I'm as romantic as the next gal. But the standard Valentine's Day fare just doesn't cut it for me anymore. The candy makes me fat. The flowers die within a week. The apparel rarely fits, and I have to sneak it back to the store so I don't hurt my husband's feelings.
Of all the things my husband does to show he loves me after nearly 21 years of marriage, buying me traditional stuff never tops the list. Filling out our taxes -- so all I have to do is sign -- does. But if he were to ask me how to spend $142 -- this year's average Valentine's Day spending, according to the National Retail Federation -- to show how much he cares, these are the things I'd want him to buy.
3.5 hours of garden care: I love gardening. But by July, you can cut the humid Virginia air with a knife, and I pretty much let my garden fend for itself. Garden care around here costs about $40 an hour. So I'll grow my own roses, thank you very much, if someone else will weed the beds.
Stock: If you pick right, a share or 10 of stock is the gift that keeps giving. I'll take a share of Apple (AAPL), because I'm totally hooked into the Apple ecosystem.
Massage: It's something I rarely buy for myself, even though the massage chains popping up everywhere have brought the price of a massage down to $75. Buy me a couple hours of deep-tissue massage, and I'm feeling fine. And a relaxed wife means a happy life for hubby, too.
Five-gallon fish aquarium: Watching a betta fish swim and listening to water spilling from a filter would bring me joy every time I look up from the keyboard. A five-gallon aquarium kit, big enough for a single betta or a couple of GloFish, costs under $50 these days and usually includes a filter and light. Add the fish, an aerator and plastic plants, and you're still under $140. Don't forget the food.
A session with a fee-only financial consultant: We have no financial plan or clear idea how we're going to afford retirement. We just keep working, spending and hoping for the best. A fee-only financial planner -- which ranges from $150 to $300 an hour -- could help us plan for our future -- what a concept!
NetPhotos/Alamy
It's probably poetically fitting that two of the leading providers of online coupons continue to get cheaper. Shares of Coupons.com (COUP) and RetailMeNot (SALE) opened sharply lower on Tuesday after posting their latest quarterly results.
It wasn't pretty in either camp. Coupons.com kicked things off Monday afternoon with its brutal report that sent the shares to open at a new all-time low on Tuesday morning.
Revenue at Coupons.com climbed 14 percent since the prior year's holiday quarter to hit $60 million. That's less than what analysts were expecting, and well below the 40 percent growth rate that the site operator had generated through the first nine months of the year. Coupons.com blames the low revenue growth on a few notable advertisers that didn't repeat holiday campaigns from 2013, but the company's outlook suggests that weakness will linger.
Coupons.com is eyeing just $52 million to $54 million for the current quarter, implying less than 5 percent growth over the $51.5 million it served up during last year's first quarter. That's pretty jarring when Wall Street was forecasting $66.3 million for the period. Coupons.com sees growth accelerating for the balance of the year if we go by its full-year forecast of $275 million to $290 million -- 24 percent to 31 percent higher than last year -- but investors are going to put more faith in the near-term shortfall than the potential to bounce back later this year.
Deeper Discounts
RetailMeNot held up better than Coupons.com, but only relative to expectations. Revenue may have moved 11 percent higher to $87.4 million, but analysts were settling for a mere 10 percent advance. Adjusted earnings actually surpassed expectations, something that has consistently happened since it went public two years ago.
RetailMeNot's stock still moved lower after Tuesday morning's report. A good chunk of the drop can be attributed to the weakness at Coupons.com, but RetailMeNot also offered up uninspiring guidance. It sees revenue actually declining for the current quarter when pitted against last year's first quarter, and its outlook calls for revenue to grow a mere 4 percent to 8 percent for all of 2015.
Where did this niche go wrong? Everyone loves bargains, and online coupons and discount codes are win-win situations for hungry merchants and deal-seeking shoppers. Unfortunately for two of the leading standalone players in this field, it's just not enough.
Marking Down the Players
RetailMeNot went public at $21 two summers ago. Coupons.com followed with its own IPO at $16 in early 2014.
Both stocks got rocked last year. RetailMeNot shares surrendered nearly half of their value. Coupons.com's stock traded as high as $33 on its first day of trading 11 months ago, but it closed out the year in the teens.
The big markdowns opened the door for turnarounds this year, but neither company is giving investors a reason to get excited here. The good news is that both companies are still flush with cash from their stock offerings, and they are both putting some of that greenery to good use. Coupons.com and RetailMeNot announced this week that their boards had authorized the spending of $50 million and $100 million, respectively, on share buybacks. If the market can't spot a bargain, the two companies think they can.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends RetailMeNot. Try any of our Foolish newsletter services free for 30 days. Shopping for a good stock? Check out our free report on the Apple Watch to learn where the real money is to be made for early investors.
Worrying about your parents getting taken in by financial scams may not be the first concern that comes to mind as they approach their senior years -- but keeping an eye out for such scams should definitely be high on that list. According to new research by True Link Financial, seniors lose nearly $37 billion a year due to financial abuse. The three major classes of that abuse are:
$17 billion lost to exploitation. Technically legal but deceptive financial practices based on confusing language and unwarranted social pressures targeted at seniors that bilk them out of their money via incredibly poor deals.
$13 billion lost to fraud. Explicitly illegal scams like the "grandparent scam," where someone calls pretending to be the grandchild asking for money to get out of a jam.
$7 billion lost to caregiver abuse. Money lost to people whom seniors trust to take care of them and their needs.
Why It's Such a Huge Problem
Why is such financial abuse more prevalent among seniors? For one thing, as we age, our senses start to dull. Hearing is particularly affected, with about half of those older than 75 finding it difficult to hear. That's one reason the "grandparent scam" is so successful. As your sense of hearing diminishes, it gets hard to distinguish voices on the phone, which makes it easier for fraudsters with just a little bit of research to impersonate grandkids and scam grandparents out of money.
Another reason seniors are so susceptible to financial scams is that our ability to pay attention and concentrate also tends to wane as we age. That makes it easier for scammers to exploit seniors with deceptive practices based on confusing language. It gets harder as we age to hold all the pieces of a presentation together, so if it sounds good and is delivered nicely, it's harder to understand the parts that may make it a bad deal. That makes seniors more susceptible to exploitation through awful, though technically legal, deals.
How Can You Tell If It's Happening to Your Parents?
Unfortunately, people don't often catch the signs that their parents are susceptible to scams until someone has already taken advantage of them. While these scams might not always be preventable, here are some things you can look out for:
Past-due bill notices. If your parents start missing payments, it suggests that either their memory might be slipping or their finances are getting stretched too thin. Either way, it's a sign you should consider stepping up your vigilance of their financial situation, as they could be more susceptible to getting taken advantage of due to financial worry or memory loss.
Sudden changes in purchase behavior. Even if they're still covering their costs, if they start buying things that are out of character for them, you might want to step in and help get things under control. Strange purchase behavior is a sign that your parents are becoming more susceptible to sales pitches -- and at greater risk of getting taken advantage of.
Calls and junk mail offering sweepstakes and prizes (with some investment required). If your parents get lots of junk mail and phone calls offering them easy money or "winnings" if they send in fees or prepay taxes, then it's very likely they've been scammed before. Scam victims often wind up on a "suckers list," and their names and contact information get out to many such scammers, each looking for a cut of their money.
A sudden interest in reverse mortgages or other ways to raise cash. If your parents start considering a reverse mortgage, it's likely a sign that either their finances have become very tight or they're already under the influence of a scammer looking to make a huge score. Either way, you'll want to step in and understand the underlying issue to help them get back on track.
What Can You Do About It?
If your parents are already showing signs of dementia or other serious mental decline, you may need to petition a court to name you their conservator. That will get you the authority to take over their finances for them. Still, that can be an expensive and time-consuming process, so it's better to take steps in advance of that need.
To avoid those headaches, talk to your parents while they're still mentally sound and ask them to set you up as a durable power of attorney. With this legal document, you get the authority to manage their finances before their mental state declines, and because it's durable, the authority stays with you even as they decline.
You can also offer to help your parents manage their finances in today's digital age with online access to their bank accounts. If they're willing to let you see their accounts, you can monitor their activity and check for strange purchases, sudden declines in balances, or other indications of a potential scam.
Another great idea is to help them sign up for the National Do Not Call Registry to opt out of telemarketer calls. Not only does that cut down on legitimate telemarketer calls, but it makes it easy to tell which calls are scams. Honest telemarketers will respect the list (with the exception of calls from nonprofits and noncommericial entities, which are exempted), but criminals won't -- which makes it easier to identify those calls as scams.
It Can Be Tough to Step In -- but It's Worth It
If your parents are at risk of or are already actively being scammed, it can be embarrassing as well as expensive for them. And stepping in to help them may be one of the toughest things you'll ever have to do as their child. However, such scams can also put your entire family at financial risk, depending on what personally identifying information your parents might reveal to the scammers.
As tough as it might be, know that everything you do to help your parents avoid such situations assures their senior years are as comfortable as they can be. Helping them avoid or recover from scams may very well be one of the most important gifts you can give them.
Chuck Saletta is a Motley Fool contributing writer. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check outour free report.
If you've experienced the loss of your spouse recently, know that the tax code has ways to help you at this difficult time.
1. Filing Status
If your spouse died this year, you may still file a joint return for the year. This gets you the most favorable tax rates and the largest standard deduction (if you don't itemize).
You may also claim a full exemption amount for your late husband or wife regardless of when during the year the death occurred. For the first two years after your spouse's death, you can file as a "qualifying widow or widower if you have a child living with you who qualifies as your dependent." This filing status also lets you use joint-return rates, but you don't get an exemption for your late spouse.
Starting in year three, if you have a dependent child living with you, you can claim head-of-household status, for which tax rates are less favorable than for joint returns and qualifying widows and widowers, but better than the rates for single taxpayers.
2. Life Insurance
The proceeds you receive from a life insurance policy are income tax-free. It doesn't matter whether your spouse paid the premiums or his or her employer paid for the policy. Don't report the proceeds as taxable income.
3. Inherited IRA
Widows and widowers get a special break when it comes to individual retirement accounts inherited from a spouse.
Non-spouse beneficiaries must begin taking withdrawals (based on their life expectancy) in the year following the death of the original owner, or clean out the account completely within five years. (This rule applies to both traditional and Roth IRAs.) If your husband or wife named you the beneficiary of the IRA, however, you have another choice: You can claim the IRA as your own. If it's a traditional IRA, that means you would not be required to take minimum distributions until you reach age 70½. If it's a Roth, you'd never have to take distributions.
In some cases, though, it might make sense to treat the account as an inherited IRA rather than your own -- at least for a while. If you are younger than 59½, you can withdraw funds from an inherited IRA without paying the 10 percent penalty for early withdrawals. (This penalty is often of little or no threat to Roth IRAs.) If you'll need some of the money in a traditional IRA before age 59½, you could treat the IRA as an inherited account until you reach that age and then claim it as your own. (Learn more about what happens when a spouse inherits an IRA.)
4. Stepped-Up Basis
At Kiplinger, we call this the Angel of Death tax break. The tax basis of most assets you inherit from your spouse is stepped up to the property's value on the day he or she died. The exception to this rule applies to retirement accounts, discussed above.
Since the basis is the amount from which gain or loss is figured when you sell the asset, this means that tax on any appreciation prior to the death is forgiven. Say, for example, that your husband had stock in a brokerage account for which he had paid $10,000 but was worth $50,000 when he died. Your basis would be $50,000. Only if you sold the stock for more than that would you owe any capital gains tax. If you sold it for less than $50,000, in fact, you would have a tax-saving capital loss. If you and your spouse owned investments jointly, at least 50 percent of the basis is stepped up to the date-of-death value. If you live in a community-property state, 100 percent of the value may be stepped up.
5. Rental Property
If you inherit rental property from your spouse, note that the step-up in basis discussed in the previous point will increase the depreciation deductions you may claim on the property. The higher basis needs to be cranked into your calculations if you continue to rent the property. It will also reduce taxable capital gains when you sell the property.
6. Selling the Family Home
There's a special rule for widows and widowers who sell the family home within two years of the day their spouse died. Single homeowners can take up to $250,000 of profit on the sale of a home tax-free. For married couples, the maximum tax-free amount is doubled to $500,000. To qualify for this break, you must have owned and lived in the house for two of the five years leading up to the sale.
But if you and your spouse met the ownership and use tests before his or her death, you get to use the full $500,000 exclusion if you sell within two years of your spouse's date of death. You may not need to rush to sell to protect the profit. The stepped-up basis rule discussed earlier would also limit the possible taxes on home-sale profit.
7. Tax-Free Inheritance
Property you inherit from your spouse is generally income tax-free. But there are major exceptions. If you inherit or are named the beneficiary of a retirement account (such as an IRA or 401(k)), withdrawals will be taxed to you just as the money would have been taxed if your spouse were alive and withdrawing the cash. When a traditional IRA is involved, for example, withdrawals are fully taxable (except to the extent, if any, that your spouse had contributed after-tax dollars to the account). If it's a Roth IRA, however, withdrawals are generally tax-free. If you are the beneficiary of a commercial annuity purchased by your spouse, you'll owe tax on a portion of each payout-just as your spouse would have.
When it comes to relationships, love doesn't always conquer all. Financial matters have the ability to cause friction in an otherwise happy couple, leading to repeat arguments that can eventually kill the relationship. Studies have shown that married couples that argue about money are more likely to divorce, even if the disagreement pops up only once a month.
Short of running a credit check before every first date, there isn't much a person can do to ensure someone is financially stable before starting a relationship. There are many people who have great jobs and impressive incomes, and yet they are struggling with a mounting pile of debt. Some may even present themselves as having a great deal of disposable income, which means by the time you learn about their behind-the-scenes debt, you're already in too deep. What should you do if you find yourself in a relationship with someone who has substantial debt?
Why You Might Be Tempted to Pay Off Your Partner's Debt
Once a relationship begins to get serious, many people ask the question, "Should I help pay my significant other's debt?" This often comes into play when a couple considers taking on a major financial obligation together, such as purchasing a house. Having low debt and a great credit score becomes more important than ever, which could lead a person to want to pitch in and help their partner.
In recent years, many Americans have fallen on temporary tough times. One job loss can wipe out a person's savings and lead to tens of thousands of dollars in credit card debt. Whether you met someone after he had recovered from tough times or those tough times occur after you met, should you pay a significant other's debt? Unfortunately, the issue is never black and white. There are several factors that come into play when making that decision.
The Underlying Issue That Led to Debt
At its heart, a significant other's debt goes much deeper than the overdue notices coming in. How does he respond to financial troubles? The key to a relationship's survival amid financial troubles is whether or not they each share the same basic philosophies when it comes to savings and spending. If one partner spends every dollar as soon as it hits the bank account and the other is thrifty, eventually the separate views can tear a couple apart.
Another thing to consider before paying off a significant other's debt is the nature of that debt. Was it incurred as part of a brief bad spell or did the person just irresponsibly blow thousands of dollars? If the debt is a result of someone not paying court-ordered bills like judgments or child support, the underlying issue becomes even more important to the future of your relationship.
Debt and Married Couples vs. Unmarried Couples
Your decision regarding paying off a significant other's debt is likely very personal and unique to you. Your friends and family may weigh in on the issue but even a financial adviser is likely to ask a few qualifying questions before offering advice. A married couple may have more protections in place if the relationship doesn't work out, since courts will look at debts and assets and divide them according to local laws. An unmarried couple won't have those protections and if the relationship ends, you may regret putting significant money toward the other person's debt.
Perhaps the biggest problem with paying someone else's debt is that it's only a temporary measure. The indebted person may even be currently adding more purchases to the bottom line. It's not enough to simply throw money at the problem, and this could result in the problem just getting bigger and harming both partners instead of just the person with debt. It would be far more beneficial to try to help the indebted partner to pay off the debt in a planned manner, using the income he brings in each month. You could even offer to pay all of your regular shared bills in the meantime to allow the person to focus on getting those debts paid off.
4 Signs You Shouldn't Take On Your Significant Other's Debt
While there are some instances where paying off a partner's debt is a good idea, there are many more instances when you should refrain. Here are a few situations where it's a bad idea to pay off your significant other's debt.
It puts you in debt. Never take out a loan or wipe out your savings to cover your significant other's debt if it puts you in a precarious financial position. You should only consider helping when you can do so without putting yourself in debt or eating into your emergency fund.
Your significant other is hiding things. If your partner isn't completely transparent about his financial situation while asking for money, don't agree to help.
Your intuition tells you no. While experts and loved ones can advise you, your inner voice likely tells you more than they can. Also, if everyone in your life is against lending your partner money, you probably should question why there's such opposition.
It threatens your own credit. This includes co-signing on loans, which can cause long-term damage to your own credit.
Within a marriage, helping with a spouse's debts may be necessary in order to qualify for large shared purchases like a new home. However, for couples that aren't legally bound, any payments you make toward the other person's debts could be lost if for some reason your relationship doesn't work out, or could divert your money away from your own important financial goals. Be sure you know the risks before making the commitment to help.
Paul Sakuma/AP
SAN RAFAEL, Calif. -- Target has agreed to pay nearly $4 million to settle a lawsuit filed by Northern California prosecutors that alleged the retailer charged higher prices than advertised, prosecutors said Tuesday.
The lawsuit also alleges the Minneapolis-based company misrepresented the weights of products and failed to ensure that price scanners at checkout stands were accurate.
A fundamental consumer right is to be charged no more than the lowest advertised price.
Marin County District Attorney Ed Berberian said his office filed the lawsuit in conjunction with counterparts in Contra Costa, Fresno, Santa Cruz and Sonoma counties, and the San Diego city attorney's office.
"A fundamental consumer right is to be charged no more than the lowest advertised price. Consumers should always notify retailers immediately when they are being overcharged and demand to be charged only the lowest advertised price," Berberian said.
Target spokesman Evan Lapiska said some of the problems stemmed from promotional signs not being removed immediately after a promotion ended and the company has taken steps to fix that and other problems.
Target, the second-largest discount retailer in the U.S., also agreed to increase the number and frequency of price-accuracy audits at California stores, train its employees to make sure prices are accurate and hire an outside auditor to make sure weights are accurate in Target-branded products.
"Any guest who feels she or he was overcharged for an item should bring their receipt to the guest service desk, where any pricing inaccuracies will be resolved," Lapiska said.
Moment Editorial/Getty ImagesBy Doina Chiacu, Sruthi Ramakrishnan and Martin Howell
WASHINGTON -- U.S. President Barack Obama singled out office supply giant Staples (SPLS) as undercutting his health care reform law and said large corporations shouldn't use the health insurance issue as an excuse for cutting wages, the news website BuzzFeed reported.
"It's one thing when you've got a mom-and-pop store who can't afford to provide paid sick leave or health insurance or minimum wage to workers ... but when I hear large corporations that make billions of dollars in profits trying to blame our interest in providing health insurance as an excuse for cutting back workers' wages, shame on them," Obama said in an interview with BuzzFeed.
The Affordable Care Act requires companies with more than 50 employees to pay for health insurance for people who work 30 hours a week or more. Reuters has reported that some businesses are keeping staffing numbers below 50 or cutting the work week to less than 30 hours to avoid providing employee health insurance.
[W]hen I hear large corporations that make billions of dollars in profits trying to blame our interest in providing health insurance as an excuse for cutting back workers' wages, shame on them.
Staples, the No. 1 U.S. office supplies retailer, has told its employees not to work more than 25 hours a week, according to a Buzzfeed report Monday.
Staples CEO Ronald Sargent brought home $10.8 million in total compensation in 2013. The company reported net profit of $620.1 million in net profit through Feb. 1, 2014.
"There is no reason for an employer who is not currently providing health care to their workers to discourage them from either getting health insurance on the job or being able to avail themselves of the Affordable Care Act," Obama said in the interview Tuesday.
"I haven't looked at Staples stock lately or what the compensation of the CEO is, but I suspect that they could well afford to treat their workers favorably and give them some basic financial security, and if they can't, then they should be willing to allow those workers to get the Affordable Care Act without cutting wages," Obama said.
Staples representatives weren't immediately available for comment Tuesday.
Nearly 7.5 million people have signed up for 2015 Obamacare health plans through HealthCare.gov with demand increasing as the Feb. 15 enrollment deadline approaches, according to government figures.
Overdraft fees continue to be big business for banks, despite a 2010 Federal Reserve rule preventing banks from automatically enrolling customers in overdraft programs.
The changes since 2010 include an increase in the median fee that customers pay for withdrawing more from checking than the account holds. They rose to about $30 in 2013 (a record), up from $29 in 2012 and $26 in 2009. This data is based on a survey of nearly 3,000 banks and credit unions by Moebs Services, an economic-research firm in Lake Bluff, Illinois, according to The Wall Street Journal.
Of course, your money mismanagement contributes to all overdraft fees, but banks aren't necessarily looking to help you stay in the black. Instead, some banks have policies designed to push accounts into the red whenever possible. Here are five sneaky ways banks squeeze more overdraft fees from their customers -- followed by what you can do to stop them.
1. Persuading You to Opt for Overdraft Protection
Let's start by talking about that 2010 Federal Reserve rule for a minute. Before its implementation, banks could automatically enroll customers in overdraft protection. Now, they must get customers to opt in. However, it appears some banks aren't being entirely transparent about what customers are getting into when they sign up for overdraft protection. According to a 2014 survey by the Pew Charitable Trusts, more than half of those who had overdrawn accounts didn't realize they had opted into a program that would result in fees.
2. Processing Largest Payments First
Another sneaky tactic is reordering your transactions so the largest items go through first. A representative of the American Bankers Association was quoted in Forbes as saying some banks do this to make sure large, important transactions such as mortgage payments make it through the account. But it seems like a highly convenient way to maximize overdraft fees.
That Pew survey also found that all 12 of the largest banks, in terms of deposit volume, either reordered transactions to run the largest first or reserved the right to do so. However, some banks, such as Citi (C), have since reversed course and are now processing transactions in order from smallest to largest.
3. Running Deposits Last
Along the same lines, some banks may credit deposits after they process payments. That may be true even if you have a deposit being made electronically, such as a payroll direct deposit.
The law requires banks to make direct deposits available the business day after the business day it's received, but there's nothing to stop them from running all your pending transactions and check payments before crediting the deposit.
4. Holding Checks
The Expedited Funds Availability Act allows banks to put holds on checks that could be as long as nine business days depending on whether your account is new, the size of the check and if you have a history of overdrafts.
That said, by law, banks typically must make $200 of a check available to you the next business day. However, that doesn't apply if you make your deposit via an ATM.
Either way, that isn't going to do you much good if you're going to be short more than $200 the next day. For example, if you need to cover $500 for the mortgage payment scheduled to hit your account tomorrow, depositing your $1,000 paycheck today isn't going to help you avoid an overdraft fee.
5. Basing Overdrafts on the Available Balance
This is perhaps the most frustrating sneaky trick banks use. Let's assume your significant other uses the debit card, and you realize that transaction is going to make your account overdrawn once it posts. You gather up some cash and rush to the bank. Your deposit is available immediately, and you deftly sidestep that $35 overdraft fee. Or have you?
Before you start celebrating, know that some banks will charge overdraft fees based upon the available balance, not the actual balance. As a result, your actual balance may never go negative, and the bank could still charge you an overdraft fee because of that pending transaction.
How to Protect Yourself From overdraft fees
Sneaky bank fees can make it hard to keep your account in the black, particularly if you are living paycheck to paycheck. But here are a couple of suggestions to help keep your overdraft fees in check.
Opt out of overdraft protection. Even if you already opted in, you can change your mind. Opting out means you might have the embarrassment of a declined transaction, but do you really want to pay $35 to save face in front of a store clerk you may never see again?
Balance your checkbook daily. In the electronic age, balancing the checkbook might seem like a quaint idea. However, there is no better way to track your balance and keep your account out of the red.
Keep a checking account cushion. Move some of your savings to your checking account to act as a cushion, but don't write that amount in your checkbook or account ledger. Pretend that money isn't there so you aren't tempted to spend it.
Use a savings account for overdrafts. Some banks and credit unions will let you link your checking account to a savings account. Then, if your checking account goes negative, it will pull from your savings to cover the balance. Some institutions offer this option for free while others charge a fee. However, any fee is typically less than what you would pay for an overdraft.
Link to a credit card. Likewise, you may be able to link to a credit card to act as a backup to your checking account. However, use extreme caution with this method. If you already have shaky finances, the last thing you need is more credit card debt.
What do you think of bank overdraft policies? Are banks playing fair? Tell us what you think in the comments below or on the Money Talks News Facebook page.
Matt Rourke/AP
Fans of premium brews will get a new option at Starbucks (SBUX) next week. Baristas will begin offering coconut milk as an option in patron beverages starting on Feb. 17 after a successful test late last year.
Starbucks Single Origin Sumatra Coconut Milk is vegan-friendly, made with coconuts from the Indonesian island of Sumatra. It is being added after years of customer requests for a non-dairy milk option beyond soy.
The suggestion to add a new option originated on MyStarbucksIdea.com, a Starbucks site that, as its name suggests, compiles member ideas. Fellow Starbucks fans can chime in with comments on the suggestions as they vote up the ones that they feel the chain should embrace the most. Many companies encourage the submission of ideas from the public, but you won't see too many companies that democratize the process and make it as transparent as Starbucks does.
Scrolling through the site, you'll see hundreds of suggestions for an alternative to soy, with almond or coconut milk as the two most popular requests, ultimately voted up by tens of thousands of visitors. Starbucks went with coconut over almond as an option for its hot, iced and Frappuccino beverages, arguing that it had fewer allergen challenges.
It Doesn't Fall Far From the Tree
Some might argue that adding yet another option will slow down the lines during peak morning hours, but Starbucks has found a way to excel despite its perpetually widening menu. Given its large arsenal of bases and syrups, baristas can combine ingredients to concoct as many as 170,000 offerings.
McDonald's (MCD) gets called out for blowing up its menu -- from 80 items to 125 in the past few years -- but Starbucks opening up the flavor wheel doesn't appear to be turning off java junkies. Starbucks announced that comparable-store sales soared 5 percent in its latest quarter relative to the prior year's holiday period.
Strong sales at Starbucks may suggest that it shouldn't fix what isn't broken, but it's also the chain's responsiveness -- acting quickly in the past to do everything from stamping out a controversial red food coloring to eliminating some breakfast sandwiches that carried unsavory scents -- that has kept it on top.
It probably also didn't have much of a choice. Rival Dunkin' Brands (DNKN) began offering almond milk back in September. Starbucks began testing coconut milk in select stores a month later. Soy is a workable alternative to traditional milk for some who may be lactose intolerant, but with some of those people also having a soy allergy, it was just a matter of time before Starbucks embraced almond or coconut as a non-dairy milk choice.
Dunkin' going with almond milk last year probably steered Starbucks toward coconut. No one wants to be branded a copycat. After topping $17 billion in revenue over the past year, Starbucks is riding healthy momentum as it heads into 2015, ready to climb a coconut tree to make itself more appealing to an even wider audience.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends McDonald's and Starbucks, and owns shares of Starbucks. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool'sone great stock to buy for 2015 and beyond.
Frequent selfie posters are sometimes labeled as vain or self-centered. But thanks to a new app, there's another word that could be used to describe these social media mavens -- profitable.
After starting off with in-store photo booths that let consumers take pictures of their outfits, post them to social media and let other users shop their look, tech company Stylinity last week launched a mobile app that makes it quick and painless to shop user-generated images from the palm of your hand.
Fashionistas simply snap a photo of their ensemble, use a barcode scanner to pull up each item's information and share the image on a social network such as Facebook (FB). Each product in the photo is tagged, so that by clicking a button that says "I Want This," interested shoppers are directed to the respective retailer's Web page.
What we're doing ... is removing friction from path to purchase.
Users earn rewards points for uploading images to the app or for shopping another user's look. These commissions can be as high as 20 percent of the sale, depending on the retailer's relationship with Stylinity, and can be redeemed for cash, products or other perks. Stylinity is working with 180 retailers, including Barneys New York, Urban Outfitters (URBN), Nordstrom (JWN) and Ann Taylor (ANN).
"What we're doing ... is removing friction from path to purchase," said Tadd Spering, founder and CEO of Stylinity.
A recent report by PricewaterhouseCoopers highlighted the importance of social media for retailers. According to the firm's global online survey of nearly 20,000 shoppers, 62 percent of respondents said that interactions on social media had led them to buy more in "most" or "some" cases.
It also found that more than one-third of shoppers follow some of their favorite brands or retailers on social media.
Still, the road to making the platform profitable has been largely unsuccessful for retailers, who get only about 1 percent of their sites' visitors from social media pages, according to IBM (IBM). Some independent companies, however, have made significant strides for their retail clients.
One such company is Curalate, which through its Like2Buy platform makes Instagram shoppable for its nearly 200 retail customers. According to the visual marketing and analytics firm, people who use the tool click through on Instagram posts that utilize it 65 percent of the time. These users also spend 30 percent more time on a retailer's site than a traditional mobile visitor.
Social media platforms are also looking for ways to drive profits for retailers. In September, Twitter (TWTR) announced that it would test a "buy" button, allowing shoppers to purchase items directly from a Tweet.
Spering declined to share specifics on Stylinity's user base or number of posts, but said the platform has seen 19 percent average weekly user growth in the last three months. He said he's bullish on the outlook for social media in 2015, particularly as retailers begin to tap into the potential of user-generated content. That's because many shoppers find this type of content more trustworthy than posts coming straight from the brand, he said.
"I think it's going to be a great year for social commerce," Spering said.
Get to work in your kitchen, and chances are at one point you'll need Pyrex. Not just any oven-safe glass dish, but a Pyrex -- a name synonymous with baking. One of the few brands to reach iconic status in the American kitchen, Pyrex has become the symbol of a cooking need met with a practical solution, which accounts for the 40 million products sold annually.
The brand has been a part of American homes for 100 years, since, as legend has it, Bessie Littleton asked her husband to bring home a replacement for her broken casserole dish. Luckily for Bessie, her husband was Corning (GLW) glass scientist Dr. Jesse T. Littleton, who had access to extremely strong glass materials. To please his wife, Dr. Littleton sawed off the bottom of a battery jar -- a glass container similar to a canning jar that contained ingredients for battery power -- and the first Pyrex product was made. The accidental invention inspired Corning to launch a bakeware line called Pyrex in 1915.
Today, Pyrex is produced at a 22-acre plant in Charleroi, Pennsylvania. At different times throughout the company's history, Pyrex made tableware and cups for Hilton (HLT) hotels, plate gifts for bank giveaways and intricately painted glass coffee carafes among other collectibles.
In total, 80 million of the nearly 120 million American households contain a Pyrex product, making Pyrex the cornerstone brand of owner World Kitchen's portfolio. Other World Kitchen products include Corelle, CorningWare, Chicago Cutlery and Baker's Secret, which are primarily produced outside of the U.S.
Along the Monongahela River, the quiet town of Charleroi watches over the 100-year-old Pyrex plant from the hillside. In what used to be a booming industrial area sustained by steel mills and coal mines, Pyrex has now become the No. 2 employer in the town of 4,000, second only to the local hospital system. The plant is open 24 hours a day, pushing out the glass products we've all come to rely upon.
Brett McGinnisChapter 1: The Fire Within
A mountain of crystal blue shards from cracked bowls and measuring cups shines against a concrete barrier. The energy taken to break the glass -- a two-second fall off a conveyor belt, a slip of the hands -- is no match for the raw power needed to melt the pieces to create a new product.
The broken glass graveyard at Pyrex reflects an industrial work ethic -- a little rough around the edges, but glistening with potential. The glass is solid and strong, and clear and pure through and through. With a little work, the discarded pieces will be reborn.
Like the pile of cracked glass, not all manufacturing stories are pretty. They are filled with challenges and triumphs, ups and downs throughout the factory's lifecycle, but at the heart, the truly successful products stand the test of time.
Built in 1893 as Macbeth Glass, the Charleroi glass plant merged with Thomas Evans in 1895 to become the Macbeth-Evans Glass. Corning purchased the plant in 1936, with World Kitchen taking over in 1998.
Over 300 people earn their living at the plant, most originally from the Mon Valley. Almost every employee you encounter says "welcome to the home of Pyrex" and identifies the word Pyrex with "pride."
Brett McGinnis
Mike Pascanik, 60, is a hockey official in the evenings and an equipment engineer during the day. He may meet the retirement age requirement, which would allow him to lace up his skates on a daily basis, but even after calling Pyrex home for over 38 years, he's not done yet. "I'll work here as long as I'm having fun," he said.
Marty Pappasergi, a 37-year veteran of Pyrex, oversees one of the first and most important processes: batching. Batching weighs the right amounts of raw materials, also known as cullet, for each product. A scale fills, with a digital weight machine beside it. Mix is introduced into the hopper, reaches its set point and settles before moving on to the melting process. Pappasergi watches the numbers intently. He may look casual in his Pittsburgh Pirates baseball cap, but realizes the seriousness of his position. "It's like making a cake," Pappasergi said. "If you don't prepare the mix properly, the cake won't rise. If you mess up here, the quality of the product decreases."
After batching, the mix is transported by handling and rides an elevator to another building housing the melting facility. You have to duck under conveyor belts and low hanging pipes, following a narrow path, to get through to the blazing manufacturing process. Within the cold, gray nest of machinery lays the beating heart of the Pyrex plant, what employees fondly refer to as "the tank." The tank holds up to 200 tons of molten glass, sent out to four arteries or product lines.
The tank begins the transformation process, liquefying cullet at up to 2,000 degrees Celsius. The tank takes up to a week to heat and for that reason operates 24 hours a day, seven days a week, with employees continuously monitoring temperatures at its core.
The tank drops a "glob" of intensely hot, glowing melted glass, down a chute or product line. The glob then lands in a rotating circle of molds. From there, a jet of targeted flames blast to melt and press the glass into a mold shape. A hose descends to suck up the molded piece, still over 1,000 degrees hot, and places it onto a fire polisher, blasting spouts of heat to smooth rough edges. The open flames burn bright and hot, causing the eyes to squint and water. Goggles are a necessity.
Fire is the heart and soul of Pyrex, similar to the oven creating sustenance in a kitchen, turning a wet, floppy brownie mix into a firm, pliable treat. Because the bakeware is born into such intense conditions of 1000 degrees and more, it can do the simple job of letting the food cook evenly while withstanding much lower oven temperatures.
The heat tempering process is what makes Pyrex so durable, and why its glassware has sustained over 100 years of use. The testing of bakeware at extremely high temperatures prepares it for dependable use in the kitchen at a lower energy level.
With all of the flames creating hardy products, it is only fitting that over a dozen firefighters work here -- including Bill Castner Jr., the union safety coordinator who moonlights as a fire chief in North Charleroi. Castner, 33, who went to college to become a meteorologist, found it difficult to find employment in his industry and instead followed his father to the Pyrex plant. He took on the newly created position of union safety coordinator three years ago to utilize his skills as an EMT and firefighter.
"It's very gratifying -- getting everyone to and from work with ten fingers and toes," Castner said. Because of Pyrex's safety record inside the plant, they are able to produce up to 52 million sturdy pieces a year -- almost 22 lasagna pans a minute.
Brett McGinnisChapter 2: 100 Years of Pride
Over time, the culture of cooking evolves. Microwaves heat meals in minutes, rather than hours in a conventional oven. Instant mashed potatoes find their way to the table without any need for peeling and boiling. Families also have less time to prepare and cook daily dinners, and a one-pan feast can be a huge time-saver. Yet Pyrex products remain mostly the same.
In 1915, the first pie plate came off of the Pyrex line. The plate remains largely unchanged, with the same rippled edge. It cooks with the same even heating method, although instead of a pie, the plate may now take on a warm nacho or spinach dip. The first measuring cup debuted in 1925, and with only one adjustment from two spouts to one, it's wrapped with the same classic red measuring lines. It is one of the most popular products in Australia -- where measuring cups are known as "jugs."
This year Pyrex will celebrate its 100th anniversary. Even with millions of rarely changed pieces sold in 50 countries, the company continues to focus on innovation.
"The greatest challenge that we've had at Pyrex is frankly meeting the demand the consumers have put on this brand," said Kris Malkoski, president of North America for World Kitchen. "Our business has grown exponentially over the past few years. I think it is driven by the fact that we are really listening to what consumers want as well as looking at what's worked in the past and bringing a steady stream of innovation to the marketplace."
The company is celebrating its heritage by catering to enthusiasts who collect iconic pieces from the brand. Many Americans share a common memory of gathering around the dinner table to eat some kind of casserole out of a Pyrex dish. The company recognizes the tradition and remembers to respect its roots.
"When someone says they love a brand, what does that mean?" said Mike Scheffki, brand lead for Pyrex. "It goes beyond product. This is the only dish I trust to make my Thanksgiving Day meal, and when people tell you this they start welling up, because it strikes such an emotional chord with them, and you can't help but get sucked into it."
Charleroi employees remain fiercely loyal to the brand, proudly representing even outside the factory doors. "When we go to Walmart or Target, and it's next to a competitor, we make sure the Pyrex is neatly stacked, make sure boxes are straight. We are never told to do that," Castner said. "It's just something we all picked up."
Brett McGinnisChapter 3: Built to Withstand Time
Like the families who embrace the Pyrex brand, so do the employees who have a hand in creating the products.
"We have many multigenerational employees here," said John Lackovic, plant director. "Pyrex pride goes down through each generation, wanting to do it as good as or better than those before them." You can tell that Lackovic loves his job almost as much as the baked ziti with bacon he cooks regularly in his Pyrex ware. Growing up in a restaurant family, Lackovic left the area to attend Clemson University to pursue a degree in electrical engineering. He came home to Pyrex with the hope of giving his wife and three daughters a better life.
"It's a family-friendly environment," he said." "The culture and values of the company lend to the balance. One of our values is to be accountable. The job affords the opportunity for freedom outside of work when you are doing those things well." At Pyrex, when you are doing your job correctly, the lines run smoothly, and everyone gets to go home at a decent hour to their families.
Brett McGinnis
Lackovic leads the plant, but on a most humble level. He continuously refers to the Pyrex employees as a family and notes that teamwork is essential to their success. One of his mandates is overseeing quality control and improvement programs. "At the end of day when you can see them on the shelf at the store ... I know the effort that took to put that glass there. It's a very rewarding and proud feeling."
Most manufacturers can't seem to find a younger generation skilled enough to replace the retiring laborers. Fortunately Pyrex sees the opposite trend, with a constant influx of younger applicants.
Clint Cooper, 62, who will retire this December, oversees the apprenticeship program at the Charleroi plant. "Pyrex cannot hire enough people," he said. The plant currently runs at maximum capacity thanks to the popular new Snapware storage product.
World Kitchen bought Snapware five years ago, bringing a big boost to the Charleroi plant. The company brought production of the glass vessels back home from China. The reshoring acquisition created a lot of growth in Charleroi and set the plant production over capacity.
For the last 30 years, Cooper has trained and supervised apprentices, many of whom have gone on to a managerial level. The apprentices are enrolled in a state-certified program that can take up to two years and up to 4,000 hours to achieve journeyman status. The program teaches students how to run and troubleshoot machines. From there ,they can go on to become a master in skills such as forming, welding and the like. "The coolest thing about this job is to pass on information," he said. "Skill never dies."
Joe Raedle/Getty Images
The only thing growing at RadioShack (RSHCQ) these days is its ticker symbol. The iconic small-box retailer of consumer electronics filed for bankruptcy earlier this month, and in doing so had to go from RSH to RSHC as it got booted from the New York Stock Exchange, and then to RSHCQ, adding a Q at the end to designate that it's a publicly traded company under bankruptcy protection.
The chain filed for Chapter 11 -- bankruptcy reorganization -- and not the Chapter 7 designation that calls for a complete liquidation. It will now be up to the chain's creditors and the legal system to hash out what becomes of the chain.
The initial prognosis is pretty grim. The initial proposed plan is to sell between 1,500 and 2,400 of its roughly 4,000 domestic company-owned stores to Sprint (S) and RadioShack's largest hedge fund shareholder. It will then close the rest.
After seeing Borders, Circuit City and Blockbuster bow out of the market, it's easy to assume that this is the end for RadioShack. It might very well be, but it's not as if RadioShack is going to disappear right away. This isn't the end, even if it may be the beginning of the end.
Life After Chapter 11
RadioShack's brand will live on for now. The bankruptcy filing doesn't cover franchisee-owned locations, including the roughly 1,000 franchise dealer stores operating in Mexico and throughout Asia. They will stick around. It's also worth noting that the company-owned stores that will not close will continue to fly the RadioShack banner. Sprint's role is to create a "store within a store" concept in most of the surviving stores, where it will take up just a third of the retail space to service its Sprint and Virgin Mobile brands. The balance will be devoted to conventional RadioShack offerings.
This may not even be the way it plays out. Going the bankruptcy reorganization route to trim its debt requires court approval for the asset sale, and that includes opening up the bidding floor for other parties that may want to submit offers for RadioShack's assets.
This doesn't mean that shareholders and shoppers can wait it out. The stock may be trading for pennies these days, but a bankruptcy makeover may wipe them out completely with full ownership going to the creditors.
Consumers also probably don't want to snooze through the process. The stores that are closing just kicked off their liquidation sales with some serious markdowns to be had. Like most liquidation sales, the prices on remaining inventory will get even better as we get closer to the end. If you happen to have an old RadioShack gift card lying around, you may want to hurry up and use it. A judge on Monday approved the request that RadioShack honor the store credits through March 7.
Sprinting to the Future
The chain's long-term survival remains dicey. Even if it's able to restructure its debt and improve its leveraged situation, we're still talking about a concept that's broken. It hasn't posted a profit since 2011, and it's not a matter of being able to cover its debt payments. RadioShack's posted three years of widening operating losses.
RadioShack has a popularity problem. Sales and comparable-store sales have fallen every year since 2010. The chain's big gamble a couple of years ago to emphasize wireless offerings hasn't paid off. The company was hoping that it would hold up better than stand-alone stores run by individual carriers, and even though Best Buy (BBY) seemed to validate the strategy by rolling out Best Buy Mobile stores doing the same thing, it didn't pan out. Consumers tend to prefer a particular wireless carrier, giving this Sprint-RadioShack dual branding some potential legs.
Yes, there is hope within the "store within a store" concept where both brands can win. RadioShack may attract Sprint customers at the store as they tend to their wireless needs, and Sprint can gain subscribers by appealing to RadioShack customers. Trying to be the master of all carriers didn't work, and Sprint -- as the country's third-largest wireless provider but perhaps its hungriest -- could be just what the chain needs to buy itself more time to turn things around.
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. Want to make 2015 your best investing year ever? Check out The Motley Fool's free report on one great stock to buy for 2015 and beyond.
Joe Raedle/Getty ImagesA customer meets with an insurance adviser from UniVista Insurance in Miami.By RICARDO ALONSO-ZALDIVAR
WASHINGTON -- Ahead of a Sunday deadline, consumers are stepping up to enroll for 2015 coverage under President Barack Obama's health care law, administration officials said Wednesday.
The number of people signing up jumped last week in the 37 states served by the federal insurance marketplace, to nearly 276,000 compared with about 180,000 the previous week, according to the Health and Human Services department.
Although enrollment centers haven't seen the same long lines as last year, volunteers from Austin, Texas, to Columbus, Ohio, report a surge of interest this week, not yet captured in official numbers. And the revamped federal HealthCare.gov website so far has avoided last year's technology meltdown.
But not everything was rosy:
Average monthly premiums rose by an average of 8 percent in the federal market states, according to data the administration released earlier in the week. Obama's law provides taxpayer-subsidized private insurance for people who don't have access to coverage on the job. That 8-percent increase reflects the "list price" before subsidies. After subsidies, the average monthly premium that consumers themselves pay increased $23 over last year.
About 200,000 people who could not clear up lingering questions about their immigration and citizenship status will soon lose coverage, officials said Wednesday. That's on top of more than 100,000 who lost coverage last year for similar reasons. Coverage under the law is only available to citizens and legal residents, but advocates for immigrants say the process for validating legal status has been riddled with errors.
Higher premiums and immigration issues may be the least of the administration's worries.
Opponents are taking a case to the Supreme Court next month that challenges the validity of the law's subsidies in states that have not set up their own insurance markets, which is most of them. If the court agrees with the plaintiffs, at least 6.5 million people will lose subsidies for their premiums and other costs. Most would drop coverage.
Wednesday's enrollment report showed that 7.75 million people had signed up in the 37 states served by federal HealthCare.gov as of Feb. 6. That's not counting states that run their own insurance markets, among them California and New York.
All told, the numbers indicate that the administration seems to be on track to meeting its target of 9.1 million people signed up through the insurance markets nationwide by Sunday, the day the open-enrollment period ends.
That target represents only those customers who seal the deal by paying their premiums. Last year more than 8 million people initially signed up, but many didn't follow through with their payments. By fall, enrollment had dwindled to 6.7 million.
The 2015 sign-up deadline is 11:59 p.m. Sunday, Pacific time, in most states. States running their own markets may have different deadlines.
Federal marketplace consumers who try to sign up before the deadline, but aren't able to complete the process, will get a chance to do so within the next week or so.
The new details on premium increases, while revealing, may not be the final word on the subject. That's because of the complex workings of the law and its interaction with the income tax system.
Although the average premium after subsidies appears to have gone up by 28 percent from last year, that number may shift later on. Several million people who opted to automatically renew their 2014 coverage also continue to receive the same subsidy amount they were getting last year. As those returning customers update their income information, their subsidies for 2015 are bound to change.
If you plunk down some big bucks for organic chocolate this Valentine's Day, your sweetie may or may not be impressed.
Despite what some people say, such candy doesn't taste better just because the ingredients are organic, according to experts. The manufacturing process plays a major part.
Andy Ciordia, owner of The Secret Chocolatier in Charlotte, North Carolina, says consumers are most likely to notice that mass-produced chocolates using a cacao solution taste flatter than those made on a smaller scale and with natural ingredients.
The primary reason for purchasing organic chocolate is the social and environmental motivation.
Among the best-known organic brands are Dagoba from Hershey (HSH), Green & Black's from Mondelez International's (MDLZ) Cadbury and Newman's Own.
To be called "organic," a chocolate bar must consist only of certified organic ingredients. That means pesticides and genetically modified ingredients can't be used.
Other chocolates, including the high-end and artisanal kind, may use similar standards but simply lack the certification. Most of what you find at fancy chocolatiers isn't organic.
The certification costs money, which is one reason organic chocolate costs more.
You can pay still more if you buy from the growing number of bean-to-bar organic chocolate makers.
Acquiring beans from small co-ops and farms rather than the bulk market and the time-intensive way to produce a chocolate bar results in the big premium.
A typical 1.8-ounce bar made by Raaka Chocolate in Brooklyn, New York, for example, retails for $7.99, or $4.44 an ounce.
At a Walmart (WMT) store, though, you can find a 3.5-ounce organic Green & Black's bar for 94 cents an ounce. Ounce for ounce, that is still more expensive than what the chain charges for a premium Lindt bar, which isn't organic, at 71 cents or a giant bar of Hershey's Special Dark for 29 cents.
But bean-to-bar chocolate is likely to have only two or three ingredients, usually the beans and sugar, sometimes cocoa butter.
By contrast, a bar of Hershey Special Dark has sugar, chocolate, cocoa butter, cocoa processed with alkali, milk fat, lactose, soy lecithin, PGPR (emulsifier), vanillin, artificial flavor and milk.
A Matter of Principle
U.S. sales of organic chocolate and organic candy bars were up 16.5 percent in 2013, according to the latest Organic Trade Association data.
That is quadruple the growth rate for the overall chocolate market, says Curtis Vreeland, president of confectionery industry market research firm Vreeland & Associates.
However, he notes, the organic side represents only about 1 percent of the $20 billion U.S. chocolate market.
Perhaps that is because buying organic is more about principles than product.
"The primary reason for purchasing organic chocolate is the social and environmental motivation," says Carl Jorgensen, director of global consumer strategy-wellness for the branding firm Daymon Worldwide.
Amy Grey, 24, a writer for exercise bike retailer Spinning's website in Venice, California, says eating organic chocolate makes sense.
"You wash your fruit and vegetables to get the pesticides off before you eat them, but you can't really wash your chocolate to get rid of those chemicals," Grey says. "Organic chocolate means no pesticides and no harmful chemicals being put into your body."
(The author is a contributor to Reuters and DailyFinance. The opinions expressed are his own.)
NEW YORK -- U.S. stocks closed effectively flat in quiet trading Wednesday as investors waited to see what the outcome would be of an emergency meeting between Greece and the rest of the eurozone to discuss the country's finances.
Energy stocks were among the biggest decliners as the price of oil fell.
The Dow Jones industrial average (^DJI) edged down 6.62 points, or 0.04 percent, to 17,862.14. The Standard & Poor's 500 index (^GSPC) closed flat, down 0.06 of a point to 2,068.53 and the Nasdaq composite (^IXIC) rose 13.54 points, or 0.3 percent, to 4,801.18.
Once again, investors turned their eyes to Europe. Finance ministers from nations that use the euro held an emergency meeting in Brussels on Wednesday, the group's first opportunity to hear directly from Greece's new government.
Greece wants to renegotiate the terms of its international bailout, which has imposed years of punishing austerity on the country. The current agreement expires in late February. Speculation that Greece could be granted extra time to hold new negotiations lifted markets Tuesday.
"At the moment, it seems European leaders and Greece are willing to meet each other in the middle and this has comforted investors' concerns after the aggressive tone by Greek Prime Minister Tsipras over the weekend," Stan Shamu, market strategist at IG, said in a commentary.
One source of weakness in U.S. markets was energy stocks.
The price of oil fell back below $50 a barrel after the Energy Department reported that U.S. crude inventories rose by 4.9 million barrels last week to their highest level for this time of year "in at least the last 80 years."
Benchmark U.S. crude fell $1.18 to close at $48.84 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.77 to close at $54.66 in London.
Transocean (RIG), one of the world's largest drilling rig companies, fell 4 percent while Pioneer Natural Resources (PXD), another major oil exploration company, fell 4 percent as well. Both were the biggest decliners in the S&P 500.
In other energy commodities, wholesale gasoline fell 0.9 cent to close at $1.543 a gallon. Heating oil fell 1.9 cents to close at $1.814 a gallon. Natural gas rose 12 cents to close at $2.797 per 1,000 cubic feet.
U.S. government bond prices were little changed. The yield on the 10-year Treasury note was flat at 2 percent.
Gold fell $12.60 to $1,219.60 an ounce, silver fell 11 cents to $16.76 an ounce and copper lost a penny to $2.54 a pound.
What to watch Thursday:
At 8:30 a.m. Eastern time, the Commerce Department releases retail sales data for January, and the Labor Department releases weekly jobless claims.
At 10 a.m., the Commerce Department releases business inventories for December, and Freddie Mac releases weekly mortgage rates, 10 a.m.
These selected companies are scheduled to release quarterly financial results:
With Valentine's Day quickly approaching, there's no better time than the present to kick it up a notch in the romance department. Although plans to celebrate often stir indulgences in extravagant lingerie, exotic fragrances and creating the perfect candlelit setting, taking a closer look at the food you eat on Feb. 14 may have the biggest impact on your sex life. A wide variety of aphrodisiac foods are readily available, all claiming to have some type of "love power" due to their aroma, shape (hello, banana!), color or the chemicals they produce in the body. So, if your love life has been a little vanilla lately (also claimed to be an aphrodisiac), use this special day to get creative with the following five foods:
1. Chili Peppers
Chili peppers are one of the rare treats of the aphrodisiac food list. The spice is not only invigorating and stimulating, but its bright red color is considered a symbol of love by many. The shape is, well, self-explanatory. Most importantly, the chili pepper's effect on the body has actual scientific backing. The spice is known to increase pulse rate and induce sweating, mirroring sexual arousal. In addition, it stimulates the release of certain endorphins that play a role in sexual pleasure. This Valentine's, why not combine this aphrodisiac with number two on our list to create an incredible chili pepper chocolate treat (see recipe below)?
2. Chocolate
Originally found in the rain forests of Central and South America, chocolate has a long-standing association with love and romance. It was also nicknamed the "food of the gods" by Mayan civilizations. Scientific research on this delicious treat shows it contains phenylethylamine, a feel-good chemical that occurs naturally in the body when someone is happy or feeling passionate. It also contains tryptophan, a brain chemical that yields serotonin, which is known to produce feelings of elation. While dark cacao nibs are one of the rawest forms of chocolate, they can prove too intense for some palates. Dark chocolate or high-quality cacao mixes are great alternatives.
3. Oysters
The most celebrated of aphrodisiac foods, oysters have a reputation for fertility. Research shows they are high in zinc, which science has linked to increased sperm production. Oysters also contain two unusual amino acids - D-aspartic acid and N-methyl-D-aspartate, both known to trigger the production of sex hormones. Eating this libido-lifting treat raw ensures you get the greatest benefits of these amino acids, as cooking significantly reduces the amount.
4. Licorice
Licorice has been touted by some as enhancing lust, and its aroma is hailed for its stimulating effects. Alan Hirsch, neurological director of the Smell and Taste Treatment and Research Foundation in Chicago, led a study that tested the link of certain smells and their effect on sexual arousal. Licorice was a top contender, and Hirsch found the smell alone increased blood flow to the penis by 13 percent. Now, where's that box of Good & Plenty?
5. Coffee
While many of us reach for this stimulant to help with energy, did you know it also increases blood flow by raising the heart rate? In addition, according to a study titled "Coffee, Tea and Me," published in the journal Pharmacology, Biochemistry and Behavior, this aphrodisiac may help put females in the mood for sex. Energy and an increased desire for sex? Honey, turn on the Keurig (GMCR)!
Although Dr. Ruth likes to say that "the most important sex organ lies between the ears," it never hurts to go the extra mile when it comes to love. Get creative, and sample some of the above-mentioned aphrodisiacs this Valentine's Day to see if science really nailed it.
Spicy Chili Pepper Chocolate Bark
12 ounces dark chocolate (buy the best you can afford, preferably with a minimum of 40 percent cacao)
1½ tablespoons unsweetened cocoa powder
1½ tablespoons chili pepper
1 tablespoon Aleppo chili pepper (a slightly milder, fruit-ier pepper)
1½ tablespoons cinnamon
1 tablespoon sweet paprika
½ cup crushed cashews or almonds (optional)
Line a baking pan with wax paper. In a double-boiler, mix all ingredients until smooth. If you're using nuts, you may want to leave some aside. Once ingredients are mixed well, pour chocolate onto the wax paper in your baking pan. Spread out evenly. Top with the remaining cashews or almonds, if using. This is a time for creativity. Some people top the bark with chopped-up pieces of chili peppers, dried cranberries or cherries, etc. Chill for two to three hours, or until set. Break into 20 to 24 pieces, and store in an airtight container.
Despite their reputation, I'm sure Internal Revenue Service agents are very nice people. I'm equally sure that I really don't want them knocking on my door and asking for my shoebox full of receipts. You might feel the same way.
Unfortunately, there's no surefire way to avoid an audit, but you can take comfort in knowing that less than 1 percent of taxpayers were audited in 2013. And you can further reduce your odds by avoiding some common mistakes that could trigger a visit from the taxman.
Mistake No. 1: Hiring the Wrong Tax Preparer
The first mistake you could make might occur before you even get your name on the tax return. It's picking the wrong tax preparer.
Select someone who is incompetent or unethical, and they could spell big trouble for you. If the IRS audits one of returns they filed and finds significant problems, they could decide to audit all the returns that person prepared for the year or the past several years. Don't make this mistake. Read our advice on how to select the best tax pro.
Mistake No. 2: Saying Your Hobby Is a Business
Let's say you breed and sell dogs or sell blankets on Etsy or resell garage sale purchases on eBay (EBAY). At the end of the year, you realize you spent more than you made and decide to deduct a loss from your "business" on your taxes.
The problem is that if you do that for three or more years, the IRS is going to get suspicious. A business is something that makes money. If you haven't made money in three years, you may have a hobby, and the IRS doesn't allow business deductions for hobbies.
Mistake No. 3: Filing Certain Schedules or Forms
You might say the third item on our list isn't a mistake because, in many cases, there is no way to avoid it. For example, if you have a business, you need to file a Schedule C. And yet filing a Schedule C increases your chances of an audit. However, it would be a mistake to file a Schedule C if you have an unprofitable business that is more like a hobby. It may also be a mistake to file a Form 5213 if you're not sure.
Form 5213 prevents the IRS from auditing you for the first five years of your business, and it is typically used when transitioning a hobby into a business. It allows you to claim losses from your hobby-turned-business, no questions asked. That is, until the five years are up, and the IRS comes calling to see what you've been up to.
Mistake No. 4: Taking Questionable Deductions or Credits
Under the category of questionable deductions, the two that may be most likely to raise red flags are excessive charitable contributions and a home office. Under the category of credits, the Earned Income Tax Credit is most likely to get you in trouble.
If you donate a large percentage of your income to charity, be sure to keep careful records. Too many contributions, relative to your income, could be a problem. Of course, you definitely want to claim every deduction you're entitled, but you might want to think twice about inflating the value of those items you dropped off at the thrift store. Keep careful records of all donations and be sure to get a written acknowledgement from a charity to which you donate $250 or more a year.
As for the home office, again, take the deduction if you're entitled, but be ready to defend it if needed. The most important thing to remember is you can only deduct a home office if you use that space exclusively for business. In other words, a communal family desk can't be considered a home office because it's used for purposes other than your work.
While the housing market may be on the rebound now, years of depressed (and depressing) prices may have led some to convert their old home into a rental rather than selling it. If you've done that and found the rent doesn't quite cover the mortgage and taxes, you may assume you're entitled to take a deduction for the losses.
The next mistake that can lead to an audit is thinking you can keep secrets from the IRS. You may think the government won't know about the money you earned freelancing on the side, but if the company you worked for files a 1099, the IRS knows.
You may think you can keep your alimony checks a secret, but if your spouse is reporting those payments on their return, the IRS knows.
You may think the interest you earn from foreign bank accounts is between you and that country's bankers, but if those nice bankers are sharing information with the United States, the IRS knows.
Don't take the chance of getting caught in a lie. Claim all your income, and then the IRS won't have any discrepancies to note and one less reason to flag your return for an audit.
Mistake No. 7: Making Math Errors
The last mistake on our list is also the simplest mistake to avoid. It's math errors.
If can't add and subtract correctly, the IRS may start wondering what else you got wrong in preparing your return. Avoid this audit trigger by using tax software or an online program that will virtually assure the calculations are correct. If you earn less than $60,000, you can find free online tax prep through the IRS Free File program.
Have you been on the receiving end of an audit? Was it a thing of nightmares or really no big deal? Tell us about your experience in the comments below or on the Money Talks News Facebook page.
Senior discounts abound, making life in retirement a little more affordable. In some cases, though, older adults can get more than just a lower price -- some goods and services that will appeal to retirees come free of charge.
Here are eight great freebies that many retirees can enjoy. Some are available only for those who have reached a certain age. Others are accessible to people of all ages but can be especially beneficial to those living in retirement on a fixed income.
Free tax preparation. The Tax Counseling for the Elderly program offers free tax help to all taxpayers with an emphasis on those age 60 and older. Volunteers, who are certified by the IRS, specialize in pension and other retirement-related tax issues. Use the TCE locator tool to find a site near you. And AARP Foundation Tax-Aide offers free tax preparation for low- to moderate-income taxpayers, especially those 60 and older, at more than 5,000 locations.
Free preventive care. The Affordable Care Act of 2010 now requires health insurers to cover certain preventive care -- ranging from flu shots to cholesterol screenings -- without being subject to the policy's deductible or co-payments. Medicare beneficiaries can also get many preventive benefits without co-payments or deductibles. The list includes mammograms, screenings for cervical and colorectal cancer, pneumonia shots, and an annual wellness visit and personalized prevention plan. See Medicare's Preventive & Screening Services for a full list. You become eligible for Medicare at 65.
Free prescription drugs. Several supermarket pharmacies including Harris Teeter, Meijer, PriceChopper and Publix offer select antibiotics, diabetes medications and other generic drugs for free. You might need to enroll in a pharmacy loyalty program to receive the free drugs. Pharmaceutical companies also offer free and low-cost drugs to low-income people without prescription-drug insurance. You can use RxAssist database to find free medication through drug companies' patient assistance programs.
Free eye care. EyeCare America, which is a public service program of the American Academy of Opthamology, provides free eye exams and up to one year of care for any disease diagnosed during that exam for those who are 65 and older and haven't seen an eye doctor in three or more years. Visit EyeCareAmerica.org for program guidelines and to see if you qualify.
Free education. About 60 percent of accredited, degree-granting institutions offer tuition waivers for older adults, according to an American Council on Education study. In fact, several states have laws requiring state-supported institutes of higher learning to waive tuition for older residents (usually age 60 or 65 and older). Some tuition-waiver programs allow credit to be earned for the course, while others only allow the course to be audited.
Free museum admission. Most museums offer senior discounts for admission, but a few actually let older adults visit for free on certain days. For example, the Rubin Museum of Art in New York City gives people 65 and older free admission the first Monday of every month. Several museums offer free admission one day a month to residents of the city, county or state where they are located. For example, the High Museum of Art in Atlanta offers free admission for Fulton County, Georgia, residents the first Saturday of each month and the Art Institute of Chicago lets Illinois residents visit for free on Thursday evenings. And Bank of America cardholders can gain free admission to more than 150 museums on the first full weekend of every month.
Free state park admission. Several state park systems -- among them Maryland, New Hampshire, New York and Texas -- offer older adults free admission or a free annual pass. Some passes require a small processing fee, and some state sites aren't included in the admission-fee waiver.
Free transportation. Some localities and states let older adults ride for free on public transportation. For example, the Pennsylvania Free Transit Program allows people 65 years and older to ride bus, trolley and rapid-transit lines for free with a senior citizen transit identification card (which also is free). Some places, such as Orange County, California, offer free community transit programs that help older adults get to select locations.
Alamy
Investing is hard work. There are thousands of investment options, and there is a lot of bad advice that compounds the problem (pun intended).
One of the best things you want to invest is to stop, research and proceed with caution. It's a fantastic idea to ask those who live and breathe investing what they would do in your shoes. The key here is to get a variety of professional opinions, weigh your options and make the right decision for you and your family.
I asked some of the top financial bloggers to reveal their best investments ever. I've already written about some of my best investments -- and some of my worst. I've even shared how unconventional investing -- like investing in your personal development -- can pay huge dividends. I think it's time you hear from a few others.
1. Online Business -- Steve Chou
The best investment that I ever made was investing money in my online business and my blog. The main difference with investing in your own business as opposed to a stock or mutual fund is that you are in control of your own destiny. And the returns are infinitely greater if you succeed.
For example, we invested only $630 into our online business, and it has generated millions of dollars in revenue over the past six years. Returns of this magnitude would not have been possible investing in stocks or mutual funds. And the best part is that I know that this money will continue to flow as I long as put in the time and effort.
My best investment happened back in 2011. I was looking to take advantage of my TFSA contribution limit (a Canadian program), so I eventually settled on Parkland Fuel Corp (TSX:PKI) for its generous dividend of over 9 percent.
Since that time, I've continued to receive that same dividend, and the market price has doubled. So even now, that stock can provide investors with a dividend yield of over 5 percent. To top it off, since the income and gains are sheltered in a plan, I pay no tax, even at withdrawal.
My best investment is also one of my worst. I know that sounds contradictory, but making a big mistake early on shaped my future investments -- in a good way.
One of my first investments was opening a Roth IRA with a broker who sold me a very high-cost mutual fund with an expensive front-load fee. This was before I knew much about investing, low-cost mutual funds or the fact that you could buy investments without a load. I think I ended up paying the broker a few thousand dollars for the "privilege" of investing in his high-cost mutual fund, a fund that more or less tracked the S&P 500 (^GPSC) but charged management fees in excess of 15 times what I would have paid had I used a low-cost mutual fund provider like Vanguard or Fidelity.
How was this also my best investment? Two reasons: 1) I got started investing. You have to take action if you want to grow wealth, and 2) after I realized my mistake, I began researching and learning more about investing. I transferred my Roth IRA to a low-cost mutual fund and have saved thousands of dollars in unnecessary fees. I am now a much better investor than when I started. My advice to everyone is to get started today. You will make mistakes, but you will also get better as you gain experience.
The best investment I ever made was probably the first one I made, not necessarily because it was a great investment -- or the one that gave me the greatest returns -- but because it started the process of me actually investing for my (and my family's) future and thinking more critically about what I invested in. When I was first starting out in the working world after graduating college I knew next to nothing about investing or what investments might give me the greatest returns.
All I knew was that as I began my first job, I needed to start investing. I knew a lot of my friends weren't, but instead they were enjoying their newly earned paychecks with late nights at the bar or on expensive vacations. For me, I just knew that time would be on my side if I started investing from the get-go.
When I started my first job, I remember going to a company meeting for new employees who wanted information about investing in the company 401(k). I attended the meeting, and although I was thoroughly confused by what they were talking about (What's mutual about a mutual fund? Expense ratios? What's an index fund?), I jumped in full force and started investing 10 percent of my paycheck every two weeks based on the advice I was given by a sales associate.
Looking back a few years later, that company 401(k) that I started investing in was not a very good plan -- it was actually an investment plan offered by an insurance company that someone at the company thought would be a good idea. Unfortunately it was an annuity with high fees, and getting your money out of it proved to be a huge pain because you had to have the funds invested for a certain number of years -- otherwise you'd have to pay extremely high surrender fees.
So while the investment may not have been the best because of the high fees, expense ratios, and surrender fees, it was still my best investment because it got me thinking in a long-term mindset, and taught me a valuable lesson about making sure to know what you're investing in. Never invest in something you don't understand.
My best investment is a little offbeat. OK, maybe offbeat isn't a good description. It isn't a stock or a fund or even education or a business. It's my wife.
Being with her, besides being truly awesome on so many levels, has truly transformed my finances and my outlook on money. With her I'm part of a team that works towards particular goals. We have four kids that we need to budget money for, both now and later on. My wife gives me focus as well as purpose financially.
"But an investment," I can hear you asking? It takes time and work to see eye to eye with someone else and make sure your financial goals are in sync. It takes trust as well. You have to invest yourself in your spouse in order to do that.
Because of her, and our family, I have purpose when I'm putting money away for retirement. I don't spend as frivolously because I know the family has to come first. We help keep each other grounded and can nudge one another when one of us strays financially (in other words she helps me keep my spending in check).
I have invested in a lot of stocks and mutual funds that have performed very well, but without a doubt my best investment has been in paying down our mortgage debt.
While paying off your mortgage early isn't always the best investment from a numbers perspective, psychologically it often is. In my case, the (return on investment) that my wife and I have gotten from paying down our mortgage has been great. With no mortgage comes a wonderful feeling of security and freedom as well as the lifting of a huge financial burden. Add to that the comfort of knowing that our most expensive bill each month is our $150 electric bill, and I am fully convinced paying extra towards our mortgage has been our best investment to date.
Warren Buffett says we should be greedy when others are fearful and fearful when others are greedy. Easier said than done. That being said, my best investment was when I followed Mr. Buffett's advice.
In the depths of the 2008-09 financial crises, three industries were hit particularly hard: banking, transportation and real estate. Fear gripped many investors who sent prices of stocks in these industries down significantly.
At that time, I made three "greedy" investments. I purchases shares of Citi (C) (banking), Ford (F) (transportation) and the iShares Dow Jones U.S. Home Construction Index ETF (ITB) (housing). The purchases were not made based on a prediction of the market in the short-term. Rather, the investments were made on the belief that each would eventually rebound, resulting in outsized gains.
Over a two year period, these investments doubled in value. I only wish I had had the courage of my convictions and invested even more.
While I didn't think of it as an investment at the time, buying a 400-square-foot studio apartment in Manhattan 10 years ago proved to be -- mathematically, at least -- the best investment I ever made. I sold the teeny apartment recently for 70 percent more than what I paid for it back in 2004. I would not normally call buying a primary home a financial investment, but in NYC, over the long run and on average, home prices have appreciated nicely. Now if only I could use that equity to buy a bigger place in Brooklyn .
My best investment I ever made was listening to my father 10 years ago and finally investing into my 401(k). It was the first time in my life I saw money actually pile up, and once I realized employers then give you money on top of what you put in, I was hooked. My pot grew from $500, to $5,000, to $50,000 and right on up to $200,000 before I left to go work for myself. Compounding is no joke with investing, and especially when you get free matches on top of it!"
My best investment to date was probably my very first investment. I started buying shares of Walmart stock through my grandpa when I was just a kid in the '80s. Although the shares did earn me a nice return when I sold them years later, the bigger benefit was that it got me investing at an early age.
I used to check the WMT stock quotes in the paper every morning before heading to school and would jump for joy every time the stock would split. Not only was it a neat experience to share with my grandfather, it was also great exposure to investing concepts and how the stock market worked.
As I got older I learned about the benefits of diversification and started investing my money into mutual funds. As an adult, not all of my investing decisions have been perfect, but I'm definitely glad that I started putting money away when I was young and learned some good lessons about risk and reward.
Jeff here again. Hey, if these stories have inspired you, I encourage you to take action. Focus on one or a couple that make sense for your financial situation.
There was a common piece of advice in these stories -- did you catch it? Start investing early. The earlier you start, the more time you'll have to let compounding work its wonders. So, how are you going to start investing?
MJTH/Shutterstock
Valentine's Day is an opportunity to express your love and appreciation for your significant other. Some men believe flowers, Champagne or a dinner out shows that they care, yet often what women truly value in a relationship is intimacy. I have observed that men, in general, are open to both partners sharing their wants, needs, desires and vulnerabilities in the bedroom, but when it comes to sharing those same feelings and emotions when discussing finances, Romeos can turn into the money-equivalent of frigid.
The next time your wife wants to discuss the budget for new furniture, how many people to invite to your daughter's wedding or how you will afford to send Johnny to college, think before you say, "I'm too tired." How do you feel when you initiate sex and she says she's too tired? Do you feel rejected, unappreciated or unloved? That's how your wife might feel when she brings up money issues and you shut her down.
Money is never just about dollars and cents. Money is wrapped up with emotions -- such as fear, insecurity, envy and guilt -- and attitudes, such as control. Both genders can feel vulnerable when discussing finances. Discussing and resolving money challenges can increase the level of trust and intimacy in a relationship.
Financial Priorities and Feelings
As a financial adviser, I often meet with couples. I get to watch firsthand how they deal with competing priorities over the current and future use of investment money. The couples who disagree with each other -- but do so in a loving and respectful manner -- are the ones who have achieved financial intimacy.
I recall when a woman asked for a consultation with her and her husband. At the beginning of our meeting, I was impressed with how the husband had built up his 401(k), which I thought his wife would appreciate, considering she did not work and they had two young children.
Instead of focusing on how their investments were performing (which is what he wanted to discuss), she repeatedly asked how much they should devote to a nice vacation. Visibly annoyed and looking at her with disdain, he stated that they had recently moved into a larger house and that paying the mortgage and reducing income taxes by maxing out on the 401(k) were more important priorities than a vacation.
The woman clearly needed a vacation, but I wondered why they hadn't discussed a budget before they decided to move into a larger house that would require a larger monthly payment. Both were frustrated and talking past each other. This couple had a lot of work to do with each other before working with a financial adviser.
Stop Judging and Start Listening
While we can't expect to have exactly the same values and priorities as our partners, if we stop judging and start listening, we'll have fewer arguments about money. I used to judge my husband's spending habits until we openly discussed our feelings about money. His philosophy was that when he received a bonus at work, he'd reward himself by taking a ski trip or buying new electronics and saving just a portion of it. When I received a bonus at work, I'd invest the entire amount and spend none of it.
When he explained to me that he was prepared to reduce his spending on fun stuff should his income decline in a particular year, I was cynical. Yet when he left the corporate world to launch his own company, he did just that. He followed through, which solidified my trust in him. We don't fight about money because we trust and respect each other. If there were a test, I bet we'd score in the top 10 percentile of couples regarding financial intimacy.
Four Tips to Improve Financial Intimacy
Here are four tips to improve your financial intimacy and your sexual intimacy at the same time. Believe me, when you don't fight with your partner over money, your sex life can't help but improve.
Find common ground while embracing differences. Are you a saver and your spouse is a spender? There are emotional reasons why people fall into one category and not the other. Take the time to understand where your partner is coming from without judging. Why is she so frugal and unwilling to spend money? Why does buying a new car make him feel so exhilarated? Understand each other's "wants" vs. "needs" and develop a budget you both can accept.
Don't keep secrets. Do you buy clothes or electronics and hide them from your partner or lie about the cost because you don't want to fight? How is that any different than hiding a lover? Cheating is cheating, whether it's love or money.
Divide labor when managing money. One spouse might be more efficient at paying bills while the other more skilled at allocating the investments in the retirement accounts. Make a commitment to sharing equally in the responsibility and accountability for all decisions. Don't leave your partner in the dark. If something happens to you, ensure that your partner can keep the lights on when you are gone.
Discuss "what if's." What happens if the higher-income spouse loses his or her job? How will the other adapt spending habits in order to accommodate a loss of income? Will you sell the house? Raid the 401(k) or college savings account? Have a plan before unexpected events occur. The stress over an unwanted event is high. Fighting over money on top of that is unbearable.
So while you are planning a big date with your honey for Valentine's Day, remember that monthly mini-date money discussions can go a long way in making every day feel like Valentine's Day.
