rewards credit card is a great way to trick yourself into saving money. Gas or cash-back rewards pay off, as long as you only use the cards for items you would buy anyway and pay the full balance every month. It's like getting an instant discount on gas, food, clothing or whatever else you purchase. You can even buy gift cards to the stores you frequent most, giving you another instant discount.

6. A little bit of change can go a long way
How you manage your spare change can have a big impact on how much money you can sock away. Make a habit of stashing the change in your pocket, in a jar or even a traditional piggy bank. Once a month, run it down to the bank. Or -- even easier -- you can take advantage of bank programs like Bank of America's "Keep the Change," which rounds up every purchase to the nearest dollar amount and puts the change in your savings account. Not only does this increase your savings, it makes it easier to reconcile your statement every month -- and these programs often match your savings for a the first few months, as well, giving you free money.

Saving money is only as hard as you make it. Use these simple hacks to trick yourself into saving more money.

This article originally appeared on GoBankingRates.

Source: Apple.

Apple is scheduled to report quarterly earnings on Monday after the market close. This is a major event that will attract a lot of attention from investors and the media, so it´s best to be prepared in advance in order to know what to look for for when the numbers are released. Let´s go through the main areas of interest.

The numbers
Based on Apple's guidance in its last earnings report, quarterly revenue is expected to be in the range of $37 billion to $40 billion. Wall Street analysts are expecting revenue near the high end of the guidance, specifically $39.84 billion, according to data compiled by Thomson Reuters.

Sales in the same period last year, which is Apple´s fiscal fourth quarter ending in September, reached $37.47 billion, so the Street is on average expecting an annual year-over-year growth rate of 6.3%.

Analysts on average expect earnings per share of $1.31; this would represent an increase of more than 11% versus a split-adjusted $1.18 per share in the fourth quarter of fiscal 2013.

While investors should not pay too much attention to short-term earnings forecasts, watching how estimates change can be quite illustrative in evaluating analysts' expectations and trends leading to the earnings release.

The average earnings forecast 90 days ago was $1.34 per share. However, when Apple reported earnings for the quarter ending in June, guidance came in below expectations, so analysts adjusted their forecasts to the downside. The average earnings estimate for Apple in the coming report had fallen to $1.29 per share 30 days ago.

But Apple has received 12 positive revisions in the last 30 days, lifting the average EPS estimate to $1.31. Analysts are becoming increasingly optimistic, which is most likely due to encouraging initial sales data for Apple´s new iPhone 6 and iPhone 6 Plus models.

The products
While the new iPhone models were only available for sale toward the end of the quarter, the iPhone is a major contributor for Apple when it comes to both sales and profits, so what happens in this segment will be of utmost importance in terms of overall financial performance.

On Sept. 22, Apple announced that it had sold a record-breaking 10 million units of its new iPhone 6 and iPhone 6 Plus models in just three days. This beats the previous sales record of 9 million units for the iPhone 5s and iPhone 5c in the first three days after their launch in September 2013. l

Importantly, while the new iPhone models were not available in China during the last quarter, they are hitting the shelves in the country this time. Initial demand in China and its impact on guidance for the current key holiday quarter can be as just important as sales figures for the quarter ending in September.

Most analysts calculate that the iPhone 6 Plus has higher gross margins than other models, so a product sales mix more skewed toward the iPhone 6 Plus could mean better profitability for Apple during future quarters. Smartphones with bigger screens tend to be particularly popular in emerging markets, so a successful iPhone 6 Plus could provide a double win for Apple, producing higher margins and gaining market share versus Android devices in developing countries.

iPad sales are expected to remain under pressure during the quarter. Global tablet sales are slowing down as consumers buy larger-screen smartphones and keep their old tablets for longer periods. Besides, Apple just launched its new iPad Air 2 and iPad mini 3 models on Thursday; many customers most likely waited for the new models rather than renewing their iPads during the last quarter.

While the Mac segment does not have the same financial weight as the iPhone or even the iPad, Apple has been doing much better than other players in the PC industry lately. Mac unit sales grew by a healthy 18% during the quarter ended in June, and preliminary numbers from IDC indicate that Mac shipments increased 8.9% during the September quarter, considerably better than the 1.7% decline estimated for the industry as a whole.

Foolish thoughts
The iPhone will be the star of the show when Apple reports earnings on Monday, but the sales guidance for the holiday quarter could prove even more crucial than the sales performance for the last quarter. Wall Street analysts have grown more optimistic lately about Apple's quarterly numbers; this is encouraging for the overall sales trend, but it also raises the bar higher for Apple.

There are plenty of things to like about renewable power sources like solar and wind. However, these sources, on a large scale, are relatively new to the U.S. electric grid. That has major implications that utilities may not be ready to deal with. And that risks leaving you without power and, thus, in the dark.

Zig zag
You likely know all about the benefits of solar and wind. The biggest ones being no emissions from burning fossil fuels and minimal costs once they are installed since they are powered by nature. These are huge benefits that can't be, and shouldn't be, dismissed. It makes sense to include such clean-power options in the mix.

However, if you get so caught up in the upside of renewable power you might lose sight of the downside. And there are some pretty notable negatives that have big implications for a U.S. power system that hasn't been designed to handle intermittent power.

That, in fact, is one of the biggest problems. The sun and the wind can't be controlled. There's no way to tell just how much power you'll get on any given day or at any given moment. This fact has utilities more than a little concerned, since their job is basically to ensure your lights stay on no matter what.

Source: U.S. Energy Information Administration

Just how big an issue is this? Earlier in the year, the U.S. Energy Information Administration put out a graph showing the swings in wind power supply in Texas. The chart, shown above, is full of peaks and valleys. The spike up can mean the grid has to absorb four times as much power from wind as it does during the lulls.

And solar is no better -- and perhaps even worse. Sempra Energy's San Diego Gas & Electric (roughly 40% of the company's earnings last year), has a rooftop solar penetration rate of around 6% that it expects to double over the next two years or so. Tom Bialek, chief engineer at the San Diego utility, however, points out a problem: "Customers are changing how we view the world just because they are making choices."

Why is this such a big deal? Because customers don't need Sempra's consent to make changes, which means that Sempra doesn't know how much new solar to expect. And that's on top of the fact that you can't predict how much the sun will shine on any given day. Utility customers aren't likely to start installing wind farms, so this is an issue unique to solar.

In fact, Hawaiian Electric Industries is dealing with a big solar problem right now, as so much solar has been installed, a good portion of which it didn't know about, that peak production times are putting it at risk of overloading circuits. The island state has 20 times the average rooftop solar penetration as the mainland. Every utility could be heading toward this dilemma.

Source: ReubenGBrewer, via Wikimedia Commons

Old reliable
This is why utilities like controllable power sources like natural gas, coal, and nuclear. There's no question how much power you'll get -- you run the plant at the level you need. But, that's a legacy issue, too, in a world with increasing intermittent, renewable penetration.

Most base-load plants are designed to be run constantly. This not only allows for peak efficiency, but means that they weren't designed to be turned on and off. If Texas sees a huge wind power spike it has to pull back on power somewhere. Increasingly that's likely to come from the power plants it can control. 

Dealing with the complex dance between controllable and intermittent power has been tricky for utilities. Some have simply put up roadblocks to slow the adoption of renewable power, such as Hawaiian Electric, which now requires homeowners to get approval before hooking to the grid. Others, like Edison International , have worked to refocus their businesses around the distribution of power, minimizing the generation aspect. In fact, connecting often remote renewable power sources will require a large amount of new transmission investment and that's actually a big industry opportunity. Overall, however, utilities increasingly have little choice but to upgrade their systems, which is what Sempra's San Diego Gas & Electric has been doing. But upgrading is a costly and time intensive task and Hawaiian Electric's experience shows that time may not be on the industry's side. 

We take reliable electricity for granted in the United States. The impact of not having power, however, has been on display several times in recent years after natural disasters caused widespread blackouts. Moving too quickly down the renewable road without ensuring a system built for a different time can handle it could cause even more damage. This isn't a suggestion that renewable power is bad or that it shouldn't be an increasing part of the U.S. power system. But it is a word of caution that too much of a good thing could leave you sitting in a blackout.

Vacation home sales are on the rise, and many investors are starting to see that vacation homes are a good, safe investment. I have put together a few tips that will help you along the buying process in your search for the perfect vacation home.

1. Choose the location carefully
The very first question you should be able to answer when buying a vacation home is, "Where do I want my home located?" The best way to answer this question is to ask yourself, "What is my main purpose in owing a vacation home?"

Is the main purpose for you and your family to enjoy the house as a family? If so, then you will probably look to buy a vacation home near where you live or in an area that offers a lot of activities that you and your family enjoy.

If the main reason is for rental income, then you will want to look at the most popular destination areas in the United States, such as Orlando or a popular beach spot. If you are purchasing a vacation home for true investment purposes, only then will you also want to check out projected growth rates of different communities. After all, the more popular an area is, the more your vacation home will appreciate.

2. Rent before you buy
Before you buy a vacation home, you should rent a place in that area first for at least two weeks. Make sure you and your family like the area, and you should also have a good idea of what part of the area or town you would like to own a vacation home in.

For example, here in Orlando there are vacation homes spread out all over the place. You might find that you like the shops and restaurants better in Kissimmee than you do Davenport, but you will only know this if you spend time in the area.

3. Buy under your budget
When considering various vacation homes, don't fall into the trap of trying to purchase a more expensive property than you can afford. Buying a house that you cannot afford causes STRESS, and most people go on vacation to relieve themselves of stress.

My recommendation for every new vacation homeowner is to buy a vacation home that is on the cheaper side, and then if you use the property a lot, you can always sell that vacation home and upgrade to a bigger one.

4. Understand your family dynamics
This was a big one for my wife and me. We have three kids, and when they were young, we bought a vacation home near our house. We used it all the time. However, as the kids got older, we used the house less and less. With all the kids playing sports on the weekends, friends sleeping over, church and school activities, there was just not enough time.

So look at your family dynamics, and decide if owning a place is right for you and your family, or whether you'd be better off working out a rental agreement with an owner or two in the area that you like.

5. Tax implications
There are a few things which are certain in life, and paying taxes is one of them. Therefore, when you buy a vacation home, it is important to look into what the tax implications of owning that property are. If you are going to rent the property out, you will need to pay income taxes on the income you receive.

The property taxes are usually much higher here in Florida if you are purchasing a second home, as you will not be able to homestead the property. A qualified real estate agent should be able to help you in this area. One of my clients was able to save a couple of thousand dollars a year by buying a vacation home just outside the city limits.

6. Take a conservative approach when estimating rental income
If you are purchasing a property for mainly an investment purpose, be very conservative when estimating rental income.

You will also want to do your homework on what the expenses are going to be. It is also safe to estimate that repairs should be at 1.5% of the value of the house. So if you buy a $100,000 vacation home, you should budget for at least $1500 a year in repairs.

Some years might be higher, some might be lower, but this is a good rule of thumb. When doing your homework on the income and expenses of the property to get your true return on your investment, be conservative; don't put your family in a bad economic situation.

7. Don't get caught up in the moment
If a friend, family member or another investor brings you an opportunity to buy a vacation home, do your homework.

If this is your first investment property, don't buy land with aspirations of building a grand vacation home on it. Sure, it sounds romantic, but there are many of horror stories of investors who have done this over the years.

Also, don't be pressured to buy. If someone is giving you a hard sales pitch on why you should buy the property, there is probably a good reason they are doing this. Slow down, take your time -- and do your homework. If it is a good deal, then move forward, but only after you have truly dove in and run the numbers yourself. Sometimes people have alternative motives, even people close to you.

Conclusion
All in all, buying a vacation home is a good investment, but be cautious and conservative with your approach. I suggest that even the most seasoned real estate investor work with a real estate agent who knows the area that you are looking to purchase a property in. This agent will probably save you a lot of heartache and time, as compared to you trying to do it yourself.

This article originally appeared on Bigger Pockets and is Copyright 2014 BiggerPockets,

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