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Payrolls Rise Solidly, Jobless Rate Drops, but So Do Wages

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Job Seekers Attend A Princeton Area Chamber of Commerce Career Fair Ahead Of Initial Jobless Claims
Bloomberg via Getty Images
By Lucia Mutikani

WASHINGTON -- U.S. job growth increased briskly in December and the jobless rate dropped to a 6½-year low, but wages slipped in the latest sign a tightening labor market has yet to give much of a boost to workers.

Nonfarm payrolls increased 252,000 last month after an upwardly revised 353,000 jump in November, the Labor Department said Friday. The unemployment rate fell 0.2 percentage point to 5.6 percent, partly because people left the labor force.

But a 5-cent drop in average hourly earnings, which nearly erased gains seen in November, took some shine off the otherwise mostly upbeat report. Over the past year, earnings rose only 1.7 percent, the weakest 12-month showing since October 2012.

We are once again looking at a situation where people are getting hired but we are not seeing the wage increases the Fed would like to see.

Economists said the data buttressed the case for the Federal Reserve to take a go-slow approach to raising interest rates.

"We are once again looking at a situation where people are getting hired but we are not seeing the wage increases the Fed would like to see," said Kate Warne, investment strategist at Edwards Jones in St. Louis. "That keeps the Fed on hold."

U.S. stocks opened flat before turning lower, while prices for U.S. debt rose as traders pushed back their expectations for when the U.S. central bank would raise rates.

Some economists said the data should keep the Fed, which has kept overnight borrowing costs near zero since December 2008, on track for a rate hike around mid-year. Futures markets continued to point to a rate increase in September, although chances policymakers would move later rose.

"This is probably a good enough number to allow the Fed to stay on course in terms of adjusting policy," said Peter Cecchini, managing director and chief market strategist at Cantor Fitzgerald in New York.

December marked the 11th straight month of payroll increases above 200,000, the longest stretch since 1994. For last year as a whole, the economy generated 2.95 million new jobs, the strongest showing for any year since 1999.

Overall, the data suggested the economy was positioned for solid growth this year, despite troubling weakness in some economies overseas.

Adding to the report's generally strong tenor, a total of 50,000 more jobs were created in October and November than previously thought.

Economists were struck by the weakness in wages given the tightening jobs market. The unemployment rate dropped by more than a percentage point last year, and is now near territory Fed officials consider commensurate with full employment.

The drop in wages in December was widespread across industries, but most acute in the mining and logging sector.

Christoph Balz, an economist at Commerzbank, said soft earnings were a hangover from the 2007-2009 recession. "Firms [were] unable to reduce wages during the recession, and they must now work off a stockpile of pent-up wage cuts."

Even so, economists expect to see a spark soon as the labor market continues to tighten.

"The wage story should look much better at the end of 2015," said Dan Greenhaus, chief strategist at BTIG in New York.

Most of the measures tracked by Fed Chair Janet Yellen to gauge the amount of slack in the labor market continued to point to tightening conditions in December.

A broad measure of joblessness that includes people who want to work but have given up searching and those working part-time because they can't find full-time employment, fell two-tenths of a percentage point to 11.2 percent, the lowest since September 2008.

The ranks of the long-term unemployed continued to shrink in December. Almost two-thirds of the decline in the level of unemployment last year was among the long-term unemployed.

But the labor force participation rate, the percentage of the working age population who either have a job or are looking for one, dropped back to the 36-year low of 62.7 percent reached in September.

Job gains in December were dispersed across all sectors. Construction employment rose by 48,000, the largest gain since January, while manufacturers added 17,000.

Government employment increased 12,000.

The average work week was steady at a 6½-year high of 34.6 hours.

-With additional reporting by Ryan Vlastelica and Chuck Mikolajczak in New York.

 

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Plunging Oil Prices Send Some Things Up, Others Down

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Oil Well Pumpjack in Motion With Workers
Roger Milley
Crude oil prices have been dropping for months as though they were taking an express train through a bottomless pit. There are multiple reasons for the plummet, as DailyFinance has previously reported, and, of course, there is a bottom -- somewhere.

Gas at the pump is as cheap as it's been in years, which makes consumers happy. But there are many other potential implications of the slide, and not all of them are so cheery.

Higher Gas Prices

Yes, gas prices have dropped sharply, but don't assume they will necessarily stay that way. Lower costs for consumers have made some lawmakers eye higher gas taxes, according to Reuters. That includes Democrats and Republicans. Although federal officials are worried about increasing gas prices for fear of angering voters, there is the thought that as things get cheery at gas stations, people might not notice some extra tithing. Expect states to also consider whether they could fill government coffers. Pennsylvania already did with a recent hike in gas taxes, according to The Mercury, although that had been in the works for a while.

Some Housing Prices Could Drop

Oil is a big source of private, and not just public, income in some parts of the country. Prior to the global price drop, times were good, and the money was rolling in. If prices stay low for an extended period, that will hit the wealth of many and potentially cause a decline in home values in areas with a high concentration of energy jobs, according to Fortune. Such a decline would take until late 2015 or sometime into 2016 to become obvious, but it would be a blow to the chance of regaining real estate values after the Great Recession in those areas.

Tar Sand Oil Could Take a Beating

One reason pulling the oil out of tar sands in areas of Canada has been big business was the overall cost of oil. When oil is $100 a barrel, companies can invest a lot and still make a tidy profit. But the technology and work needed requires oil prices of at least $65 to $75 per barrel, according to USA Today. Long term, the areas that had been extracting oil from tar sands could hit a major local recession.

Keystone Pipeline Not So Sure

The Keystone Pipeline, already a point of contention between a Republican Congress and President Obama, has been touted as a job creator. There's room for debate as to the number and duration of jobs, but what isn't in question is why the pipeline would be built: to carry tar sand oil from Canada to ports in the southern U.S. If the tar sand oil is too expensive to produce over a long period, what good would a pipeline do? Obama's promised veto of a bill to start the new Keystone pipeline, as AOL reported, might be the least of its problems.

Many Countries Would Be Hurt

Whether you're talking of the Middle East, Russia or parts of Africa or South America, oil is important business. The flow of crude helps keep the flow of government revenue coming in. But as the BBC has reported, data from Deutsche Bank and the International Monetary Fund shows that 11 countries depend on particular crude prices to balance their budgets. That ranges from a low of $77 for Qatar to $184 in Libya, which has a lot of rebuilding left after the recent civil war. Russia, which has seen the value of the ruble take a nosedive, needs $105. Venezuela must have $118 a barrel to keep the lights on and voters happy. Economic problems in so many places could become a major destabilizing force in the world.

Stock Prices Face a Challenge

For many investors, oil is a proxy for economic health. Prices drive up because there's more commerce. When they drop, it's the opposite. According to the Associated Press, low oil prices have already had an impact on the stock market. If crude continues to be cheap, equity investing could turn ugly.

It's a Good Day for Fracking

For all the bad news, those involved with hydraulic fracturing -- otherwise known as fracking -- will find themselves in a strong position, even as states like New York try to end the practice. But fracking is one of the reasons that oil prices are currently low, as it has helped significantly increase production. All those with concerns about any possible link to unusual seismic activity or problems with groundwater may find that dollars trump the ecology.

 

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How to Appeal Your Property Taxes in 3 Quick Steps

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How to Appeal Property Taxes

By Sandra Block

Home values are up, and that may mean your property taxes have gone up, too. But what if you believe they're too high? You may have grounds for an appeal, and in most cases, you can do it yourself.
  1. Look for errors that could be unfairly inflating the value of your home. Ask your local assessor's office for a property record card, which lists the factors used to come up with your assessment. This information may be available online. Fixing obvious mistakes such as incorrect square footage or the wrong number of bathrooms could lower your property value.
  2. Check out tax bills for similar properties in your neighborhood. This is public information and may also be available online. Compare your home with others in your tax classification, which usually lumps together homes of similar size and age. If your assessment is much higher than the assessment for other homes in your group, you could have a good shot at an appeal.
  3. Make sure you've been given all of the tax breaks you deserve. Most states offer exemptions, lower tax rates or reduced assessment ratios for certain taxpayers, such as primary homeowners, senior citizens or veterans. Check your state's tax department site for more information. You can also find more information on appealing a property tax bill at NTU.org, the site for the National Taxpayers Union.

 

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14 Things Not to Buy at Warehouse Clubs

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Worst Buys at Warehouse Clubs

By Cameron Huddleston

Shopping at warehouse clubs, such as Costco (COST), Sam's Club (WMT) and BJ's Wholesale Club, is a great way to save money. They have good per-unit prices on nearly everything they sell. However, consumers often make the mistake of assuming they're getting the best price at a warehouse club or of buying things they don't need just because the price is good.

In general, it's best to avoid bulk purchases of perishable items at warehouse clubs, no matter how good the price, if there aren't enough people in your household to consume them quickly. Plus, you should always shop with a list to avoid impulse purchases, which can be whoppers at warehouse clubs.

When making your warehouse-club shopping list, keep these 14 things off it. You can find them cheaper elsewhere, or you won't reap value by buying them in bulk.

 

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3 Predictions for Automakers in 2015

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FordThe arrival of Ford's new F-150 pickup could touch off a price war by rivals.
It's hard to predict the future. But sometimes, it's not too hard to see certain trends emerging. Looking at the auto business as 2015 begins, this might be one of those times. Here are three stories that look likely to unfold this year.

Prediction 1: U.S. Auto Sales Will Remain Strong

This one is almost a no-brainer -- almost in the sense that nearly everyone in the auto industry seems to think that the good times for U.S. auto sales will continue rolling in 2015.

But some pundits outside of the industry have forecast doom and gloom, with talk of bubbles fueled by a rise in subprime auto lending -- yes, that scary word.

Risky lending practices might be a concern, but car loans turn out not to be that risky for a bank -- after all, a car is much easier to repossess and sell than a house.

But more important, there's no evidence that last year's strong sales results were a bubble. In fact, if you look at the annual results going back to the beginning of the millennium, 2014's high-seeming level of auto sales doesn't look so much like a bubble as it does a return to pre-recession normal.





Given the still-improving economic indicators in the U.S. -- not to mention the big drop in the price of gasoline -- it should be no surprise to see U.S. auto sales maintain, or even improve on, the very healthy pace we saw in 2014.

Prediction 2: Get Ready for a Pickup-Truck Price War

The key model in America's best-selling vehicle line -- Ford's (F) F-150 pickup -- is all-new for 2015. It has a host of new features, including its much-talked-about aluminum body panels, and so far the new trucks have been selling almost as soon as they arrive at dealer lots.

One of Detroit's most hallowed commandments is: Thou shalt mess with thy competitors' new-product launches.

Early demand for the new trucks looks to be very strong. So Ford should be able to roll back its incentives and count its profits in 2015, right?

Not so fast. One of Detroit's most hallowed commandments is: Thou shalt mess with thy competitors' new-product launches.

The 2015 F-150 is the newest entry in the segment, and typically, that means it should see the strongest demand. But in this case, rivals aren't that far behind: General Motors' (GM) Chevy Silverado and GMC Sierra were all-new just last year, and Fiat Chrysler's (FCAU) well-reviewed Ram was refreshed just a year earlier.

That means that both GM and Fiat Chrysler are in a great position to compete aggressively with the new Ford. And history suggests that they will.

Shortly after GM launched its new pickups, we saw Ford and Chrysler step up their advertising and boost their incentives to try to steal some of the new trucks' thunder. It worked: Early sales of the new GM trucks were subdued, and GM ended up having to boost its incentives to match rival offers.

Another of Detroit's commandments is: What goes around, comes around. Expect GM (and Fiat Chrysler) to do its very best to undermine the early sales momentum of Ford's new truck. That may give Ford executives headaches, but it'll be great for consumers.

Prediction 3: Sales of Some Plug-In Models Will Stall -- but Not All

The big drop in gas prices comes at a tough time for those hoping for a greener automotive future. More and more plug-in hybrids and fully electric cars are coming to market, but they still come with price premiums and other compromises.

With gas closer to $2 than $4 (or even below $2 in some places), those premiums and compromises become harder for buyers to swallow. Suddenly, a midsize sedan that gets 30 miles per gallon seems completely reasonable, and a plug-in alternative seems like an overpriced hassle.

That has already started to hurt sales: Sales of Ford's Fusion hybrid (including the plug-in Energi version) fell 16 percent in the fourth quarter of 2014, while Toyota's (TM) vaunted Prius lineup saw sales drop 11 percent for the year.

But not all electric cars are expected to suffer: Analysts think that Tesla Motors' (TSLA) Model S will continue to do well no matter what happens to gas prices -- and Tesla could even see a boost late in the year, when its Model X SUV is expected to begin shipping.

Motley Fool contributor John Rosevear owns shares of Ford and General Motors. The Motley Fool recommends Ford, General Motors and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. Find out the easy way for investors to ride the new mega-trend in the automotive industry in our free report.​

 

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4 Reasons to Ease Into Retirement - and 4 Paths to Take

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BU007348Photodisc Green(Royalty-free)Smiling Man with HeadsetDoug MenuezThis image may also be referenced as:52209
Getty Images
By Kathryn Tuggle

If you're thinking of retiring but don't want to make a complete break from the workforce, you're not alone. More Americans are transitioning slowly into retirement by working part time, volunteering and developing other businesses. According to the Merrill Lynch "Work in Retirement: Myths and Motivations" study, 47 percent of today's retirees say they either have worked or plan to work during retirement. A whopping 72 percent of pre-retirees over 50 say they actually want to keep working after they retire.

Let's start with a look at four reasons people work well into their golden years.

Reason 1. A Mission-Driven Life

A lot of people who spent their entire lives focused on creating wealth have decided in their retirement to work for a mission-driven organization, says Jason Hanold, managing partner at executive search firm Hanold Associates. "They want to do something meaningful," Hanold says. "Some of them say, 'I have been doing well with this company, but the work isn't resonating with me. I'm going to do something in retirement that speaks to my core.'"

Today's retirees are "looking more holistically at life," Hanold says, making the decision that they want to love what they do. "There are top CEOs and COOs who have gone to work for charities they support. They still have income, they still have a job, and they're doing what they love," he says. "At a certain point in your life, your work becomes less about providing for your family and more about finding meaning in the every day."

Reason 2: Financial Needs

A lot of people retiring now either lost a good bit in 2008 or haven't been able to save enough over the course of their lifetime to retire at 65, Hanold says. "There are a lot of mitigating factors. Some people don't have the right portfolio, and they may have already extended their ideal retirement ages. They don't have a choice but to keep working," he says.

Unfortunately, too many retirees fail to realize how much money they'll need for retirement until the time is upon them, says Jayne Mattson, senior vice president of Keystone Associates. "Too many people who retire underestimate not only the financial impact on their lives, but the emotional aspect as well," she says.

Reason 3: A Desire to Try Something Different

"Some people who retire early go to work in a completely different field," Hanold says. "They don't call it retirement, but it is definitely a retirement from their current vocation."

When people hit 50, they may look around at their current job and say, "I don't want to do this for another 20 years." When that happens, instead of retirement, they find themselves in a "next chapter."
"The stories of the general counsel deciding he wants to be a florist or the CMO deciding she wants to become a ski instructor are not uncommon," he says. "They're earning money, and it works for them. It's a second career."

Reason 4: A Generational Shift

In the past 15 years, the goal of "doing nothing in retirement" has changed drastically, says Peter Eckerline, managing director of wealth management at Merrill Lynch. "There's not a real cookie-cutter approach anymore," he says. "I have a lot of clients working in retirement, doing some work in retirement or taking classes. The health and vitality of older people has increased dramatically. I know some 70-year-olds running marathons. They don't get to be a certain age and say, 'Hey I'm ready to check out.'"

Today, more retirees see the benefits in staying active mentally and physically, Hanold says. "With your brain, it's use it or lose it. Some people are driven by a sense of self preservation. They know they need to be intellectually engaged if they're going to be mentally agile as they grow older."
What are they doing?

Now let's consider what these un-retirees are doing.

Path 1: Working with Nonprofits

"Years ago people only thought about going to sit on the beach and play golf, but I don't see that with many of my clients," Eckerline says. "More want to work than don't, and a lot of them are staying involved with nonprofits, churches and charities. I talk to them and they say, 'I am busier now than I ever have been.'"

For some, their nonprofit work is unpaid, but for others a small paycheck may be involved. "It's different for everyone. Some people feel more secure if they are doing something that allows them to not dip into their savings as much. They may be making just enough to cover a little splurging or some trips," he says.

Path 2: Starting Their Own Ventures

"I hear about it now more than ever," Eckerline says of retirees starting their own businesses. "People love it because it's not as much of a grind." Many entrepreneurial retirees choose to start a business they're passionate about, such as a restaurant or yoga studio, he says.

Path 3: Staying in Familiar Industries, with Fewer Hours

"Making a 180-degree change is harder for some people than others. Many people choose to stay in an industry that they know and understand, where they have experience and skills they can pass on," Eckerline says.

Once people look at their complete financial picture, they can determine how much they're able to scale back their hours. "Everyone has different ideas of how retirement goes," he says. "For a lot of them, part-time work will be a part of it."

Path 4: Becoming Consultants

Consulting can be a great choice for retirees who still want to work at something they enjoy, with a freedom of schedule they've never had before, describes Kurt Fillmore, president of Wealth Trac Financial Group. "They can pretty much be their own boss and create value for a company in a different way. A lot of times, it's really rewarding for people to do this if they have the type of career where they can make the transition."

Most retirees will opt to do something "where they at least know the road map." "People want to do something that still challenges them. With consulting they can say, 'I'm in the same field, but now I have new responsibilities where I am in charge,'" Fillmore says.

 

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Week's Winners and Losers: Sirius Rocks, Wet Seal Shocks

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Wet Seal
thinkretail/FlickrUpset employees used store windows to express how they feel about Wet Seal's closures.
There were plenty of winners and losers this week, with the only game in town when it comes to satellite radio announcing a strong close to 2014 and a fading apparel retailer shutting down hundreds of stores.

DISH Network (DISH) -- Winner

The problem with kissing fat cable bills goodbye is giving up live sports programming, but that may no longer be an issue. DISH Network announced Sling TV, a streaming television service that offers a handful of channels -- including CNN, Disney Channel and Cartoon Network -- for $20 a month.

More important for sports buffs, Sling TV also comes with ESPN, ESPN2 and the NBA-happy TNT. It remains to be seen if a streaming service of live TV gains traction. Folks on limited data plans will go through a lot of bandwidth, and speedy connections will be necessary for high quality. However, it's the boldest step by a relevant provider to break up the silly bundling of channels that leads to folks paying for a ton of content that they have no interest in watching.

Sony (SNE) -- Loser

The annual International CES expo is typically more about winners in the realm of consumer electronics than losers, but it's hard not to knock Sony for introducing a new Walkman. The portable media player has plenty of slick features, including 128 gigs of storage and hi-resolution audio.

Unfortunately for the Japanese conglomerate, the Walkman NW-ZX2 is priced at a laughable $1,120. Sony has struggled to move gadgetry at much lower price points. It's going to be an uphill challenge to convince consumers that portable media players are worth four figures in any configuration.

Sirius XM Radio (SIRI) -- Winner

Satellite radio just keeps growing in popularity. Sirius XM announced on Wednesday that it closed out the year with 27.3 million subscribers, 1.75 million more than it had when the year began. Back in October it was only targeting 1.6 million net additions for all of 2014. Sirius XM is also pointing out that it will exceed its revenue and cash flow forecasts when it reports quarterly results in a few weeks.

Sirius XM initiated guidance for 2015. Some investors may be disappointed to see the premium audio leader only projecting 1.2 million net subscriber additions for the entire year, but this is a company that has historically been conservative with its outlooks. A year ago at this time it initiated guidance calling for just 1.25 million net new accounts through 2014.

Wet Seal (WTSL) -- Loser

With the peak holiday sales out of the way, some retailers aren't doing as well as others. Wet Seal announced on Wednesday that it would be closing nearly two-thirds of its stores. Shuttering 338 stores -- leaving just 173 locations open -- is a big retreat. With the stock trading for pocket change and the fading apparel chain possibly heading for bankruptcy protection, it's not a safe time to step up as an opportunistic investor in Wet Seal.

However, the real reason Wet Seal makes the cut as a loser this week is because some of the thousands of employees being let go didn't go down without a fight. Several stores let shoppers know that they would be closing down ahead of Wet Seal's announcement, putting up poster boards against store windows to air their grievances against the company.

Photos of the gripes posted at stores went viral on Instagram, Imgur, Reddit and other sites. From Birmingham to Seattle to several other stores, Wet Seal's blemished image darkened.

Ford (F) -- Winner

The automotive industry has been revving up in recent years, but will more efficient cars and improving mass transit and auto-sharing platforms eat into future sales? In a welcome show of confidence, Ford hiked its quarterly dividend by 20 percent to $0.15 a share on Thursday.

The move pushes Ford's yield to a healthy 3.9 percent, but it also conveys a positive message that Ford is comfortable enough about its near future to return more of its money to shareholders.

Motley Fool contributor Rick Munarriz owns shares of Ford. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford and Sirius XM Radio. Try any of our Foolish newsletter services free for 30 days. Want to make 2015 a winning investment year? Check out The Motley Fool's one great stock to buy for 2015 and beyond.

 

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JPMorgan to Pay $500 Million to Settle Bear Stearns Lawsuit

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JP Morgan Bear Stearns
Mark Lennihan/AP
By Jonathan Stempel

NEW YORK -- JPMorgan Chase (JPM) has agreed in principle to settle class action litigation arising from Bear Stearns' sale of $17.58 billion of mortgage securities that proved defective during the recent U.S. housing and financial crises.

The largest U.S. bank, which bought Bear in 2008, will pay roughly $500 million to investors led by a group of pension funds, a person familiar with the matter said Friday. The person requested anonymity because the terms haven't been made public.

JPMorgan declined to comment. A lawyer for the investors didn't immediately respond to requests for comment.

The accord, which requires court approval, was disclosed in a Thursday night filing with the U.S. District Court in Manhattan.

It is separate from JPMorgan's $13 billion settlement with regulators in November 2013 over mortgage securities sales.

The latest accord resolves claims that Bear violated federal securities laws by selling certificates backed by more than 47,000 largely subprime and low documentation "Alt-A" mortgages in 14 offerings from May 2006 to April 2007.

Investors said the offering documents contained false and misleading statements about the underwriting guidelines used by Bear's EMC Mortgage unit, Countrywide Home Loans and other lenders, and the accuracy of associated property appraisals.

Bear wasn't accused of fraud, but investors sought to hold it strictly liable and negligent for their losses.

They said nearly all the certificates were cut to "junk" status, although roughly 92 percent, or $16.2 billion, were once rated "triple-A."

The lead plaintiffs are the Public Employees' Retirement System of Mississippi and the New Jersey Carpenters Health Fund. Both sides plan by Feb. 2 to seek preliminary approval of the settlement from U.S. District Judge Laura Taylor Swain.

JPMorgan has resolved similar litigation over mortgage offerings from the former Washington Mutual Inc, which the New York-based bank also bought in 2008. It still faces litigation over some of its own mortgage offerings.

The case is In re: Bear Stearns Mortgage Pass-Through Certificates Litigation, U.S. District Court, Southern District of New York, No. 08-08093.

 

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Comcast Vows Better Customer Service While Skeptics Scoff

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Time Warner Cable And Comcast Among The Most Unpopular Companies In America

At the annual International Consumer Electronics Show, it's traditional to hear announcements of the most amazing things, some of which are so amazing that it's hard to believe they might happen. For example, Windows tablets have yet to put the sales of iPads to shame. Past announcements of smartwatches never saw them become a must for the fashion conscious.

This year, perhaps one of the most eyebrow-raising claims belonged to Comcast (CMCSA) (CMCSK). "We expect that customer service will soon be one of our best products," said CEO Neil Smit, according to tech blog BGR.

That would be one astonishing turnaround. Although, as BGR put it, "Considering the quality of most of Comcast's products, this wouldn't be very difficult to achieve."

In "The Prince," Machiavelli once debated whether it was better for a leader to be feared or loved. (He said both if possible, but if not, then feared.) What he didn't address so clearly was the utility of being hated.

That's been Comcast's quandary, as the company has exceeded at being hated. It won -- if that's the right word -- Consumerist's audience poll of the most hated company in the country last year. That was the second time the largest cable television provider in the U.S. grabbed the crown, with 2010 being the first.

Comcast beat out the likes of Monsanto (MON), Walmart (WMT) and Bank of America (BAC). It even bested SeaWorld (SEAS) after the scandalous Blackfish documentary. The reason? Bad customer service. No, make that service so terrible that it has gained national attention on more than one occasion in just the last year:

A tech journalist recorded his attempt to cancel his Comcast service, as Time reported, while a "customer retention" specialist desperately tried to keep him from doing so.

Another man had multiple problems with inaccurate billing and was only able to resolve it because he had recorded a Comcast customer service rep previously making a promise, according to Mashable.

Comcast managed to get a customer fired over a billing dispute and eventually apologized, as AOL Jobs reported.

BGR reported that Comcast closed out the year by making a customer spend four hours on the phone to cancel service.

This is beyond bad service. It's the stuff of legend that makes attempts to merge with Time Warner Cable (TWC) a tad more difficult than might otherwise be the case.

But all that is behind Comcast, according to Smit. "We do need to transform our customer experience, and I think we have a lot of work to do," Smit said, according to Consumerist. "It will take time, but we'll get it done," in what Consumerist said could be the "understatement of the century."

Of course, it may take a phone call or two. Or three.

 

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Obama Proposes Publicly Funded Community College for All

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Obama Community College
AP
By NEDRA PICKLER

KNOXVILLE, Tenn. -- President Barack Obama on Friday proposed to bring the cost of two years of community college "down to zero" for all Americans, an ambitious nationwide plan based on a popular Tennessee program signed into law by that state's Republican governor.

However, the idea and its $60 billion federal price tag over 10 years would have to make the grade with a Republican Congress that is showing little appetite for big new spending programs. Obama, who plans to push the issue in his Jan. 20 State of the Union address, argued that providing educational opportunity and creating a more skilled U.S. workforce shouldn't be a partisan issue.

Community college should be free for those willing to work for it because, in America, a quality education should not be a privilege that is reserved for a few.

"Community college should be free for those willing to work for it because, in America, a quality education should not be a privilege that is reserved for a few," he said in a speech at Pellissippi State Community College. He said a high school diploma is no longer enough for American workers to compete in the global economy and that a college degree is "the surest ticket to the middle class."

The White House estimated that 9 million students could eventually participate and save an average of $3,800 in tuition a year if they attend full time. Students would qualify if they attend at least halftime, maintain a 2.5 grade point average and make progress toward completing a degree or certificate program. Participating schools would have to meet certain academic requirements.

At North Lake College, part of the Dallas County Community College system, student Courtney Banks said such a program would help her and also allow others to enroll in classes.

"Other people, other young adults would be willing to get into school because it wouldn't be so far out of reach," she said. She added she's still trying to pay back loans from a previous school. "It costs a lot of money," she said.

The White House said the federal government would pick up 75 percent of the cost and the final quarter would come from states that opt into the program -- a cost of $20 billion over 10 years. Spokesman Eric Schultz said Obama will propose new programs to pay for the federal portion in his budget next month.

'America's College Promise'

Obama is calling the idea America's College Promise, modeled after Tennessee Promise, which Republican Gov. Bill Haslam signed into law last year to provide free community and technical college tuition for two years. It has drawn 58,000 applicants, almost 90 percent of the state's high school seniors. Chicago Mayor Rahm Emanuel, Obama's former White House chief of staff, has a similar program for students in his city.

"If a state with Republican leadership is doing this and a city with Democratic leadership is doing this, how about we all do it," Obama said.

Obama brought Tennessee's two Republican senators, Bob Corker and Lamar Alexander, with him on Air Force One for the event. But both said they thought states, not the federal government, should follow Tennessee's lead.

"Creating a federal program to me is not the way to get good things to happen in education," Corker told reporters from his seat in the third row of the speech. "You're always better off letting states mimic each other."

Alexander, a former education secretary who is set to take over the Senate committee that oversees education, said Washington's role should be to reduce paperwork for student aid applications. Obama said he agrees and wants to see that happen this year.

Obama also was joined on the trip by Vice President Joe Biden and his wife, Jill Biden, who drew applause when she told the audience she's been teaching English at community college for 20 years and still does as second lady. "This is the moment for community colleges to shine," she said.

The president and vice president also were visiting a manufacturing facility, Techmer PM in Clinton, Tennessee, to promote a second proposal to create a fund to help low-wage workers with high potential get training in growing fields such as energy, information technology and advanced manufacturing.

-Education Writer Kimberly Hefling in Washington and John Mone in Irving, Texas, contributed to this story.

 

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The Fall and Rise and Fall of Ruby Tuesday

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A Ruby Tuesday restaurant location in Maryland.
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The bad thing about turnarounds is that sometimes turnarounds themselves can turn around. Shares of Ruby Tuesday (RT) tumbled on Friday after posting uninspiring quarterly results. The casual dining chain has been struggling in recent years, but it finally seemed to be turning the corner last year.
Ruby Tuesday was starting to close underperforming eateries, and comparable-restaurant sales were starting to turn higher. It wasn't a very dazzling turnaround, but at least the chain was starting to take baby steps in the right direction. That brings us to Friday's fiscal second quarter report when Ruby Tuesday rediscovered its backpedalling ways.

Flavor of the Weak

It was a rough quarter for Ruby Tuesday. Revenue from continuing operations slipped to $262.7 million, well short of the $268.4 million that analysts were expecting. Closing 42 restaurants over the past year will eat into top-line growth, but Ruby Tuesday was also held back by a 1 percent decline in same-restaurant sales.

The slowdown at the restaurant level was fueled by a 1.3 percent decline in traffic to the average Ruby Tuesday. That may not seem so bad, but keep in mind that comps at company-owned restaurants plunged 7.8 percent during the prior year's fiscal second quarter. Work the math back and we're talking about an 8.7 percent decline in comps over the past two years.

The restaurateur managed to post a narrower deficit than it did a year earlier, but red ink is still red ink.

Turnaround Denied

After five consecutive quarterly deficits, Ruby Tuesday seemed to be turning the corner with a profit during the first quarter of fiscal 2015. It was coming off of back-to-back quarters of positive comparable-restaurant sales and its guidance for the quarter ending in early December called for it to stretch that streak to three straight quarters of year-over-year growth.

After a couple of makeovers and menu tweaks, it seemed as if the chain had finally discovered a way to make itself relevant at a time when casual dining icons including Red Lobster and Darden Restaurants' (DRI) Olive Garden were sputtering.

It wasn't to be. Last month it warned that same-restaurant sales would be negative for the quarter. The turnaround would have to wait, and it was time to worry again about the chain that has only beaten Wall Street's profit targets in two quarters over the past two years.

Goodbye Ruby Tuesday

It's hard to fix a chain once consumers have moved on. Ruby Tuesday tried to go upscale a couple of years ago, trading in its then-signature bric-a-brac decorations and faux Tiffany lamps for a fancier and pricier menu served up to guests sitting in leather banquettes and surrounded by dark woods. The move to go upmarket came at a lousy time. The country was heading into an economic funk.

It then went the other way in 2013, trying to appeal to value chasers with pretzel bun burgers and flatbreads at single-digit price points. It didn't work right away, but the temporary uptick last year suggests that it seemed to be on to something.

It wasn't. The midpoint of Ruby Tuesday's guidance for the current quarter calls for another period of negative comparable-restaurant sales. It plans to close a few more restaurants. The carnage continues. Ruby Tuesday still has a chance, but it won't be as easy as last year's brief mirage of a turnaround.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. Check out our free report on one great stock to buy for 2015 and beyond.

 

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Market Wrap: Stocks Slip on Weak Wage Growth, Oil Price Slump

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Markets Surge Into Positive Gains For Year
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By ALEX VEIGA

A turbulent week of trading ended Friday with U.S. stocks finishing lower for the third time in five days.

The decline followed two days of big gains and nudged major indexes lower for the year.

A slide in oil prices deepened, stoking concerns about global economic growth. Energy stocks tumbled, extending their losses for the year.

Investors also were discouraged by weak U.S. wage growth in December, despite another strong increase in hiring.

"We finally got the jobs growing," said Erik Davidson, deputy chief investment officer of Wells Fargo Private Bank. "Now people are looking through that at the actual wage growth numbers and they want to see improvement on wages, which obviously would spur demand and consumer confidence."

The Standard & Poor's 500 index (^GPSC) index shed 17.33 points, or 0.8 percent, to 2,044.81. The index is now down 0.7 percent for the year.

The Dow Jones industrial average (^DJI) slid 170.50 points, or about 1 percent, to 17,737.37. The Dow has fallen 0.5 percent this year.

The Nasdaq composite (^IXIC) lost 32.12 points, or 0.7 percent, to 4,704.07. It's down 0.7 percent this year.

After a long period of relative calm, stock markets have become more volatile as investors grapple with slowing global growth and slumping oil prices. A gauge of investor anxiety, the Chicago Board Options Exchange's volatility index, or VIX, rose 3 percent to 17.5 on Friday, up from 12 a month ago.

It's going to be a volatile year, but I think if you remain a long-term investor ... I think [the stock market] is going to have a pretty good year.

"It's going to be a volatile year, but I think if you remain a long-term investor ... and you push out this volatility and you focus on the trends, I think [the stock market] is going to have a pretty good year," said Robert Pavlik, chief market strategist at Banyan Partners.

A combination of positive U.S. economic news, hopes for stimulus from Europe's central bank and renewed confidence that the Federal Reserve will keep supporting the economy helped push stocks higher in the middle of the week after a tough start to the year.

But by Friday, the jobs data and a renewed decline in oil prices put traders in a selling mood once again.

U.S. crude fell 43 cents, or 0.9 percent, to close at $48.36 a barrel in New York on further evidence that OPEC will not cut production in an effort to support prices. In London, Brent crude fell 85 cents, or 1.7 percent, to $50.11 a barrel, setting a new five and a half-year low.

The price of oil has fallen by more than half since June as traders anticipate a glut of supply caused by increased production. The slide also has stoked concern about the already troubled state of economies overseas.

"Is it a canary in the coal mine for bigger global economic concerns?" Davidson said. "Is oil telling us something about the future of the global economy?"

Wage Growth Woes

The latest U.S. jobs data also gave some investors reason for concern.

The government reported that employers added 252,000 jobs in December, slightly more than economists expected. The government also noted that more jobs were added in October and November than it had previously estimated.

Still, wage growth remained weak, as average hourly pay slipped 5 cents in December. And the unemployment rate fell to 5.6 percent from 5.8 percent in part because many of the jobless gave up looking for work and were no longer counted as unemployed.

Among individual stocks, Avon Products (AVP) declined the most among companies in the S&P 500. The stock shed 66 cents, or 7.5 percent, to $8.17. It's down 13 percent this year.

All 10 sectors in the S&P 500 fell. Financial stocks were the biggest losers on the day. The sector is down 2.4 percent this year.

In government bond trading, prices rose. The yield on the benchmark 10-year Treasury fell to 1.95 percent from 2.02 percent on Thursday.

The euro edged up to $1.1841 from $1.1792 the previous day. The dollar fell to 118.51 yen from 119.80 yen.

In metals trading, gold edged up $7.60 to $1,216.10 an ounce, silver rose three cents to $16.42 an ounce and copper fell two cents to $2.75 an ounce.

In other futures trading on the NYMEX:
  • Wholesale gasoline fell 1.8 cents to close at $1.323 a gallon.
  • Heating oil fell 0.8 cent to close at $1.703 a gallon.
  • Natural gas rose 1.9 cents to close at $2.946 per 1,000 cubic feet.
Among other stocks making big moves Friday:
  • Star Bulk Carriers (SBLK) sank 23.1 percent after the global shipping company priced a public offering of stock below the previous day's closing price. The stock slid $1.51 to $5.02.
  • Ruby Tuesday's (RT) latest quarterly revenue fell short of expectations as sales at restaurants open at least a year declined. Shares in the chain-restaurant operator shed 83 cents, or 11.7 percent, to $6.27.
  • Agenus (AGEN) jumped 28.7 percent on news that the biotechnology company signed a licensing, development and commercialization deal with Incyte for immuno-therapeutics. Agenus rose $1.18 to $5.29. Incyte fell $1.18, or 1.6 percent, to $72.03.
-AP Markets Writer Steve Rothwell in New York contributed to this report.

What to watch Monday:
  • Alcoa (AA) releases quarterly financial results after U.S. markets close.

 

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Apple Pay, New and Secure, Wins Fight for Mobile Payments

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First Apple Pay Purchase at Disney Store
Jordan Strauss/Invision/Disney Store/APApple Pay at work.
By Hal M. Bundrick

It's quite likely that in a few years, pulling out a credit card -- embedded chip or not -- will seem like a quaint, old-fashioned way to make a payment. Mobile payment tools, while currently the purview of mostly early adopters, are set to transform the payment process -- offering convenience and advanced security. It's also likely that a late arrival to the payment party will soon be the toast of the technology.

Apply Pay (AAPL), a payment option available for less than three months, is poised by the end of February to overtake the transaction volume of Google (GOOG) Wallet, which was launched in 2011, ITG Investment Research estimates.

But more importantly, Apple Pay could "pose a major threat" to the mobile payment kingpin, eBay's (EBAY) PayPal, according to ITG. Despite the fact that Apple Pay is still vertically bound to serve just its own customers and is supported by a "relatively limited list of merchants," the new service has advantages that PayPal may not be able to overcome.

Analyst Steve Weinstein believes that PayPal suffers from "a challenging relationship" with other companies involved in the payment process and can't offer the biometric security capabilities that Apple Pay can. Apple Pay also has the power of the brand's affinity and an ease of use that will be difficult for competitors to overcome.

Where Early Adopters Are Spending

The security issue is key. As consumers become more concerned about cybertheft and payment hacks, authorizing financial transactions with a quick biometric confirmation -- using a fingerprint, voice command or other personally identifying authentication -- may well become commonplace. That's an area where Apple has a big head start on the field of mobile payment providers.

ITG research, based on interviews with a proprietary consumer panel, discovered other signs of growing Apple adoption. Fully 60 percent of new users triggered Apple Pay mobile payments on multiple days in November, while new PayPal customers used the service on multiple days during the same time period just 20 percent of the time. Apple Pay customers used the service roughly 1.4 times a week during the period -- and at the same merchant for future transactions roughly two-thirds of the time. And once they use it, average Apple Pay consumers use the service for about 5.3 percent of all future card transactions and 2.3 percent of all future card dollars spent.

Perhaps most telling, the top five Apple Pay retailers are businesses with a high volume of repeat business. According to ITG, in November those top-volume merchants were Whole Foods Market (WFM), Walgreen (WAG), McDonald's (MCD), Panera Bread (PNRA) and Subway.

 

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Make It Count This Year: Keep Your Debt-Free Resolution

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Are you suffering from a debt hangover this January? You are not alone. MagnifyMoney surveyed Americans who added debt this holiday, and the average amount of new debt was $986 per family. Although it may have been fun watching family and friends opening gifts, many people are now stuck opening their credit card statements. Even worse, fewer than half of the people who accrued debt believe they can pay it off during the next five months. Given the high interest rates on store cards and credit cards, those purchases in December will end up costing significantly more than the original sticker price. If you only pay the minimum due, the cost of the interest will be higher than the cost of the merchandise.

Most personal finance columns in December are filled with words of wisdom on how to avoid spending too much during the holidays. And every January we see stories on how to deal with debt. Unfortunately we seem to follow the same painful cycle: overindulgence in December and then a new year's resolution in January to deal with the consequences.

Even worse, the $986 is incremental debt. Forty percent of the country entered the holiday shopping season with over $10,000 of debt. Meanwhile, credit card companies continue to fuel the fire. Experian Decision Analytics regularly releases data on credit card growth, and new credit cards are being issued at an amazing speed. Banks granted $92 billion of new credit lines between July and September 2014. That is an increase of 35 percent compared to the same three months a year ago. Americans are being given more opportunities to borrow, and it looks like they did just that in December.

Where there is pleasure, guilt often follows. And we see the guilt and new year's resolutions on full display. Last year, more people searched Google for "get out of debt" during the first weeks of January than any other time during the year. We all seem to wake up on Jan. 1 and decide to eat healthy, lose weight and get out of debt. The ambition is admirable, but how can we make sure that we stick to it during the year?

A Plan to Be Debt-Free

The math of getting debt free is simple. There are two ways to get out of debt faster: make bigger payments each month (which means you have to earn more, spend less or both) and reduce the interest rate on your debt (by transferring the debt to a lower interest rate).

The psychology is a lot harder. We are human beings, and good intentions often give in to desire. Surprises happen. We lose our job, or we lose that extra shift. Our landlord increases the rent more than expected. There are so many different ways that we can be diverted from our goal of debt freedom. But that doesn't mean we shouldn't try.

And we should harness our good intentions in January to take measurable action. To give this January's resolution a greater chance of sticking, I have written a guide on how to pay off debt. And the most important part of building a credible plan is having a realistic assessment of your situation, so that you can follow the plan that will fix your situation the fastest.

How Bad is My Situation?

There are three important parts of your situation:
  • Do you spend more than you earn each month?
  • How good is your credit score?
  • How much debt do you have, relative to your income?
The answer to these questions should really influence the steps you take to become debt-free.

If you spend more each month than you earn, you will never get debt-free. That may sound obvious, but far too many people don't understand the difference between cash flow and spending. When you buy something, you are spending money. When you pay the credit card bill, you are just paying for something you already bought. Just because you can afford the minimum payment on your credit card does not mean you are spending less than you earn. And if you can't comfortably cover your fixed expenses, you will need to take some drastic measures. That could include moving to a cheaper home or apartment, selling an expensive car or re-considering some other big expenses.

If you have already accumulated too much debt, you should seek credit counseling and consider re-structuring or, potentially, bankruptcy. Once your credit card debt is more than 50 percent of your gross income, it will be very difficult to recover from that situation. Cutting out a trip to Starbucks (SBUX) or selling a few items on eBay (EBAY) will not make a material difference to your situation. When you can barely afford the minimum due on your credit card payments, it is time to negotiate. You don't want to spend the rest of your life working just to pay interest on your debt. Banks will be happy to take the minimum payment each month, but it does reach a point where struggling to make the minimum payment is no longer in your best interest.

Can You Transfer and Attack?

And, if your credit score is below 700, it will be challenging to re-finance your debt to a lower interest rate. You really need to work on building your credit score, so that you can create options to transfer. In order to build your score, you need to understand how scoring works and focus on the parts that matter. That means keeping your total utilization (your statement balance as a percentage of your credit limits) below 20 percent, and paying on time every month.

But, if your debt is below 50 percent of your income and you have a score above 700, you can transfer and attack. That means you can take high-interest credit card debt and transfer it to a low-interest rate options. There are some amazing offers out there, especially from credit unions. For example, American Heritage Federal Credit Union (which anyone can join) offers 2.99 percent for 24 months on credit card balances transferred. If you have $5,000 of debt at 17 percent, you could save nearly $1,000 by transferring that debt. At MagnifyMoney, we keep a list of the most current offers, and we do the math on the savings.

To make a real dent in your debt, you should take action now. But what type of action depends upon your situation. If your fixed expenses are too high, moving to a different apartment may be the best thing you can do. If your debt is close to 100 percent of your income, finding a nonprofit consumer credit counselor is probably the best thing you could do. And, if you have a great score but just have too much debt, refinancing the debt could be the best action you take. Even if you don't cut your spending, more of your monthly payment will go towards principal every month. We all know we have the risk of getting lazy in a few months time, so lets take action in January that sticks for the rest of the year.

Nick Clements is the co-founder of MagnifyMoney.com, a price comparison website that helps you find the best deals in banking. He spent nearly 15 years in consumer banking, and most recently he ran the largest credit card business in the U.K.

 

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11 Ways to Make Extra Money in Your Spare Time

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Looking to supplement your income without getting a second job? Maybe you're saving for a particular goal, trying to pay down debt, or maybe you simply want a little more spending money.

Thanks to the wonders of the Internet, it's easier than ever to flex your "hustle muscle and earn extra income in your spare time, regardless of whether that spare time consists of a few hours a week or a few minutes a day. Here are 11 surefire ways to turn your time into money.

1. Sell Your Stuff on Amazon (AMZN)

You can make hundreds by selling unwanted goods on Amazon, such as unwanted gifts you collected over the holidays or that collection of baseball cards you've had since you were a kid.

Search for your product on Amazon, scroll down past the "buy" options on the right-hand side and look for the button that says "Have one to sell? Sell on Amazon." They'll walk through how to prepare your listing and notify you when your item sells.

If you want the most time-efficient route, you can ship Amazon your goods, and Amazon will handle all the order processing and fulfillment for a cut of the total. The best way to get started with Fulfillment by Amazon is by reading the ebooks "Selling on Amazon" or "FBA for Beginners" -- free if you have a Kindle Unlimited subscription, or $2.99 if you don't.

2. Craigslist

Craigslist is good for selling larger items that would be inconvenient to ship. Advertise your item to local buyers, and they can accept your price outright or barter (like at a garage sale). Once you agree on a price, you can choose where you'll exchange the product.

It's always safest to do the exchange at a neutral public location, like at a coffee shop or in the parking lot of a busy grocery store in the afternoon, rather than agreeing to meet at one of your homes. Remember that Craigslist buyers are strangers, so exercise reasonable caution.

3. Etsy

If you're crafty, you can start a nice little side business by selling your wares on Etsy. Create your own "store" and stock it with whatever you create -- hats and mittens, home décor, custom candles, the possibilities are endless.

4. Fiverr

If you've ever had a random idea for something you could do for a buck, chances are there's a place for it on Fiverr. Fiverr users offer everything from professional services like animation and design to quirky services like writing your name on the beach and taking a picture of it for you.

You only earn $5 a pop (hence the name), minus website fees, but if you choose a simple task, you can do in 10 or 15 minutes, the money could add up.

5. Amazon Mechanical Turk

Only got a few minutes here and there throughout the day? Why not turn that time into profit by signing up for Amazon Mechanical Turk. Workers are provided with a list of tasks, or "HITs," which you can filter based on the amount of time required (some are as short as 30 seconds).

You may be asked to do things like answer a survey, transcribe a piece of audio, rate an article or compare images. Payouts range from a few cents to more than $20, depending on the task. It's a great way to earn some spare change in your down time. Check out the Amazon Mechanical Turk Getting Started Guide, which endorsed by Amazon Web Services.

6. Rent Your Space

Got an extra room, floor or even storage space you're not using? Turn it into a revenue stream by renting your home on AirBnB or RentYourSpace.net. Why let that space collect cobwebs when it could be collecting you cold, hard cash?

7. Task Rabbit

Task Rabbit connects service providers with people in their area who are looking for their services. Tasks range to everything from cleaning houses to running errands to doing handiwork. If you have a couple extra hours a week, it could be an easy way to supplement your income.

Task Rabbit is in 19 cities across the U.S.; visit the website see if yours is one of them.

8. Swagbucks

Another way to get paid for killing time (whether in line at the bank or on your lunch break) is Swagbucks.com. Earn points for doing web searches, answering polls and surveys, watching videos and more; then redeem these points for things like gift cards.

9. Mystery Shopping

If you can keep a secret and follow instructions, you may find mystery shopping a fun way to earn a little extra. Companies hire mystery shoppers to make sure their businesses are being run properly, and assignments could involve asking questions about a particular item, evaluating a cashier's speed and friendliness or checking how clean the restrooms are at a restaurant.

10. Pet Sitting

If you're a pet lover, you can get paid to watch people's furry friends in their home or in the comfort of yours. Sites like Care.com, DogVacay.com and Rover.com connect you with pet owners who need everything from an overnight sitter to a sitter for a couple hours, and you can arrange assignments to match with your availability.

11. Sell Your Items on eBay (EBAY)

EBay's auction-style format helps you get maximum dough for your stuff if it's rare or popular, and you can also set a "Buy It Now" price for serious buyers who want to skip the bidding. Be sure to present your item accurately, take lots of flattering photos and write an interesting description.

 

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Tax Preparation Software Improvements Focus on Apps

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By Doug Olenick

If you're among the 40 percent of taxpayers who use software to prepare your income tax returns, there are several changes and improvements that you should know about:

H&R Block

H&R Block (HRB) is adding two notable features. One allows users to prepare their tax return on a mobile device with a browser or a smartphone. A second, called Refund Reveal, helps taxpayers understand what's affecting their return. In the past, the software would simply calculate the amount of the refund, or amount owed, without explaining why. Now, the software will reveal why the tax return changed from the previous year. For example, it may note that the amount changed due to a child tax credit, or because too much money was taken out in taxes throughout the year.

H&R Block also has a new promotion called Refund Bonus. Users can apply their refund to a gift card, and the tax preparation company will match 10 percent of the amount on the card for those customers using its Deluxe or Premium products. For those customers using its other products, it will match 5 percent on the card. H&R Block carries four products: Free; Basic, $19.99; Deluxe, $29.99; and Premium $49.99.

TurboTax

TurboTax, which is part of Intuit (INTU), is offering an app that allows users to shift from one mobile device to another as they prepare their return. It also provides a way to import images from a camera on a smartphone or tablet computer and transfer them into the software. Customers can input such information as their W-2 forms by taking a photo of it. Software updates will be uploaded to customers' mobile devices between the time of purchase and filing taxes. TurboTax has four versions: Free for federal returns; Deluxe, $29.99; Premiere, $49.99; and Home and Business; $74.99.

TaxACT

TaxACT, which is part of Blucora (BCOR), is planning an update that features a TaxACT Express app, which will allow users to prepare and check the status of their return. There is also additional functionality being built into TaxACT's mobile donation tracker app Donation Assistant. This app allows users to track their cash and non-cash donations as they are given. Donation Assistant includes more than 1,300 audit-backed, fair market values for household items.

TaxACT Online customers can also manage their returns and information from one secure account, accessible through any browser on any device. Customers will gain access to all of their 2014 tax returns, as well as future returns, and can see the status of their returns and federal refunds after filing electronically. It will also integrate all the TaxACT mobile app functions. The Affordable Care Act Accelerator has been updated to reflect new ACA rules, changes, credits, subsidies and applications. TaxACT has four levels: Free; Deluxe Federal, $12.99; and Ultimate Bundle, which adds a state return, $17.99.

Jackson Hewitt

Jackson Hewitt Online has revamped its user interface, making it easier for customers to file their return online. For those users who wish to switch to Jackson Hewitt, Hewitt now allows tax data information to be ported into its system from other tax preparation vendors.

Users are able to file federal returns for free and the firm has tax professionals online and ready to help filers via chat. Customers can also walk into offices nationwide for help. The Accelerator tool is updated to reflect new ACA rules, changes, credits, subsidies and applications. Jackson Hewitt has four versions: Free to handle simple returns; Basic, $19.95; Deluxe, $34.95; and Premium, $49.95.

 

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How Ford Will Chase Younger Buyers in 2015

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FordFord's high-performance Focus ST has drawn many new customers to the brand -- including many under 30. Ford plans to build on that success with an even hotter Focus -- and other new high-performance models -- over the next few years.
Ford (F) is expected to unveil a slew of new high-performance models at next week's North American International Auto Show in Detroit, its first move in a major high-performance push that will bring "more than 12" new go-fast models to market by 2020, it says.

So far, Ford has confirmed only that a super-hot new Focus model, the RS, will appear. But the company has hinted that a high-performance "Raptor" version of its new F-150 pickup could debut -- and there are rumors that a new Ford sports car could be revealed as well.

Fast, sexy sports cars (and trucks) make for great headlines -- and they help draw enthusiasts to a brand. But they also make good business sense. Here's why.

High-Performance Models Are About Attracting the Right Customers

There are several good reasons that a mainstream brand like Ford might want to put time and effort into developing high-performance models. But big sales isn't one of them.

While the V8-powered GT version of Ford's Mustang sells well, higher-performance models are typically niche products. That niche is growing -- Ford says that sales of high-performance models have risen 70 percent in the U.S. since 2009, and 16 percent in Europe over the same period -- but it's still small. High-performance versions of mainstream models generally make up less than 10 percent of the model's total sales.

But those sales can be very profitable. Ford's compact Focus starts at under $17,000, but the sticker price on a loaded high-performance ST model is close to $29,000. There's a lot of profit for Ford in that $12,000 difference.

But perhaps more important, high-performance models are a way to bring new buyers to a brand. Ford reports that more than 65 percent of those who buy its "hot-hatch" Focus ST and Fiesta ST models are new to the brand. And they stick around: More than half of those who buy a high-performance Ford go on to buy another Ford product, the company says.

Even more important, those buyers tend to be younger -- a critical factor for Ford and other automakers who have struggled to engage "millennials," or those born between 1980 and 2000. Fiat Chrysler (FCAU) has said that its effort to remake the Dodge brand with a performance-oriented lineup is about attracting younger buyers. And Ford says that millennials buy its ST models at twice the rate they buy other Ford products.

Fast Cars Help Automakers Hire Great Engineers, Too

The case for high-performance cars like the Focus and Fiesta ST goes beyond sales and marketing. Ford and other automakers say that high-performance cars and racing programs provide great training and motivation for their engineers and designers -- and help them hire and retain top talent.

In addition, the technology that comes out of high-performance efforts often makes its way into mainstream models over time. Fiat Chrysler engineering leaders have said that the lessons learned during development of the company's extreme "Hellcat" V8 engine will help make its mass-market engines more fuel-efficient.

But it's the way that models like the Focus ST and FCA's Dodge Challenger SRT Hellcat draw enthusiasts to the brand -- particularly younger enthusiasts -- that make them worth the investment to cost-conscious automakers.

Motley Fool contributor John Rosevear owns shares of Ford. The Motley Fool recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. Find out the easy way for investors to ride the new mega-trend in the automotive industry in our free report.​

 

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Why U.S. Inflation Stays Ultra-Low While Job Growth Surges

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Job Seekers Attend A Princeton Area Chamber of Commerce Career Fair Ahead Of Initial Jobless Claims
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By JOSH BOAK and CHRISTOPHER S. RUGABER

WASHINGTON -- This isn't explained in Econ 101.

Month after month, U.S. hiring keeps rising, and unemployment keeps falling. Eventually, pay and inflation are supposed to start surging in response.

They're not happening.

Last month, employers added a healthy 252,000 jobs -- ending the best year of hiring since 1999 -- and the unemployment rate sank to 5.6 percent from 5.8 percent. Yet inflation isn't managing to reach even the Federal Reserve's 2 percent target rate. And paychecks are barely budging. In December, average hourly pay actually fell.

I can't find a plausible empirical or theoretical explanation for why hourly wages would drop when for nine months we've been adding jobs at a robust pace.

Economists are struggling to explain the phenomenon.

"I can't find a plausible empirical or theoretical explanation for why hourly wages would drop when for nine months we've been adding jobs at a robust pace," said Patrick O'Keefe, chief economist at consulting firm CohnReznick.

Normally, with unemployment this low, the Fed would raise its benchmark interest rate to prevent inflation from spiking and the economy from overheating. Not this time. Though the Fed's record-low rates have helped support the economy since the 2008 financial crisis, those low rates haven't met their other goal of raising wages and inflation to normal levels.

As long as inflation stays consistently below its target, the Fed might feel pressure to delay a rate increase beyond midyear, when most economists have predicted a hike. Thanks in part to plunging oil prices, many economists now envision even less inflation this year than in 2014.

When the U.S. economy last enjoyed a similar hiring binge, in 1999, average wages climbed 3.6 percent, compared with 1.6 percent last year, according to the government.

So what explains consistently solid job growth without inflation? Here are four crucial factors:

Recession's Lingering Damage

Though the unemployment rate is back to a nearly healthy level, many other measures of the job market remain subpar.

There are still 6.8 million people working part time who can't find full-time jobs, up from 4.1 million before the recession. Each of those workers potentially competes with the unemployed for full-time work, thereby holding down wages.

And there are 2.3 million people who have recently stopped looking for work, some of them because they grew discouraged about their prospects. Others chose to return to school or to care for relatives. That's up from 1.3 million before the recession.

And a broader gauge of unemployment, which includes the officially unemployed as well as involuntary part-time workers and those who've stopped looking, is 11.1 percent. That figure has improved since the recession, but not as much as the official unemployment rate has.

Jennifer Durham, a vice president at the 800-fast-food restaurant chain Checkers, says it plans to add 50 to 60 restaurants this year. Each should employ 25 to 30 people.

But Checkers hasn't faced much pressure to raise wages for hourly workers. "There's no shortage of applicants," Durham said.

The end of long-term unemployment benefits, which provided up to 99 weeks of aid until they expired a year ago, may also be contributing to lower wages, said Daniel Alpert, managing director at Westwood Capital, said.

That's because some of the unemployed have likely had to take lower-paying jobs. Retail or restaurant jobs that pay at or near minimum wage don't provide much more spending power than unemployment benefits did, Alpert added. That means the new jobs won't raise inflation much if workers can't afford to spend much more than they did when they were unemployed.

Blame the Robots

What's happened in the auto industry reveals much about how the economy has been transformed -- and why a nearly normal 5.6 percent unemployment isn't igniting wages.

Sales of new cars last year reached 16.5 million, the best performance since 2006. But the gains have yet to restore every auto job lost to the recession -- let alone expand the industry's employment over the past eight years. The number of autoworkers remains about 160,000 shy of pre-recession levels of more than 1 million.

The reason: Companies fear returning to the days when they had too much factory capacity. So they're squeezing more production out of less capacity. Emerging from the recession, automakers reconfigured factory floors and added robots to produce more vehicles from fewer plants and fewer workers.

What's more, the United Auto Workers union agreed to wage cuts in an effort to help General Motors, Ford and Chrysler. New hires started at around $16 an hour, about half of what longtime workers earn.

Roughly a quarter of Detroit's factory workers now make the entry-level wage. Even longtime UAW workers haven't had an hourly pay raise since 2007, though they've received annual profit-sharing checks equaling about $4 an hour.

Similar trends have emerged at other factories and in other industries. O'Keefe notes, for example, that retailers are selling more goods than before the recession yet still employ fewer workers.

Though hiring has picked up in higher-paying industries, in many cases, wages are still lagging. Average pay at heavy goods manufacturers rose only 0.7 percent last year, less than half the economy-wide average. Pay for transportation and warehousing workers rose just 0.9 percent.

Check the Demographics

Seen more Uber-riding, Snapchatting millennials?

Since the start of graduation season in May, employers have hired an additional 1.67 million college graduates -- nearly 60 percent of all jobs added last year. In the past year, the number of 25-to-34 year-olds with jobs has climbed a solid 2.5 percent.

Because so much hiring has disproportionately occurred in recent months, Wells Fargo chief economist John Silvia figures that wages might be held down because many lower-paid entry-level workers are finding jobs. Their influx cuts into average wages while simultaneously reflecting the strength of job growth.

"Given that we've hired so many people in the last two or three months, you're bringing in a lot of new workers who will not be paid as well as experienced workers," Silvia said.

Dig a bit deeper and you find other age-based pressures: The number of workers older than 55 climbed an impressive 3.4 percent last year. But those employees likely maxed out their salary potential years ago and are unlikely to enjoy sharp pay hikes. The number of employed 35-to-54-year-olds -- the age group most likely to be in their peak earnings period -- rose less than 1 percentage point in the past year.

Global Reality Bites

No matter how much the U.S. economy improves, American workers still face competition from billions of workers in China, India, Eastern Europe and elsewhere who weren't part of the global economy a decade or two ago.

That most of those economies, as well as Japan and the rest of Europe, are stumbling only intensifies the competition for jobs. Weak growth overseas has lowered interest rates and inflation -- and therefore tempered pay growth -- in many of the United States' competitors. That means U.S. workers face continued low-wage competition.

At the same time, the dollar's value is rising against other currencies, thereby making U.S. goods costlier overseas. This limits the ability of U.S. workers to secure higher pay. Many U.S. companies can move operations overseas.

O'Keefe notes that this trend increasingly hurts skilled U.S. service workers. Software engineers, legal researchers and IT help desk workers all compete with lower-paid workers overseas.

-AP Auto Writer Tom Krisher contributed to this report from Detroit.

 

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8 Couponing Mistakes That Tank Your Savings

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AWYYXX Multi ethnic womens hands sort cents off promotional coupons. Image shot 2002. Exact date unknown.Photographer :   Ted
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My mom used to spend several hours each week clipping coupons.

She'd pile a stack of newspapers and inserts onto the kitchen table, read through the coupon sections one by one and start sheering with a pair of scissors. She used coupons every time she bought something -- groceries, household items, makeup and clothing.

But there's more to couponing than simply clipping -- it takes some tactics to make sure you're actually getting the bargain you think you are.

Take a look at these eight couponing traps people fall into that nullify their savings, and make sure you're not falling prey to any of them.

1. Buying Something Just Because It's on Sale

A great deal isn't a great deal if it's for something you'll never use. If your family hates toothpaste Brand A, it doesn't matter if you get it for half-price because it will just waste away in your medicine cabinet. If you're trying to eat healthier, it doesn't matter if those candy bars are buy one, get one free because any savings you net will be counterbalanced by the health costs of eating them. Use your common sense and only clip coupons for items you know you and your family will use.

2. Buying Way Too Much

If you have the storage space to stockpile items bought in bulk, it can be a smart idea to buy multiples of an item when it's on sale. But sometimes too much of a good thing can be a bad thing.

Some items have expiration dates, and buying more than you can realistically use before they go bad is just money down the drain. It's also a bad move to buy more than you can fit into your weekly or monthly grocery budget.

If it helps, approach coupons in conjunction with a goal to increase your savings by 1 percent a month. This keeps you on track to make sure you're not spending too much.

3. Not Checking If Generic Is Cheaper

The Brand B of cereal may have a dollar-off coupon, but that doesn't mean it's the best deal. Always compare name-brand product sale prices with the prices of their generic counterparts. Oftentimes you'll find you're still better off going generic.

4. Not Reading the Fine Print

Are there any size restrictions on the coupon or limits on how many coupons you can use per transaction? What about your store's policy -- does it allow you to use coupons on sale items? Can you combine store coupons with manufacturer's coupons?

Make sure you know the right way to use your coupons or you could waste a lot of time for a deal that winds up being invalid.

5. Failing to Stack Your Savings

Always look for ways you can multiply your savings by combining them with current store promotions or rebates or by using both a store coupon and manufacturer's coupon on the same product. The savviest couponers are able to get items for free by using such combinations.

6. Not Scanning Circulars

Prepare your game plan ahead of time by reviewing store circulars before you shop. You'll be able to see which items are on sale this week, check them again your current coupon stash and calculate whether your total savings would be high enough to justify the purchase.

Waiting to check your coupons till you're standing in front of the shelves is a surefire way to miss out on some good deals -- and to fall for some not-so-good deals because you don't take the time to vet them.

7. Forgetting Your Coupons at Home

Although you should always have a list prepared for regular shopping trips, there are times when you need to run into a store for one or two items, and you never know when you might spy a great deal you'd like to take advantage of.

Always carry your full coupon binder with you, whether it's in your purse or your car, so you can seize these deals when you see them. (My mom kept a thick stash of coupons in her purse, neatly organized into categories and shuffled by expiration date.) There's nothing more frustrating than seeing a hot sale and thinking, "I know I have a coupon for that at home!"

8. Being Disorganized

If you get serious about couponing, you'll start to build up quite a stash of coupons. And if you don't find a method for keeping them organized, they'll wind up being more of a headache than a help.

Two popular couponing systems involve an accordion-style binder or a regular three-ring binder with clear baseball card inserts. Keep your coupons in groups based on type of product (produce, dairy, toiletries, etc.) and keep these groups further organized by ordering coupons according to expiration date. Every time you open your binder to put in a new batch of coupons, do a quick scan and remove any that have expired.

 

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The Tax Guide to Having a Baby

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Having a baby transforms your life forever, and from a financial perspective, taking on the responsibility of bringing another person into your family involves plenty of additional expenses. But the federal tax laws look favorably on families with children, and you'll find a number of tax benefits that come with becoming a parent. In this guide, you'll find out about many of the favorable tax provisions that children bring when they come into the world.

A Boost to Standard Deductions and Personal Exemptions

Having a child adds another dependent to your tax return, which can have a big impact on the taxes you pay. Those who filed as single taxpayers typically qualify as head of household, which in 2015 gives you a standard deduction of $9,250 rather than the $6,300 that childless singles receive. Moreover, regardless of whether you're married or single, having another dependent adds a personal exemption to your total, further reducing your taxable income by $4,000 in 2015. By themselves, those breaks can save hundreds or even thousands of dollars on your tax bill compared to what you paid before having a child. Single parents get the additional benefit of having more favorable tax brackets, which further reduces overall tax liability.

Bringing On the Credits

Several credits apply to families with children. The Child Tax Credit reduces your tax bill by up to $1,000 per child every year until your child turns 16. Income phaseouts beginning at $75,000 for single filers and $110,000 for joint filers reduce the credit gradually, but the credit is a rare example of a provision that can actually put money back in your pocket even if you don't owe any taxes at all.

If you adopted your child, then you can get a credit for adoption expenses of up to $13,400 in 2015. A much higher income phaseout range of $197,880 to $237,880 applies to the adoption credit, which lets you recover the costs of adoption fees, court costs, attorneys' bills, and traveling expenses to get your child.

Single taxpayers who work and two-earner families who file jointly can also claim the Child and Dependent Care Credit, which pays up to 35 percent of the first $3,000 you spend on child-care expenses for one child, or the first $6,000 for expenses for two or more children. For joint filers, both parents have to have earned income from employment or a business. The percentage of the credit ranges from 20 to 35 percent depending on how much income you have.

Finally, the Earned Income Tax Credit applies much more broadly for parents than it does for taxpayers with no children. Although the maximum credit for those with no children is just $503, those with one child can claim up to $3,359, with two-child families having a $5,548 maximum and those with three or more children seeing a maximum of $6,242.

Reducing Your Taxes With Your Child's Return

Another way parents can get tax benefits through their children is to arrange their finances to have the child generate taxable income. Because young children have no other income, their tax rates on any investment income are very low.

This strategy used to be so popular to avoid taxes that lawmakers finally had to limit its use. Now, the so-called "kiddie tax" applies to prevent parents from sheltering income under their kids' tax returns. You can still use lower tax brackets for children's returns to a limited extent, but for 2015, the most that a child can have in unearned investment income without paying federal income tax is $1,050. Another $1,050 gets taxed at the child's lower rate, but above that amount, the child is treated as paying the same rate that the parents pay on their tax return.

Your Bundle of Tax Joy

Parenthood has its joys and challenges, but financially, the tax breaks that having a child can bring make a big difference in being able to afford the added expenses of raising a family. By knowing as much as you can about tax breaks available to families, you can put yourself in the best position possible to have the IRS subsidize your child's expenses throughout their childhood.

Motley Fool contributor Dan Caplinger loves his 9-year-old daughter for many more reasons than just the tax savings. 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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