GM
Drivers of General Motors (GM) vehicles with OnStar can soon get doughnut discounts with their directions to Dunkin' Donuts (DNKN). The automaker's new "AtYourService" program will beam retail coupons to drivers who ask OnStar for directions to participating retailers.
The program rolls out in early 2015 in the U.S. and Canada where OnStar -- GM's subscription service that connects drivers to operators -- annually receives 35 million requests for directions and assistance.
To make coupon connections between drivers and their destinations, OnStar will use the digital coupon providers RetailMeNot and Entertainment Book. Drivers can also book a hotel reservation through OnStar's new partnership with Priceline.com (PCLN).
"We can't think of a more exciting and targeted way to connect with our guests than when they are in their vehicles looking for a Dunkin' Donuts restaurant," said GM vice president Scott Hudler in a statement. "We'll bring value to GM drivers while driving those consumers to our stores with instant incentives."
Losing weight is one the most common new year's resolutions, but the U.S. Food and Drug Administration warned on Monday that popping pills or downing drinks that claim to accelerate the process could have serious consequences.
The FDA said hundreds of purported miracle weight loss products -- typically sold as supplements -- have been found to contain the ingredients of prescription drugs that have been pulled from the market because they are dangerous. Among them is sibutramine, which was in the weight-loss drug Meridia, whose was halted in 2010 after being linked to heart attacks and strokes.
The drug was found in V26 Slimming Coffee and the supplement Slim-K, the FDA said. A list of tainted weight-loss drugs can be found here.
"When the product contains a drug or other ingredient which is not listed as an ingredient we become especially concerned about the safety of the product," said Dr. James P. Smith, acting deputy director in FDA's Office of Drug Evaluation.
It's not always clear what is in these supplements, which come in a variety of forms. And, the FDA warned that many ingredients haven't been properly studied for safety or are outright dangerous.
'Natural,' but Still Tainted
"We've also found weight-loss products marketed as supplements that contain dangerous concoctions of hidden ingredients including active ingredients contained in approved seizure medications, blood pressure medications and antidepressants," Jason Humbert, a senior FDA regulatory manager said.
The FDA said the active ingredient in the depression-treatment Prozac and the diuretic fluoxetine have been found in these products. Using these types of drugs without medical supervision could lead to serious side effects, the FDA warned. In addition, the amount of drugs in the supplements can vary, creating further complications.
The questionable supplements are sold mainly online, can be found in some stores, and tend to be "heavily promoted on social media sites," the FDA said. Most come from overseas and even those called "natural" could be tainted with prescription drugs.
Here is a list of some warning signs the FDA says could indicate a product is tainted with unapproved drugs:
Promises of a quick fix, for example, "lose 10 pounds in one week."
Use of the words "guaranteed" or "scientific breakthrough."
Products marketed in a foreign language.
Products marketed through mass e-mails.
Products marketed as herbal alternatives to an FDA-approved drug or as having effects similar to prescription drugs.
APJim Sanduski, president of Sharp Electronics Marketing Corp. of America, introduces the Sharp Aquos Beyond 4K Ultra HD television Monday.By ANICK JESDANUN
LAS VEGAS -- One of the biggest changes in television this year will be more channels being available online with no separate cable or satellite subscription. But for would-be cord-cutters, watching sports has been the Holy Grail. Until now -- Dish Network (DISH) on Monday unveiled an Internet-only subscription offering that includes ESPN.
Here are the television-related highlights from the International CES gadget show in Las Vegas on Monday. The four-day show formally opens on Tuesday.
Cable TV Channels -- Without the Cable or Satellite Service
Dish will offer a package of channels, including ESPN and CNN, starting at $20 a month. The availability of ESPN as part of the Internet package addresses a major reason people were loath to "cut the cord" -- live sports. NFL games will be blocked on mobile devices, however, because Verizon (VZ) has those rights.
Technology is broadening the consumer viewing opportunity, and they are taking advantage of that.
The company said it isn't worried that its current subscribers will cancel satellite service in favor of the cheaper Internet package. Rather, Dish is hoping to lure those who don't pay for TV channels at all because they find it too expensive.
"A lot of big incumbents don't like change, but everything else is changing around you," says Joe Clayton, Dish's CEO. "Technology is broadening the consumer viewing opportunity, and they are taking advantage of that."
Sony (SNE) also has an Internet television service, PlayStation Vue, expected to debut by the end of March, with channels from Viacom (VIA), Discovery (DISCA), CBS (CBS), Fox (FOXA), NBCUniversal and Scripps. HBO and Showtime already have announced plans for stand-alone Internet offerings, and CBS launched one in October. Those don't include live sports, though.
The Dish offering, dubbed Sling TV, will launch in a few weeks and also include channels from Disney (DIS), Scripps (SNI) and Time Warner's (TWX) Turner. About 20 channels will be available, such as the Disney Channel, ABC Family, the Food Network, HGTV, the Travel Channel, TNT, TBS and the Cartoon Network.
Sling TV isn't to be confused with the SlingTV device that allows viewers to watch TV remotely. Sling Media, the maker of that device, is owned by EchoStar (SATS), which was spun off from Dish in 2008.
The $20 price for Dish's basic package will be far cheaper than what people would pay for a cable or satellite. (Dish said its average monthly bill is about $85.) Dish says it keeps the Internet service cheap by excluding most over-the-air network channels, which can be costly for pay-TV providers as broadcasters demand higher fees. An Internet service also won't require special equipment, such as a satellite and receiver dishes.
For those who want more than the basic channels, Dish will offer various add-ons for $5 each, including extra channels for sports and a package for kids. The catch: Only one person can watch at a time. Family members who want to watch different channels simultaneously will need separate subscriptions.
Meanwhile, Dish is adding Netflix (NFLX) and other video apps to its Hopper set-top boxes, so viewers can watch both traditional channels and online video services through the same device. And anticipating that more Internet video will be shot with an increased resolution known as 4k, Dish is adding 4k capabilities to its Joey devices for multi-room viewing.
Efforts to Boost TV Sales
Now that 4k TV sets have dropped in price, with some models available for less than $1,000, TV makers are looking for ways to make their sets stand out.
Also known as Ultra HD, 4k offers four times the sharpness of today's high-definition video. Sharp is turning to an engineering trick to make its high-end 4k set look even sharper. While TVs typically show colors by mixing red, green and blue subpixels, Sharp's top-of-the-line model will add yellow as a fourth subpixel to improve colors. It then splits each of those subpixels in half, creating a total of eight subpixels in the space of three.
Content isn't yet available to take advantage of those extra subpixels, but Sharp uses some mathematical formulas to fill in the blanks. Sharp says it's not as good as having content with the higher resolution, but it's better than regular 4k.
The Aquos Beyond 4K Ultra HD TV will measure about 80 inches diagonally. It will be out in the second half of the year. The price hasn't been set.
Beyond improving picture quality, TV makers are enabling Internet video access right from the set. Sharp is incorporating Google's (GOOG) Android TV software so that viewers can use a variety of streaming apps, such as Netflix and Hulu, without a separate device. LG has something similar with webOS software developed by smartphone pioneer Palm. And even as Roku sells stand-alone streaming TV devices, the company said it has licensed its software to Haier and Insignia, joining previous partners TCL and Hisense.
Roku said it is also working with Netflix and TCL to enable 4k streaming content.
Online and Traditional TV Coverage
To address the growing availability of online video, TiVo's digital video recorders will soon offer new menu options to bring Internet and traditional TV programs in one place, so past seasons of ongoing shows are easier to find on Netflix or Amazon.com (AMZN). Streaming through TiVo was already possible, but shows weren't as centrally located.
The SlingTV device for viewing television on-the-go is adding additional functionality for in-home use: a YouTube app for streaming video on regular TV sets without needing a separate streaming device. It won't have an app for the Dish's new Sling TV service, though.
NEW YORK -- The ongoing slump in the price of oil is starting to become a headache for the stock market.
On Monday, oil plunged, falling below $50 for the first time in more than five years. The sharp drop prompted a big sell-off, not just in the energy sector, but across the entire stock market.
Stocks had already endured a weak open amid concerns that Greece could exit the euro, adding to worries about the poor outlook for growth in that region. As oil continued to slide, the losses deepened and the Standard & Poor's 500 index (^GPSC) ended the day with its biggest loss in three months.
The price of oil has been falling since last summer amid mounting evidence that the world is oversupplied with the commodity after a surge in U.S. production. After six months of falling prices, investors are now getting jittery that the slump is attributable to more than just the supply glut; it could also be signaling a weakening global economy.
"The lower that oil prices go, the more it reinforces into the market's mind that perhaps this is more of a demand issue than a supply issue," said Burt White, Chief Investment Officer at LPL Financial. That raises questions "about the robustness of this recovery."
The S&P 500 index dropped 37.62 points, or 1.8 percent, to 2,020.58. That was the biggest one-day slump for the index since Oct. 9. The Dow Jones industrial average (^DJI) fell 331.34 points, or 1.9 percent, to 17,501.65. The Nasdaq composite (^IXIC) fell 74.24 points, or 1.6 percent.
Energy stocks led the drop, plunging 4 percent, as the price of oil closed down $2.65 at $50.04 a barrel, after slipping below $50 during trading. But the declines were broad, and even airline stocks, usually a beneficiary of lower oil prices, ended the day lower.
Economic Boon
Most analysts and economists say that, on balance, a decline in oil prices is a boon for the broader economy because it reduces energy costs for industrial companies. Lower gas prices also put more money in the pockets of consumers.
But there are downsides as well. As the price of oil slumps, some companies in the energy industry will go out of business. Not only will that cost jobs in the sector, but it will also cut spending on things like plants and equipment.
Transocean (RIG), a company that provides offshore drilling services to oil companies, was among the biggest decliners in the S&P 500 index on Monday. The company's stock slumped $1.28, or 7.1 percent, to $16.84.
Another area for concern is Europe.
Investors were already worried about the poor growth prospects in the euro region, and the impact that it would have on global growth. Now, they also have to contend with renewed speculation that Greece may exit the euro.
European stock markets slumped and the euro plunged against the dollar on reports that German Chancellor Angela Merkel no longer believes it would be too risky for the 19-member eurozone if Greece dropped out of the currency bloc. Elections in Greece this month could be won by the Syriza party, which wants to renegotiate the terms of the country's international bailout, threatening its place in the euro group.
Falling Euro
The euro currency was already under pressure from expectations that the European Central Bank will expand its monetary stimulus as the region's economy struggles.
On Monday, the currency was trading at $1.1939 after falling to a five-year low of $1.1862.
The outlook for economic growth in Europe and other regions matters to companies in the U.S., as nearly half the sales from S&P 500 companies are generated outside of the U.S.
"Our companies do a lot of business with Europe, we sell a lot of goods and services there," said Scott Wren, senior global equity strategist at the Wells Fargo Investment Institute. "Anything that hurts consumer confidence and business in Europe is going to hurt economic growth."
In U.S. government bond trading, prices rose as investors moved to buy the safest assets. The yield on the benchmark 10-year Treasury note, which falls when prices rise, dropped to 2.04 percent.
Despite the increase in volatility, analysts are still confident in the outlook for growth in the U.S. and believe that the stock market will hand investors positive returns this year. Some even recommend adding to stock holdings when prices fall.
Just one week ago, the S&P 500 index closed at an all-time high of 2,090.57. The energy sector aside, company earnings should remain strong, and the economy is still growing. Last quarter the U.S. economy expanded at an annual rate of 5 percent.
"When you get some pullbacks, we'll definitely be pounding the table recommending that they put some sideline cash to work," said Wells Fargo's Wren.
In metals trading, prices for precious and industrial metals ended mixed. Gold rose $17.80 to $1,204 an ounce, silver rose 45 cents to $16.21 an ounce and copper fell five cents to $2.77 a pound.
What to watch Tuesday:
At 10 a.m., the Institute for Supply Management releases its survey of service-sector businesses for December, and the Commerce Department reports factory orders for November.
Micron Technology (MU) and Sonic (SONC) are scheduled to report quarterly financial results.
When you retire from working, a lot can change in your tax life. Some of the changes will make life easier and cheaper for you in your golden years, while others add a layer of complexity and cost that you may very well not want to deal with in your retirement.
Still, by tackling those changes head-on you can better prepare yourself financially for the inevitability of your new tax situation as a retiree. The sooner you're in control of your retirement tax situation, the more of your time you can spend on the truly important things in life.
The Good
Perhaps the most pleasant tax change awaiting you in retirement is the fact that you stop paying Social Security and Medicare taxes once you stop drawing a paycheck. Indeed, once you're eligible to receive benefits from those programs, you can start getting back a portion of the money you've paid into those systems throughout your working career.
Additionally, your state may offer you some benefits, too. Many states have rules exempting at least some of your Social Security, pension, investment income, or IRA withdrawals from state income taxes -- particularly once you've officially retired. On top of that potential for lower state income tax rates, once you've reached a traditional retirement age, you may be able to get a "homestead exemption" that reduces your property taxes as well.
The Bad
Unfortunately, not every tax change once you stop working is a good one. For one thing, once you no longer draw compensation-style earnings, you stop being eligible to contribute to a qualified tax-deferred retirement plan such as an IRA or 401(k). For much of your working career, any money you funneled into a tax-deductible retirement plan reduced your taxable income (and total tax burden), and the money in those plans compounded tax-deferred, as well.
Not only do you lose the ability to contribute once you start working, but with traditional qualified retirement plans, you start facing required minimum distributions once you reach age 70½. Those mandatory distributions get to be larger portions of your account balance over time. As they get bigger, those distributions could force you to declare income and pay taxes on money you otherwise wouldn't technically need to withdraw or spend.
If that weren't enough, as much as 85 percent of your Social Security benefit itself could be subject to federal income taxes, depending on your filing status and income. At least part of your Social Security is subject to taxes if your "combined income" (half your Social Security benefit plus all your other income -- including tax-exempt interest) is at least:
$0 if you're married filing separately and lived with your spouse at all during the year.
$25,000 if you're single, head of household, qualifying widow(er), or married filing separately and did not live with your spouse at all during the year.
$32,000 if you're married filing jointly.
Just like the taxes you paid on your earned income, taxes on your retirement income have to be paid in a timely manner for you to stay in good graces with the IRS and avoid penalties for underpayment.
The Confusing
Speaking of the need to make timely payments to the IRS: If you had a traditional paycheck, your employer withheld taxes based on your income while you were working. That was to make sure Uncle Sam and your state got their cuts. Once you're retired, the withholding rules get less strict, even though getting your taxes paid on time remains a requirement if you want to avoid a penalty.
To the IRS, a payment is timely if enough is paid through withholding or via sufficient estimated tax payments, paid four times a year, to cover the taxes you owe or place you in a safe harbor for the year. Most 401(k) distributions are subject to mandatory withholdings if they aren't directly rolled over to other qualified plans, and you can have taxes withheld from your pension or annuity payment, Social Security benefit, or IRA distributions as well.
If you choose to go the estimated tax route, then sharpen your pencil and make sure your calculator has batteries -- or that your tax filing software knows of your plans in advance. Estimated taxes need to be paid four times a year, with the first payment due April 15 for money earned from Jan. 1 through March 31. If you tell most tax software packages that you plan to pay estimated taxes, they can pre-fill the forms for you for the upcoming year, based on the "prior year taxes safe harbor rule." Then, you simply need to mail the checks on time.
If you're doing it by hand, the IRS' form and primary worksheet for estimated tax payments is 1040-ES. It's not quite as complicated as running your entire tax bill every quarter, but it can take some effort to do it correctly in order to avoid a penalty for insufficient timely payments.
Going the estimated tax route may be complicated, but one benefit is that if your income doesn't come in evenly throughout the year, you can more easily match your tax payment to when you received that income. For instance, if you have mutual funds that pay you capital gains distributions in December that change from year to year, you can handle that with your 1040-ES by using the "Annualized Income Installment Method."
Be Prepared With Your Taxes and Enjoy Your Retirement More
Once you retire, your primary source of income changes, and the way you get taxed on your income also changes. By understanding those changes, you can find the right balance that keeps money in your pocket throughout the year while still paying enough in a timely manner to keep yourself in Uncle Sam's good graces.
With your taxes under control, you can spend more of your retirement doing the things you enjoy. And isn't that what retirement is really all about?
Chuck Saletta is a Motley Fool contributor. Try any of our Foolish newsletter servicesfree for 30 days.To read about our favorite high-yielding dividend stocks for any investor, check outour free report.
The labor market has collapsed in recent decades, and so has the family life led by moderately educated men that depended on it, according to a new book. Instead, more of the working class are cohabitating and having children out of wedlock much like the poor have done historically.
"If these cohabitating unions were stable and lasted for decades, they would be an effective substitute for marriage, and I would not be concerned but that's not the case," said Andrew Cherlin, a professor of public policy with Johns Hopkins University and author of "Labor's Love Lost."
But as a result, American children are increasingly growing up in unstable homes. "Children born into these unions are exposed to instability as their parent's partners move in and out of households," he said. "These kids experience unstable and complex households as stepchildren or half-children are introduced into the family and as a result they are at risk for having their development harmed by such a great amount of turnover and complexity."
Compared to the high school educated Millennials bypassing marriage for cohabitation, college-educated young adults are continuing to postpone marriage and childbirth to invest in their education and careers. "A college degree is the closest thing we have to a class boundary in the U.S. in terms of family unit," Cherlin said.
Remember Ozzie and Harriet?
It used to be that in blue collar families, the husband worked a factory or construction job, and the wife worked part time or not at all. This tradition peaked in the 1950s and early 1960s when factory jobs were plentiful and paid well, but as factory work disappeared into computer chips or moved overseas, the number of jobs that sustained working class families has dropped and the attitudes toward having a child out of marriage or cohabitating has evolved.
"The marriage prospects of highly educated, high-earning women have improved since the 1980s and the divorce rates have fallen but what makes marriage more rewarding and wealth producing for the educated now make it less attainable and risky for uneducated workers," said Stephanie Coontz, professor with Evergreen State College and author of "Marriage: A History."
Unemployed men and women are largely unattractive as partners.
That's because unemployed men and women are largely unattractive as partners. "In the absence of any payoff or gratification, it's human nature to seek other sources of identity and self of esteem," said Coontz. "For women without a good education and job prospects, it means pursuing romance and having children while for men it might involve sexual conquest."
One solution involves shoring up community colleges and apprenticeship programs that open a path to mid-level jobs like medical technician and computer controlled machine operator. "It won't fully solve the problem because we don't have enough mid-level jobs to go around," Cherlin said. "We can also increase minimum wage." Currently minimum wage in the U.S. is $7.25 an hour.
"For women with earning potential, legally hitching yourself to a man who might lose his job or misuse your resources can leave you worse off then if you stayed single," said Coontz. "This misuse or abuse is more likely with the traumatic collapse of generational expectations and chronic economic insecurity because it creates escape mechanisms such as abuse and infidelity."
Flickr RF/Getty ImagesWould you like to live in Anchorage? Alaska pays residents who live in Alaska and "have the intent to remain an Alaska resident indefinitely."
Moving is expensive. While it is possible to save money on moving costs, wouldn't it be fantastic if you could get paid to move?
Believe it or not, several U.S. municipalities and states will do just that. These areas are often suffering from low population or low economic growth, and they're looking for people like you to help create vibrant communities. These areas often also have low costs of living, meaning you not only get paid to move, but you also save money once you settle in. If you're looking for a new place to call home, why not consider one of these relocation incentives?
1. Detroit, Michigan
You might remember that viral Buzzfeed article about the 23-year-old man who bought a house in Detroit for $500. But you might not know that Detroit is ready to pay you to move in. Live Downtown provides incentives to people who move to downtown Detroit instead of choosing to commute.
These incentives -- tied to employees of Blue Cross Blue Shield of Michigan, Compuware, DTE Energy, Marketing Associates, Quicken Loans or Strategic Staffing Solutions -- include a $20,000 forgivable loan toward a new home and a $2,500 allowance toward your apartment rent. Even more surprising, if you already live in downtown Detroit and work for one of these companies, you may also be eligible to receive Live Downtown benefits to put toward your rent or home.
2. Harmony, Minnesota
What could be better than living in Harmony? This southeastern Minnesota town offers $5,000 to $12,000 to people who build a single-family home through its Residential Home Construction Rebate. The size of your rebate depends upon the estimated market value of the home.
If you decide to move to Harmony, be prepared for those famous Minnesota winters. You should also be ready for life in a small town -- Harmony's population is 1,020. Might you become resident 1,021?
3. Niagara Falls, New York
What could be more romantic -- and adventurous -- than living near Niagara Falls? According to a recent Fusion report, the city of Niagara Falls will pay young people up to $6,984 toward repaying their student loans if they commit to living in the city for two years.
Niagara Falls doesn't offer many employment opportunities, but if you're a freelancer or location-independent worker who wants to take a chunk out of your student loans while living near a beautiful natural landmark, this could be a good option. Look at Live NF for details. Only five people have taken advantage of this offer so far, Fusion reports.
4. Alaska
Alaska is far from the rest of the United States, and it gets quite cold. However, if you want to live in a beautiful state with many unique communities, Alaska is ready to pay you to do so.
The state's Permanent Fund Dividend Division pays residents who both live in Alaska and -- here's the catch -- "have the intent to remain an Alaska resident indefinitely." This isn't the type of move where you drop in, get your cash and move out. You need to be ready to take on the adventure and challenge of Alaska living for the foreseeable future.
In 2014, more than 640,000 Alaska residents received fund payments of $1,884, according to Newsminer. The payment amount varies each year depending on the fund's growth or decline. If this sounds like something that interests you, go west. Then north. Then north some more.
5. Curtis, Nebraska
Receiving funds to relocate is one thing, but what about free land? Would that be enough to convince you to move?
Curtis, Nebraska, offers free land on its Arrowhead Meadows golf course, as well as its Rollin Hills addition, to anyone willing to build a single-family home on the land. As Curtis' website explains, "Our course is believed to be, by popular accord, one of the best public nine-hole courses in the state."
Curtis only has 939 people. However, the community has much to offer, including a volunteer-run movie theater, a fall festival and a historical society. Sometimes the best thing about moving to a small town is having the opportunity to take a leadership role and help the community grow -- and, in this case, getting free land in exchange for your hard work.
If you're ready to start a new chapter in your life, looking for a community where you can play a significant role in its development, or simply want a way to save money while you build up your freelance business or work on a location-independent project, consider moving to one of these five places.
We'd love to hear from you: Do you know of any other towns, cities or states that offer relocation incentives?
Selling your older-model smartphones, laptops and other electronic gadgets is a fairly easy way to bring in extra money (or offset the cost of new devices), but what if those old models are broken? You might be tempted to send them straight to the recycling center, but even broken electronics can bring in a little cash.
Before you recycle, check out these options for selling your gadgets. You won't get as much as you would for like-new items, but the extra cash may be worth it.
In Person
If you'd rather skip the hassle of shipping your broken electronics, try selling to an individual or dropping the item off at a resale kiosk. Here are a few places to find a buyer.
Craigslist. It's free to post ads on Craigslist, but you'll have to deal with meeting prospective buyers and handling the transaction yourself. To increase your chances of having a successful sale, be descriptive in your ad and include photographs. Craigslist allows up to four photos.
Yard sales. If you have other used items to sell, why not hold a high-volume garage sale and get rid of everything in one weekend? If you have a box full of broken electronics, offer one price for the whole lot.
Local resellers. Local electronics repair businesses might be interested in buying your electronics for parts. Try calling a few and asking what they would pay.
EcoATM. If you have a broken or old cellphone, ecoATM can give you cash on the spot. You plug in the information for your phone, ecoATM gives you a value, and you get the cash as soon as you drop the phone in the machine. Use the ecoATM location finder to see if there are any machines in your area.
Online
Selling online often means waiting for a bid to end or taking a trip to the post office, but you'll have more options on the Web. Check out these sites to see how much you could get.
EBay (EBAY). To get an idea of what you might earn from an eBay auction, use the search function to hunt for devices like yours. Just remember, eBay charges a few fees for its service. Use the fee calculator to get an idea of what you'll pay.
BuyMyTronics.com is an electronics reseller willing to buy just about anything from a GPS to an iPad, even the broken stuff. You'll get an estimate of your resale value right away, but you'll have to wait for the cash. Once you ship your item, it's inspected before you are paid, but you can choose to be paid through PayPal to speed things up a bit.
Depstar.com will buy any iPhone, working or not. It will also buy other electronics. The site offers payment through check or PayPal.
Gadget Salvation will take almost any electronic device, even if it's broken.
Gazelle is primarily interested in smartphones and Apple (AAPL) devices. It offers a 30-day price guarantee and accepts broken gadgets. Request a quote by choosing the brand on Gazelle's home page. If you accept the offer, you'll get paid by check, PayPal or Amazon (AMZN) gift card.
Getty Images
It's with some trepidation that I suggest you make these five investing resolutions for 2015. I am well aware of the data indicating that only 8 percent of Americans successfully achieve their New Year's resolutions. Even more disturbingly, 45 percent fail by the end of January. However, there's still hope.
According to columnist Andrea Rains Waggener, an author of books and articles about teaching people how to create their best life, you are more likely to keep resolutions if you understand the goal, why change is needed, and if the impetus for that change comes from you rather than being imposed by others. The investing resolutions I am recommending meet these criteria.
First, you desperately need to change the way you invest. The majority of you are not capturing market returns, which are yours for the taking.
Second, the need to implement these resolutions could not be more apparent. If you want to achieve your goal of retiring at all, much less with dignity, making these changes will be a significant step in the right direction.
Third, the motivation for these changes must come from you. No one can force you to adopt them. However, if you understand the data, the wisdom of doing so will follow.
With that in mind, here are my five easy-to-implement investing resolutions for 2015:
1.Dump Your Broker
With rare exceptions, brokers engage in stock picking, market timing and efforts to select the next "hot" fund manager. The data is overwhelming that these attempts to "beat the market" represent a failed and thoroughly discredited investment strategy. By some estimates, stock investors earned annualized returns 4.5 percentage points below the 12 percent annual return of the S&P 500 index (^GPSC) over the 20-year period from January 1993 through December 2012.
2.Understand the Numbers
I know most people's eyes glaze over when they have to focus on numbers. Here's all you really need to know. Assume you started with a broker 20 years ago. You invested $100,000 and achieved the returns of the average investor, which were 7.5 percent annualized. At the end of the 20-year period, your nest egg had grown to $424,785.
What if, instead of using a broker, you simply purchased an index fund that tracked the S&P 500? Your annualized return would have been 12 percent, and your nest egg would have grown to $964,629 (from which you would have to deduct the low management fees of the index fund).
The difference -- $539,844 -- could well be the deciding factor between running out of money in your "golden years" and enjoying the retirement you and your loved ones deserve.
3.Ignore Predictions and Pundits
Dennis Gartman is probably no worse than most of the pundits who so frequently appear in the financial media. However, his track record in 2014 was shockingly bad. If you followed his advice, you exited stocks while they continued to rise, you bought gold before it declined, and you adjusted your portfolio in anticipation of a bear market that never arrived.
The reality is that no one has the expertise to predict the direction of the markets. The genius of Wall Street lies in its ability to dress up luck and peddle it as skill.
4.Recognize that Financial Media Is Often an Industry Shill
Much of the financial media is a 24-hour infomercial for the securities industry. CNBC is a prime example. It injects a false sense of urgency among investors and encourages short-term thinking, panic selling and emotional trading. The good news is that many of you are getting the message and abandoning the network in droves. In 2014, CNBC posted its worst ratings since 1992 in the critical 25-54 age demographic.
5.Use Only Registered Investment Advisers
If you need assistance managing your investments or help with financial planning, consider limiting the pool of potential advisers to registered investment advisers. Every registered investment advieor is required to be a fiduciary to you and to place your interests above theirs and their employer. The securities trade association has fought tirelessly (and successfully) to prevent brokers from being held to the same standard. They operate under the suitability standard, which permits them to recommend products that, while technically "suitable," may not be in your best interest.
Managing your money is serious business. You want to be able to rely on someone whose primary concern is, and will be, you.
I told you it would be easy! With modest effort, you can have all of these changes in place by the end of the month.
Daniel Solin is the director of investor advocacy for theBAM Allianceand 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."
Thomas Koehler/Photothek via Getty ImagesThomas Gilbert Sr. was found dead in his apartment near the United Nations building in New York City.
NEW YORK -- The son of a hedge fund founder has been arraigned on second-degree murder in the killing of his 70-year-old father.
Thomas Gilbert Jr. also was charged with criminal possession of a weapon and criminal possession of forgery devices Monday night.
Thomas Gilbert Sr. was shot in the head in his Manhattan apartment after the two argued over the son's allowance, police said.
The 30-year-old son went to his parents' home on Manhattan's East Side on Sunday and asked his mother to go out to get him some food, according to police. About 15 minutes later, she got a "bad feeling" and went back, said Robert Boyce, the NYPD's chief of detectives.
Suffolk County District Attorney's office via APThomas Gilbert Jr., after his arrest for criminal contempt charges on Sept. 18 in the town of Southampton, N.Y.
"She found Senior on the floor with a bullet hole in the head," Boyce said. "She also found a gun resting on his chest with his left hand covering it."
But Boyce said it was a staged suicide -- his son was trying to cover up the killing.
Gilbert Jr. was in debt and had argued with his father over his allowance, police said.
The attorney for the younger Gilbert didn't immediately return a call for comment. His next court appearance was set for Friday.
According to the criminal complaint, Gilbert Sr. was found dead lying on the floor near the window of a bedroom. A .40-caliber Glock firearm was loaded with an additional live round, it said.
Authorities found more ammunition at the defendant's apartment, including two magazines loaded with a total of 17 rounds, loose bullets and empty shell casings, the complaint said. A skimmer device and 21 blank credit cards also were found.
In 2011, Gilbert Sr., a graduate of Princeton University and Harvard Business School, founded Wainscott Capital Partners Fund, which has $200 million in assets.
Gilbert Jr. also attended Princeton, graduating in 2009 with a degree in economics. Authorities said he had no recent work history.
Rare Act of Violence
Gilbert Sr. worked on Wall Street for more than 40 years, according to his profile on Wainscott's website, and he previously co-founded Syzygy Therapeutics, a biotech asset acquisition fund. He also was founder and CEO of an online teacher education company called Knowledge Delivery Systems Inc.
Wainscott, which invests in biotechnology and health care stocks, had no comment.
The shooting was a rare act of violence in the Sutton Place neighborhood, a wealthy enclave just north of the United Nations.
Neighbor Pierre Gazarian remembered Gilbert as "incredibly courteous, elegant," and praised his "civility [and] caring."
Gilbert Jr. has a pending criminal case in the town of Southampton, on eastern Long Island.
Gilbert Jr., who has an address in the hamlet of Wainscott, was arrested Sept. 18 on a charge of criminal contempt. Southampton town police say he violated an order of protection issued in Brooklyn in June. Police say he confronted a man named Peter N. Smith at Sagg Main Beach in Sagaponack on Sept. 1.
He has pleaded not guilty and has a Feb. 2 court date scheduled.
WASHINGTON -- U.S. home values rose at a measured pace in November, a sign that demand remains weak as many buyers have been priced out of the market.
Prices increased 5.5 percent in November compared with 12 months earlier, real estate provider CoreLogic (CLGX) said Tuesday. That was up slightly from October's year-over-year increase of 5.4 percent, which was revised downward from a previously reported 6.1 percent.
The housing market faces an affordability crunch. Many potential buyers were sidelined by double-digit home price gains in 2013, which eclipsed average wage growth of roughly 2 percent. That affordability gap caused sales to slide in 2014, restraining price growth in recent months.
CoreLogic projects that price growth will remain mild as the U.S. real estate market continues to recover from the lows reached after the Great Recession. Nationwide, home prices remain 12.9 percent below their April 2006 peak.
Over the next 12 months, CoreLogic expects that home values will rise 4.6 percent. The firm estimates that roughly half the country's homes will match or surpass their pre-recession prices by the middle of 2015.
But "pockets of weakness" are surfacing in some parts of the country, noted Sam Khater, deputy chief economist at CoreLogic.
In three of the states with the highest annualized gains in November -- Texas (8.5 percent), Colorado (8.8 percent) and North Dakota (7.9 percent) -- home values have "been benefiting from the energy boom," Khater said. But as oil prices have more than halved from $107 a barrel in June, home values in these states may see downward pressure, he said.
Prices nudged up just 2.5 percent over the past 12 months in the Washington, D.C., metro area. That slowed growth in surrounding states, with Maryland chalking up a nearly flat 0.1 percent gain and Virginia prices increasingly only 1.8 percent.
Still, home values increased a solid 9 percent in Michigan and 7.6 percent in California.
And falling oil prices correspond with cheaper gasoline, which could free up income for Americans to spend on homes. Economists also expect that solid hiring over the past year should produce stronger wage growth in 2015, which would also help with affordability.
The National Association of Realtors estimates that 2015 sales will total 5.3 million. The trade group forecasts that 4.9 million existing homes were sold in 2014, down 3 percent from 5.1 million in 2013. Analysts say sales of roughly 5.5 million existing homes are common in a healthy real estate market.
"The most startling aspects of the industry and the 2014 legalization of retail marijuana is that several of the state processes seem to have been completed backwards," said Kate Awada, co-founder of Awada Breen Consulting, a cannabis compliance and education specialist. "There has been no testing in the past on the medicinal side; however, it is mandatory for the recreational dispensaries to test every batch or harvest of cannabis by strain prior to sale."
The perception by some is that recreational legality of marijuana has devalued medicinal use, causing a decline in credibility for medical users.
"It is very difficult to be taken seriously due to the majority of consumers using marijuana strictly for novelty, because the law changed," Awada told MainStreet. "Many dispensaries converted their entire inventory from medical to recreational marijuana, which cut back the amount of supply available for medicinal use."
Political Fallout
Another unexpected impact is the politics that emerged in 2014. On a federal level, a coalition of Republican and Democratic lawmakers reportedly challenged the Drug Enforcement Administration, calling to remove the plant-based drug from Schedule I classification under the Controlled Substances Act, which includes heroin and acid."Marijuana law reform became what was perhaps the only bipartisan issue in Congress," said Leslie Bocskor, investment banker and entrepreneur with Electrum Partners. "I was stunned to see just how fast the Colorado data came out pointing to lower crime rates."
According to data released by the Denver Police Department, the city has experienced a 14.6 percent drop in crime since Jan. 1, 2014. Property crime is also down 14 percent, and violent crime has decreased by 2.4 percent.
"The most exciting result is how efficiently many new states are working to put a legal marijuana infrastructure in place," said David Bernstein, CEO with WeedHire.com, which posts marijuana jobs. "This is not an easy process and yet Colorado has embraced being the experiment."
The social experiment of legalizing recreational pot has also resulted in some unexpected setbacks. "Congress trying to thwart the will of the voters in D.C. is pretty awful," Bocskor told MainStreet. Although on Election Day 2014 some 70 percent of voters approved Initiative 71 to legalize pot in the nation's capital, a proposed Congressional spending bill prohibits the use of local or federal funds to decriminalize or legalize it.
The biggest disappointment noted among all experts interviewed was Florida. While Oregon and Alaska experienced victories among voters, Florida suffered from a defeat when legalization failed to pass through a medical marijuana ballot initiative -- even though it received the support of 58 percent voters.
"To lose by such a small margin even after winning more than 50 percent of voter approval is very disappointing," Bernstein said. "The opportunity for jobs creation that the state of Florida missed out on is substantial, and it's sad to see people who really need it go without medicinal marijuana."
Looking for help with debt? You are not alone. Nearly a fifth of Americans with debt told pollsters recently that they expect to die in debt. Although most Americans don't carry a balance on credit cards, about 38 percent of us do. Those carrying a balance in 2013 owed a median (half owed more, half less) of $2,300, according to the Federal Reserve's Survey of Consumer Finances.
Fortunately, there are many excellent, trustworthy credit counseling agencies able to help. "Unfortunately, customers of debt settlement companies often achieve little relief, and far from becoming debt-free, many end up in worse financial condition," Markita Morris-Louis, an attorney for a Philadelphia-based nonprofit that helps consumers with debt and financial problems, wrote in a column in the Delaware County (Pa.) News Network.
To be safe, get financial counseling from a nonprofit agency. Here's where to find a good one:
The National Foundation for Credit Counseling is a national network of agencies that are vetted and accredited by the Council on Accreditation. The foundation's agency locator shows local, regional or national organizations operating near you that provide credit, debt and budget counseling in person, online or by phone. You can get started by submitting information online.
The Association of Independent Consumer Credit Counseling Agencies represents independent nonprofit agencies providing credit counseling and debt help to consumers. The agencies are accredited by the Council on Accreditation.
Other sources of help. "Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs," the Federal Trade Commission says. "Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals."
What to Expect
Trustworthy credit counseling agencies offer help with reducing debt and establishing and maintaining good credit. They can help you set up a budget. With their debt management plans, you may be able to have fees waived and interest rates and monthly payments reduced. But they can't reduce the balance (the total amount) of debt you owe.
ClearPoint Credit Counseling Solutions, a NFCC network member, explains a debt management plan: "It's a systematic, step-by-step, personalized plan for paying off 100 percent of your debt. Participants make a single monthly payment to a consumer credit counseling service such as ClearPoint, and the agency distributes the funds to their creditors." Expect to take three to five years to pay off your debts.
Be Wary
Credit counselors can negotiate with your creditors to reduce your payments by lowering your interest rate or spreading payments over a longer time. But be wary of companies promising to reduce the amount of debt you owe. The CFPB says to distrust debt settlement companies that "typically offer to pay off your debts with lump sum payments that are less than the full amounts you owe. For example, for every $100 of a loan that a creditor agrees to forgive, the debt settlement company will charge you some portion in fees."
If you sign up for a debt management plan, make sure it includes all of your debts, not just some. And be certain that you'll be able to receive regular reports on your accounts. The National Foundation for Credit Counseling explains in detail how to assess debt management plans and credit counselors. When shopping for help managing your debts, here's what to look for:
Free or low-cost counseling. Many nonprofit credit counseling services provide free advice about credit, debt and budgeting. And when it comes to getting help with a debt management plan, USA.Gov says there's no reason for an agency to charge consumers high fees: "The cost of setting up this debt management plan is paid by the creditor, not you."For example, for a debt management plan, GreenPath Debt Solutions, an NFCC member, charges a one-time setup fee of zero to $50 and monthly fees averaging $36.
Straight talk about fees. Don't trust a company that gives you the runaround when you inquire about the cost of its services.
Free information. You should be able to learn all the details you need about an agency and its debt management plans for free. Don't surrender your personal details to get information about a company or its fees.
Free help for serious hardships. Agencies should waive fees if you have a serious financial hardship. "If an organization won't help you because you can't afford to pay, go somewhere else for help," advises USA.gov.
A variety of services. Stay away from businesses that only offer debt services, and avoid companies offering "debt reduction" plans. Trustworthy agencies offer a variety of types of help, including budget, credit and debt counseling; debt management plans, in which you make a single payment to the agency, which pays your creditors and helps you get debts under control and paid off; and possibly counseling on bankruptcy, student loans, housing and mortgages.
Education. Trustworthy nonprofits typically offer free public classes and workshops on financial subjects. "The absence of any true education offered to the general public is a red flag," says the NFCC.
Professionalism. Back away if you're feeling pressure or hear unrealistic promises. Be suspicious of "counselors" who push products, come on like salespeople or offer a one-size-fits-all solution.
A thorough interview. An agency should take an hour or more to get the details of your financial picture, including income and debts. Be prepared to bring copies of bills and credit card and bank statements. Some clients bring along bags of bills and statements they've been afraid to open.
No minimum debt size. You should be able to get help whether your debts are large or small. If a company says it requires a minimum amount of debt to help you, you're in the wrong place.
No black marks. Check out counseling agencies you are considering. Learn if your state attorney general has received complaints about an agency. Locate additional consumer protection resources in your state at USA.gov.
The average apartment price in Manhattan hit a record $1.72 million in 2014, as the New York wealthy and overseas rich continue to seek safety in the New York skyline.
While sales volume is slowing, prices continue to rise in New York as strong demand competes for historically low supply. The average sale price for the year topped the previous peak in 2008, of $1.591 million, according to a report from Douglas Elliman and Miller Samuel Real Estate Appraisers.
For the fourth quarter, average sales prices topped $1.74 million, up 13 percent from the fourth quarter of 2013. The median sales price for the quarter was up 15 percent from a year ago, to $980,000 -- the second highest for a quarter.
The surge in prices shows the high-end real estate boom in New York is still robust as more wealth pours into coveted properties in the top global markets.
The biggest demand and price surge in New York was for new condos, a favorite of overseas buyers. Prices for new development jumped 17 percent over the past year, to an average sales price of $3.156 million, or $1,871 a square foot.
Demand is so strong relative to supply that half of all sales in the quarter were at or above the listing price -- the most in six years, according to the report.
The very top of the market -- the biggest, most expensive apartments -- is performing the best. According to a separate report from Brown Harris Stevens, there were four closings in the fourth quarter with prices above $40 million.
Still, the Manhattan market could face some headwinds in 2015. Inventory, while still well below historical levels, is rapidly rising as more sellers and builders race to cash in on higher prices. Listing inventory was up 20 percent in the fourth quarter compared to a year ago, while inventory for new development was up 103 percent.
As more units in newly built luxury towers come up for sale this year, the rising inventory could put pressure on prices. There were just under 5,000 units on the market in the fourth quarter, up from 4,164 in the fourth quarter of 2013.
Yet Jonathan Miller of Miller Samuel said that inventory for resale properties is a third below long-term averages.
"Rising prices draw in new supply, but that supply is still low," he said.
The stronger dollar could put pressure on overseas buyers, as U.S. real estate becomes more expensive in foreign currency terms, Miller said. But for now, low interest rates and the relatively low prices of New York real estate compared to London, Hong Kong and some other major wealth hubs bode well for prices and demand in 2015.
Are you feeling a little overwhelmed by the post-holiday excess all around you? Have the past several years of your family's success with Santa left your closets, garage, attic and office filled to the rafters? If so, it may be time for some creative clutter-busting strategies. Now, here are eight ways to kick the new year off right by kicking the clutter habit now:
1. Start with Three Questions
Let three questions cut through your material clutter by cutting through the mental clutter that often makes it difficult to part with things. With each item you consider, ask yourself:
Do I love it?
Do I use it?
Will I ever need it?
If your response to each of these questions is "no," then it's much easier to rationalize passing the item along and letting it find a new home. But be ruthlessly honest as you answer each query. Responses that begin with "No, but ... " usually mean that your decluttering is sputtering.
2. Target One Area at a Time
It's easy to feel overwhelmed by the sheer volume of stuff that most of us live with. Deciding to declutter and live happily with less is an achievement in its own right. Instead of diving right in and burning out quickly, focus on one area of your home or office at a time.
Because a little positive reinforcement never hurts, start with the easiest areas first. Declutter a chest of drawers, a hall closet, one kitchen cupboard, or a single drawer in your desk. Then, use that momentum to move on to the next spot. If it helps, make a list of all the clutter hot spots that need attention and check each one off as you calm the chaos.
3. Get Rid of One Item per Day
If taming the clutter in your environment seems like an impossible task, start slowly. Decide to rid yourself of just a single item per day but be determined and relentless.
As the weeks and months pass, you'll begin to notice and enjoy the extra elbow room your efforts have created. Build on your success by accelerating the clutter-busting schedule and letting go of two or three items each day.
4. Adopt a One-In-One-Out Rule
To achieve and maintain a clutter-free home or office, adopt a zero accumulation habit. For every new item that comes into your space, make sure one item goes. Donate or sell usable items and toss what's left. For a more aggressive take on the same idea, try a one-in-two-out rule and watch those prodigious piles and cramped closets slowly disappear.
5. Think Inside the Box
The four-box method is a tried-and-true way to quickly get a handle on large amounts of clutter while still ensuring that each item is consciously considered. To begin, get four large boxes and assign each box one of these labels:
Donate.
Sell.
Trash or recycle.
Keep and relocate.
As you process the stuff all around you, each item must land in a box. The boxes become a macro filing system that prevents you from just moving piles around and helps you sort what's needed and what's not. When you finish organizing one area, empty the boxes according to their label and start over.
6. Do the Dozen
Organize strictly by the numbers and watch the piles shrink fast. Choose a regular time each week or month for a 12-12-12 decluttering project. Find a dozen items in your home or office to donate, a dozen to toss or recycle, and a dozen to return to their proper place. In short order, you've gone through at least 36 items and rid yourself of 24.
7. Impose a Space Limit
As if by magic, the volume of our possessions expands to fit the available space. Before we know it, that larger house we scrimped and saved for is just as cramped as the smaller one we left behind.
To help combat the slow creep of clutter, impose an artificial space limit for problem areas. For example, decide to accumulate no more kitchen utensils than will fit into a single drawer, or only enough makeup for one travel-sized cosmetics bag. Using a finite physical space to limit the seemingly infinite potential of clutter is relatively painless and helps keep those mole hills from becoming mountains.
8. Go Digital
Ah ... if only everything we owned could be digitized and stored in the cloud for easy retrieval when we needed it. It sounds like a minimalist's dream. Thankfully, at least some of the stuff around us qualifies for easy digital or cloud-based storage.
Clear your desk by scanning documents and photos and storing them digitally through a service like Microsoft (MSFT) OneDrive, Google (GOOG) Drive, Evernote or Dropbox. If you don't have access to a scanner, try minimizing some of the paper clutter by photographing documents.
Few things are more refreshing and re-energizing than starting out the new year with less stuff and a sharper focus. And it's relatively simple to do. Cutting the clutter just takes a bit of smart strategy and good old-fashioned perseverance. No matter what method you choose to begin, the biggest step is the first step.
A reader named Lorie Christian wrote to Money Talks News after a recent post about regifting. She suggested an article about how to give to others in ways that don't break the bank. "I get such a good feeling when I give things that others can use and appreciate," she says. "I want to find more ways to give."
Some people donate to charities and causes for the tax write-off. But those of us who don't itemize give, too, even though we're not getting anything for it. On paper, anyway. Scientists say that giving is good for us.
"There are a lot of new data that show if you're generous, and charitable and altruistic, you'll live longer; you'll feel more fulfilled; you'll feel more expressive of who you are as a person; you probably will feel more control and freedom in your life," psychologist Dacher Keltner told "PBS NewsHour."
Note: You should not give either time or money if it endangers your own health and financial well-being. But again, some of the tips below don't cost a thing.
These little coupons, worth 10 cents apiece, show up on products from seven manufacturers, including General Mills (GIS), Hanes (HBI) and Hefty. A dime at a time might not sound like much, but it does add up. Don't have kids? Doesn't matter; Lorie Christian doesn't have kids but saves them for a local school.
2. Use Your Rewards
If you have a rewards credit card or belong to a program like Swagbucks or MyPoints, get creative about the way you use some of your loot. Cash in for a gift card to donate to Big Brothers Big Sisters, or have Amazon deliver some items to the senior center.
3. Blanket Protection
Do you sew or knit? Look for a regional chapter of Project Linus, a nonprofit that provides blankets to ill or traumatized children.
4. Freecycle It
That bike you no longer ride or that trunk full of baby and toddler clothes would be welcomed by folks who can't afford such things. See if there's a local chapter of The Freecycle Network, or put unwanted items up for grabs on the "free" section of Craigslist. For safety's sake, leave the stuff on the porch or in your driveway or offer to meet the new owners in a public place for a drop-off.
5. Trade In Ink Tanks
Recycle your printer cartridges at Staples (SPLS), Office Max (OMX) or Office Depot (ODP), and then use the store credit to buy art supplies to donate to a school or office items for a nonprofit.
6. Share Your Magazines
When you're done reading periodicals, cut off the mailing labels and ask permission to leave them where people gather, such as a laundromat, food bank or social services agency. Or see if the elementary school can use them for educational or crafts purposes.
7. Rehome Those Sporks
Someone can use those sealed packets of plastic utensils you get with takeout orders at work or home. For example, Christian has donated these to schools, community groups and a food pantry.
8. Reshelve Those Books
The American Library Association maintains a resource page on organizations that accept donated books. Any outgrown children's titles might find homes at after-school programs, public health clinics or social service agencies.
9. Coupon for a Better World
CouponMom.com began by Atlanta resident Stephanie Nelson, who exhorted fellow couponers to collect free or nearly free items for food banks. While the deals aren't as great as they once were, "it's still possible to 'buy' free products [with] coupons when items are on sale," Nelson says. Her site matches coupons to sales at hundreds of drugstores, supermarkets and dollar stores across the country. If you can't find local stores there, search for regional coupon bloggers.
10. Pick Up Recyclables
Do you walk for exercise? Take a bag and pick up cans and bottles along the way. Your neighborhood gets a little cleaner, and the money can go to your favorite cause.
11. Donate Pet- or House-Sitting
A Seattle neighbor used to hire me to check in on her cat when she took short vacations; after the first couple of times I asked that she make a donation to charity instead of paying me. Maybe you could do the same. Ashley Jacobs, community manager for the Wise Bread website, took this idea a step further. She started a side business called Sitting for a Cause and donates 50 percent of her profits to animal charities ($2,600 in 2014).
12. Lend Your Phone
Maybe someone in a nursing home or veterans hospital would like to call family/friends but can't afford it. If you have unlimited minutes, talk to a social worker about sharing your phone for an hour at a time.
13. Give New Eyes
Replacing your glasses? Leave the previous pair with a group that will find new users, such as Lions Clubs International or New Eyes. A number of optical chains (including LensCrafters (LUX), Sears Optical (SHLD), Target Optical (TGT), Pearle Vision and Sunglass Hut) also recycle glasses.
Not everyone can do this, but it makes a great impact: A single donation can save up to three people. My life partner recently got his "16 galloneer" certificate. He's my hero.
16. Puzzle Power
Finished with a jigsaw puzzle? Maybe a senior center, after-school program or group home could use it.
17. Animals Can Heal
If you have a friendly pet and a lot of time to dedicate, get certified as a therapy duo. The American Kennel Club has a list of groups that provide training. Pet Partners is a nonprofit focusing on multiple species of therapy animals.
18. Give New Life to Old Coupons
Expired coupons can be used for up to six months by military families overseas. The Krazy Coupon Lady offers donation details on her website.
19. Give Your Time
We can't all be lawyers doing pro bono work or physicians providing free care in impoverished areas. But you might be able to coach youth sports, hand out water at a charity 10K, set up chairs at a poetry slam, help keep a park clean.
20. Shop Clearance Sales
My best buy ever was finding stretchy knit gloves at two pairs for 33 cents. I bought 100 pairs and gave them to a shelter. If you see toys, warm socks, clothing or other items at a price you can afford, donate them.
21. Be a Mentor
That could mean being a Big Brother or Big Sister, but other options exist. Maybe you could invite a teen to job shadow you and see if he or she really has what it takes to be an architect or large-animal veterinarian. Perhaps a youth in your place of worship needs to spend time with adults who care. If you're in a professional organization, offer help/advice to newcomers in the field.
22. Plant a Row for the Hungry
Got a garden? Add a few more plants and donate the surplus to your local food bank, shelter or soup kitchen. The Plant a Row for the Hungry program has helped gardeners in the U.S. donate more than 20 million pounds of produce since 1995.
23. Teach Somebody Something
Put it out in the universe that you're willing to share information on your specialty, whether that's science or cooking or archery.
24. Pass Things Along
Clothing, books, housewares and other items can benefit Goodwill, the Salvation Army, Value Village and other charities. But please make sure it's usable; this is not a free pass to get rid of your worn-out stuff.
25. Help Your Neighbors
Know someone who's physically unable to handle certain chores? Offer to pull the trash can to the curb, shovel the snow, clean leaves from the rain gutters in the spring.
26. Donate Your Hair
Someone who needs a wig might be able to use your lustrous locks. Mary Hoover, who blogs at Mission: to Save, lists several organizations that accept clippings.
27. Give Linens a Second Life
When sheets or towels are too worn-out to use, see if the animal shelter or animal rescue groups can use them.
28. Work with Kids
If you can make a firm commitment, sign up to coach sports, lead a Scouting group or teach a Sunday school class. Don't be offended when they do a background check.
29. Donate Backpacks
Schools and social service organizations can likely find a match for ones in good condition. If a couple of bags languish in your closet, give them another shot at usefulness.
30. Sign Up as an Organ Donor
Some people's religious or personal preferences nix this one, but please consider it if you can. And tell your family, so your wishes will be known if the worst were to happen.
31. Give a Car
Ready to replace your old car? Weigh the few hundred you might get in a trade-in against the good that the vehicle might do for someone else. I have "sold" two old-but-still-usable cars for a dollar each to relatives; not having a vehicle loan can be a nice financial boost. Or donate the car to charity, but use Charity Navigator's tips to make sure you do it right.
32. Donate Gift Card Balances
Just a few bucks left on that Walgreens or Target card? Offer it to a group home, family shelter, animal rescue agency or some other organization.
33. Have Charitable Parties
I've read about birthday bashes whose guests are asked to bring canned food or pet supplies, which are later donated to food banks or animal charities. Worth talking to your children about, since our kids tend to have enough/too many toys.
34. Buy One, Give One
Anytime there's a BOGO sale on spaghetti sauce or socks, keep one and donate the "free" one. Easy enough.
35. Share the Miles
If you've accumulated a lot of frequent-flier miles, consider sharing some with groups such as the Red Cross or Make-a-Wish. Some airlines have their own programs. "Donating Miles to Charity" on About.com offers details.
36. Get Something, Give Something
When things come into your life unexpectedly - gifts, workplace incentives, whatever - consider whether someone else could use it more than you. The $5 Starbucks (SBUX) card your dentist gave you because she was running late would make a nice door prize at the next PTA meeting. That basket of treats sent by a business colleague might be welcomed at the family shelter. You don't have to give away everything, but doing it now and then is a good self-awareness exercise.
If a match is ever found, you'd be saving someone's life.
38. Donate Your Coins
Empty your change into a jar every night. Every so often, wrap and donate the result. If you're on a tight budget, donate just the dimes or just the nickels. It'll take longer, but you'll still be doing some good.
39. Bring Your Own Bag
Some stores will give you a small credit when you bring your own reusable sack. Save those pennies and nickels, and eventually you'll have enough to give away. Again, it's not much, but suppose everyone did it?
40. Do Without
Every so often, skip that fast-food meal/cupcake/beer and put the money you would have spent into a donation jar. A little self-denial is good for us, and the saved cash will be good for someone else.
Those codes can help such causes as Goodwill, the USO and St. Jude Children's Research Hospital. Don't drink soda? Rally friends and relatives to collect them and volunteer to enter the codes yourself.
42. Get Creative
I just read about a 17-year-old girl who raises reindeer as a 4-H project. She offers holiday photos with the critters,and in 2014 raised $700 for homeless youths. You have something to give, too. Figure out what that is, and give it.
Jupiterimages
There are different ways to rank charities. One is to look at the percentage of the money they raise that actually goes to their programs. That's what the Tampa Bay Times, working with the Center for Investigative Reporting, did in an annual roundup called America's Worst Charities, "ranked by money blown on soliciting costs."
And the numbers, taken alone, are impressive. At the top of the list are organizations that raise tens of millions and spend nearly all of it on fundraising. The few charities that responded to DailyFinance requests for comments said that the system of getting money from donors to charities is broken and that the reporters made some questionable assumptions about what the organizations do and how they operate.
"We focused on these charities because relying heavily on for-profit fundraisers is one of the most inefficient ways to collect donations," the two news organizations wrote. "Regulators and industry experts widely consider the practice a red flag for bad charities."
And in some cases, the numbers might raise eyebrows, as the top five groups on the list showed:
The Kids Wish Network, which brought in $137.9 million according to 10 years of federal tax files, paid 84 percent to fundraisers and spent only 2.5 percent on direct cash aid.
Cancer Fund of America raised $86.8 million, paid $75.4 million to for-profit solicitors, and put 1 percent into direct cash aid.
Children's Wish Foundation International raised $92.7 million, spent two-thirds on solicitors, and put 10.6 percent into direct aid.
Roughly 87 percent of the $53.8 million that the Firefighters Charitable Foundation raised went to solicitation costs, while only 7.4 percent became cash aid.
The International Union of Police Associations, AFL-CIO dropped more than three quarters of its $66.6 million over 10 years on solicitation, compared to 0.5 percent on cash aid.
What's the Real Goal?
None of these organizations responded to requests from DailyFinance for comment. But others that did were angry about the story and the approach the reporters took. National Veterans Services Fund (formerly Vietnam Veterans Agent Orange Victims), raised $70.2 million, paying almost 53 percent to professional fundraisers and 7.8 percent into direct financial aid. Executive Director Phil Kraft says that the organization provides some one-time cash assistance to veterans who are referred to the organization from "VA caseworkers, social workers from state and local municipalities and veteran agencies."
But the fund is primarily focused on providing services, including a national hotline for veterans and their families, a repository of free information, partnerships that get services and equipment at reduced or no cost to needy families and peer counselors. To focus on cash aid is to potentially misconstrue the group.
"We do not have the resources, staff or expertise to conduct fundraising on our own," Kraft wrote about the fund, which has one full-time and three part-time employees, in addition to Kraft, whose 2011 salary was $118,800. "A small percentage of something is better than 100 percent of nothing. To blame a charity for the price charged by our fundraisers is like blaming a driver for the price of gas. I suppose that a driver could make his own gas from donated crude oil, and have a staff of volunteers to help refine it, and more volunteers to transport it to volunteer-run gas stations, but it probably wouldn't work. "
The Committee for Missing Children spent $23.5 million on fundraisers to bring in $26.6 million , with only 0.8 percent of funds going to direct cash aid. CEO David Thelen, his wife and a director in Germany received a combined $144,851 in 2011 as the three paid employees, and the German director has just been put on a volunteer basis.
Thelen agrees that telemarketing is an inefficient way to raise money, but for smaller and less popular charities, it may be the only choice. His organization has had no luck with getting grants and "addressing child abduction is not something corporate America will step up and support." Unlike the better-known National Center for Missing and Exploited Children, which receives funding from the federal government, the Committee for Missing Children has no such income streams and doesn't have the high profile to help attract donors. That leaves expensive methods like telemarketing and direct mail.
Is Anyone Getting Rich?
And it's not as though the telemarketers are pocketing vast sums, because fielding calls is expensive. Thelen was told by his telemarketer -- which actually filed for bankruptcy last year -- that its profit margin was 3 percent.
He was also angry that the article focused on cash paid out, rather than services offered. "My job is to counsel parents and lead them through a broken system to get their children back home," he said, which can involve taking calls at 2 a.m. "Where do you put that in a budget?"
Not all the charities on the list are innocent organizations, as some note. "Many of the charities cited in the article display blatant misuse of funds, such as exorbitant salaries, creating related companies for the financial benefit of the founders, etc.," Kristina Vincent, membership and benefits administrator for the American Association of State Troopers, told DailyFinance.
The group spent $38.6 million to bring in $48.1 million, and 8.9 percent went to direct cash aid. But Vincent said that the organization runs lean. "All officers and board members of AAST are unpaid volunteers," she wrote. "AAST has no company vehicles. Our small staff and our board of directors work hard to provide quality benefits and excellent customer service, and we are appalled to be lumped into a category with charities who, according to the Worst Charities article, mishandle funds."
People who donate money to charities naturally have an interest in seeing the funds used as wisely as possible. But it takes research, and a harsh dose of reality, to understand whether a charity is "bad," or if it's struggling against significant odds to do at least some good.
Michael S. Williamson/The Washington Post via Getty ImagesBy Abinaya Vijayaraghavan
United States Steel (X) said it would temporarily idle its pipe manufacturing plant in Lorain, Ohio, and lay off 614 workers, largely due to weak demand from the oil industry.
U.S. Steel's shares were down nearly 2 percent at $24.88 in early afternoon trading Tuesday.
A number of North American oil and gas companies have cut capital spending plans following a sharp fall in oil prices, which have more than halved since mid-2014.
Canada's Crescent Point Energy (CPG), for example, said Tuesday it would cut its spending by about 28 percent in 2015.
Oil service companies Schlumberger (SLB) and Civeo (CVEO) have also laid off workers as oil and gas producers cut costs.
The layoffs at U.S. Steel will begin March 8, a spokeswoman said. The Wall Street Journal reported the impending layoffs earlier Tuesday.
-With additional reporting by Ankit Ajmera in Bangalore, India.
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If you live in Illinois, saving for retirement is no longer just a good idea, it's automatic.
Beginning in 2017, Illinois residents who don't have a retirement plan at work will be automatically enrolled in individual retirement accounts and have 3 percent of their paychecks funneled into them. Employers with at least 25 employees must offer the Secure Choice program, and workers must opt out if they don't want to participate.
Administrative costs will be borne by savers, who will be charged up to 0.75 percent of their balances.
The state plan, similar to MyRA that President Obama has pushed nationally, is aimed at helping workers at smaller companies who don't have access to employer-based retirement plans because of administrative and cost burdens. Lack of access to retirement accounts is considered a prime reason Americans often don't save enough money to retire.
National Woes
The average working household has "virtually no retirement savings," according to the National Institute on Retirement Security. More than 38 million working-age households (45 percent) do not have a 401(k) or IRA. And the median retirement savings balance is just $3,000 for all working-age households and $12,000 for near-retirement households.
Illinois State Sen. Daniel Biss said the plan is meant to help workers "save for retirement with the benefit of a simple product for a low fee."
While a lot of us enjoy tea for the potential health benefits, did you know that used teabags can be good for your budget, too? Here are a few handy ways to reuse these bags to save, long after your cup is empty!
To soothe minor skin irritations like sunburns, bruises, mosquito bites and cold sores, take a cool damp teabag and press it on the affected area to relieve inflammation and promote healing. You can also use this trick to reduce dark circles and rejuvenate tired, puffy eyes.
Teabags can make great deodorizers, as well. To keep your footwear scent-free, tuck a dried teabag in each shoe overnight to absorb any odors. If you want to freshen up your fridge, there's no need to buy a box of baking soda to keep the smell away. Just place a few teabags into a bowl, and it will do the job.
While you're in the kitchen, you can use a few bags to help remove baked-on grease from your dishes. Just soak the dishes overnight with a few brewed teabags and they'll be much easier to clean the next morning.
Lastly, a few teabags can go a long way when it comes to keeping bugs and rodents out of your home. Mint flavors tend to work best. Simply place them into cupboards, pantries and other problem areas. For extra protection, add a few drops of peppermint essential oil to each bag. Mice and bugs hate peppermint.
So don't throw those teabags away. Give these tips a try and you'll see that while the flavor may be in the tea, the savings are in the bag.
While a lot of us enjoy tea for the potential health benefits, did you know that used teabags can be good for your budget, too? Here are a few handy ways to reuse these bags to save, long after your cup is empty!
