FordFord's new-from-scratch Sync 3 in-car system will replace MyFord Touch over the next year.
From all appearances, Ford (F) has been making some great cars and trucks lately. Models like the compact Focus and midsize Fusion sedans win high praise from critics for their solid feel, sure-footed handling, and premium interiors -- and sales across the board have been pretty good.
But recently, Ford has taken a beating in the reliability department. Consumer Reports' latest auto-brand Report Card dropped Ford to 24th out of 28. Ford also fell well below average in the newest Vehicle Dependability Study from respected analyst firm J. D. Power.
What's the problem? Technology.
Glitches in MyFord Touch Hurt Ford's Rankings
J.D. Power's recent report said that the two top problems reported in its latest study were issues with "Bluetooth pairing/connectivity and built-in voice recognition systems misinterpreting commands."
Ford isn't the only automaker having problems on those fronts. But Ford is having more than its share of troubles with its infotainment system, which uses a touchscreen and voice commands to control many popular in-car features.
The MyFord Touch system is at the center of a lot of the consumer complaints behind the Blue Oval's low ratings. Owners say that MyFord Touch is slow, buggy, and not intuitive to use. And sometimes, it just freezes up. That's not good when you're trying to keep your eyes on the road.
Ford has tried updating the system's software several times. The updates helped, but the complaints have continued. Ford is now taking a drastic step -- throwing out MyFord Touch and starting over from scratch.
Ford Is Starting Over With Sync 3
The current MyFord Touch system uses hardware made by Sony (SNE) and an operating system made by Microsoft (MSFT). But that system won't be around much longer. Ford is replacing it in its 2016 Ford and Lincoln models with a new system, called Sync 3.
Sync 3 is designed from the ground up to be a lot easier to use -- and a lot less likely to crash. It uses a hardware system from Panasonic (PCRFY), which has recently made an aggressive push into automotive electronics with some well-regarded systems, and an operating system made by a company called QNX -- owned by Blackberry (BBRY).
QNX's in-car system has developed an enviable reputation for being resistant to "crashing" -- freezing up, or requiring a reboot. In other words, it just works. It's the ideal base for a system like this, and that's why QNX already counts BMW (BAMXF) Porsche and Honda (HMC) among its customers.
Now Ford will join them.
So Far, the New System Looks Like a Big Improvement
Ford demonstrated the system at the Consumer Electronics Show back in January. Consumer Reports -- one of the harshest critics of MyFord Touch -- gave the new system a tentative nod of approval.
"With a simpler layout and larger buttons, more intuitive menus, and a faster response time that Ford promises will carry over to production models, Sync 3 appears to be off to a good start," the magazine wrote. The reviewers said that they were "cautiously optimistic" that the new system "could be a winner."
Other reviewers have noted that Sync 3's voice recognition capabilities have been greatly improved over those in MyFord Touch. It integrates more easily (and more extensively) with smartphones than its predecessor, and it has the ability to receive "over the air" updates. Updating MyFord Touch requires a visit to a dealer.
Will Sync 3 Give Ford's Quality Ratings a Boost?
If you're thinking about buying a new Ford, and if these kinds of features are important to you, it might be worth holding off until the new Sync 3-equipped models start showing up at Ford dealers later this year.
For the most part, Ford's quality has come a long way over the last few years. The latest Fords are quieter and more refined than their predecessors, with premium interiors and lots of thoughtful touches.
But the MyFord Touch system's glitches have held the company back. If Sync 3 turns out to work as well as Ford expects, it could give the company's quality ratings a significant boost.
travellight/ShutterstockYou can sell empty wine bottles and used corks online.
Even though a lot of us are still checking the weather every night to see if we can expect a snow day, spring is on its way -- I promise!
Spring weather means spring cleaning, which also means getting rid of a lot of clothes, books and toys you no longer need. Cleaning the house isn't always the most fun task, but think of it this way: The more you clean, the more you can find ways to earn money from the stuff taking up space in your closets and drawers.
Wouldn't a little financial motivation help you feel more excited about cleaning out your house -- and maybe even tackling the garage?
Take a look at these seven ways to make money from spring cleaning -- and then set aside some time to turn your messes into financial successes.
1. Sell Items in Facebook Garage Sale Groups
Having a garage sale is a time-tested way of earning cash from your old stuff, but hosting one also means giving up an entire weekend to sit outside and wait for people to stop by your house.
This spring, try a Facebook garage sale instead. Search Facebook for "garage sale group" or "yardsale group," and look for groups in your area. You'll probably find at least one public group of people who are interested in buying and selling items like clothes, books, baby gear and more.
Join the group, learn its rules and guidelines, and start listing your stuff. One contributor to The Penny Hoarder has made $600 selling leftover renovation supplies, baby clothing and other items in her local Facebook garage sale groups.
2. Get a Table at Your Local Flea Market
Prefer to sell your belongings face-to-face? Skip the yard sale and get a table at your local flea market. You'll probably have to pay a table fee and may have to buy a license, but you'll also put your wares directly in the path of interested buyers without having to go through the typical garage sale steps of advertising, putting up signs and crossing your fingers that people turn down your street.
If you want to learn more, check out this guide to selling at flea markets. Who knows -- maybe you'll like it so much that you'll start hitting up other people's garage sales to get even more stuff to sell at your flea market table!
3. Sell Your Clothes Through Online Consignment Stores
If you've got high-quality clothes that you want to exchange for high-quality cash, it's time to think consignment.
Take your brand-name or designer items to brick-and-mortar consignment stores, or save yourself the trip and sell them to online consignment retailers like Tradesy, Threadflip and Twice. These online consignment stores often give out free shipping kits to make it as easy as possible to send in your gently used clothes.
Some online consignment stores pay you in cash, and others pay in store credit that you can use for next season's fashions. Either way, you're turning your old stuff into something new.
4. Get the Best Price for Your Old Books
We already looked at using book reseller sites to get the best price for used textbooks, but you can also use many of these sites to resell fiction, nonfiction, comic books and more.
Check sites like BookScouter, eBay's Half.com and Amazon Trade-in to see who offers you the best deal. If you're selling comic books, ComicBookResources.com gives you values for different comics so you know how to set fair prices. As with online consignment stores, be aware that some reseller sites, such as Amazon, only pay in store credit or gift cards.
5. Turn Old Newspapers Into New Treasures
Recycling old newspapers is great, but making money off old newspapers is even better.
Try selling old newspapers to people who are looking for their "birthdate edition" on eBay or turning your old newspapers into jewelry. Here's an idea to get you started: find evocative words like "love" or "hope," cut them out and turn them into glass gem pendants.
6. Cut Out and Sell Magazine Ads
Got a stack of old magazines? Believe it or not, there are plenty of people willing to pay for old magazine ads -- up to $50 per ad on sites like eBay.
Cut out your full-page magazine ads and start listing them online to see how much you can earn. Make a little extra money by buying dollar-store frames and framing the ads before you sell them, so they're ready to be displayed in someone's home or office.
7. Raid Your Recycling Bin
Before you take your recycling bin out to the curb, check it for items you can recycle into money.
Collect empty wine bottles and corks to sell on eBay -- people buy them for crafting and jewelry making. Return bottles and cans for a deposit, and sign up with RecycleBank to earn rewards for all your recycling.
How much money do you think you can make during your spring cleaning this year?
www.superchix.com
Yum Brands (YUM) -- home of Taco Bell, KFC and Pizza Hut restaurants -- is expanding a test of another chicken concept, specializing in chicken tenders and fried chicken sandwiches, with hand-cut fries and frozen custard.
The first Super Chix opened 11 months ago in Arlington, Texas, and Yum Brands just announced that it will open a second location next month in Dallas.
"The last true chicken sandwich," the chain promises on a huge sign that takes up one wall, likely a shot at Chick-fil-A's bragging rights for inventing the chicken sandwich. Potato sacks line the queue, and that's either a tip of the hat to Five Guys or a not-so-subtle way to remind patrons that it does cut its fries in-house. The design is slick and modern, just as one finds at most of the leading fast-casual chains.
Fowl Tip
It will take some time before the fast-casual Super Chix moves the needle at Yum. After all, we're talking about a company that kicked off 2015 with 14,197 KFC, 13,602 Pizza Hut and 6,199 Taco Bell locations.
It's also important to point out that Yum considers Super Chix an "exploratory" concept. The company's not ready to begin an aggressive rollout of the concept, though opening a second location just 12 months after opening the original test concept would seem to bode well.
Other recent exploratory concepts at Yum have been slow to scale. Yum opened KFC eleven -- a fast-casual spin on its top chicken chain -- near its home base of Louisville two years ago. It also opened U.S. Taco Co. -- an upscale spin on its own Taco Bell, featuring premium Mexican eats, including $10 lobster tacos -- in California last year.
Feather in Its Cap
Super Chix appears to be the exploratory concept with legs, and given Yum' resources, it wouldn't be a surprise to see it expand quickly once the second location opens in Dallas in a few weeks.
Yum can use the boost. Worldwide system sales inched a mere 3 percent higher in 2014, and that was after it opened more than 2,000 new international eateries throughout the year. There were struggles in its important Chinese market, but also lackluster growth closer to home despite introducing a breakfast menu at Taco Bell. Pizza Hut continues to meander in a competitive pizza market, and KFC still can't seem to shake the unhealthy connotations of its offerings.
You could camp this summer at Yellowstone National Park for $22.50 a night, if you can get reservations, or you could park your RV free by volunteering as a campground host. This is just one of the hundreds of volunteer opportunities that come with some sort of lodging via the National Park Service this year.
Often referred to as "work camping," thousands more volunteer opportunities with amenities you might find amenable also are available through federal agencies such as the Fish and Wildlife Service, Forest Service, Bureau of Land Management and the Army Corps of Engineers. Many states offer free stays for their park volunteers, too. Duties vary widely. For example:
Campground hosts at Yellowstone maintain campsites, tell visitors about park programs, explain how food storage regulations help keep black bears at bay and assist in special operations like looking for little campers gone astray. In return, NPS offers free hookup (water, sewer and electricity) for your RV or full trailer in the large campgrounds and partial hookups in remote campgrounds. Propane is reimbursed after the season.
Interpretive guides at Garnet Ghost Town in western Montana lead visitors back in time and tell them about the area's mining heritage and Montana history. They work in the visitors center and conduct guided tours through the hills. In return, BLM offers a cabin with no electricity, running water or bathroom. It does provide propane for a cooking stove and wood for wood stove.
An "enthusiastic couple" at the Okefenokee National Wildlife Refuge in southeast Georgia will help staff a visitors center where they will greet tourists, operate the bookstore and run interpretive and environmental education programs. Besides "beautiful sunrises and sunsets," the Fish and Wildlife Service offers an RV pad with full hookup as well as a laundry facility.
Other volunteers who often tow their housing with them may conduct wildlife population surveys, assist in laboratory research, photograph wildlife and habitats, present living history demonstrations in period costumes, build fences, paint buildings, make cabinets, clear trails or even work behind the scenes on agency websites.
Three Days to Three Months
Some assignments require just three days of work a week, others more, to qualify for housing or RV space. Many volunteer posts with lodging require time commitments -- often one to three months.
At Grand Portage National Monument in Minnesota, RV pads, hook-ups, and laundry are available to friendly, active living history volunteers who commit to stay through Labor Day and portray the year 1797 with third-person interpretation and demonstrations.
If you haven't got a whole season, some travel volunteer opportunities take just a week. Trash Tracker participants help clean up along the 1,960-mile Lake Powell shoreline in the Glen Canyon National Recreation Area along the Arizona-Utah Border. In return, they get to spend five to seven days aboard a houseboat donated by park concessionaire Aramark. They bring their own food.
The National Park Service alone in 2014 tallied 246,000 Volunteers-in-Parks, who donated about 6.7 million hours of service working side-by-side with rangers so 292.8 million visitors could enjoy their jaunts. "This is the equivalent of having about more than 3,200 additional employees," the NPS says.
Testimonials
"I enjoy the opportunity to use my skills and talents as both an artist and a teacher to bring the conservation message to the public," volunteer Donald Davidson explains in a 2014 NPS video about volunteering.
"Even the work we did on the trails, I've never done anything like that before," Rex Gresham of Dallas said in a 2011 NPS video he'd never backpacked or been in the wilderness before volunteering for the first of 140 service projects in which he participated. "We wasn't getting paid, and I couldn't get enough of it."
Volunteers come in all ages, as families, couples or individuals. Some duties and time commitments lasting weeks or months better suit empty nesters and retirees. To get started, visit Volunteer.gov to apply. You can search for opportunities based on keywords, location, agency, interest or even housing type: bunk house, cabin, campsite, RV/trailer pad or even a trailer. You could connect people to their parks while staying free in one yourself.
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For many Americans, every penny counts, and the idea of a sudden influx of cash -- an inheritance, gambling win or game show prize -- conjures images of new cars and sunny beaches. But, experts warn, don't take that luxury vacation before understanding the tax implications of your windfall.
It's Not Free Money
Any time you come into unexpected money, you'll receive a check (or cash) with one hand and a tax form with the other. That's right -- as soon as you're aware of your windfall, and possibly before, the Internal Revenue Service will know, too. How you'll have to declare it, and the rate of taxes on it, will depend on two key factors: the type of windfall, and the state where it occurs.
A gambling win in Las Vegas, for instance, is different from winning a charity bingo in Virginia. And laws governing inheritance tax vary by state. An inheritance tax in Iowa will be different from an estate tax in Rhode Island. Two states -- Maryland and New Jersey -- collect both an inheritance tax and an estate tax. If you live in California and your late Aunt Penny lived in North Carolina, you'll have to file a return in her state, as well as in yours.
Amy Wang, an accountant and technical manager at the American Institute of CPAs, tells people who come into sudden money to consult a tax professional before the first penny is spent. "It's dangerous," she said, "if you make poor decisions, you can end up actually owing more money at the end of the year than the money you actually received."
Minimize the Tax Burden
Jackie Perlman, principal tax research analyst at The Tax Institute, said one of the benefits of consulting a professional immediately following any windfall is that they'll be able to advise on how to keep as much of your gain as possible. "If you receive an unexpected bonus at work or win the lottery, you may be able to make additional contributions to your IRA, or make tax-exempt gifts to your children, or charitable donations that will lower the overall tax burden," she said.
For instance, rather than treating your family to an overdue vacation, utilize the IRS gift tax exclusion, which permits a tax-exempt gift of $14,000 per dependent in 2014 and 2015. You can still indulge them to that vacation by giving them the cash first, and having them buy their own ticket.
"There are many things that can help you lower your tax burden on a major windfall," Wang said. "You can make donations to your favorite tax-exempt political or charitable organizations, pay tuition or medical expenses for a loved one ... all things you might have done anyway."
Investing in a loved one is its own reward, but investing in your own future can also help ease your tax burden. "If you're working, make extra contributions to your IRA that will lower your overall tax burden. You might qualify for a deductible IRA, or you might have other deductions you can make, or make an extra payment of some kind," Perlman said. "But make sure you know what you're doing." Perlman also recommended ensuring you have enough withholding and estimated taxes to cover your liability so there are no surprises when you file in April.
The Downside of an Upside
There are worse things in life than being bumped up an income bracket, but Perlman warns that an influx of sudden cash can have far-reaching implications. "If you are somebody who has health insurance through the marketplace, and you got an advance premium tax credit," she says, "your windfall could have a dramatic effect on that tax credit."
It's not just health insurance that could be affected. College scholarships, low-income home loans or housing allowances could also be impacted. Like the myriad ways unexpected funds might arrive, there are myriad personal financial situations, and ways to manage them through windfalls and unexpected losses. And be aware that it might not be something an online tax software provider, or personal financial management app can walk you through.
Despite the immediate surge of an unexpected influx of cash, Wang advises looking at the bigger picture. "Always look at your long-term financial strategy, not just how to improve your current lifestyle," she said.
DETROIT -- Honda Motor (HMC) is adding nearly 105,000 vehicles to its growing U.S. recall of driver's side air bag inflators that can explode with too much force.
The added vehicles include nearly 89,000 Pilot SUVs from the 2008 model year, as well as about 11,000 Civics from 2004 and another 5,000 Accords from the 2001 model year.
Honda said that it's the first recall of 2008 Pilots for potential problems with driver's air bags made by Takata of Japan. The inflators can blow apart a metal canister and spew shrapnel into drivers and passengers. At least six people have died worldwide due to the problem.
Dealers will replace the driver air bag inflators for free. With the added vehicles, Honda has now recalled 5.5 million Honda and Acura cars and SUVs nationwide from the 2001 to 2011 model years because of the air bag problems.
So far, 10 different automakers have recalled over 17 million cars and trucks in the U.S. and 22 million worldwide because of the air bag problem. There could be as many as 30 million vehicles with Takata air bags across the U.S.
Honda said in documents posted Thursday by U.S. safety regulators that it found the additional vehicles by checking Takata inflator part numbers against Honda vehicle identification numbers in its factory records. Some 2001 Accords and 2004 Civics already were included in a recall from last year.
After announcing the driver's side recall last year, Honda started checking part numbers, spokesman Chris Martin wrote in an email. "The process required a significant amount of time to cross-check large databases, but helped to assure that each vehicle had been identified," he wrote.
Honda has no new reports of inflator ruptures and has no reason to believe further expansions will be needed, Martin wrote.
The company said it will send letters to owners of vehicles in the expanded recall "over time" as replacement parts become available.
The recalls are nationwide for driver's side air bags. There were separate recalls announced last year for passenger air bags in high-humidity areas including Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico and the U.S. Virgin Islands.
Unknown Variables
Takata uses ammonium nitrate to create a small explosion that quickly inflates its air bags. But government investigators say the chemical can burn faster than designed if exposed to prolonged airborne moisture. That can cause it to blow apart a metal canister meant to contain the explosion. Automakers, Takata and the government all want to find out just how much humidity and time it takes to cause the problem, both of which are unknown.
Takata, the National Highway Traffic Safety Administration and the auto industry are investigating to figure out just how much humidity over how much time can cause the problem to happen.
The 10 automakers, fed up with slow progress by Takata in finding the cause, hired a Virginia rocket science company to investigate the matter. Orbital ATK has the ability to quickly simulate the impact of humidity on chemicals over long periods of time.
NHTSA began fining Takata $14,000 a day on Feb. 20 for allegedly failing to fully cooperate in the government's investigation. The fines have grown to $392,000 as of Thursday. The Justice Department also is investigating Takata for possible criminal prosecution. The company has known about the air bag problems since at least 2004.
NEW YORK -- Target has proposed to pay $10 million to settle a class-action lawsuit brought against the retailer following a massive data breach in 2013.
Individuals affected by the breach could get up to a maximum of $10,000, the proposal says.
Target's data breach in 2013 exposed details of as many as 40 million credit and debit card accounts and hurt its holiday sales that year. The company offered free credit monitoring for affected customers and overhauled its security systems.
We are pleased to see the process moving forward and look forward to its resolution.
The proposed settlement would also require Minneapolis-based Target to appoint a chief information security officer, keep a written information security program and offer security training to its workers. It would be required to maintain a process to monitor for data security events and respond to such events deemed to present a threat.
"We are pleased to see the process moving forward and look forward to its resolution," Target spokeswoman Molly Snyder said in an emailed statement.
The company said in court documents filed in Minnesota that the funds for reimbursements will be kept in an interest bearing escrow account. Claims will mostly be submitted and processed online through a dedicated website.
The chain has worked hard to lure back customers that were hesitant to shop there after the incident. Over the 2014 holiday season, Target offered free shipping on all items. It recently announced that it was cutting its minimum online purchase to qualify for free shipping in half to $25. And Wednesday the retailer said it will now allow returns for up to a year for its private and exclusive brands.
Target's bounce back from a turbulent stretch including the data breach and exit from Canada has been met with optimism on Wall Street. The retailer's stock traded above $80 for the first time Monday, reaching another in a string of all-time highs that it began to log just before the crucial holiday shopping season began in December.
Earlier this month, Target said it would lay off about 1,700 workers, eliminate another 1,400 unfilled positions and cut up to $2 billion in costs. It will also focus more on technology to boost online sales growth. The latter move will involve about $1 billion aimed at beefing up business from shoppers who are more likely to shop online.
A court hearing on the proposed settlement is set for Thursday in St. Paul.
Target (TGT) shares fell 56 cents to $80.50 in afternoon trading Thursday. It's shares are up 35 percent over the past year.
NEW YORK -- New York to London for $15? That could soon be a reality, at least if Monday's news concerning Irish low-cost airline Ryanair is to be believed. Ryanair's board has approved plans to launch routes in the next five years between the U.S. and up to 14 major European cities, with destinations including London, Berlin and Dublin, touting tickets for as little as $15 one-way.
Ryanair, Europe's largest low-cost carrier, has built up an annual passenger base of 89 million and runs more European routes than any other airline. If the company has any brand recognition at all on this side of the Atlantic, it's largely because of its often-cartoonish chief executive, Michael O'Leary, a man whose flair for PR is matched only by the sharpness of his tongue. O'Leary caught the attention in the U.S. in 2009 when he suggested that his company might introduce a $1.50 charge on passengers for using lavatories in-flight.
That's a lead-in fare ... Airlines don't run a social service.
With that in mind, many in the airline industry have afforded themselves a wry smile at extensive media coverage of the $15 ticket.
"That's a lead-in fare," says Chris Tarry of CTAIRA, an aviation industry research body. "Of course everybody's written about it, but even [Ryanair spokesman] Kenny Jacobs says that the majority of tickets will be more, and my words would be 'much more,' than 99 pounds [$145.63]. Airlines don't run a social service."
George Hobica, founder of travel advice website airfarewatchdog.com, agrees. "They will only have a few seats at that fare, and that's just the base fare," he says. "It's going to come with all kinds of fees and taxes and by the time you're done it's going to be $300 minimum. $15 fares are just a publicity stunt, and that's my bottom line."
That being said, for travelers used to paying $1,000 or more for round-trip journeys to Europe, Ryanair's planned entrance into the transatlantic market could be a godsend, even if the chances of securing the very cheapest fares are slim. What's more, it may also jolt existing carriers to lower fares, which have risen rapidly in recent years.
'Shot Across the Bow'
"It's a shot across the bow," says Hobica. "If you look at international fares from the U.S., it's curious that they've remained high on routes, for reasons I cannot understand. New York to Amsterdam this summer is selling for $1,500 round trip, which makes no sense -- you can fly the same distance, New York to California, for $250.
"I realize there are taxes involved, government fees, but especially with oil prices coming down, and when you consider these airlines are flying Boeing 787s with supposedly 20 percent lower fuel costs, there is room for price reduction," Hobica added.
Ryanair is not alone in seeking to attract transatlantic travelers with lower cost tickets. WOW Air already offers flights from Boston and Baltimore to several European destinations, via Iceland, from around $200 one-way. Norwegian Air, another company advertising cut-price tickets to Europe, currently offers flights from JFK to London Gatwick for $350 one-way.
The question remains whether these low-cost carriers can succeed where others have previously failed -- that is, by remaining profitable. Norwegian reported a NOK1.05 billion ($127 million) loss in 2014, largely as the result of its expansion into North America, and Hobica suggests this could be a sign of things to come.
"I think it may end in tears in some cases because of capacity issues," he says. "We could see again what happened in the U.S. 20 to 30 years ago with too many airlines chasing too few passengers."
Maximizing Revenue
CTAIR's Tarry is more optimistic, though he admits that truly low fares will be quickly forgotten, as Ryanair balances the availability of the cheapest tickets with more expensive premium economy seats.
"Kenny Jacobs has suggested that 50 percent or more of the seats will be for premium economy passengers," he says. "An airline is no different from a retailer, because they're trying to maximize revenue for each square foot of floor space. Premium economy has become the most profitable element of floor space, the sweet spot in low-cost long haul -- a little bit more legroom, a few other extras, which people have been prepared to pay for."
The cheap prices can be a headline or a lure, but the airline has to get the right number of passengers paying a pretty penny for more comfortable accommodations.
"So it's about getting the mix of passengers right, not just filling an aircraft with as many seats as possible," Tarry says.
So if you're in the market for premium economy, Ryanair might be just the ticket. But those of you hoping for a $15 trip to London should probably keep your feet on the ground.
NEW YORK -- Nobody knows when exactly, but the day will eventually come when the Federal Reserve nudges its benchmark lending rate from next to zero to something slightly higher.
When that happens, it will put upward pressure on borrowing rates throughout the economy -- for credit cards, mortgages and student loans. But that doesn't mean the era of incredibly low interest rates will soon be over.
The Fed's chair, Janet Yellen, has taken pains to be cautious. On Wednesday, the central bank gave more signals that it will move slowly toward its first interest-rate increase in nearly a decade. By the end of the year, Fed officials expect the benchmark rate will reach 0.625 percent.
It was a different world the last time the Fed began a series of hikes. Rates were already much higher than today. In June 2004, the Fed lifted its benchmark rate from 1 percent to 1.25 percent. By the time the Fed was finished in 2006, the rate had reached 5.25 percent.
Nobody expects anything like that now. With the economy still growing slowly and inflation minuscule, rates will likely hover near historic lows. The Fed doesn't want to ratchet up the monthly payments on your credit card. It's in no rush.
"You're going to see rates remain low for quite some time," says Patrick Maldari, senior fixed-income specialist at Aberdeen Asset Management.
Housing
Many expect mortgage rates to creep higher this year. The average 30-year mortgage carries a rate of 3.7 percent, according to Freddie Mac. That's close to a record low of 3.31 percent and compares with an average rate of 5.9 percent a decade ago.
Greg McBride, chief financial analyst at Bankrate.com (RATE), thinks homeowners ought to lock in mortgage rates as long as they remain below 4 percent. If you haven't refinanced already, in other words, consider it soon.
Home loans won't hinge on the Fed's next move, though. Mortgage rates are closely tied to long-term interest rates, specifically the 10-year Treasury note. These rates are tethered to the Fed's benchmark yet have plenty of wiggle room.
The 10-year yield has actually been falling over the past year. The reason? The Treasury market is dominated by global players. So when Europe's economy runs into trouble, for example, traders around the world look for safety in the Treasury market, buying U.S. government bonds and pushing yields down. Another factor: The Fed is keeping a lid on yields by sitting on trillions of dollars of Treasurys following a huge bond-buying program that ended last year.
Savings
It's been a tough time for people socking away money in savings. On average, savings accounts pay an annual percentage yield of 0.09 percent, according to Bankrate.com. A one-year certificate of deposit pays a paltry 0.28 percent. For every $1,000 saved, in other words, the bank will give you $2.80. Ka-ching!
"Savings rates are nearly at zero and, unfortunately, I think depositors aren't going to see much of a difference," says Casey Bond, managing editor at GoBankingRates.
The Fed has signaled that it will raise rates slowly and carefully. A series of hikes large enough to lift yields on savings accounts, however, could put the economic recovery at risk by curbing lending and business spending. "Anything that would give savers a real boost would be too disruptive," Bond says.
"I think people need to be focused on other things, like avoiding bank fees," Bond says. "Fees can wipe out your earnings because savings rates are so low."
Credit Cards
Credit card rates could start to inch up once the Fed raises its benchmark federal funds rate -- especially the low teaser rates credit card issuers use to entice people to sign up or shift credit card balances.
McBride advises that borrowers "grab those zero-interest balance transfers and introductory credit card rates. As the Fed moves away from zero interest rates later this year, credit card issuers will, too. Chip away at your variable-rate debt now before interest rates start to climb."
Credit card rates remain high -- variable credit card rates average nearly 15.8 percent, according to Bankrate.com. But they could head higher if the fed funds rate goes up. That's because credit card rates are based on the prime rate that banks charge their best customers, and the prime rate is based on the Fed funds rate.
Investments
To judge by the stock market's daily swings, investors fear the Fed's first rate increase. Speculation that the Fed is preparing to move usually knocks stocks down. But the market has actually performed well in the face of rising interest rates. A recent report from UBS (UBS) looked at the Fed's initial rate hikes going back to 1954. It showed that the Standard & Poor's 500 index rallied an average of 7.6 percent in the next six months.
Many investors are confident that as long as the Fed moves gradually, the stock market should be fine. That's what happened in the last round of Fed hikes, in 2004. The S&P 500 finished the year with a 9 percent gain.
NEW YORK -- U.S. stocks fell on Thursday as a stronger dollar weighed on oil and other commodity prices, sending energy and materials sectors lower.
The greenback rose after a sharp decline on Wednesday. The Federal Reserve appeared to be more dovish than expected even as it opened the door for a Fed funds rate hike as soon as in June. U.S. stocks rose more than 1 percent on Wednesday after the Fed statement.
"The forward path in interest rates is going to be slower than previously expected. The market celebrated that yesterday, and now it's wondering what comes next," said Kevin Caron, market strategist at Stifel, Nicolaus & Co in Florham Park, New Jersey.
Initial jobless claims rose marginally last week, indicating the labor market remained on solid footing. Growth has slowed in the first quarter, hurt in part by a harsh winter and a strong dollar, but many analysts see a positive outlook for the second quarter. "The economy seems to be doing better and that could be providing some support for the dollar," said Caron, noting the Fed's tightening path was not the only tailwind for the U.S. currency.
Situation Across Industry Sectors
WTI crude fell 1.9 percent and Brent fell 2.6 percent as the dollar strengthened, and on concerns over excess supply. The S&P 500 (^GSPC) energy index fell 1.7 percent.
The Dow Jones industrial average (^DJI) fell 117.16 points, or 0.65 percent, to 17,959.03, the S&P 500 lost 10.23 points, or 0.49 percent, to 2,089.27 and the Nasdaq composite (^IXIC) added 9.55 points, or 0.19 percent, to 4,992.38. Exxon Mobil (XOM) and Chevron (CVX) were among the biggest decliners in the Dow. Each lost about 2 percent. The Dow welcomed its newest member, Apple (AAPL), on Thursday. The iPhone maker took the place of AT&T (T).
Biotech stocks helped buoy the Nasdaq composite and the S&P 500's healthcare sector. Regeneron (REGN) added 2.9 percent to $486.02 and Biogen (BIIB) rose 1.3 percent to $433.65 after Credit Suisse upped its price target on the stock to $500 from $400. The Nasdaq biotech index rose 1.9 percent.
Guess (GES) shares surged 16 percent to $19.42. Quarterly profit beat analyst estimates as the apparel retailer's expenses declined and online business grew.
About 6.2 billion shares changed hands in U.S. exchanges, below the 6.67 billion daily average so far this month. Declining issues outnumbered advancing ones on the NYSE by 1,969 to 1,071, for a 1.84-to-1 ratio; on the Nasdaq, 1,441 issues rose and 1,288 fell, for a 1.12-to-1 ratio favoring advancers. The S&P 500 posted 36 new 52-week highs and 3 new lows; on the Nasdaq composite there were 149 new highs and 28 new lows.
The Associated Press contributed to this article.
What to watch Friday:
Earnings Season
These selected companies report quarterly financial results:
This week's question is about credit monitoring and ID theft prevention, something many Americans pay for monthly. Even if you don't use one of these services, you've almost certainly seen the ads. Here's the query:
"My question is: I now pay $9.95 each month to Tru-Credit, which purchases access to my credit report and credit score any time I want. In addition, I receive an email weekly, outlining any "activity" (or lack thereof) in my credit account. "Fraud Alert" is included in the $9.95 cost. I would appreciate your opinion on this service and it's cost. Thanks for the very helpful, down to earth, Money Talk News!!! - Jim"
Thanks for the kind words, Jim! And for the great question. Here's your answer.
Converting Fear Into Fees
They say sex sells, and I'm sure they're right. But I doubt it outsells fear. From burglar alarms to bomb shelters, Americans shell out billions annually to protect against all manner of evil: some real, much greatly exaggerated. But wherever fear can be churned up, you can bet there's someone not far behind making a buck. Such is the case with credit monitoring.
Credit monitoring is a $3 billion business, with millions of Americans paying for "protection" against ID theft and greater access to their credit histories and scores. The biggest beneficiaries? The Big Three credit reporting agencies: Equifax, Experian and TransUnion. The company Jim uses, Tru-Credit, is owned by TransUnion. I'd like to offer a few reasons why you probably shouldn't pay for credit monitoring.
1. You're Not Liable If Someone Opens Credit in Your Name
If someone forges your signature on a credit application, check or anywhere else, you're generally not responsible for the charges. The law limits your liability on stolen credit cards to $50, and virtually all card issuers waive even that.
As with anyone stealing anything, the thief is liable. And if the thief isn't caught or can't make restitution, it's a problem for the institution that accepted the fraudulent charge, not you.
Of course, we've all read stories of how credit fraud, like shoplifting, is passed along to consumers in the form of higher prices. We've also read about the nightmare than ensues when your identity is stolen: Your credit is trashed, and you're forced to spend months, even years, restoring it. So why isn't credit monitoring money well spent? Because of the following.
2. Credit Monitoring Doesn't Prevent ID Theft
Monitoring your credit is marketed as if it's a burglar alarm that keeps bad guys out. But what it more closely resembles is an alarm that's tripped as the bad guys are leaving. By definition, credit monitoring can only monitor transactions that have occurred, which isn't the same thing as prevention.
From Consumer Reports: "Affinion, Experian Consumer Direct and LifeLock [have] been caught and punished for alleged deceptive marketing practices, such as not adequately disclosing automatic sign-up after 'free' trials and promising to prevent ID theft, even though the services don't actually do that.
As it happens, dissuading crooks from making off with your identity and going on a spending spree isn't hard to do, and it doesn't cost a dime. Just put a fraud alert on your account.'"
According to Experian: "Fraud alert messages notify potential credit grantors to verify your identification before extending credit in your name in case someone is using your information without your consent."
I recommended fraud alerts in 2009: see Free ID Theft Protection. According to the Consumer Financial Protection Bureau, they're only supposed to be used if you "believe you are (or are about to become), a victim of fraud or identity theft." But with all the security breaches occurring practically weekly these days, doesn't every American qualify?
So fraud alerts are one way to slow crooks down. An even more effective method is a security freeze. A freeze means nobody -- including you -- can open new credit until your account is "thawed," a process that can take a few days. Unlike fraud alerts, depending on where you live, these aren't always free or even available, and some states also allow fees to temporarily lift the freeze. Read more about credit freezes at this page of the CFPB website and learn about the rules in your state at this page of the Consumers Union website.
3. It Costs Too Much
Against a backdrop of $11 for a credit report or $20 for a credit score, paying $10 a month for unlimited looks at your credit report and score may seem like a bargain. But considering what wholesale clients pay for your credit report, it's outrageous. According to the New York Times, while credit routinely sell your credit report to corporate clients for as little as 20 cents.
There are also services that monitor your credit at no cost. Credit Karma and Credit Sesame, for example, both offer free credit monitoring. They also offer free credit scores, although not the most widely used score, the FICO score. You don't have to provide a credit card to enroll with either of these sites. Do, however, expect to get periodic sales pitches for products like mortgage and car loans.
4. You Put Us in Danger -- and Now We'll Pay You to Protect Us?
More outrageous than the fees protection services charge is the fact that we should never have been in a position to need these services in the first place.
Unless you're the one who negligently leaves your credit information lying around, you shouldn't have to worry about your credit being co-opted, and you shouldn't have to jump through hoops if it happens. The banking and credit reporting industries make billions annually from American consumers. If they can't be bothered to create a system that protects the information they collect, sell and use to grant credit, they should solve -- and pay for -- the problems that result.
But instead of crafting a safer system, they craft clever commercials to sell you "protection." If everyone's credit was frozen, high-profile data breaches like those at Target and Home Depot would never have occurred, because the credit card information the crooks obtained would have been worthless. In short, the credit industry doesn't deserve to profit by charging you for protection from the mess it created.
Is Credit Monitoring All Bad?
There are those who disagree with me and tout credit monitoring and protection as a smart thing to do. For example, in this article, personal finance author Lynnette Khalfani-Cox says, "the single biggest reason to use credit monitoring is that you'll receive an incredible amount of credit education simply by staying on top of your credit. The mere act of constantly reviewing your credit files and being aware of changes to your credit profile promotes enhanced financial literacy and better credit awareness."
Monitoring your credit is a good educational experience. And if you're going to be applying for a mortgage or other big loan, the three free reports you're entitled to yearly from annualcreditreport.com may not be enough. But pay $10 a month or more for "education?" I'd advise against it, and so would the Consumer Financial Protection Bureau: "Before considering these services, be aware that free and low-cost services are also available to protect consumers."
Agree or disagree? Tell me what you think below or on our Facebook page. Got a question you'd like answered? You can ask a question simply by hitting "reply" to our email newsletter. If you're not subscribed, fix that right now by clicking here. The questions I'm likeliest to answer are those that will interest other readers. In other words, don't ask for super-specific advice that applies only to you. And if I don't get to your question, promise not to hate me. I do my best, but I get far more questions than I have time to answer.
Stacy Johnson founded Money Talks News in 1991. He earned a CPA (currently inactive) and has also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate. Got some time to kill? You can learn more about me here. 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.
We each grasp financial lessons at different points in our lives, but we're never too old -- or too young -- to start learning. Some lessons, however, are so basic that understanding them is nearly a prerequisite to financial survival. Whether you need a refresher yourself, or are responsible for shaping a young person's relationship with money, here are five financial lessons everyone should learn by kindergarten.
1. Money Represents Labor
At its most basic level, money is just labor in physical form. Whether you worked for it using your mind or your muscle, the green stuff is the result of some form of effort. And without making your 6-year old mop the floor for a bowl of mac 'n cheese, there are ways to gently and positively make the connections between effort and financial reward.
Of course, the secondary value of this lesson is how it can alter spending behavior. The "aha moment" you want to encourage goes something like this: "If money is labor, then the things I buy with my money also represent my labor." Fully grasping that concept is the root of healthier spending behavior for life (and if you're like me, you know a shocking number of adults who still don't quite get it).
2. Spending Is Not the Same as Investing
Though each may drain our wallets and bank accounts for a period of time, spending and investing are entirely different animals. Dropping $3,500 for a leather couch is spending, but using that same amount to buy a good used car that will get you back and forth to work is investing. Think of it this way. If the item or service you're buying will provide some sort of tangible dividend (such as the ability to stay employed, advance in a career, sell at a profit later, etc.) , it's an investment. If it doesn't meet that simple criterion, it's just plain old spending. If you haven't already, learn the basics of investing and put its power to work for you sooner than later.
3. Consumer Credit Is Dangerous
It may not seem this way, but every time we use a credit card, we're taking out a loan. Granted, it might be a mere $3.89 for a hamburger, but it's a loan. And let's face it, the last thing credit card issuers want their customers to do is pay off their balances every billing cycle (credit card companies have an endearing term for those who do -- "deadbeats"). They'd much rather have all those hamburgers, shoes, smartphones, and haircuts add up at a 17 percent interest rate.
Teach your kids the dirty secrets of credit cards. Tell them about the evil geniuses that lurk behind the magnetic strip. You know, the ones who conceived the evil formula of convenience + frequent use + low minimum payments = long-term debt and high returns. Create a bedtime story about an overspending prince who became a pauper because of plastic. It's a cautionary tale for the ages.
4. Wants and Needs Aren't the Same
When I was a kid, I desperately wanted a green plastic toy box shaped like a large frog. I don't remember the brand name, but I do remember wanting to own one so badly that every fiber of my 40-pound body nearly vibrated with green-plastic-frog-toy-box desire. I never got it. Kids want things with such wild enthusiasm that it's difficult for them to distinguish what they want from what they need. Had I been asked way back when, I'm sure I could have made a case why that frog toy box was essential to my survival - because it certainly felt that way.
But at any age, being able to clearly distinguish wants from needs is an essential skill. Why? Because we live in an economy that's made a science of confusing the two. Indulgence and denial aside, it's the identification that matters and it's the first step of being able to live within our means.
5. Money Can't Buy Happiness, but It Can Buy Choices
The value of money rests not in its ability to make us happy, but to buy us options in life. Authentic, well-financed choice is a rare bird these days. Many of us feel like we have choices, because we're presented with so many options as consumers every waking minute. But to me, most of these sorts of choices feel low-value - "trinket choices" manufactured purely to encourage spending. Only the most financially disciplined can afford to exercise a potentially life-altering choice like switching careers, moving across the country, starting a business, or retiring early. This level of choice gives us the power to reinvent ourselves at any stage of life.
Granted, these are only five lessons in a long list of financial fundamentals. But together, they form a great foundation for building security and wealth. If you're still learning, let your curiosity motivate you. And if you're helping a young person learn, be patient and avoid instilling a sense of fear about money. Remember, real power comes from understanding that money is not mysterious, wealth is not always the result of dumb luck, and financial security is within our control.
What financial lessons did you learn early in life? Who taught you and how? Which ones are you still learning?
Whether you are just beginning your career or already earning a large salary, there are many benefits to preparing your own taxes. I now work with a trusted accountant, but doing taxes myself for years gave me a huge leg up in the retirement savings game. Here are some of the benefits of filing your own taxes:
Understand the Impact of Taxes on Investments
Bonds, real estate investment trusts, stocks, dividends and capital gains are all taxed differently. It's not necessary to file your own taxes to learn the differences, but seeing the numbers for my own circumstances definitely prompted me to dig deeper into the details. By understanding the differences in how various investments are taxed, you can make more efficient asset allocation decisions. For example, putting particular investments in a taxable or non-taxable account can help you save on taxes. Tax knowledge can also aid in investment evaluation, because it's ultimately after-tax returns that are important.
Reinforce the Power of Tax-Advantaged Accounts
It's hard to grasp the tax impact of saving in a 401(k) when you write a few percentages on a sheet of paper, but the numbers all make sense when you file your own taxes. And every time you file the 1099-DIVs on your taxable accounts, you will feel grateful that you don't need to pay taxes on all the investments in your tax-advantaged accounts this year.
Inspiration to Refinance Your Mortgage
For years I knew I would benefit from a refinance because I could take advantage of lower rates, but I procrastinated doing the research and delayed going through the refinance process. Finally, typing a crazy amount of interest I paid into one year's tax return put me over the edge to do something about it. The process turned out to be pretty straightforward. It's too bad I didn't start earlier, because I lost money every day I waited. The good news is that I am still going to save tens of thousands of dollars due to that one move over the life of the loan.
Eliminate Misconceptions About the Tax Code
Going through the filing process from front to back is a great way to learn the truth about the tax code as it pertains to your situation. For example, some people mention a tax deduction as a benefit of having a mortgage, but many homeowners are only deducting part of the interest that was paid out each payment cycle, which means paying down your mortgage is still a good deal. When you learn about the tax code you will be able to make better decisions throughout the year that will help you financially at tax time.
Appreciating Your Wealth
The only thing worse than paying taxes is not paying any taxes at all. Many people complain about paying high taxes, but I sure hope I get to pay lots in taxes each year for the rest of my life because that means I'll have a high income for a very long time. For those who are in the highest bracket, there are plenty of people out there who envy your high income, despite the taxes you will owe this year. So take a moment to appreciate your success and how the taxes you pay are going to help others.
There are many benefits of knowing the tax code, whether you hire a professional to prepare your taxes or not. Making an attempt to file the necessary forms yourself once in a while will help you learn more about the complex tax system we have in this country. It may sound cumbersome to fill out the forms if you are used to paying someone else to do the work, but the move will surely boost your finances.
Joe and Ruth Castanheira moved from Ohio to a bigger house in Arizona, for their retirement. The newly married couple, both in their 60s, wanted a home that would accommodate the size of their blended family in a location that was closer to Ruth's ailing relative.
"We bought our dream home in Arizona in order to enjoy resort-style living during our retirement, fully expecting frequent visits and vacations from our family," Castanheira told MainStreet. "As it turns out, some of them have decided to relocate here as well."
The mindset has shifted. The Castanheiras are among the 49 percent of retirees who didn't downsize in their last move as well as the 30 percent who instead moved into larger homes, according to a new study called "Home in Retirement: More Freedom, New Choices," released by Merrill Lynch and Age Wave. It used to be that retirees downsized because they no longer need a large living space. Of those who upsized their living space, 33 percent of retirees did so to have a home large enough for family members to visit, according to the study. And 20 percent upsized so that family members would be comfortable enough to even live with them.
More Wants, More Room
"Retirees have more options today than ever before," said Brenda Hendrickson, an independent certified senior adviser. "They are moving to larger homes upon retirement, because they feel confident with their investments and feel they are doing fairly well."
Whatever the amenities -- whether increased space or quiet accommodations -- retirees are increasingly willing to pull out all the stops for their relatives' comfort. "The upscale homes in Florida have two downstairs master suites separated by soundproof walls because of snoring," said Dr. Sam Sugar, founder of the Americans Against Abusive Probate Guardianship in Miami.
That can be increasingly necessary, because 16 percent of retirees have a boomerang child who has moved back in with them. "A cohesive family is wonderful if you have loving children and grandchildren, but too many of us come from dysfunctional families, which can lead to disastrous circumstances if one child perceives a sibling is receiving special treatment," Sugar told MainStreet.
A few factors to keep in mind before upsizing are maintenance, care and repair of the home and homeowner association fees. "Retirees may want to consider spending what they would receive in the sale of their current home to avoid house payments," said Melody Juge, founder of Life Income Management. "Fees go up overtime, but usually retirement income does not. Also the cost of the move needs to be detailed, considered and well-budgeted."
One downside of upsizing is that retirees face unprecedented longevity. That coupled with that fact that fewer work in retirement and face increasing family obligations than in preceding generations can add financial strain.
"The equity you tie up in your home by upsizing will most likely reduce the amount of income your portfolio will produce," Thorndyke told MainStreet. "That is one way you can decide if you want to spend your money on upsizing your home."
That's right: It's time to tackle some spring-cleaning -- a process that has the potential to also clear out your budget, not to mention suck up your time. So we scoured the web to bring you our favorite, low-cost (and low-elbow-grease) DIY cleaning hacks that call for either items you already have at home or basic buys like lemons.
1. Freshen Your Garbage Disposal With Frozen Lemons
Want to rid your kitchen of funky smells? Start by sanitizing the appliance that vanquishes everything from old fish bones to rotten vegetables -- your garbage disposal. Simply place small lemon slices into each ice cube tray slot, pour vinegar over them, and freeze. When you're ready to clean, toss a handful into the garbage disposal and run it until the cubes are gone for a citrus-scented kitchen. To learn more, head to One Good Thing.
2. Deep-Clean Your Electric Oven With Bowls of Water, Vinegar
Given that a new oven can cost a few thousand dollars, it pays to keep it in tip-top shape -- like giving it a good scrub down from time to time. The problem is, the process usually involves a whole lot of elbow grease -- but with some extra-strength ammonia, you should be able to get that grime out with a swipe of a sponge. This method is not recommended for gas ovens.
Start by bringing 2 cups of water to a boil. In the meantime, preheat your oven to 200 degrees and then turn it off. Pour the boiling water in one oven-safe baking dish and the 1 to 2 cups of ammonia into the other oven-safe dish. Put each dish in the oven, placing the ammonia dish on the top rack. Leave overnight (about 8 to 12 hours) to let the ammonia tackle the caked-on grease. In the morning, remove the bowls and wipe the oven clean with a warm, wet sponge. To learn more, head to Fabulously Frugal.
3. Concoct Your Own Grout Cleaner
Did too many warm winter showers leave your tile looking worse for wear? The good news is that giving it some spring sparkle will take only about 15 minutes and cost less than $10-thanks to this hack. Mix ¾ cup baking soda and ¼ cup bleach until they form a thick paste, and apply the cleanser to the dirty grout lines in your shower. Wait 5 to 10 minutes. Then scrub the mixture into the grout with a scrub brush or old toothbrush After waiting another 5 to 10 minutes, wipe the tile clean with a damp rag. To learn more, head to Practically Functional.
4. Wipe Away Water Stains With Used Softener Sheets
Ready for one of the simplest cleaning tips ever? Remove those stubborn streaks on your shower door by repurposing used fabric softener sheets you were about to toss. Just lightly dampen each sheet with water and wipe away. To learn more, head to Practice What You Pinterest.
5. Descale Your Showerhead With a Plastic Bag
If the buildup on your showerhead is starting to resemble week-old pizza crust, it might be time to give this tip a try. Simply fill a plastic sandwich bag with vinegar and fit the bag over the spout so that it's completely submerged. You can secure the bag in place with a zip tie, rubber band or binder clip. Then leave it on overnight -- by the morning, your showerhead will look new. Be sure to run the water for a minute before taking a shower. To learn more, head to Bob Vila.
6. Dust Your Ceiling Fan With a Pillowcase
Normally, cleaning that thick layer of dust that's accumulated on your ceiling fan involves kicking up seemingly more dust than you started with. But this simple hack will save you from battling those flyaway particles. Just spritz each fan blade with dusting spray, and place an old pillowcase over each blade, one at a time. Press your hands down the length of the blade as you work to slip the pillowcase off. You'll collect all or most of the dust in one fell swoop. To learn more, head to The Thrifty Couple.
7. Suck Pet Hair From Carpets With a Squeegee
Special brand food, veterinary costs, grooming-having a pet can really add up. But what accumulates more quickly than these costs are the piles of pet hair. Ew. Simply combing a squeegee over carpets and fabric furniture can rid the surfaces of pet fluff. Best of all, you can snag a squeegee for as little as a buck at the dollar store. To learn more, head to Modern Mrs.
8. Lift Water Rings Off Wood With a Hair Dryer
Despite your best efforts to get everyone to use a coaster, it doesn't always happen. But water rings are surprisingly simple to remove. For this hack, just use a hairdryer to heat the stain for about 20 minutes-and watch it fade away. To learn more, head to Homemade Mamas.
General MotorsGeneral Motors has done surprisingly well in recent quality surveys. Consumer Reports has had high praise for several new GM models, including the Buick Regal sedan.
The latest auto reliability rankings from Consumer Reports and J. D. Power hold few surprises. Brands like Toyota (TM) and Honda (HMC) did well; others like Ford (F) and Fiat (FCAU) did less well. The Japanese automakers have dominated quality rankings for years. But lately, there has been a surprising newcomer near the top of the quality charts: General Motors (GM).
Strong Results for GM Brands in the Latest Quality Rankings
J.D. Power recently released its annual Vehicle Dependability Study. This study measures the number of problems that a brand's cars and trucks tend to have in their third year of ownership. It's a good way to gauge how well a company's cars will hold up over time.
There was a time when GM didn't do all that well in studies like these. But that time is past: GM's Buick brand was second in the 2015 rankings, trailing only Lexus. Cadillac was fourth, beating Honda (and all three German luxury brands), while Chevrolet and GMC finished 10th and 11th, with results for both well above the industry average.
GM also did well in Consumer Reports' latest auto brand Report Card, which ranks auto brands by a combination of road test results and reliability as reported by the magazine's subscribers. While Cadillac lost some points for iffy reliability in the magazine's results, the Buick brand shone -- again finishing ahead of Honda, and not far behind Toyota.
How did GM, of all companies, boost its quality to Japan-rivaling levels?
High Costs Made GM Uncompetitive for Years
It may seem hard to believe for those who have owned cars and trucks built by GM in the bad old days, but the company has always had the talent to produce great vehicles. But for years, there were two big factors standing in the way of that talent: cost and processes.
Cost was a big challenge. GM had too many factories that weren't building enough vehicles to generate good profits. That meant that GM had to spend more to build a given car or truck than its leaner Japanese rivals.
GM tried to overcome that disadvantage by designing cars that were cheaper to build. But customers weren't fooled: Those cars seemed more cheaply made than those from Toyota and Honda. GM had to resort to discounts to sell them.
The upshot: Profits got squeezed -- and when times turned hard, GM crashed into bankruptcy court. In a way, bankruptcy turned out to be great news for GM's product-development experts. The bankruptcy process allowed GM to shed a whole bunch of no-longer-needed factories. That, and a more favorable labor deal with the United Auto Workers, reduced GM's cost base.
GM's Own Internal Processes Were Part of the Problem
That solved part of the problem. But GM was still spending more than it should have been to develop new cars and trucks, in part because its product-development process wasn't working as well as it could have.
GM's process was cumbersome and bureaucratic. That was bad enough. But what was worse was that, too often, major changes were made to products late in their development cycles. That raised costs and delayed new products. GM's cars and trucks were getting better, but they were too often also-rans.
That's where Mary Barra came in. Barra is now GM's CEO, a job she earned by shining in her previous role, as GM's product-development chief.
Back in 2011, Barra announced a sweeping overhaul of GM's global product-development process. The changes were aimed at eliminating what Barra called "churn," GM's tendency to make major course changes to products that were well along in development.
The changes have saved GM $1 billion a year -- and they've helped GM get new products to market more quickly.
How Cutting Costs Led to Better Cars
GM now has more money to spend on every product it makes. It doesn't have to take the cheap way out anymore: It can (and does) build products that are good enough to sell at strong prices, without the steep discounts that squeezed its profits not long ago.
Some of GM's improvements are readily noticeable on test drives. Its new cars and trucks are quieter, with a more solid "feel." Interiors are a lot nicer, and not just on upscale models. And the cars' pieces seem to fit together better.
But some of the improvements have happened below the skin, where it's hard for customers to notice -- until they've lived with the cars for a while. Those are the changes that are now starting to show up in surveys like J.D. Power's.
Long story short: GM, and Detroit, have come a long way in the last few years.
Motley Fool contributor John Rosevear owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. Check out our free report onone great stock to buy for 2015 and beyond.
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There's no shortage of investors feeling that Darden Restaurants(DRI) gave up on Red Lobster too soon last year, unloading the iconic seafood chain in a $2.1 billion deal. That may sound like a lot of money, but activists argued that it was a fire sale.
Investors agreed, cleaning out Darden's board in favor of the activists with plans to shore up Darden's Olive Garden and other remaining concepts a couple of months later.
The market will always wonder if Darden threw in the towel before giving Red Lobster a few shots at turning things around, and with the economy showing signs of life, it's easy to see why more than a few investors feel that way. However, maybe they'll change their tune after considering the sad saga of Romano's Macaroni Grill.
And Called It Macaroni
Shares of Ignite Restaurants (IRG) plunged 17 percent last week after the parent company behind Joe's Crab Shack and Brick House Tavern + Tap posted disappointing quarterly results. However, the real jaw-dropping moment for Ignite came earlier in the week when it announced that it would be selling the 153-unit Romano's Macaroni Grill for a mere $8 million. That breaks down to a little more than $50,000 per location, but the real travesty is how much the casual Italian chain has deteriorated as it gets handed down.
Chili's Grill & Bar parent Brinker International (EAT) watched over Macaroni Grill for years, but it decided to diversify so it could focus on its higher-volume Italian concept, Maggiano's Little Italy. It found a willing buyer in Golden Gate Capital, the same company that would eventually go on to acquire Red Lobster.
Golden Gate was originally going to pay $131.5 million for an 80 percent stake that valued Macaroni Grill at a cool $164 million. This was during the summer of 2008 just as the global financial crisis was at its worst. Golden Gate was able to take advantage of the economic storm, talking down the price of the transaction to the point where it valued the chain at just $110 million.
It seemed like a shrewd buy at the time, but by 2013 it was willing to sell Macaroni Grill to Ignite for just $55 million. That was half the price that it had originally paid for the restaurant. Now we're seeing Ignite handing it off to Redrock Partners for just $8 million.
It was a humbling two years for Ignite. There were 210 Macaroni Grill units open at the time of its $55 million purchase, but the push to close down underperforming locations took its toll. The count was down to 179 restaurants by the end of 2013, sliding to just 153 when this year began.
Rock Lobster
Ignite was never able to turn Macaroni Grill around. Comparable-restaurant sales tumbled 6.5 percent in 2013, falling another 4.5 percent in 2014. Put another way, the average restaurant was making 11 percent less in sales than it was two years earlier when Ignite took the wheel.
Red Lobster also suffered a nasty streak of comparable-restaurant sales declines before Red Lobster found a willing buyer last summer. A turnaround is always possible. The improving economy should be beneficial to most operators. However, it also wouldn't be a surprise if, just like Macaroni Grill, we see Red Lobster being handed down at lower and lower price points. Darden did the right thing. Now it just needs to make sure that it can focus on getting things right at Olive Garden.
Tobias Schwarz/AFP/Getty Images
There were plenty of winners and losers this week, with Windows ready to hit the market this summer in 111 languages and a food giant having a recall nightmare.
The world's largest software company announced that Windows 10 will be available in 190 countries this summer. Microsoft knows that Windows has been sputtering in a world that's becoming operating-system agnostic, and it's going to take an aggressive stance.
It had announced back in January that it would make Windows 10 a free upgrade for the first year to folks running Windows 7 or 8, but now it's raising the stakes by offering some folks in emerging markets who are running pirated earlier Windows versions a free pass to upgrade.
Microsoft is also making Windows free for small Internet of Things devices. It's the first time that Microsoft has done this, realizing that it needs to reestablish itself in preparation for a future where portable gadgetry, appliances and fixtures can and should communicate with one another.
Some recalls are bigger than others. Kraft Foods issued a voluntary recall of 242,000 cases -- containing roughly 6.5 million boxes -- of its iconic Macaroni & Cheese. There are concerns that some packages may contain small metal pieces.
Yes, that's right, the Kraft staple that's largely seen as something that parents buy for their kids could have slivers of metal in it.
Any recall is naturally going to sting a company in the near term, but this one might linger. How many boxes sitting in cupboards will be discarded, even outside of the recall lots? What do you think are the chances that they will be replaced by new boxes of Kraft Original Macaroni & Cheese? Parents will turn to other brands, weaning their kids off of one of Kraft's biggest sellers.
The "cheap chic" retailer became the latest chain to bump its minimum wage higher. Employees will now make at least $9 an hour as Target follows the lead of a couple of discounters that have raised the bar above the federal starting line of $7.25 an hour.
Target has bounced back since stumbling during the 2013 holiday shopping season with a hacker scandal breaking at the worst possible time for a seasonally potent retailer. Comparable-store sales rose nearly 4 percent in the 2014 holiday quarter, giving Target the freedom to bump up the pay of its lowest-paid hires to levels that are competitive with its rivals.
There were a lot of positive developments at the leading premium coffeehouse chain this week. It announced plans to test a delivery service. It declared a 2-for-1 stock split. It aimed to tackle the country's racial issues, revealing that it will be encouraging baristas to write "Race Together" on coffee cups ordered and discuss the topic with patrons if they want to engage in a conversation.
That final point, while noble, has also invited a fair amount of criticism from various camps. Some customers fear that baristas taking time out to engage patrons will slow the chain's service. The more critical knock has come from those wondering if baristas shouldn't be paid more if they are expected to kick up their "emotional labor" efforts. Starbucks has its heart in the right place, but there could be feathers ruffled if some baristas go rogue with polarizing perspectives.
The coolest name in electric cars is closing in on the self-driving future. Tesla announced that a software update will help nip "range anxiety" in the bud by providing more accurate battery life measurements and directing customers to travel routes that are within range of its growing fleet of battery charging stations.
Future software updates, coming in as little as a few months, could pave the way for cars that drive themselves on open highways by introducing features such as autosteering under certain circumstances. There's more work to go before self-driving is viable on traditional open roads, but Tesla seems to be leading the way with its high-tech Model S sedans.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Starbucks and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool's one great stock to buy for 2015 and beyond.
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ATLANTA -- Graco has agreed to pay a $3 million fine to the government for being too slow to report complaints about difficulty opening car seat buckles.
The company also must spend $7 million on measures to improve child seat safety, including better programs to register seat owners so they can be notified of safety problems and better procedures to identify problems and speed up recalls.
The fine stems from a National Highway Traffic Safety Administration investigation into the company's behavior in the largest child seat recall in U.S. history. Graco Children's Products recalled 6.1 million car seats last year because the buckles could get stuck. That could put a child's life at risk in an emergency. The agency and the car seat maker were involved in an extended dispute over the recall.
"We accept this fine and the additional funding requested by NHTSA for a joint venture involving child passenger safety initiatives in the future.
The fine announced Friday "uses NHTSA's enforcement authority to not only hold a manufacturer accountable, but to keep our kids safe," Mark Rosekind, the agency's administrator, said in a statement.
Laurel Hurd, president of Graco Children's Products, said in a statement the company regretted that it fell short of NHTSA's expectations for data collection and reporting procedures.
"We accept this fine and the additional funding requested by NHTSA for a joint venture involving child passenger safety initiatives in the future," Hurd said.
Federal rules require a manufacturer to report a safety defect within five days of becoming aware of it.
When Graco, a subsidiary of Atlanta-based Newell Rubbermaid (NWL)), recalled 4.2 million toddler seats in February of 2014, NHTSA sent a sternly worded letter that questioned why infant car seats weren't included. It accused the company of soft-pedaling the recall with "incomplete and misleading" documents for consumers. The company gave in to regulatory pressure and recalled 1.9 million infant car seats last July.
Surprise! Consumers are confused about what goes into a credit report and a credit score. Given how opaque these things were for such a long time, it's entirely predictable that confusion reigns, and it'll be that way for a while. Credit bureau TransUnion released a survey Thursday with more proof that the mythology built up around credit reporting will take a long time to undo. Heck, apparently one in four Americans think the sun revolves around the Earth, so fixing this will take a while.
The myth that I think will be hardest to beat back is the notion that income or assets have anything to do with credit reporting. They don't, even if they should. You might have $1 million in the bank, or have just landed a huge raise, but you'll be denied a credit card if your credit score is low or you have a thin credit file.
TransUnion found that about half of American adults think a pay raise bumps up their credit score. And even people with good credit are confused about what went into that good credit. Some other findings from its online survey of about 1,000 people:
Which payments affect credit scores: Nearly half erroneously identified rent (45 percent) and cell phone (47 percent) payments as directly affecting their score; yet, these aren't regularly reported to credit bureaus. (Consumers with excellent credit were even more confused on this point, with 49 percent holding the mistaken belief that rental payments are included in their report.)
Information in credit reports: Among survey respondents who checked their credit report in the last 30 days, about half mistakenly believe their full employment history (55 percent) and income level (41 percent) are included in their reports. (They aren't.)
Pay raises: Nearly half (48 percent) of respondents who've checked their credit report in the last year incorrectly believed an increase in income improves their score. (Income is not part of the credit scoring system.)
Credit inquiries: 40 percent of respondents who've never checked their report are unsure how checking it affects their score. (In general, consumers inquiries -- or "soft pulls" -- don't impact scores.)
Trended information: 70 percent of those who've checked their report in the last year incorrectly assumed that it reflected recent changes or trends in their finances over time. (Only credit events -- not the size of your bank account -- have an impact.)
Paying down debts: 61 percent of those who checked their report in the last 30 days erroneously believed paying off debts from late payments automatically increases their score. (It does help, but the improvements take time.)
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