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5 Ways to Celebrate the Holidays That You'll Never Forget

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Jewel Performs An Intimate Show for The Starwood Preferred Guest Hear The Music, See The World Concert Series at US Grant, a Lux
Robert Benson via Getty ImagesThe US Grant Hotel in San Diego.
By Mia Taylor

NEW YORK -- Anyone can put up a Christmas tree and a sprig of mistletoe to celebrate the holidays, or pop a bottle of champagne to toast New Year's.

If those traditions have become too ho-hum and you have the urge to indulge in a more exotic, unusual or luxurious holiday celebration, there are several companies catering to these types of desires. If money is no object, there's no limit to the over-the-top or simply out-of-the-ordinary ways to say goodbye to 2014.

What, you've never had New Year's Day breakfast atop the Arc de Triomphe? Or had Santa deliver your presents to a private, deserted beach in St. Barths? Maybe this is the year to start a new holiday tradition.

"We have a lot of entrepreneurs as clients who do these type of trips, especially during the past two years. They will do these trips at the end of the year to celebrate things they have accomplished," says Jaclyn Sienna India, of Sienna Charles, an exclusive luxury travel company that specializes in unique itineraries.

If you want to mark your year's worth of accomplishments in style and grandeur this holiday season, read on for five ways to have a not-so ho-hum holiday. But here's fair warning: These options are not for the budget conscious.

1. 12 Days of Christmas Package at the US Grant Hotel, San Diego

Inspired by the 12 Days of Christmas song, the US Grant has developed its 12 Days of Christmas Package as a one-of-a-kind journey through San Diego to bring each verse of the well-known tune to life.

Here's how it works: Reserve 12 consecutive nights in the US Grant's Presidential Suite this December and you get 12 days of VIP Christmas experiences.

Remember verse number two, the one about two turtledoves? At The US Grant this involves a behind-the-scenes cooking demonstration with the hotel's executive chef teaching you how to make chocolate turtles.

We've definitely seen a growing trend of people wanting unique experience gifts, and that's essentially what this is.

Next up, three French hens. The US Grant's interpretation involves having you create your own perfume and cologne in a class hosted at one of La Jolla's boutique perfumeries.

To bring the song's fifth verse to life, the one involving five golden rings, the hotel has enlisted the expertise of an artisan who will host a private, hands-on workshop in which you will create two gold rings customized to your style and taste.

"We wanted to create something for the couple who has it all already and doesn't know what to get each other," US Grant Marketing Manager Vanessa Randazzo says."We've definitely seen a growing trend of people wanting unique experience gifts, and that's essentially what this is. It's for the couple that wants to be the ones to receive this exclusive collection of gifts and experiences."

That's right: the couple. Only one package will be sold.

The cost for this 12-day Christmas extravaganza is $3,500 per night, or $42,000, and must be booked for the full 12 nights.

2. Snorkeling in St. Barths

Do your holiday dreams include sunshine and sand? Dream bigger.

Anyone can have fantasies about a warm beach -- and could go somewhere as tame and domestic as Florida to experience it. But Sienna Charles takes this particular holiday vision to new heights.

The sun-drenched dream from Sienna Charles involves traveling by private jet to St. Barths, staying at the island's top villa and chartering a fully staffed yacht for some Christmas Day snorkeling and diving off uninhabited islands.

The snorkeling excursion would be topped off with a catered lunch on a deserted beach, where perhaps Santa might even be convinced to drop off some gifts.

The price tag? Brace yourself. It will set you back about $560,000.

3. Paris Exclusive

If beaches aren't your thing, there's also holiday fabulousness to be had in Paris, the world's fashion capital.

Once again, Sienna Charles takes the festivities to new levels -- literally, by recommending an exclusive breakfast atop the Arc de Triomphe on New Year's Day.

"You're literally at the center and top of Paris," Sienna India says. "We bring people up there who have tuxedos on. We can bring champagne, smoked salmon, hot chocolate, and make it really fun."

The rest of your trip would be filled with private access to The Louvre, private visits to various fashion houses (Hermes and Louis Vuitton, if you pass a background check) and Michelin-rated meals. And there is always the option of renting out Versailles for a dinner that won't soon be forgotten.

Accommodations would be equally as fabulous: the deluxe Eiffel Tower Suite at Plaza Athanee.

The price tag for this holiday dream is around $3.5 million plus $50,000 to visit The Louvre.

4. The Sicilian villa Christmas

You can also enjoy an authentic Sicilian Christmas with all the trimmings in a sprawling villa owned by Italian aristocrats.

If you have about $21,174 to spend, the villa Don Arcangelo all' Olmo could be your home for Christmas week. Feel free to bring friends and family, because the house and its 12 bedrooms and bathrooms comes to life when filled with people.

Located in Giarre, near Catania, the stunning home overlooks the Ionian Sea and has Mount Etna for a backdrop.

In addition to jaw-dropping scenery, a Christmas week stay includes the services of an in-villa cook who will create a Sicilian Christmas dinner.

"Sicilian cooking is generally a mixture of Arabic, French, Italian and Spanish, " says Huw Beaugie, founding director of The Thinking Traveler, which manages the villa. "There are spices, raisins, pine nuts, the pistachio, a lot of fish, great meats, pasta and lot of fresh produce."

In addition to the cook, there will be five to six other staff on hand to cater to guests' needs and ensure an aristocratic vibe.

The final details of this Sicilian experience could include having locally crafted presents under the Christmas tree and even entertainment provided by local musicians.

"What's nice about this experience, apart from all the things that you take for granted for Christmas -- good food, good wine and being surrounded by people you like -- there is something very, very authentic about being in this particular place," Beaugie says. "It's not a product you buy off the shelf, like a Marriott or Four Seasons. This is something very authentic."

5. Celebrate New Year's Eve -- Twice

Finally, for those with endless stamina and dedication to having a truly unique New Year's Eve, there's one experience you could be telling friends and family about for years to come. PrivateFly is offering the chance to celebrate New Year's Eve twice this year by jetting you just below the speed of sound -- on the world's fastest private jet -- from one time zone to another Dec. 31.

Celebrate first in one of the world's largest cities -- Sydney, Australia. Then do it all over again in Hawaii.

This is possible thanks to a 3 a.m flight between the two locations on a Gulfstream G650.

In a mere seven hours you're shuttled from Australia to Hawaii, leaving plenty of time to hit the Honolulu beaches for a few hours of recovery and watching the waves hit the shore, before celebrating New Year's Eve all over again.

"There is 21 hours' time difference between the Honolulu and Sydney, but it's a relatively short flight, so this itinerary allows you to have the maximum time in Hawaii to repeat the whole experience," says PrivateFly CEO Adam Twiddell. "It's kind of like Groundhog Day."

Between the 21-hour time difference between the two locations and flying eastward, you gain 14 hours of New Year's Eve party time.

The cost for this dizzying, yet memorable, party experience is $210,000.

 

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What Was On Your Mind in 2014? Facebook Knows

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Abbas Dulleh/APWorkers in Liberia remove the body of a man they suspect died from the Ebola virus.
By Barbara Ortutay

Day after day, Facebook captures our best and worst moments, from the birth of a new baby to heated political spats. What's popular? Facebook has a good gauge based on what people type into the box that says, "What's on your mind?"

On Tuesday, the company released top 10 lists for 2014, based on the number of posts, comments, likes, photos and videos shared. The list Facebook is a testament to its global reach, given that more than 80 percent of Facebook users live outside the U.S. and Canada.

Worldwide topics -- the World Cup soccer tournament and the Ebola outbreak -- occupied the top two spots. But No. 3 was the presidential election in Brazil. Facebook says some 48 million people had 674 million interactions -- status updates, photos, videos, comments and likes -- about the highly contested event. That made it the most talked-about election of 2014 -- even more than the congressional midterms in the U.S.

"At its best, social media makes the world a smaller place and builds community on a global level," Sheryl Sandberg, Facebook's chief operating officer, said in an interview.

Around the World In the U.S.
1. World Cup 1. Ebola virus outbreak
2. Ebola virus outbreak 2. Ice Bucket Challenge
3. Elections in Brazil 3. Robin Williams
4. Robin Williams 4. Super Bowl
5. Ice Bucket Challenge 5. Michael Brown and Ferguson
6. Conflict in Gaza 6. World Cup
7. Malaysia Airlines 7. Conflict in Gaza
8. Super Bowl 8. Midterm elections
9. Michael Brown and Ferguson 9. Malaysia Airlines
10. Sochi Winter Olympics 10. ISIS

 

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Security Checks Aren't Part of Workday, Court Rules 9-0

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Two freshly delivered Amazon boxes are seen on a counter in Golden, Colorado August 27, 2014.   REUTERS/Rick Wilking
Rick Wilking/Reuters
By Lawrence Hurley

WASHINGTON -- The U.S. Supreme Court on Tuesday ruled that companies do not have to pay workers for the time they spend undergoing security checks at the end of their shifts in a case involving an Amazon.com (AMZN) warehousing contractor.

On a 9-0 vote, the court said employees of Integrity Staffing Solutions facilities in Nevada, where merchandise is processed and shipped, cannot claim compensation for the up to half an hour a day they spend going through security screening aimed at protecting against theft.

Justice Clarence Thomas wrote on behalf of the court that the screening process is not a "principal activity" of the workers' jobs under the Fair Labor Standards Act and therefore is not subject to compensation.

Principal, Intrinsic or Integral?

For workers to be paid, the activity in question must be "an intrinsic element" of the job and "one with which the employee cannot dispense if he is to perform his principal activities," Thomas wrote.

In April, the 9th U.S. Circuit Court of Appeals found the screenings were an integral part of the warehousing job done for the benefit of the employer and should be compensated.

Amazon, the world's largest online retailer, is not directly involved in the case. But a business group called the Retail Litigation Center, in a brief supporting the warehousing company, said the industry in general loses $16 billion annually in thefts.

The case is Integrity Staffing Solutions, Inc v. Jesse Busk and Laurie Castro, U.S. Supreme Court, No. 13-433.

 

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Amazon Taste-Tests Restaurant Takeout, Delivery Business

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group of objects|asian cuisine|take out|takeout|take-out|close up|closeup|close-up|chopsticks|chop sticks|hands|caucasian|africa
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There seems to be a lot on Amazon.com's (AMZN) plate these days, and one of the more intriguing new initiatives involves the plate itself. The country's leading online retailer began offering customers in its home market of Seattle the ability to place takeout and delivery orders online through its site.

The new offering has the rather unimaginative name of Takeout & Delivery, but we know that clever corporate monikers aren't necessarily Amazon's strong suit. After all, this is the company behind Audible audiobook rentals, Prime Instant Video streaming, and e-commerce websites including Soap.com and Diapers.com.

141 Seattle Restaurants to Start

The name may be a bit vanilla, but it's fairly descriptive. There are 141 Seattle restaurants in its initial incarnation, and the vast majority only offer takeout. Less than two dozen offer delivery.

We're still early in the initiative. Amazon hasn't indicated if it will expand beyond Seattle and at what pace. It has taken its time before. AmazonFresh -- the e-tailer's grocery delivery service -- launched in a trendy Seattle neighborhood in the summer of 2007, and it took six years before it finally expanded into Southern California last summer. Amazon's fresh grocery service has gone on to quickly expand into San Francisco, Brooklyn and Philadelphia.

Then again, AmazonFresh is the exception to the rule. Amazon Local -- the dot-com giant's Groupon-like platform -- launched in major markets fairly quickly. The difference here is that AmazonFresh required the buildout of local grocery warehouses and a fleet of refrigerated delivery trucks to make it happen in every new market. Amazon Local was simply a matter of establishing a sales team to reach out to area businesses. In that sense, it's far more likely that Takeout & Delivery follows the Amazon Local trajectory and expands quickly since it won't require major investments to enter into individual cities.

That may be welcome news for Amazon fans looking forward to new ways to line up dinner, but it's going to be bad news for GrubHub (GRUB).

The Table's Getting Crowded

GrubHub went public at $26 in April, and it was an initial success. The stock soared 31 percent on its first day of trading. However, the stock has pretty much meandered since then -- and naturally the stock has been drifting lower since Amazon rolled out Takeout & Delivery earlier this month.

GrubHub offers online ordering for takeout at roughly 30,000 restaurants across 800 cities. Its popularity is booming. GrubHub had 4.57 million active diners in its latest quarter, 50 percent more than it served a year earlier. On any given day, 172,700 hungry customers lean on GrubHub to feed their bellies.

Unlike many fast-growing tech startups, GrubHub is profitable. However, everything that it's been building can naturally be threatened by Amazon, a company that has proven in the past that it's not afraid to lose money to enter a market that it desires. Amazon has the brand, local connections and an industry-leading Web services platform. If Amazon wants to disrupt an industry, investors are well-served by respecting the space and avoiding the companies that CEO Jeff Bezos is about to compete against. When Amazon's hungry -- and it's hungry now -- it can be voracious.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. Want to make 2015 your best investing year ever? Check out The Motley Fool's one great stock to buy for 2015 and beyond.

 

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Uncle Sam Expects Gas Prices to Average $2.60 in 2015

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Thanksgiving Travel Vignettes
Orlin Wagner/AP
The Energy Department again slashed its prediction for next year's average price of gasoline across the U.S., this time to $2.60 a gallon. That would be 23 percent below this year's projected average and the lowest full-year average since 2009.

If that comes to pass, the price drop will save U.S. drivers $100 billion over the course of the year based on current consumption levels. That will boost the overall economy by reducing shipping and transportation costs, and leaving consumers more money to spend on other things.

In its most recent short-term energy outlook, released Tuesday, the Energy Department's Energy Information Administration cut its gasoline price forecast for 2015 by 35 cents a gallon. It was the second time in two months that the EIA cut the forecast by more than 30 cents a gallon.

Daily Drops Since Sept. 26

The average national price of gasoline to $2.66 a gallon on Tuesday according to AAA, 61 cents less than last year at this time. The national average has fallen every day since Sept. 26.

The steep drop in gasoline prices is a result of a drop in crude oil supplies. Global crude prices have fallen to around $66 per barrel from a June high of $115 per barrel. Global supplies are high thanks in part to rising production in the U.S., while global demand is relatively weak because of slowing economic growth in Europe and Asia.

The lower crude prices are forcing oil companies to scale back drilling plans for next year. As a result, the EIA trimmed its forecast for U.S. production growth. U.S. crude oil output is expected to rise by 300,000 barrels per day to 9.3 million barrels a day. The EIA had previously expected production to rise by 400,000 barrels per day.

Despite a colder than normal November, the EIA expects home heating costs to fall this winter compared to last year. Weather forecasters do not expect a repeat of last year's consistently low temperatures, and prices for propane and heating oil are much lower than last year.

 

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Market Wrap: Global Worries Keep Market Flat

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Pacific Press/Getty ImagesFollowing protests over the weekend, Greece announced an early presidential election.

By Caroline Valetkevitch

The S&P 500 (^GPSC) ended nearly flat on Tuesday as concerns about global weakness and political turmoil were offset by gains in technology and energy shares. The index managed to erase a 1.3 percent decline from earlier in the day, moving more than 26 points to its high of the day from its low.

Energy and technology shares boosted the market and the Nasdaq (^IXIC) ended the day higher. Apple (AAPL) shares climbed 1.5 percent to $114.12, giving the Nasdaq and S&P 500 their biggest boost. Small-cap stocks also bounced, with the Russell 2000 (^RUT) gaining 1.8 percent.

Advancing issues outnumbered declining ones on the New York Stock Exchange by a ratio of 1.53 to 1. Still, the number of NYSE stocks making new 52-week lows was 255, compared with just 117 making new highs.

Turmoil in Greece

"The market in general is digesting a very big move since its Oct. 15 low," said Adam Sarhan, chief executive of Sarhan Capital in New York. "Less than two moths ago we were flat for the year, so investors are hypersensitive to potential downdrafts in the market at this stage in the game."

Greece unnerved investors after the government brought a presidential vote forward in a political gamble that raised uncertainty over the country's transition out of its bailout.

Brent crude rebounded to settle up 1 percent after hitting a fresh five-year low of $65.29. Oil prices have been under pressure as the dollar strengthened and OPEC decided against an output cut, with Brent down more than 40 percent from its June high. The S&P energy index ended up 0.9 percent after losing 3.9 percent on Monday.

The Dow Jones industrial average (^DJI) fell 51.28 points, or 0.29 percent, to 17,801.2, the S&P 500 lost 0.49 points, or 0.02 percent, to 2,059.82 and the Nasdaq Composite added 25.77 points, or 0.54 percent, to 4,766.47.

Thinking About Next Week's Fed Meeting

Adding to the cautious tone was uncertainty over whether the U.S. Federal Reserve will change its pledge to keep rates near zero for a "considerable time" when policymakers meet next week.

U.S. telecom stocks led losses on the S&P 500 and Dow on concerns about an industry price war. Verizon Communications (VZ) warned that promotions in its wireless business would bite into its fourth-quarter profit. The S&P telecom index lost 3.2 percent while Verizon shares fell 4 percent to $46.92.

About 7.3 billion shares changed hands on U.S. exchanges, above the 6.5 billion average this month, according to BATS Global Markets. The S&P 500 is up 10.6 percent from its Oct. 15 close and is up 11.4 percent for the year so far.

U.S.-listed shares of Seadrill (SDRL) gained 5.2 percent to $12.17. John Fredriksen, the biggest owner of the offshore driller, purchased another 1.3 million shares in the firm to raise his stake to 24.15 percent.

What to Watch Wednesday

  • The Energy Information Administration releases its weekly reports on petroleum inventories at 10:30 a.m.
  • The Treasury Department releases its monthly budget at 2 p.m.

These companies are scheduled to release quarterly financial results:

  • Costco (COST)
  • Hovnanian Enterprises (HOV)
  • Lands' End (LE)
  • Men's Wearhouse (MW)
  • Restoration Hardware (RH)
  • Wet Seal (WTSL)
  • Vera Bradley (VRA)

 

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Gamse Lithographing: New Family Invigorates Old Firm

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Keeping an Industry Alive in Baltimore

By Sarah Chazan

It's funny how some things can touch your life in so many ways-even change the way you think about something -- yet you take their existence for granted. Take Gamse Lithographing Co. The Rosedlale, Maryland, printer has, more likely than not, produced at least one label that's drawn your attention to a store shelf or graces a cabinet in your home.

Founded in 1896 by German immigrants, Gamse originally began as a maker of liquor bottle labels. In fact, the company continued to print labels for beer and spirits, even during Prohibition.

Throughout the 20th century, Gamse's business grew as it printed labels for everything from can wrappers to cigarette pack labels. By 1984, Gamse was known throughout Baltimore and had a large client base across the United States.

Credit: Jack HarrisDan Canzoniero on the production floor of Gamse Lithography.
But when the Gamse family member who ran the business was ready to retire and sell the company, it was an Ohio native, Dan Canzoniero, who eventually would take over and make Gamse his own family-run company.

Canzoniero purchased 20 percent of the company in 1984, and bought the rest in 1991 after serving as president for more than 10 years. He thought he was taking over a traditional business that he would sustain just as the Gamse family did for 90 years.

But the Internet brought huge upheaval to the printing industry, forcing him and his team at Gamse to completely rethink how they did business and even the very mechanics of the company's day-to-day operations.

Chapter One: Print Perfect

Early lithographers made their prints by using etched stone. Today, Gamse uses aluminum plates coated with polymer designs to create functional pieces of art that we use in everyday life. It's a complicated process, but simply put, the aluminum plates are sequentially placed into separate machines, then coated with various colors of ink to make a print. The final product, in Gamse's case, can range from sleeves for beverage containers and candy bar wrappers to labels for pharmaceutical products.

In the consumer goods printing business, quality and consistency are what will make or break a company no matter the times or the technology. Acquiring new business is tough, but Canzoniero has kept Gamse solvent by holding onto and nurturing the client base the company has. "It's very difficult because it's like a defensive football game," he says. "Everybody is taking care of the business and the clients that they have." Because of this, Gamse's client list is top secret.

Canzoniero credits the company's location in giving his business a leg-up. "Baltimore is a pretty good place to service the Northeast corridor," he says. "A lot of purchasing is done in New York, New Jersey, Connecticut and Pennsylvania. Even though manufacturing is scattered all over the United States and the Americas, a lot of purchasing centers and decision-making is done in the mid-Atlantic."

But even with Gamse's solid client base and convenient location, the company took a hit as the Internet changed the industry fundamentally.

Credit: Jack Harris
"What happened to us is that printing went through a major catharsis," Canzoniero says. "The Internet really hurt mostly commercial, not packaging printing like us, but printing nonetheless. Students, young people, they just didn't go into our industry at all for about 10 to 12 years. That was fine when everybody who worked for us was 35, but now those people are 50 and we're looking for our next generation workforce and having trouble finding them."

So Canzoniero has rethought the way he finds talent. "What we're doing is visiting local colleges and universities starting this February," he says. "We're going to talk to kids who don't necessarily have an engineering background, but rather business. Hey, we need people in sales, customer service, production. All those areas we want to talk to these students about."

Gamse -- a company that has always prided itself on its low employee turnover -- is also becoming more open to shorter tenures for its workforce. "We've had this value on longevity that may have been detrimental," Canzoniero says. "We have to change our way of thinking, which has been come work here and stay here forever to come work here for three to five years and learn [the] business. At least we'll have the benefit of that energy and education for a period of time, and when that person leaves, it will make room for us to hire another one."

But changing his talent acquisition and retention strategies isn't going to be enough. In a world where profits are shrinking even as clients make higher demands, Gamse also is overhauling its entire operation to stay relevant. Luckily for Canzoniero, there was someone waiting in the wings to do just that -- his son, Jimmy.

Chapter Two: Inject the Tech

Jimmy Canzoniero, Gamse's executive vice president, grew up listening to the hum of the massive lithograph printers on the floor of his father's company. After college, he went to work for an Internet startup that specialized in online marketing. Jimmy, who initially did operational analytics for the company, soon became known as a "fixer of problems" at the company and segued into business development and financial analysis.

In the mid-2000s, Jimmy took a break from the startup world to get an MBA at the University of Michigan. He graduated just as the country was entering the Great Recession. Jimmy knew he didn't want to enter the banking sector like so many of his classmates. He also knew he didn't go to school for two years just to return to his old Internet startup job. At the time, Gamse -- and his father -- were trying to weather the drastic economic downturn. The decision seemed clear. Jimmy returned to Maryland to help rejuvenate the family business.

Credit: Jack Harris
With a tech background and a fresh perspective, Jimmy got to work modernizing the company. "The main thing I did was just completely overhaul the technology," he says. "I didn't expect to go as deep as I've gotten, but then again, I didn't realize before I started how far behind we were. The technology around printing has become more important because the prices in the market continue to decline, so we have to make more in the same amount of time."

To help the company run faster and more efficiently, Gamse invested in higher speed lithograph printers. Everything is computerized, and tracked on screens. For longtime employees like pressman Adam Hiner, the influx of technology has completely revolutionized their jobs. "A four-color press you had to have four people working on because everything was manual," Hiner says. "If you had to move something, you actually had to get a wrench to move it. Now we can control the machines every move through the computer. Jobs that use to take an entire day, now can only take 20 minutes."

The updated marriage of man and machine doesn't just have efficiency benefits. Jimmy has worked hard throughout his tenure to improve the image resolution qualities that come off the lithograph machines. "We show people images next to each other from 2010, 2012, 2014 and customers can really see how much better the product looks," Jimmy says. The results are vibrant labels of all shapes and sizes in rich reds, blues and yellows. To look at a sheet of Gamse labels is almost like looking at Warhol pop art exhibit.

Credit: Jack HarrisJimmy Canzoniero
Dan and Jimmy also have added two robots to the factory floor. The robots do the manual labor that employees often found monotonous. Now those same employees have been trained on other parts of the printing process, and no longer leave work with sore backs from lifting heavy stacks of paper.

One area of business development that Jimmy has especially fostered is Gamse's foray into digital printing. Unlike lithography, which can churn out huge amounts of product quickly, but takes a significant amount of time to set up, digital printing is better for small batches and generally has the perfect print right out of the gate.

Credit: Jack Harris
"It's our highest growth area of business," Jimmy says. "You can run much smaller quantities and it doesn't cost as much as it would cost clients to do a whole run on litho. What's happened is it helps to make clients more flexible. They don't have to buy a whole year and a half worth of inventory. It's enabled the process to get more efficient."

That flexibility is helping keep old clients and may even help to land new ones. As Dan reveals, some of Gamse's biggest client growth is coming not from mega-manufacturers, but rather smaller brands of ethnic and organic foods.

For now, the two Canzonieros seemed to have figured out just the right working dynamic to usher Gamse into the future. "My dad's trying to focus more on strategic things and developing new business because he's still a salesman at heart," Jimmy says. "I'm obviously excited about some of the new things that we're doing, but I don't spend a whole lot of time thinking more than about three or four years out. Knowing this industry, things will always change!"

For more Made in the U.S.A. stories, go to This Built America.

 

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Investors Got Smarter About Securities in 2014

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2014 was a very good year for investors. I'm not just referring to the performance of the market, although that was certainly impressive. As of Dec. 5, the Dow Jones Industrial Average (^DJI) was up 8.34 percent year to date.

More significantly, investors got wise to the machinations of the securities industry that has been plundering their wealth for decades. There are strong indicators that the jig may well be up for an industry that has long served its own interests while destroying the retirement dreams of Main Street investors. Here's my list of positive indicators that bode well:

Investors Are Tuning Out 'Financial News'

Just last year, CNBC saw its quarterly ratings drop to a 20-year low in the coveted 25-54 demographics. For the three months ended Sept. 30, 2013, the network's total-day viewership in that demographic plunged 24 percent to only 38,000 viewers. This was down from 50,000 viewers in the third quarter of 2012. Total viewers (including all demographics) reached only 133,000, representing a 19 percent percent drop from the same quarter 2012.

Many of the once-popular shows on CNBC -- like "Squawk Box," "Power Lunch," "Street Signs," "Fast Money" and Jim Cramer's infamous "Mad Money" -- had their lowest rated quarter ever in total viewers.

My first reaction to this news was, "What took you so long?" CNBC is a prime source of financial misinformation. It perpetuates the false belief that responsible investing requires constant monitoring of short-term financial developments. It features an endless parade of industry "insiders", who muse about the future of the markets, the direction of interest rates, stocks to buy and sell and which mutual fund managers are "hot" now.

CNBC derives significant revenue from the securities industry. Its programming serves the interest of that industry, which are to gather assets, encourage trading, stoke fear and anxiety and maximize fees, costs and commissions. At times, CNBC appears to be little more than a 24-hour infomercial for large brokerage firms, hedge funds and actively managed mutual funds.

Investors Wise Up to 'Insider' Predictions About Random Events

The pundits who appear on CNBC -- and make predictions about random and unpredictable events -- are little more than financial astrologers. The fact that they appear so supremely confident when they peer into their crystal balls no doubt leads some gullible investors to believe their insight is worthy of consideration. When they are wrong, they seek absolution by admitting their mistake. But then they move onto the next prediction, with little regard for the damage caused to investors who relied on their erroneous views.

One of the many examples of such behavior is Dennis Gartman, who is a regular "insider" on CNBC. Gartman claims to have the ability to predict the future direction of the market. On May 27, The Wall Street Journal reported that Gartman, who had been forecasting a market correction for some time, was "throwing in the towel on such a prediction." Gartman was quoted as stating, "Simply put, we've been wrong ... badly ... to have expected the market to correct." It's telling that he uses the royal "we" when talking about himself.

Undeterred, on Oct. 16, Gartman stated the selloff in global markets was "the start of a bear market" that looks set to take hold for "a long period." When the market shrugged off this selloff and continued its upward trajectory, Gartman told CNBC: "I went neutral on stocks, and I actually turned quite bearish for a couple of days - clearly that was wrong."

The steady stream of nonsensical "insights" and irrelevant musings by regulars on CNBC like Art Cashin, Gartman and Cramer, are now being viewed in an appropriate perspective. This kind of programming is entertainment masking itself as financial news. Investors are no longer content to be victimized by it.

Investors Are Voting With Their Money

In a blog post that must have shocked the securities industry, no less an authority than John Rekenthaler, the director of research at Morningstar, noted that 68 percent of net sales over the 12 months ended June 30 were passive (index funds, exchange-traded-funds and passively managed funds) and only 32 percent were active. Rekenthaler concluded that "the trend seems clear." He believes that active management is no longer "core."

Investors who adopt basic principles of index-based investing capture the returns of the global markets, using low-cost index funds, exchange traded funds or passively managed funds. These investors have no interest in the daily gyrations of the market, the predictions of emperors with no clothes, or the false sense of urgency and unnecessary anxiety created by "financial news" shot on the floor of the New York Stock Exchange.

These are very positive signs.

The Impact of Pathetic Hedge Fund Performance

Hedge funds are supposed to be run by the "best of the best" fund managers. The performance of these funds has been dismal. From 2004 to 2013, the HFRX Global Hedge Fund Index returned a puny 1.0% per year. It underperformed every equity and bond asset class.

Investors are not stupid. They can connect the dots. If this is the best these "masters of the universe" can do, how likely is it that your local broker can "beat the market" by engaging in stock picking, market timing or selecting an outperforming mutual fund? That is a question many investors are asking. When they get answers that make no sense, they focus on factors they can control, like their asset allocation, keeping costs low and taxes. This is terrible news for the securities industry and a major step forward for investors.

My Predictions

I believe this trend will continue in 2015 and beyond. If you become one of the many who now understand there is a better way to invest -- based on sound, peer-reviewed evidence -- I predict you will have a genuinely Happy New Year, and many more after that.

Daniel Solin is the director of investor advocacy for the BAM Alliance and a wealth adviser with Buckingham. He is a New York Times best-selling author of the Smartest series of books. His latest book is "The Smartest Sales Book You'll Ever Read."

 

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7 Things You Didn't Know Expire That Do

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Things You Didn't Know Expire That Do

By Maryalene LaPonsie

All good things must come to an end. That applies to you and probably a lot of the stuff filling your home.

How many of you have ancient cleaning supplies buried under your sink? It's OK. You can admit it. I won't judge. After all, when I moved into my first house, the previous owner had left some bottles under the sink. When I moved out 15 years later, some of those same bottles were still under the sink.

Part of the reason I never tossed them was because I thought cleaning supplies lasted indefinitely, and my frugal self couldn't say goodbye to something potentially useful. Turns out I probably should have ditched those already old-looking bottles as soon as I moved in.

1. Cleaning Products

According to Good Housekeeping, cleaning supplies can degrade over time and lose their effectiveness. The plastic containers they're stored in may also affect their formulas over time. The magazine says you can use these rules of thumb when it comes to deciding when cleaning supplies expire:
  • Laundry detergent -- six to 12 months.
  • Fabric softener -- one year.
  • Multisurface cleaners -- two years.
  • Cleaners with antibacterial ingredients -- one year.
  • Disinfectants -- two years.
  • Dishwasher detergent -- three months.
  • Dish soap -- 12 to 18 months.
If you use bleach in homemade cleaners, be aware it can lose its effectiveness quickly once diluted. The Scripps Research Institute says a 10 percent bleach solution is potent for only a day. Even in its original bottle and undiluted, bleach can start to degrade after six months.

2. Car Seats

If your baby is in the same car seat your 10-year-old used, it's time to go shopping.

Car seats are another unexpected item that will expire. You can usually find the expiration date printed on the label on the side of the seat, and my personal experience has been that most are good for five to six years. However, manufacturer Graco says seats often have expiration dates ranging from six to 10 years.

The seats may expire because the plastic degrades over time, but safety innovations are another reason manufacturers put a shelf life on their products. Technology is constantly evolving, and 10 years from now, a better and safer car seat should be developed ... at least in theory.

3. Motor Oil

With the fluctuating cost of oil, it may be tempting to buy a lifetime supply when you find a great deal. But you could end up with oil that doesn't perform well if you pull out a bottle that's been in storage for years.

Some oils have additives that can break down over time. In addition, open or unsealed bottles can absorb moisture. The shelf life may vary depending on the manufacturer. For example, Valvoline says its products are "stable for an extended period of time," while ExxonMobil (XOM) advises that its oil has a five-year shelf life.

4. Toiletries and Cosmetics

Just because your dentist gives you a new toothbrush every six months doesn't mean you can use that brush the entire time between visits. To keep your pearly whites clean and healthy, you should change brushes every three months.

Toothbrushes are just one example of how many bathroom essentials expire. In fact, most of the beauty and hygiene products in your cabinets will eventually go bad. In some cases, they may simply not work as well, but some cosmetics may collect bacteria over time and may pose a health risk.

Clean My Space has put together a comprehensive list of expiration dates for common cosmetic products and toiletries. You can find the complete list on its site, but here are some sample expiration dates:
  • Mascara -- three months.
  • Lipstick -- two to three years.
  • Oil-free foundation -- one year.
  • Cleanser -- two years.
  • Deodorant -- three years.
  • Shampoo/conditioner -- three years unopened.
  • Bar soap -- three years.
5. Paint

Paint is another item that hangs out in many houses indefinitely. You use half a can and then put the rest in the basement, where it sits until the inspiration to do touch-up work hits you 10 years later. By that time, your paint has probably gone bad.

Glidden says its unopened latex or oil-based paints should have a shelf life of two years. However, that's assuming you don't let them freeze and store them away from heat sources like the furnace. The Home Repair Resource Center gives these recommendations for other home repair and renovation products:
  • Oil-based stains -- one year opened, two to three years unopened.
  • Water-based stains - one year opened, two years unopened.
  • Oil-based varnishes -- one year, opened or unopened.
  • Caulk -- two months opened, one year unopened.
  • Glazing compounds -- one year opened, two years unopened.
Of course, some paints and products may last longer, depending on their formulation and storage. Straight Line Painting has some tips to help you decide if your old paint is still good or needs to be pitched.

6. Alcohol

While fine wine gets better with age, the same can't be said for all forms of alcohol. Even bottled wine will go bad if stored improperly, and boxed wine is only good for about a year after packaging.

Mass-produced beer has an expiration date on it, and while drinking past that date won't hurt you, it might be a less than tasty experience. As for craft beers, food website The Kitchn reports that their flavor peaks a few months after bottling. However, when stored out of the light and at a stable temperature, they should last a year before the taste begins to really go bad.

There is even a limit to how long the hard stuff will last. Again, we'll go back to The Kitchn. The site says unopened bottles of liquor will last indefinitely, but once opened, they begin to lose potency. It's best to use up that whiskey, vodka and bourbon within a year after your first sip.

7. Batteries

Finally, we wrap up our list with batteries. Today's batteries usually have a fairly prominent expiration date listed somewhere on the package, but in case you missed it, we're here to remind you the batteries you stored for Y2K are probably no longer any good.

Because of science I don't fully understand (I am a writer, after all), batteries can begin losing small amounts of energy from the moment they're manufactured. As a result, old batteries could be completely depleted or corroded before you ever crack open the package.

The shelf life for batteries can vary significantly depending on how they're made. For example, Energizer (ENR) says its ultimate lithium batteries will last 15 years, while advanced lithium batteries have a shelf life of 10 years. Meanwhile, the company's rechargeable batteries lose 1 percent of their deliverable energy every day, giving them a short shelf life before they need to be recharged.
Stocking up at low prices can be a smart financial move, but only if you can use what you buy before it goes bad. If you have a bathroom full of old cosmetics or a garage filled with paint and oil, it may be time to purge and be a little more mindful about what you buy in the future.

 

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How You Can Easily Replace a Damaged Phone

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Broken phone screen
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When you sign up for those two-year mobile service contracts in exchange for a lower price on the latest high-tech phone, you're generally counting on that phone to last as long as your deal. But what if it gets dropped, is stepped on or just won't turn on?

Is Your Phone Less Than a Year Old?

If you're within the manufacturer's warranty period, you're probably OK. In the U.S., Apple (AAPL) will repair or replace its products if they fail within the first year. In my experience (two dead iPhones and one laptop with a damaged hard drive), a short visit to the Apple Store generally results in either a same-day repair or a brand-new replacement.

However, Apple's warranty won't cover cosmetic damage (such as a cracked screen), normal wear and tear, or damage clearly caused by "misuse" (say, dropping the phone in water). Other popular phones, such as Samsung's (SSNLF) Galaxy line, have a similar warranty policy.

Older Than a Year?

If you're outside the warranty period or the damage is not covered by the manufacturer, but you still have months left on your contract, what to do? You could shell out for a brand-new phone... or check your credit card statement.

That's right: If you originally purchased the phone with a credit card, you may very well be covered for an additional year on top of the manufacturer's warranty. American Express (AXP) and Visa (V) Signature cards even cover wear and tear and refurbished items, which are excluded by some cards' policies. Many of these credit card warranties even add a year on to some extended warranties.

Sounds Too Good to Be True...

Of course, as with any type of warranty claim, you'll have to provide documentation -- an original receipt, proof of the card you used to purchase the item, a copy of the manufacturer's warranty and a repair estimate are common requirements. If your claim is approved, the company can choose to cover the repair cost or reimburse your original purchase cost.

What If the Damage Still Isn't Covered?

If the damage was clearly your fault and happens within 90 days of purchase, some cards will reimburse you for the sales price under "purchase protection" benefits. All American Express and MasterCard (MA) credit cards have this benefit, along with Visa Signature cards, like the popular Chase Sapphire Preferred card, which has 120-day protection up to $500. Exclusions apply, of course, so be sure to read the fine print.

Bought your phone on Amazon.com (AMZN)? It's worth an email to its customer service department. There's no official policy on this, but I have had Amazon take back broken electronics well past the return window for a full refund. I got that tip when making a warranty claim with another company. The company's customer service rep, who was bemoaning her employer's terrible warranty service, gave me that advice and it worked like a charm.

If all else fails, broken or damaged phones and other electronics still fetch some cash on eBay (EBAY) -- hobbyists use them for parts. Just be very clear about the extent of the damage (including the phrase "for parts" in your title is smart) and provide clear photos to avoid disappointed buyers.

So What Should I Do Before I Buy My Next Gadget?

According to CardHub.com's recent study of credit card extended warranties, American Express cards offer the best policies overall, so consider using one for any pricey purchase (TVs, iPads, cameras and other expensive electronics are especially good candidates). If you don't already have an Amex card in your wallet, check out the cards you do have to see if any offer a similar benefit. Over time, it can prove very valuable and provide you the peace of mind to skip the stores' overpriced extended warranty offers.

And be sure to keep those receipts.

Motley Fool contributor Robyn Gearey owns shares of Amazon.com and Apple. The Motley Fool recommends Amazon.com, American Express, Apple, eBay, MasterCard and Visa. The Motley Fool owns shares of Amazon.com, Apple, eBay, MasterCard and Visa. Try any of our Foolish newsletter services free for 30 days. Check out our free report on the Apple Watch to learn where the real money is to be made for early investors.

 

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How the Online Economy Gets Ahead by Cheating

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Earns Amazon
Paul Sakuma/AP
By Eric Reed

It's easy to take generally dim view of online businesses, despite the financial success of companies like Amazon (AMZN), Airbnb and Uber. With Uber's recent drive to cement its legacy as the sleaziest company in America, the table seems open for criticism and I've got plenty.

In part this is a simple distaste for the impact e-commerce has on our communities. Thanks to the gutting of retail, once thriving public spaces are steadily dwindling into service industry wastelands filled with high turnover, low wage bars and restaurants. For people like me who prefer in person shopping, the death of retail has become an exercise in grim frustration. I never thought I'd say I miss Blockbuster, but if I want to watch "The Internship," it doesn't mean I'd like to schedule a viewing in 36 hours. By then I'll have come to my senses.

But that's personal preference. My substantive objection to e-commerce is more straightforward: online companies cheat. Across the spectrum these businesses enjoy their enormous success due, in part, to the fact that they avoid or simply ignore inconvenient laws. Traditional shops and services that already struggle to compete don't have this luxury, and they suffer for it. Here's how.

Sales Taxes

Sales tax allows online retailers to steal business from brick-and-mortar businesses by giving e-tailers a built in discount. Put another way, in Chicago the local government forces bookstores to charge an extra 10% while the Illinois Supreme Court has said it doesn't have the power to force Amazon to do so. Even with shipping included, that's an incredible margin purely because the government put its thumb on the scale.

And customers respond. Earlier this year Ohio State University published a study that proved what most of us intuit: cut the e-tailer's discount, and shoppers get more selective. Households spend about 10 percent less on Amazon in states that have an Internet sales tax, and online purchases of $300 or more fall by almost a quarter. In other words, sales tax matters. It's a competitive advantage that online retailers get not because they're smarter, more nimble or offer a better product. They profit from a quirk in the legal system.

In 1992, the Supreme Court ruled that mail-order businesses don't have to collect sales taxes for states where they don't have a physical presence without legislation otherwise. Instead it's up to each one of us to calculate how much we spend on Etsy and Amazon and submit a "use tax" every April 15. A use tax is exactly the same as a sales tax except it's up to the consumer to calculate and submit after the fact, instead of sales taxes which are calculated at point of sale and filed by the business.

You can imagine precisely how often this happens. No local government is interested in or even capable of enforcing use taxes on every book, diaper and craft purchased online. They enforce it against big ticket items like cars or boats, and the rest becomes a discount for web enterprise.

Build a better business, and I'll be the first to say you should collect your rewards. Find a legal loophole that forces competitors to charge more than you, and it's cheating.

Regulations and Licensing

Online companies also cheat by making their competitors spend more than they do, this time by ignoring the law altogether. We love companies like Airbnb and Uber, along with their copycats, because they can offer traditionally high demand services faster and cheaper (generally) than hotels or cab companies can. They do so by relying on an army of part time and freelance workers who pretend it's all just sharing in order to duck all of the professional regulation and licensing requirements that offline businesses have to pay for.

Take Airbnb. An apartment listed on that site acts like a hotel, competes with hotels, makes money like a hotel and for most customers is functionally indistinguishable from a hotel. It contributes to a multimillion dollar business like a hotel. Yet the website and its renters insist that it is not a hotel.

So, too, with Uber, whose drivers can offer low cost rides partially because they don't pay for the training, insurance and licensing costs that cabbies have to pay for.

By not bothering with business laws, online companies can keep their overhead artificially low. They can offer a product at prices impossible for anyone else, again not necessarily because they have a better idea but because they ignore rules that would add costs. Their competitors can't, because the state enforces those law against traditional business, and consumers follow their wallets.

Everyone Should Play by the Same Rules

I'm not arguing in favor of any specific regulations. There's ample evidence, for example, that even if it was once a good idea, our taxi licensing scheme has been captured by ride seekers working against the market. The per person availability of cabs in most cities has plummeted because cab drivers want to protect their turf, and part of the reason Uber and Lyft have become such explosive successes is that they addressed a serious need.

That doesn't make it fair to enforce the law against some people while letting others off the hook. The government shouldn't pick winners and losers based on who regulators and tax collectors can most easily lay their hands on. Anyone who wants to sell books in my neighborhood should have to charge the same sales tax whether they use a website or a bookshelf. Whether 10 percent is a fair value for that tax is a different issue altogether.

Right now we're punishing all those businesses that play by the rules and rewarding an entire sector of industry for thumbing its nose. The web still has a ways to go as a maturing as part of society, and it won't get there until online businesses prove they can compete without cheating.

 

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5 Money Mindsets That Are Tripping You Up

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Young beautiful woman with many shopping bags after shopping in a mall not satisfied with the buys
With love of photography
Successful money management is about more than pure numbers. You also have to get inside your own head and make sure your perspective on money is healthy.

If you're looking at spending from a skewed point of view, it could be costing you.

Here are five common money mindsets that might be standing in your way -- and how you can stop falling into them.

1. Shop Till You Drop

If you see shopping as a hobby or a stress-reliever, you're likely to spend far more money than you ought to on things you don't even need.

Come up with alternate ways to channel your energy and boost your mood, like joining a gym, taking a cooking class or going out to coffee with friends.

Learn to see shopping as an errand to be done only when needed, and steer clear of stores and malls unless you have a reason to be there. Once you began viewing shopping as an errand or chore, you'll begin dreading it -- just as you dread scrubbing the toilet. You won't enjoy shopping anymore, and you'll want to spend as little time at the store as possible.

2. Extreme Frugality

An obsession with bargain-hunting can actually wind up costing you. You can become so wrapped up in the challenge of finding a good deal that you loose sight of the bigger picture.

If you're lured by the siren call of a sale or hot promotion, ask yourself if the item is something you truly need or if you're just attracted to the price. Make sure you're buying items that are both low-price and high-quality; it won't do you any good if you need to replace that cheap purchase in a few months -- or worse, weeks -- because it's worn out.

3. Love of Convenience

You pay a premium for convenience, and it's not always worth it. If you're in a genuine rush, it's OK on occasion to grab a coffee on the go rather than brewing it at home or buy a pre-made meal rather than putting one together yourself.

But if this is more your habit than your exception, you could be shelling out way more money than you need to be. Get into the practice of asking yourself whether you could get something cheaper if you made it yourself or bought in advance rather than at the last minute. The extra minutes you spend could be worth the money you save.

In fact, you'll find that "convenience" items (like grabbing a coffee on-the-run) become inconvenient once you develop the habit of planning.

4. Who Needs a Plan?

To manage your money properly, you need to be organized. From how much you'll set aside for savings each month to which items you need at the grocery store, systems and lists are essential to stay on top of where your money's going.

Create a budget and stick to it. Make shopping lists and stick to them. Come up with a strategy for your retirement, your investments, your holiday gift giving.

Don't treat your money haphazardly. Take the time to plan ahead and spend strategically, and your money will stretch much further.

5. Keeping Up With the Joneses

One of the easiest ways to ruin your finances is to worry about what everyone else has -- the classic "keeping up with the Joneses" effect. Maybe your neighbors bought a vacation home or your sister has a new SUV, but that doesn't have anything to do with you. Maybe all your friends own homes and you're still living in the same studio apartment, but they're on different timetables than you are, and their finances are in vastly different states.

As long as you're happy with what you have, don't pay attention to other people's lifestyles. In the end, having all the stuff in the world won't truly make you happy, anyway, so what does it matter how much stuff you have?

Instead, focus on what's truly meaningful: Picking a meaningful career. Traveling. Spending time with friends and family. Enjoying flexibility. These are more meaningful than having a diamond ring or an SUV that's as large as everyone else's on your street.

And by focusing on those priorities -- and subsequently putting your extra income into investments for your future, rather than toys and bling for the present day -- you may wind up in a much stronger financial position than "the Joneses."

Paula Pant ditched her 9-to-5 job in 2008. She's traveled to 30 countries, owns six rental units and runs a business from her laptop. Her blog, Afford Anything, is a gathering spot for revolutionaries who understand that they can afford anything -- just not everything. Visit Afford Anything to learn how to shatter limits and live life on your own terms.

 

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Big Retailers Price Black, White Barbies Differently

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barbie doll pricing discrepancy
Source: WalmartWalmart is one of several retailers that has different pricing for their Barbie Ice Skater caucasian and African-American dolls.

By Katie Little | @KatieLittle

Why are black Barbies priced differently than white Barbies?

It's a tough question and one that some of America's biggest retailers are having to answer amid the biggest shopping time of the year.

For example, Tuesday afternoon Walmart's (WMT) website listed an African-American ice skater Barbie for $11.87 while the Caucasian version costs just $9.88.

The retailing giant said the pricing discrepancy was an unintended error.

Source: Walmart
"They should always be the same price, across all ethnicities," a Walmart spokesman said Tuesday evening. "This is just a pricing error. We corrected it immediately."

In fact, the retailer vowed to make up the price difference with a gift card for any customer who purchased the more expensive African-American doll. The spokesman said he didn't know how long the prices had been different or how many shoppers might have purchased them at the wrong prices.

This isn't the first time Walmart's website has gotten it into hot water. Before Halloween, the company listed 'Fat Girl Costumes' section online as a section. It removed it after the category sparked outrage.

Meanwhile, over at privately held Toys R Us, the same African-American Barbie skating doll was on sale for $10.99 -- less than the $14.99 price of the white Barbie.

Barbie doll pricing discrepancy
Source: Toys R Us
"It is our policy to price like dolls of all ethnicities the same. We will ensure the pricing is corrected," Kathleen Waugh, vice president for corporate communications at Toys R Us told CNBC in an e-mail.

Mattel (MAT), the maker of the Barbie dolls, didn't respond to CNBC's requests for a comment.

Discount retailer Target (TGT) already caught heat from its own case of Barbie pricing discrepancy. The retailer originally priced its African-American fashion design marker Barbie at $49.99 -- more than twice the sale price of the $23.49 white version, reported WCPO's website.

Target is now selling both Barbies for $20.99.

"It is never our intention to offend our guests with our product assortment," a Target spokesman said, in a statement. "Both dolls should have reflected the same pricing, however, due to a systems issue this change did not occur."

 

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These Cool Sites Have Gifts Everyone Will Love

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The Best Websites for Unique Holiday Gifts

By Morgan Manousos

Holiday shopping can be overwhelming when you're trying to find the perfect gift for everyone on your list. These cool sites come to the rescue.

For the chefs in your life, check out Turntable Kitchen. A box will be delivered to their door filled with recipes, ingredients and a mixtape with the perfect soundtrack to their meal. With this gift you're sure to get invited the next time they cook.

Buy Olympia is similar to Etsy. It has leather goods, art, jewelry, books from more than 100 artists. The site offers gifts at different price ranges, so you'll be sure to find something fun for that office secret santa party.

Check out the gift guide at Flight001 for jet-setter friends.

You'll be able to find the perfect gift for the guys in your life on Men in Cities. It's a New York City-based lifestyle accessories brand. Every month it designs cool new products, from Tibetan mask tie clips to jump ropes.

Lauren Conrad and Hannah Skvarla co-founded The Little Market. It showcases handmade products from all over the world. They have beautiful jewelry, linens, and even stuffed animals.

 

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Do I Buy a Home or Pay Down My School Loan?

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Whether or not you stop into the coffee shop several times a week probably won't kill your finances. However, when it comes to larger goals, like saving for a home or paying down debt, short-term decisions can have a dramatic effect on your finances and your emotions.

I recently spoke to Brian, a 29-year-old professional who has amassed $28,000 in his savings account. Several people told him that he should use that money to pay off his $25,000 student loan and be debt-free. Others said that he should use that money toward the down payment on a house that he wants to buy in a year or two and then pay down his loans with his extra savings each month.

Brian is an intuitive guy, but his gut was not helping him. Recognizing that this was a major life decision that he didn't want to get wrong, he did what many people do: he froze and did nothing.

We often think that financial decisions are black and white, like there is a right and wrong way to manage all aspects of our finances. Fortunately, this isn't the case for many financial choices. By looking at all aspects of a situation, decisions can be made that best suit the individual (or family).

Objectivity and Humanity

And some of these decisions will not strictly rely on objectivity, but rather, take into account the emotions and priorities of the decision-maker. We can pretend that we will always view tough situations objectively. However, we are human, and it's just not that easy. So, rather than resist the urge to be human, why not embrace it and give ourselves the freedom to choose what's best for us?

Brian could certainly take $25,000 in savings and pay off his student loan. From a cost standpoint, this would be the best decision, as he would avoid paying a few thousand dollars in additional interest over the life of the loan. Doing so would also leave him with a mere $3,000 in his savings account -- a long way from a down payment on a home.

Sure, he could build up his home fund again over the next few years. However, what if he comes across an amazing deal for the home of his dreams in 12 months? He can't buy it, because he used the down payment to pay off the loan.

How Would You Feel?

This is where the human factor comes in. Would he care that he saved some money on interest or would he be kicking himself for not keeping the savings for this once-in-a-lifetime home buying opportunity? Of course, only Brian would know the answer, but step into his shoes for a minute and ask the same question. How would you feel?

On the other hand, if he kept the down payment in his savings account and simply used his extra monthly savings to pay off additional principal on his student loan, he would have been able to buy that home.

This is precisely the situation where objectivity and emotions collide. Paying off that loan saves money in interest, albeit, over a long period. But, having money set aside to buy his dream home when the opportunity arises -- well, that's priceless.

And so it goes in the world of personal finance. We all look for the right answer to our financial questions. Sometimes the answer is clear, yet other times, we must consider all relevant information before making a choice. And the choice that is best for us may not always be the one that saves us the most money. Our emotional well-being plays a huge role in the quality of our lives, so we'd be smart to consider it when we make important financial decisions.

 

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Liberals, Conservatives Gripe About $1.1 Trillion Bill

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Congress Spending
J. Scott Applewhite/APFrom left to right, Senate Majority Leader Harry Reid, D-Nev., Senate Minority Leader Mitch McConnell, R-Ky., Speaker of the House John Boehner, R-Ohio, and House Minority Leader Nancy Pelosi, D-Calif.
By DAVID ESPO and ANDREW TAYLOR

WASHINGTON -- Exposed to the light of day, a year-end, $1.1 trillion spending bill drew vociferous objections from liberals and milder criticism from conservatives on Wednesday while lawmakers readied a brief, stopgap measure to prevent a government shutdown both parties vowed to avoid.

Democrats complained bitterly in public about a portion of the $1.1 trillion measure that eases regulations imposed on big banks in the wake of the 2008 economic meltdown -- even though 70 members of party's rank and file supported an identical provision in a stand-alone bill late last year.

After a closed-door meeting, Democrats also chorused objections to separate section of the spending bill that eases limits on campaign contributions to political parties.

The White House declined to state President Barack Obama's position on the legislation, negotiated in secret over several days by senior lawmakers, including top leaders in both parties and both houses.

Putting these two things together in the same bill illustrates everything that's wrong with the political process right now.

"Putting these two things together in the same bill illustrates everything that's wrong with the political process right now," said Rep. Chris Van Hollen, D-Md.

Republicans countered -- correctly -- that Democratic negotiators initially signed off on both, and Speaker John Boehner rebuffed a request from the Democratic leader, California Rep. Nancy Pelosi, to jettison them.

"If Rep. Pelosi doesn't think her negotiators did a good job, she should discuss it with them," said Michael Steel, Boehner's spokesman.

On the other side of the political spectrum, some conservatives grumbled that the measure left the administration's controversial new immigration policy unchallenged until the end of February. That decision "makes no sense at all. We've let the Democrats set their agenda as though we lost the election," said Louisiana Rep. John Fleming.

Given opposition from an unknown number of conservatives, Boehner and the Republican high command likely will need some Democratic support to assure the bill's passage in a vote set for Thursday.

Whatever the Democrats' motive, the political crossfire left the massive, 1,603-page bill in limbo -- and so, too, chances of a smooth ending for a Congress marked by two years of intense partisanship.

Other legislation awaited approval as lawmakers looked to the year-end exits.

Overwhelming Passage

The House voted overwhelmingly to renew a program that requires the government to assume some of the insurance risk in disasters resulting from terrorism. The vote was 417-7, even though the same bill repealed a different section of the so-called Dodd-Frank law that regulated the financial industry a few years ago.

A second measure awaiting clearance renews expiring tax provisions and a third would bless the administration's plan to equip and train Syrian rebels fighting Islamic State forces in the Middle East. Majority Leader Harry Reid, D-Nev., also sought confirmation for nine more of Obama's appointees to the federal bench and confirmation of a slew of other officials in a final show of political strength before Republicans take control of the Senate in January.

Reaction to the spending bill dwarfed other issues of the day.

House Republicans, meeting privately, received an 11-page document prepared by the leadership that said the bill "stops wasteful spending, reins in regulatory overreach, avoids shutdown, improves government."

Conservative Rep. Richard Hudson of North Carolina, said he was pleased. "I think we won on policy [and] the budget numbers are lower than I ever thought it would be," he said of the measure, which cited the very provision relating to banks that inflamed Democrats.

Rolling Back Financial Reform

It would roll back regulations that prohibit financial institutions from using federal deposit insurance to back investments on some complex financial instruments. Supporters said that would help farmers and other borrowers secure loans, and opponents derided it as a bailout.

Sen. Elizabeth Warren, D-Mass., urged by some liberals to run for president in 2016, said the measure amounted to government "for the rich and powerful," and would favor the same financial institutions "that nearly broke the economy in 2008 and destroyed millions of jobs."

A spokesman for Hillary Clinton, odds-on favorite to win the Democratic presidential nomination if she runs, didn't respond to a request for comment.

An unlikely coalition of the unwilling was building in opposition to the legislation.

The AFL-CIO and the conservative Heritage Foundation both called for its defeat. So, too, Democracy 21, which seeks to reduce the influence of big money in politics.

America's Health Insurance Plans, representing insurance companies, complained that another provision would lead to higher premiums for consumers. The AARP, which claims a multimillion membership of seniors, objected to a bipartisan agreement -- a Democratic priority -- that will permit reductions in benefits for current retirees at multi-employer pension funds in extreme financial distress.

Campaign Finance Changes

The campaign finance changes would sharply increase the amount an individual may contribute to various national political party accounts annually, from $32,400 to $324,000 for national conventions, election recounts and headquarters buildings.

For all the controversy, the legislation marked a return to normalcy in an era of divided government.

Instead of providing interim funding, the comprehensive legislation was really 11 separate bills in one to assure operations through the Sept. 30 end of the budget year, and was stocked with policy changes sought by one party or the other.

The exception is the Department of Homeland Security, which would be funded through Feb. 27. Republicans intend to try then to force Obama to accept changes to his immigration policy, without opening themselves to charges that they risk shutting down the entire government to get their way.

Under the president's policy, an estimated 4 million immigrants in the United States illegally would be spared the threat of deportation.

-Associated Press writers Alan Fram, Stephen Ohlemacher, Erica Werner and Philip Elliott contributed to this report.

 

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Millennials Spare No Cost When It Comes to Health Coverage

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By Ellen Chang

NEW YORK -- Millennials are enthusiasts of health insurance plans which offer a low deductible but a high premium, according to a Bankrate.com report.

Their sentiment mirrors what a large group of consumers prefer when they are choosing health insurance plans, with 36 percent of Americans who chose that option. More than four in ten Americans (44 percent) prefer a high deductible health insurance plan with a lower monthly premium, while 9 percent said they don't like either of those two plans.

"It's much better to go through the pain of researching and choosing a plan now than it is to figure out how you're going to pay for an unexpected hospital visit during an emergency," said Doug Whiteman, Bankrate.com insurance analyst.

Millennials and Americans with household incomes of $30,000 to $49,999 are the most likely to prefer a high premium/low deductible plan, while higher income consumers who make $50,000 and up and those ages 30 to 64 years old are more likely to prefer a low premium/high deductible plan.

While a low health insurance premium can be very attractive, you don't want to make the mistake of focusing too much on your monthly payment.

"While a low health insurance premium can be very attractive, you don't want to make the mistake of focusing too much on your monthly payment," he said. "Especially for older Americans who may require more doctor visits than their younger counterparts, a low premium/high deductible plan could actually cost more in the long run."

Despite efforts to improve the health insurance exchanges, many consumers still experience trepidation shopping for their health insurance. In fact, 82 percent of Americans who recently shopped for health insurance say that it's just as bad as or even worse than doing their own taxes, while 75 percent say it's the same or worse than getting the middle seat on a crowded airplane. Even having a tooth filled is better than health plan shopping for some Americans, with 23 percent of those who recently shopped for a plan saying it was less enjoyable than facing the dentist's drill and 45 percent saying it's just as bad.

"Shopping for health insurance can be complicated, but it's one of the most important decisions you can make," said Whiteman. "If you have the wrong coverage or no health insurance at all, you could be just one illness or injury away from massive medical bills."

The survey also found that 32 percent of Americans say they feel "more negative" now than they did a year ago about the Affordable Care Act's impact on their own health care, more than twice as many as the 15 percent who feel "more positive."

Choosing a health insurance plan with the lowest monthly premium is often not the best bet even for Millennials on a budget, said Carrie McLean, director of customer care at eHealth.com, an online health insurance exchange based in Mountain View, California.

Potential Budget Woes

Although Millennials often go straight to the health plan with the lowest monthly premium, the issue which arises is that those plans tend to come with higher co-payments and deductibles, which can throw a budget off if you aren't prepared.

"When they actually need medical care, they may find themselves stuck with more of the bill than they can comfortably afford," she said. "As a rule, you should never enroll in a plan with a deductible so high that you couldn't afford it in a serious medical emergency."

High deductible plans can be advantageous for healthy people who are willing to take a risk financially or are prepared to shell out a large amount of money from their savings.

"With a high deductible plan you'll be responsible for a bigger share of the bill when you seek medical care, so if you do not often need medical care, a high deductible plan may keep more money in your wallet," Amy Kleckner, senior marketing director at GoHealth, a Chicago-based online health insurance exchange.

If you get sick or injured unexpectedly, you'll be on the hook for more of your medical expenses than with a low deductible plan since your coverage won't kick in until you've met your high deductible, which can be about $5,000 for an individual, she said.

Premium Fixation

While most consumers tend to fixate on the monthly premium cost, you could wind up spending more money in the long run. What people need to pay attention to are their out of pocket costs such as the deductible.

While there are limits on out of pocket costs, most people find the amounts very steep. The out-of-pocket limit for 2015 is $6,450 for an individual and $12,900 for a family, according to the IRS. Choosing a lower deductible plan can help prevent you from reaching the out-of-pocket limit, she said.

If you only go to the doctor once or twice a year or don't take regular prescription drugs, consider a bronze or silver plan, said Kleckner. Bronze plans cover 60 percent of health care costs and have low monthly premiums, but high deductibles. Silver plans generally have a higher monthly premium than bronze plans, but they cover a greater percentage of medical expenses and offer a deductible that can be about 70 percent lower than a bronze plan.

Silver plans are a good option if you qualify for tax subsidies or cost-sharing reductions because you can essentially pay a silver plan's premium and receive the lower out of pocket costs of a gold or platinum plan, Kleckner said. Gold and platinum plans are ideal if you frequently visit the doctor and regularly use prescription drugs. They are generally high premium/low deductible plans, so the insurance company will cover more of your medical expenses.

 

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10 Great Kid Gifts for Less Than $10

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Great Kid Gifts for Less Than $10

By Maryalene LaPonsie

Christmas is almost here. Are you ready yet?

If you're still looking for some extra stocking stuffers or cheap presents for the kids in your life, you'll definitely want to watch the video above. Money Talks News founder Stacy Johnson has some great gift ideas that cost practically nothing. Then keep reading for more inspiration.

1. Legos. I know. Some of you are freaking out at this suggestion. Holy moley, those babies are expensive, right? Well, sure, if you're going to buy the Millennium Falcon. But you can get plenty of fun little sets such as a surfer rescue or a Duplo caterpillar at regular or sale prices below $10.

2. Pack of cards. You can pick up a cheap pack of cards from virtually any dollar store or toy department in the country. They may cost only a couple dollars, but they come with the potential for hours of fun. For the younger set, look for games such as Old Maid or Go Fish that feature big numbers and bright graphics. Tweens and teens might like to receive a regular pack of cards and learn some grown-up games once the dinner dishes are put away.

3. Craft supplies. You could spend $20-plus on a bundle of craft supplies or you could make your own set for less than half the price. Head to the dollar store and look for construction paper, markers, ribbon, glue, beads and other crafty items. Arrange them in an inexpensive bin or basket and wrap it up with some wrapping tissue or cellophane for a fun and creative gift.

4. Temporary tattoos. There's something about temporary tattoos that children love. It's like being given permission to write all over yourself. You can find some stencil kits that will let kids make their own body art or for the non-artists, check out Monster Hands to combine tattoo mania with hand puppet fun.

5. Coupon book. You can't beat free, and you don't have to spend a dime to give your favorite kids a homemade coupon book full of little splurges. Coupons could be for an extra hour of screen time on the weekend, a night off from chores or having dessert before dinner one night.

6. Give an experience. Similar to a coupon book, you could give an experience. Younger kids might not quite grasp the concept behind this gift, so it might be best for those who are a little older. Put in a box or card a certificate entitling the child to a date with you. It could be taking your niece to see a matinee or fishing with your grandson. Either pick something you know they'll love or let them make the call - as long as it is within reason.

7. Makeup bag. For this one, if you aren't buying for your own daughter, you'll want to check with the parents first. However, if you get the green light, most girls love the chance to play dress-up and that includes experimenting with makeup. Pick up an inexpensive toiletry bag and stuff it with sample-size makeup items. If the girl in your life isn't quite old enough for makeup, you could include lotions, soaps or other bath items instead.

8. A share of stock. Not all kids will appreciate this one when it comes out of the box, but if you make a wise choice, they'll thank you later. Buy a single share of stock and wrap up a certificate in a box or card. Then, show them how to follow the stock value and explain that eventually that $10 gift might be worth a whole lot more.

9. Books. Some hardcover books can be pricey, but there are plenty that fall in the $10-and-under range. And you know what? Almost every kid loves some type of book. Even if they aren't the reading type, you can find Mad Libs, puzzle books or comic books that fit just about every level of interest.

10. Candy bags. Finally, you simply can't go wrong with candy. Mom and Dad might not be thrilled, but if you show up at the Christmas party with bags of candy for every boy and girl, we'll bet you'll be in the running as the favorite relative for everyone under age 18.

Those are 10 great kid gifts under $10, but they certainly aren't your only options. If you've given a cheap gift that was a super hit, tell us about it in the comments below or on our Facebook page.

 

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Nearly 1 in 5 Americans Expect to Die in Debt

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Debt has become a fact of life in a literal way in the U.S. Almost 1 in 5 -- 18 percent -- of those already in debt expect to still be in debt when they die and 11 percent only see a debt-free life in their 70s. The debt included mortgages, student loans, car loans and credit card bills.

The data, from a CreditCards.com survey of 1,001 adults with a margin of error of 4.3 percentage points for those who were in debt -- offer anything but seasonal cheer. In May 2013, CreditCards.com found only 9 percent who thought life-long debt was their likely future. Even those people not currently in debt expected it in their future. Thirteen percent of all people interviewed, whether currently in debt or not, said they would "never" pay off all their loans by the end of their lives.

"Disturbing" is the characterization that Christopher Viale, president of non-profit Cambridge Credit Counseling of Massachusetts, gave to the site. "I am most concerned about the 13 percent who expect that they'll never be debt-free, given all the negative consequences that come with such a bleak outlook," he said.

Women in general were 50 percent more likely to expect a life of debt than men (15 percent versus 10 percent). At 15 percent, white Americans were far and away the most likely to expect to die in debt than black Americans (9 percent) or Hispanic Americans (8 percent). Viale attributed the difference to amounts of student loan debt held.

The younger the person, the more optimistic. Only 6 percent of millennials expected to never emerge from debt, versus 22 percent between 50 and 64 and 31 percent of those who were 65 years of age and older. According to CreditCards.com, experts say the optimism is probably unrealistic. Fifty-seven percent of Americans from 18 to 29 years old who are currently in debt expect to pay it all off by age 30.

The problems with debt weren't an issue of income. People earning less than $30,000 a year were about as likely (14 percent) to expect lifelong debt as those at all other income brackets: $30,000 to $49,900 (12 percent); $50,000 to $74,900 (14 percent); and $75,000 or more (12 percent). However, it isn't clear that wealthier people would provide the same answers.

According to the study and analysis, the likely reason for the attitudes is the ongoing fallout of the Great Recession.

But there is apparently enough optimism to fuel additional debt, at least for the holidays. Thirty-eight percent of all consumers had already made holiday purchases on credit. Of those, almost three-quarters (74 percent) expected to settle those debts within three months, while 55 percent thought they'd have any additional debt paid off within a month.

But 6 percent expected to need at least four months to get square, while 2 percent said six months to a year and 2 percent, more than a year. The potential problem is that such short-term debt could get in the way of addressing long-term if not resolved within three months.

 

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The Child Tax Credit: Don't Make This $6 Billion Mistake

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Everyone wants to pay as little in taxes as possible, and taking advantage of any available tax credit is one of the best ways to lower your tax bill. But before you claim a credit, you need to make sure that you're doing it correctly. Unfortunately, millions of taxpayers find the tax laws so complicated that they make costly mistakes on their tax returns and later find that they owe far more than they expected.

Last year, the federal government paid out an estimated $5.9 billion to $7.1 billion in improper child tax credit payments, according to a recent audit from the U.S. Treasury's inspector general. The audit said that although some taxpayers deliberately claimed the credit fraudulently, millions more simply made mistakes in determining their eligibility for the credit or claimed the wrong amount.

In order to keep you from making the same mistake when you file your 2014 tax return, you need to know exactly how the Child Tax Credit works. Let's take a look at the provisions of the Child Tax Credit to help you figure out whether you're eligible.

What You Need to Know About the Child Tax Credit

On its face, the credit looks as if it couldn't be simpler. It allows you to reduce your tax by $1,000 for every child you have who's 16 or younger at the end of the year. But as with any tax law, things get more complicated in a hurry.

First of all, there are tests to make sure that you're eligible to claim the Child Tax Credit: To qualify, the child must be a U.S. citizen, who has lived with you for more than half of the year, and be an eligible family member, which includes siblings, nieces, nephews and grandchildren. Legally adopted children also qualify. Also, you must provide at least half of the financial support for the child.

Income limitations can also reduce or eliminate the Child Tax Credit. For joint filers, if your adjusted gross income is more than $110,000, then your credit drops by $50 for every $1,000 you make above that amount. The similar phase-out threshold for single filers is $75,000.

A Credit by Any Other Name

But by far the most confusing thing about the Child Tax Credit is that there are actually two credits that parents can claim. The regular Child Tax Credit is what's known as a nonrefundable credit. That means that you can use it to reduce your net tax liability down to zero, but once your tax for a given year is zero, you can't use any remaining credit to get a direct refund from the IRS.

Because so many families were in a position where they couldn't get the full benefit of the Child Tax Credit, newer tax laws implemented the Additional Child Care Tax Credit. This second credit is refundable, meaning that you can actually get a check back from the government to claim its full benefit.

However, the rules for the Additional Child Tax Credit involve their own calculations. The same $1,000-per-child limit applies, but other limits further restrict your ability to claim a refundable credit. Specifically, as long as you have earned income from wages or salaries of more than $3,000, then you can claim up to 15 percent of the amount over $3,000 for your Additional Child Tax Credit. Those who have three or more qualifying children have the additional alternative of coordinating the credit with their Earned Income Tax Credit if it results in a larger portion of their total Child Tax Credits being refundable.

As a result, it's not surprising to discover that even law-abiding taxpayers have trouble navigating the Child Tax Credit correctly. The Inspector General concluded that further oversight from IRS officials is necessary, and given the billions of dollars involved, those efforts would likely be worth the cost. Yet none of those facts should keep you from claiming and receiving every dollar of the Child Tax Credit that you're eligible to receive. Otherwise, you could end up among the ranks of those who incorrectly choose not to get all the credits they're entitled to -- and cost yourself thousands of dollars in the process.

Motley Fool contributor Dan Caplinger loves to cut his tax bill. You can follow him on Twitter @DanCaplinger or on Google Plus. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.

 

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