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URBANA, Md. -- Drivers scrambled to grab money flying around a Maryland highway after an armored truck's door burst open.
Maryland State Police say a lock on the truck seems to have malfunctioned, causing the door to open Friday morning. A bag of cash fell onto Interstate 270 near Urbana and the bills flew in the air.
Police say a number of drivers stopped on the interstate and grabbed what cash they could before a fire department vehicle arrived and turned on its emergency lights.
Responding troopers were able to help the truck's driver recover about $200. It's not known how much cash was lost.
Police urge the drivers who took the cash to return it to the state police barracks in Frederick, or else face charges of theft if they're found.
BSTAR Images/AlamyFriday's U.S. stock gains were driven by the Bank of Japan, which surprised investors by announcing it would significantly boost its bond and asset purchases to stimulate Japan's economy.By KEN SWEET
NEW YORK (AP) - For stock investors, there was no shortage of drama in October.
Stocks started the month modestly below a record high, only to cascade to their worst slump in two years. But after flirting with a correction, or a 10 percent drop, the U.S. market rebounded and closed at all-time highs on the last day of the month.
All told, U.S. stocks ended October solidly higher, up 2.3 percent. The Dow Jones industrial average (^DJI) capped the rally by rising 195.10 points, or 1.1 percent, to end at 17,390.52 on Friday. The Standard & Poor's 500 (^GPSC) rose 23.40 points, or 1.2 percent, to 2,018.05 and the Nasdaq composite (^IXIC) added 64.60 points, or 1.4 percent, to 4,630.74.
Both the Dow and the S&P 500 closed at record highs.
It's a remarkable turn given the month's volatility, which at times approached levels from the 2008 financial crisis. Then again, the month has an unfortunate history for unsettling moves, with the stock market crashes of 1929 and 1987 both happening in October.
This October, the market's seesaw path was driven by fears that Europe's economy was slipping back into a recession, worries about plunging oil prices and concerns of possible weakness in the U.S. economy. Oh, and don't forget Ebola. Those anxieties sent the market, for the most part, straight down for two weeks.
The nadir came on Oct. 15, when the S&P 500 came with a hair's breadth of going into a correction. Investors had expected such a drop. The last one occurred in late 2011, and historically corrections happen every 18 months or so.
But just after the market came close to going into a correction, it bounced right back. Strong U.S. corporate earnings were the primary driver of the rebound as well as signs that central banks in Japan and Europe were going to do all they could to stop their economies from dragging everyone else down with them.
"I don't think it's a surprise that we came close to a correction. We've been expecting one for a while. I think the bigger surprise has been how we rip-roared all the way back up," said Bob Doll, chief equity strategist at Nuveen Asset Management. "When you hit someone over their head with a hammer, you don't expect them to get up immediately."
U.S. companies have been, for the most part, reporting strong quarterly results the last two weeks. Corporate profits are up 7.3 percent from a year ago, according to FactSet, compared with the 4.5 percent investors had expected at the beginning of the month. And any worries about the U.S. economy earlier in the month evaporated as the data rolled in, mostly recently Thursday's data showing the U.S. economy grew at a 3.5 percent pace last quarter.
Friday's gains were driven by the Bank of Japan, which surprised investors by announcing it would increase its bond and asset purchases by 10 trillion yen to 20 trillion yen ($90.7 billion to $181.3 billion) to about 80 trillion yen ($725 billion) annually. The announcement came after data showed that the world's third-largest economy remains in the doldrums, with household spending dropping and unemployment ticking up.
Japan's move comes only two days after the U.S. Federal Reserve brought an end to its own bond-buying program. Investors have been hopeful that the European Central Bank might also start buying bonds to stimulate that region's economy by keeping interest rates low and injecting cash into the financial system. That form of stimulus is called quantitative easing, also known among investors as "QE."
"The Japanese central bank has taken the QE baton from the Fed, and equity traders couldn't be happier," said David Madden, market analyst at IG.
Japan's stock market rose 4.8 percent to the highest level since 2007.
The Japanese currency weakened dramatically following the Bank of Japan's announcement. The yen slumped 2.6 percent against the dollar to 112 yen. The yen is trading at the lowest level in more than five years. Japanese companies typically like a weak Japanese yen because it makes their exported goods cheaper abroad.
European stock markets rose broadly following the Bank of Japan's announcement on hopes that the ECB could be tempted to follow Japan's lead in stepping up stimulus measures. However, few think anything will be announced at the ECB's next policy meeting next Thursday.
"The willingness of the Bank of Japan to ease further in the fight against deflation will encourage those who think the ECB should be doing the same," said Julian Jessop, chief global economist at Capital Economics.
Britain's FTSE 100 rose 1.3 percent. France's CAC 40 jumped 2.2 percent and Germany's DAX climbed 2.3 percent.
In other markets, the price of U.S. benchmark crude oil fell 58 cents to $80.54 a barrel in New York as increasing production from OPEC members added to already high global supplies of oil.
Brent crude, used to price oil in international markets, dipped 38 cents to $85.86 in London. In other energy futures trading on the NYMEX, wholesale gasoline fell 2.6 cents to close at $2.169 a gallon, heating oil fell was flat at $2.515 a gallon and natural gas rose 4.6 cents to close at $3.873 per 1,000 cubic feet.
Bond prices fell. The yield on the U.S. 10-year Treasury note rose to 2.34 percent from 2.31 percent Thursday.
In metals trading, the price of gold fell $27 to $1,171.60 an ounce. Silver fell 31 cents to $16.11 an ounce and copper fell 2 cents to $3.05 a pound. What to watch Monday:
At 10 a.m. Eastern time, the Institute for Supply Management releases its manufacturing index for October, and the Commerce Department reports construction spending for September.
These major companies are scheduled to release quarterly financial results:
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You've probably had this experience: you're frustrated because the driver in front of you is going too slow for your liking. You can see the driver's gray hair and think that this person should not be driving any longer. Just the opposite is true: 60-something drivers gets the last laugh. Not only are they more likely to arrive safely at their destination, they are rewarded for it with lower auto insurance rates.
"Older drivers by and large are far safer in terms of the number of accidents they have and the number of claims they turn in than the typical driver," said Marty Agather, senior vice president of the consumer resource site TrustedChoice.com. He says insurance companies collect incredible amounts of data to set prices. "The sweet spot in the auto marketplace is someone who is recently retired but still vital," according to Agather. "They're not driving to work every day, still with it, and their reaction time has not slowed down too much. You still have a very safe operating behavior."
According to 21st Century Insurance, "senior citizens are some of the safest, most responsible and defensive drivers on the road." As a result, many insurance companies offer special rates and discounts for these mature drivers. In general, rates for drivers who are 50 and 74 years old are 5 percent to 15 percent below those for people 30 to 50. And of course, drivers younger than 25 can pay more than double what the seniors pay. "For young males, the numbers are astronomical," said Agather. "They are 200 times more likely to get into an accident."
As Your Life Changes, So Does Your Premium
DMV.org says car insurance rates gradually decline from the time you turn 25 until you turn 70 -- as long as you maintain a good driving record. By the time you're in your 40s, you are likely to have a family, which encourages safer driving, and you are less likely to be at a bar at 2 a.m., which does not. But once you hit 70, rates start to go up again because you are more likely to have impaired vision, slower reactions and poorer cognitive functions.
For those in the 50-to-70 sweet spot, some discounts are applied automatically; some require you to inform your agent or insurance company of changes in your lifestyle; and others come from being pro-active. For example:
Low-mileage discount. If you're retired, you have probably cut down on the miles you put on each day. Inform your agent and your insurer. They don't know about changes in your life unless you tell them.
Defensive driving classes.AARP, AAA and others offer classes for drivers of all ages. They cost about $50, usually earning a discount of up to 5 percent a year, for three years. AARP says automatic discounts follow a course for drivers in Alabama, Alaska, Arkansas, California, Colorado, Connecticut, the District of Columbia, Delaware, Florida, Georgia, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Montana, Nevada, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia and Wyoming. Residents of other states should ask their insurance agent about discounts.
Policy changes. Older people with more assets may want to take the risk of going with a higher deductible -- and they might also want to boost liability coverage. Agather said you need to make sure that your liability limits equate to the assets you have at risk. "Just because you have an insurance policy, that doesn't limit how much you are liable for in damaging someone else," he warned. "Your assets are at risk if you hurt a brain surgeon or hit a Ferrari." To protect those assets, he recommends an umbrella policy that protects your assets if you are sued for more than the liability limit on your auto policy covers. "It also may make sense to drop comprehensive and collision coverage, which may be costing you $400 to $500 a year," said Agather. "Don't pay a lot of money to insure something you can afford to pay out of pocket," especially if you're driving an older car.
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Most financial experts and guides tout the benefits of establishing either a 401(k) or a Roth individual retirement account, but to often, they don't discuss the benefits of combining both in your quest to amass a nice nest egg.
The Benefits of 401(k) Plans
Basically, 401(k) plans allow employees to contribute up to $17,500 per year, and there's a $5,500 catch-up contribution (that number goes up in 2015) allowed if you're over 50. The account is set up by your employer and there's no income cap.
Most companies match your contributions, up to a point. If you are offered a 100 percent match up to 3 percent, that means the first 3 percent of your income you contributed to your 401(k) would be matched by an equal amount from employer. That's a simple way to double your money. (If you're self-employed, you can set up a Solo 401(k) or a SEP IRA. Talk to a financial professional to help you decide).
But just as valuable are the benefits that kick in because 401(k) accounts are tax-advantaged. Your contributions are made with pre-tax money, which means that amount is deducted from your taxable income in the year you contribute it. That's a great way to lower your tax bill. Your distributions -- the money you'll take out of the account in retirement -- will be taxed as income. But you'll pay less in taxes today, which frees up more money for you to save and invest.
How Roth IRAs Differ
With a Roth IRA, you establish and fund the account yourself: Your employer's not involved. Roth IRAs allow for contributions of up to $5,500 per year, or $6,500 if you're over 50.
Roth IRAs have income caps. If you are single, your modified adjusted gross income must be under $114,000 to be able to make a full contribution and if you're married filing jointly your MAGI must be under $181,000. If you make slightly more than those amounts, you may be in the phase-out range and be able to make a partial Roth IRA contribution.
You'll pay taxes on the money you put into a Roth IRA the year you earn it, but Roth withdrawals are not taxed, which means all the profits you make on the investments in the account are tax-free, too. You're also allowed to withdraw your contributions -- the principle -- at any time without penalty. You will face a penalty if you withdraw earnings before age 59½.
If you don't meet the income qualifications for a Roth IRA, see if your employer offers a Roth 401(k). You can elect to contribute to the Roth portion of your 401(k) and then your employer match will go into the pre-tax portion of your 401(k), thus allowing you to build up two retirement accounts with different tax implications.
Why You Should Utilize Both Accounts
Having both Roth and pre-tax accounts can help diversify your tax buckets -- with the benefits complementing each other.
A 401(k) or Roth 401(k) is a great retirement option for those who can take advantage of employer matches and for people looking to contribute a larger amount to their retirement portfolio. If invested wisely, the larger amount contributed today means an exponentially larger nest egg in the future thanks to compound growth working for you. But remember, with a traditional 401(k) you get the upfront tax deduction now and will have to pay taxes on the distributions in retirement.
Your income in retirement will likely differ than it is today, which could put you in a different tax bracket. In addition, we don't know what tax brackets will look like in the future. Having a Roth IRA or Roth 401(k) with contributions that are post-tax can help even out some of the tax burden come retirement. By contributing to both types of accounts, you benefit from the ability to save more money today as well as having both pre- and post-tax contributions.
Fast-forward to your 60s or 70s, when you've decided to retire. Many retirees take distributions from their 401(k)s first up to the 15 percent tax bracket. If they need additional income beyond that, they will take money out of their Roth IRAs since that income is not taxable. When it comes time to take distributions from your retirement accounts, work with a financial planner and a CPA to minimize your tax bill.
How Much Should I Contribute?
The best-case scenario sees you maxing out both your 401(k) account and Roth IRA for optimal savings. But let's be real: this simply isn't going to be possible for anyone but the highest earners.
To start, aim to contribute at least 10 percent of your pre-tax (or gross) income to your retirement accounts. Start by getting your company match in your 401(k) plan. Then work to contribute what you can to the Roth IRA. Maxing out your Roth would require monthly contributions of about $458 (or $541 for those over 50). If you can't manage that now, start with what you can do and work up from there.
While both accounts have their own unique benefits, it's wise to focus more on the 401(k) now as you are saving money on taxes today. Plus, there's the added incentive of free money on the table via that employer match. By saving money now, you can contribute more to the Roth IRA and prepare to pay taxes later.
Feel like 10 percent is too much? Don't get overwhelmed -- take baby steps. Try to get at least the employer match, and then work to bump up your contributions by 1 percent every six months or 2 percnt every year. And be sure to claim tax credits you qualify for by saving. Again, it's more important that you just get started than stress over not saving enough.
Sophia Bera is a virtual financial planner for millennials and the founder of Gen Y Planning. She is location-independent but calls Minneapolis home. She offers a free Gen Y Planning newsletter.
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Everyone likes to get a break on their tax bill. But for today's struggling young adults, making sure you don't pay any more in taxes than you have to and taking advantage of every available tax break is vitally important to starting your independent financial life on the right foot.
Fortunately, the Internal Revenue Service offers a number of deductions, credits and other tax breaks that have particular appeal to those in their 20s. With that in mind, let's look at five of the most popular.
1. Take Your Educational Tax Breaks
Many adults in their 20s haven't yet finished their education, so education-related tax breaks can be valuable. The American Opportunity Credit pays 100 percent of the first $2,000 and 25 percent of the next $2,000 in expenses for the first four years of college, maxing out at $2,500 per student annually. If your undergraduate studies are behind you, the Lifetime Learning Credit will pay you up to 20 percent of eligible expenses of up to $10,000, which can contribute another $2,000 toward your educational aspirations. Income limits apply, but with no maximum number of years that you can use the Lifetime Learning Credit, it pays to take full advantage.
2. Deduct Your Student Loan Interest
If your student loans qualify, you can deduct up to $2,500 in interest on your loans against your taxable income. Because the deduction is treated as an adjustment to income, you can claim this benefit even if you don't itemize other deductions. The key is that you have to have taken out the loan to pay qualified higher-education expenses, and income limits apply.
3. Think Long-Term by Opening a Roth IRA ...
When people think about saving for retirement, they usually gravitate toward traditional individual retirement accounts because those contributions create up-front tax deductions. But often, early in your career you are in the lowest tax bracket you'll ever face, and so it makes more sense to look at a Roth IRA.
With a Roth, you won't get an up-front tax deduction on your contribution. But you also won't have to pay taxes when you withdraw money from your Roth in retirement. Given how much your investment can grow over that span of 40 or so years, the tax savings in the long run is well worth giving up the minimal deduction you'd get now.
4. ... and get the Retirement Savings Contributions Credit as a Bonus
Another great reason to contribute to a Roth is that if you qualify, you can get the Retirement Savings Contribution Credit, also known as the Saver's Credit. This essentially matches up to 50 percent of your retirement contribution in the form of a tax cut and is designed to offer an incentive to low-income taxpayers to start saving for retirement. With singles earning up to $30,000 and joint filers earning up to $60,000 being eligible for credits of between 10 percent and 50 percent on the first $2,000 to $4,000 saved, the Saver's Credit is icing on the cake for smart planners.
5. Look at the Earned Income Tax Credit
In the past, the Earned Income Tax Credit was designed for low-income families. But more recently, changes to the law made the EITC available to people with no children, and now, singles making up to $14,590 and joint filers with incomes up to $20,020 can get the credit.
With a maximum credit of $496, the EITC isn't the largest tax break available. But one particular benefit of the credit is that it's refundable, which means you can collect it even if you otherwise don't have any tax liability.
Motley Fool contributorDan Caplingerremembers his 20s fondly. You can follow him on Twitter@DanCaplingeror onGoogle+. To read about our favorite high-yielding dividend stocks for any investor, check outour free report.
NEW YORK -- It turns out people go to Red Lobster for the seafood.
The struggling chain plans to announce Monday another revamped menu that removes dishes including spicy tortilla soup and a wood-grilled pork chop, while tacking on more dishes featuring lobster. The non-seafood dishes had been added by the chain's previous owner, Darden Restaurants (DRI), in hopes of attracting people who don't like seafood as sales declined.
But the new management thinks that was a mistake.
At the end of the day, we believe that seafood is really why people come to Red Lobster.
"At the end of the day, we believe that seafood is really why people come to Red Lobster," said Salli Setta, Red Lobster's president, in a phone interview.
The revamped menu is 85 percent seafood, up from 75 percent. Red Lobster says the menu will be easier to navigate and features more photos of the food. Four of the five new dishes include lobster, and it's increasing the amount of shrimp in the popular "Ultimate Feast" platter by 50 percent. The price of the dish, which also includes lobster and crab, will go up by a dollar to $26.99.
The reversal comes after Red Lobster was sold off to investment firm Golden Gate Capital by Darden this summer. Darden, which is based in Orlando, Florida, and owns Olive Garden, had failed to turn around the chain's declining sales and blamed a variety of factors such as the growing availability of shrimp at other restaurants and price-sensitive customers.
For its last fiscal year, Darden had said Red Lobster's sales declined 6 percent at established locations, following a 2.2 percent decline the previous year. Red Lobster, which is still operating out of Darden's offices until it moves into its new home, no longer has to disclose its sales figures because it is privately held.
Whether its new menu will win back customers remains to be seen, with people increasingly heading to chains such as Chipotle Mexican Grill (CMG) where they feel they can get high-quality food without paying as much.
Other changes had already been in the works.
CEO Kim Lopdrup, who is back at Red Lobster after serving as its president from 2004 to 2011, has said steep discounting like "30 shrimp for $11.99" was a mistake. The chain this summer also started changing the way it plates its dishes, with fish piled over rice instead of having foods spread out on a dish. Red Lobster says that presentation is more visually appealing, while also helping retain the food's heat.
Julio Cortez/APHoliday bargain-hunters turned out in droves last Thanksgiving to take advantage of sales prices at both Kmart and Sears.
HOFFMAN ESTATES, Ill. -- Sears and Kmart say they will open on Thanksgiving day again this year with extended hours to draw shoppers.
Sears will open at its earliest time ever -- letting shoppers in at 6 p.m. on Thanksgiving. The retailer decided two years ago to open on Thanksgiving and nudged up its opening time by two hours this year.
Kmart will open its doors at 6 a.m. on Thanksgiving and stay open for 42 hours straight, an hour longer than last year.
Sears Holdings (SHLD) is also offering special offers at both chains in the weeks preceding Thanksgiving.
A number of retailers have decided to open on Thanksgiving to lure shoppers as the holiday season can account for up to 40 percent of a retailer's annual sales.
Black Friday may be the busiest shopping day of the year, but when it comes to sales, no two Black Friday seasons are alike. New competition, the state of the economy, and changing consumer trends all contribute heavily to the makeup of Black Friday.
To help you prepare and get the most from this shopping season, we've created a list of things that will be different this Black Friday, so that you can know what to expect ahead of the sales -- which start earlier and earlier every year.
Did you know that you can negotiate the cost of a car lease? You just have to know what to ask for.
The price for the mileage limit, down payment and purchase-option are all negotiable. And always inquire about rebates, advertised specials, factory-to-dealer incentives, or discounts.
Also, timing is key. The best deals are usually made at the end of the day, the end of the month, on a weekday and a rainy day. That's when car dealers need you more than you need them, so they're likely to be more willing to work with you.
Now that you're armed with these negotiating tips, you can walk into that dealership with confidence knowing you'll get the best deal.
Jim West/AlamyMonday's ISM manufacturing report painted a sunny picture of U.S. conditions, in sharp contrast to the outlook in Europe and China.By STEVE ROTHWELL
NEW YORK -- The stock market held close to record levels on Monday as a report showed that manufacturing remains on sound footing in the U.S. even as other parts of the global economy struggle. Falling oil prices weighed on energy stocks.
The U.S. manufacturing sector rebounded last month, matching a three-year high, according to The Institute for Supply Management, a trade group of purchasing managers. The report was preceded by downbeat manufacturing readings from China and Europe, feeding concern that growth in these regions could slide.
The sluggishness overseas "put a little damper on the U.S. data," said Brad Sorensen, Director of Market and Sector Analysis at the Schwab Center for Financial Research. "Really where the concern lies, at this point, is overseas."
Stocks are trading near record levels after strong company earnings helped the stock market recover from an early October slump. The market closed at an all-time high on Friday after the Bank of Japan surprised investors by announcing it would increase its bond and asset purchases in an effort to stave off deflation.
The Standard & Poor's 500 index (^GPSC) fell 0.24 points, or less than 0.1 percent, to 2,017.81. The Dow Jones industrial average (^DJI) dropped 24.28 points, or 0.1 percent, to 17,366.24. The Nasdaq composite (^IXIC) gained 8.17 points, or 0.2 percent, to 4,638.91.
Falling energy stocks also weighed on the stock market on Monday, as the price of U.S. benchmark oil fell to its lowest level in more than two years. Oil slumped following reports that Saudi Arabia is cutting the price it sells oil to the U.S. as it tries to maintain its market share, Bloomberg reported.
Benchmark U.S. oil dropped $1.76 to close at $78.78 a barrel. Brent crude, the international benchmark, slipped $1.08 to $84.78.
Oil has fallen sharply in recent weeks as global supplies rise while demand for fuel trails earlier expectations.
Energy stocks in the S&P 500 index dropped 1.8 percent Monday. The sector is now down 3.3 percent for the year. The sector is the worst performer among the 10 industry groups that make up the S&P 500 index, and the only one to be down for the year.
Deal news helped raise the stocks of some individual companies.
Sapient (SAPE) surged after French advertising group Publicis said it would buy the Boston-based marketing, communications and consulting firm for $3.7 billion in cash. Sapient soared $7.28, or 42 percent, to $24.60.
Covance (CVD) jumped after LabCorp (LH) said it would pay about $6.1 billion in cash and stock to buy the company in a tie-up that aims to improve clinical trial research for pharmaceuticals. Covance shareholders will receive $75.76 in cash and a portion of LabCorp stock for each share they own. Covance's stock climbed $20.67, or 25.9 percent, to $100.57.
As more than 70 percent of companies in the S&P 500 index have now reported their third-quarter earnings, investors will start turning their attention to economic reports, said David Lebovitz, Global Market Strategist for J.P. Morgan Funds. They'll be looking to see whether the U.S. can continue to expand, while other regions in the world struggle for growth.
In the U.S., "the data continues to be pretty solid," Lebovitz said. "What we're observing is an up-shift in U.S. economic growth."
The biggest economic news this week will likely come on Friday, when the U.S. government will release its monthly jobs report. Now that the Federal Reserve has ended its bond-buying program, investors are assessing when the Fed will start to raise interest rates.
In metals trading, the price of gold slipped $1.80 to $1,169.80 an ounce, silver rose 10 cents to $16.20 an ounce and copper rose two cents to $3.07 a pound.
In currency trading, the Japanese yen continue its slide against the U.S. dollar after the Bank of Japan's announcement that it would increase its asset purchases. The dollar rose 1.3 percent to 113.77 yen. The U.S. currency also gained against the euro, rising 0.3 percent to $1.2487.
In U.S. government bond trading, the yield on the 10-year Treasury note was little changed from Friday at 2.34 percent.
What to watch Tuesday:
The Commerce Department releases international trade data for September at 8:30 a.m. Eastern time, and Factory Orders for September at 10 a.m.
These selected companies are scheduled to release quarterly financial results:
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I spent nearly 15 years in financial services, with close to half of that time in online brokerage. During that time, I spoke with everyone from retail investors to CEOs dealing with the Great Recession in 2007 and 2008.
My biggest takeaway was how many people are financially unprepared. I expected a lack of financial literacy and a lack of funds. I didn't expect the subtly predatory practices by some brokers and advisers. This isn't an indictment on the industry (there are some great advisers out there who put their clients' needs first), but rather some background before I let you know the five most important things your broker isn't telling you.
1. They're There to Sell to You
This really shouldn't be much of a shocker, but sadly, it is. Many brokers exist to do one thing -- sell to you. Whether they're the person answering the phone when you call your online broker or someone higher up the food chain, they're compensated to sell to you. This isn't necessarily bad, but it can cause a conflict of interest or put you in a product that doesn't fit your needs.
That said, good advisers or brokers can put you in investments that can be worth their weight in gold. But you'll have to wade through a lot of murky characters -- who viewed investors as numbers and not value them as relationships -- to get to the good ones.
2. They Don't Know What's Going to Happen Next in the Market
I was often asked what I thought was going to happen in the stock market. It's an understandable question, especially over the past few years. The market has derailed many investing plans.
Yet you want to run very fast from advisers or brokers who tell you they know what's going to happen in the market. That goes back to one very important fact -- it's largely speculation. You want someone to take the long-term view.
3. They're Not as Educated as You Think They Are
It's easy to believe that brokers or advisers all have advanced degrees or special licenses. Unfortunately, that is not the case. In many cases, brokers only have to pass a test or two to sell securities or advise you. Often they have no previous experience in the industry and are in their role because they're good at sales.
This doesn't apply to all brokers. There are a number of certifications a good adviser can get, including certified financial planner, chartered financial analyst or chartered financial consultant, all of which require extensive work.
4. You're Paying Too Much for Your Investing
Most major online brokers only charge $2 to $3 per trade; if you're paying a lot more, that's just more profit for your broker. Price shouldn't be the lone factor when choosing an online broker, but it should be kept prominently in mind.
Outside of online brokerages, it's not uncommon for brokers to charge upwards of several hundred dollars to execute trades. There's simply no need to pay that much, and over years these kind of fees can put a major dent in your portfolio.
5. They're Not Keeping Track of Your Records
Among the worst problems I saw repeatedly involved people who needed specific information about investments they'd made many years prior, who discovered they were unable to get it. These investors made one fundamental error: They believed their broker would have the information.
The SEC requires brokers to keep statements on file for at least six years and trade confirmations for at least three years. This might seem like enough time, but I spoke with investors on a weekly basis who needed something older than six years and were left scrambling because their broker didn't have the records they needed. And these matters are even worse when the information is needed for tax purposes, and you have no way to prove what price you bought a certain stock for.
Don't Fall Asleep on Your Investing
Brokers and advisers can be a great asset. Hiring one, however, doesn't release you from responsibility -- rather it means you have more of it. When choosing a broker or an adviser, find one that's right for you and check regularly on your portfolio. You can use resources like the FINRA Broker Check to see potential advisers' employment history and any disputes or regulatory matters against them.
You can use the same tool to check on online brokers. When deciding on a brokerage, get as much information as possible. Your stress level and your portfolio will thank you.
John Schmoll is the founder of Frugal Rules, a finance blog that regularly discusses investing, budgeting, and frugal living. He is a father, husband, and veteran of the financial services industry who's passionate about helping people find freedom through frugality. He also writes about wise ways to manage your money at WiseDollar.org.
CorbisEvery one of us has had "aha! moments." Epiphanies. Days when we reach a crossroads and realize that we have to make some changes. For the next two months, we're sharing moments like those in our Life Stage Lessons series: Real stories straight from the financial lives of our DailyFinance contributors about times when they realized they were due for a serious course correction. So read on, learn from our mistakes, and get inspired to improve your relationship with your money.
We all have different reasons behind why we pick the colleges we attend. My reasons came down to a surprise party and roll of Bubble Tape gum.
The weekend before my ninth birthday, my Dad seemed anxious to get me out of the house. "Let's go to Media Play," he proposed. The now-defunct retail store used to be my favorite place to peruse cassette tapes, and later CDs.
An hour later we were in the checkout line, and I eyed a roll of grape-flavored Bubble Tape gum (a treat that, like those CDs, is less popular now than it was back then). "Dad, can I have that Bubble Tape?" I asked.
"Sure," he said and casually threw the gum atop a movie he planned to purchase.
Something Is Wrong Here
To a casual onlooker, this would seem like a typical father-daughter exchange. But that "sure" set a siren off in my head. My parents never just outright bought me anything, except for presents on my birthday and Christmas. My sister and I had to put up a 50 percent stake in any item we wanted. Few things teach a kid how to curb impulse spending like insisting she pays half for the stuffed animal she wants.
The fact my father would just buy the Bubble Tape without asking for that 50 percent meant something was amiss. I wracked my brain on the drive home wondering what could cause his sudden willingness to abandon a core value.
When we arrived at home, a surprise birthday party awaited, which explained my Dad's distraction. In that pre-cell-phone era, he was trying to finesse getting me back to the house at the right time, but without letting me see 25 kids sneaking in the door.
An Entitled Perspective in High School
Fast-forward nearly a decade later, and the family deal of paying for 50 percent impacted one of the biggest decisions of my young life.
I had barely paid attention to price tags during my college application process. My high school career was spent in top-notch international schools where the annual tuition cost about as much as many liberal arts colleges in the United States. I'd been afforded this opportunity by my father's career, which turned our family into expatriates only a year after that surprise birthday party. In his industry, covering the kids' fees at these elite schools was often bundled into the expat compensation package.
Unfortunately, these schools also tend to breed an unrealistic vision of finances.
Tuition? It's Just a Number
When you attend a high school where the general collegiate philosophy of many students (and their parents) is "Ivy League or bust," it should come as no surprise that tuition prices rarely come up in the "Where are you going?" discussion.
While the Ivies were not in my cross-hairs, I sent in applications to many elite liberal arts colleges on the Eastern seaboard, most with asininely high tuition. My obligatory "safety school" was a not-so-cheap small liberal arts college in western New York.
Many months later, after the acceptance letters arrived, my father called a meeting. He sat across from me at our slightly imposing dining room table and slid two pieces of paper across the table.
College A or College B?
The first one depicted my future debt burden if I were to pick College A (where I was already planning to send in a seat deposit). The second showed the my costs if I attended College B (that safety school), where I had an offer for an academic scholarship covering half of my tuition.
While my father and mother were financially capable of sending me to either without taking out loans, raiding their retirement accounts, or crippling the family finances, my father didn't see the value in paying College A's hefty price tag for my intended course of study (theater and journalism).
As I examined the pages, I quickly noticed something peculiar: If I picked College A, I'd be responsible for paying 50 percent of my college tuition. If I selected College B, my 50 percent was represented by those scholarships: I'd graduate debt-free.
Anger Finally Yields to Understanding
Should I have been surprised? No. My entire financial education had been leading toward this moment. But the mind of a 17-year-old girl is not always the most rational.
Appreciation for the fact my parents were willing to pay for half of my college education was not the emotion that registered. Instead, I grew angry at their refusal to cover all the costs at any college I planned to attend. The trite retort "All my friends' and classmates' parents are paying for their colleges" may have even slipped out. Not the strongest argument.
After some less-than-satisfying door slamming and dramatic calls to my inner circle of friends, I calmed down enough to look at my choices rationally.
My parents were offering me a gift: a debt-free college education -- assuming I kept up with my studies and maintained my scholarship all four years. It was up to me to decide if I wanted to graduate debt-free or pay the high price of attending a school that would look fancier on a résumé.
Return on Investment
All those years of paying 50 percent for what I wanted taught me to evaluate purchases, ponder the potential return on investment, and curb impulse spending. And that led me to decide it made more sense to graduate debt-free than shackled with upwards of $80,000 of debt.
Three-and-a-half years after graduating college, I don't regret my decision. The smaller school gave me opportunities to stand out and flourish. The tight-knit network afforded me opportunities to work with big-name news organizations and find a job in entertainment just two weeks after receiving my diploma. Best of all, I graduated with a positive net worth and never felt stressed about money -- even when I only earned about $20,000 during my first year living in New York City.
Erin Lowry writes for DailyFinance on issues relating to millennials, money and personal finance. She is the blogger behind Broke Millennial, where her sarcastic sense of humor entertains and educates her peers. She is also the brand and content manager for MagnifyMoney.
DALLAS -- The federal government is suing Southwest Airlines (LUV) after failing to reach a settlement with the carrier over allegations that repairs to dozens of planes didn't meet safety standards.
The Justice Department sued Southwest on Monday in federal district court in Washington state. The lawsuit seeks to enforce $12 million in civil penalties that the Federal Aviation Administration announced in late July.
The government says that starting in 2006 Southwest hired a contractor to make extensive repairs on 44 planes to prevent the aluminum skin from cracking. The FAA says the contractor, Aviation Technical Services Inc. of Everett, Washington, failed to follow proper procedures.
"We dispute the FAA's allegations and look forward to the opportunity to vigorously defend Southwest's record in a court of law," Southwest spokeswoman Brandy King said Monday night.
The Southwest case is the second-largest penalty that the FAA has ever sought against an airline, behind only a $24.2 million case against American Airlines.
Typically, airlines negotiate with the FAA to reduce the penalties. The FAA hit Southwest with $10.2 million in penalties in 2008, and that case was settled a year later for $7.5 million. The government's decision to sue Southwest barely three months after announcing the most recent penalty indicated the wide gap between the two sides.
The most serious allegation in the current case involves replacement of parts of the fuselages on 44 planes. The FAA said Aviation Technical Services workers under Southwest's supervision put sealant under the new skin panels but didn't install all the rivets fast enough for the sealant to be most effective, which could create gaps for moisture to penetrate and cause corrosion.
Dallas-based Southwest returned the planes to service in 2009 and kept flying some of them for months after the FAA warned the airline of the improper repairs, the FAA said. Regulators approved later repairs.
There's no doubt that the weeks of Black Friday and Cyber Monday will bring show-stopping sales and savings, but where will you be able to find the brightest of baubles and bargains that DealNews labels Editors' Choice?
Below, we've rounded up the top five stores that slashed the most price tags and flaunted the best sales during the Black Friday week time frame (from Thanksgiving to Cyber Monday) in 2013. These stores offered the best prices on the most popular items and annihilated the competition last year, so it's safe to assume that they'll want to repeat such success again this time around. It looks like less-familiar retailers are aiming to take out some of the top names for Black Friday.
Best for: Consumers who want a one-stop shop for sales, and those who don't mind the stress of staggered, fast-selling "Lightning Deals."
Few stores have come close to touching Amazon.com's reign throughout the holiday shopping season and, for the fourth year running, it has topped our list of winners. Last year, we listed 186 Editors' Choice deals from the mother of all online stores during Black Friday week -- that was 51 percent of its total deals we listed throughout.
How will Amazon manage to stay on top once again this year? As is now customary of the megastore, Amazon will be unrelenting in matching and undercutting prices at Walmart (WMT) and Best Buy (BBY) throughout Black Friday as well as the holiday season. Just keep in mind that a lot of these deals will sell out quickly.
Hottest deals: Last year, the store's greatest offering came in the form of a $200 Amazon gift card with the purchase of select Ultrabooks, while those looking for cheaper thrills scored a host of Editors' Choice-worthy 3D Blu-ray movies which had been discounted to just $5. Wise 2014 shoppers should thus look for gift card bundles on electronics, as well as super cheap movie deals. Also last year, Amazon offered a rare dollar-off discount on Cyber Monday: $5 off orders over $35 when you created and shared a wishlist.
Newegg: 164 Editors' Choice Deals
Best for: Tech lovers and shoppers who can't click quick enough for Amazon flash deals.
For the first time, Newegg outshone Walmart and Best Buy to earn second place on our list. Although the retailer once again relied on mail-in rebates for many of its top offers, we marked more than 100 of its deals as Editors' Choice throughout the Thanksgiving and Black Friday period in 2013 -- that's almost twice as many as 2012. The Cyber Monday week run saw an additional 64 such deals, which cemented the electronics store as one of the "best in show" throughout the season.
Although Amazon will still slaughter Newegg when it comes down to numbers, shoppers are more likely to get their hands on the finer deals from Newegg since Amazon's deals will go out of stock very quickly.
Hottest deals: Savvy shoppers might actually be able to make money at Newegg through a rebate; last year, for example, lucky shoppers scored a 64GB USB 3.0 flash drive with security software for a $7 profit. The store is also fantastic for all sorts of electronics, as it offered a Samsung (SSNLF) 40-inch 1080p HDTV for $10 less than the manufacturer's own Black Friday sale price, earning it some serious kudos from our tech-savvy staff.
Best Buy: 102 Editors' Choice Deals
Best for: Shoppers who prefer to prepare extensively with advance ads containing buzz-worthy doorbusters.
Best Buy also saw a rise in the number of Editors' Choice deals listed from our crew from the year previous, but it wasn't enough to stop it from slipping to third place in our ranking. More than half of its deals during Black Friday week were Editors' Choice-worthy -- that was 80 in total, while Cyber Monday week saw just 22 good enough to earn the tag.
Hottest deals: Best Buy frequently has some notable rumored doorbusters in its Black Friday ad, and last year was no different; flying off the virtual shelves was a new Kindle Fire HD 16GB tablet at the same price as a refurb, hitting an all-time low. Look to the store for a selection of name-brand, large-scale HDTV deals, as well as super cheap laptops. In 2013, for example, Best Buy offered the cheapest ever Haswell-equipped 17-inch laptopever.
Walmart: 73 Editors' Choice Deals
Best for: Shoppers who want a store that front-loads the best deals during Black Friday week, rather than Cyber Monday.
Despite only listing four fewer Editors' Choice deals last year, Walmart slipped two places to fourth-best over the holiday shopping period last year. As with each of the previously listed stores in our ranking, the national department store listed substantially more impressive deals during the Black Friday week period when compared to the following week's treats, as 60 percent of Walmart's Editors' Choice deals were listed during the first week of madness.
Hottest deals: We expect Walmart to once again offer an attractive selection of discounted Blu-ray movies and box sets this Black Friday (last year the store dropped contemporary and classic titles to just $4, beating Amazon's $5 sale). The store also offered a surprising favorite at the end of Cyber Monday in 2013, knocking the Nerf Rebelle Sweet Revenge Kit to half price via an in-store coupon, so shoppers should also consider the retailer for toy deals.
Tiger Direct: 56 Editors' Choice Deals
Best for: Shoppers who don't mind a rebate in the pursuit of a great TV deal.
TigerDirect just made the list this year, beating Home Depot by a mere six deals. Three-quarters of these Editors' Choice numbers were listed during the Black Friday week time-frame. The store listed a significantly lower number of top-notch deals revered by our editors over Cyber Monday week, but overall it put in a solid performance earning it the final place in our ranking.
Hottest deals: The Samsung Galaxy Tab 3 was top of the list, but didn't hit the virtual shelves until Cyber Monday week arrived. For one day only, it dropped to almost half the price of any other store. A selection of HDTVs, which hit all-time price lows after mail-in rebates, also won the hearts of the DealNews public. That list included the cheapest new 40-inch 1080p LED LCD HDTV we'd seen to date.
It may not be quite fair to include eBay in our ranking, since the deals are actually offered by a multitude of sellers, but we'd be remiss if we didn't at least give the store an honorable mention. Three-quarters of eBay's Editors' Choice deals were listed during Black Friday week, the most popular of which saw the Microsoft (MSFT) Surface 32GB RT Tablet drop by $100 to hit an all-time low. Cyber Monday saw a comparatively low number of deals marked with the honor.
The Best Black Friday Deals Breakdown
How, exactly, does DealNews deem something to be Editors' Choice? Throughout the year, the staff will pick only the cream of the crop of the daily deals to honor with this label, which means that the item is at or close to an all-time low price, or is receiving a notable or rare discount.
Getty Images
Since I was hired at the financial empowerment website MagnifyMoney six months ago, I've spent my workdays looking at the best (and worst) balance transfer deals, rewards credit cards, checking accounts, savings accounts and personal loans. But in a prime example of inertia, I've been slow to change my financial products, even after spending half a year being inundated with hard evidence that many of my money-related decisions were inferior.
Finally, I Joined a Credit Union
My decision to join a credit union wasn't actually based in a desire to use it as my primary bank.
Credit unions should be lauded for their ability to offer Americans an alternatives to the mega banks. They work solely to serve their members, who are also the owners (to join a credit union, you buy a share). Big banks, by contrast, often serve their shareholders at the expense of their customers, which is why customers are served up high overdraft fees and maintenance fees on one side, and infinitesimally low interest rates on their savings accounts on the other.
However, most credit unions still feature brick-and-mortar branches, where they need to keep the lights on. While their fees are less than those of the big banks, those fees do exist.
The reason I decided to join a credit union wasn't to escape the clutches of a monolithic bank (I'd already opted into Internet-only banking) but rather, to get a credit card.
Why Get a Credit Card from a Credit Union?
I'm a millennial anomaly. I've never carried debt. No auto loans. No mortgages. No student loans. No personal loans. No interest ever paid to a bank or lender. None. (Note: I don't consider using a credit card being in debt if you pay off your entire bill on time and in full each month, because if you do that, you pay no interest.)
I have a sizable emergency fund, money invested in non-retirement accounts that could be liquidated if I needed to and a savings account. Should an emergency befall me tomorrow, I'm theoretically prepared.
Despite all this, I decided to get the Promise Visa (V) Card from Pentagon Federal Credit Union to put in my safety deposit box, in case of emergencies. The Promise Visa offers a 9.99 percent annual percentage rate and no penalty APR. This APR is subject to change with the market based on prime rate, but it will likely stay significantly lower than competing credit cards.
In Case of Emergency, Break Plastic
Let's say a series of unfortunate events occur, and I suddenly need $7,000 to cover emergency bills.
Perhaps I don't feel comfortable draining my emergency fund to zero or liquidating an investment. Even worse, what if I get hit by a bunch of issues all at once, my emergency fund has already taken a hit, and I can't afford to pay so much in one fell swoop.
The Promise Visa provides an option to avoid predatory lenders. At a 9.99 percent APR, I could take on the debt at a relatively low interest rate. I could always elect to do a balance transfer later or shop around for a personal loan at a lower interest rate -- once matters had calmed down.
Credit cards are not the ideal way to manage your debt. Their interest rates are often higher than personal loans or a personal line of credit -- assuming you have an excellent credit score. Anything less than an excellent credit score often leads to loan interest rates in the double digits. But sometimes you need to make a payment quickly, and don't have time to shop around for the cheapest alternative.
Personally, I view this type of credit card as a fire extinguisher housed in a glass case. You don't want to break that glass unless you really, really need it. But you do want the fire extinguisher to be there.
Why the PenFed Promise Visa?
I did my due diligence. As of this writing, PenFed is unbeatable in terms of APR, and it has no hidden traps, no fees and -- perhaps even best -- simplicity. Recently, MagnifyMoney.com (as mentioned before, my employer) awarded the PenFed Promise Visa our first A+ transparency score. The Promise Visa only has one page of terms and conditions, no penalty APR and no annual fee.
You do need to be a member of PenFed to apply, so if you aren't already a member it will cost $20 to join -- $5 to keep in an active savings account and $15 one-time donation. However, PenFed also offers incredibly low interest rates on mortgages and auto loans, so it's a shrewd move to become a member.
The Best vs. the Worst
Let's compare this A+ credit card to one of the worst one the market today.
PenFed Promise Visa offers no annual fee; introductory APR of 7.49 percent for 36 months, then a set 9.99 percent; no penalty APR; and credit limit ranging up to $50,000.
First Premier Bank -- America's 10th largest issuer of Visa and MasterCard (MA) -- offers what can only be described as an F-level credit card. Potential cardholders need to pay a $95 processing fee to even apply for the card. Once approved, they'll owe a $75 annual fee. In year two, the annual fee is $45, but cardholders have to pay an additional monthly servicing fee, which costs $6.25 a month (or $75 annually). To top it all off, First Premier Bank charges a 36 percent APR and includes heaps of fine print, including disclosure that the credit limits are $300. Customers would need to spend $170 for a $300 credit limit.
Diversification is Key
Diversification is a fundamental concept for anyone learning about personal finance. However, while must discussions on the topic rightly focus on diversifying your investments, a similar case can be made for financial products. Savvy consumers should always be on the hunt for the best deals and integrating them into their financial portfolio. Even if you've covered the bases on emergency planning, it's smart to include some diversity and redundancy in your financial arsenal.
Erin Lowry writes for DailyFinance on issues relating to millennials, money and personal finance. She's also the blogger behind Broke Millennial, where her sarcastic sense of humor entertains and educates her peers. She is also the brand and content manager of MagnifyMoney.
WASHINGTON -- A cyberattack similar to previous hacker intrusions from China penetrated computer networks for months at USIS, the government's leading security clearance contractor, before the company noticed, officials and others familiar with an FBI investigation and related official inquiries told The Associated Press.
The breach, first revealed by the company and government agencies in August, compromised the private records of at least 25,000 employees at the Homeland Security Department and cost the company hundreds of millions of dollars in lost government contracts.
In addition to trying to identify the perpetrators and evaluate the scale of the stolen material, the government inquiries have prompted concerns about why computer detection alarms inside the company failed to quickly notice the hackers and whether federal agencies that hired the company should have monitored its practices more closely.
Former employees of the firm, U.S. Investigations Services, also have raised questions about why the company and the government failed to ensure that outdated background reports containing personal data weren't regularly purged from the company's computers.
Details about the investigation and related inquiries were described by federal officials and others familiar with the case. The officials spoke only on condition of anonymity because they were not authorized to comment publicly on the continuing criminal investigation, the others because of concerns about possible litigation.
A computer forensics analysis by consultants hired by the company's lawyers defended USIS' handling of the breach, noting it was the firm that reported the incident.
The analysis said government agencies regularly reviewed and approved the firm's early warning system. In the analysis, submitted to federal officials in September and obtained by the AP, the consultants criticized the government's decision in August to indefinitely halt the firm's background investigations.
Familiar Attacks
USIS reported the cyberattack to federal authorities on June 5, more than two months before acknowledging it publicly. The attack had hallmarks similar to past intrusions by Chinese hackers, according to people familiar with the investigation. Last March, hackers traced to China were reported to have penetrated computers at the Office of Personnel Management, the federal agency that oversees most background investigations of government workers and has contracted extensively with USIS.
In a brief interview, Joseph Demarest, assistant director of the FBI's cyber division, described the hack against USIS as "sophisticated" but said "we're still working through that as well." He added, "There is some attribution" as to who was responsible, but he declined to comment further.
For many people, the impact of the USIS break-in is dwarfed by recent intrusions that exposed credit and private records of millions of customers at JPMorgan Chase (JPM), Target (TGT) and Home Depot (HD). But it's significant because the government relies heavily on contractors to vet U.S. workers in sensitive jobs. The possibility that national security background investigations are vulnerable to cyber-espionage could undermine the integrity of the verification system used to review more than 5 million government workers and contract employees.
Treasure Trove
"The information gathered in the security clearance process is a treasure chest for cyberhackers. If the contractors and the agencies that hire them can't safeguard their material, the whole system becomes unreliable," said Alan Paller, head of SANS, a cybersecurity training school, and former co-chair of DHS' task force on cyberskills.
Last month, the leaders of the Senate Homeland Security and Governmental Affairs Committee, Tom Carper, D-Del., and Tom Coburn, R-Okla., pressed OPM and DHS about their oversight of contractors and USIS' performance before and during the cyberattack.
Another committee member, Sen. Jon Tester, D-Mont., said he worried about the security of background check data, telling the AP that contractors and federal agencies need to "maintain a modern, adaptable and secure IT infrastructure system that stays ahead of those who would attack our national interests."
The Office of Personnel Management and the Homeland Security Department indefinitely halted all USIS work on background investigations in August. OPM, which paid the company $320 million for investigative and support services in 2013, later decided not to renew its background check contracts with the firm. The move prompted USIS to lay off its entire force of 2,500 investigators. A company spokesperson complained that the agency hasn't explained its decision. Representatives from OPM and DHS declined comment.
Cybersecurity Not Evaluated
Last month, the federal Government Accounting Office ruled that Homeland Security should re-evaluate a $200 million support contract award to USIS. The GAO advised the department to consider shifting the contract to FCi Federal, a rival firm, prompting protests from USIS.
In the private analysis prepared for USIS by Stroz Friedberg, a digital risk management firm, managing director Bret A. Padres said the company's computers had government-approved "perimeter protection, antivirus, user authentication and intrusion-detection technologies." But Padres said his firm didn't evaluate the strength of USIS' cybersecurity measures before the intrusion.
Federal officials familiar with the government inquiries said those assessments raised concerns that USIS' computer system and its managers weren't primed to rapidly detect the breach quickly once hackers got inside.
The computer system was probably penetrated months before the government was notified in June, officials said. Cybersecurity experts say attacks on corporate targets often occur up to 18 months before they are discovered and are usually detected by the government or outside security specialists.
Still, USIS noted its own security preparations "enabled us to self-detect this unlawful attack."
Padres said the hackers attacked a vulnerable computer server in "a connected but separate network, managed by a third party not affiliated with USIS." He didn't identify the outside company.
Sensitive Data Not Protected
Former USIS workers told the AP that company investigators sometimes stored old or duplicate background reports that should have been purged from their laptops. The reports contained sensitive financial and personal data that could be used for blackmail or to harm government workers' credit ratings, the former workers said.
Former USIS employees who worked with the federal personnel office said the system they used directed users to purge old reports. But the workers said USIS and OPM rarely followed up with spot checks. Employees who worked on systems with the Homeland Security Department said these had no similar automatic warning function and spot checks were rare. The company insisted spot checks were regularly performed.
Several former USIS workers said they were told nothing by the company about the cyberattack for two months after the breach was exposed. In emails obtained by the AP, company workers were ordered to change their passwords without explanation.
The USIS spokesperson said the government directed the company's decision to keep silent about the breach. Experts said companies often withhold such information for both security and management reasons.
"Employees may not like it," Paller said, "but from a business perspective, that's what companies do."
-Associated Press writer Eric Tucker in Washington contributed to this story.
WASHINGTON -- The U.S. housing market cooled off in September, as home prices rose at an ever slowing pace.
Prices increased 5.6 percent in September compared to a year ago, real estate data provider CoreLogic said Tuesday. That's down from annual gains of 6.4 percent in August and 6.8 percent in July.
Home prices had been climbing by as much as 12 percent annually toward the end of last year. But the acceleration out of the housing crash that triggered the Great Recession has become unsustainable. Wages have barely budged after inflation and lending standards remain relatively strict. This makes it difficult for families to pay the higher home prices.
CoreLogic (CLGX) forecasts that the slowdown will continue, with annual home price growth slipping below 5 percent by September 2015. This should help bolster home sales for first-time buyers with adequate incomes and down payment savings, yet there are few signs that younger Americans are buying real estate.
The share of homes bought by first-timers fell to 33 percent this year from 38 percent in 2013, according to a report released Monday by the National Association of Realtors. That share of sales was the lowest since 1987 and significantly below the historic average of 40 percent.
Higher rents, meager incomes and student debt have minimized how much money millennials can save. A typical first-time buyer earned $68,300 and purchased a 1,570 square-foot home worth $169,000.
Part of the problem is that fewer households are forming since the recession struck in late 2007. Nearly a third of adults are living with roommates or family, compared to 27.4 percent in 2006, according to the real estate firm Zillow (Z).
As a result, the United States contains 5.4 million fewer households than it otherwise would. The individuals living in a doubled-up household have median incomes of $29,000, less than half of what a median first-time homebuyer earns.
Every state registered a price gain in September, according to CoreLogic. Prices reached new peaks in Colorado, North Dakota, South Dakota and Texas, while prices are within 10 percent of their previous highs in 28 other states.
WASHINGTON -- The U.S. trade deficit unexpectedly widened in September as exports hit a five-month low, suggesting slowing global demand could undercut economic growth in the final three months of the year.
The Commerce Department said Tuesday the trade gap increased 7.6 percent to $43.03 billion. Economists had forecast the shortfall at $40 billion in September.
"The disappointing performance in export activity suggests that the loss of export competitiveness from the strong dollar and the weak global backdrop are becoming a net drag on U.S. economic activity," said Millan Mulraine, deputy chief economist at TD Securities in New York.
The trade deficit was bigger than the $38.1 billion gap that the government had assumed in its advance gross domestic product estimate for the third quarter published last week.
The weak trade data came on the heels of a report Monday showing a decline in construction spending in September.
Economists said the two reports combined suggested that the third-quarter 3.5 percent annual growth pace could be cut by as much as half a percentage point when the government publishes its revisions later this month.
Trade was reported to have contributed 1.32 percentage points to GDP growth.
U.S. financial markets were little moved by the trade data.
In another report, the Commerce Department said orders for factory goods fell for second straight month in September. Relatively firm domestic demand, however, is expected to keep U.S. factories humming.
Exports in September fell 1.5 percent to $195.59 billion, the lowest since April, a sign that weakening demand in key markets such as China and the eurozone was starting to weigh.
Exports are likely to weaken further after a survey of U.S. manufacturers published Monday showed a decline in a gauge of export order growth.
Strengthening Dollar
Apart from slowing global demand, export growth is seen crimped by a strong dollar, which so far this year has strengthened by about 4 percent against the currencies of the country's main trading partners.
The decline in exports in September was broad-based, with the exception of food and beverages, which rose.
Exports to the European Union fell 6.5 percent in September, while those to China slipped 3.2 percent. Exports to Japan tumbled 14.7 percent. There were also declines in exports to Mexico and Brazil.
Overall imports were unchanged in September as petroleum imports hit their lowest level since November 2009. A domestic energy boom has seen the United States reduce its dependence on foreign oil, helping to temper the trade deficit.
Declining crude oil prices, which hit a seven-month low in September, are also helping to put downward pressure on the value of petroleum imports.
Consumer goods imports, however, were the highest on record, as were non-petroleum imports. Economists were disappointed with the stall in imports, but were encouraged by the rise in consumer goods imports as this was a sign domestic demand was holding firmer.
"The stronger dollar isn't doing much to spur consumer demand for goods outside of the U.S. borders," said Jennifer Lee, an economist at BMO Capital Markets in Toronto.
Imports from China hit an all-time high, leaving the politically sensit
DETROIT -- Ford (F) is recalling more than 202,000 cars, vans and trucks in North America in five separate recalls to fix gas leaks, air bag sensors, stalling and other issues.
The company says the problems have caused one accident, but it's not aware of injuries in any of the cases.
The biggest of the recalls announced Tuesday affects about 135,000 F-150 pickups and Ford Flex family haulers from the 2014 model year. Faulty passenger seat weight sensors can stop air bags from inflating in crashes. Dealers will widen a gap between the seat frame and track, and then recalibrate the sensors. Also covered are some 2009 through 2014 F-150s that were serviced for seat track problems this year.
The recalls are examples of how automakers are moving faster to report and correct safety problems in the wake of large penalties paid to the U.S. government by General Motors (GM) and Toyota (TM). GM was fined $35 million for its slow response to the ignition switch recall and Toyota paid a $1.2 billion penalty to settle a criminal charge that it hid safety information from the National Highway Traffic Safety Administration.
So far this year, automakers have issued over 550 recalls affecting more than 52 million vehicles. That shattered the old full-year record of 30.8 million recalled vehicles set in 2004. GM alone has issued 75 recalls totaling more than 30 million vehicles this year.
Here are details of the other Ford recalls:
About 38,600 Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Cars from 2005 to 2011. They're being recalled for a second time to fix problems with steering shafts that can separate. Improper repairs can cause loss of steering. Dealers will inspect and replace the upper intermediate steering shaft if needed. They also will inspect lower steering column bearings and install bearing retainers if needed. Ford says it knows of one crash from this problem.
About 27,600 Transit Connect small vans from 2014 for potential fuel line leaks. Fuel and vapor lines may have been routed incorrectly in vans with 2.5-liter engines. The lines can rub and possibly cause leaks over time. Ford says it's not aware of any fires. Dealers will inspect and reroute the lines if needed.
About 90 Transit large vans from 2015 with 3.2-liter diesel engines. A bracket that holds the fuel filter to the frame can detach, causing engine stalling. Dealers will reinforce the underbody structure.
About 960 F-150 pickups from 2014. A brake pedal position switch may not be set right. This could delay illumination of brake lights and require increased effort to on the pedal to shut off the cruise control. Dealers will reinstall the switch.
Eric Gay/AP
Things like voter fraud and voter identification laws are often at the forefront of Election Day controversies, and while those issues tend to be very partisan, there's a less-politicized problem that may keep some Americans from voting: identity theft.
In a survey of identity theft victims conducted by the Identity Theft Resource Center, 18 percent of respondents said their identity was used during the commission of a crime, meaning the thief's transgressions are associated with the victim's name. In some states, ex-felons can permanently lose their right to vote, and if identity theft victims don't make sure their records have been cleared of crimes committed in their names, they may have trouble registering to vote.
A couple of years ago, Alfonzo Reynolds ran into this problem. A man had stolen his identity five years prior to the 2012 election cycle and committed felony theft using his name. The thief served six months in prison under the name Alfonzo Reynolds. Reynolds thought his name had been cleared, but his voter registration was rejected, according to 2012 story in the Virginian-Pilot. Virginia is one of 11 states where felons may lose their right to vote.
In 2007, Reynolds received a bill from the Virginia Beach Sheriff's Office for jail "room and board," the Virginian-Pilot reported, which eventually led Reynolds to find out a man had committed four misdemeanors and a felony using his name. His record was expunged, but "Alfonzo Reynolds" remains in a state criminal background check database, as an alias of the man who stole Reynolds' identity. That's why his voter registration was denied.
It all worked out -- a judge signed an order allowing Reynolds to vote, the newspaper reported -- but man, what a pain. It's not to difficult to imagine some citizens opting to not vote, rather than deal with the process of straightening everything out.
Even if you've had to deal with identity theft before, that doesn't mean you can let your guard down and assume everything was fixed. Protecting your identity should be a part of your daily routine, no matter your history with identity theft, because there's no reason you should have to face ongoing financial trouble or be denied your rights as a citizen because of something you didn't do.
Did you know that you can negotiate the cost of a car lease? You just have to know what to ask for.
