www.youtube.com"Marco Polo" can be binge-watched on Netflix starting Dec. 12.
It's been a wild year, and 2014 comes to a close this month. This doesn't mean that investors can take it easy over the holidays. Let's check out some of the potentially market-shaping events that will take place in the coming weeks.
Dec. 5
All eyes will be on retailers in the coming weeks as holiday shoppers slam stores in search of deals on gifts. One chain to watch is Big Lots (BIG). The seller of overstocks, clearance items, and other deeply discounted merchandise reports quarterly results on Friday morning.
Analysts aren't holding out for much. They see a smaller quarterly deficit than it posted a year earlier on a slight dip in sales. However, Big Lots should provide an early read on the thriftiness of this season's holiday shoppers.
Dec. 11
Upscale yoga seller lululemon athletica (LULU) was a growth darling in the fickle retail industry until early last year when there was an embarrassing recall of its flagship and expensive Luon pants because they were too sheer. Investors that made out so nicely on lululemon through 2012 took a hit in 2013, and the stock is likely to lose ground again in 2014 if it doesn't come through with a blowout quarter when it reports next week.
It's been hard for lululemon to bounce back. Comparable-store sales have declined 5 percent through the first half of this fiscal year, and profitability is going the wrong way. Sales are growing, but that's only because lululemon continues to expand its store base. With the critical holiday season here, lululemon will have to prove that affluent shoppers with active lifestyles have embraced the brand again.
Dec. 12
Netflix (NFLX) has made it cool to create serialized content that streams exclusively through the leading online video service. Netflix has scored big hits with "House of Cards" and "Orange Is the New Black," and late next week it's hoping to catch lightning in a bottle again with "Marco Polo."
True to Netflix's strategy, all 10 of the first season's episodes will be available on Dec. 12. This will be a big-budget affair. Reports suggest that the lavish production of the Asian epic tale cost roughly $90 million. After Netflix fell short of its net subscriber additions during the third quarter it is hoping that this is the kind of magnetic content that attracts more global members.
Dec. 16
Activists won the battle at Darden Restaurants (DRI), and now it's time to see if it can win the war. The parent company of Olive Garden and LongHorn SteakHouse will deliver its first quarterly report since shareholders shook up the boardroom.
It will be too early to see how the new blood is faring in turning around Darden's problematic Olive Garden concept, but the Dec. 16 report and subsequent conference call should provide some insight on the first steps to take in making the Italian casual dining chain relevant again.
Dec. 23
Things quiet down as the year comes to a close. Volume lightens up as traders head off for the holidays, and the same goes for corporate executives. That won't stop Walgreen (WAG) from posting quarterly results for its fiscal first quarter.
Analysts see the drugstore operator earning 74 cents a share, just above the 72 cents a share it posted a year earlier. That may seem conservative, but Walgreen hasn't beaten Wall Street's quarterly profit forecasts in more than a year.
Motley Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends Lululemon Athletica and Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. Check out our free report on our favorite high-yielding dividend stocks.
Can't make up your mind about the type of pizza you want? Need some help? Pizza Hut (YUM) is happy to help with new eye-tracking technology that notes what consumers look at and builds a suggested dish in response, according to a news release from Pizza Hut and vendor Tobii Technology.
Pizza Hut has tested the system for the last six months in the U.K. and is now rolling out to refurbished locations there. The Subconscious Menu uses a tablet.
A customer follows a Pizza Hut logo over several locations to calibrate the session, and then the tablet presents an array of toppings. The release claims 20 are displayed, but the video shows only 18.
Your Favorite Among the 4,896 Choices Is ...
In 2.5 seconds, the system measures which items you look at the longest and then combines them for one out of 4,896 pie choices that should suit your mood. The companies claim a 98 percent success rate. If the Subconscious Menu gets your theoretical order wrong, you can look at a re-start button and begin the process again. Or, presumably, just tell someone there that you want a large sausage and mushroom.
"Finally the indecisive orderer and the prolonged menu peruser can cut time and always get it right," read a company statement sent to the Washington Post. Pizza Hut said that digital orders were 40 percent of its delivery and carry-out business last quarter.
However, it's unclear how necessary or important such advances might be. Most people looking for pizza manage to order without difficulty. But the Post notes that such automated ordering can make it easier for people to see and order extra items on impulse.
Tablets are being seen by others in the fast food industry as a potential tool, as experts say that people will buy more if they can order directly from a screen. McDonald's (MCD), which has been in a heavy slump, is testing a tablet ordering concept in which people tap what they want on the screen and an employee brings the order to the table, according to the Post. Chili's (EAT) has installed more than 45,000 tabletop tablets in locations across the U.S.
Next up: the completely digitized meal delivered online so you never have to make the effort to chew.
DETROIT -- Under pressure from U.S. safety regulators, two automakers are expanding recalls or adding them to fix potentially faulty passenger air bags in high-humidity states.
Documents posted Tuesday by the government say Subaru is expanding a previous recall of five models. Mitsubishi is recalling one model, the 2004 and 2005 Lancer small car.
Both companies have cars equipped with air bags made by Takata Corp. The bags can inflate with too much force and spew metal shrapnel into the passenger compartment. At least five people have been killed by the faulty air bag inflators.
Previous recalls were limited to Florida, Hawaii, Puerto Rico and several other territories. The new Subaru and Mitsubishi recalls now cover those areas as well as southern Georgia and coastal areas of Alabama, Mississippi, Louisiana, Texas and South Carolina. Different automakers have different recall boundaries, and the government is trying to bring them all into line to avoid confusion.
The National Highway Traffic Safety Administration says airborne moisture can get into the chemical that makes the air bags inflate, causing it to burn too fast. That can blow apart a metal inflator canister. The agency has evidence that passenger air bags can malfunction in areas with average annual dew points of 60 degrees or above.
The Subaru recall affects the 2003 to 2005 Outback, Legacy and Baja, as well as the 2004 and 2005 Impreza, and the 2005 Saab 9-2X, which was made by Subaru.
Neither Subaru nor Mitsubishi released numbers of vehicles covered by the new recalls.
The government is demanding a national recall of Takata driver's air bag inflators. The company has until midnight to respond to the demand from NHTSA or face legal action and civil fines.
Company officials thus far haven't commented on the demand, but they did comply with a data request from the agency on Monday.
NHTSA says two incidents outside the high-humidity zone justify the national driver's air bag recall. But the agency says it doesn't have data to justify a national recall of passenger side air bags.
Chamille White/Shutterstock
On Monday, LendingClub announced that it is looking to raise up to $692 million in an initial public offering. That would value the business at around $4 billion. The business has attracted high profile investors (Google (GOOG)), and directors (Lawrence Summers). It has also helped facilitate more than $5 billion of loans to borrowers, and investments to investors.
But is the hype worth it?
Borrowing Money is Expensive
American consumers have charged more than $800 billion on their credit cards. And they are paying very high interest rates on those credit cards. These high rates help banks generate incredible profits from their credit card divisions. Credit card businesses usually have higher returns than investment banks.
Borrowing money costs far too much in this country. With interest rates close to 0 percent, there is no reason that consumers should be paying 15 percent or more to borrow money. LendingClub looked at these high interest rates and sensed opportunity.
If you are looking to earn a good return on your money, it can be challenging. Simple savings accounts pay basically no interest. Most traditional banks are paying 0.01 percent on savings accounts. To get the best deals, you have to go to a branch-free bank, where you will still only be receiving 1 percent.
High yield bond funds (close to junk bonds) are only paying around 5 percent.
LendingClub looked at the amount of risk required to get a 5 percent return and sensed an opportunity.
Taking the Banks out of the Equation
Banking is actually a very simple business model. A bank takes money from depositors and lends it to borrowers. The difference between what it charges the borrowers and pay the depositors is its profit.
It seems outrageous that banks can pay 0.01 percent on savings account deposits and charge 15 percent or more on credit cards. So, LendingClub decided to create a new platform that removes banks from the game.
If you invest in the platform, than you are lending money directly to borrowers. You can invest as little as $25 in each loan, and you can see the credit profile of each individual investor. At a $25 minimum investment, you can quite easily build a diversified portfolio of more than 250 loans. After adjusting for losses, the average return on a diversified investment portfolio is about 7 percent.
And if you are borrowing from the platform, you can receive a much lower interest rate than offered by the credit card companies. By consolidating your credit card debt onto a LendingClub loan, you can cut your interest expense significantly.
What is the Catch?
If you are a borrower, there is no real catch. In fact, you can even check to see if you are approved without having a hard credit inquiry on your credit report. If you have credit card debt, you really should look to see if you can get a better deal from LendingClub.
LendingClub has been growing so rapidly, that many other people are copying the model. This is good news for borrowers, because they can shop around. MagnifyMoney has created a list of places where you can find personal loans, including the interest rate range. You will see a lot of names you don't recognize: this is the long list of LendingClub imitators.
If you are an investor, you should proceed with caution. Unlike bank deposits, these investments are not FDIC-insured. So, you could lose everything. And there is not a lot of history from these loans, given how young most of these companies are. But, investing in LendingClub can be an interesting part of a diversified investment portfolio, and can help you generate some real income.
Unlike bonds, you are receiving principal and interest repaid to you. So the cash flow is significant. Just make sure you invest in a broad enough portfolio. I recommend at least 250 notes; 500 is even better. If you invest in fewer than 250 notes, than you are basically gambling.
Is This the Future?
I think LendingClub is a great business model that will challenge banks to get better at their core business. For too long, we have allowed banks to pay far too little on savings accounts and charge too much on credit cards. LendingClub will do a much better job than any regulator ever could. With an innovative business model and competition, LendingClub should help investors get extra yield and borrowers pay off their bills faster.
Much has been written of ApplePay (AAPL) and its ability to kill the traditional credit card market. We must not forget that most of the money in credit cards is made from lending money, not from payments. And the real way to kill the traditional credit card market is to shift borrowing from plastic to an alternative channel. I hope LendingClub raises enough capital to become a very serious competitor to the traditional banking sector: it will be good news for all of us.
Nick Clements is the co-founder of MagnifyMoney.com, a price comparison website that helps your find the best deals in banking. He spent nearly 15 years in consumer banking, and most recently he ran the largest credit card business in the U.K.
Jonathan Wiggs/The Boston Globe via Getty ImagesThe city of Springfield, Mass., is poised to get an MGM casino resort complex.
Gamblers in the northeastern U.S. will soon be very spoiled for choice. In early November, Massachusetts residents voted overwhelmingly to allow Las Vegas-style casino gambling in their state, paving the way for a pair of big casino projects there (plus a smaller slot parlor).
One is to be built by Wynn Resorts (WYNN) in the Boston suburb of Everett, and the other by MGM Resorts International (MGM) in the smaller city of Springfield. Both operators are coming to a region that's already thick with competition.
Big Crowd at the Table
Massachusetts is late to the Northeast casino game. Neighboring Connecticut has been drawing bettors for over 20 years with a pair of Native American-run gambling palaces, Pennsylvania has a host of casinos and New Jersey's Atlantic City is still trudging along.
A crowded market means that not every player can win. At the moment, both Connecticut casino projects (Foxwoods and Mohegan Sun) are struggling with heavy debt loads, while Atlantic City is in a dire state, with several casinos shutting their doors lately.
On top of all that, New York is set to award up to four casino licenses for projects in its upstate region.
Full House or Fold?
With all that in mind, at first blush it seems Wynn and MGM aren't placing smart bets on success. Their two Massachusetts projects are big, costly and not far away from rivals.
Wynn Everett is planned to be a $1.6 billion complex boasting around 500 luxury rooms, while MGM plans to slap down about half that amount for a 250-room hotel encompassing 125,000 square feet of gaming space in Springfield's city center.
But comparing those projects with the top Las Vegas assets of both companies reveals that the newcomers will be relatively small. The Wynn Las Vegas is an unmissable presence on that city's Strip, with over 2,700 rooms. The MGM Grand Las Vegas is the second-largest largest hotel in the world -- the hulking structure houses around 5,000 lodgings (which even include villas) across various budget categories. There's gambling aplenty, to the tune of 171,500 square feet of space.
And both companies also have a significant presence in the Chinese gambling enclave of Macau, with properties that have lower room counts, but significantly more square footage for gambling.
Modest Wagers
So it's not as if Wynn and MGM are staking their futures on the Massachusetts projects. Rather, these seem to be the focus of other ambitions.
Just after winning its concession, Wynn's namesake CEO Steve Wynn said he's set to build "the first grand hotel in decades." That statement, plus the facility's planned high room count and relatively limited casino space (less than 10 percent of the complex, according to the company) indicate a focus on the luxury resort aspects of the project instead of the gambling. Traditionally, the latter has been the money attraction of casino hotels.
MGM Springfield is more traditional, effectively a scaled-down version of a monster Vegas resort -- the company's usual stock in trade. In contrast to Wynn, which at the moment operates properties only in Las Vegas and Macau, MGM is active in several casino markets in this country (and a few abroad). Its only current operation in the Northeast, however, is The Borgata in Atlantic City, where it's a 50 percent stake joint venture partner with Boyd Gaming (BYD).
The company hasn't revealed its deeper motivations for pushing the Springfield investment, but judging by its history it's eager to spread its geographic reach, and shore up its operations in the Northeast. Springfield won't be massive, but it will give MGM a solid and conspicuous, (i.e., free PR-producing) presence in the area.
There'll Be Time Enough for Counting When the Dealing's Done
Of the two projects, Wynn Everett looks more likely to produce a higher return for its parent company. Its location is a short drive away from Boston, a big city full of potential customers. The casino will draw gamblers from there, while the resort aspects of the complex should attract big spenders looking to enjoy a luxury holiday.
MGM Springfield is in a much smaller city, and it will go up against not-very-far-away Mohegan Sun and Foxwoods. And depending on where the New York projects land, it'll probably have to fight for business with at least one.
Regardless of their level of success, though, the two projects are sure to alter the gambling landscape of the Northeast. The cards are being shuffled, the players are planting themselves at the tables. It'll be interesting to watch who wins the game -- and how.
Brennan Linsley/AP
The demise of giant electronics retailer Best Buy (BBY) may have been greatly exaggerated. For years, critics have derided the company's heavy reliance on bricks-and-mortar stores in an age where online shopping has come to rule the retail sector. Many predicted that the company would sink into obsolescence sooner rather than later.
If Best Buy's recent results are anything to go by, however, it's doing better than many thought it would, and it might, just might, continue to survive and thrive alongside its determined e-competition.
Better Business Through Technology
Best Buy posted some very encouraging results for its fiscal third quarter 2015. Comparable-store sales rose by a bit over 2 percent. That was far better than the average analyst projection, which was for a drop of 2 percent. The firm also trounced expectations for revenue and profitability.
Why the upside surprises? One major reason is that the company managed to boost online sales by a muscular 22 percent over the third quarter of 2014. It didn't break out the exact numbers, but in the second quarter it pulled in $581 million from the activity, or nearly 8 percent of that quarter's domestic revenue.
The better online numbers are due in part to improvements to the company's web storefront, and also a comparatively new tool for retailers, ship from store. Leveraging the most competitive asset Best Buy has -- its network of 1,473 stores throughout the country -- the firm is using its inventory from those outlets to fill orders from its online customers.
This has many benefits. It gets the purchased goods to a customer quickly (as the chances are rather good that he or she has a Best Buy not far from his or her home). It also moves inventory that might otherwise go unsold, occupying valuable storage space that could be used for more popular products. It also greatly reduces the need for fulfillment centers dedicated solely to online purchases -- this is online-only giant Amazon.com's (AMZN) stock in trade.
Ship-from-store has quickly become serious business for Best Buy. Last year, the company was doing it from only around 400 of its outlets. In this past third quarter, that number ballooned to approximately 1,400 -- nearly all of its stores.
Bigger Spenders
Though management certainly deserves credit for Best Buy's encouraging quarter, the company's also got good timing on its side. American consumers are opening their wallets a little wider of late, and the broader retail industry is ringing up more sales.
Numerous factors play into this, most notably the fact that more Americans have jobs. The economy added 214,000 of them this past October, dipping the unemployment rate to 5.8 percent. That's the lowest number since the summer of 2008.
The nation's shoppers are also feeling more confident (i.e., flush) these days. The University of Michigan and Thomson Reuters' (TRI) Consumer Sentiment Index currently stands at nearly 89 (out of a benchmark 100), its best level since mid-2007.
Aiding these nice tailwinds for Best Buy is the latest must-haves on many a consumer's wish list; the two new iPhone 6 models from Apple (AAPL) were released during the quarter, in addition to a pair of new iPads.
As the most prominent bricks-and-mortar electronics retailer, Best Buy was a logical point of sale for many shoppers who didn't want to brave the crowds at their local Apple Store or buy the shiny new toys online from Apple directly, or one of Best Buy's rivals.
Is the Best Over for Now?
Those pleasant headwinds, though, could turn stormy. The holiday season is upon us, the time of year when the retail game gets cutthroat. As an operator of a big network of physical stores -- with all of the costs they carry -- Best Buy has more limited room to snip prices than its less burdened competitors.
Its already done so in the first nine months of this year, which we can see reflected in the gross profit margin for the period (the lower the prices, after all, the lower the margin) -- 22.7 percent, compared to 24.2 percent in the same period of the previous.
Best Buy wants to get that number going north again, so it'll resist excessive price-cutting. But as a result, the company is expecting no significant top-line growth on a year-to-year basis for Q4.
Yes, Best Buy is doing its best to better its results, and it's succeeding to a greater degree than many expected. But the retail game is a tough one, particularly in electronics, and it's especially challenging when you're the one big offline presence in the segment.
Motley Fool contributor Eric Volkman has no position in any stocks mentioned, yet he'd really like an iPhone 6 for his birthday. The Motley Fool recommends and owns shares of both Amazon.com and Apple. Try any of our Foolish newsletter services free for 30 days. Check outour free reporton the Apple Watchto learn where the real money is to be made for early investors.
We judge fabrics instinctively with the touch of a hand. More than sight, the meeting of skin on fabric lets us know if something is quality or not. Touch reveals the unquantifiable presence of beauty.
In the textile industry it's called "the fabric hand." At Brahms Mount in Maine, it's always the hand that's immediately drawn to touch the blankets made exquisitely soft through the weaving and washing process. And it's what made David Kaufman want to buy and grow the company in 2009.
"I put my hand on these fabrics and said, 'Boy, can I do this.' I was struck by the beauty of the product," Kaufman says.
Chapter One: The Siren's Touch
A veteran newsman who started his career at CBS during the Vietnam War, Kaufman relocated to Maine in the 1970s for a more predictable life that would give him time to raise a family. Professionally, he focused on managing television and radio stations, at one point owned a marketing firm, and eventually retired in 2005.
But the old burn to build something started up again and he spent four years looking for the right business to purchase before a broker brought him the Brahms Mount business to consider buying.
Kaufman is the first to admit he's no expert at textile design. "But I like to think I have a good eye," he says laughingly. He also has the touch. When he first felt a Brahms Mount blanket, he immediately knew he needed to be a part of the company's story. Aware of his inexperience in textile manufacturing, Kaufman thought to himself, "Don't screw it up. That's my number one mission."
Credit: Keith ChickBrahms Mount CEO David Kaufman
In 2009, Kaufman bought the business from Claudia Brahms and Noel Mount, a married couple who had launched the natural fiber textile brand in 1983. Over the years they had built a reputation for quality, but at the time of sale, were ready to move on to new challenges. When Kaufman bought the company, Brahms Mount had a staff of five working out of a mill in Hallowell on the Kennebec River. It was along this river that Maine established itself as a leader in American textile manufacturing and created a longstanding tradition of weaving heirloom-quality textiles.
What came next for Brahms Mount was fueled by a passion for the product and an innate sense of how to build a brand. "When you're a growing company, there is no blueprint," Kaufman says.
He started by expanding his team and making Brahms Mount a more regular presence at textile trade shows. That led to an influx of sales, which meant the company had to get organized to meet delivery deadlines. The staff quickly grew to more than 20.
Kaufman wooed a former colleague, SuzAnne Brown, to become Brahms Mount's chief financial officer and operations manager two years ago. The two worked together at Harron Communications where SuzAnne was CFO and Kaufman was general manager.
"I liked that I didn't have to put on high heels and a suit and silk shirt and pantyhose anymore," Brown jokes of what she left behind of her old corporate existence. Of her new role and coworkers, Brown says: "They're teaching me about weaving and I'm teaching them about organization and system."
As the company continues to grow, keeping up with production is the biggest challenge.
With Brown in place, the company was set to move into a white Federal-style home on Main Street in Freeport, home of another iconic Maine brand, L.L. Bean. The move helped solidify the company's role in the state's textile manufacturing history and it gave the brand a presence in one of the biggest tourist towns in New England.
Around the same time the company overhauled its website, making it far more consumer-friendly and focused on the brand's American-made status. "The last year has been head down and grow," Brown says.
In the five years since Kaufman took over, Brahms Mount has grown from five employees to 37 and the brand now is featured in upscale home interiors stores as well beloved on Pinterest. The company also moved from the Hallowell mill to one in Monmouth to improve production time. The move included shifting eight shuttle looms that date back to the 1940s, six of which currently operate, to the new location.
"As the company continues to grow, keeping up with production is the biggest challenge," Kaufman says.
Chapter Two: The Mechanics of Beauty
Looking at the grease-smeared gears of Brahms Mount's 70-year-old shuttle looms, it's hard to believe they produce the pristinely beautiful cotton blankets that can cost more than $600 and are adored by customers.
Credit: Keith Chick
But these temperamental old looms are the heart of the Brahms Mount business. The clanking racket of the machinery helps set the brand apart from blankets manufactured abroad. Yes, it's cheaper and faster to manufacture textiles on the digital rapier looms commonly used in China. Those looms are at minimum three times faster than these decades-old behemoths. But the end result is a dramatically different product.
The company's blankets are touched 50 times before they leave the plant. Each yarn in a blanket must be hand-tied to one of the six operating looms. That process alone can take about two hours. Once the yarns are ready to run through the looms, master weaver John Smith attends to each blanket to ensure every fiber is in the right place. With such old machinery, Smith's skill set is critical. The old looms do break on occasion.
"They're not easy to keep running because you have to have the parts made," he says. Smith, who studied jazz guitar in college before looking for more practical work, was trained by the original owners. He has carried on their techniques and attention to detail under Kaufman's leadership.
"You have to have a lot of patience," Kaufman says of the weaving process and the looms. "Parts will break. They have to be refabricated. It impacts the flow of production, but our customers have been kind to us."
Credit: Keith Chick
The occasional delivery delay is worth it for Brahms Mount customers. But if the beauty of the finished product draws people to the brand, the manufacturing process is really a tale of the Ugly Duckling.
What often comes off the looms looks nothing like the finished product. Linen blankets are flat and crispy; the beauty in the patterns isn't always visible.
It's the process on a whole -- all those hands on the product -- that work together to reveal the beauty. After blankets come off the looms, they're sent to Daylene Couture's group of washers and finishers. Fibers relax during the washing process and often reveal three-dimensional patters that weren't visible off the looms. Finishers may add fringe. The final product must come close to what design director Jane Laug conceives of on her personal loom in her studio at the Brahms Mount Freeport store.
"It's straightforward, it's not overwrought," Laug says of the Brahms Mount look. "Maine is a lot like that. It's a very straightforward beauty."
Chapter Three: The Master Class
The beauty of the blankets rests on their old-fashioned construction and skills once passed down from father to son and mother to daughter.
But like many people growing up in the 20th century, the passage of certain manufacturing skill sets slowed to a halt with Smith. "My grandfather and father used to say you don't have to work like I had to and now I'm working on machines that were from my grandfather's day," Smith says.
That's satisfying for Smith, but it's taken him by surprise.
After deciding the life of a jazz guitarist wasn't going to sustain him, Smith left college and walked into the Brahms Mount factory with little knowledge of the process. "I knew nothing. I never turned a wrench. I wasn't a mechanical kind of guy," he says.
But he took to the work quickly and studied under Brahms and Mount to perfect his weaving technique. It was Brahms who first saw the connection between his jazz guitar training and his passion for weaving and yarn manipulation. Smith attributes his skills to left-hand dexterity.
Now he must teach others those same skills if Brahms Mount is going to keep up with its accelerated growth. That's not always easy because of what Smith considers a new American culture of instant gratification. "It's harder to find people who are willing to work their way up," Smith says. "It's hard to build a crew that's willing to do all that learning."
It takes Smith and Couture between one and eight months to properly train people to weave and sew. "You don't just find warpers and weavers on the street who are a good match and have the attention to detail we need," Brown says. "We're in an area where there were generations of mills and manufacturers and the shift went to technology. We're trying to find people who are able to sew."
Credit: Keith Chick
Couture depends on her 21 years of experience to train new sewers. "I'm a teacher," she says simply. She's so adept at making blankets that she can spot a "darn," or a missing yarn in a blanket, from across a room. Kaufman boasts that Couture can see what no one else can in a woven pattern.
In a small way, Brahms Mount is rebuilding Maine's mill town model where families lived for generations and sons and daughters followed their parents into the mill. This time around, the children are doing it because they want to, not because they have to.
Couture's daughter, Brittany St. Laurent, 24, works in the shipping department. Kaufman's son, Aaron, joined the company in 2012 as a project manager and is learning the business. "He comes at things differently," says Kaufman of the value his son adds.
With his son back home after years away, Kaufman is enjoying the benefits of the mill town model as well. After a day at the factory, he's off to take care of his two-year-old grandson. "I take my moments when asked," he says smiling.
"You have an opportunity to stay in the community where your family is, where you can raise your family with grandparents," Brown says of what Brahms Mount is building in Maine. "To stay local is an advantage a lot of people don't get."
From shampoo to sliced bread, many brands have been downsizing their products, all while charging you the same price. So, how can you tell if you're really getting what you pay for? Here are a few tips on how to shop smart and avoid getting tricked.
First, check the net weight every time you buy a product and compare it against competing brands. Sometimes two items will appear nearly identical in price and size, but different in weight. The scale never lies.
Product packaging can also be pretty deceptive. Take cereal for example. Some boxes may appear to be the same at first glance, when you turn them side by side you'll see that some are smaller and don't hold as much.
This trick is done with peanut butter, too. Check the bottom of the container. If it looks more hollowed out than usual, you're likely getting less for your money.
Packages aren't the only thing shrinking -- toilet paper has undergone a lot of downsizing over the years. Some companies will advertise a high amount of sheets per roll, even though the overall size of the roll has been reduced considerably. Don't be fooled.
Lastly, be on the lookout for marketing catchphrases. Words like "New and Improved," "Healthier" and "Greener," can sometimes create the illusion of a new item, when, in fact, you're spending the same money on less product.
If all this seems like too much to follow on your own, check out the "Grocery Shrink Ray" on Consumerist.com. This section tracks and lists downsized products, so you'll know if your favorite cookies got smaller, or if you're hallucinating.
Follow these tips the next time you shop, and you'll see that even though the products may be shrinking, your bank account won't.
gracobucklerecall.com
A federal investigation was launched this week into the largest car seat recall in U.S. history, as government officials try to determine if manufacturer endangered the lives of children by delaying the recall.
The National Highway Traffic Safety Administration, part of the U.S. Department of Transportation, is questioning how one of the biggest names in children's products, Graco Children's Products, acted after learning there was a defect that affected more than 6 million car seats.
"There is no excuse for delaying a recall to address any safety-related defect," NHTSA Deputy Administrator David Friedman said. "If Graco delayed in protecting children and infants from this defect, we will hold them accountable."
"The safety of our products and the consumers that use them is paramount and underlies every decision we make," Graco said in a statement to ABC News. "Graco takes all consumer feedback related to our products seriously and we work diligently to make changes and modifications to improve the safety and usability of our products. We thoroughly analyzed all data related to the buckles and took the required actions to keep our consumers safe. We worked cooperatively with NHTSA throughout its investigation and will continue to do so moving forward."
What's Involved
The recall involves a defect that allows buckles on child and infant car seats to stick or get stuck in the latched position. That, NHTSA said, creates "an unreasonable risk to a child's life in the event of an emergency."
NHTSA noted the recall earlier this year came only after pressure from the agency, which, among other things, collects complaints from consumers about potential defects in cars, car seats and tires. Consumer complaints about the Graco seats including parents saying they had to cut the straps of the seat to free their children from the restraints.
Federal law requires manufacturers of such equipment as car seats to report a safety related defect within five days of learning of the problem.
"The Department is committed to ensuring that parents have peace of mind knowing that the car seat in which they are placing their child and their trust is safe and reliable," said U.S. Transportation Secretary Anthony Foxx. "Any delays by a manufacturer in meeting their obligations to report safety issues with the urgency they deserve, especially those that impact the well-being of our children, erodes that trust and is absolutely unacceptable."
If Graco is found to not have reported the defect in a timely manner, the company can face up to $35 million in fines.
Kristoffer Tripplaar/AlamyYork candies are one Hershey's chocolate products that uses high-fructose corn syrup.By CANDICE CHOI
NEW YORK -- Hershey is looking at replacing the high-fructose corn syrup in some of its products with sugar.
Will Papa, chief research and development officer at The Hershey Co. (HSH), told The Associated Press the company uses a mix of sugar and high-fructose corn syrup in its products but that it is "moving more toward sugar."
We take into account what consumers want. And consumers are telling us between the two, they prefer sugar.
"We take into account what consumers want. And consumers are telling us between the two, they prefer sugar," Papa said.
A switch to sugar would make Hershey a high-profile example of the move away from high-fructose corn syrup in the food industry. Many people say they avoid it because it has gained a bad reputation for fueling weight gain and diabetes, though health experts says there's not enough evidence to conclude it's any worse than regular sugar.
In an emailed statement, Hershey said its work on "exploring" the replacement of high-fructose corn syrup "is just under way" and that it did not have a timeframe on when it might be complete.
A representative for Hershey, Jeff Beckman, cited Almond Joy, Fifth Avenue, Take 5 and York as examples of products that use corn syrup. He said classic Hershey bars are made with sugar.
"Our aim is to be transparent with our consumers about the ingredients we use in our products. Once we have more information to share, we will be back in touch," Hershey said in its statement.
Other products that have changed from high-fructose corn syrup to sugar include Gatorade drinks and Yoplait yogurt.
Insufficient Evidence
As for health, the American Medical Association has said there's not enough evidence to specifically restrict the use of corn syrup. The Center for Science in the Public Interest, which advocates for food safety, has also said that there's no evidence that the sweetener is any worse nutritionally than sugar.
The Corn Refiners Association, an industry group, has been pushing back at the negative perceptions about high-fructose corn syrup, which is generally cheaper than sugar. In 2010, the association submitted an application to the Food and Drug Administration to have its sweetener renamed "corn sugar" on nutrition labels. The request was denied.
The association said it has also commissioned market-research firms Mintel and Nielsen to study perceptions of sweeteners and shared the results online. For instance, the group notes in media materials that "67% of consumers agree that moderation is more important than specific sweetener types."
John Bode, president of the Corn Refiners Association, said in an interview that the number of companies changing from corn syrup to sugar has slowed. Still, he said consumption of high-fructose corn syrup has declined more than other sugars.
Decline In Soda Consumption
Part of the reason is that people are cutting back on soda, which he said accounts for a majority of the market for high-fructose corn syrup.
In some cases, he noted that companies have switched back from sugar to high-fructose corn syrup after failing to see a notable sales spike. Hunt's Tomato Ketchup switched to sugar in 2010, but then switched back to high-fructose corn syrup in 2012. Lanie Friedman, a spokeswoman for ConAgra Foods (CAG), said demand for the version without high-fructose corn syrup wasn't "as strong as expected."
She noted the company still offers a 100% Natural line that uses sugar.
Among the members of the Corn Refiners Association are agribusiness companies Archer Daniels Midland, Cargill and Tate & Lyle.
NEW YORK -- Energy and health care companies led major stock indexes higher Tuesday, even as crude oil resumed its slide. General Motors (GM) rose after reporting stronger sales, and Biogen (BIIB), a biotech company, soared following news that its drug for Alzheimer's disease showed promise.
Reports that fewer people turned out to shop over the Thanksgiving weekend helped knock the market down on Monday. But those concerns were likely overblown, as other evidence suggests that people simply wanted to avoid the crowds at Black Friday sales, said Brad McMillan, the chief investment officer at Commonwealth Financial. IBM Digital Analytics, for instance, said that sales on Cyber Monday jumped 8 percent.
"I think what you're seeing is a little reality settling in," McMillan said. "Look at Cyber Monday numbers. You see that and say hmm, maybe it's not going to be so bad after all."
The Standard & Poor's 500 index (^GPSC) rose 13.11 points, or 0.6 percent, to 2,066.55.
The Dow Jones industrial average (^DJI) gained 102.75 points, or 0.6 percent, to 17,879.55, while the Nasdaq composite (^IXIC) rose 28.46 points, or 0.6 percent, to 4,755.81. Oil and gas companies led nine of the 10 industries in the S&P 500 higher.
The one economic report out Tuesday gave investors some encouragement. Newly built houses and schools lifted U.S. construction spending in October to the highest level since May, the Commerce Department said. Overall construction spending climbed 1.1 percent, higher than economists' forecasts.
General Motors posted solid sales gains in the U.S. last month, helped by discounts and falling gas prices. GM's sales climbed 6 percent to nearly 226,000 in November. The carmaker's stock gained 32 cents, or 1 percent, to $33.26.
Among other companies making big moves, Avanir Pharmaceuticals (AVNR) soared on news that Otsuka Pharmaceuticals of Japan plans to buy the company for $3.5 billion. Under the terms of the deal, Otsuka would pay Avanir investors $17 a share in cash. Avanir's stock jumped $1.92, or 13 percent, to $16.92.
Crude oil prices resumed their long slide, falling $2.12 to settle at $66.88 a barrel in New York trading. The slump has rippled throughout financial markets in recent weeks, putting stress on oil-exporting countries such as Russia. On Tuesday, Russia's government forecast that the country's economy will shrink next year. That helped send Russia's currency down 5 percent against the dollar and drive its RTS stock index down 3 percent.
The economic conditions Russia is facing right now are aggressively against its economy.
"The economic conditions Russia is facing right now are aggressively against its economy," said Jameel Ahmad, Chief Market Analyst for FXTM.
Elsewhere in Europe, Germany's DAX slipped 0.3 percent, while France's CAC 40 inched up 0.3 percent. In the U.K., the FTSE 100 index of leading British shares gained 1.3 percent.
In Asia, Japan's Nikkei rose 0.4 percent. In China, the Shanghai Composite Index climbed 3 percent, and Hong Kong's Hang Seng added 1.2 percent.
Traders will have a batch of economic news to digest over the rest of the week. On Thursday, the European Central Bank meets to discuss whether the region's flagging economy needs more support. On Friday, the U.S. Labor Department releases its look at employment in November, a report that often sends markets swinging.
In other trading Tuesday, government bond prices fell, pushing the yield on the 10-year Treasury note up to 2.29 percent.
Prices for precious metals sank. Gold dropped $18.70 to settle at $1,199.40 an ounce, while silver slid 24 cents to $16.46 an ounce. Copper slipped a penny to $2.89 a pound.
In other trading on the New York Mercantile Exchange:
Wholesale gasoline fell 7 cents to close at $1.812 a gallon.
Heating oil fell 6 cents to close at $2.154 a gallon.
Natural gas fell 13 cents to close at $3.874 per 1,000 cubic feet.
What to Watch Wednesday:
ADP (ADP) releases its survey of private-sector hiring for November at 8:15 a.m. Eastern time.
The Labor Department reports business productivity and costs for the third quarter at 8:30 a.m.
The Institute for Supply Management releases its non-manufacturing survey for November at 10 a.m.
The Energy Information Administration reports weekly petroleum stockpiles at 10:30 a.m.
The Federal Reserve releases its Beige Book survey or regional economic conditions at 2 p.m.
These selected companies are scheduled to report quarterly financial results:
Jae C. Hong/AP
Bibliophiles know that every book doesn't have a happy ending, and for a while it seemed as if Barnes & Noble (BKS) shareholders would face the same "feel-bad" fate as readers of "Romeo & Juliet," "The Book Thief," "Of Mice and Men," "The Fault in Our Stars" and "The Great Gatsby." As the last major book superstore chain standing, the migration away from physical books and retailers seemed to leave Barnes & Noble destined to repeat the Borders debacle.
Things certainly haven't been easy for Barnes & Noble. It has posted four consecutive years of losses, and its push to cash in on the digital revolution has sputtered in the wake of Nook's waning popularity. Sales also appear to have peaked two years ago.
It's not pretty, but it's not fatal. There may still be time to write a happy ending for Barnes & Noble, but it needs to get moving.
It's a Holiday Miracle
Barnes & Noble set itself up to be a Black Friday winner by stocking its stores with 500,000 author-signed editions of more than 100 books. Armed with books signed by noted writers and celebrity authors including Neil Gaiman, George W. Bush and Hillary Rodham Clinton, the chain found a way to woo shoppers away from the more traditional Black Friday haunts that include department stores and apparel retailers.
Barnes & Noble also jumped on the discounted tablet bandwagon that dominated the weekend's doorbuster deals, offering the 7-inch Samsung Galaxy Tab 4 Nook for just $129.99, well below its original retail price of $199.99. Since the bookseller also offers $200 worth of book, magazine and video content, a price below $130 is pretty compelling.
Naysayers may call these desperate moves, but there's nothing like offering celebrity-autographed books to remind readers that there are certain things that digital books don't offer.
Thursday Don't Be Late
Barnes & Noble's fiscal second quarter will be interesting. The report is slated for Dec. 4. Analysts see profitability more than doubling to 31 cents a share on a 2 percent dip in sales. The bottom-line burst may seem aggressive, but keep in mind that Barnes & Noble has landed ahead of Wall Street profit estimates in three of the past four quarters. A strong showing would provide favorable momentum heading into the telltale holiday quarter, paving the way for Barnes & Noble's first fiscal year of profitability since 2010.
Barnes & Noble is realistic. It knows that its Nook is no match for Amazon's (AMZN) Kindle, so it has taken steps to distance itself from the platform. Samsung's (SSNLF) putting out Nook-specific tablets is a taste of things to come.
The superstore chain is also expanding its offerings. It's no longer just about books. Anyone who has hit up a store lately has likely noticed an expanded toys and games section. Its playthings experienced a 12 percent spike in comparable-store sales during last year's holiday quarter, and it should be another source of store-level growth this time around. Barnes & Noble is also stocking more traditional gifts including popcorn makers, vinyl turntables, and beer-brewing kits.
This won't be the end. Barnes & Noble was supposed to update its website earlier this summer, but delays find the bn.com makeover being pushed out to next month after the holiday rush subsides.
At a time when many of the year's most successful movies are leaning on books as source material it's only fitting for Barnes & Noble to be transforming itself into a multimedia retailer. It can't stand still, knowing what that did for Borders and smaller rivals that have gone quietly into the good night. It won't stand still.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com and Barnes & Noble. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.
The end of the year signals more than just a time for champagne, parties and New Year's resolutions. It's also your last opportunity to make some crucial money moves that can set you up to have a brighter financial future in the years to come. Here are 11 things you should be sure to do before this year is over.
Paula Pant ditched her 9-to-5 job in 2008. She's traveled to 30 countries, owns seven rental units and runs a business from her laptop. Her blog, Afford Anything, is a gathering spot for rebels who want to ditch the cubicle, shatter limits and live life on your own terms -- while also building wealth, security and freedom.
For a lot of people, the end of the year is a time of celebration. Not just because of the holidays and family - but also for the big end-of-the-year bonus that gets paid out for all the work you've done over the last 12 months.
More than half of all employers give out a year-end bonus that might be monetary in nature or come in the form of other benefits like gifts cards or employee gift registries. Monetary bonuses can differ in appearance too from direct paycheck compensation to 401(k) contributions.
Some people refer to this type of bonus as a Christmas bonus. While bonuses have experienced a downward trend over the last few years due to the recession, the average bonus was about 1.3 months of salary in 2013, according to JobsDB.com.
Wall Street Takes the Cake for Year-End Bonuses
It's no secret that the biggest year-end bonuses go to those who work on Wall Street. These bonuses can run from a few thousand for a secretary to millions for higher-level management. In 2013, the average Wall Street bonus rose 15 percent to $164,530, according to The New York Times.
That's still tame compared to the biggest bonuses paid out to Wall Street executives. The top three bonuses of 2013 - paid to Michael Farrell, Ian Cumming and Leslie Moonves - alone added up to around $84 million, according to Forbes. Farrell's bonus was earned on only a partial year of work.
$29 million -- Michael Farrell, former CEO of Annaly Capital Management
$27.5 million -- Ian Cumming, CEO of Leucadia National Corp.
While we can safely assume these people have a huge tax bill at the end of the year, you might be surprised to know that - whether you received one hundred thousand dollars or just a few hundred bucks - the tax rate on bonuses remains the same for most.
How Your Bonus Gets Taxed
The first thing you'll probably notice when receiving a bonus check is how much gets taken out in taxes. It's not complicated, and it is taxed under a different set of rules than your standard income is.
Bonuses, commissions and prizes are all considered supplemental wages and are subject to a supplemental wage tax. If you have more than one million in supplemental wages for the year, your employer must withhold tax at the highest federal rate of 39.6 percent. If it's less than that amount, then it depends on how the wages are paid. If your bonus is not designated as a supplemental wage, taxes are withheld based on your W-4 form. However, if this income is noted separately, your employer must withhold 25 percent or combine your regular and supplemental earnings in one pay period and apply the regularly withholding rates.
Note how this tax could differ from a graduated income tax, which is adjusted based on income bracket.
Putting That Bonus to Work
The most exciting part of getting a bonus is deciding how to spend it. Many financial planners like to use the 50-30-20 rule: 50 percent of your budget toward necessities (food, water, shelter, transportation etc.) and paying down debt, 30 for discretionary use, and 20 percent toward savings.
Instant paydays are easy to celebrate and can provide an excuse for lavish spending, at least once a year; however, a more appropriate use of that bonus is to get yourself more organized financially.
If you have debt, that bonus can wipe it out or at least reduce it substantially. You'll save money on interest payments over the long term and improve your credit score, as well, which will lead to even more savings moving forward.
A good financial plan includes at least three to six months worth of emergency savings built up. If you haven't done that, you might consider funding an emergency account. You never know when the unexpected will happen and knowing that you're prepared take a lot of worry and stress out of unforeseen circumstances.
The holiday season is also a period of budget busting, as the average shopper will spend $804.42 this year celebrating Christmas, Hanukkah or Kwanzaa, according to the National Retail Federation. Much of this spending will end up on credit cards, which could take shoppers several months to pay off, potentially at the detriment of their credit scores.
Of course, working all year long and having nothing to show for it isn't a great reward system. If your finances are squared away, go ahead and splurge a little, as this could also be a good opportunity to indulge and fight off frugal fatigue. Take the family on vacation or buy something you know you'll enjoy. If you've made sure to put some of that bonus toward debt and savings to make financial progress, if needed, then you can spend the rest guilt free.
If you owe more in bills than you have, it can be hard to know what to pay first. In fact, there is no right answer. The sad truth is that the worse your financial situation becomes, the more the standard rules of bill paying don't apply.
Pay yourself first? It's logical, often-dispensed advice to put money into savings and retirement before paying your other bills. But it isn't practical when your electric company is threatening to turn off your lights, your credit card payment is due in three days and your mortgage payment is two weeks late. You may have to dump all the advice you've heard over the years and simply go with your gut.
Tom Hoebbel, a photographer in Brooktondale, New York, opts for this strategy. "My wife and I are both self-employed and artists, a double-whammy," says Hoebbel, who has his own studio, Thomas Hoebbel Photography. "We survived the economic downturn, but the recovery, which has lifted large businesses and Wall Street, has left many of the self-employed behind."
The monthly bills in the Hoebbel household get paid eventually, but it hasn't been easy. "We do make sure there is enough food in the house, but energy shut-off notices and foreclosure threats are a regular experience," Hoebbel says.
So if you could use some help prioritizing bills, here are some strategies you may want to employ. Obviously, when you owe a lot more than you have coming in, there is no one-size-fits-all solution.
Pay Essentials First
Most personal finance experts will advise you to pay for your basic needs first. "Food, shelter, utilities," says Joseph Cunningham, assistant professor of accounting at Albright College in Reading, Pennsylvania. After that, make your car payment. Then make those insurance payments and make your credit card or student loan payment.
"The expenses I would choose to put off would be those items that are not collected quickly," Cunningham says, noting that the telephone, electric and water bills can often be paid after a due date. "These are heavily regulated. Those companies need to give you advanced notice of termination for nonpayment."
But do this long enough, and your cellphone may be turned off, and that may suddenly feel more important than your mortgage. In this case, you may have to jettison the essentials approach for something else, like this next strategy.
Pay First What Will Be Shut Off First
If you're paying off whatever you're about to lose, even if this strategy has become commonplace, you're in "emergency mode," says Jerry Love, a certified public accountant with his own firm in Abilene, Texas, who works with both the very wealthy and middle class.
He says he has had clients who have been in dire financial straits. When you're in emergency mode, he says, you should make a detailed list of what bills you need to pay, along with the consequences of not paying on time.
"Write down what bad thing will happen if you don't pay it," Love says. "We will lose the mortgage or be kicked out of the apartment, the electric will be shut off - and you number those items one through 42 or whatever." And then you pay accordingly.
Honesty Is the Best Policy
For the bills you simply won't be able to pay for a while - a long while - Love suggests calling your creditor. "Just call and admit it," he advises. "Say, 'Hey, I've got a problem, and I want to let you know that I'm not ignoring you. I just don't have any money.'"
Love adds that this may not work so well if you're calling a large creditor like a national bank that issued your credit card, but smaller businesses will probably work with you or hound you a little less.
Imagine yourself at your retirement party. You're happy. You've saved enough -- you think. But what if someone said you could've saved at least $1 million more in your 401(k) alone, had you managed to make larger contributions in your 20s and 30s?
Granted, that isn't easy -- or even possible when you're starting a career. The paychecks are thinner and plenty of financial goals take priority to retirement in your 20s and 30s: student loans, wedding, mortgage, diapers.
But let's look at the numbers regardless. And you'll see why it might just be worth it to try to contribute as much as you possibly can to that 401(k) plan of yours, as early on as you can.
The chart above shows two scenarios. The first, illustrated in a blue line, is the current median annual 401(k) contribution path of investors in a data set analyzed by SigFig. (SigFig, an investment advisory firm in San Francisco, tracks nearly $300 billion invested by more than 750,000 individual investors.)
For investors in their 20s, this data shows, the median 401(k) contribution is $9,000 per year. It jumps to $15,000 per year for investors in their 30s, $19,000 per year for those in their 40s, and tops out at $20,000 for investors in their 50s. (Those contributions include the company match, which it goes without saying should be maximized -- or you're leaving free money on the table.) Based on this path and assuming an 8 percent average annualized return, investors who started saving at age 25 would have $4 million when they turn 65. Not bad!
The second line (in green) shows the same numbers, but flipped around. What if people started socking away every last penny in their 401(k)s when they were young and scaled those contributions down as they approach retirement? Sure, to put $19,000 in your 401(k) when you're 25 -- or $20,000 when you're in your 30s -- seems outlandish. Who makes that sort of money? But let's assume that you do. The difference? You will retire with $5.3 million.
Boomer Reality
Because retirement looms closest for boomers, the good news for 50-plus workers is they're able to stash more into their 401(k)s with so-called catch-up contributions. While in 2014 the maximum contribution limit is $17,500, those who are 50 or older can save an additional $5,500, for a total of $23,000. Those limits go up to $18,000 and $24,000, respectively, in 2015.
But while most employers point out the opportunity to their older employees, the take-up rate isn't that high. Last year, Fidelity Investments took a look at the 401(k) plans it administers and found that the percentage of employees 50-plus who were making catch-up contributions was a lowly 12.9 percent.
In SigFig's data, investors in their 60s are doing a little better than that: 37 percent have contributed $20,000 or more to their 401(k)s so far this year, including employer matching contributions. But 20 percent of those investors have contributed less than $5,000. That's not good -- unless they are already sitting on solid retirement savings accounts piled up in their earlier years (see our "outlandish" scenario above).
Are Younger Generations Doing Better?
Maybe. A small subset -- 7 percent of investors in their 20s -- have contributed $20,000 or more (including the company match) so far this year, which is impressive. Sure, they may seem like overachievers now, but if they keep it up -- let's assume they started stashing away $20,000 a year at 25 -- by the time they're 65, they could be retiring with a cool $5.6 million.
Then again, such diligent (and likely high-income) savers are the minority. So far this year, 36 percent of 20-somethings in the SigFig analysis have put in less than $5,000.
The Magic of Compounding
It all boils down to one elementary mathematical principle: compound growth. Interest that accrues to an amount will accrue interest itself. That's the deceivingly simple force that causes wealth to rapidly accumulate.
All of the investment returns earned in your 20s and 30s are snowballing - to the point that someone who saved far less than you early on may not be able to catch up, even with larger catch-up contributions as they get older.
Say you got your first full-time job at age 25 and started maxing out your 401(k), at this year's maximum of $17,500, every year. If you decided to retire at age 65, you'd have a whopping $4.9 million. However, if you only saved $7,000 a year from age 25 to 65, you'd only have $1.9 million in retirement.
Catch-up 401(k) contributions are a great way to put away money in the late stages of your career, but the longer you wait to start saving for retirement, or save minimal amounts, the more you'll miss out on the benefits of compound interest. Don't let those catch-up contributions try to do the hard lifting for your nest egg too little, too late.
Vanessa Richardson is a contributing writer at SigFig. Nearly a million people use SigFig to track, improve and manage over $300 billion in investments.
WASHINGTON -- U.S. private employers added jobs at a fairly brisk clip in November, suggesting a slowing global economy is having a limited impact on domestic activity.
The steady pace of hiring, however, has yet to translate into stronger wage growth. Other data Wednesday showed sharp downward revisions to compensation in the second and third quarters, suggesting the Federal Reserve had room to maintain its low interest rate policy for a while.
The ADP National Employment Report showed private payrolls increased by 208,000 last month. While that was slightly below Wall Street's expectations for an increase of 221,000 jobs, October's payrolls were revised to show 3,000 more positions added than previously reported.
The labor market continues to make steady progress.
Private employers have now added jobs for 57 straight months at an average rate of about 186,000 per month.
"The labor market continues to make steady progress," Ahu Yildirmaz, vice president and head of the ADP Research Institute, said on a conference call following the release of the data.
In separate report, the Labor Department said unit labor costs, the price of labor for any given unit of production, fell at a 1 percent rate in the third quarter. They had previously been reported to have increased at a 0.3 percent pace.
Unit labor costs for the second quarter were also revised down to show them declining at a steeper 3.7 percent rate instead of the previously reported 0.5 percent pace.
That should ease fears that wage growth is rising a little bit faster than the Fed's expectations and cause the U.S. central bank to wait longer to raise interest rates.
U.S. Treasury debt prices rose on the data. U.S. stock index futures were little changed, while the dollar was up against a basket of currencies.
Wage growth is one of the key factors that will determine when the Fed will start raising its short-term interest rate, which it has kept near zero since December 2008.
Compensation per hour increased at a 1.3 percent rate in the third quarter rather the 2.3 percent pace reported last month.
Compared to the third quarter of last year, hourly compensation rose 2.2 percent instead of the 3.3 percent advance reported last month.
Nonfarm productivity, which measures hourly output per worker, expanded at a 2.3 percent annual rate instead of the previously reported 2 percent pace.
Shizuo Kambayashi/APChild seats, manufactured by Takata, displayed at a Toyota showroom in Tokyo.By TOM KRISHER and MARCY GORDON
DETROIT -- Takata Corp. defied a U.S. safety agency's demand for a nationwide recall of driver's side air bags, setting the stage for possible legal action by the government and leaving some drivers to wonder about the safety of their cars.
In a Tuesday letter to the National Highway Traffic Safety Administration obtained by The Associated Press, Takata said its own data and testing support limiting the recall to high-humidity areas, such as along the Gulf Coast. A Takata official repeated those claims Wednesday morning at a hearing before a House subcommittee.
The air bag's inflators can explode with too much force, spewing shrapnel into the passenger compartment. At least five deaths and dozens of injuries have been linked to the problem worldwide.
Under pressure from lawmakers, the U.S. safety agency on Nov. 26 demanded that Takata and a number of automakers broaden a recall of driver's side air bags to all 50 states. At Wednesday's hearing before a House Energy and Commerce subcommittee, an executive from Honda (HMC) said the automaker would expand its recall nationwide. Honda is one of Takata's biggest customers.
So far automakers have recalled about 14 million vehicles worldwide for Takata air bag problems, including 8 million in the U.S. A nationwide recall would add 8 million vehicles to existing recalls, Takata said.
Up until now, cars were only being recalled in high-humidity areas in Florida, Hawaii, along the Gulf Coast and in some U.S. territories. Takata has maintained that prolonged exposure to airborne moisture can cause the inflator propellant to burn faster than designed, causing it to explode with too much force.
A number of committee members expressed concern that the limited nature of the recall was confusing to consumers outside of the current recall zones.
Rep. Jan Schakowsky of Illinois, the panel's senior Democrat, said she's received letters from constituents "who are literally afraid to drive their cars."
But Hiroshi Shimizu, senior vice president of global quality assurance at Takata, maintained the company's defiant stance, telling lawmakers at the hearing that the available data and scientific evidence on the air bags "doesn't support" a nationwide recall.
Takata also contends that NHTSA only has authority to seek recalls from auto manufacturers and makers of replacement parts, not original parts suppliers. NHTSA disagrees.
Late Tuesday, NHTSA called Takata's decision "disappointing" and said it will review the response to determine the agency's next steps. A week ago, the agency threatened civil fines and legal action if Takata didn't declare the driver's air bag inflators defective and agree to the recall. It can impose fines of up to $35 million.
David Friedman, deputy NHTSA administrator, is also scheduled to appear at Wednesday's hearing.
National Recall Sought
In calling for a national recall, NHTSA pointed to inflator ruptures that injured drivers in California and North Carolina -- both outside the recall zones.
Takata said in its letter that it has tested 1,057 driver and passenger inflators taken from locations outside the high-humidity zone, and none of them has ruptured. The company said it will expand production of replacement inflators for the current recalls and will expand the recalls if warranted.
The dispute between the government and Takata left automakers caught in the middle. Besides Honda, NHTSA has told other affected automakers -- Ford (F), Chrysler (FCAU), Mazda and BMW -- that they need to recall the driver's side inflators soon.
BMW has said its recalls are national already, while Ford and Chrysler wouldn't comment.
Wednesday's hearing is the second in Congress regarding the Takata air bag matter. Earlier this year, Congress held a number of highly publicized hearings into General Motors' (GM) handling of a recall of cars with defective ignition switches that are now linked to deaths. Investigations into that issue are ongoing.
"I'm sorry to say that it has been a bad year for auto safety," said Fred Upton, R-Michigan, at the opening of the hearing.
-Krisher reported from Detroit. Yuri Kageyama in Tokyo and Dee-Ann Durbin in Detroit contributed to this report.
Rich Polk/Disney/Getty Images
There will be plenty of companies vying to be big winners this critical shopping season, but it's hard to find one that's as well positioned as Disney (DIS).
The family entertainment giant turned heads last week when the National Retail Federation's annual survey showed that Disney's "Frozen" franchise has unseated Mattel's (MAT) Barbie as the toy purchase of choice for girls this holiday season. While 17 percent of parents of young girls plan to buy a Barbie product, 20 percent will be snapping up Frozen merchandise. This is the first time in 11 years that Barbie isn't on top of the annual survey.
Disney has been milking the multimedia success of "Frozen" since last November's multiplex debut: It has parlayed the animated feature with its catchy soundtrack into theme park attractions, traveling shows and even a stint on ABC's "Once Upon a Time" prime-time television series. However, the real gold mine will come this year in the form of a fresh slate of playthings featuring the movie's princess sisters, Anna and Elsa.
Barbie rang up $1.2 billion in sales for Mattel last year. One can only imagine what "Frozen" will do this time around.
Getting the Last Laugh This Season
It's not just "Frozen" that's heating up for Disney.
"Big Hero 6" was last month's second-biggest winner at the box office. Ringing up $167.2 million in domestic ticket sales placed it just behind the third installment of the "Hunger Games" in November. More than 20 million people saw the movie in the U.S. last month, and the seasonal timing of the release should translate into superhero-size sales of its related toys.
That's not all. Marvel's "Guardians of the Galaxy" is this year's biggest theatrical winner, taking in $331.9 million at the domestic box office. Disney spent roughly $4 billion to acquire Marvel five years ago, and the comic book giant is the gift that keeps on giving.
Guardians of the Galaxy isn't as prolific as X-Men, Spider-Man or The Avengers, but it's just another Marvel property that's turned into cinematic gold. The movie will hit the DVD, Blu-ray and digital delivery market on Dec. 9, making it a logical holiday gift for teens and older audiences.
It's a Small World but a Big Opportunity
Disney doesn't mess around. It rang up nearly $4 billion in consumer products revenue in its fiscal year ending in September, 12 percent ahead of the prior year. A lot of that comes in the form of licensing revenue, so the actual sum of Disney-branded consumer products is actually a lot greater than that.
As big as Disney may seem now, it's only about to get bigger. Disney has also spent billions to acquire Lucasfilm, and its first big payday will come next December when "Star Wars VII: The Force Awakens" hits theaters as a no-brainer blockbuster of 2015. You can be sure that a new wave of related toys will accompany its holiday release.
There's also the possibility that Disney's classic princesses will get a boost come April when "Cinderella" becomes the latest of Disney's timeless features to be updated in a live-action theatrical film.
There's going to be a lot of Disney in Santa's gift bag, and that bag is only going to get heavier next year.
Motley Fool contributor Rick Munarriz owns shares of Walt Disney. The Motley Fool recommends Mattel and Walt Disney and owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. Want to make 2015your best investing year ever? Check out The Motley Fool'sone great stock to buy for 2015 and beyond.
I'm not a big drinker. I like a lemon martini once in a while, but it takes me years to drink through a bottle of vodka. So instead of thinking of excuses to celebrate, I add the leftover liquor to a spray bottle and use it to help with a variety of household chores.
Of course, I don't wash windows with Ciroc; I use the cheap stuff that costs $9 for 750 milliliters. Then, for big jobs like windows, I make a 1:1 solution with water that yields about 50 ounces of cleaning solution that costs roughly 18 cents an ounce.
Granted, other cleaners are cheaper; Windex, for instance, cleans windows for about 12 cents an ounce. But Windex won't get the cat stink out of my carpet; for that, I'd have to buy another product, like Febreze, which costs about 24 cents an ounce. I could spend $30 on all the different products that do the same household jobs as one bottle of vodka.
Here are the jobs that straight or diluted vodka will do, and the products the liquor can replace. (Prices come from Walmart.com.)
Shine windows. Dilute vodka with water 1:1, and spray on dirty windows. Remove with a microfiber cloth, which will leave windows streak- and lint-free. Replaces Windex, $3.12 for 26 fluid ounces.
Make jewelry sparkle. Dunk your precious gems into a shallow dish of straight vodka, or spray it on your jewelry. Lightly scrub with a toothbrush, and rinse. Your diamonds will sparkle. Replaces Shine Brite Silver Dip Liquid Jewelry Cleaner, $5.99 for 8 fluid ounces.
Deodorize fabric: Spray diluted vodka on fabric-covered furniture and carpets. Bad smells will vanish. Replaces Febreze Fabric Freshener, $4.94 for 27 fluid ounces.
De-gunk hair. Add an ounce of vodka to 12 ounces of shampoo to make a clarifying shampoo that will make your hair shine. Replaces Pantene Pro-V Truly Natural Hair Clarifying Shampoo, $3.97 for 12.6 fluid ounces.
Fight mold. To banish the smelly, ugly fungus, spray vodka on mold, let dry then scrub off. Replaces Tilex Mold and Mildew Remover, $3.97 for 32 fluid ounces.
Remove water spots. Wet a microfiber cloth with a spritz of vodka and wipe off water stains on glassware. Replaces Scrub Off Spot Remover, $5.88 for 16 fluid ounces.
Banish foot odor. To remove stinky foot odors, spray straight vodka into shoes and boots, and onto feet. Replaces Kiki Shoe Freshener, $5.85 for 2.2 ounces.
From shampoo to sliced bread, many brands have been downsizing their products, all while charging you the same price. So, how can you tell if you're really getting what you pay for? Here are a few tips on how to shop smart and avoid getting tricked.
