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Mother's Day Freebies and Deals

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Mother and adult daughter smiling
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By Cameron Huddleston

You don't have to blow your budget to treat your mom on Mother's Day. In fact, you can show her that her money-smart ways have rubbed off on you by taking advantage of special offers that can lower the cost of doing something nice for your mom. Several restaurants, retailers and attractions will be offering freebies, deals and sweepstakes for moms on or around Mother's Day on May 10. If you don't find your mom's favorite establishment listed below, check its website or Facebook page to see it it's offering a Mother's Day promotion.
  • Arooga's Grille House & Sports Bar is treating moms to a free meal (up to a $15 value) on Mother's Day with a purchase of equal or greater value. Arooga's has nine locations in central Pennsylvania.
  • Beef 'O' Brady's is giving moms a free meal on Mother's Day with a purchase of equal or greater value. The chain of sports pubs has more than 200 locations in 23 states.
  • Brick House Tavern & Tap is treating moms to a free brunch entree with the purchase of an entree at participating locations. Reservations for brunch are required. Brick House has 23 locations nationwide.
  • California Pizza Kitchen has a Dear Mom Sweepstakes you can enter by uploading a photo and story about mom with the hashtag #CPKDearMomSweeps on Instagram, Twitter or the restaurant chain's Facebook page for a chance to win a weekend getaway that includes roundtrip airfare to Las Vegas, a two-night stay at the MGM Grand in Las Vegas, $500 spa credit, $500 shopping spree and lunch or dinner for two at CPK Summerlin. You can enter through May 31, and a winner will be chosen June 3.
  • Chuck E. Cheese's has a coupon for a free individual thin and crispy pizza for mom with a $29.99 purchase of a large pizza, four drinks and 30 tokens. The family dining and entertainment chain has locations in 47 states.
  • Corner Bakery, with 188 locations in 21 states and D.C., has a coupon for a free six-pack of bundt cakes for mom with the purchase of a lunch or dinner entree.
  • Fogo de Chao Brazillian Steakhouse will give a mom who dines on Mother's Day at one on its locations in 26 U.S. cities a complimentary lunch or dinner during her next visit.
  • Hurricane Grill & Wings is offering moms a free dessert of their choice with the purchase of an entree at participating locations in 12 states.
  • Lazy Dog Restaurant and Bar will offer moms $5 "Momosa" drinks on Mother's Day, and moms can take home the champagne glass (while supplies last). Lazy Dog has locations in Las Vegas and California.
  • McCormick & Schmick's is giving moms a complimentary chocolate-covered strawberry with brunch on Mother's Day. The restaurant chain operates in 24 states.
  • Museums and gardens. Admission to many public gardens across the country is free on National Public Gardens Day May 8 -- and through Mother's Day weekend. For example, The Fells Historic Estate and Gardens in Newbury, N.H., is offering free admission to all May 8-10. Search for gardens near you to see if any have special offers for Mother's Day.
  • Museums, zoos and other attractions often offer free admission to moms on Mother's Day. For example, the Montgomery Zoo and Mann Wildlife Learning Museum in Montgomery, Ala., are offering free admission for moms May 10. Check with museums in your area for similar offerings.
  • Orange Leaf Frozen Yogurt is treating moms to a free 8-ounce cup of frozen yogurt on Mother's Day. There are more than 300 locations in 37 states.
  • Outback Steakhouse wants guests to celebrate Mother's Day early with a downloadable coupon for 15 percent off your entire check through May 7. Plus, if you buy $50 in gift cards through June 21, you'll receive a bonus $10 gift card.
  • PDQ is offering moms a free combo meal (three-piece chicken tenders, salad or sandwich combo) on Mother's Day with the purchase of a kids combo meal. The fast-casual restaurant chain has locations in seven states.
  • Princess Cruises has a Mother's Day sale on fares for cruises to the Caribbean, Mexico, Canada, New England, the Panama Canal, Hawaii and California. Plus, it's offering up to $200 worth of free onboard spending money. The sale runs through May 14.
  • RA Sushi will be offering an all-day happy hour on Mother's Day with select sushi, appetizers and drinks starting at $3.49 at its 26 locations in nine states.
  • Safe Step Walk-in Tub Co. is giving away one of its hydrotherapeutic tubs for Mother's Day. You can nominate your mom on Safe Step's Facebook page by uploading a photo of you and your mom, telling why your mom deserves a Safe Step tub, then sharing the photo on Facebook so friends and family can vote. A winner will be selected from the five moms with the most votes.
  • Shoney's is giving moms a free slice of strawberry pie on Mother's Day with the purchase of a buffet or entree. Shoney's has 160 locations in 16 states.
  • Snapfish has printable cards, breakfast-in-bed menus, origami flowers and party banners for Mother's Day that you can download for free.
  • Spaghetti Warehouse is offering a free appetizer for registering for its Mother's Day photo album. You can upload a photo of your mom and tell why she's special for a chance to win a $100 Spaghetti Warehouse gift card. The restaurant chain also is offering moms who dine at one of its locations in seven states on May 10 a free strawberry lemonade and one of five gifts: a free "Make it a Feast" entree, a buy-one-get-one free spaghetti or lasagne, a free brownie sundae, a free spaghetti or lasagne entree, or a $25 Spaghetti Warehouse gift card, says Kathy Wan, director of marketing for Spaghetti Warehouse Restaurants Inc.
  • TGI Fridays will offer half-priced bottles of wine for its Mother's Week celebration May 5-10 at participating restaurants.

 

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Why You Can't Trust Those Retirement Calculators

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Taxes Due!
Andrew Rich/Getty Images
By Jon Stein, founder and CEO of Betterment

There are a lot of basic retirement calculators on the Internet, but few of them take into consideration the factors that are truly important.

It's not your current income that's the key piece of information to determine your retirement number -- it's how much you want and need to spend during retirement.

What you'll spend in the future depends on where you live, your typical spending patterns and the tax and growth profiles of your investments.

The reason so many retirement calculators fall short is that making these kinds of calculations in relationship to one another is complicated, and so far, few calculators offer all of these inputs under one roof with a robust algorithm and an easy-to-use interface.

But we're getting there. Today we have the right data that can get you closer to the actual savings you'll need for retirement, based on the lifestyle you plan on having. That means there is a smaller and smaller margin of error to get you where you need to go.

As you venture to the Internet to determine how much you'll need, first make sure you understand the inputs that make a good retirement calculator.

Your Spouse's Holdings

For example, your spouse's Social Security is an essential part of your savings plan; without factoring it into your overall calculations, a typical retirement calculator could be overestimating how much you should be saving.

Marital status also affects your taxes, income and qualification limits for individual retirement accounts, making it a vital factor in putting together your plan.

For instance, you can't contribute to an IRA if you don't have taxable compensation. But if your spouse does and you're filing a joint tax return, then you may be eligible.

Without factoring this in, you might be getting inaccurate advice about the accounts to which you should contribute. (Read the IRS rules about IRA contribution limit.)

Where You Want to Retire

Figuring out your retirement spending depends on exactly where and how you plan to live after you have stopped working.

Adjusting your plan at a ZIP-code level is critical for getting an accurate idea of how much you will actually need in order to support your lifestyle.

For example, if you plan on moving from Raleigh, North Carolina, to retire in New York City and you factor in Broadway shows and art museums as part of your second act, your cost of living will more than double. But do it the other way around -- move from New York to Raleigh -- and your cost of living decreases considerably.

Changes In Spending

Some calculators look at your current income and then ask you questions about future spending patterns, such as, "Do you plan to be frugal during retirement, or will your spending be similar to what it is today?"

The answer to that question is not only hard to know years in advance of retirement, but it's also missing a key point: Regardless of whether you're more or less frugal during retirement, the amount of money you need will change. Once you're retired, you're no longer saving as much, so you don't need as much after-tax income to support the same lifestyle.

Research from the American Economic Association and National Bureau of Economic Research has shown that the wealthy often consume less than half of their net income because of taxes and savings. For example, according to our calculations, a single person living in New York with a pretax income of $1 million a year can assume that just over $410,000 of that goes to taxes and about $300,000 goes to savings and investments.

That means the amount you're spending is just less than $300,000, making it a good estimate of what you'll want to spend per year in retirement. (This hypothetical scenario refers to retirement spending, not retirement income, and doesn't factor in any expected salary increases.)

"Rather than planning for the average market return, it's smarter to plan for an outcome that may be a bit less rosy but that will leave you with more security in the case of a market downturn."

Taxes During Retirement

When it comes to taxes, not all retirement accounts are created equal.

With a traditional IRA or 401(k) plan, you pay taxes on each withdrawal in retirement. With a Roth IRA or Roth 401(k), however, there are no tax implications upon withdrawal when you reach your full retirement age.

That means if you're only ever contributing to a traditional 401(k) or IRA today, your retirement tax bill is going to be much higher than if you're saving in Roth accounts. Unfortunately, most retirement calculators don't take this into account.

Find a calculator that factors in state income tax. In order to estimate your average tax rate during retirement, it's important to get an estimate of what your state tax burden will be on top of your federal tax. By not doing this, you may underestimate tax on withdrawals from your portfolio.

Transparency About Market Uncertainty

Some calculators give advice based on a constant average return, obscuring the fact that what may actually happen in the market over a 30-year period is very uncertain. Rather than planning for the average market return, it's smarter to plan for an outcome that may be a bit less rosy but that will leave you with more security in the case of a market downturn.

Changing the average return in a calculator isn't a great way to do this, because it obscures the volatility you might experience along the way.

Keep in mind that if your investments are properly adjusted for this risk, then you can likely plan for a not-so-great outcome. However, make sure to update and adjust your plan as you know more about the market returns you've experienced.

By dynamically updating your plan and tracking whether you're on the right path, you can ensure you'll always have at least as much as you want, if not more, should markets cooperate.

-By Jon Stein, founder and CEO of Betterment

 

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Can Breadstick Sandwiches Help Revive Olive Garden?

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Olive Garden Breadsticks
AP
NEW YORK -- Olive Garden's plan to win back customers? Take the breadsticks it's known for and make sandwiches out of them.

The restaurant chain known for its unlimited breadsticks says it plans to use them for chicken parmigiana and meatball sandwiches starting June 1.

The plans for the breadstick sandwiches are the latest attempt to revamp Olive Garden's menu and marketing to win back customers. Justin Sikora, a Darden representative, said the breadsticks used for the sandwiches will be a bit shorter and wider than the regular breadsticks.

And as with all other dishes, the sandwiches come with unlimited breadsticks.

Olive Garden's unlimited breadsticks gained attention last year during a dispute with an investor, Starboard Value. Among other criticisms of Olive Garden's parent company, Darden Restaurants (DRI), Starboard said the chain wasn't being disciplined in its distribution of breadsticks to customers. It also said the quality of the breadsticks seemed to have declined and compared them to hot dog buns.

Shortly after, Starboard won its bid to take control of Darden's board.

In an interview on "Wall Street Week" on Sunday, Starboard CEO Jeff Smith said "it might surprise people that I actually like the breadsticks" and mentioned the plans to introduce breadstick sandwiches.

Smith also repeated that Starboard's criticism about the breadsticks was that Olive Garden wasn't following its own policy for how many breadsticks are placed on tables at a time.

As for the quality of the breadsticks, Sikora said the recipe for them hasn't changed.

 

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Sorry, Insurers: Millennials Just Aren't That Into You

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Kids today! Say what you like about them, there's one thing everyone must agree on about the current crop of "millennials": They'll grow up to become the adult consumers of tomorrow. And for some companies, that's proving to be a problem.

Take the insurance companies (please). According to a recent poll conducted by Gallup, millennial customers (loosely defined as kids born between 1980 and 1996) are the least "engaged" purchasers of any age group signing insurance contracts. By this, Gallup basically means that millennials don't identify themselves closely with the brand of insurance that they carry. And as a result, they're less likely to, for example, make their current car insurance provider their first choice when shopping for a home insurance policy, or when buying life insurance. They're less likely, also, to stick with their usual insurer when a contract comes up for renewal.

In short, when Gallup says millennials aren't engaged, it means they're fickle.

All Together Now: How Fickle Are They?

More fickle than you might think. According to Gallup data, only 31 percent of millennials appear "fully engaged" to a primary insurer. That's a full 10 percentage points fewer than the age group Gallup calls "traditionalists" -- the born-pre-WWII generation.

More worrisome still (for insurers, who like repeat customers), 27 percent of millennials appear to be actively disengaged. That's nearly twice the 15 percent level of "disengagement" ascribed to traditionalists. And it might mean, for example, that by the time an insurance contract expires, millennials are champing at the bit, and looking for an excuse to switch insurers. It's at this point that millennial fickleness morphs into outright disloyalty -- and that worries insurers quite a lot indeed.

(In case you're curious, between these two generations lie Generation X and the baby boomers, both of which groups are somewhat more actively engaged than millennials -- 34 percent for both Gen X and the boomers -- and somewhat less actively disengaged -- 23 percent for each group.)

So What? Why Should We Care?

Putting its poll numbers in context, Gallup notes that there are real dollars and cents behind these findings. In particular, actively engaged insurance customers are said to both "buy a wider variety of products" from their insurers and to be "less sensitive about pricing."

Translation: They generate more revenues, and more profitable revenues, for the companies that cater to them. As a result, insurance companies have a vested interest in trying to engage as many millennials, Gen X-ers, boomers and oldsters as they possibly can.

But especially the millennials -- because they'll be living longer, and producing revenues and profits longer, natch.

What Millennials Want

So how do insurers attract and retain millennials' business -- and what does that mean to you, whether you're a millennial or not?

Gallup points out that "building and maintaining customer engagement" among millennials is "challenging." One key, though, is that as the most wired generation, millennials are more than twice as likely as other generations to buy their insurance policies online than to use a human insurance agent. Gallup notes that by making improvements in such online-specific areas as better securing "account and personal information," simplifying the process of tweaking insurance coverage online, and improving a website's search function to make it easier to find "answers to their insurance questions," insurers can go a long way toward improving customer loyalty among millennials. (And one imagines, not just millennials.)

Another quirk: Millennials are also "significantly" more likely to favor the same insurers their family members buy from. Initially, this may be because they started out as insureds on their parents' policy. But Gallup data seem to suggest that even after venturing out on their own, millennials value input from family members on which insurers to patronize. This suggests that in attempting to engage their most lucrative demographic, insurance companies will likely place a premium (so to speak) on winning and keeping the business of family groups. If this effort translates into their offering more attractive rates to family members, this could be an opportunity many consumers can take advantage of.

A quick Web search for insurers actively advertising such plans, however, suggests that these improvements are yet to come. Insurers such as Nationwide, for example, may offer a "Family Plan" giving discounts to "anyone who lives under your roof." But it seems few insurers have taken the next logical step, and offered discounts specifically targeted at family members who live under other "roofs."

If they want to win more business from the coveted millennial demographic -- and from the rest of us, too -- maybe they should start doing that.

Motley Fool contributor Rich Smith buys insurance policies typical for someone from Generation X, but the way he buys them is more like someone from Generation "Traditionalist." He has no position in any stocks mentioned. Neither does The Motley Fool. Check out our free report on one great stock to buy for 2015 and beyond.

 

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If the Apple Watch Flops, What Will Apple Roll Out Next?

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Apple Watch Release
Ryan Emberley, Invision/APA customer tries on the Apple Watch Edition at the Eaton Centre Apple Store in Toronto.
Apple (AAPL) has had more than a few hiccups since last month's rollout of the Apple Watch. Some of the initial stumbles include a defective key component, surprising feature omissions, and mixed reviews from leading tech bloggers. Buyers with wrist tattoos have also complained that the inked skin messes with the device's sensors.

Then there's the challenge that Apple has in terms of supply. The consumer tech giant hasn't put out official sales figures, but production constraints find most people who preordered Apple Watches still waiting for their devices. This might seem to foster the illusion of success, but things can turn if consumers tire of waiting or Apple doesn't overcome the initial mistakes.

It goes without saying that Apple will need to act quickly if the Apple Watch fails to live up to expectations by the time the titan of tech solves its production issues. It has too much riding on the success of the iPhone -- now accounting for more than two-thirds of Apple's sales -- and it will need something besides its original Macs business to offset its declining iPad and iPod lines. Let's go over a few of the products that are rumored to be next on the class act of Cupertino's drawing board.

Apple Television

Apple has put out several generations of Apple TV, its set-top box that offers access to iTunes videos and streaming apps. It also allows owners of Macs and owners of iOS devices to play content on their TVs.

Apple has bigger dreams when it comes to television, and Steve Jobs even told his biographer that he had finally "cracked it" when it comes to the platform, through either full-blown high-def televisions or a streaming service.

There are plenty of smart televisions already on the market, and the launches earlier this year of Sling TV and PlayStation Vue have piqued consumer interest in streaming television services. This will probably be Apple's next new market.

iCar

The rumor mill has been talking up the prospects lately of Apple wheeling out its own car. It wouldn't happen right away, of course. One doesn't jump into the automotive market immediately, and even the more ambitious rumors find the potential iCar not hitting the market for another five years. However, the chatter keeps getting louder. Fiat's CEO recently met with Apple CEO Tim Cook to discuss the tech bellwether's "intervention" in the automotive industry. Tesla Motors (TSLA) CEO Elon Musk was asked about Apple's potential entry into the car market, saying that it would be a "great" development.

Musk is upbeat about Apple's potential smart car, even after Apple has hired a few Tesla employees. Musk dismissed the poaching concerns, pointing out that Tesla has hired more Apple employees than Apple has taken warriors from Tesla's front line. Then again, Apple plucking Tesla employees is probably a good indication that Apple is intrigued by this market -- and more so than just the CarPlay dashboard tech that it's currently rolling out implies.

Wearable Camera

Apple recently took out a patent for a remote viewfinder. Some have argued that this is tied to the recent Apple Watch rollout, but others have speculated that Apple's interest here is the first step in pushing for taking on GoPro (GPRO) in wearable cameras.

Apple has always been trying to improve the camera quality on its iPhones, so the shift to dedicated high-def cameras wouldn't be a surprise. It would be an ideal way to promote its Retina Display tech to an even wider audience. Given GoPro's heady growth at the premium end of the market, it wouldn't be a surprise if this becomes a priority at Apple.

It's safe to say that the Apple Watch isn't the last new product category for the world's most valuable consumer tech company, but if the smartwatch stops ticking, Apple may be quick to hit the market with something new.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple, GoPro, and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. Check out our free report on the Apple Watch to learn where the real money is to be made for early investors.

 

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Fed: 'Natural' Rate of Unemployment Could Fall to 4.4%

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Jobless Claims In U.S. Hold Below 300,000 For Sixth Week
Matthew Busch/Bloomberg via Getty Images
By Ann Saphir

Changes in the U.S. labor force may allow the economy to sustain a much lower rate of joblessness in the future without fear of inflation, a team at the Chicago Federal Reserve Bank said Monday in research that could support more dovish interest rate policies.

The natural rate of unemployment has fallen recently to 5 percent or less, and could fall to around 4.4 percent to 4.8 percent by 2020, the researchers said in the latest Chicago Fed Letter.

The Chicago Fed paper, spearheaded by chief researcher Daniel Sullivan and microeconomic specialist Daniel Aaronson, showed the natural rate of unemployment falling as the U.S. population ages and more people stay in school longer.

By contrast, Fed officials on average estimate the long-run sustainable rate to be about 5.1 percent. The unemployment rate is now at 5.4 percent, and some Fed officials have worried publicly about leaving interest rates near zero when the unemployment rate is approaching widely accepted measures of full employment.

A lower natural rate of unemployment suggests the Fed can keep rates lower for longer to spur investment and job creation without worrying about kindling an unwanted rise in inflation. The natural rate is, however, notoriously difficult to estimate and changes over time, so the Fed doesn't officially target any specific rate of unemployment as it seeks to fulfill its mandate to bring the economy to full employment.

 

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Feds Close Insurance Loopholes on Preventive Care

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Getty ImagesUnder new rules issued Monday, insurers can no longer charge patients for anesthesia services in connection with colonoscopies to screen for cancer risk.
By RICARDO ALONSO-ZALDIVAR

WASHINGTON -- From contraception to colonoscopies, the Obama administration Monday closed a series of insurance loopholes on coverage of preventive care.

The department of Health and Human Services said insurers must cover at least one birth control option under each of 18 methods approved by the FDA -- without copays.

Also, insurers can't charge patients for anesthesia services in connection with colonoscopies to screen for cancer risk.

President Barack Obama's health care law requires most insurance plans to cover preventive care at no additional charge to patients. The types of services covered generally dovetail with the recommendations of a government advisory panel. Also on the list are birth control pills and other contraceptives.

But independent experts and women's groups had recently found coverage gaps for some birth control methods. Insurers said they were trying to comply with the law, but that federal rules didn't provide enough detail.

"This has been a problem for women," said Cindy Pearson, executive director of the National Women's Health Network. "It seems like some insurers were trying to control costs under cover of medical management." Her organization advocates on reproductive health and other issues.

The new policy takes effect in 60 days. Other services covered without copays or cost-sharing include:
  • Preventive screening, genetic counseling and BRCA genetic testing for women at increased risk for having a potentially harmful mutation in genes that suppress cancerous tumors.
  • Prenatal care and other services to promote healthy pregnancies. The requirement applies to insurance plans that cover children as dependents.
  • Certain preventive services for transgender people. For example, a mammogram for a transgender man who has residual breast tissue or an intact cervix.
On birth control, insurers will be required to offer at least one no-cost option in each FDA-approved category. These include daily birth control pills as well as longer-acting hormonal patches and IUDs, and the morning-after pill. The option provided can be a generic, but if a woman's doctor says a more expensive alternative is medically necessary, the plan must cover it without a copay.

Insurance billing is notorious for breaking down procedures into different subcategories. The new rules made it clear that patients can't be billed a copay for anesthesia during a colonoscopy.

"The plan or issuer may not impose cost sharing with respect to anesthesia services performed in connection with the preventive colonoscopy if the attending provider determines that anesthesia would be medically appropriate for the individual," HHS said in its guidance document.

 

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Market Wrap: Stocks Drop on Global Jitters; Oil Stocks Slip

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Financial Markets Wall Street
Richard Drew/AP
By Noel Randewich

NEW YORK -- Wall Street closed lower Monday as investors fretted about Greece's precarious financial condition and slowing growth in China, while energy stocks fell on weaker oil prices.

U.S. stocks, which rallied Friday on a strong jobs report, have been trading at historically expensive valuations, fueled by ultra-low borrowing costs.

Investors took a pessimistic view of Europe as finance ministers met to discuss a cash-for-reforms deal for Greece, even though the country said it made a payment of about 750 million euros ($836 million) to the IMF.

Given the level of investor angst, today's sell-off was modest.

They also focused on China, which cut interest rates Sunday for the third time in six months in a bid to stoke a sputtering economy that is headed for its worst year in a quarter of a century.

"Given the level of investor angst, today's sell-off was modest," said Michael Farr, president of Farr, Miller & Washington in Washington, D.C.

All of the 10 major S&P 500 sectors were down, led by the energy index, which fell 2.05 percent.

The Dow Jones industrial average (^DJI) fell 85.94 points, or 0.5 percent, to end at 18,105.17. The Standard & Poor's 500 index (^GSPC) lost 10.77 points, or 0.5 percent, to 2,105.33 and the Nasdaq composite (^IXIC) dropped 9.98 points, or 0.2 percent, to 4,993.57.

April payroll data out last Friday indicated U.S. economic growth was picking up, but not enough to raise concerns about an earlier-than-expected interest-rate rise by the Federal Reserve.

"People are still concerned about whether we will have a liftoff in the fall or not. That's the big driver," said Michael Matousek, head trader at U.S. Global Investors in San Antonio.

U.S. light crude fell on signs that U.S. shale oil production was recovering.

Market Movers

Apple (AAPL) was the biggest drag on the Nasdaq, with its shares ending down 1.02 percent. Smartphone shipments in China shrank for the first time in six years, according to market research firm IDC.

The S&P 500 is trading at 17 times expected earnings, compared with its 10-year median average of 15, according to Thomson Reuters StarMine data. It is 0.58 percent short of its all-time record high close set in late April.

Rosetta Resources (ROSE) soared 27.19 percent after Noble Energy (NBL) said it would buy the company for about $2 billion. Noble ended down 6.21 percent.

Declining issues outnumbered advancing ones on the NYSE by 1,983 to 1,071, for a 1.85-to-1 ratio on the downside; on the Nasdaq, 1,442 issues rose and 1,303 fell for a 1.11-to-1 ratio favoring advancers.

The benchmark S&P 500 posted 21 new 52-week highs and 3 new lows; the Nasdaq composite recorded 66 new highs and 40 new lows.

About 5.6 billion shares changed hands on U.S. exchanges, below the 6.8 billion daily average for the last five sessions, according to BATS Global Markets.

What to watch Tuesday:
  • The Labor Department releases job openings and labor turnover survey for March at 10 a.m. Eastern time.
  • The Treasury Department releases the federal budget for April at 2 p.m.
Earnings Season
These selected companies are scheduled to release quarterly financial results:
  • GoDaddy.com (GDDY)
  • McKesson (MCK)
  • Zillow (Z)

 

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You Can Put a Price on Love: Is Your Relationship Too Costly?

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C25PWT Young couple calculating their domestic bills Man money paperwork Young; couple; calculating; domestic; bills; adult; att
Alamy
By Geoff Williams

Anne Violette admits she has dated some "deadbeats" in her time. In particular, there were two boyfriends who lived with her but didn't pull their weight, quitting jobs and refusing to find other options, leading to Splitsville. With one, Violette meticulously tracked shared household expenses for six months. Her findings were infuriating: While she'd contributed $64,000, her live-in beau had only fronted $7,000.

"I must have a sign on my head that says 'sucker,'" says Violette, a ghostwriter and copywriter from Pearland, Texas, whose book "Men Are Like Wine," draws upon her sour -- and at times expensive -- relationship experiences.

Some relationships really do cost too much. And we're not talking about the high cost of drama or stress or the awkwardness of being a mismatch -- all of which can be potential deal-breakers -- but the cold, hard cash poured into relationships without equivalency or much happiness in return. If this sounds familiar, but you're reluctant to break up because, well, you're still in love, ask yourself these questions.

Have You Both Talked About Your Feelings?

It's one thing to throw out hints that you'd like your significant other to occasionally spring for dinner or at least say thanks for you always being the one to open your wallet, but your partner isn't a mind reader. You may also have been in this pattern for so long that your partner thinks everything is great and simply has no idea that you're a smoldering caldron of resentment. That's why it's important to have an honest discussion early in the relationship, says Lisa Brateman, a psychotherapist and relationship specialist in New York City.

Dan Nainan, a standup comedian in New York City, was once in a relationship that began with him paying for everything. So he had a very direct conversation with his girlfriend early on. "Two weeks into our relationship, I sat her down, and I said, 'We have been going out for two weeks, and in that two weeks, you have not offered to pay for a single thing. Not for dessert when I buy dinner, or the tip, or a ticket on the subway, anything. Therefore, from now on, if you still want to go out with me, you have to pay for half of everything. If we go to a restaurant, you pay half. If we go on a trip, you buy your own airline ticket and pay for half of the hotel and half of the expenses." She got up, left, immediately returned and said: "OK."

He may have been more direct than many people, but his timing was smart. Brateman suggests talking to your significant other about your money concerns, if you have any, before you're in too deep.

"Bringing it up early is important before the problem becomes monumental," she says. You especially want to have the talk before moving in together, she adds. You could start the conversation by saying something like: "I understand we have different spending styles, but I'm not feeling comfortable with how we've been handling our money," she suggests.

Does Your Partner Have Your Best Interests at Heart?

If your salary is vastly more than your partner's, it's unreasonable to expect her to constantly go halfsies on meals, movies and whatever else you're doing -- especially if you have expensive tastes. And if you're insisting she join you for outings and locales that eclipse her budget, she may be the one reconsidering her decision to be with you.

But Brateman says it isn't really about the money. It's how your partner feels about your money. If she seems to think she's entitled to have you always pay for everything, that's a red flag that she doesn't have your best interest in mind.

"You want a balance," Brateman says. "Maybe you buy the dinners, but she'll make dinner for you sometimes. Or if you go somewhere, will she occasionally buy the drinks or pay for a cab?"

Another sign that your partner doesn't think much of you, Brateman says: "If you ask her where you want to go to dinner, and she picks the most ridiculously expensive restaurant in town. If she's always picking things she would never pay for herself, that's a red flag."

Is Your Partner Trying to Resolve His or Her Money Issues?

This is really the deal-breaker. If your significant other knows that he or she is bringing money problems into the relationship but recognizes that the behavior needs to change, Brateman says that's a good reason to stick together. "Just because somebody has money problems, it doesn't mean that they always will," Brateman says. "If they want to fix things, there's hope. If somebody says, 'This is how I am, and who I always will be, and I don't care how you feel about it,' that match is probably not going to work."

For Violette, she thinks the moral of the story is that when it comes to money, opposites usually don't attract. "Always go out with someone who is at least your equal and has the basic fundamentals, like a car, a job and stable rent or a home of their own," she advises.

Of course, you may be dating someone who doesn't have the basic fundamentals but is a wonderful partner in other ways. Relationships are investments, but they aren't all about money. You're investing in your emotions as well.

But if you're always the majority stakeholder in all of the fundamentals of the relationship, the union is probably costing you too much. Alas, if that's the case, you can't take your significant other to a customer service desk and get your money back, but maybe it's time to make an exchange for something better.

 

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How to Invest in Bonds When Interest Rates Rise

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By Ellen Chang

Investors who are concerned that owning bonds are no longer a safe haven when interest rates could rise later this year have several options.

One tactic is to purchase Treasury and investment grade corporate bonds for their retirement portfolios. Investors should shy away from any bonds whose maturities are longer and favor those which are a shorter term duration such as five-year Treasuries compared to 30-year Treasuries, said Robert Johnson, CEO of The American College of Financial Services in Bryn Mawr, Pennsylvania.

Volatility in the stock market is expected to be part of the norm this year as the Federal Reserve weighs the economic outlook of the U.S. As the Fed decides when it will make its first rate hike since 2006, economists are now leaning toward an increase from nearly zero to occur in September instead of earlier predictions of June. The Fed will continue to monitor the economic progress of the U.S. and progress of the labor market. Fluctuations in the dollar are also affecting the performance of the market.

Keeping fixed income in your 401(k) or IRA in an environment where interest rates rise can be tricky. Johnson, along with co-authors Gerald Jensen of Northern Illinois University and Luis Garcia-Feeijo of Florida Atlantic University, researched returns in the bond market relative to interest rate environments and published their findings in the 2015 book, "Invest With the Fed."

Various Bonds Studied

The research found a pattern in the returns of Treasury bonds, U.S. government agency bonds and investment grade corporate bonds. All three types generated "very similar returns" whether interest rates were rising or falling. The highest returns in these three types of bonds occurred when rates were neither rising nor falling.

"But unlike stocks, the differences in returns weren't very great across the three interest rate environments," Johnson said. "For instance, Treasury bonds returned 7.0 percent, 9.1 percent and 6.3 percent across falling, indeterminate and rising interest rate periods."

As the U.S. economy faces a weaker economic prospect with retail sales posting only a 0.9 percent gain last month and lackluster employment figures, any monetary tightening policies could affect the value of bonds.

The current concern over the Fed tightening its policy along with the "handwringing by Fed policymakers themselves is sound and fury, signifying nothing," said Charles Sizemore, chief investment officer of Sizemore Capital Management in Dallas and a portfolio manager on Covestor, the online investing company.

Skip Bonds for Now

"With the economy losing steam and with the U.S. dollar punishingly high, I don't see the Fed raising rates by more than 0.25 percent to 0.50 percent, and that is if it raises rates at all," he said. "While tightening cycles are always a force to be reckoned with, this one is potentially a much bigger deal. We may not see any concrete action for another year or more."

With the current market environment, owning bonds does not make sense, Sizemore said. "With bond yields across the yield curve so low as to offer virtually no inflation-adjusted return, you really lose nothing by being out of most bonds," he said.

Bond Funds Can Lose Principal Amount

Rising rates create problems for bond fund investors, said John Lewis, president of Gerard Wealth Management, a registered investment adviser in Olathe, Kansas, and a portfolio manager for Covestor. Since bond funds don't have fixed maturity dates, an investor's principal value will decline until rates stabilize or begin declining in this type of market, he said. "I prefer investment-grade individual municipal or corporate bonds," Lewis said.

Diversifying your bonds can be another way to lower your volatility and exposure, said Matt Tuttle, CEO of Tuttle Tactical Management in Stamford, Connecticut. "By any measure that you want to look at, we are close to the top of the market," he said. "Investors need to be prepared. They need to be tactical or rotate among different bond sectors like corporate, high yield or emerging markets based on which one is the strongest."

Long-Term Bonds Can Be the Way to Go

Longer term interest rates have been falling for 16 months now, said Guy LeBas, chief fixed income strategist at Janney Capital Markets in Philadelphia. The markets for longer term rates have "already priced in the coming Fed rate hikes," he said.

While short-term interest rates will probably rise, their forecasts predict that long-term interest rates will remain stable. This environment will make it attractive to buy long-term bonds for retirement portfolios.

"This divergence between short-term and longer term interest rates provides a good prescription for investing in the bond markets," LeBas said. "We recommend short-term high-yield corporate bonds with a maturity of less than five years and intermediate municipal bonds for fully taxable portfolios." Investors should avoid Treasuries with a three- to five-year maturity, corporate and municipal bonds since these bonds "could get impacted by a faster pace of Fed rate hikes more than other types of bonds," he said.

 

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Shoppers Demand More From Their Online Shopping

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"That's all your house is: a place to keep your stuff while you go out and get more stuff!" -- George Carlin

Consuming goods. Buying stuff. In a word: shopping. Myrtle Beach-based advertising agency The Brandon Agency has called it "America's new favorite pastime." (The "new" part is debatable, but "favorite"? Definitely!) And yet, for many of us, there's a big problem with the shopping experience -- and it's the subject of a new poll out of Gallup.

Polling some 12,055 adults nationwide last Christmas shopping season, Gallup discovered that about 1 in 3 (35 percent) of us are doing more of our shopping online than we did a year ago. But the more "stuff" we buy online, the less satisfied we become with the shopping experience.

This is contrary to what you might expect -- that familiarity with a store's website layout, and the ability to save a shipping address and credit card number for later use, would ease future transactions and make for a smoother and smoother shopping experience the more times a shopper visits a site. In fact, the opposite seems true. Familiarity with a website instead breeds contempt!

The Numbers

Comparing two sets of shoppers, one comprised of "retail customers overall" (online and offline) and a second group that shops online more often than the norm, Gallup found that the second group is 1 percentage point less "fully engaged" with a retail brand -- and could be as much as 7 percentage points more "actively disengaged."

This suggests that even if a shopper likes a particular brand in theory, exposure to the online shopping experience is unlikely to make said shopper like the brand any more. But it could well make the shopper like the brand less.

That's how much shoppers dislike the online shopping experience.

What Companies Want

Why is this important to the companies selling the brands to the consumers? In a nutshell, because "fully engaged" shoppers are much more profitable to a company than run-of-the-mill customers. Shoppers who have a "strong, positive emotional attachment to a company" (i.e., are "fully engaged") tend to spend more on, and produce more profits for, that company. (About 24 percent more, according to Gallup.)

That alone argues in favor of a company making an extra effort to engage its customers. But how?

What Shoppers Want

Curiously, the answer isn't that companies should offer to sell more "stuff" to consumers, or even sell them better stuff. Rather, Gallup's research shows that "service is more important to customers than products."

In particular, Gallup notes that the customers it's talked to demand "the same type of personal, convenient service they receive at a storefront" when shopping online. That's not easy to accomplish in a remote shopping transaction, but Gallup says that by offering "live chat sessions with company representatives" and "personalized recommendations" of things to buy, an online store can better mimic the storefront experience.

The demand for the same service both online and offline also suggests companies should make an effort to "align online and storefront channels." Says Gallup, "retailers must deliver a seamless online and in-person experience." Otherwise, if a company offers one line of products online, for example, and another in store (or one level of service online, and something better in store), a customer might see no reason to patronize the company's online business at all. Customers might instead choose a consistently reliable service such as Amazon.com (AMZN) whenever shopping online.

But what's the No. 1 most important thing a store can do to improve the online shopping experience, and win shopper loyalty online? Gallup data shows that "problem resolution" is absolutely key. It seems that, even 15 years into the new millennium, shoppers are still deathly afraid of buying stuff online only to find they don't like it and have to figure out how to return it (or fear they'll never get it at all).

Turns out, smoothing over delivery problems, and making online shopping as easy and hassle-free as in-store shopping, is perhaps the single most important thing a company can do to ensure its brand value doesn't suffer from the online experience. What's more, says Gallup, "Retailers that perfect their customer service gain a significant competitive advantage over retailers who focus most of their efforts on delivering the latest and greatest products."

Better service, better profits. It's really as simple as that.

While generally in agreement with Gallup's findings, Motley Fool contributor Rich Smith thinks Gallup might have missed a couple of points for improvement. Namely, more free shipping -- and free shipping on product returns, too. He has no position in any stocks mentioned, but The Motley Fool recommends and owns shares of Amazon.com.

What would you suggest online stores should try to do better? Tell us below.

 

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REITs: A Way to Invest in Real Estate, Earn Income, Diversify

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By Donna Fuscaldo

Investing in real estate isn't only for property owners and speculators. Investors get can get the benefit of diversification and earn income by investing in a real estate investment trust, or REIT.

Around since the 1960s, REITs are publicly traded companies that invest in real estate either by purchasing property directly or by buying pools of residential and commercial mortgages. Unlike publicly traded companies, however, REITs are required by law to distribute 90 percent of their earnings to their shareholders in the form of dividend payments.

Investors are craving and hunting for yield anywhere they can find it.

As a result, REITs become particularly attractive in a low-yield environment, where generating income from traditional investments can be challenging, says Robert Goldsborough, an analyst at Morningstar (MORN). "Investors are craving and hunting for yield anywhere they can find it," he says.

High dividend payments also make REITs appealing to older investors, who typically focus on generating income as they approach retirement. According to data from San Francisco investment firm SigFig, the median age for investors who own REITs is 54, and investors older than 55 are nearly three times more likely to own REITs than investors age 35 or younger.

Perhaps even more important than income generation is the role REITs can play in portfolio diversification. Real estate is an asset class that doesn't tend to move in the same direction, at the same time, as stocks and bonds, explains Aaron Gubin, director of research at SigFig. "By including REITs in your portfolio, you can reduce its overall volatility."

Ways to Invest

Investors can buy shares in individual REITs, or invest in a REIT fund, which invests in a basket of publicly traded REIT companies. REITs themselves can invest in mortgages -- which generate income to investors from the interest payments they collect -- or in the equity of actual properties, which generate income from rent. Hybrid REITs invest in both.

Regardless of which type of REIT an investor chooses, they should be careful to choose the appropriate allocation. SigFig's Gubin says the sweet spot is typically around 5 to 6 percent of overall holdings. If an investor's REIT allocation is too low, it will have very little diversifying impact, he explains.

Risks, Tax Implications, Fees

As with almost any asset class, there are risks associated with investing in REITs. Depending on the type of REIT or REIT fund you select, rising interest rates could affect your return, says Goldsborough. Rates remain near historic lows, but many market observers expect that they may rise this year and into next year. That could impact REITs' yields, making them less attractive for income-seeking investors, Goldsborough adds.

REITs' dividend distributions can also cause taxable events, unless they are held in a tax-advantaged account like an IRA or 401(k). "Because they have high relative dividend payouts, you would prefer not to have REITs in your taxable accounts," says Gubin.

Just like with any fund investment, investors should be aware of fees. If an investor takes a passive approach by purchasing a REIT ETF, Goldsborough recommends choosing one that tracks a well-constructed index. "You want to choose a REIT with very low fees and a significant amount of diversification," he says.

Donna Fuscaldo is a contributing writer at SigFig. Nearly a million people use SigFig to track, improve and manage over $300 billion in investments.

 

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How to Gracefully Cope With Aging

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Getty ImagesA positive attitude can help you to better deal with the challenges of aging.
By Dave Bernard

I am beginning to understand the value of having a good attitude as I continue my retirement journey. There are many things beyond my control, but how I choose to engage and deal with each day is pretty much up to me. My days go better when I make an effort to assume an optimistic outlook from the start. I find it easier to sustain a general feeling of happiness when I start on a positive note. It is much more difficult to reach a happy place when I start with a negative attitude.

I went in for an eye checkup last week, and my vision isn't getting any better. I commented to my optometrist how everything about me is getting older, and his response was just what I needed to hear. "Your eyes are getting more mature," he claimed. That's certainly a positive way to look at it. Rather than getting older, I am getting more mature. I will never see as well as I did at 20. But my attitude and perspective on life's challenges can allow me to better enjoy what is to come.

As the years add on, I worry about losing my physical abilities. It's not as easy to do the little things I so recently took for granted. Sometimes it's a struggle to bend to pick up a nickel, climb a ladder to hang Christmas lights, run until I am tired of running, not exhausted by running, or lift a box without concern over what it weighs. Now each decision needs to be carefully evaluated. I can still pick up a lost coin, but I now realize anything less than a quarter isn't worth the effort. As a parent, I have access to numerous adult children to assist me with projects including hanging and box moving. And I no longer necessarily have to run for exercise. A brisk walk provides enough exercise. My activities may require a bit of modification, but I am discovering ways to adapt.

My life experiences have made me more tolerant. The little things that used to aggravate me are losing their impact. If I find myself stuck in traffic, I am learning to accept the fact I can only go as fast as the car in front of me. Why get wound up over something I have absolutely no control over? I am learning to give people the benefit of the doubt and trying to be less judgmental. It isn't easy, but I am starting to pace myself. I no longer automatically jump into turbo mode when taking on a new project. Slow and steady allows me to enjoy the journey and appreciate the effort spent without throwing anything out of whack in the process.

When I was young I often found small children rather annoying, especially at a nice restaurant when they proceeded to fill the otherwise peaceful atmosphere with unhappy cries. Why couldn't the parents control their kids? Once I survived raising my own children I became a bit more tolerant. And now that I am edging closer to grandparent status, I am a different person. I appreciate the heroic effort it takes to raise kids, a truly 24/7 job. And I am learning to vicariously enjoy the world viewed for the first time through the eyes of a child. Soon enough they will begin their own maturation process heading down a path from which they cannot return. Why not share their joy in the moment?

Best of all, I am learning that life doesn't have to continue at an ever accelerating pace. Despite what four whirlwind decades of living in the San Francisco Bay Area might suggest, not everything has to happen in maximum overdrive. I can slow down to a reasonable pace and catch my breath. It is amazing what you see and experience when you take time to be aware of all that is around you.

Dave Bernard blogs at Retirement-Only The Beginning.

 

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Verizon to Buy AOL in Push for Digital Content

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The AOL Homepage Ahead Of Earnings Figures
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By Jennifer Saba, Devika Krishna Kumar and Abhirup Roy

Verizon Communications (VZ) said Tuesday it will buy AOL (AOL) for $4.4 billion, turning the biggest U.S. wireless carrier into a leading provider of content and video for the Web and mobile phones.

The $50-a-share offer represents a premium of 17.4 percent to AOL's Monday close. AOL and its properties, including the Huffington Post, TechCrunch and Engadget websites, would become a Verizon subsidiary, with AOL Chief Executive Officer Tim Armstrong staying in his role.

Armstrong, who has been trying to build up AOL's expertise in mobile advertising technology, sees mobile representing 80 percent of media consumption in coming years.

"If we are going to lead, we need to lead in mobile," Armstrong said in a memo to employees Tuesday.

This acquisition is aimed at enabling Verizon to maximize its revenues from mobile video.

Verizon has over 100 million mobile consumers, content deals with the likes of the National Football League and "a meaningful strategy" in mobile video, Armstrong said.

For Wall Street, the deal is about the technology. "AOL's ad-tech offering has been driving its growth for some time now as the Internet business has faded," Dan Ridsdale, an analyst at Edison Investment Research, wrote in a note to clients. "This acquisition is aimed at enabling Verizon to maximize its revenues from mobile video."

Verizon, which last year bought the assets of OnCue, Intel's (INTC) Internet-based TV platform, has been building a video streaming product as it faces the wide availability of voice and data services.

Verizon's $50-a-share offer represents a premium of 17.4 percent to AOL's Monday close. AOL shares jumped 18.4 percent to $50.41, while Dow Jones industrials component Verizon slipped 0.4 percent to $49.63.

Armstrong told Reuters talks between Verizon and AOL started last year. He met with Verizon CEO Lowell McAdam last July about how to further their partnership.

Armstrong said he has a multiyear commitment to stay with Verizon and run AOL as a separate division but declined to give further details.

'Getting a Hodgepodge'

The proposed acquisition was the latest example of how established telecommunications companies look to make deals to jump-start growth as mobile phone expansion slows. AT&T (T), the second biggest U.S. telecom company, is also betting on video, agreeing to buy No. 1 U.S. satellite TV provider DirecTV (DTV), for $48.5 billion. The deal is pending.

Advertising has become a major revenue stream for AOL, helped by the acquisition of automated advertising platforms such as Adap.tv.

Demand for the real-time bidding platform that helps advertisers place video and display ads helped AOL beat sales and profit forecasts in its most recent quarterly report.

For AOL, the deal caps a years-long period of reinvention into one of the most successful advertising technology companies.

Disastrous Tie-Up

At the peak of the dot-com boom, AOL, whose dial-up Internet service once counted tens of millions of subscribers, used its elevated stock price to buy movie, television and publishing conglomerate Time Warner (TWX) in one of the most disastrous corporate mergers in history.

After being spun off from Time Warner in 2009, AOL shares returned to the New York Stock Exchange, opening at $27 in November 2009.

The $50-a-share bid by Verizon values AOL below its high of $53.28 in January 2014. Shares have fallen in three of the last five quarters but have gained as much as 56 percent from last year's low of $32.31, leading some analysts to question whether Verizon was overpaying.

"There's the question of whether there is truly an advantage in owning all of this themselves," said Craig Moffett of media research firm MoffettNathanson. "They are paying a premium to own rather than rent, and they are getting a hodgepodge of ancillary assets that may be as much a distraction as a benefit."

AOL has held talks to spin off Huffington Post as part of the Verizon deal, potentially valuing the news and commentary website at $1 billion, Re/code, the technology news website, reported Tuesday, citing sources.

Verizon was showing signs of desperation as its core wireless business comes under pressure, Macquarie Capital analysts wrote in a note. It will need to buy telecommunications spectrum aggressively to accommodate rising mobile video traffic.

"We feel that Verizon paid a hefty price ... for what we believe to be an unproven programmatic ad-tech platform in the nascent video ad-tech space," they said.

Verizon said it expects the deal, which includes about $300 million in AOL debt, to close this summer.

(Note: AOL is publisher of this website.)

 

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College Students Fail When It Comes to Financial Literacy

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By Chris Metinko

NEW YORK -- If learning how to save and master financial literacy is something people should learn young -- the future may be bleak.

A study looking at what first-year college students know about finances shows most can only answer about a third of general financial questions correctly. The questions -- ranging from topics like the right amount of money to set aside in case of a financial emergency, to how long a late payment remains on your credit history -- were part of the "Money Matters on Campus" survey sponsored by education finance site Higher One and education technology site EverFi.

"The results of the survey are disappointing, but not unexpected," said Tom Arnold, professor of finance at the University of Richmond. "Most money habits come from experience and example. Incoming freshman are not very experienced and have more than likely relied on their parents for financial guidance and financial support."

"Consequently, prior to college, many students do not have to budget their money nor be concerned about paying off debt," he added.

While not knowing the correct answers to questions is one thing, actual risky financial behaviors are much worse. The research showed 12 percent of first-year students at four-year schools do not check their account balances because they are "too nervous," and only 39 percent use a budget.

The study also found while students were more financially literate if they took financial literacy courses in high school, those that had checking accounts were even more so. Also, students attending two-year schools proved to be slightly more knowledgeable -- possibly because they may have a higher degree of personal financial knowledge due to their "age, financial experience and general lifestyle differences," the study suggested.

Kelly Gardner, a 21-year-old senior at San Diego State, said experiences have contributed most to her financial development. Ten months ago she started work at a public relations firm, which has given her even greater insight into the financial habits and missteps of college students.

"I am not the standard when it comes to college students and financial habits," she said. "I began investing my money when I was a senior in high school and have become knowledgeable about investing through my own trials and errors, and now through the experience of my clients."

She added her ability to manage finances has come specifically from the advice of her parents and clients.

"Unfortunately, I cannot credit my public school education for any of my financial knowledge and skills," Gardner said.

The lack of schooling around money and finances doesn't come as a surprise to Gary Herman, president of the non-profit ConsolidatedCredit.org.

"It's amazing that our educational system prepares young adults for math, reading, science, sex education and more, but it doesn't prepare them for the one thing that they'll be forced to make life-changing decisions on -- money," Herman said.

He added the burden of educating kids on finances falls on the parents.

"It all starts at home," Herman said. "And that's OK, because there are tons of free resources to help parents." He added that the Internet has made it easier than ever to find detailed information on budgeting for college students, smart spending tips and college loans.

"It's just a matter of placing a high priority on financial education and respecting money," Herman said. "Parents need to have 'the talk' about finances. Most talk with their kids about the birds and the bees, and let's face it, that's uncomfortable. But when it comes to money, mostly silence."

While everyone agrees good financial habits are important, Arnold said educating kids about finance is just like having a proper diet -- it is just too easy to ignore it until it becomes a problem.

"Given the general lack of savings for retirement and for unexpected needs by many households, college students do not really have very good examples to follow either," he added.

-Written by Chris Metinko for MainStreet.

 

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Verizon, Sprint to Pay Millions to Settle 'Cramming' Suits

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By Alina Selyukh

WASHINGTON -- Verizon Communications (VZ) will pay $90 million and Sprint (S) will pay $68 million to settle U.S. government probes into unauthorized charges tacked onto their customers' phone bills, federal agencies said Tuesday.

The settlements are the latest in the government's push against the practice known as cramming, in which mobile carriers bill customers for services they never requested such as daily horoscopes or trivia.

The Federal Communications Commission, the Consumer Financial Protection Bureau and attorneys general from across the country investigated the charges and negotiated settlements with Verizon and Sprint, the No. 1 and No. 3 wireless providers.

"Well before any government action, Verizon Wireless stopped allowing companies to place charges for premium text message services on customers' bills," Verizon spokesman Ed McFadden said in a statement.

Sprint spokesman Jeff Silva said the company had already refunded customers tens of millions of dollars before the government's investigation.

The companies joined national carriers AT&T (T) and T-Mobile US (TMUS) in agreeing to pay fines and refund consumers for such practices.

Last year, AT&T paid $105 million and T-Mobile paid $90 million to settle a similar probe by the FCC, the Federal Trade Commission and state attorneys general.

The regulators said Tuesday that the companies had charged consumers for subscriptions to third-party products such as daily humor or celebrity gossip services, typically charging consumers $9.99 a month and taking a cut of up to 40 percent.

Consumers who called to complain were often refused a refund, the FCC said, even though government investigators couldn't find proof the services had been requested.

 

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La-Z-Boy Recalls 2,600 Recliners, Saying They Can Tip Over

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cpsc.govOne of several La-Z-Boy recliner models being recalled, as shown on the Consumer Product Safety Commission website.
NEW YORK -- La-Z-Boy (LZB) has recalled about 2,600 pieces of power reclining furniture because they can tip forward, posing a risk of a fall.

The furniture company said it has received five reports from dealers of furniture tipping forward when the chair was in a reclined position. No injuries have been reported. The chairs were sold from January 2015 through March 2015. The furniture includes loveseats and recliners.

Details on the specific items involved in the recall can be found on La-Z-Boy's website under recalls. The series and style numbers are printed on a white label stapled to the front rail behind the leg rest or the underside of the leg rest.

La-Z-Boy can be contacted 855-592-9087 from 9 a.m. to 5 p.m. Monday through Friday or online at www.la-z-boy.com.

 

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3 Things to Do Before Calling a Repairman -- Savings Experiment

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3 Things to Do Before Calling a Repairman
Having a broken appliance fixed can be costly, but did you know that a lot of common problems can be cheaply and easily repaired on your own? Here are a few simple fixes you should try before dropping big bucks on a service call.

If your dryer isn't drying like it used to, first thing to do is check your lint filter. Even if the filter looks clean, it could be covered by a nearly invisible film caused by dryer sheets. This film reduces airflow and forces the thermostat to shut off the heat before your clothes are fully dry.

To test your filter, pour some water into it. If the filter holds water, it needs to be cleaned. To do this, simply run the filter under hot water and scrub with a stiff kitchen brush and some laundry detergent. And don't forget to check the exterior dryer vent, too. Louver-door vent covers in particular are notorious for lint buildup.

Next, if your refrigerator stops cooling effectively or conks out entirely, check the condenser coils. Some units have these located on the back, while others are hidden behind a panel at the bottom. These coils are part of the ventilation system, and they tend to draw in a lot of dust and pet hair. All this buildup can cause your compressor to overheat and switch off. It's a really common problem, but luckily, it's easy to fix.

First, unplug your fridge. Then, get a coil-cleaning brush, which you can buy at home centers for around $5. Take the brush and scrub in and out between the coils to remove caked on dust, and simply vacuum up what's left. As an added bonus, clean coils will cool your fridge more efficiently, saving you money on your utility bill.

Lastly, if a burner on your stove won't turn on, the problem might be the food you spilled last week. Use a toothbrush to clean off any residue stuck on the igniter, which is that little ceramic nub on the stovetop or under the strike plate. Be sure that the strike plate itself is seated properly on the burner, too.

If the igniter sparks but there's still no flame, there may be a clog in one or more of the burner's holes. If that's the case, clean out the holes with a safety pin or a needle. Just don't use a toothpick since the tip can break off and become a fire hazard.

When it comes to appliances, a minor breakdown doesn't always mean major repairs. Give these tips a try and you'll keep your household running, without the hefty service bills.

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AT&T-DirecTV Deal Unlikely to Be Blocked by Regulators

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Wall Street AT&T DirecTV
APTraders gather at the post that handles AT&T on the floor of the New York Stock Exchange on May 19, 2014, the day after AT&T announced it intended to buy DirecTV for $48.5 billion.
By Anya George Tharakan, Subrat Patnaik and Alina Selyukh

AT&T's $49-billion bid for DirecTV is unlikely to be blocked by U.S. authorities, The Wall Street Journal reported, citing people familiar with the matter.

Regulators at both the Justice Department and the Federal Communications Commission are nearing a decision that is poised to clear the deal with some conditions, people familiar with the review previously told Reuters.

AT&T hasn't yet met with FCC reviewers to hash out the details of those conditions, but the negotiations were expected to begin in a matter of days, according to sources familiar with the matter.

One of the possible conditions AT&T could agree to involves how the company deals with streaming video, the Journal reported.

AT&T declined to comment and DirecTV wasn't immediately available for comment.

AT&T, the second-largest U.S. wireless provider, in May last year offered to buy DirecTV, the biggest satellite TV provider, to create the largest U.S. pay TV company.

The deal highlights AT&T's pressing need for fresh avenues of growth beyond the maturing U.S. cellular business, which has become increasingly competitive.

AT&T's (T) shares were up 1.1 percent at $33.86 in afternoon trading, while DirecTV's (DTV) rose 1.8 percent to $90.98.

 

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GM Recalls 523,000 Vehicles; Chrysler Expands Jeep Recall

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General Motors Recalls
Paul Sakuma/APGeneral Motors is recalling nearly 470,000 Chevrolet Malibu midsize cars from the 2011 and 2012 model years to fix potentially weakened steel cables that link the front seat belts to the vehicles.
By TOM KRISHER

DETROIT -- General Motors is recalling nearly 470,000 Chevrolet Malibu midsize cars to fix potentially weakened steel cables that link the front seat belts to the vehicles.

The company also is recalling about 53,000 Chevy Colorado and GMC Canyon midsize pickup trucks to fix seat frame hooks that weren't installed properly during assembly.

The Malibu recall covers cars from the 2011 and 2012 model years mainly in the U.S., Canada and Mexico. The cables can weaken and break as people move in the seats, causing the seat belts to fail.

GM (GM) says it knows of no crashes but one minor injury due to the problem. There have been 36 warranty claims.

Dealers will replace a mounting bracket and inspect the cable and replace it if needed.

The pickup recall covers 2015 models in the U.S. and Canada. Dealers will inspect seats for proper installation and make sure the seat frame hooks are properly attached to the body.

GM says it knows of no crashes or injuries because of the problem.

Expanded Jeep Recall

Separately, Fiat Chrysler (FCAU) said it was adding almost 89,000 Jeep Cherokees to a recall to fix software that can cause side air bags to inflate without a crash.

The addition brings the total number of 2014 and 2015 Cherokees covered by the February recall to nearly 337,000. All but 52,000 are in the U.S., Canada or Mexico.

Dealers will upgrade software that controls side curtain and seat-mounted side air bags. Fiat Chrysler says there have been a small number of inadvertent air bag deployments, mostly in off-road conditions. They happened when the Jeeps' angle of operation changed, causing the system to sense a possible rollover and inflate the air bags.

The company says dealers will recalibrate the threshold that sets off the air bags. It knows of no crashes or injuries.

 

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