Mention the term health care and you're likely to get a variety of responses. Regardless of your political leanings, one thing is for certain -- health care is an expensive necessity in today's economic climate.
According to Statistic Brain, we spend about $10,000 per person on health care costs every year. The good news is that there are ways to reduce those costs if we are purposeful about it. Cutting costs becomes even more important considering smart spending now, on preventative measures, for example, can cut costs down the road, too. Here are some ideas for keeping your own health care costs down:
1. Take Advantage of Tax Savings
One of the best ways to save on health care costs comes in the form of a flexible spending account or a health savings account. Both are tax-advantaged accounts that allow you to put aside funds for health care needs. In many cases, your employer may offer matching funds, up to a certain amount. Ultimately, using either the FSA or HSA should reduce your taxes and help you think more like a consumer when it comes to your health care spending.
2. Try Cheaper Facilities
Many people don't realize that a fair number of doctors operate at several facilities. The fee to see your doctor will stay the same regardless of where you see him, but the charge assessed by the facility can vary quite a bit. If that's not an option for you, consider other ways to see a doctor. Many grocery stores offer in-store clinics manned by a doctor or nurse. Assuming you're needing to see a doctor for something relatively common, this method can be a great way to save money.
3. Get a Prescription for Over-the-Counter Drugs
One drawback to the FSA or HSA is that you can no longer use the funds to purchase over-the-counter drugs. A way around this is to get a prescription from your doctor for medicines that you regularly use, like pain relievers and allergy medication. Just remember to ask for the prescription to be similar to what you're currently taking to avoid any negative impacts.
4. Get Free Money
With the advent of more high-deductible health plans, more employers are offering incentives to employees that can result in free money for you. This varies by employer, of course, but usually is in the form of taking a health care assessment in exchange for a certain amount to be put in your HSA.
Some employers also offer free or low-cost weight loss or smoking cessation programs. These programs help your employer save on their costs plus giving you the chance to get in better health.
5. Get a Cash Discount
If you've dealt with health insurance much, then you know what a hassle it can be. It can be the same, if not worse, for a doctor's office. Help reduce the hassle by offering to pay cash -- for a discount off your insurance's agreed-upon rate. Not every doctor will offer this but it is well worth asking for, especially if you've not met your deductible yet for the year. If this isn't an option, consider asking for a discount for paying for the entire bill all at once. Again, this may not always work, but can be well worth a simple request.
Health care costs can get out of hand, but with a little creative thinking, there are ways to save money without sacrificing care.
Jeni Marie/FlickrThe Cheesecake Factory is considering a larger price increase than its normal 2 percent.
The restaurant industry is starting to bounce back, but escalating costs across a variety of line items are forcing some chains to consider larger than usual price hikes later this year.
One of the meatier morsels in Cheesecake Factory's (CAKE) quarterly report last week was that it was considering a larger menu price increase than its historical average of 2 percent.
"Looking forward to the second half of the year, while we're always trying to balance capturing guest traffic and offsetting cost pressures, protecting our margins is certainly a priority and we would consider taking more pricing than normal or more than what we have done historically later in the year in light of the cost headwinds, particularly labor wage rates," Cheesecake Factory CFO Doug Benn said during its earnings call.
Higher group medical claims find health insurance expenses moving higher at Cheesecake Factory, but the chain is bracing the market to see it as the new normal.
"We see other restaurant operators that look like they are willing to take a little more price than what they normally have," Benn conceded. "We believe restaurant companies including us will have to consider more pricing in this cost environment as the pace of the economy accelerates."
Restaurants Are Doing Well, Thank You
This is shaping up to be a great year for the restaurant industry. The country's improving employment rate finds more people with less time to cook meals at home as well as more of the means to eat out. The drop in gasoline prices is also putting more disposable income in folks' pockets, so they can now afford to hit eateries more often.
The National Restaurant Association sees a record $709.2 billion in industry sales this year, up 3.8 percent from 2014. There will be a total of 14 million jobs in the industry this year, up 3.2 percent from a year earlier. That's the good news. The bad news is that the association also sees costs moving higher this year. Between costs related to the rollout of the Affordable Care Act and the potential increase of minimum wages, labor costs are on the rise. Somebody has to pay for these developments, and they were just seated in a booth by the window.
Some companies didn't wait until 2015. Chipotle Mexican Grill (CMG) kicked in with its first substantial menu price increase in three years in May of last year. Its move was in response to a sharp uptick in costs.
There could be some relief on that front this year. Wholesale food prices may have climbed 25 percent over the past five years, but the association sees pork and dairy prices stabilizing in 2015.
Chili's, Ruby Tuesday See the Same Thing
Chili's parent Brinker International (EAT) saw commodity prices spike in its latest quarter, fueled by larger-than-anticipated upticks in the prices of burger meat, avocados and cheese. Even an industry laggard -- Ruby Tuesday (RT) -- finds itself having to pass on the growing costs of doing business to its consumers.
Ruby Tuesday recently updated its guidance on food inflation. It sees food costs climbing 2 percent to 2.5 percent, up from an earlier outlook that was slightly lower.
"We want to make sure that we maintain our value and propositions," Ruby Tuesday CFO Jill Golder said in its most recent earnings call. "We don't expect to price at the same level that you've probably seen some of the competitors [pricing at], but perhaps some incremental pricing in the 1 percent range."
In other words, Ruby Tuesday sees the competition jacking up their prices. It's going for a more modest uptick, but it's still an increase. So, yes, don't be surprised if your tab at the end of the meal is larger than you remembered. You're not alone. Everyone will be paying more.
Motley Fool contributor Rick Munarriz owns shares of The Cheesecake Factory. The Motley Fool recommends and owns shares of Chipotle Mexican Grill. Try any of our Foolish newsletter services free for 30 days. Hungry for some good stocks? To read about our favorite high-yielding dividend stocks for any investor, check outour free report.
CHICAGO -- Nancy Kessler spent much of her career as a museum curator, but she also has had a lifelong love of working with older people. During one stint working with Alzheimer's patients, she noticed a gap in one type of caregiving: "There is a lot of wellness and physical therapy but not much intellectual stimulation."
Last year, she decided to do something about that. Following a layoff at age 58, she launched Memoirs Plus, which specializes in writing memoirs for seniors. The idea of her business is to provide her clients with intellectual stimulation and a creative activity that helps them tell their life stories.
Kessler, who lives in Mount Kisco, New York, typifies the wave of baby boomer entrepreneurship that has driven impressive startup numbers in recent years. The rate of startups by older Americans has outpaced other age groups in the last few years. Many are pursuing a dream of independent employment; others get excited about an idea. In some cases, it is a simple matter of attempting to make ends meet and building retirement security.
Among the population aged 55-64, some 0.31 percent started a business last year, according to the latest Kauffman Index of Entrepreneurial Activity. That is higher than the 0.28 percent startup rate for the total population, and just a little less than the rate among people aged 45-55, which was 0.36 percent.
The research tells us that those who do start companies in 50s and 60s are more likely to do it from an existing job than being out of the labor force.
The rates for baby boomers are somewhat down from their peaks in 2009. That signals to Dane Stangler, Kauffman's vice president of research and policy, that the wave may be flagging for the boomer generation -- especially those heading into their 70s.
The Great Recession of 2007-2009 has also taken a toll on entrepreneurship, Stangler says. The substantial decline in housing values has made it more difficult to finance startups, since home equity is a key source of financing a new business.
"And people are more gun-shy about tapping it in the future," he adds. The large number of workers who have left the labor force in their 50s also has a dampening effect. "The research tells us that those who do start companies in 50s and 60s are more likely to do it from an existing job than being out of the labor force."
Businesses like Kessler's show that there is still some fuel in the tank -- especially among those still in their 50s and early 60s. Sole proprietors like Kessler can get started without much capital. And many older workers will want to keep earning income while gaining the freedom of going solo.
To get started on her new business, Kessler took classes at a local nonprofit in Westchester County, New York, where she lives, that helps women launch businesses. She learned how to write a business plan and research her startup. She also launched a networking group with other businesses serving seniors in her area.
Kessler took her entrepreneurial turn equipped with a rich network of contacts accumulated over the course of her career, which includes a graduate degree in museum studies and experience managing the finances of several nonprofit organizations. She incorporated as a limited liability company. She has no grand ambitions for the business beyond generating a satisfactory living for herself.
The math of earning income longer is compelling. As I noted last week, it can generate additional wage credits that drive Social Security benefit calculations, and enable a delayed filing for benefits. It is also a great way to play catch-up on retirement account contributions.
Even three years of additional income improves the odds of a financially secure retirement by an impressive 55 percent, according to research by David Blanchett, head of retirement research at Morningstar (MORN).
For Kessler, at least, things certainly are looking up. She is doing the research, writing, editing and design for six memoirs for clients who mostly are in their upper 80s. She earns $2,000 or more from each project and derives enormous satisfaction from the work. "There's an amazing clarity to their narratives -- and I'm hearing stories that their children haven't even heard yet."
(The opinions expressed are those of the author, a columnist for Reuters.)
At Walt Disney World (DIS) in Florida, a one-day Magic Kingdom adult ticket soon will be $105, up from $99, inside sources recently told the independent WDW News Today. Prices would go up $5, to $99, at Disney World's Hollywood Studios, Epcot and Animal Kingdom theme parks.
Similar West Coast increases are planned at Disneyland Park, home to Sleeping Beauty Castle, and Disney California Adventure Park, WDWNT said. An adult one-day, one-park ticket for either now is $96.
Disney officials told Money Talks News that they have "nothing to announce" at this time. However, price hikes have come nearly annually at the Disney resorts since 2010. In Florida, prices in 2014 jumped just before spring break; in California, just in time for the Memorial Day weekend's unofficial launch of summer.
While experts have wondered if a $100 threshold would matter, Disney analysts continue to predict increasing attendance at the company's theme parks. Theme Park Insider recently pegged Walt Disney World's Magic Kingdom as the world's most popular theme park, with 18.6 million visitors a year; Disneyland saw 16.2 million visitors. And Disneyland is gearing up for its 60th birthday with special attractions beginning May 22.
Plan ahead, buy now. Single-day tickets bought now are good until Dec. 31, even if a price hike is announced later, Disney officials assured Money Talks News. Multiday tickets bought now must first be used by Dec. 31 and within 13 days of first use, or by Jan. 13, 2016, whichever occurs first, Disney says.
Multiday discounts. The more days you buy, the larger the discount. At Walt Disney World, a three-day adult ticket for one park per day is $274, or $91.34 a day, which is a savings of $7.66 a day, or 7.7 percent. If you've got the time, a 10-day ticket for one park per day is $354, or $35.40 a day, which is $63.60 a day, or nearly two-thirds, off base price. Similar saving are available in California, with a five-day ticket for one park a day offered at $266, or $53.20 a day, nearly 45 percent off the base price.
Annual pass. If you live close enough to go often, consider a "premium" annual pass ($754 in Florida; $699 in California) which includes multiple park visits - including water parks in Florida - in one day, free parking, and discounts on food and merchandise 365 days a year. An annual pass in Florida ($634) doesn't include water park admissions; in California, a "deluxe" passport ($519) offers only 315 days of admissions and lesser discounts.
Outside ticket discounts are available, but most experts say you are likely to pay 90 to 95 percent of full price. In California, a CityPass ($334 adults, $219 children) includes a three-day Disney Park Hopper Ticket and one-day admissions to both Universal Studios Hollywood and SeaWorld San Diego. That saves you up to 30 percent off the combined admissions, if you were going to all three anyway.
Stay and Play
Walt Disney World includes about 30 hotels and even campgrounds on its nearly 40-square-mile resort at Lake Buena Vista, 20 miles southwest of Orlando. They include "value," "moderate," and "deluxe" accommodations in a variety of prices, many discounted between now and June 15.
Still, other deals may be found in the 200 Orlando hotels and motels. In California, only three hotels are on the 510-acre resort. Outside the resort but nearby are 39 Disney-approved lodges and more than 100 other places to stay.
Although it can run $200 a night or more to stay in a resort hotel instead of off site, amenities often include parking (otherwise $17 a day), proximity to attractions, transportation around the resort, extended park hours and access to Disney characters.
For off-site lodging, consider shuttle service or walking distance to and from park gates, especially if you plan to return to your room during the day, and other promotions, such as gasoline refunds and off-season rates.
Eat for Less
Many visitors try to get around buying expensive food at Disney parks by packing in their own (not really allowed inside Disneyland Park, which offers a complimentary picnic area outside the main entrance) or by going to off-site restaurants or back to their hotel rooms to eat. Experienced visitors recommend going to grocery stores near the theme parks and buying food for savings of $10 to $20 a meal.
Also, you may want to pack items such as batteries, memory cards for cameras, Band Aids, sunscreen. But don't load yourself down so much you can't enjoy the parks.
Apparel and Mementos
My Frugal Adventures and others suggest purchasing Disney-related apparel and other paraphernalia on sale in advance from your local Disney Store, Walmart (WMT) or other discount retailer. Besides saving on resort gift shop prices, you'll be dressed for your occasion right upon arrival. You'll still likely buy souvenirs at the park, but maybe not as many if you hadn't bought ahead.
Alternative Destinations
Universal Orlando Resort has a one-day one-park ticket to Universal Studios Florida or Universal's Islands of Adventure for $96. (There's a Wizarding World of Harry Potter attraction in each.) Universal Studios Hollywood is $92.
Legoland California, not including its Sea Life aquarium or water park, is $87; Legoland Florida is also $87 but is offering one-day discounts for $72.
Both Florida and California offer miles of free beaches along their coasts.
Sign up for our free newsletter
Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a pdf of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash.
When hackers broke into systems of Anthem, a major health insurance company, earlier this month in a "very sophisticated" cyberattack, an estimated 80 million people suddenly became victims. The compromised information included names, birthdates, email address, employment details, Social Security numbers, incomes and street addresses, as The Associated Press reported.
Over the weeks, the implications of the action have continued to grow. As "Today" noted, the victims include tens of millions of children who are listed on their parents' insurance, putting the young people at a real risk of identity theft.
Criminals will use those stolen Social Security numbers to open accounts, get medical treatment, commit tax fraud, you name it.
"Criminals will use those stolen Social Security numbers to open accounts, get medical treatment, commit tax fraud, you name it," said Adam Levin, chairman and founder of IDentityTheft 911, to Today. Another expert was unaware of any other breach of this much personal data in history.
Children are at particular risk of identity theft because their information is more valuable to criminals. Because there is no history and typically no previous credit applications, it is far easier to fraudulently create identities. The criminals, who will likely have purchased the information from the original hackers, can use the identities whole or take the critical Social Security numbers and match them with other names and addresses, creating synthetic identities.
Because children have typically not yet applied for credit, there is no organic way for them or their parents to recognize that something wrong is happening. Particularly with synthetic identities, the families are unlikely to receive any notification that the Social Security numbers have been used. It can take years for the damage to come to light, usually when the victim comes of age, tries to apply for credit, and is turned down because of defaulted payments of the criminals.
In addition, medical identity theft is a burgeoning problem. Criminals use not only a Social Security number, but insurance numbers to gain treatment and leave the victim saddled with the bills and a health record that is no longer accurate because of the other person's information is now included. People may find care providers contacting them for payment of services provided, see a reduction of allowable benefits that were "used," and even receive incorrect medical diagnoses because of the unrelated information now included in the medical record.
The Identity Theft Resource Center offers a list of red flags that someone may have compromised the identity of their children. They include:
Collection agency calls or letters for the children.
Pre-approved credit card offers if the children never had bank accounts.
Notice to your child of a traffic violation warrant or notification of overdue taxes.
Denial of government benefits because the Social Security number is listed as having already received them.
Notification from the IRS that a dependent's name or Social Security number already appears on someone else's tax form.
According to Kiplinger, there are some steps the parents can take. Check credit reports of you and your children with all three credit reporting agencies: Experian, Equifax (EFX) and TransUnion. If your child is over 13, you can do this through the website AnnualCreditReport.com. If under 13, you'll need to make the request in writing, including such information as a certified copy of the birth certificate, a copy of the child's Social Security card, a copy of your driver's license, and a copy of a current utility bill with your current address.
Because it can take so long for identity theft to become obvious, you'll need to monitor the credit accords of a child for the foreseeable future. Consider putting a security freeze on the credit records at all three agencies so no one can apply for credit under the Social Security number without alerting someone. And keep watching the mail for bills, notifications, or anything else out of place addressed to the children.
Andrew Harrer/Bloomberg/Getty Images
Shares of Potbelly (PBPB) moved higher after the company posted better-than-expected quarterly results on Tuesday afternoon. The sandwich baker saw its revenue increase 13 percent over the prior year's holiday quarter to hit $84.8 million. Analysts were only forecasting an 11 percent ascent.
The news was even better on the bottom line, at least relative to expectations. Adjusted earnings clocked in flat at 6 cents a share, but that was double the profit that Wall Street pros were targeting.
Naturally, it's not a surprise to see a stock move higher after soundly surpassing analyst prognostications: That's Mr. Market's measuring stick. However, it's not as if investors can walk away feeling as if the fast-casual chain is doing great. It's not. The double-digit uptick in revenue is largely the result of the 46 locations that opened through 2014. Comparable-restaurant sales grew at a more realistic 3.7 percent clip.
We also can't forgive Potbelly's earnings performance. Adjusted net income declined 9 percent from a year earlier as food costs and labor expenses rose faster than the action at Potbelly's cash registers. Things are getting better on some fronts, but don't let anyone fool you into thinking that the stock moving higher is the sign of a blowout quarter during a corporate turnaround.
Making Dough
There are certainly a couple of encouraging signs in assessing the quarter's performance. Comps bouncing back is huge. Potbelly's comparable-restaurant sales were negative through the first half of the year, striking fear in investors that its popularity was peaking.
It's also great to see expansion accelerating. Potbelly expects to open as many as 55 new locations in 2015.
However, Potbelly is still trying to win back the market's respect. Even with the initial pop, the stock is still trading for roughly half of where it was when it closed above $30 on its first day of trading two summers ago.
Investors paying attention to other sandwich specialists may also be quick to note that it's not just Potbelly struggling with profitability. Shares of Panera Bread (PNRA) took a hit when it reported fresh financials last week, even though it also posted declining profitability on a slight uptick in revenue.
Then again, Panera took a hit mostly because of its outlook. It sees flattish earnings-per-share growth in 2015, and Potbelly is coming from a better place. It expects adjusted net income to grow by at least 20 percent. That may seem encouraging, but it's important to frame it appropriately. Potbelly's adjusted earnings slipped 16 percent in 2014. If it comes through with just 20 percent growth, we would be looking at less than $8.1 million in adjusted earnings, nearly flat with where it was in 2013. Potbelly may be growing -- the chain is now up to 334 company-owned stores and 29 franchisee-run locations -- but profitability is essentially where it was two years ago.
Potbelly will have to do more growing on both ends of the income statement if it wants to live up to this week's gains. It's taking steps in the right direction, but it still has a long way before investors can start celebrating a turnaround.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Panera Bread. Try any of our Foolish newsletter services free for 30 days. To feast on our favorite high-yielding dividend stock ideas for any investor, check out our free report.
TheStoreGuy/Alamy
These are tough times to be a film exhibitor. Movie theater operators in this country sold 1.26 billion tickets last year, and that's the lowest box office tally since 1995. That compares to the 1.34 billion guests that the industry entertained a year earlier, and even that was a problematic performance.
The industry peaked in 2002 when it sold 1.58 billion admissions. There are plenty of possible explanations for the malaise that multiplex chains are experiencing today. Home theaters have improved dramatically with the rollout of high-def, 3-D and now 4K televisions. Patrons have tired of escalating ticket prices and costly concessions. Some will also argue that the quality of the product has also deteriorated.
One way or another, the industry is going to have to find a way to elevate its game. Folks aren't coming, and AMC Entertainment's (AMC) quarterly report on Tuesday shows that even the leaders that are seen as innovators are struggling. However, AMC Entertainment is also getting a lot of things right, and shareholders are enjoying the feature presentation.
Extreme Makeover: Multiplex Edition
Shares of AMC Entertainment hit new highs this week after the parent company of the AMC Theatres chain posted better-than-expected results. The headline of its earnings release touts its "record" results, but the actual performance isn't as rosy as that -- or its bubbly stock chart -- would seem to suggest.
Revenue actually declined slightly, dropping to $712.2 million during the holiday quarter. It scored $713 million in revenue a year earlier. Admission revenue declined 4.5 percent to $460.3 million. That's not good, but it was nearly offset by its busier concessions stand activity. AMC saw its food and beverage revenue climb 8.8 percent to $215.3 million. That particular feat is made even more impressive when one factors in the drop in actual traffic. Concessions per patron soared 13.5 percent to a record $4.46. That's a lot of popcorn tubs and Junior Mints boxes sliding across the glass display case.
Other bragging points include earnings from continuing operations improving to 30 cents a share if you back out a one-time gain from a year earlier. Analysts were only holding out for a profit of 22 cents a share. This is the third quarter in a row that finds AMC landing well ahead of Wall Street's profit target.
AMC has done a lot to improve its customer experience, and installing self-serve soda fountains and making it easier to request free refills on large popcorns and soft drinks have clearly helped in getting guests to pay up once they trek out to the local multiplex. It's also been opening bars in some of its theaters, giving patrons something to do before or after the movie. The challenge remains to get them there in the first place.
Lights! Camera! Action!
AMC's empire watches over 348 locations with 4,960 screens. It isn't afraid to take on the challenge of remaining relevant in an age of streaming high-def content being piped directly into living rooms.
Beyond improving its food and beverage offerings, AMC is also in the process of updating its actual theaters. It has been gutting old screening rooms, installing cozier recliner seats at dozens of its theaters. That's paying off as screens with the new recliner seats are posting double-digit gains in attendance at a time when the industry in general and most of AMC's own theaters are going the other way.
AMC has always been at the forefront of innovation. It was an early partner with Imax (IMAX), and even after introducing its own knock-off AMC ETX platform it remains Imax's largest player. It just began testing monthly passes in Denver and Boston, offering unlimited showings for as little as $35 a month. It said during Tuesday night's conference call that the test is going well, and it will have more to say about widening the test later this year.
It still needs to do more, especially if it wants to earn this week's new stock highs. It's great to see margins, cash flow, and adjusted earnings on the rise, but that can only take you so far if overall revenue doesn't eventually turn higher.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of IMAX. Try any of our Foolish newsletter services free for 30 days. Is your portfolio ready for a change? Check out our free report on one great stock to buy for 2015 and beyond.
BENTONVILLE, Ark. -- Hoping to shed its reputation for offering little more than dead-end jobs, Walmart, the nation's biggest private employer, is giving raises to nearly a half-million workers and offering what it says are more opportunities for advancement.
Walmart told The Associated Press that as part of $1 billion its spending to change the way it trains and pays workers, the company will give raises to nearly 40 percent of its 1.3 million U.S. employees in the next six months.
In addition to raises, Walmart said it plans to make changes to how workers are scheduled and add training programs for sales staff so that employees can more easily map out their future at the company.
We are trying to create a meritocracy where you can start somewhere and end up just as high as your hard work and your capacity will enable you to go.
The company said the changes, which were announced Thursday as Walmart reported better-than-expected fourth-quarter results, will hurt profits this year.
"We are trying to create a meritocracy where you can start somewhere and end up just as high as your hard work and your capacity will enable you to go," CEO Doug McMillon told the AP during an interview this week at the company's headquarters in Bentonville, Arkansas.
The changes come at a time when there's growing concern for the plight of the nation's hourly workers.
Thousands of U.S. hourly workers and their supporters have staged protests across the country in the past couple of years to call attention to their financial struggles. Business groups and politicians have jumped into the fray, debating a proposal by President Obama to raise the federal minimum wage from $7.25 to $10.10 an hour. And a new Associated Press-GfK poll found that most Americans support increasing the minimum wage.
At the same time, competition for retail workers is becoming increasingly stiff. As shoppers get more mobile savvy, retailers are seeking sales staff that's more skilled at customer service. But in the improving economy, the most desirable retail workers feel more confident in hopping from job to job.
Competitors Raising Wages
Walmart, which has struggled for two years with sluggish sales, follows other big retailers that have announced plans to increase pay for its workers. Swedish home furnishings retailer Ikea this year gave thousands of workers at its U.S. division a 17 percent average raise to $10.76 an hour. And clothing chain Gap (GPS) raised its minimum hourly wage to $9 last year and to $10 this year.
Because of its massive size and impact, Walmart has faced outsized pressure by organized labor groups to raise its starting hourly wages to $15 and provide workers with more consistent hours. With its new changes, the company's average full-time wage will be $13 an hour, up from $12.85. For part-time workers, the hourly wage will be $10, up from $9.48.
That's below the $14.65 average that hourly retail workers in a non-supervisory role earn, according to government data that includes people who work at auto dealers and other outlets that would likely pay more than discounters like Walmart. But it's above the $9.93 average hourly pay for cashiers and low level retail sales staff, according to Hay Group's survey of 140 retailers with annual sales of $500 million.
Ed Lazear, a Stanford University economics professor who served as an informal adviser to Walmart during the past year for the program, applauded Walmart's moves.
"It's positioning itself to be competitive," he said. "This is a step in the right direction."
Here's a breakdown of some of Walmart's plans:
Start raising entry level wages to at least $9 an hour in April and to at least $10 an hour by February of next year. That includes the less than 6,000 workers who make the federal minimum wage. Sam's Club locations will offer a starting hourly wage of at least $9.50 or higher in all markets, and at least $10.50 by next year.
Raise the floor and ceiling of its pay range for each position in most stores. For example, the pay range for cashiers is $7.65 to $16. The new range will be $9 to $17.55.
Raise the starting wage for some department managers to at least $13 an hour by this summer and at least $15 an hour by early next year.
Give newly hired workers a $9 an hour training wage and when they successfully complete the six-month training program, raise it to $10 an hour. Those workers can pursue one of three career paths: hourly supervisor, a specialty path like working in a bakery or deli or expand their skills in their current role.
Give hourly workers hands-on training in areas including teamwork, merchandising, retail fundamentals and communications. Store leaders like hourly supervisors will get refresher training on people leadership skills so that they can help workers grow and advance.
Roll out a program that offers some workers fixed schedules so they can be able to choose the same hours each week. The program is being tested in Wichita, Kansas.
Team up with its nonprofit, Walmart Foundation, to invest a total of $100 million spread over the next five years to support programs that help advance careers for entry level workers in the industry.
McMillon, whose first job at Walmart was an hourly position loading trucks during college, said the company is making the changes in both wages and training because it realizes it needs to do more than just pay more. In a survey Walmart conducted of 24,000 workers, it found that many don't know how to move up at Walmart.
McMillon, who became CEO last year, said he's hoping that if the company invests in its workers, they will provide better customer service. And ultimately, he hopes that will encourage shoppers to spend more.
"We want to make it really clear that working at Walmart is a great opportunity," he said. "Time will tell what the significance of the decisions will be."
Using a slow cooker is not only easy, but it can also translate into huge savings. With a slow cooker, there's no need to spend money on pricier, tender meat. Cheaper, tougher cuts of meat are actually perfect for all-day, low temperature slow-cooking.
And meats, soups, and chilis are just the tip of the iceberg. Save time in the morning by firing up the slow cooker the night before with oatmeal, and you'll wake up to a healthy, hearty, cheap breakfast for the whole family!
Lower prices on food and minimal cleanup is great, but it doesn't end there. Slow cookers also take up less energy than the stovetop or oven saving on your energy bill, too. So start batch cooking with a slow cooker and see those savings pile up today.
NEW YORK -- The Dow and S&P 500 eased Thursday following declines in energy shares and a disappointing outlook from Walmart, while the Nasdaq hit another 15-year high as Priceline shares jumped.
Uncertainty over prospects of a debt deal with Greece added to investor caution. Germany rejected a Greek proposal for a six-month extension to its eurozone loan agreement, saying it fell short of conditions set out by the country's eurozone partners.
A drop in shares of Walmart Stores (WMT) weighed down the Dow after the company cut its sales outlook, citing the stronger dollar. Shares dropped 3.2 percent to $83.52. Walmart also said it would raise entry-level wages to $9 an hour.
Boosting the Nasdaq, which rose for a seventh straight session, Priceline Group (PCLN) shares rallied 8.5 percent to $1,218.05 on its results. The stock also was the S&P 500's largest daily percentage gainer.
The rally is broadening out, and many more sectors are being included now as strong performers.
The S&P energy index fell 0.8 percent while shares of Exxon Mobil (XOM) dropped 1.7 percent to $89.44 as oil prices slid a second day following another big weekly build in U.S. crude inventories.
The decline in energy prices has eroded the profits of oil companies, and many have cut 2015 spending plans. But S&P 500 fourth-quarter earnings overall have been better than expected.
"I think it's likely to stay strong. The rally is broadening out, and many more sectors are being included now as strong performers," said Bruce Zaro, chief technical strategist at Bolton Global Asset Management in Boston.
The Dow Jones industrial average (^DJI) fell 44.08 points, or 0.24 percent, to 17,985.77, the Standard & Poor's 500 index (^GSPC) lost 2.23 points, or 0.11 percent, to 2,097.45 and the Nasdaq composite (^IXIC) added 18.34 points, or 0.37 percent, to 4,924.70.
Earnings Season
For the whole S&P 500, earnings for the quarter are up 6.5 percent from a year ago, above a Jan. 1 estimate for 4.2 percent growth, Thomson Reuters (TRI) data showed. The S&P 500 index is up 1.9 percent since the start of the year.
S&P utilities, down 1.1 percent, had the biggest decline among sectors, with shares of Scana (SCG) falling 1.9 percent to $58.27 following its results.
The biggest percentage decliner in the S&P 500 was Host Hotels & Resorts (HST), down 7.1 percent at $21.87, after a disappointing forecast.
About 6 billion shares changed hands on U.S. exchanges, below the 7.1 billion average for the month to date, according to BATS Global Markets.
NYSE declining issues outnumbered advancing ones 1,581 to 1,452, for a 1.09-to-1 ratio; on the Nasdaq, 1,440 issues rose and 1,256 fell, a 1.15-to-1 ratio favoring advancers.
The S&P 500 posted 66 new 52-week highs and one new lows; the Nasdaq composite recorded 104 new highs and 22 new lows.
What to watch Friday:
Earnings Calendar
These selected companies are scheduled to release quarterly financial statements:
Paul Sakuma/APA General Electric dishwasher on display a California appliance store in 2008.
General Electric (GE) will pay a $3.5 million penalty after being accused of knowingly failing to report to the government that certain dishwashers and ranges could catch fire, the U.S. Consumer Product Safety Commission said.
The agency said the failure to report the product hazards when GE first learned of them delayed recalls potentially by years.
The products at issue include the company's Profile freestanding dual-fuel ranges and Profile and Monogram dishwashers. In 2009 GE recalled 28,000 of the ranges, which were sold from 2002 to 2005 for $1,300 to $2,000, because the wiring could overheat and catch fire.
GE knew of 13 incidents involving the ranges, including five fires, and was aware of the problem by 2004. Companies are required by law to immediately report any hazard or defect that could pose a serious risk to consumers.
In 2010, GE recalled 174,000 dishwashers that had been sold over the prior seven years for $750 to $1,400 after the company received reports of the appliances catching fire. The company, the CPSC said, knew of the fire problem as much as three years before it recalled the dishwashers.
On top of the penalty, GE agreed to implement a series of internal changes intended to avoid similar delays in reporting problems with products.
Although the company agreed to the changes and to pay the penalty, General Electric "did not admit to CPSC staff's charges that its ranges or dishwashers contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury or death, or that the company failed to notify the Commission in a timely manner, in accordance with the reporting requirements of the Consumer Product Safety Act."
Smartphone thefts have significantly fallen off in three major cities with the implementation of kill switches, which allow phone owners to remotely deactivate their phone, making a stolen device utterly worthless, except as a paperweight.
Reports of stolen smartphones fell 22 percent in San Francisco and 16 percent in New York, USA Today reports. IPhone thefts have dropped even more: 40 percent in San Francisco and 25 percent in New York. In London, smartphone thefts have plunged by 40 percent.
"We have made real progress in tackling the smartphone theft epidemic that was affecting many major cities just two years ago," said London Mayor Boris Johnson.
Upcoming Law
According to Re/code, smartphone thefts had been an all-too-common occurrence. According to the National Consumers League, handheld devices were stolen from 1.6 million Americans in 2012. In California, smartphone theft accounts for more than half of all crimes in San Francisco, Oakland and other cities.
California's phone law, the first of its kind in the nation, requires that phones sold after July 1, 2015, have default kill switches, but some phone manufacturers went ahead and installed software-based kill switches on their phones, Fortune reports.
"The wireless industry continues to roll out sophisticated new features, but preventing their own customers from being the target of a violent crime is the coolest technology they can bring to market," said San Francisco District Attorney George Gascon, who helped lobby smartphone companies to implement kill switches.
Apple (AAPL) was the first phone manufacturer to install a kill switch, in September 2013, USA Today said. The switch, also called an "activation lock" is now standard on its iPhone 6 and 6 Plus. Samsung and Google (GOOG) have also implemented kill switches. Microsoft (MSFT) is expected to release a new operating system that includes a kill switch sometime this year.
Some smartphones require users to opt in to use the kill switch. Fortune said Johnson, Gascon and New York state Attorney General Eric Schneiderman are urging phone manufacturers to make the kill switch active as a default, so all users are protected.
What do you think of the smartphone kill switches as a way to deter theft? Share your comments below or on the Money Talks News Facebook (FB) page.
Getty Images
Frugality is more than just getting a good deal. True frugal living means that you don't let much go to waste; you take care of your belongings so you get the most possible use out of them. Knowing how to make your stuff last -- and how to fix it when it breaks -- means you spend less money replacing things.
It also makes you feel a little bit like MacGyver, especially when you're using some of the lesser-known tricks on this list. And that's pretty cool. Here are 30 clever and useful hacks to make your clothes, food and furniture last longer.
Keeping Food Fresher
Place a dry paper towel on top of a bowl of lettuce, and cover it with plastic wrap. This absorbs natural moisture content, keeping the lettuce fresher. Store dressing separately.
Prevent your baked goods from getting stale by placing a slice of bread in your cookie tin or cookie jar.
Dab butter to the sliced end of a block of cheese to keep it soft and edible (to prevent hardening).
Stick a celery stalk inside a bread bag for longer freshness.
Break your bananas apart; they'll ripen more slowly than they would in the bunch. Alternately, you can speed up ripening by storing other fruits, such as avocados, in an enclosed space alongside a banana.
Store marinara and sauce jars upside down to prevent mold from forming. Store ice cream containers upside down to prevent freezer burn.
Squeeze lemon juice on pre-cut fruits (like sliced banana, apples, pear or avocado) to prevent browning and oxidation. If you don't have lemons, other citrus fruits like orange, pineapple or lime will work in a pinch.
Getting the Most Wear From Your Clothes
Don't wash your clothes as often. Unless they're heavily soiled, most pieces can be worn more than once. Use stain stick pens, lint rollers and fabric refreshers to keep them looking fresh.
Wash clothes in cold water. This makes them last longer, and saves you on utility costs.
Place delicates (undergarments, sweaters, etc.) in a delicates bag to keep them safe. A mesh tote bag is ideal.
Always zip up jeans and hoodies before washing so they won't catch on other clothes and create rips and tears.
Air-dry your items whenever possible. This keeps them in good condition longer and saves you on heating costs.
Turn screen-printed T-shirts or sweatshirts inside out before you wash them to prevent the print from fading or cracking.
Remove sweater pilling with a disposable razor-preferably one with a safety guard like a woman's razor. You'll need to tread lightly here so you don't tear the sweater itself, but it's more effective than using a lint roller or a hand covered in duct tape.
Put your pantyhose in the freezer to prevent runs (it strengthens the fibers). You can also mend a run on the go with clear nail polish or hairspray.
Clean and polish your shoes regularly to keep them looking their best for the longest. Out of polish? A banana peel can do the trick in a pinch.
Keep dark wash jeans from fading by washing them before you wear them the first time in cold water with a cup of white vinegar added. Turn the jeans inside out when you wash them and use cold water. If possible, repeat this two or three times before wearing them. This process will help seal in the dye.
Extending the Life of Your Furniture
Remove scratches in wooden furniture by rubbing walnuts into them to fill in the gaps.
Remove water stains on wooden furniture by spreading a couple tablespoons of mayonnaise on a paper towel, then pressing the paper towel to the water stain and letting it sit for 15 minutes.
To remove spots and stains from upholstery, try the pet stain remover Nature's Miracle, which works on almost any type of mess (not just pet-related ones). Dip a wet cloth in the solution, dab it on the stain and gently rub it until it disappears.
Got worse problems with your furniture than a few spots? Add slipcovers to old sofas, chairs and pillows to give them new life.
What about scratched up leather furniture (darn cat!)? Rub olive oil into the scratch in a circular motion with a cotton cloth. If this doesn't do the trick, try placing a damp cloth over the scratch and warming it up by placing an iron over it. Last-ditch attempt before you call in the pros for repair: fill in the scratches with matching shoe polish.
Making Beauty Supplies Last Longer
Dab your skincare (like moisturizer) on in small dots rather than squeezing a big glop onto your hands and then rubbing it in. You'll find you've been using much more than you really need.
Squeeze a few drops of saline solution into mascara to keep it from drying out.
Revive old, thickening nail polish with a few drops of nail polish remover.
Store your foundation in the fridge. It'll slow down the chemical reactions that cause the liquid to separate over time.
Sharpen a dull razor by running it away from you on an old pair of jeans a dozen or so times, then running it towards again you for the same amount.
Make Cleaning Supplies Last Longer
Disinfect your sponges so you can reuse them by microwaving them for two minutes on high.
Make liquid hand soap last longer by mixing it with water and dispensing it from a foam hand soap bottle. This also makes it look fancier.
Put dish soap in an olive oil bottle so it only dispenses a few drops at a time (you use too much most of the time).
Paula Pant ditched her 9-to-5 job in 2008. She's traveled to 32 countries, runs a popular finance blog and is a successful real estate investor. Her blog, Afford Anything, is the groundswell of a rebellion against stodgy, uninspired financial advice. Afford Anything shows you how to crush limits, create wealth and maximize life.
In March of 2014, the Internal Revenue Service made an important decision regarding Bitcoins (including all virtual currencies) and taxes. IRS Notice 2014-21 declared that Bitcoins don't have legal tender status and therefore should be treated as property instead of currency.
For those trading in Bitcoins only as investments, this ruling has fairly straightforward effects. Bitcoin gains and losses are dealt with in the same fashion as with stock. However, consumer uses for Bitcoins have increased since sites like Overstock.com have begun accepting them, and tax implications in those cases are somewhere between intriguing and annoying.
Purchases
If you make regular purchases with Bitcoins, you may have a tax accounting nightmare on your hands. It is as if you paid your regular grocery store bills with volatile shares of stock. Every trip for milk and eggs requires calculating a capital gain (or loss) on the exchange, which means you must know the value of the Bitcoins in dollars at the time you purchased them and the value of the Bitcoins at the time you spent them (in essence, the fair market value of the milk, eggs, etc. that you received).
If you purchased Bitcoins multiple times, you have the further burden of clear records regarding which Bitcoins (or parts of a Bitcoin, since they are divisible) you spent and which remain in your account, since they have different initial values. It is best to seek professional tax accounting advice in that case.
Had Bitcoin been classified as a currency, as many believe it should be (including the Tax Foundation), this would be a more straightforward issue of currency exchange rates -- like paying your grocery bills with euros or yen.
Pay
From the business side, typical reporting rules apply. For example, if you are a Bitcoin miner, your earnings are considered self-employment income with the requisite self-employment taxes. Employees who are paid in Bitcoins must have the fair market value in dollars on the payment date reflected in their W-2 forms.
If you are an independent contractor paid in Bitcoins, you should receive a 1099 form reflecting the proper Bitcoin value. The employer is obligated to send the 1099 to you, and you are obligated to pay self-employment tax. Good luck estimating your quarterly payments in that case.
What are you, the average taxpaying Bitcoin user, to do? As with all Americans, fill out your taxes to the best of your ability and seek professional advice for more complicated transactions. Track your Bitcoin transactions, calculate all capital gains/losses, and report them similarly to stock transactions.
Investments
Bitcoins were poor investments in 2014, dropping from $748 at the beginning of the year to $317 by December 31st. Because of this drop in value, the odds are pretty good that you will not owe any taxes this year.-- and if you dealt with Bitcoins in any significant way, you could have a capital loss that actually reduces your taxes.
The bottom line for taxpayers is to keep meticulous records on your use of Bitcoins -- when you received them, when you spent them, what you spent them on, and their market value at the time. You can retrieve and export most records with minimal headache through Blockchain and other web alternatives.
Taxpayers with few Bitcoin transactions may be tempted to blow the whole thing off. We advise against that. Granted, for most people the chance of detection is small, but why mess with the IRS at all? Seek the advice of tax professionals if you need to, but ignore the tax ramifications of Bitcoin at your own peril.
Retirement planning can be incredibly tricky for two reasons: First, there are a wide and varying number of factors that affect your retirement planning, and second, no two people's retirement needs are the exact same. There is no one-size-fits-all approach to realizing the visions of your golden years, and even financial advisers and experts differ in their advice -- so how should you approach this financial hurdle?
The right retirement plan is all about timing and opportunity. In nearly every way you could make a mistake -- for example, saving too late -- you can also make up ground by availing yourself of all resources at your disposal (say, your employer's 401(k) matching program). With that in mind, we've compiled a list of 28 major retirement pitfalls to avoid -- and what to do if you end up taking some missteps.
1. Having No Retirement Plan
Starting with the basics here: Not beginning the retirement-planning process is one of the first and biggest mistakes you can make. Consider what you want your future to look like and how much money you can reliably set aside now; then find a deposit product that will get you there. Employers often offer 401(k) plans and pensions (though, for the latter, less so now). You can also open an individual retirement account without an employer sponsoring the account. These products, which can offer greater returns and more diversification in investment than a traditional deposit account, are a great way to start your retirement savings.
2. Not Taking Your Employer's Match
If your employer offers to match your 401(k) contributions to a certain percentage and you don't opt in, you're essentially leaving free money on the table. Make sure to contribute at least the amount your employer matches to your retirement accounts each month -- the bonus is the incentive you'll have to save more.
3. Incorrect Beneficiary Designations
In the event of your passing, you likely don't want to leave a financial mess for your family by having your retirement plan beneficiaries and will in conflict. Make sure these designations match your intentions so dividing up your remaining assets will be as simple as possible.
4. High Retirement Account Fees
According to the Center for American Progress, the average worker will lose $70,000 from his 401(k) to fees. The promise of high yields might be tantalizing, but compare these account fees to ones attached to lower-yield options to determine the true value of your investment.
5. Not Checking Your Account's Performance
Sitting on your laurels doesn't bode well for a strong retirement. Do you know how well your investments performed last year? Or over the last five years? Unless retirement is imminent, long-term performance should dictate which funds you invest in. Don't let years pass you by on low-return investments if other safe options yield better rates.
6. Relying on Social Security or a Pension
It's no secret that the future of the Social Security system is in question. With the baby boomer generation cashing out, no one knows for certain whether the system will still exist by the time millennials retire -- and if it does, what it will look like. Companies are freezing pensions en masse; 40 percent of Fortune 1000 companies already have, according to a Towers Watson study.
7. Cashing Out Your 401(k)s Between Jobs
According to PBS' "Frontline," 70 percent of workers in their 20s cash out their 401(k)s instead of rolling them over, while 55 percent of those in their 30s do that. That means you're paying taxes and a 10 percent penalty repeatedly on your savings if you're under 55.
8. Believing You Will Want to Keep Working
You might love your career and not be able to imagine life without a 9-to-5 gig. However, your ability to keep pace in the workplace will likely wane eventually. Circumstances change, your health might not keep up with you, and you'll likely be ready to eventually take it easy and retire. Don't skimp on your saving because you think you can work until you're 90 and earn more than you do today.
9. Not Capitalizing on Your Tax Deferral
There are a number of tax advantages that apply when you're saving for retirement. These are meant to be an incentive for saving, so take advantage of them by properly reducing your taxable income and letting these funds grow tax-deferred.
10. Transfer on Death and Payable on Death Designation Mistakes
A factor if you have a trust or estate plan, Fidelity recommends double-checking your "transfer on death" and "payable on death" designations to ensure they match your will, as these designations will affect who gets your retirement account assets when you pass away. "Transfer on death" registration overrides your will, according to Fidelity.
11. Cashing Out Your Pension
Your financial adviser might try to convince you to cash out your pension from a former employer. Unless you really need the money now, this is mostly in the interest of your adviser, who could make tens of thousands in the form of commission, according to Time. Consider the incalculable benefit of a stable check you can depend on before liquidating your pension and assuming you can perfectly plan it out to last.
12. Buying Too Much Company Stock
It's unlikely that your employer is the next Enron -- but you can't rule out that possibility. Don't own more than 10 percent of your investments in company stock.
13. Burning Through Your Savings
If you saved a lot for retirement, it might feel like the ultimate payoff to finally stop working and gain access to your funds. However, don't let all that cash fool you into living the high life early on in retirement. Sure, the first years of retirement might be the best time to travel, do home projects and generally spend money on things you might no longer enjoy later on; however, moderation is key, as you have no idea how long you'll need those funds to last you.
14. Incorrect Trusts
If your hope is to still have some money left over for your children or beneficiaries to inherit, then you'll want to pay attention to your trusts. Every situation varies, but designating a trust as the beneficiary of a retirement account could be entirely useless if not drafted appropriately.
15. Retiring Too Early
Your retirement payouts are dictated by your age -- if you retire early or retire late. Depending on your designated full retirement age, you could be receiving less benefits (or more, if you wait) each year.
16. Investing Too Conservatively
The Great Recession might have scared you from riskier investments, but if you're decades from retirement, don't be too conservative with your funds -- especially if your options could give you high returns over a long period of time.
17. Investing Too Aggressively
Again, the theme here is moderation. You don't want to miss out on the best returns you can get, but you also don't want to open yourself up to too much risk, especially in the years leading up to retirement.
18. Borrowing From Your 401(k)
This isn't always a terrible idea, especially if your other loan options come at a higher price; however, in general you're going to want to avoid borrowing from your 401(k). It will likely set you back far longer than the amount of time it took you to save those funds in the first place, thanks to compounding interest.
19. Putting Your Money in Variable Annuities
In comparison to other mutual fund options, variable annuities can cost 50 to 100 percent more in fees and surrender charges, according to FinancialMentor.com. Furthermore, the gains on these accounts are taxed as normal income -- not capital gains -- upon withdrawal.
20. Starting Your Retirement Savings Too Late
Time is of the essence when it comes to retirement planning. Start even a decade later, and you'll have to dramatically adjust your monthly contributions to start making up for lost time. Do yourself a favor and save less each paycheck for longer to head for a sizable retirement.
21. Saving Too Much Too Early
If you're in your 20s and you're putting north of 10 percent of your income toward retirement, you might want to slow down. Sure, you're setting yourself up for a comfortable retirement if you start saving aggressively at a young age, but you also don't want to be behind on your savings for more imminent investments, like a home. Make sure you're saving an appropriate amount to still reach other goals with minimal debt.
22. Avoiding Stocks
Franklin Templeton found in a 2013 survey that 37 percent of long-term investors think they can avoid stocks altogether. However, you likely won't see your retirement grow to where you'd like it to be by relying on bonds, certificates of deposit and traditional deposit accounts -- especially at today's rates.
23. Not Planning for Medical Expenses
The mind often outlives the body, and medical care doesn't come cheap. With higher insurance costs the older we get, it's important to factor in medical expenses when budgeting for retirement. Opening a health savings account can help ensure you are socking away a designated amount of money toward these costs.
24. Not Calculating How Long Your Retirement Will Be
There's no way to know how long you'll live, but it's always better to err on the side of overplanning. The alternative is you'll outlive your retirement funds.
25. Unrealistic Expectations for Retirement
Consider the true costs of planning for retirement and be honest: What kind of lifestyle do you want? Draft a budget that's realistic and face the present reality of what you'll have to sacrifice to get there.
26. Paying Off Debt Before Saving
When faced with the prospect of saving for the future or paying down debt, many struggle with deciding which takes precedence. However, because time is so crucial when saving for retirement - even if it's a few decade off - it's best to devise a strategy that allows you to pay down debt while still making some headway, however minor, toward retirement.
27. Prioritizing Your Child's Education
It's no doubt generous to save for a child's education; however, you should consider the costs and benefits of you versus your child saddling that burden, especially if you're behind on your retirement savings. There are a number of options your child can take advantage of to pay for part or all of college - and these options should be on the table. Ultimately, if you're short on retirement savings, you'll likely have fewer chances than your child will to cover expenses.
28. Carrying Debt With You
By its nature, retirement means transitioning to a fixed-income lifestyle. Carrying debt into retirement will be detrimental to your financial strength and eat away at your savings. Do your best to get all debt paid off before you stop working.
Today I sent a somewhat awkward Facebook message to my husband. It ended like this: "Have fun managing my Facebook when I die! Hugs."
His reply: "K." That, ladies and gentlemen, is how you do a will these days.
Facebook (FB) released a new security feature allowing users to designate a "legacy contact" who will have the ability to manage your Facebook account in the event of your death. Previously, friends and family could request Facebook designate the profile as a memorialized account, but no one could make changes to it. The legacy contact, once they have notified Facebook of someone's passing, would be able to manage friend requests, change profile and cover photos and write posts to stay at the top of the page (for example, details for a memorial service). You can also choose to have Facebook permanently delete your account when you die -- all it takes is checking a box in your security settings.
"I think it's wonderful that they've done that," said Stanley Brooks, a Massachusetts attorney specializing in estate planning. He strongly recommends people include instructions in their wills for how to manage their online accounts after death. "It's something which is definitely easier and much more manageable for people, but I don't think it takes place of proper language in a dual power of attorney or a will."
The growth of social media has added some complexity to managing someone's assets after they die. Few people ever get around to drafting wills in the first place -- multiple surveys in the last few years say less than half of 55- to 64-year-olds have wills, and even fewer younger people do -- and they typically don't provide instructions for what to do with social media accounts. That can leave your online presence -- your social assets -- vulnerable to identity thieves and hackers.
A 'Will' Via Account Settings
Given the statistics, it seems unlikely that many Facebook users have wills, but with this feature, people can take care of bequeathing at least one corner of their lives. For people who think drawing up a will seems morbid, perhaps changing a few preferences on Facebook will be less intimidating. It's simple, even if it is a little weird.
It'll be interesting to see if other social networks -- or any other service provider -- follow Facebook's lead and integrate legacy directives into account settings. There are risks: You could forget to update your contact in the event that your relationship with that person changes, that person leaves Facebook or dies before you do.
There's also the concern that someone could abuse this privilege before you die -- all it takes to request a memorial page is to tell Facebook who died and give an approximate date of death.
How Facebook Reviews Requests
"We have a rigorous process for memorializing accounts starting with a team dedicated to reviewing requests, and we also ask for verification of death -- a news article, obituary, etc.," Jodi Seth, a Facebook spokeswoman, wrote in an email to Credit.com. The proof of death field is marked optional on the memorialization request page. "We also look at other indicators to ensure we are not only memorializing the right page, but that we are not inaccurately memorializing accounts. We have a very low occurrence of inaccurately memorializing accounts."
Choosing a legacy contact prompts you to send that person a message -- weirdest Facebook message I've ever sent -- but you have the option of clicking "not now" when that message pops up. If you don't notify your legacy contact ahead of time, they'll receive notification upon your death, presumably after someone has requested your profile be memorialized.
There's a lot to consider when making end-of-life plans, many of which revolve around the financial situation you leave behind. For example, if you're in charge of household finances, will someone know how to pay the bills if something happens to you? You also need to think about what happens to your debts after you die. You can't manage all those instructions via social media, but perhaps this is the start of a new estate-planning era.
If this catches on, prepare yourself: Your inbox might soon fill up with some strange "if I die..." messages.
Christine DiGangi covers personal finance for Credit.com. Previously, she managed communications for the Society of Professional Journalists, served as a copy editor of The New York Times News Service and worked as a reporter for the Oregonian and the News & Record.
Bob Chamberlin/Los Angeles Times via Getty ImagesBy Nathan Layne
Walmart Stores' (WMT) wage hike will likely trigger a rethink on pay across the retail and fast-food sectors, with Target (TGT) one of the low-wage employers facing pressure to follow suit and pay workers more.
Walmart announced Thursday it would lift its minimum U.S. wage to $9 an hour this year and $10 in 2016, raising the ante in a tightening labor market where low-skilled workers easily move between retailers and fast-food chains.
Labor and shareholder activists will likely use the news to ratchet up pressure on companies which have so far faced less scrutiny than Walmart, the largest private U.S. employer with a workforce of 1.3 million.
This is the largest retailer out there so I think others are going to have to follow.
"This is the largest retailer out there so I think others are going to have to follow," said Brian Yarbrough, analyst at Edward Jones, naming Target and Staples (SPLS) among other national retailers that may look to revise their pay scales. "All the restaurants are going to be under pressure as well."
When Gap (GPS) a year ago set its minimum wage at $9 an hour and pledged to go to $10 in 2015, many workers at Walmart sought to switch and secure employment at the apparel retailer, according to Burt Flickinger, managing director of Strategic Resource Group, a retail industry consultancy.
Now, Walmart's move should help it reduce turnover and will likely put the most direct pressure on Target, given that their pay scales for entry-level positions are generally close and there is broad overlap in product lines.
"It's absolutely Target," Flickinger said when asked what rival would likely need to take action to retain staff.
Target spokeswoman Molly Snyder said the company was "committed to offering market competitive wages that can help attract and retain great talent." She said Target pays above the federal minimum wage of $7.25 at all of its stores, but does not disclose its average rate.
Walmart said the hikes would lift the average hourly wage this year for full-time employees to $13 from $12.85, while raising the average for part-time staff to $10 from $9.48. Those rates could go higher in 2016.
Not Just Wages
Data from employer review site Glassdoor based on at least 75 responses shows that Target, Walmart and Staples are roughly paying the same hourly rate, with cashiers and sales associates making around $9 an hour. A cashier at McDonald's (MCD), by comparison, was averaging $8.44, the data shows.
Staples and McDonald's didn't immediately respond to requests for comment.
It's not just wages. Walmart also said it planned to make the scheduling of hours more predictable, taking a step towards addressing an issue that has long been a source of worker frustration.
Labor groups and institutional investors have long targeted Walmart on wages and now appear set to widen their scope.
David Schilling, senior program director for human rights at the Interfaith Center on Corporate Responsibility, said investors would use the Walmart wage hike as leverage when negotiating changes at other firms.
"It's not just the retail sector. It could be fast food, restaurant workers," said Schilling. When it's "a big player like Walmart the ripples go forward."
David Paul Morris/Bloomberg via Getty Images
Wednesday was a busy day for the country's leading hotel chains. Hilton Worldwide (HLT), Hyatt (H) and Marriott (MAR) all posted quarterly results, giving the market a great snapshot of the lodging industry.
Spoiler alert: Things are looking good.
It's the perfect climate for hoteliers. The economy's improving, and that historically translates into a pickup in both corporate and leisure travel. Chains can naturally take advantage of the uptick in demand to push their night rates higher.
With more folks checking in and hotels armed with the flexibility to charge more, it's the perfect two-ingredient recipe to boost revenue per available room -- or RevPAR -- which serves as the best indicator of industry health. We arrive at RevPAR by multiplying the average nightly rate that a hotel charges by its occupancy percentage level during the period.
Pair Us, Hilton
Hilton's been enjoying its return as a publicly traded company, closing out the holiday quarter in fine fashion. RevPAR rose 6.6 percent for the quarter, climbing 7.1 percent for all of 2014. Healthy occupancy levels and rates should continue. Hilton is targeting RevPAR to move 5 percent to 7 percent higher in 2015.
Hilton has been growing through acquisitions, developing new brands, and converting non-Hilton hotels. Its portfolio today consists of 4,322 owned or franchised hotels and timeshare properties, offering 715,062 rooms in 94 countries and territories. It went public, again, at $20 a share in late 2013.
Hi at Hyatt
Hyatt's comparable systemwide RevPAR rose at a less impressive 3.1 percent clip, but the hotelier points out that it would have been a 5.1 percent boost if it weren't for currency fluctuations. Things were even better for its stateside full-service hotels, which checked in with a 5.8 percent pop in RevPAR.
Chicago-based Hyatt is the smallest of the three chains that reported on Wednesday, but it still covers a lot of territory. Hyatt watches over 578 hotels across 50 different countries. Last week it moved to make Wi-Fi a free standard feature for guests at all of its properties.
Swing High, Sweet Marriott
Hilton and Hyatt reported quarterly results on Wednesday morning, and Marriott followed at the end of the trading day. Its RevPAR performance was in line with Hilton's results earlier in the day. RevPAR rose 6.2 percent for the quarter and 6.6 percent for the entire year. Like Hilton, Marriott is targeting RevPAR growth of 5 to 7 percent in 2015.
Marriott's another global juggernaut, with 4,175 properties and timeshare resorts offering a total of nearly 715,000 rooms. Marriott turned heads earlier several weeks ago when it teamed up with the American Hotel & Lodging Association to lobby for the right to jam personal Wi-Fi hotspots in vulnerable conference room areas. It backed down after it made waves for all the wrong reasons.
Inns Are In
It's a good time to be housing overnight guests professionally. The global economy is showing signs of life, and even the volatility in currencies can be tied to an uptick in foreign travel for those trekking out to countries where they can get more for their money.
Keep an eye on RevPAR. It's the ultimate measuring stick in sizing up a chain's ability to fill its rooms and command compelling rates. With the industry leaders improving and pointing to another upbeat year ahead, it may make sense for travelers to check into these hotels as investments, too.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Hyatt Hotels. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.
Imagine that you've been investing in a certain stock, mutual fund or exchange-traded fun over the last 18 months, buying 10 shares of it once every three months. Now, after some ups and downs in the share price, you'd like to pare back your position. Maybe you need that cash to pay bills, put a down payment on a house or buy a boat. Or maybe you've just retired and are starting to plan your withdrawal strategy for living expenses.
Whatever your circumstances, one of the most important factors to consider is how the sale will affect your tax bill.
The way many brokerages deal with a sell order is known as FIFO -- first in, first out. It prioritizes selling long-term positions before short-term positions. In other words, the brokerage will first sell the shares that you bought the earliest.
However, there's a better order that you should follow in selling your shares that can help you at tax time.
When selling shares at your broker, you can typically specify which lot to sell from (each buy creates a new tax lot). The list below suggests the order in which you should sell lots, though you can pull from multiple lots in the same sale transaction. Remember that it is usually preferable to minimize trading (and the transactions costs that it implies) as much as possible.
1. Sell short-term losses first.
Offset any short-term capital gains (which would be taxed at your marginal rate) realized this year.
2. Sell long-term losses.
Offset any long-term capital gains you've realized this year. If you have more total losses than gains, you can offset up to $3,000 of your current income.
3. Sell long-term gains (if necessary).
The tax rate on long-term gains is lower than the tax rate on short-term gains, so it makes sense to prioritize the sale of long-term gains before short-term gains.
4. Sell short-term gains (if necessary).
The tax rate on short-term capital gains is the same as your income rate, so there's no benefit to making sales of short-term gains before liquidating other types of lots.
Though the default order at the brokers is typically FIFO, you should see if you can change it: a loss harvester option should implement this order without forcing you to pick the specific lots. (It's worth noting that the loss harvester option may be default at some brokerages.)
Here's a visual example that will hopefully clarify the strategy further. The chart below shows the price movements of a fictional stock, which you first bought on Nov. 30, 2012, at $105.69. In the following year and a half, the stock price moved up and down, and you continued to buy, at anywhere between $129.45 on Aug. 31, 2014 to $108.87 on Nov. 30, 2014 (the last time you made a purchase).
Now that you want to pare down your position, where do you start? Based on your per share lot cost basis and the stock's current price ($109.61), you would order a sale on three of your more recent transactions first. The most recent purchase -- that made on Nov. 30, 2014, is a short-term capital gain and should be sold last, if at all.
The chart below shows you how the rest of the lots should be prioritized, if they need to be sold at the current price.
Note that the information presented here is meant to explain general tax-efficient strategy and does not present specific investing advice. For that, investors should confer with their tax adviser.
Aaron Gubin heads research for SigFig's Asset Management team. Nearly a million people use SigFig to track, improve and manage over $300 billion in investments. This information was prepared to explain general tax-efficient strategy. Prospective investors should confer with their personal tax advisers. SigFig assumes no responsibility for the tax consequences to any investor of any transaction.
Mom Brands makes a lot of bagged cereals that are a lot cheaper than better-known boxed cereals. Its Cocoa Dyno-Bites and Fruity Dyno-Bites are the cheap alternative to Post's Cocoa Pebbles and Fruity Pebbles. Mom Brands also sells Froot Loops knock-off Tootie Fruities and Rice Krispies cousin Crispy Rice.
Losing the independence of the discount brand, the 22 "community, farm, faith, food and hunger groups" said on Wednesday, will concentrate the overall breakfast cereal market so that four companies will control 90 percent of sales. And that, they said, will likely force consumers to pay more. So, the groups are asking the Federal Trade Commission and all 50 state attorneys general to investigate the merger and its potential impact on grocery prices.
"The cereal aisle is one of the least competitive places in the grocery store," said Wenonah Hauter, executive director of Food & Water Watch, one of the coalition members. "This proposed merger would join traditional brands, private label and discount brands, taking choices away from consumers, especially those who are trying to stretch their grocery dollars by shopping for discount brands."
The letter was signed by Citizens Action Coalition of Indiana; Consumer Federation of America; Equal Exchange; Food & Water Watch; Food and You; Food Chain Workers Alliance; Hunger Action LA; Hunger Action Network of New York State; Institute for Agriculture and Trade Policy; Iowa Citizens for Community Improvement; Land Stewardship Project; Missouri Rural Crisis Center; National Family Farm Coalition; National Farmers Organization; National Farmers Union; National Sustainable Agriculture Coalition; Organic Farmers' Agency for Relationship Marketing; Restaurant Opportunities Center United; Rural Advancement Foundation International - USA; TakeAction Minnesota; United Church of Christ Justice and Witness Ministries; and WhyHunger.
There is another side to the story, though. The deal comes at a time when breakfast cereal consumption is on the decline. Boxed cereal sales, in particular, have taken a hit, with earnings declining at Kellogg (K) and Post.
Americans have increasingly turned to alternatives for breakfast. In the mid-1990s, nearly 40 percent of consumers said they started their day with a bowl of cereal. That is now below 30 percent. While overall cereal sales have fallen, bagged cereal sales have increased by nearly 6 percent over the past four years.
The big question is that if Post controls Mom Brands, will the price of bagged cereals move closer to the lofty prices charged for better-known boxed brands.
Here are the 10 biggest-selling brands of breakfast cereal, according to the industry journal BakeryandSnacks.com:
