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Simon Property Raises Bid for Macerich to $16.8 Billion

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Simon Macerich
Brennan Linsley/APShoppers at the Flatiron Crossing mall in Broomfield, Colo., one of 51 malls nationwide owned by Macerich.
By JOSEPH PISANI

NEW YORK -- Mall operator Simon Property boosted its hostile bid for rival Macerich by 5 percent to $16.8 billion and said it will be its best and final offer.

The proposed deal would combine two of the largest U.S. shopping mall operators.

Simon set an April 1 deadline for Macerich to respond to the offer or it will be withdrawn.

Shares of Macerich (MAC) dropped more than 4 percent in afternoon trading Friday while Simon Property (SPG) shares edged higher.

It is a concerted effort by the two largest companies in the industry to acquire the number three company.

Simon said Friday that it is now offering to pay $95.50 a share for Macerich, up from its previous offer of $91 a share. The new offer is valued at $23.2 billion, when debt of about $6.4 billion is included. Simon, which has a 3.6 percent stake in Macerich, said it won't seek to nominate directors for Macerich's board.

With the new offer, Macerich shareholders may put pressure on the company to discuss the deal, said analysts at Citi in a note to clients.

In a statement Friday, Macerich said it would review the new offer.

Macerich rejected Simon's first bid, saying the deal undervalued the company. It also said it had "serious antitrust concerns" because of Simon's partnership with General Growth Properties (GGP). "It is a concerted effort by the two largest companies in the industry to acquire the number three company," Macerich said earlier this week.

Simon Property Group, an Indianapolis real estate investment trust, went hostile earlier this month in making its offer public, saying that Macerich refused to negotiate a deal.

Simon owns or has interest in more than 325 properties around the world, mainly outlets and malls. Macerich Co., based in Santa Monica, California, is a real estate investment trust that owns 51 shopping centers around the country.

Shares of Macerich fell $3.97, or 4.3 percent, to $89.53 in afternoon trading Friday. Simon shares rose $3, or 1.6 percent, to $195.10.

 

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Fixing Olive Garden Won't Be Easy

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Earns Darden
Steve Helber/AP
Shares of Olive Garden parent Darden Restaurants (DRI) hit new all-time highs on Friday after the casual-dining bellwether posted better-than-expected quarterly results, but it may be premature to celebrate the attempted turnaround at its flagship chain.

Darden Restaurants runs seven prolific concepts -- including LongHorn Steakhouse, Yard House, Bahama Breeze, Seasons 52, Capital Grille and Eddie V's -- but the biggest contributor to its performance continues to be Olive Garden. More than half of Darden's 1,528 restaurants are Olive Garden locations, and the chain continues to struggle in its pursuit of wooing hungry patrons.

Comparable-restaurant sales rose 2.2 percent at Olive Garden during the holiday quarter, but traffic counts clocked in lower during each of the fiscal period's three months. Guests may be spending more and profit margins are improving, but customers just aren't coming in like they used to.

Olive Garden 2.0

There was a shakeup at Darden late last year. Activist investors complained that Olive Garden was doing everything wrong. In a widely circulated 294-slide presentation, investment adviser Starboard Value took the chain to task for everything from not adding salt to its pasta-boiling water to giving away too many breadsticks. It even complained that Olive Garden was overfilling its salad bowls and dousing them with too much Italian dressing.

The criticism resonated with shareholders, leading investors to sweep out the old leadership regime at Darden's annual shareholder meeting in October. With the new management group in place, Friday's report covered its first full quarter in control.

Darden didn't offer any updates on how its more colorful suggestions are faring in Friday morning's conference call, but it did point to improving margins at Olive Garden since taking over. Darden simplified management layers in November, and that has helped improve labor productivity. However, another factor nudging operating margins at Olive Garden from 20.6 percent to 23 percent over the past year is that it also scaled back its marketing budget. If you've been seeing fewer Olive Garden commercials than you did a few years ago, it's part of the cost-saving process. Then again, given the way that its "When you're here, you're family" ads were lampooned, this may not be a bad thing.

Darden feels that the rollout last year of its highly customizable and value-priced Cucina Mia! menu means that it doesn't have to spend as much to promote seasonal pricing specials. Given the chain's positioning as one of the less expensive Italian casual-dining concepts, it feels that its efforts are better spent online in reaching out to young millennials.

Al Dente

Darden points out that it has now posted back-to-back quarters of positive comps at Olive Garden for the first time since 2010. However, the 2.2 percent year-over-year uptick at the chain comes after a 5.4 percent slide a year earlier, which was after a 4.1 percent drop during the holiday quarter the year before that. Work the math and it means that the typical Olive Garden location is ringing up 7.3 percent less in sales than it did three holiday quarters ago.

The 2.2 percent increase in comps this time around also needs some more clarification: The increase came entirely from folks spending more. Actual guest counts slipped in December, January and February. The new brass is cutting costs and boosting average checks, but it's not a turnaround until customers start coming back.

Darden's trying. It pointed out on Friday morning that takeout orders during the fiscal third quarter soared 22 percent since the prior year. It also recently remodeled some of its restaurants, and the 13 test locations experienced sales growth in the high single digits. These are encouraging signs, but Olive Garden is still not fixed. Darden still has a lot to prove.

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

 

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Forgot Your Password? Here Are Two New Ways to Sign On

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Password Box in Internet Browser
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By BRANDON BAILEY

SAN JOSE, Calif. -- Tired of trying to remember a different password for each of your online accounts? Or worried about re-using the same password too many times? You're not alone. Tech experts agree that traditional passwords are annoying, outmoded and too easily hacked.

This week, Yahoo (YHOO) and Microsoft (MSFT) offered up some alternatives: Yahoo says it can text temporary passwords to users' phones each time they want to sign into their Yahoo accounts. Microsoft says it is building facial-recognition and fingerprint-identification technology into Windows 10, the new computer operating system coming this summer, so users can log on with their fingertip or face. The two approaches drew different reviews.

Here's what you should know:

New Day, New Password

Convenience and security. That's what Yahoo is promising users who choose to receive a single-use password "on demand" -- sent by text message to their mobile phone each time they want to sign into their Yahoo account. Once you opt into the program, there's no more need to create or memorize a password for Yahoo's email or other services.

Not a good move, experts say.

"Yahoo just made it easier for attackers to compromise an account," said Tim Erlin, risk strategist for the cybersecurity firm Tripwire. Temporary passwords can fall into the hands of anyone who steals your phone. While most phones can be set to require a separate password to unlock the home screen, many people don't bother to do so. Phones can also be infected with malware that intercepts or copies text messages, he said.

Though it may be convenient, Erlin said, Yahoo's on-demand option is a step backward from another alternative the company offers, known as two-factor authentication. With that option, users must provide both a traditional password and a one-time code that is texted to their phones. That's considered stronger because a hacker would need both to get into a user's account.

Yahoo security chief Alex Stamos agrees that two-factor authentication is stronger. But many people don't use it, he said in an online post defending against critics. Instead, people too often recycle short passwords that are easier to type, especially on small phone screens, but also easy for hackers to guess, he said.

Since most online services let users reset passwords by sending a text or email to their phones, users are already vulnerable if they lose their device, Stamos argued.

"The truth is that passwords are so incredibly, ridiculously broken that it is almost impossible to keep users safe as long as we have any," Stamos wrote on his Twitter account. He said Yahoo is working on other solutions.

The Future

The concept of logging in by scanning your fingerprint or face used to seem like sci-fi. But the future is here.

Microsoft said this week that it is building "biometric authentication" technology into the next version of its Windows software, so that users can unlock computers or phones with their face, iris or fingerprint. The devices must have a fingerprint reader or a high-end camera with infrared sensors, which are becoming more common.

Windows 10 users may also be able to use their face or fingerprint to sign into other online accounts. Microsoft is providing related software to builders of independent apps and websites so they too can verify a user's identity through a combination of biometrics and an encrypted code automatically generated by the user's computer or phone, Microsoft Vice President Joe Belfiore wrote in a blog post.

Google already offers facial recognition as an option for unlocking Android phones, although it's not widely used. Early versions were criticized as unreliable, but the technology has improved, said Anil Jain, a biometrics expert at Michigan State University. Apple (AAPL) and Samsung (SSNLF) offer fingerprint identification to unlock some phones; Apple also uses it to authorize purchases through Apple Pay.

It's too early to know if Microsoft's system will be effective or gain wide acceptance, Jain cautioned. But alternatives to passwords are definitely needed, said fraud expert Al Pascual, who studies the banking and payments industry at Javelin Strategy & Research.

Too many people use the same password for multiple accounts, and they are routinely stolen by hackers.

"The password today," he said, "is more of a liability than any kind of security measure."

 

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Market Wrap: Wall Street Rises, Snaps 3-Week Losing Streak

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Financial Markets Wall Street
Richard Drew/AP
By Caroline Valetkevitch

U.S. stocks rose Friday, pushing the Nasdaq to a 15-year high and helping the S&P 500 snap a three-week string of losses, following a pullback in the dollar, upbeat results from Nike and further biotech gains.

Recent sharp gains in the U.S. dollar have increased worries about the currency's impact on the earnings of U.S. multinationals. S&P 500 earnings projections for the first quarter and for 2015 have fallen sharply since Jan. 1.

Among early reporters, Nike (NKE) jumped 3.7 percent to $101.98 as the biggest boost to the Dow after it posted a quarterly profit that beat market estimates. The world's largest sportswear maker sold more higher-margin shoes and apparel but warned that the stronger dollar would take a toll on its current quarter.

The Nasdaq biotech index rose for an eighth straight session, gaining 7.4 percent since March 10. It climbed 0.5 percent Friday, powered by a 9.8 percent climb in Biogen Idec (BIIB) to $475.98. volume was high. About 9.2 billion shares changed hands on U.S. exchanges, compared with the 6.6 billion average for the month to date, according to data from BATS Global Markets.

The Federal Reserve's created a situation where there's very little alternative to equities, so the path of least resistance for stocks will be up for a period of time.

The company said its experimental drug became the first Alzheimer's treatment to significantly slow cognitive decline and reduce brain plaque in patients with early and mild forms of the disease, according to a small study.

The Nasdaq ended just 22 points from its record closing high, while the S&P 500 ended less than 10 points below its record close.

Largely behind this week's gains was a statement from the Federal Reserve on Wednesday that signaled a less aggressive approach to raising interest rates than investors had expected.

"The Federal Reserve's created a situation where there's very little alternative to equities, so the path of least resistance for stocks will be up for a period of time," said Robert Lutts, president, chief investment officer at Cabot Money Management in Salem, Massachusetts.

The Dow Jones industrial average (^DJI) rose 168.62 points, or 0.94 percent, to 18,127.65, and the Standard & Poor's 500 index (^GSPC) gained 18.79 points, or 0.9 percent, to 2,108.06. The Nasdaq composite (^IXIC) added 34.04 points, or 0.68 percent, to 5,026.42, a 15-year high.

For the week, the Dow gained 2.1 percent while the S&P 500 rose 2.7 percent, both snapping a three-week run of losses. The Nasdaq ended up 3.2 percent.

Wall Street's fear gauge, the CBOE Volatility Index, was down 7.5 percent.

Quadruple Witching

Stocks trimmed gains just ahead of the close, which marked the expiration of stock options, index options, index futures and single-stock futures, known as quadruple witching.

The dollar was off 1.5 percent against a basket of major currencies and registered its biggest weekly decline since 2011.

Tiffany & Co. (TIF) shares lost 4 percent to $82.93 after the upscale jeweler said quarterly sales fell for the first time in five years and are expected to decline further in the current quarter, hurt by the strong dollar.

Advancing issues outnumbered declining ones on the NYSE by 2,452 to 632, for a 3.88-to-1 ratio on the upside; on the Nasdaq, 1,661 issues rose and 1,116 fell for a 1.49-to-1 ratio favoring advancers.

The benchmark S&P 500 index posted 86 new 52-week highs and no new lows; the Nasdaq composite recorded 209 new highs and 31 new lows.

Volume was high. About 9.2 billion shares changed hands on U.S. exchanges, compared with the 6.6 billion daily average for the month to date, according to data from BATS Global Markets.

What to watch Monday:
  • The National Association of Realtors releases existing home sales for February at 10 a.m. Eastern time.

 

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To Save on Travel, Book Directly, Not With Online Agencies

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swimming pool on the beach....
OlegD/Shutterstock
By Robert McGarvey

Almost 20 years into the revolution triggered by the launch of Expedia (1996), Priceline (1997), Hotwire (2000) and many other online travel agencies, a new question is being asked: Is now the time to go back to booking direct with airlines, hotels, even car rental companies? The reason: Just maybe one-stop convenience is getting trumped by sweeter deals found when shopping directly.

That sounds so 1995, but savvy travelers are insisting the dominance of the online travel agencies is at an end. George Hobica, founder of Airfarewatchdog.com, remembers when he would walk into a Borders store a decade ago and knew it was a dinosaur because people weren't buying books -- they were flipping through pages, maybe taking notes on key passages. He says he sees the same at online travel agencies: "People are not buying from them -- they are using them for informational purposes," Hobica says. (Remember this: Borders liquidated in 2011.)

Hotels in particular are effectively bribing guests to book directly with them. Why? Bookings through an online travel agent involve a 15 percent fee for a national hotel chain and as much as 30 percent for a little independent. Book a $200 room at an independent, and it in effect has $60 a day it can toss your way to win a direct booking.

Rate Parity, Except When It's Not

A wrinkle is that the online travel agents insist on "rate parity," and that means a hotel cannot offer a cheaper rate than it gives the online travel agent -- except when it can. "Rate parity" nowadays applies only to publicly available rates you find on the Web. That means an email to loyalty club members can offer whatever rate; a clerk in a call center can, too. There are lots of ways around rate parity, and nowadays travel providers are expert at this -- which works to your benefit.

Hotels also have gotten increasingly creative when it comes to bribing guests to book direct.
  • At Hotel Amarano, for instance, in Burbank, California, it's your choice: a complimentary upgrade to the next available room type or a $25 food and beverage credit (or, word of advice, go for broke and demand both. You just may get them).
  • Book direct with the Omni Hotel chain, and you are promised free Wi-Fi as well as morning beverage delivery and a few more perks.
  • Mark Spring, a general manager at a Montana Quality Inn, says bluntly: "Absolutely the best rates are available at my property by direct bookings. If as a hotelier I am paying 18 percent to 25 percent on Booking.com or Expedia (EXPE), wouldn't it only be prudent to discount 10% directly to the guest?"
Joe Brancatelli, who blogs at JoeSentMe, insisted that hotels are doing well in this fight for direct bookings, in part because savvy travelers increasingly know that the sweetest elite perks are doled out to direct bookers.

As for airlines, they have intensified their war to win direct bookings and are doing it by making many important things easy to do on their websites. Want to select your seats now? Done. Want to buy upgraded seats? Done. Want to buy discounted entry to an airline club? Done. Want to buy Wi-Fi, often at a rate much lower than you will pay onboard? Done. And while you are at this, remember to pay with an airline-linked credit card that typically brings free baggage check, priority boarding, and -- often -- a sweetened frequent-flier reward.

Are Airlines Winning the War?

Numbers back up that airlines are winning this fight. According to researchers PhoCusWright, 37 percent of airline seats were bought at online travel agents in in 2011. Two years later, that number was 32 percent. Experts say they expect further declines.

Car rentals are the odd man out better booked via an online travel agent, says Mark Mannell, CEO of CarRentalSavers.com. "Numerous discounts and coupons are available that are not on the rental agency sites," he says, noting that larger online travel agents discounts or coupons. Mannell also recommended that members of large organizations with aggressive discount programs, such as AARP and AAA, look there for car rental deals.

Bottom line: it's time to rethink old travel habits and, at least as far as airlines and hotels go, return to even older habits. Book directly online or, with hotels at least, pick up the phone and call. You probably will save money and you almost certainly will get some deal-sweetening goodies.

 

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10 Ways to Save When You're Making Minimum Wage

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The Best Jobs That Don't Require a College Degree

By Maryalene LaPonsie

Not long ago, Money Talks News posted an article about how to save $1,000 by summer. It was packed with good ideas, but as one commenter mentioned, the list seemed mostly geared toward those making middle-class incomes.

What about those of you squeaking by on minimum wage? Is there any hope for you to get money into savings? After all, working full time on the federal minimum wage brings in a whopping $15,080 a year before any taxes. You only wish you had money for a monthly latte, let alone a daily one. And a gym membership? Please.

So let's assume you've already got your budget down to bare bones: You're reading this article on the library computer because there is no Internet at home, cable has been cut, and you have the thermostat set to slightly above freezing. What else can you do?

1. Get Out of Debt

If you're only making minimum wage, you can't afford to be sending money to a car financing company, Visa, MasterCard or Discover.

Think about it this way: If you had no house payment, no car payment and no credit card payment, what's left? The only bills you may need to pay would be utilities, taxes, insurance, gasoline for your car and food for yourself. In many areas of the country, you could do that on $15,000 a year.

Now, housing is a major problem, I know. On your income, it might be easier to sprout wings and fly to Paris than own a home without a mortgage. We'll talk a little more about affordable housing options in a minute, but for everything else in your life, make living debt-free a priority.

2. Hoard Gifts of Money, Tax Refunds and Other Windfalls

To get out of debt and build up your savings, you need to make smart use of all those times you run into a little extra cash.

If you make minimum wage and have children, chances are you're entitled to the Earned Income Tax Credit. That could mean you get thousands of dollars from Uncle Sam each year. What are you going to do with it? You might be eyeing the ripped couch in the living room and thinking it would be nice to have it replaced. Or maybe you'd like to buy the kids new bikes or even take a trip somewhere.

Until you get on firm financial ground, resist the urge to spend those windfalls. Put a couple hundred in the bank as an emergency fund and ship the rest off to your creditors. If you're debt-free (hooray!), bank at least half of it before you think about spending a cent. Do the same with other unexpected money, whether it's the $5 you find in the parking lot or the $50 your aunt puts in your birthday card.

3. Save Your Pennies

Literally. Start a change jar and put your coins into it every night. At the end of the month, roll up the coins and put them in a savings account. You won't retire rich off the money you collect, but you could end up with $10 or $20 a month to pad your savings account. That's not much, but when you're making $7.25 an hour, every little bit helps.

4. Skip Processed Food

Although I have never lived on minimum wage, I know all too well the feeling of barely scraping by. When you're living that close to the edge, I realize sometimes you want to be able to open a box and cook dinner or swing through the drive-thru for the dollar menu. After all, life is hard; can't one thing be easy?

It may be tempting, but you'll feel better and save money on health care costs in the long run if you say goodbye to the canned, boxed and frozen meals. If you need some menu inspiration, check out budget cookbooks from your local library. "Family Feasts for $75 a Week" and "The $5 Dinner Mom Cookbook" are two you may find worth reading.

5. Park the Car

After housing, your car is probably your biggest money pit. You need to pay for insurance, registration and gas, plus you might even have a monthly payment on it. You'll free up tons of money in your budget if you can get rid of your car -- or at least drive it less often. Depending on where you live and your personal situation, you may be able to do one of the following:
  • Sell the car and use public transportation exclusively.
  • If you're a two-car family, sell one vehicle. If both adults in the house work, see if you can get opposite shifts or find jobs close to one another so you can drive together.
  • If you have years left on a vehicle loan, sell the car and buy a cheaper one. If you owe more than it's worth, consider using your tax refund to pay down the balance so you can unload the car and its payment.
  • Carpool with a co-worker or friend and split the car costs.
  • Combine errands and appointments to minimize gas and parking costs.
6. Rethink Child Care

Child care is crazy expensive. If you have two income earners in your house, and you are both making minimum wage, you might come out ahead if one adult stays home with the kids. Not only will that eliminate day care, you'll also save on gas and other work-related expenses. If that's not possible, read this article about other ways to lower child care costs.

7. Sell What You Can

Get serious about saving by scrutinizing everything you own. You could have a yard sale to sell old clothes, trinkets and kitchen gadgets, but think bigger. Sell the furniture you don't need. Sell your movie collection. Sell the TV. I'm serious! The kids will find something else to do.

Having to sell your stuff may seem rotten, but if you put that money into savings, it can be incredibly freeing. It's a great feeling to know that if the car dies on the road, you have money in the bank and won't need to frantically call friends to help pay for a tow.

8. Find a Roommate

Let's go back to the housing problem we mentioned earlier. Let's face it: Finding affordable housing can be a nightmare. Subsidized housing is available, but wait lists are long and the properties aren't always in ideal locations.

If you can't find a place with cheap rent, the next best thing may be to get a roommate. Another option might be to rent out a room if you are in a house. Either way, you get a break on your monthly payment as well as on the utilities. You can find potential roommates on websites like Roommates.com and EasyRoommate.com. Sites like Craigslist or your local paper may be good places to place ads if you have a room to rent.

Regardless of how you find a roommate or renter, be sure to double-check their references. A background check, obtained through your local police department, may cost a few dollars but can be worth the peace of mind. Make sure you're not letting anyone potentially dangerous in your home, especially if you have children.

9. Move Somewhere Cheaper

Maybe despite your best efforts, you simply can't find an inexpensive place to live. In that case, it may be time to do something radical. You may want to move to a new city or a state with a lower cost of living. That isn't permission to simply pack up and go without a place to stay or a plan for what to do when you get there. Instead, do your research first and line up a job in advance.

10. Make More Money

Finally, if none of these suggestions sound like much fun, it's because it's really hard to get by on very little income. You know that.

To make more money, you could work harder or you could work smarter. Choose the second option. Rather than spending your life working two or even three jobs to get by, get the right education and training for a career that will let you live comfortably.

Look into jobs that require only a two-year associate degree. According to the Bureau of Labor Statistics, these are some of the fastest growing jobs in the country. The incomes listed are the median wages earned by workers in these occupations in 2012.
  • Dental hygienists: $70,210.
  • Diagnostic medical sonographers: $65,860.
  • Web developers: $62,500.
  • Occupational therapy assistants: $53,240.
  • Physical therapy assistants: $52,160.
Wouldn't it be nice to be making $50,000 or $60,000 two years from now? It's not a pipe dream. You can do this. Talk to your local community college to find out which careers are in demand in your area. Their financial aid office should also be able to help you learn about programs that can pay for your tuition and eliminate the need to take out student loans.

Let us know what you think about these suggestions in the comments below or on our Facebook page. 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.

 

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Don't Get April-Fooled by This Very Costly IRS Tax Trap

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Investment portfolio eggs
Geri Lavrov/Getty Images
April is the month that Americans most associate with taxes, with millions of taxpayers waiting until the last possible moment before the April 15 filing deadline to get their returns in. Yet a select group of older Americans face a key deadline two full weeks before Tax Day, and if they fail to make a critical move with their retirement accounts by April 1, the Internal Revenue Service could step in with one of the harshest penalties you'll find in the tax laws.

Fortunately, it's not hard to avoid this IRS tax trap. Later on, we'll show you what you need to do to steer clear of this potential pitfall, but first, let's take a look at why the government puts such a high price tag on complying with this key retirement rule.

When You Have to Start Spending Down Your Retirement Savings

Most people start tapping their savings after they retire, as they look for ways to cover living expenses without the benefit of a regular paycheck. For those who took advantage of tax-favored retirement accounts like IRAs and 401(k) plans to help them save for retirement, the opportunity to take penalty-free withdrawals opens up at age 59½, allowing even early retirees to make ends meet.

Some people, though, prefer to leave their retirement accounts untouched, in part because withdrawals from traditional IRAs and 401(k)s are added to taxable income. To prevent people from choosing never to take money out of retirement accounts, though, the IRS enforces required minimum distribution rules that force you to take withdrawals after you reach age 70½. Specifically, if you're one of the roughly 2 million Americans who turned 70½ at some point during 2014, you have until April 1 to take out a set minimum amount from your retirement accounts. If you don't, then the IRS will impose a penalty equal to 50 percent of whatever you should have withdrawn.

You'd think that the threat of a big IRS penalty would spur people into action. But according to Fidelity Investments, as of Dec. 26, 2014, almost three out of every five accountholders who turned 70½ during the year hadn't yet taken the correct amount, and a quarter of accountholders hadn't yet taken any withdrawal at all.

How Much Do You Have to Withdraw?

Where things get complicated is in figuring out your required minimum distribution. The IRS uses life-expectancy tables to calculate the fraction of your retirement-account balances you need to withdraw each year, with the amount generally increasing the older you get.

Confusingly, while the tax laws hinge on age 70½, the life-expectancy tables work in whole years. If you turned 70½ and hadn't reached your 71st birthday by the end of 2014, then your life expectancy is 27.4 years, and so you'll have to withdraw a percentage equal to 100 percent divided by 27.4, or 3.65 percent. If you turned 70½ early in the year and were 71 by year-end, then the corresponding figures are 26.5 years and 3.77 percent.

Once you have the correct percentage, you then multiply it by the total amount you had in your retirement accounts coming into 2014. For these purposes, you'll take the balance as of the last day of 2013. So if your IRA and 401(k) balances added up to $100,000, you'd have to withdraw $3,650 or $3,770, depending on whether or not you'd reached your 71st birthday by the end of the year.

In subsequent years, you'll need to take your required minimum distributions even earlier. The April 1 deadline moves up to Dec. 31 every year except the first one in which you're required to take RMDs.

April Fool's jokes are supposed to be funny, but a 50 percent IRS penalty is nothing to laugh about. If you were born between July 1943 and June 1944, be sure you check to make sure you've made the right withdrawal from your retirement accounts.

Motley Fool contributor Dan Caplinger isn't close to needing to take required minimum distributions, but he does hope to retire someday. You can follow him on Twitter @DanCaplinger or on Google Plus. Check out our free report on one great stock to buy for 2015 and beyond.

 

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Girl Scout Cookies: Thin Mints Shortage, Other Surprises

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Girl Scout Cookie Sales
David Kamerman/The Boston Globe via Getty Images
Spring has finally sprung, and you know what that means: It's time to buy Girl Scout cookies. Thin Mints and Samoas, Tagalongs and Do-si-dos -- every American has a favorite cookie, and most of us know what we we're going to order long before the girls show up on our doorsteps (or stake out the lobby at the grocery store -- brilliant!). But do you know what you need to know about the cookies themselves?

Did you know, for instance, that despite their reputation as a product prepared by small, privately owned bake shops around the country -- companies with homespun names like "Little Brownie Bakers" and "ABC Bakers" -- Girl Scout cookies are actually owned by "Big Cookie"?

A Mirror for America

That's right. It's not just in the supermarkets that the food-industrial complex has taken over American life. Even in the nostalgic world of little girls in green jackets hawking cookies door to door, mergers and acquisitions have consolidated what once was a largely mom-and-pop industry into just a couple of gigantic players.

Since their "invention" in 1917, Girl Scout cookies have mirrored trends found elsewhere in American industry. Beginning in the kitchens of Girl Scout parents, moving then to local, licensed bakery operations, and ultimately involving 29 commercial bakeries scattered across the land, the number of bakers baking Girl Scout Cookies has since reversed course, declining steadily over the last few decades.

By 1978, the Girl Scouts had whittled down the number of bakers licensed to prepare their cookies to just four. By the early 1990s, they'd cut that in half. Today, just two bakers (the aforementioned Little Brownie Bakers and ABC) handle all Girl Scout Cookie business in the nation.

Don't Judge a Cookie by Its Carton

What's more, despite their quaint names, these two shops are anything but small businesses. Turns out, both ABC and Little Brownie are owned by much larger, publicly traded conglomerates -- arms of "Big Food" in America.

ABC Bakers, which bills itself as "the oldest and most experienced licensed Girl Scout Cookie baker" and boasts a history of baking Girl Scout cookies as far back as 1937, is owned by Richmond, Virginia-based Interbake Foods LLC -- a $90 million annual business according to Dun & Bradstreet Hoovers. According to S&P Capital IQ, further up the corporate chain, Interbake is in turn owned by Canada's George Weston Limited (WN), a $35 billion enterprise, and one of Canada's biggest bakery companies, in addition to being owner of Canada's largest retailer (Loblaw Companies Limited).

Little Brownie's owner, meanwhile -- despite the name -- is anything but little. It's owned by Kellogg (K), by way of the latter's Keebler subsidiary. At more than $14 billion in annual revenue, Kellogg is one of America's biggest packaged-food companies.

Read the Ingredients

Now, this is not necessarily a bad thing. The Girl Scouts explain that concentrating their baking at just two big businesses helps to "ensure lower prices and uniform quality, packaging and distribution." And the Girl Scouts note that the bakers still forward them revenue equal to "approximately 65-75 percent of the local retail price," and that a portion of this is in turn "shared with participating Girl Scout troops and groups."

So no matter who does the actual baking, the Girl Scouts are basically still working on a "one for you, three for me" system when it comes to divvying up the profits -- and the bakers have to pay for ingredients out of their own pockets. (Those little girls are some very sharp negotiators.)

The decision to tie up with "Big Cookie" does have downsides, however. For example, there was a big brouhaha last month over reports that the Little Brownie Bakers factory in Louisville, Kentucky, was requiring workers to work weekends and overtime to keep up with demand -- forcing workers to come in on Thanksgiving Day, Christmas Eve and New Year's Day -- and threatening employees with firing if they fail to comply. Those are the kinds of labor practices more often associated with big industry -- which Girl Scout Cookies have in fact become -- than with mom-and-pop bakery shops. Meanwhile, despite all the overtime, tight production capacity has resulted in a Thin Mint shortage on the East Coast, with the potential for shortfalls in supply of the new gluten-free Toffee-tastic cookie and Rah-Rah Raisin" as well.

In fact, if there's anything that will convince the Girl Scouts to return to its roots and let more small businesses get involved in the business of baking Girl Scout Cookies -- that might be it. Labor disputes come and go, but one thing Americans just won't stand for is an interruption in their supply of Girl Scout Cookies.

Motley Fool contributor Rich Smith is partial to Thin Mints. Fortunately, he has an "in" with the Girl Scouts, in the form of two budding saleswomen. He has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. Check out our free report on one great stock to buy for 2015 and beyond.

 

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Tax Refund Advances Appeal to More Cash-Strapped Filers

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Should You Wait For Your Tax Refund?

By HOPE YEN

WASHINGTON -- Cash-strapped Americans anxious for tax refunds are increasingly turning to payment advances, prepaid cards or other costly services when getting tax preparation help, according to new federal data raising concerns among regulators about whether consumers are fully informed about the fees.

Regulators are looking to increase oversight of preparers amid the rise in "refund anticipation checks," a type of cash advance especially popular among low-income families who receive the Earned Income Tax Credit, the government's $65 billion cash benefit program. The advances are being marketed as a way to get fast refunds or defer payment of tax preparation costs.

The Consumer Financial Protection Bureau says some consumers have complaints about refund anticipation checks centered on advertising, quality of service or fees.

The bureau is finalizing the first rules on prepaid debit cards, including those for tax refunds, that would require "easy to understand" disclosures upfront about costs and risks.

Refund anticipation checks rose to roughly 21.6 million in 2014, up 17 percent from 2011, according to IRS data provided to The Associated Press. About half the purchasers are EITC recipients; roughly 84 percent are low-income, according to the data. Industry analysts project the payment advances and their fees will become more widespread as tax preparers seek to boost revenue.

Currently, refund anticipation checks and prepaid cards make up 10 percent of industry giant H&R Block's (HRB) revenue and more than 20 percent of Liberty Tax Service's (TAX), according to earnings reports.

Both companies said they are committed to providing consumers with the information they need to make tax-filing decisions, including use of refund anticipation checks. They said the payment advances offer added value, such as convenience.

'Wild, Wild West'

The Internal Revenue Service has been pushing Congress for new authority to regulate the $10.1 billion tax preparation industry after an appeals court last year barred it from requiring tax preparers to undergo background checks and testing.

"It's the wild, wild West," said Nina Olson, the IRS' national taxpayer advocate, describing the current state of the industry. She called the level of risk for abuse in pricing and quality of service unprecedented.

The National Association of Tax Professionals supports certification of providers to ensure a minimum level of competency. But the Institute for Justice, which filed the lawsuit against IRS, says new licensing requirements and other oversight aren't the answer.

"We should do more to increase competition, not drive independent tax preparers out of the market," said Dan Alban, an attorney for the group.

The average tax-preparation fee for 2014 returns is $273, up 11 percent from two years ago, according to a survey by the National Society of Accountants. But there's wide variation, with fees of $400 or more, according to the National Consumer Law Center.

Netran Washington, 40, a materials handler in Cleveland, says he's been going to a neighborhood tax preparer for four years, eager for a fast refund. Washington readily agreed when asked if he preferred to pay for the tax preparation later.

'Very Upsetting'

Washington says he was later surprised by a $500 fee that included the cost of a cash advance.

Still, he kept going each year until a friend suggested the Volunteer Income Tax Assistance program, an IRS program providing free tax preparation services to low-income families. The IRS-certified tax preparer found a filing error that had cost Washington $1,000 in unused tax credits and helped him file an amended return. "It was very upsetting," Washington said.

Four states -- California, Maryland, New York and Oregon -- require preparers to undergo training. The California attorney general's office recently requested information from H&R Block about its refund anticipation checks, which range in cost from $34.95 to $59.95; at issue may be whether the fees may be subject to strict truth-in-lending laws, the company said in financial filings. H&R Block emphasized that it was a request for information, not a lawsuit.

Consumer groups in Colorado and Ohio are pushing proposals to require greater disclosure.

In Ohio, a federal court two years ago barred the owner of Dayton-based Instant Tax Service from doing business after finding various abuses, including defrauding mostly low-income customers. "Taxpayers should have the ability to research and compare prices," says David Rothstein of Neighborhood Housing Services of Greater Cleveland.

In his budget proposal, President Barack Obama asked Congress to give IRS and the Treasury Department explicit regulatory authority and to increase penalties for certain tax filing errors due to willful or reckless conduct. Legislation has been introduced in the Senate, but prospects remain uncertain in a GOP-controlled Congress unhappy with the agency's investigations of the tea party and also its role in implementing Obama's health care law.

-Associated Press writer Stephen Ohlemacher contributed to this report.

 

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Why You Need Renter's Insurance -- Savings Experiment

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Why You Need Renter's Insurance
Just because you rent your home, doesn't mean you're protected by your landlord's insurance. A landlord's insurance policy will usually only cover the building itself, not your items inside it. That's why you should invest in renter's insurance.

Accidents like fires and floods not only can damage your stuff, but also the property of other people in your building. With renter's insurance you'll be protected from having to cover unexpected costs down the line. At around $12 a month, it's a pretty good investment in case of an emergency.

And if you're looking for a way to save on coverage, a lot of providers offer discounts if you let them know that your installing stuff like smoke-detectors, burglar-alarms and even sprinkler systems.

So remember, spending a little money on renter's insurance now could save you from having to pay a lot on unexpected costs later.

View Poll

 

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Wilson Sporting Goods to Buy Louisville Slugger Bats

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Louisville Slugger Evolution
Brett Barrouquere/AP
By BRUCE SCHREINER

Over a century of family ownership of Louisville Slugger bats is going ... going ... nearly gone.

The company that makes the iconic bats gripped by generations of ballplayers -- from Babe Ruth to David Wright -- announced a deal Monday to sell its Louisville Slugger brand to rival Wilson Sporting Goods Co. for $70 million.

For 131 years, the family behind Hillerich & Bradsby Co. has supplied bats for games from the sandlots to the big leagues.

It's always been the family's desire to keep the brand independent and family owned. But we've seen things change and we had to make a very tough decision.

H&B CEO John A. Hillerich IV said keeping the bat business in family hands had been a dinnertime topic for years. But as the competition's lineup grew in recent years, the family became willing to listen to offers to acquire the brand.

"It's always been the family's desire to keep the brand independent and family owned," Hillerich told reporters. "It's worked extremely well for 131 years.

"But we've seen things change and we had to make a very tough decision. We'd rather the brand go on and have somebody else own it than potentially put it in jeopardy by keeping it in the family."

Hillerich is the great-grandson of John A. "Bud" Hillerich, who churned out the first Louisville Slugger bat in 1884 for a renowned baseball player in his day, Pete Browning.

Under terms of the agreement, H&B will continue to manufacture Louisville Slugger wood bats at its factory in downtown Louisville, Kentucky.

"The guys down on the floor today are going to be the guys making the bats tomorrow and a year from now and a decade from now," Hillerich said.

But sale of the brand will cost 52 H&B workers their jobs, out of a total workforce numbering about 270, Hillerich said. The remaining employees will work either for H&B or Wilson.

Louisville Slugger will remain an independent brand once the deal is completed, said Mike Dowse, president of Wilson Sporting Goods. That means the Louisville Slugger bats will still carry the brand's recognizable oval logo.

Wilson's deal to acquire the global brand, sales and innovation rights of Louisville Slugger still requires approval by H&B shareholders.

Wilson Sporting Goods is a division of Finnish sports equipment maker Amer Sports Corp. The Helsinki-based company said it expects the deal to be completed in the second quarter.

Bats of All Kinds

The sale includes the brand's aluminum and composite bats, as well as Louisville Slugger lines of fielding and batting gloves, protective gear and equipment bags.

About half of all current major league players swing Louisville Slugger bats, according to H&B. The company said it has churned out more than 100 million bats in its history, including aluminum and composite bats.

Louisville Slugger's wood bats are formed mostly out of northern white ash or maple, but a small percentage is made out of birch. The timber comes from forests in New York and Pennsylvania.

H&B will maintain ownership and continue to operate the Louisville Slugger Museum & Factory and Gift Shop, a popular tourist destination.

H&B's Bionic Gloves division and Powerbilt golf brand are not part of the deal, it said.

Dowse said expanding Wilson's baseball and softball business globally is a key part of its business strategy.

Wilson sees strong growth potential for Louisville Slugger, he said. He noted sales for DeMarini bats have quadrupled since Wilson acquired the brand about 15 years ago.

"We see that same strategy and formula working extremely well for us at the Louisville brand," he said.

Wilson currently manufactures and sells gloves, bats, uniforms, apparel, protective gear, accessories and player development equipment and training tools through its Wilson, DeMarini and ATEC brands. Like its DeMarini brand, Wilson will market and sell Louisville Slugger as a stand-alone brand.

-AP writer Matti Huuhtanen contributed to this report from Helsinki.

 

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Market Wrap: Wall Street Slips After Rally as Dollar Swings

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Financial Markets Wall Street
Richard Drew/AP
By Chuck Mikolajczak

NEW YORK -- U.S. stocks edged lower Monday on the heels of strong gains in the prior week, as investors weighed fluctuations in the dollar and its impact on other markets, including crude prices.

Equity markets fluctuated between modest gains and slight losses, tracking the movement of energy stocks as crude oil prices were caught between the weakness in the U.S. dollar and concerns about oversupply. The S&P 500 energy sector was up 0.2 percent after earlier gaining as much as 0.9 percent.

The action in the dollar has closely affected stocks of late as traders anticipate monetary policy tightening by the Federal Reserve sometime later this year. The 20-day correlation between the dollar index and the S&P 500 sits at -0.79. The dollar index was down 0.9 percent on the day.

People are prepared for the strength of the dollar to hurt earnings, but by how much they don't know yet.

"People are now way too focused on earnings, which start in a week or two, and what the impact of the stronger dollar will be and until that happens it is going to hold the market in check," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.

While the dollar's rise has been beneficial for consumers, its rapid strengthening has been a problem for a large portion of the market, such as commodities firms and exporters.

"People are prepared for the strength of the dollar to hurt earnings, but by how much they don't know yet," said Polcari.

The Dow Jones industrial average (^DJI) fell 11.61 points, or 0.06 percent, to 18,116.04, the Standard & Poor's 500 index (^GSPC) lost 3.68 points, or 0.17 percent, to 2,104.42 and the Nasdaq composite (^IXIC) dropped 15.44 points, or 0.31 percent, to 5,010.97.

The Nasdaq snapped a five-session winning streak but remains less than 1 percent from a closing record set on March 10, 2000.

Oil Bubbles Up

In a choppy session, Brent settled up 1.1 percent at $55.92 a barrel, while U.S. crude settled up 1.9 percent at $47.45. The decline in the dollar outweighed oversupply concerns after top exporter Saudi Arabia said it would only mull cutting output if producers outside OPEC do so as well.

Kansas City Southern (KSU) shares dropped 8 percent to $106.48 as the worst performer on the S&P 500 after the railroad cut its full year revenue forecast.

The Nasdaq Biotech index fell for the first time in nine sessions, down 2.2 percent, after running up nearly 20 percent from its February low.

Volume was light, with about 5.42 billion shares traded on U.S. exchanges, below the 6.86 billion average so far this month, according to BATS Global Markets.

Advancing issues outnumbered declining ones on the NYSE by 1,764 to 1,266, for a 1.39-to-1 ratio; on the Nasdaq, 1,472 issues rose and 1,287 fell for a 1.14-to-1 ratio favoring advancers.

The S&P 500 posted 62 new 52-week highs and 1 new low; the Nasdaq composite recorded 153 new highs and 34 new lows.

What to watch Tuesday:
  • The Labor Department releases the Consumer Price Index for February at 8:30 a.m. Eastern time.
  • The Treasury Department releases foreign holdings of U.S. debt for January at 9 a.m.
  • The Commerce Department releases new home sales for February at 10 a.m.
Earnings Season

These selected companies are scheduled to release quarterly financial results:
  • G-III Apparel (GIII)
  • McCormick & Co. (MKC)
  • Sonic (SONC)

 

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Male Nurses Scarce but Make More Money Than Women RNs

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male nurse with a stethoscope...
Shutterstock
By Lindsey Tanner

CHICAGO -- Even in an occupation that women overwhelmingly dominate, they still earn less than men, a study of nurses found.

The gender gap for registered nurses' salaries amounts to a little over $5,000 yearly on average and it hasn't budged in more than 20 years. That pay gap may not sound big -- it's smaller than in many other professions -- but over a long career, it adds up to more than $150,000, said study author Ulrike Muench, a professor and researcher at the University of California, San Francisco.

"We were somewhat surprised to see that this gap was so persistent over the years, given the female-dominated profession where you would think women may have caught up with men" or surpassed them, Muench said.

Five key points about nursing and the new study, published in Tuesday's Journal of the American Medical Association:

> Find a job in medicine
> Find a job in healthcare
> Find a job in therapy
> Find a job in nursing
> Find a job in pharmaceuticals

Women Outearned

The average 2013 salary for male nurses was about $70,000, versus about $60,000 for women. Taking into account factors that influence salary including geographic location, nursing specialty and years of experience trimmed that $10,000 pay gap by about half. The gap was smaller in hospitals than in outpatient centers but it existed in all nursing specialties except orthopedics.

The biggest pay gap by position - about $17,300 - was for nurse anesthetists; the smallest - nearly $4,000 - was for middle-management nurses.

While average annual nursing salary for both genders has increased since 1988, the first year studied, the pay gap has remained unchanged.

Men Outnumbered

Among the more than 2 million registered nurses nationwide, about 10 percent are men, according to 2013 data, the most recent year studied. Census data show the gender gap in nursing has narrowed a little since 1970, when only about 3 percent of nurses were men.

More men are getting nursing degrees than in previous decades, so the gender gap is likely to continue to shrink, said Peter McMenamin, health economist for the American Nurses Association, an advocacy group. He wasn't involved in the study.

Study Methods

The researchers analyzed 1990-2008 salary trends from a discontinued government survey of registered nurses, and from U.S. Census community surveys in 2001-13. Nearly 300,000 registered nurses were involved in both data sets.

The Reasons

The study didn't examine why the pay gap exists, but Muench listed several possible reasons:
  • Some women nurses may leave the work force to have children, returning to a lower pay scale than male peers who continued working during those absences.
  • Male nurses may be better at negotiating pay raises, as has been suggested in research on gender pay gaps in other professions.
  • Gender discrimination.
Muench said studies are needed to determine whether any of these explains the gap.

The Quote

"Are we surprised? No. Are we dismayed? Yes," McMenamin said. "Any pay differentials should reflect differences in experience and skill and not simply differences in gender."

 

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How to Pick the Best Medigap Policy for You

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Mid adult doctor checks breathing of senior patient
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By Maryalene LaPonsie

More than 10,000 people enroll in Medicare each day, according to the National Council on Aging. If you are getting ready to join these ranks, you may find yourself in the market for a plan to pay costs not covered by original Medicare. Here are five steps to help you find the right plan for your needs.

1. Decide If You Want Medigap or Medicare Advantage

First, know that Medicare alone will not cover all your health care costs. "Original Medicare pays about 80 percent," says Jane Kassel, owner of insurance brokerage firm Kassel Benefits in Phoenix.

The remaining 20 percent includes Medicare Part A and Part B deductibles and coinsurance, such as copays for office visits. In some cases, Medicare beneficiaries may have to pay excess charges when a health care provider charges more than the amount approved by Medicare. Original Medicare also does not pay for certain services such as prescription drugs, dental and health care costs incurred abroad. While beneficiaries could pay these costs out-of-pocket, consumers can cover some expenses through the purchase of a Medigap or Medicare Advantage plan.

Medicare Advantage, also known as Part C, allows Medicare beneficiaries to purchase bundled coverage from a private health insurance company. These plans include all the coverage provided by original Medicare plus additional benefits such as prescription drug and dental coverage. Kassel says the biggest downside to Medicare Advantage plans is that they may have a limited network of providers and typically do not provide out-of-state coverage. They may also come with their own deductibles and coinsurance requirements.

Those who want to avoid provider restrictions may want to consider a Medigap policy, also known as a Medicare supplement. These policies cover expenses anywhere Medicare is accepted and may provide what Ross Blair, vice president of eHealthMedicare.com, calls "bumper to bumper coverage" that results in little to no money spent out-of-pocket for health care costs.

"The trade-off is higher premiums," Blair says. "In some states, you could pay up to $300 to $350 per month." In addition, Medigap policyholders need to purchase a separate Part D plan for prescription drug coverage, which is included in most Medicare Advantage plans. Medigap plans also do not include dental coverage.

2. Know Your Medigap Plan Choices

For those who decide they want a Medigap plan, the next step is to become familiar with the options. "The great thing about Medigap plans is that they are standard benefit design," says Kris Schneider, vice president of insurance product and carrier management at Aon Hewitt.

Standard benefit design means Medigap policies offer a uniform set of benefits. The policies are lettered from A to N, with each letter representing a different set of benefits. Since Medigap plans are regulated at the state level, not every plan is available in all states. In addition, Massachusetts, Minnesota and Wisconsin have nonstandardized plans.

Of the standardized plans, Plan A offers the most basic coverage, paying Medicare Part A and Part B coinsurance costs as well as up to 3 pints of transfused blood. Plan F is considered the most comprehensive, covering coinsurance, blood, deductibles, skilled nursing in facility care, foreign travel and Part B excess charges. "Plan F is the only plan that covers everything," Kassel says.

Other plans offer various combinations of the benefits covered by Plan F. Furthermore, all plans except Plan K and Plan L have no out-of-pocket limit. (The limit for Plan K is $4,940, and the limit for Plan L is $2,470.)

3. Narrow Your Options

"Medicare consumers have to be very thoughtful about their medical costs," Schneider says. "[They need to consider] what are their costs now and what they will be in the future." Schneider suggests Medicare-eligible individuals consider all the following when weighing their options.
  • Personal preference.
  • Risk tolerance.
  • Ability to pay.
  • Lifestyle and travel.
"It is also important to ask about rate stability," Schneider says. Looking at historical rate changes is one way to gauge stability. Blair suggests consumers also find out which of the following rating mechanisms are used for the policy they are considering.
  • Community rated. Plans that are community rated do not use age as a factor when calculating premiums. Everyone enrolled in the plan, regardless of age, pays the same amount.
  • Issue-age rated. The premiums for these plans are based upon an individual's age at the time he or she purchases the policy.
  • Attained-age rated. These policies have premiums that will adjust every year based on an individual's age.
According to Blair, community-rated plans may cost more upfront, but then rates tend to remain stable. Attained-age plans, which Blair likens to variable-rate mortgages, start out inexpensive, but rates increase rapidly as you age.

4. Sign Up Early and Keep Your Plan for the Long Run

While Medigap policies can be purchased at any time, Kassel says beneficiaries can save a significant amount of money by enrolling within their initial enrollment period for Medicare. Most people will become eligible for Medicare at age 65; people with disabilities may be able to enroll earlier. For those who become eligible at age 65, the initial enrollment period runs from three months before their birthday month until three months after it.

"If purchased within six months, [Medigap policies] are guaranteed issue with no underwriting," Kassel says. "That six-month window is really critical."

Missing the window could drive prices up by 30 percent or more, she adds. That sizable discount for enrolling without underwriting is another reason consumers should carefully consider their policy choices and pick one based on their current and future needs. "[Medigap policies] are guaranteed renewable so long as a consumer pays their premiums," Schneider says.

However, once a Medigap policy lapses, Medicare beneficiaries have to go through underwriting to get a new one, a process that could significantly add to premium prices. Kassel likens Medigap to life insurance in that it's best to buy it while you're younger and healthier, so you can lock in lower rates for the long run.

5. Enlist Expert Help

Both Blair and Kassel say there is no reason for consumers to go at it alone when selecting a Medigap plan. They note there is no charge to use a broker, which means premiums will be the same whether a consumer purchases through a third party or direct from an insurance company.

Blair, whose company maintains a hotline to connect consumers with licensed agents, says individuals should be wary of captive agents who work for a specific company. "Find someone you trust," he advises. "Agents should ask lots of questions and offer plenty of options."

Kassel adds that, by law, Medigap policies cannot solicit business. That means that while Medicare Advantage brochures may fill your mailbox, you'll likely never see one for a Medigap plan. As a result, if you want help, you need to reach out to a broker or insurance company, since they cannot initiate contact with you about the policies.

 

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How Much for That Pez? Trading in Collectibles for Fun, Profit

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Earning More on Your Savings: Collectibles

By Maryalene LaPonsie

Earning money on your savings is hard nowadays. Consider that Bank of America is currently offering a rate of 0.01 percent for standard savings accounts.

Let me say that again. Bank of America is offering 0.01 percent interest for standard savings accounts. That means $100 in your account will get you one shiny penny of interest. Whoa! I know, you can barely contain yourself, right? Maybe you shouldn't bother putting that $100 in your savings account. Maybe you'd get a better return by investing that money in your favorite collectibles instead.

10 Collectibles to Avoid

Before we start talking about the collectibles you can be using to make money, let's talk about the ones that will never make you money. These are the items that are passé or that have too few buyers for too many items on the market. Although dud collectibles can sometimes vary by region, these are the ones that probably won't make you much money anywhere.
  1. Beanie Babies.
  2. Hummel figurines.
  3. Franklin Mint collectibles.
  4. Collectible plates.
  5. Precious Moments figurines.
  6. Thomas Kinkade prints.
  7. McDonald's toys.
  8. Recent issue sports cards.
  9. Recent issue comic books.
  10. Animation art.
Some of these items, such as Beanie Babies and Hummel figurines, may have had some collectible value at one time. Others, like items from the Franklin Mint, were never worth much from the start. As a general rule, anything sold as a collectible is probably anything but.

Find Something You Love and Focus on a Niche

The items that may make you the most money may be the ones you least expect. At various times, duck decoys, political memorabilia and Pez dispensers have all been hot commodities.

The key to finding the right collectible is to find something you love, something you wouldn't mind holding on to even if the market goes soft and demand dries up. Then, take that something and specialize it even further. For example, rather than collecting stamps, collect stamps from a specific nation or time period. Rather than collecting old comic books, collect old X-Men comic books.

Having a niche serves two purposes. The first is that it makes it easier for you to keep your collection under control. It can focus your buying and selling and make the process more manageable. The second is you can more easily become an expert in your area and quickly gauge demand for an item and its worth.

Study Where to Buy and Where to Sell

How you can make the most money will depend greatly on your collectible item. Some sell great on eBay, while others may require you to attend trade shows or sell your wares through auction houses. Before settling on a collectible in which to invest your money, do some research on what it takes to sell them for top dollar. Then decide whether that format is convenient for you.

As for where to buy, the details will again depend on the item. However, garage sales, thrift stores and Craigslist are all places to look for valuable items being sold for a song. Hopefully you've done some research on your niche by now and can quickly identify what's worth buying and what's worth a pass.

Flipping Collectibles vs. Holding for the Long Run

Finally, you need to decide what to do with those collectibles once you have them. You have two choices: flipping for a quick profit or holding items as a long-term investment.

Flipping purchases makes sense for lower-priced collectibles, especially ones that are hot right now. People who flipped their Beanie Babies right at the start of the craze made the most money, while those who held them for the long haul are now stuck with a bunch of cute, but mostly worthless, stuffed animals. With flipping, you want to buy low and sell high. If something is hot at the moment, you may want to sell now before the fad passes.

For long-term investments, you'll need collectibles with a proven track record of appreciating values. These will typically be items that cost more upfront, although you can still find hidden gems at garage sales and thrift stores. According to a 24/7 Wall St. analysis of data from the Knight Frank consultancy firm, these are the categories of collectibles that saw the biggest gains from 2004 to 2013. The percentage indicates their 10-year price.
  1. Classic cars -- 430 percent.
  2. Stamps -- 255 percent.
  3. Coins -- 225 percent.
  4. Fine art -- 183 percent.
  5. Wine -- 182 percent.
  6. Jewelry -- 146 percent.
  7. Chinese ceramics -- 83 percent.
  8. Watches -- 83 percent.
However, not every item within these categories can be expected to appreciate in value. That's why it's so important to do your homework before investing your cash in a collectible of any kind.

Do you buy collectibles for resale or as investment items? Tell us about your experience in the comments below or on our Facebook page. 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.

 

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Cool or Creepy? High-Tech Barbie Can Converse With Kids

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The Gift That Doesn't Need Batteries, Never Breaks and Can Change a Kid's Life

By Krystal Steinmetz

Mattel's new Hello Barbie can have a full-on conversation with your child. The toy doll talks and listens to your child and then transmits a recording of the conversation to a Web server where it can be analyzed. Mattel wants to have the doll, which employs Wi-Fi and voice-recognition software, on store shelves this fall.

This latest take on the iconic doll has some advocacy organizations concerned. Among them is the nonprofit Campaign for a Commercial-Free Childhood, which has launched a petition calling on Mattel to ditch the talking doll. "Kids using Hello Barbie' won't only be talking to a doll, they'll be talking directly to a toy conglomerate whose only interest in them is financial. It's creepy -- and creates a host of dangers for children and families. Children naturally reveal a lot about themselves when they play. In Mattel's demo, Barbie asks many questions that encourage kids to share information about their interests, their families, and more -- information advertisers can use to market unfairly to children."

Using Conversations for Marketing, Publicity Denied

ToyTalk, the San Francisco company that created the voice-recognition technology used in the doll, maintains that the audio files collected by Hello Barbie will be used to improve the doll and her responses, The Washington Post reports. "The data is never used for anything to do with marketing or publicity or any of that stuff," ToyTalk chief executive Oren Jacob said. "Not at all." ToyTalk said parents can access their children's recordings as well.​

With profits plummeting (59 percent in the fourth quarter) and Barbie sales on the decline (21 percent), the toy company apparently sees the high-tech incarnation of Barbie as a possible path to recovery. "Mattel is committed to safety and security, and Hello Barbie conforms to applicable government standards," Mattel said in a statement to the Post.

I think the Barbie is super creepy. It reminds me too much of Chucky from the "Child's Play" movies, which gave me nightmares for years as a child. It's one thing to talk and play with a doll. It's entirely another thing to have the doll answer you and record your conversation to share with a third party.

What do you think of the Hello Barbie doll? Share your comments below or on our Facebook page. 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.

 

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Fall Behind On Your Taxes? You Might Be Pilloried Online

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By Eric Reed

Don't be like Chitsana Khounsamnane, a Nevada resident who owes California more than $3.5 million in back taxes. She had a lien filed against her in January of 2014 and so far hasn't paid any of that liability. How do we know? She was first on California's Top 500 Delinquent Taxpayers list for March.

Ready the pillories and hands to the tomatoes, taxpayers of America: here are your bad guys. At least 29 states publish delinquent taxpayer lists, hoping to both pressure scofflaws and scare other taxpayers into toeing the line. Unfortunately, according to tax attorney and former IRS agent Patrick Sheehan, it just doesn't work.

"If you've been able to stay away from or avoid the tax collector to this point -- or making the list of top offenders -- shaming is probably of little value," Sheehan said. "Most people that owe money to the government have other creditors, so frequently perhaps your house is in foreclosure [or] you're losing your business. You're pretty shamed by that point and one more shaming is probably not going to change your behavior."

Not that there's much embarrassment generated by an obscure list posted up on a revenue department website. "Seriously, if you had an exciting magazine that just came in the mail or a link to the delinquent taxpayer list, which one are you going to read?" Sheehan said.

What Does Work Instead?

New York's most wanted clocks in with more than $22.7 million in unpaid personal income taxes, and its restaurants seem to have a shockingly hard time following the rules. Seeing his name in print might convince Samyak Veera, New York's No. 1 offender, to pony up the dough -- but probably not.

So what does work? According to Sheehan, levies. One of the reasons that the tax collector is such a feared creditor is his power to simply reach in and seize your assets without even taking you to court. "Levies area very effective enforcement tool. If you all of a sudden realize on payday that some or all of your money has been taken by force then you either endure the levy, which most people can't, or you work out a deal with the government." Either way, the tax collector gets his cash.

Still, lists like these, in which we learn that Master Touch Drywall of Washington state owes over $2 million in state taxes, raise another question. Why bother publishing a list instead of just slapping on a pair of handcuffs? The answer is: that might have happened too.

When it comes to taxes, criminal enforcement and collections are two different issues. In fact, any underpayment is technically a crime, whether it's a CEO who bank-shots his 1040 into the trash or a little old lady who accidentally underpays $100. They're both criminal violations of the tax code; it's just that one is far more likely to draw enforcement than the other.

For members of the top delinquency lists, the very real threat of criminal prosecution doesn't excuse any outstanding debts. Even in prison they still owe. So, like Thomas Wurzer's $7.6 million debt to Wisconsin, the liabilities hang on.

Maybe There's Some Harm, Too

These obscure lists might not serve much more than a prurient good (seriously, who wouldn't take a peek hoping for a bit of celebrity spotting), but they can actually do real harm. According to Sheehan, tax scams operate at an unprecedented level fueled in no small part by an Internal Revenue Service starved for the resources to pursue con artists and answer questions from confused taxpayers. And these lists, with names, hometowns, precise debt totals and even, sometimes, warrant numbers, provide all of the ammunition a con artist could want.

"Shady tax representatives use that list in an attempt to contact those individuals hoping to either represent them or scam them," Sheehan said. "We get those phone calls all the time, people call and pretend to be a government official. They say either you pay us now in cash or we're going to send someone to arrest you, and normal law abiding people are fearful of that."

Still, some states insist that publishing the names of delinquent taxpayers is an effective tool at rounding up payments from people who don't want the publicity. In announcing the beginning of its program in 2009, Illinois said it triggered more than $15 million in back payments from people and companies eager to avoid publication.

Eric Reed is a freelance journalist who writes frequently on the subjects of career and travel. You can read more of his work at A Wandering Lawyer.

 

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Buffett Buys Abroad, Opening Door to a World of Opportunities

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There are certain people indelibly associated with American business, and Warren Buffett is one of them. The star financier has built his investment vehicle, Berkshire Hathaway (BRK-A) (BRK-B), into one of the planet's largest companies, mainly by acquiring stakes in domestic firms.

That's why the company's acquisition of Germany's Detlev Louis Motorradvertriebs (try saying that 10 times fast) last month probably surprised some Berkshire-watchers. It certainly is a departure from the veteran investor's usual way of making a buck. Yet we should get used to it, because it looks very much like this type of purchase may become a Buffett habit from now on.

Motoring Ahead

As far as Berkshire Hathaway's recent investments go, Louis (the new asset's brand name) was relatively small potatoes. Buffett's company paid a bit over 400 million euros ($454 million or so at the time) for the entirety of the German company, which sells motorcycle accessories made by a wide variety of manufacturers via its website and a network of over 70 stores in Germany and Austria.

Compare that price with some of the conglomerate's recent buys in the U.S. Last November, it coughed up around $4.7 billion in stock to acquire the Duracell battery line -- and that was a single unit of a company, in this case Procter & Gamble (PG).

In 2013, Berkshire was the lead company in the consortium that acquired ketchup king H.J. Heinz. That deal went down for $28 billion, including debt assumption.

For Berkshire, the Louis buy is the beginning of a widened focus on investment opportunities throughout the world, rather than just in America. It's "smaller than something we would normally do," Buffett said of the purchase to the Financial Times, "but it is a door opener."

Perfect for the Portfolio

It's also got reassuringly familiar elements for Berskhire Hathaway. Buffett famously likes to invest in relatively straightforward businesses he can understand -- for proof, look no further than the long list of companies his investment vehicle has a stake in.

There's Coca-Cola (KO), which requires no introduction, Don't-leave-home-without-it credit card giant American Express (AXP), banking major Wells Fargo (WFC) and monster retailer Walmart (WMT). Louis fits that mold perfectly: It concentrates solely on selling those bike accessories. Additionally, the company is privately held by a tight group of investors, in this case the Louis family. Acquiring such concerns is a Berkshire specialty; its portfolio is stuffed with them, from car retailer Van Tuyl Group to confectionery producer See's Candies.

It also probably goes without saying that, since this is Buffett we're dealing with here, Louis was a relative bargain to purchase. The German company takes in annual revenue of roughly 270 million euros ($306 million); the 400 million euros Berkshire Hathaway paid for it is less than 1.5 times that amount.

By contrast, Heinz went for 2.4 times, while Berkshire itself (in the form of its original A category of shares) has a market capitalization of $351 billion, 1.8 times its 2014 revenue of nearly $195 billion.

Currency Woes

Europe in particular is fertile bargain-hunting ground just now. Weighed down by stuck-in-the-mud nations like Spain and Greece, the continent's economy has been stagnant for years.

The U.S., meanwhile, has been growing noticeably. The disparity between the two, among other factors, has driven the euro sharply down against the dollar.

As a result, the price tags of potential buys in the eurozone (the 19 countries that currently use it as their currency) are now much lower in dollar terms. That roughly $454 million Berkshire's spending on Louis would have cost it $552 million one year ago, assuming the same sale price in euros.

That's a difference of around 20 percent, or almost $100 million in currency terms. This is not an immense amount for a company with the scope and financial might of Berkshire, but it becomes compelling when assets approaching the size of, say, Duracell or Heinz go on sale.

Shopping Around the World

Buffett likes what he sees in Europe. He told the Financial Times that he feels the continent "has hundreds of millions of people, high incomes, productive people, so it is a great place to be."

Those are the words of a man who's very bullish on overseas markets, and for the chance to acquire choice companies there at discount prices. We are almost certain to see Berkshire purchase more foreign assets in the future.

So, companies of the world looking to sell, practice your sales pitch: Berkshire Hathaway's checkbook is ope.

Motley Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends American Express, Berkshire Hathaway, Coca-Cola, Procter & Gambl, and Wells Fargo. The Motley Fool owns shares of Berkshire Hathaway and Wells Fargo and has the following options: long January 2016 $37 calls on Coca-Cola, short January 2016 $37 puts on Coca-Cola, short April 2015 $57 calls on Wells Fargo, and short April 2015 $52 puts on Wells Fargo. Try any of our Foolish newsletter services free for 30 days. Looking to build up your own portfolio? Check out our free report on one great stock to buy for 2015 and beyond.

 

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5 Reasons We're Not Excited About Streaming TV - Yet

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Family watching television together
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It's getting a lot easier to say goodbye to your cable or satellite television provider. There's a growing number of streaming television options these days, and there are more on the way judging by Sony's (SNE) new PlayStation Vue and several reports indicating that Apple (AAPL) is ready to dive into this space.

Did you sign up for one yet? You've been complaining about your ever-increasing cable bills for years, and now that economical streaming options are available, you're just not jumping on the opportunity. It's OK. I haven't either. Let's go over a few of the reasons that consumers aren't hopping on the trend.

1. Every Service Has Its Content Gaps

Folks generally hate costly cable bundles, forcing them to pay for a ton of channels that they're not watching. Streaming TV should be able to solve that, giving consumers the ability to cherry-pick channels. However, the first wave of offerings simply follow the old way of thinking, providing a basket of channels at a flat monthly rate.

If that isn't bad enough, every single standalone service that has launched so far is missing a few key channels. PlayStation Vue doesn't carry ESPN. DISH Network's (DISH) Sling TV lacks access to the major networks. In short, streaming TV is actually complicating things. You will probably wind up subscribing to a couple of different services, eating into the cost-effectiveness of cutting the cord in the first place.

2. There's No Universal Way to Get Connected

PlayStation Vue is only available through PS3 and PS4 consoles. CBS All Access is not accessible on consoles, set-top boxes or smart TVs. Sling TV can be streamed through most devices, but right now that doesn't organically include Apple TV.

All of this naturally creates confusion. Consumers are not sure which platforms go with the devices they already own. More important, since limited content on each service makes it likely that video buffs will want more than one service, it complicates matters because the desired services all need to be compatible with the same streaming device.

3. Broadband Connectivity Can Be Spotty and Expensive

Cable customers have experienced occasional outages, and satellite television subscribers know that weather can result in spotty reception. Is your Internet connection any more reliable? It also goes without saying that you will need a lot of bandwidth if you want to stream high-def video without buffering.

Heavy usage of streaming television can also eventually hit your pocketbook. Some Internet providers have been accused of throttling the streams of customers who tend to consume a lot of data, and if networks get slammed, it won't be a surprise if usage caps and pricing tiers are eventually introduced. In short, having a consistent, fast and economical connection could be a challenge.

4. It's Not Cheap for Families

A big deal breaker for many of these services is that a subscription is limited to a single device. Sling TV at $20 is a steal, but if you have four TVs in your home, we would be talking about $80 to service the entire family.

Streaming TV platforms will likely eventually offer family plans, but for now it makes it a potentially more expensive option for large families who typically pay a low price, if any price at all, for additional outlets.

5. Hey, We're Waiting for Apple to Show Us the Way

It's easy to want to stay on the sidelines until Apple raises the bar, and that could happen as early as September according to The Wall Street Journal. Just as the smartwatch market hasn't taken off ahead of Apple's arrival, the world's most valuable consumer tech company is the ultimate tastemaker.

Waiting for Apple isn't really necessary. Most of these services are being offered on monthly contracts, making it easy to cancel or switch. However, until Apple tells mainstream consumers why they will want a streaming TV service, the public will likely remain skeptical -- and on the fence.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. Want to make 2015 a winning investment year? Check out The Motley Fool's one great stock to buy for 2015 and beyond.

 

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Taco Bell's Waffle Taco is Dead; Biscuit Taco to Replace

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By CANDICE CHOI

NEW YORK -- The newest weapon in the breakfast wars is a biscuit shaped like a taco.

Taco Bell is introducing a "biscuit taco" this week and ditching its "waffle taco," which got widespread attention last year when it was included in the rollout of the chain's breakfast menu.

The swap comes as the chain tries to build on its year-old breakfast business by once again going after the dominant player in the mornings: McDonald's.

In a new ad campaign, Taco Bell plans to paint Egg McMuffins as boring, routine food for the brainwashed. In New York and Los Angeles, it is putting up propaganda-like posters for a place called "Routine Republic," with one featuring a demonic clown holding what looks like an Egg McMuffin with the words "Routine Rules."

National TV ads will feature testimonials from real-life "defectors" saying things like "I admit I used to be a McDonald's fan."

This image provided by Taco Bell shows an ad shows the restaurant chain's new chicken
Taco Bell via APAn ad for Taco Bell's new chicken "biscuit taco."
It's a continuation of an ad campaign last year that featured real-life people named Ronald McDonald professing their love for Taco Bell offerings. At one point, McDonald's responded by tweeting a photo of Ronald McDonald kneeling down to pet a frail Chihuahua, which was once the mascot for Taco Bell.

Some referred to the back-and-forth as "the breakfast wars."

Whether the biscuit taco has more staying power than the waffle taco remains to be seen. Despite the attention the waffle taco initially generated because of its novelty in the fast-food space, there were early signs it might not last. Not long after it was rolled out, Taco Bell Chief Marketing Officer Chris Brandt noted that "some of the things on our menu might run out of gas." The chain has also repeatedly said the star of its breakfast menu is the A.M. Crunchwrap, which is a grilled tortilla stuffed with eggs and a hash brown along with sausage, bacon or steak.

As for its latest offering, a Taco Bell representative said it's "more than just a biscuit, it's a warm, fluffy, buttery biscuit, folded in the shape of a taco" and it's here to stay. Starting Thursday, people can get it filled with options like eggs, sausage, cheese or deep-fried chicken and jalapeno honey sauce. It has between 370 and 470 calories, depending on the fillings.

Already, the launch of a national breakfast menu has helped drive up sales at Taco Bell, which has been trying to redefine itself as a hip brand with its "Live Mas" slogan. In the latest quarter, the chain's sales rose 7 percent at established locations, driven by breakfast, according to parent company Yum Brands (YUM).

Taco Bell CEO Brian Niccol said breakfast has been holding steady at about 6 percent of sales. That's compared with between 20 and 25 percent for McDonald's, which has been playing up its own offerings by noting it cracks fresh eggs to make Egg McMuffins.

It's not clear what impact Taco Bell's breakfast is having on McDonald's (MCD), which has been struggling to hold onto customers more broadly amid intensifying competition. But others have been pushing into the breakfast category more aggressively as well, including Starbucks, which revamped its sandwiches last year.

 

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