MM Money: December 2004 Archives

December 29, 2004

Sallie Mae Still Pursuing Pa. Agency

SLM Corp., the educational lender known as Sallie Mae, said Tuesday it's continuing to pursue a takeover of a Pennsylvania funding agency that strongly rejected an earlier overture. "We do not retract our offer but rather seek a fairer hearing of its details," said Albert Lord, chief executive of Reston, Va.-based Sallie Mae (SLM: news, chart, profile). The company's $1 billion offer to buy the Pennsylvania Higher Education Assistance Agency was emphatically shot down on ... (full story) Continue reading "Sallie Mae Still Pursuing Pa. Agency"

Posted by mm at December 29, 2004 12:15 PM | Permanent Link | Comments (0)

Fannie Pay Packages Draw Scrutiny

Add another chapter to the federal government's investigation into accounting problems at mortgage giant Fannie Mae: the pay packages of two ousted executives. Franklin Raines, Fannie's outgoing chief executive, is entitled to receive stock options worth about $5.5 million and perhaps more options upon retirement, the company (FNM: news, chart, profile) said Monday. But the Office of Federal Housing Enterprise Oversight, the agency overseeing Fannie's operations, says that the company shouldn't pay any termination benefits ... (full story) Continue reading "Fannie Pay Packages Draw Scrutiny"

Posted by mm at December 29, 2004 12:14 PM | Permanent Link | Comments (0)

The Other Retirement Crisis

While talk of privatizing Social Security is currently making headlines, another retirement crisis is looming: The Pension Benefit Guaranty Corp. could be facing bankruptcy. That means the 44 million Americans who rely on the PBGC for their pension checks are in jeopardy of losing their incomes. The government agency steps in to pay retirees when a company goes bankrupt, or otherwise cannot afford on its own to pay pensions. It doesn't receive tax dollars, but ... (full story) Continue reading "The Other Retirement Crisis"

Posted by mm at December 29, 2004 12:12 PM | Permanent Link | Comments (0)

EBay Poised To Win Five-Year Net Crown

With 2004 nearly a memory and the fifth anniversary of the bursting of the Internet bubble less than a quarter away, it's a good time to look back and see which of the former Net bellwethers has had the most staying power. Need a hint? Think auctions. As the world waited in December 1999 for the dreaded turn of the calendar to Y2K, Internet investors were busy with a more pleasant task -- deciding which ... (full story) Continue reading "EBay Poised To Win Five-Year Net Crown"

Posted by mm at December 29, 2004 12:11 PM | Permanent Link | Comments (0)

How To Handle Charity Solicitations

Solicitations from charities come in many forms - e-mail, letters, phone calls or a person at your door. Here are some tips to sort out the requests and ensure your donation goes to a legitimate charity - not a scam artist. Telephone solicitations Don't pledge a donation over the phone, advises the Federal Trade Commission. Instead, ask that the charity mail information to you about its programs and practices. If the telephone solicitor claims that ... (full story) Continue reading "How To Handle Charity Solicitations"

Posted by mm at December 29, 2004 12:09 PM | Permanent Link | Comments (0)

Gold Closes More Than $8 Lower

Gold futures lost more than $8 an ounce Wednesday, pressured by some strength in the dollar, an improving economic growth outlook, and easing investment concerns linked to the tsunami disaster in Asia. Gold for February delivery closed at $437 an ounce on the New York Mercantile Exchange, down $8.30, or 1.9 percent for the session. It's the contract's lowest close since Dec. 10 and biggest one-day decline since Dec. 8, when prices closed $15 lower ... (full story) Continue reading "Gold Closes More Than $8 Lower"

Posted by mm at December 29, 2004 12:07 PM | Permanent Link | Comments (0)

Blockbuster Pressures Hollywood Ent.

Blockbuster Inc. said Tuesday that it plans to launch its cash tender offer to acquire Hollywood Entertainment Corp. by mid-January unless it's able to secure "substantial cooperation" from Hollywood's board. Blockbuster (BBI: news, chart, profile) said it's looking for cooperation that would be likely to lead to an acquisition agreement between the parties. The current offer from Blockbuster, which values Hollywood shares at $11.50 each in cash, is worth roughly $1 billion, including debt assumption ... (full story) Continue reading "Blockbuster Pressures Hollywood Ent."

Posted by mm at December 29, 2004 12:06 PM | Permanent Link | Comments (0)

U.S. Sales Of Existing Homes Hit Record

Sales of U.S. existing homes rose 2.7 percent in November to a record seasonally adjusted annual rate of 6.94 million, the National Association of Realtors said Wednesday. The median sales price of an existing home rose 10.4 percent on a year-over-year basis to $188,200, marking the highest price appreciation seen in 17 years. Read more. November's sales outpaced the 6.68 million-unit pace that Wall Street economists had been anticipating. See Economic Calendar. Meanwhile, the NAR ... (full story) Continue reading "U.S. Sales Of Existing Homes Hit Record"

Posted by mm at December 29, 2004 12:05 PM | Permanent Link | Comments (0)

The Most Wonderful Time Of The Year

The pie may be bigger on Wall Street this year, but more bankers have been invited to the table for the doling out of bonuses. While funds set aside for bonuses have increased 8 percent over 2003, hiring has grown at least that fast, meaning that individual payouts have dipped in 2004, according to estimates by the Securities Industry Association. See story about staffing increases on Wall Street. "There's been a lot of talk among ... (full story) Continue reading "The Most Wonderful Time Of The Year"

Posted by mm at December 29, 2004 12:04 PM | Permanent Link | Comments (0)

Sallie Mae Completes Privatization

Educational lender SLM Corp., commonly known as Sallie Mae, completed its makeover from a government-sponsored enterprise into a private company Wednesday. Reston, Va.-based Sallie Mae (SLM: news, chart, profile) owns or manages student loans for more than 7 million borrowers, and is the nation's premier student lender. "We're very happy and very proud" to complete the privatization process, Chief Executive Albert L. Lord told reporters at a signing ceremony at the Treasury Department. Congress chartered ... (full story) Continue reading "Sallie Mae Completes Privatization"

Posted by mm at December 29, 2004 12:02 PM | Permanent Link | Comments (0)

Be Careful When Donating To Charity

'Tis the season for charitable giving so make sure you aren't taken in by less-than-charitable scammers. At this time of year, more than any other, you'll be asked to make donations to charitable organizations. These requests might come by mail, or in the form of a telephone call or a solicitor showing up at your doorstep. While many of these organizations are legitimate, there are also numerous scam artists who try to divert the efforts ... (full story) Continue reading "Be Careful When Donating To Charity"

Posted by mm at December 29, 2004 12:01 PM | Permanent Link | Comments (0)

December 28, 2004

Charged Today, Tapped Out Tomorrow?

Retailers probably celebrated Tuesday's news that shoppers used their charge cards for a record number of transactions over the holidays. Industry observers, however, were divided about whether there really is a reason to cheer. Visa, the No. 1 payment card issuer, said spending on its Visa branded cards last week spiked about 32 percent, while MasterCard boasted the highest number of transactions ever recorded in its history for the crucial November-December holiday shopping season. Retail ... (full story) Continue reading "Charged Today, Tapped Out Tomorrow?"

Posted by mm at December 28, 2004 07:12 PM | Permanent Link | Comments (0)

Government To Take A Look At Airlines

U.S. airlines will face a government review of customer-service commitments made five years ago in wake of a Christmas weekend that saw thousands of travelers' holiday plans snarled, the Transportation Department's top auditor said Monday. Travelers on US Airways and Delta Air Lines' regional carrier Comair were stranded or separated from their luggage over the weekend. Carriers blamed bad weather, computer problems and unexpected staff shortages. Inspector General Kenneth Mead unveiled his planned review of ... (full story) Continue reading "Government To Take A Look At Airlines"

Posted by mm at December 28, 2004 07:09 PM | Permanent Link | Comments (0)

Report: Bush To Delay Tax Overhaul

A major overhaul of the tax code will be pushed aside at least another year as the Bush administration grapples with the president's pledge to overhaul Social Security and a budget plan that demands difficult cuts to non-defense spending, a newspaper report said Tuesday. Just weeks ago, tax reform was identified as a major Bush administration goal by the end of 2005. President Bush will soon name a panel to examine tax policy, but he ... (full story) Continue reading "Report: Bush To Delay Tax Overhaul"

Posted by mm at December 28, 2004 07:08 PM | Permanent Link | Comments (0)

December 27, 2004

Unmatched Scope Of Disaster Delays Damage Estimates

he destruction wrought by the weekend's tsunami in the Indian Ocean comes on top of what already ranked as the most expensive year to date for insurance companies, but insurers say the absence of experience with earthquake-generated waves in the region will delay precise damage estimates. The weekend's disaster, unprecedented in its geographical scale with more than 23,000 estimated dead across at least 10 countries, underlines how natural catastrophes are still a far greater threat ... (full story) Continue reading "Unmatched Scope Of Disaster Delays Damage Estimates"

Posted by mm at December 27, 2004 08:48 PM | Permanent Link | Comments (0)

Fannie Details Its Payout Plan For Ousted CEO

Fannie Mae officials reported details of the lucrative benefits they plan to pay two departing executives, but the company's federal regulator is reviewing the packages and could seek to block them. The potential disagreement threatens to prolong a dispute with the Office of Federal Housing Enterprise Oversight that Fannie Mae wants to put behind it as the company attempts to recover from the disclosure of pervasive accounting misdeeds. It also gives more ammunition to critics ... (full story) Continue reading "Fannie Details Its Payout Plan For Ousted CEO"

Posted by mm at December 27, 2004 08:44 PM | Permanent Link | Comments (0)

Dental Double Standards

Among the nation's reservists, a common reason for not being sent to Iraq has been poor teeth. The military offers dental insurance to reservists and members of the National Guard, but for those who opt for it, the benefit of $1,200 a year does not cover many procedures and still requires reservists to pay as much as half the cost of the care. The reservists are hardly alone. With dental costs rising and employers cutting ... (full story) Continue reading "Dental Double Standards"

Posted by mm at December 27, 2004 08:29 PM | Permanent Link | Comments (0)

Bond Plays To Keep The IRS Away

There's a dark side to the annual year-end rally: stock market gains may prompt the IRS to ask for more money come April 15. The best way to stave off such indebtedness lies in the bond markets. "Investors ought to sell older or longer-term bonds to capture losses" to offset capital gains taxes," recommended Rick Kaplan, a portfolio manager at Legacy Asset Management in Houston. While fixed income logic may sound like a riddle to ... (full story) Continue reading "Bond Plays To Keep The IRS Away"

Posted by mm at December 27, 2004 08:13 PM | Permanent Link | Comments (0)

Be Prepared When Returning Gifts

Here are some tips to make returning holidays gifts easier: Make returns as soon after the holidays as possible. Yes, the lines may be almost as long as -- or longer than -- the ones during the pre-holiday shopping season. But a speedy return can ensure you get your refund before the New Year's sales go into effect. Check for fees and restrictions. More retailers are charging restocking fees for large or big-ticket items such ... (full story) Continue reading "Be Prepared When Returning Gifts"

Posted by mm at December 27, 2004 08:12 PM | Permanent Link | Comments (0)

Banks Boost Customer Incentives, But Rates on Savings Remain Low

Managing your financial accounts can be particularly taxing at year-end. In the fourth installment of a five-part series, Taking Account, we examine the trends in consumer banking, from cash incentives for opening a new account to fees for using a debit-card PIN. What's Going On Banks are aggressively competing on the consumer side of their businesses, and many have stepped up incentives to lure new customers, offering come-ons ranging from free checking to flat-screen TVs ... (full story) Continue reading "Banks Boost Customer Incentives, But Rates on Savings Remain Low"

Posted by mm at December 27, 2004 12:36 PM | Permanent Link | Comments (0)

Market Forces Line Up to Clash in '05

As another year melts into a new one, the crystal balls are out and prognosticators are peeking at 2005, trying to divine the future for stocks and bonds. Clouding the view: The year arrives with a variety of confounding forces at play. For one thing, the dollar is sinking against every major world currency as the U.S. government and American consumers cope with an unshakable addiction to debt. If the dollar trend continues much longer ... (full story) Continue reading "Market Forces Line Up to Clash in '05"

Posted by mm at December 27, 2004 12:34 PM | Permanent Link | Comments (0)

Ten Things to Ask Before Buying a Fund

Slow down. Many investors are quick to add a mutual fund to their holdings based on an adviser's recommendation or a thumbs-up from a friend or investment publication. But before grabbing a new fund, investors should take time to investigate and consider. For most people, "the big problem is they buy funds at the wrong time," only after a type of fund has run up in price and is likely to be less impressive going ... (full story) Continue reading "Ten Things to Ask Before Buying a Fund"

Posted by mm at December 27, 2004 12:33 PM | Permanent Link | Comments (0)

Frequent-Flier Cards Delay Fee Collection

Hefty annual fees have led thrifty consumers to steer clear of credit cards that dole out frequent-flier miles. But a few airline-sponsored cards -- which usually charge annual fees of $30 to $100 right off the bat -- are offering to hold off on collecting those fees from new applicants for six months to a year. American Airlines' Citi Gold AAdvantage World Master Card, issued by Citibank, recently advertised on its Web site that it ... (full story) Continue reading "Frequent-Flier Cards Delay Fee Collection"

Posted by mm at December 27, 2004 12:31 PM | Permanent Link | Comments (0)

Dollar's Pain Turns Out To Be Investors' Gain

Thanks to the plummeting dollar, assets of foreign-stock mutual funds are surging. The greenback's nearly 30% tumble over the past three years against a basket of major currencies has made foreign goods more expensive for U.S. consumers. But it has been a boon to U.S. investors buying foreign securities, because stock and bond investments denominated in euros, for example, become more valuable -- in dollars -- when the value of the dollar is falling. Money ... (full story) Continue reading "Dollar's Pain Turns Out To Be Investors' Gain"

Posted by mm at December 27, 2004 12:28 PM | Permanent Link | Comments (0)

If You Didn't Save 10% of Your Income This Year, You're Spending Too Much

The wish list is long. But Santa sure isn't footing the bill. I keep hearing about things that apparently I just have to have, like a flat-screen television, and a bigger home, and a commodity fund. But what am I meant to give up? Like everybody else, I have limited money. If I buy a flat-screen television, those are dollars I can't save. If I trade up to a bigger house, that is money that ... (full story) Continue reading "If You Didn't Save 10% of Your Income This Year, You're Spending Too Much"

Posted by mm at December 27, 2004 12:25 PM | Permanent Link | Comments (0)

Model Reveals Social Insecurity

Until recently, few people aside from federal employees and members of the military had ever heard of the Thrift Savings Plan, the government's version of a 401(k) retirement program. Now, it is being touted as a model for the private investment accounts that are central to the Bush administration's proposal to revamp Social Security. "People are not going to be allowed to take their own money for their retirement account and take it to Vegas ... (full story) Continue reading "Model Reveals Social Insecurity"

Posted by mm at December 27, 2004 12:23 PM | Permanent Link | Comments (0)

Airlines' Woes May Be Worse in Coming Year

Passengers who got caught up in the airlines' troubles over Christmas received a glimpse of what may await them in the coming year. The winter storms and computer malfunctions, which snarled airport traffic from Philadelphia to Atlanta, may have been unavoidable, experts say. But the signs of labor unrest that cropped up over the weekend could be a harbinger of things to come in an industry already buffeted by bankruptcies and structural change. With the ... (full story) Continue reading "Airlines' Woes May Be Worse in Coming Year"

Posted by mm at December 27, 2004 11:17 AM | Permanent Link | Comments (0)

$10 for a Plain CD or $32 With the Extras

Shoppers heading into music retailers this holiday season have been confronting the same issue they face at the car dealership: the product now comes either stripped-down or fully loaded. Interscope Records, for example, released three different versions of U2's hit "How to Dismantle an Atomic Bomb." The first, from $10 or less, is the basic 11-track CD. But for roughly $32, you can buy the "collector's edition," which is packaged with a DVD and a ... (full story) Continue reading "$10 for a Plain CD or $32 With the Extras"

Posted by mm at December 27, 2004 11:12 AM | Permanent Link | Comments (0)

Is There Life After Blackjack? Ask MGM

JAMES J. MURREN doesn't play the tables or slot machines. But boy, does he love to gamble. About two weeks ago, Mr. Murren, the president and chief financial officer of MGM Mirage, the $4 billion hotel and gambling behemoth, was holding forth in his office here at the Bellagio, surrounded by antique slot machines and talking about his latest bet the way a high-roller might recount the story of a big hand. The future growth ... (full story) Continue reading "Is There Life After Blackjack? Ask MGM"

Posted by mm at December 27, 2004 11:11 AM | Permanent Link | Comments (0)

Want to Retire Early, It May Take Some Work

LYDIA POSNER was not considering retirement last year when Verizon offered her a buyout package. "I always felt like I would work forever, so this was a very emotional decision for me," said Mrs. Posner, who was employed as a technical writer. "I drove my husband and children crazy for six weeks talking about it, until my kids finally said, 'Mom, you worked for 31 years, you deserve this.' " Mrs. Posner was 56 when ... (full story) Continue reading "Want to Retire Early, It May Take Some Work"

Posted by mm at December 27, 2004 11:08 AM | Permanent Link | Comments (0)

What Length Mortgage Should You Get?

Shopping for a mortgage is like buying a suit: One size does not fit all. When it comes to choosing the length of a mortgage, consumers have more choices than ever. The most popular loans are still the 15- and 30-year fixed mortgages, but few buyers realize that they can also shop fixed-rate loans in other five-year increments that span 10, 20 or 25 years. Or they can adjust the length of their mortgage by ... (full story) Continue reading "What Length Mortgage Should You Get?"

Posted by mm at December 27, 2004 07:35 AM | Permanent Link | Comments (0)

Afraid To eBay? Hire An Online Auction Service

Love those dancing eBay commercials but don't feel Net-savvy enough to sell your unwanted items online? Let an auction drop-off service do it for you. Storefront drop-off centers are springing up from coast to coast. These "brick-to-click" locations are betting that you have neither the time nor the interest to effectively post a strong digital photo and description of your item, answer e-mail inquiries from interested buyers in a timely manner, close the sale, secure ... (full story) Continue reading "Afraid To eBay? Hire An Online Auction Service"

Posted by mm at December 27, 2004 07:25 AM | Permanent Link | Comments (0)

10 Ways To Save Money When Cruising

When it comes to taking a cruise, your spending doesn't end when you've booked the trip. Lots of cruise-related expenses have the potential to bust your budget, from the flight to your embarkation point to drinks on the cruise to shore excursions. So-called add-on expenses can equal or exceed the cost of your cruise if you're not careful. "The trend is for some cruise lines to offer relatively low prices to get people on the ... (full story) Continue reading "10 Ways To Save Money When Cruising"

Posted by mm at December 27, 2004 07:20 AM | Permanent Link | Comments (0)

Rules Change Would Weaken Do-Not-Call List

If you sign up for the Do Not Call registry, you probably think you've put a stop to telemarketing calls. Not necessarily. Businesses can still phone if you are one of their customers, whether you're on the list or not. (The government's definition of a customer is anyone who has made a purchase or done business with a company in the last 18 months or made an application or inquiry within three months.)And your phone ... (full story) Continue reading "Rules Change Would Weaken Do-Not-Call List"

Posted by mm at December 27, 2004 07:15 AM | Permanent Link | Comments (0)

New Nigerian Scam Suckers Online Sellers

Thanks to the power of the Internet, you can post a classified ad in cyberspace and reach a worldwide audience. But if you're selling a pricey item, such as a car, boat or a piano, beware: Con men posing as buyers are reading online ads too, and have they got a deal for you! "If you're selling online, be extremely skeptical of any e-mail offers that come from abroad offering to pay by cashier's check ... (full story) Continue reading "New Nigerian Scam Suckers Online Sellers"

Posted by mm at December 27, 2004 07:08 AM | Permanent Link | Comments (0)

What You Need To Know About Personal Savings Accounts

Following the news on Social Security? Here's why you should: There's a proposal to make you responsible for investing some of your own Social Security dollars. And the outcome could have a big impact on your retirement. Financial experts would like to see more concrete details on how the plan would work, with assurance of safeguards to prevent losses due to bad picks or a down market and plenty of investor education. "The devil's in ... (full story) Continue reading "What You Need To Know About Personal Savings Accounts"

Posted by mm at December 27, 2004 07:04 AM | Permanent Link | Comments (0)

Online Bill Paying: How To Get Started

For some computer users, paying bills online is as natural as using e-mail instead of writing a letter: it's quicker, easier and best of all, free. For others, bill payment represents the final frontier of the Internet: Can I trust a computer program to keep my good credit clean, or should I just stick with writing checks and licking stamps? If you're tired of licking stamps and ready to cross the border into electronic bill ... (full story) Continue reading "Online Bill Paying: How To Get Started"

Posted by mm at December 27, 2004 07:01 AM | Permanent Link | Comments (0)

It Pays To Surf For Auto Loans Online

Looking for a no-fuss auto loan with a rock-bottom interest rate? Hop online. Thanks to a new wave of online offerings, you could land the auto loan you want without setting foot in a bank or credit union or squaring off with the finance manager down at the dealership. And you've got quite a selection of online loans to choose from. Like E-Loan and Capital One Auto Finance (Formerly PeopleFirst), many banks and credit unions ... (full story) Continue reading "It Pays To Surf For Auto Loans Online"

Posted by mm at December 27, 2004 07:00 AM | Permanent Link | Comments (0)

Maneuvering Property-Swap Tax Details

Dear Tax Talk, I have several questions regarding property exchanges and taxes. 1. Do I have to use up all my capital gains in a 1031 exchange or can I take out some cash and pay tax on that much while I leave the rest for 1031 exchange? 2. Which firms hold the cash within the 180 days to reinvest? Any ideas where to get a list of some of these firms? 3. Do I ... (full story) Continue reading "Maneuvering Property-Swap Tax Details"

Posted by mm at December 27, 2004 06:58 AM | Permanent Link | Comments (0)

Largest Used-Car Dealer? You'll Be Surprised!

Quiz time: Who is the nation's largest dealer in used cars? If you say anything other than eBay Motors, you flunk. An adjunct of the phenomenal online auction business that started out selling trinkets among flea-market junkies, eBay Motors has grown to the point that this year it is expected to handle more than $7 billion in transactions. Although only a middleman -- eBay Motors owns no inventory -- it has proven a potent marketplace ... (full story) Continue reading "Largest Used-Car Dealer? You'll Be Surprised!"

Posted by mm at December 27, 2004 06:53 AM | Permanent Link | Comments (0)

Stop Shopping; Give Cash As A Gift

Some people say giving money as a gift is tacky. I say it's no tackier than the red plastic pocketbook my mother-in-law once bestowed on me. Money always fits. And it's never the wrong color. Nobody's face ever falls when they open an envelope and discover the gift of green. The only problem is deciding how much to give. Sales of Hallmark greeting cards that are designed to hold cash, checks or gift cards have ... (full story) Continue reading "Stop Shopping; Give Cash As A Gift"

Posted by mm at December 27, 2004 06:46 AM | Permanent Link | Comments (0)

Perishable Credit Card Numbers Take The Fear Out Of Web Shopping

Outsmart online thieves with virtual credit card numbers. Several major credit card issuers, including Citibank, are offering customers the option of shopping online with virtual, single-use credit card numbers, which expire within one or two months. The aim? To thwart hackers by using a different, random card number every time you shop online. A virtual number is only good on the Web site where you made your purchase. "There's no value to the number to ... (full story) Continue reading "Perishable Credit Card Numbers Take The Fear Out Of Web Shopping"

Posted by mm at December 27, 2004 06:43 AM | Permanent Link | Comments (0)

Cutting Auto Costs With Car Sharing

Some people consider driving a car enjoyable; others look at it as a necessary evil. Either way, it's a big expense, and one that's growing all the time between the initial purchase cost, maintenance, insurance and rising gas prices. In urban centers, there's also the cost of parking, which can be hundreds of dollars a month. But for most people, a car is a must. After all, every once in awhile, you need a car ... (full story) Continue reading "Cutting Auto Costs With Car Sharing"

Posted by mm at December 27, 2004 06:40 AM | Permanent Link | Comments (0)

Corporations Skimp On Issuing Fixed-Rate Notes

The investment-grade corporate-bond market has seen a record level of issuance this year, even beating 2001, as the volume of debt sold reached a five-year high. However, a closer look at the numbers suggests that 2004 was a fairly unremarkable, mediocre year for investment-grade bond issuance, leaving disgruntled investors desperate for certain types of new securities. New bond sales in 2004 totaled nearly $678 billion, topping the previous record of $668 billion in 2001, before ... (full story) Continue reading "Corporations Skimp On Issuing Fixed-Rate Notes"

Posted by mm at December 27, 2004 06:35 AM | Permanent Link | Comments (0)

Yields Shrink On Junk Bonds As Rally Holds

Sometimes "high yield" isn't so high. Junk bonds, also called high-yield bonds, usually sport large yields in order to attract investors leery of possible default. But these days, junk-bond investors are getting some of the puniest yields since the high-yield category was identified in the 1980s as a distinct part of the $4.6 trillion corporate-bond market. A combination of increasing confidence about the economy, still-low interest rates and strengthening corporate balance sheets have sent investors ... (full story) Continue reading "Yields Shrink On Junk Bonds As Rally Holds"

Posted by mm at December 27, 2004 06:33 AM | Permanent Link | Comments (0)

December 26, 2004

The Battle Unjoined -- For Now

The online video-rental wars are starting to get brutal, as Blockbuster redrew the battle line with a sharp price reduction for its direct-mail service. Rival Netflix said Wednesday that it has no plans to change its monthly membership rate in response to the price cut announced by Blockbuster. "We have no intention to change our price," Netflix Chief Executive Reed Hastings told CBS MarketWatch. "Wal-Mart has been at $15 and few cents for several months ... (full story) Continue reading "The Battle Unjoined -- For Now"

Posted by mm at December 26, 2004 09:37 AM | Permanent Link | Comments (0)

Fannie Mae Evaluating Capital Levels

Fannie Mae is turning its focus to shoring up its capital levels Wednesday after two of its top executives left the company under pressure following an accounting scandal. Fannie's (FNM: news, chart, profile) chief regulator said Tuesday night that the Washington-based mortgage finance behemoth is "significantly undercapitalized" and must take steps to beef up its reserves. The announcement by the Office of Federal Housing Enterprise Oversight came moments after Fannie Mae Chairman and CEO Franklin ... (full story) Continue reading "Fannie Mae Evaluating Capital Levels"

Posted by mm at December 26, 2004 09:33 AM | Permanent Link | Comments (0)

Microsoft Will Be 'As Fierce As Ever'

The European Union's antitrust sanctions against Microsoft Corp., upheld by a Luxembourg court Wednesday, could bring hope to smaller competitors but are by no means the end of the story. Analysts and legal experts said Microsoft (MSFT: news, chart, profile) could still appeal the latest decision -- potentially delaying enforcement of the sanctions -- and that it would continue to operate as the same wily operator. Microsoft, although dismissed by the Court of First Instance ... (full story) Continue reading "Microsoft Will Be 'As Fierce As Ever'"

Posted by mm at December 26, 2004 09:29 AM | Permanent Link | Comments (0)

Analysts Mostly Positive On Fannie

Wall Street analysts responded positively Wednesday to the management shakeup at Fannie Mae, saying that the removal of the mortgage giant's top two executives is a step toward better relations with regulators and that it could lift the shares. Fannie Mae shares rose 3 percent to $72.40. Late Tuesday, Fannie Mae (FNM: news, chart, profile) said its board dismissed Franklin Raines as chief executive and Timothy Howard as chief financial officer, in the wake of ... (full story) Continue reading "Analysts Mostly Positive On Fannie"

Posted by mm at December 26, 2004 09:25 AM | Permanent Link | Comments (0)

Going The Distance

People expecting to retire in 10 years are frequently behind the eight ball. Few, say surveys and pundits, have saved enough money to kick back in 2015 and enjoy a life of leisure. But you don't have to be a procrastinator, sprinting to retirement and hoping against hope to have enough money for cruises and grandchildren. To be sure, it won't be easy. Indeed, only half of households with income between $50,000 to $99,000 have ... (full story) Continue reading "Going The Distance"

Posted by mm at December 26, 2004 09:23 AM | Permanent Link | Comments (0)

Last-Minute Shopping Made Easier

Online shopping can be both a blessing and a curse for holiday procrastinators. While many gifts remain available for delivery by Christmas Day, costs for overnight shipping can often run more than the gifts themselves. But a number of online retailers are offering salvation to harried shoppers without charging a small fortune in frankincense and myrrh for delivery. Overstock.com offers most anything consumers could find in local malls and will deliver select items in North ... (full story) Continue reading "Last-Minute Shopping Made Easier"

Posted by mm at December 26, 2004 09:19 AM | Permanent Link | Comments (0)

Good As Goaled

Twelve months ago, I had big expectations for 2004. Now I'm just glad it's ending. Each year for the past 19, I have written down a list of goals for the coming 12 months, stuck it in an envelope and mailed it to myself just before New Year's Eve. The sealed note stays in plain sight -- this year on my bulletin board -- for 12 months, until I work up the courage to open ... (full story) Continue reading "Good As Goaled"

Posted by mm at December 26, 2004 09:16 AM | Permanent Link | Comments (0)

Novastar's Bad Bews Surprise

Novastar had a "good news, bad news" announcement after the market's close Wednesday. The good news: The subprime lender announced a regular quarterly dividend of $1.40 per share and a special dividend of $1.25 per share. The bad news: Novastar (NFI: news, chart, profile) also reported that its 2004 earnings will be $4.10 to $4.40 per share, "assuming a steady interest rate environment through the remainder of December." That compares with analyst estimates, which range ... (full story) Continue reading "Novastar's Bad Bews Surprise"

Posted by mm at December 26, 2004 09:15 AM | Permanent Link | Comments (0)

Future Retirees To Lose Health Coverage

Despite absorbing three straight years of double-digit increases in retiree health-care costs, more than half of employers that offer retiree health and drug coverage plan to keep it when the Medicare prescription drug benefit begins in 2006, according to a survey released Tuesday. This year's Medicare Modernization Act included a financial incentive for employers who offer retiree coverage to keep doing so once Medicare adds a drug benefit in 2006. Companies that keep their drug ... (full story) Continue reading "Future Retirees To Lose Health Coverage"

Posted by mm at December 26, 2004 08:57 AM | Permanent Link | Comments (0)

The Gift Of Financial Stability

Kathy E. from Perinton, N.Y. was in the Brookstone store in the Eastview Mall in western New York state last weekend, finding just the right gift for the wrong price. Examining a fancy set of poker chips, Kathy told her companion it was precisely what her husband wanted, but that she just couldn't see spending the money ($125) when she had "already spent too much" on holiday gifts and when "it just seems extravagant, given ... (full story) Continue reading "The Gift Of Financial Stability"

Posted by mm at December 26, 2004 08:50 AM | Permanent Link | Comments (0)

Is Your Insurer Playing Fair?

Are you in good hands with your insurance company? Wouldn't it be nice to know before you need them? Against the backdrop of lawsuits and allegations of illegal kickbacks made against insurance brokers by New York Attorney General Eliot Spitzer and the announcement of a lawsuit against five large insurance companies by California Insurance Commissioner John Garamendi, it makes us all wonder if we can trust our insurance company. If insurance companies are accused of ... (full story) Continue reading "Is Your Insurer Playing Fair?"

Posted by mm at December 26, 2004 08:44 AM | Permanent Link | Comments (0)

Gates Joins Berkshire Hathaway Board

Microsoft Corp. founder and Chairman Bill Gates was elected to the board of Berkshire Hathaway, the conglomerate run by fellow billionaire investor Warren Buffet, the companies said late Tuesday. Gates, who stepped down as world's largest software company's (MSFT: news, chart, profile) chief executive in 2000 to serve as its chief software architect, is a longtime Berkshire Hathaway shareholder and is said to be a personal friend of Buffet. "I am delighted and honored to ... (full story) Continue reading "Gates Joins Berkshire Hathaway Board"

Posted by mm at December 26, 2004 08:43 AM | Permanent Link | Comments (0)

Verizon Bid For Sprint Called Unlikely

Despite rumors of Verizon's interest in acquiring Sprint, the big Northeastern phone company is unlikely to make a bid given high regulatory and financial hurdles, analysts say. Reports of Verizon's interest have intensified amid apparent merger discussions between Sprint (FON: news, chart, profile) and Nextel Communications (NXTL: news, chart, profile). The companies reportedly will announce the deal Wednesday morning. Earlier Tuesday, Verizon was reported to have gained the support of U.K.-based partner Vodafone (VOD: news ... (full story) Continue reading "Verizon Bid For Sprint Called Unlikely"

Posted by mm at December 26, 2004 08:42 AM | Permanent Link | Comments (0)

Currency Boon Eludes U.S. Automakers

Despite what would appear to be a financial windfall internationally, the benefits of the falling dollar are not making their way to U.S. automakers. At the same time, foreign manufacturers, the ones most at risk, have more or less adapted to the relative strength in their currencies. Ordinarily, a weaker dollar bolsters the bottom line for exporters. They make a product for less at home and sell it for more somewhere else. But that basic ... (full story) Continue reading "Currency Boon Eludes U.S. Automakers"

Posted by mm at December 26, 2004 08:41 AM | Permanent Link | Comments (0)

American Express, Citi Ink Deal

Just weeks after a court decision cleared the way for American Express (AXP: news, chart, profile) to market its card with Visa and MasterCard issuers, the company announced it has entered into an agreement with Citigroup (C: news, chart, profile) to issue the cards. Citigroup is among the nation's biggest credit card issuers. American Express shares rose 1 percent to $55.60 in early Tuesday trade, while Citi shares added 0.3 percent to $46.89. The cards ... (full story) Continue reading "American Express, Citi Ink Deal"

Posted by mm at December 26, 2004 08:40 AM | Permanent Link | Comments (0)

Cash Is King Once Again

Stock dividends aren't pocket change anymore. Dividend-paying stocks are drawing a lot of attention since recent tax law changes reduced the top rate on dividend income to 15 percent -- on par with long-term capital-gains taxes. Investors increasingly view dividends as a stable anchor in a choppy market, which they've been this year. Through Dec. 13, shares of dividend payers in the Standard & Poor's 500 Index returned 15.9 percent vs. 11 percent for non-dividend ... (full story) Continue reading "Cash Is King Once Again"

Posted by mm at December 26, 2004 08:35 AM | Permanent Link | Comments (0)

Ten Habits Of Highly Irrational Investors

Wow, America's market and economic gurus are all over the map predicting 2005! No real consensus. Huge extremes. For example, the bulls in Barron's most recent "Big Money Poll" predicted the Dow at 11,162 by midyear 2005 -- some as high as 11,700 -- while the bears see a drop to 9,482. Worse yet, the highly respected Jeremy Grantham (his GMO firm manages about $70 billion) warns that the Dow could drop to 6,500 early ... (full story) Continue reading "Ten Habits Of Highly Irrational Investors"

Posted by mm at December 26, 2004 08:32 AM | Permanent Link | Comments (0)

Bush Vows To Maintain 'Strong' Dollar

President Bush vowed Wednesday to maintain the so-called "strong dollar" policy even as the U.S. currency was hovering near record lows against the euro. "The policy of my government is a strong-dollar policy," Bush told reporters in the Oval Office after a meeting with Italian Prime Minister Silvio Berlusconi. Berlusconi had asked Bush during their meeting about the declining value of the dollar against the euro, which makes it more difficult for European manufacturers to ... (full story) Continue reading "Bush Vows To Maintain 'Strong' Dollar"

Posted by mm at December 26, 2004 08:26 AM | Permanent Link | Comments (0)

Phone-Network Leasing Rules Eased

The Federal Communications Commission on Wednesday approved rules that limit the extent to which competitors can use the networks of the local Bell phone companies to reach their own customers. The agency's commissioners voted 3-2, with the panel's two Democrats dissenting. As expected, the FCC decided that the Bells do not have to lease access to their switches -- expensive devices that direct communications traffic -- to rivals seeking to serve the mass consumer market ... (full story) Continue reading "Phone-Network Leasing Rules Eased"

Posted by mm at December 26, 2004 08:24 AM | Permanent Link | Comments (0)

VUL Policies Remind Us Why We "KISS"

The Variable Universal Life policy, or VUL, is often suggested as a way to save for retirement. A policyholder makes a large initial premium payment, the policy "pays for itself" over time, and once assumed growth rates are applied, the policy is projected to supply retirement income, tax-free, to the holder of the policy. While this sounds like a no-lose situation, many pitfalls exist that can take this strategy and turn it on its head ... (full story) Continue reading "VUL Policies Remind Us Why We "KISS""

Posted by mm at December 26, 2004 07:27 AM | Permanent Link | Comments (0)

December 25, 2004

Toys 'R' Us Ponders a Season to End All Seasons

With the countdown to Christmas beginning to be measured in hours and not days, Laurie Frank and her mother, Kathryn Snow, had the Toys "R" Us store here pretty much to themselves. In the early afternoon, they strolled the pin-neat aisles and piled a Spider-Man web shooter and other toys into their shopping cart at a leisurely pace. There was no jostling with other customers fighting for must-have items - even those on sale. Most ... (full story) Continue reading "Toys 'R' Us Ponders a Season to End All Seasons"

Posted by mm at December 25, 2004 08:40 AM | Permanent Link | Comments (0)

December 24, 2004

How To Minimize Holiday Debt

Debt. You spit the word right out of your mouth when you say it. That's the reaction many of us have after seeing what we've done to our credit card and bank balances each month. That response is a good thing for most people -- if you're naturally debt-averse, you're unlikely to end up in bankruptcy proceedings because you forgot to pay the Visa bill. It's good to learn early -- and cheaply -- that ... (full story) Continue reading "How To Minimize Holiday Debt"

Posted by mm at December 24, 2004 09:49 PM | Permanent Link | Comments (0)

The Future Of Savings Bonds Is Paperless

A dinosaur of the investment world has met its Ice Age. The old-fashioned savings bond, available in paper form since 1935, will soon be available only in an electronic form online. Don't rush. "Soon" means two, maybe three years. No one really knows just how long it will take. Instead of visiting your friendly corner bank or credit union to buy a savings bond, you'll need a computer, Internet access and a bank account. You'll ... (full story) Continue reading "The Future Of Savings Bonds Is Paperless"

Posted by mm at December 24, 2004 09:34 PM | Permanent Link | Comments (0)

NASD Says Do Your Homework On 529 Plans

The NASD urges investors to do their homework before buying a 529 College Savings Plan. Fees, expenses, tax incentives and returns vary from state to state, and investors therefore should look for the best deal (see: "Start Saving For College Now"). "The good news is that there's no shortage of plans available," said Mary Schapiro, NASD vice chairwoman. "Every state offers at least one 529 plan, and there are currently more than 80 college savings ... (full story) Continue reading "NASD Says Do Your Homework On 529 Plans"

Posted by mm at December 24, 2004 08:37 PM | Permanent Link | Comments (0)

Pay Now, Learn Later

By now you probably know that earnings of Section 529 college savings accounts are free of federal tax if used for higher education. But taxes are only part of the problem. What if your investments tank? Just ask Laurence and Margo Williams of Alexandria, Va. In 2000 they put $45,000 into the Virginia Education Savings Trust to open accounts for daughters Lea, now 5, and Anne, now 3. Since then their investment has shrunk 5 ... (full story) Continue reading "Pay Now, Learn Later"

Posted by mm at December 24, 2004 08:32 PM | Permanent Link | Comments (0)

Is Yale a Waste of Money?

Wouldn't it be neat if, instead of a diploma costing $160,000, you could buy a $16,000 certificate saying you got in? Someday the university education system will simply price itself out of business and save us all a lot of grief. In the meantime we have these bills to pay, $300 billion a year. If tuition payments loom large in your family's budget, study the financing techniques outlined by Ira Carnahan and Ashlea Ebeling, beginning ... (full story) Continue reading "Is Yale a Waste of Money?"

Posted by mm at December 24, 2004 08:31 PM | Permanent Link | Comments (0)

An Expensive Education

Politicians and regulators are steaming over brokers' dominance of the 529 college savings plan market, and scheming to find ways to reduce their role. Perhaps daunted by all the options offered--all 50 U.S. states and the District of Columbia offer plans with varying investment choices and fees--75% of parents and grandparents opening new accounts are buying into broker-sold, high-cost plans, rather than investing in the lower-cost plans available directly from such operators as TIAA-CREF, Vanguard ... (full story) Continue reading "An Expensive Education"

Posted by mm at December 24, 2004 08:29 PM | Permanent Link | Comments (0)

A Word From A Dollar Bear

The dollar has fallen savagely against the euro for the past three years, and the trade deficit is running $55 billion a month. Is the currency rout over? Can the trade deficit be fixed with a rise in interest rates or an upward revaluation of the Chinese currency? Warren Buffett, the world's most visible dollar bear, says the answer to both these questions is no. His bet against the dollar, reported at $12 billion in ... (full story) Continue reading "A Word From A Dollar Bear"

Posted by mm at December 24, 2004 07:03 PM | Permanent Link | Comments (0)

No Money Down

Worthy goal: foster homeownership. Unworthy side effect: foster deadbeats. What can you say about a bill, introduced by a Realtor turned congressman, that requires the Federal Housing Administration to insure tens of billions of dollars' worth of mortgages taken out by first-time home buyers who put nothing down? Normally, you wouldn't need to say much, because it would go nowhere. But this curious idea has been embraced by President Bush as part of his ambitious ... (full story) Continue reading "No Money Down"

Posted by mm at December 24, 2004 06:10 PM | Permanent Link | Comments (0)

Tough Times at U.S. Makers of Auto Parts

So many jobs have been cut by the auto parts giant Delphi that workers sound almost existential about their future. "I think about it," said Robert Pepin, 47, a forklift driver walking to his car after his shift on a recent frigid afternoon at the Delphi East plant in Flint, Mich. "It worries me. But, hey, the sun comes up, the sun goes down." "You worry about the task at hand," he added. "That's the ... (full story) Continue reading "Tough Times at U.S. Makers of Auto Parts"

Posted by mm at December 24, 2004 06:06 PM | Permanent Link | Comments (0)

Banks Test ID Device for Online Security

For years, banks gave away toasters to people who opened checking accounts; soon they may be distributing a more modern kind of appliance. Responding to an increase in Internet fraud, some banks and brokerage firms plan to begin issuing small devices that would help their customers prove their identities when they log on to online banking, brokerage and bill-payment programs. E*Trade Financial intends to introduce such a product in the first few months of 2005 ... (full story) Continue reading "Banks Test ID Device for Online Security"

Posted by mm at December 24, 2004 06:05 PM | Permanent Link | Comments (0)

Hedge Funds, Once Daring, Trim Their Currency Bets

The fall in the dollar this year has been severe - the currency reached a low against the euro yesterday - but few of the best-known hedge funds have made a killing off the dollar's decline. That is a big change from years past, when the largest hedge funds made or lost fortunes by gambling on shifts in currencies. George Soros made $1 billion for his investors by anticipating a decline in the British pound ... (full story) Continue reading "Hedge Funds, Once Daring, Trim Their Currency Bets"

Posted by mm at December 24, 2004 06:03 PM | Permanent Link | Comments (0)

December 23, 2004

New Home Sales Tumble

Sales of new homes unexpectedly plunged in November at the sharpest rate in more than a decade, falling 12 percent to the weakest annual rate since July, the Commerce Department said on Thursday. The November sales tumble, which was well below Wall Street forecasts for a 1.20 million unit rate, followed a revised 4.2 percent increase in October to a rate of 1.278 million. Previously, the October rate had been reported as 1.226 million. November's ... (full story) Continue reading "New Home Sales Tumble"

Posted by mm at December 23, 2004 09:36 AM | Permanent Link | Comments (0)

Dollar Hits New Low Versus Euro

The euro hit another record high against the dollar Thursday after a slew of economic reportswhile long-term bond prices crept lower on profit-taking. The euro rose to a record of $1.3495 in morning trading, from around $1.3460 shortlybefore the reportsonNovember durable goods and consumer spending, topping the euro's prior record of $1.3470 hit earlier in November. The euro bought $1.3390 late Wednesday. The dollar also fell against the Japanese yen, buying ¥103.72 versus ¥104.22 late ... (full story) Continue reading "Dollar Hits New Low Versus Euro"

Posted by mm at December 23, 2004 09:34 AM | Permanent Link | Comments (0)

Leave No Truffle Behind?

At Le Bernardin, the four-star Manhattan seafood restaurant, the prix fixe menu these days runs a hefty $92. But Eric Ripert, the owner and chef, winces every time a customer orders the wild salmon on a bed of asparagus. "If you choose the salmon you kill us," Mr. Ripert said. "We are losing money every time we sell a portion." Mr. Ripert is not used to worrying about the value of the dollar in foreign ... (full story) Continue reading "Leave No Truffle Behind?"

Posted by mm at December 23, 2004 09:26 AM | Permanent Link | Comments (0)

Fannie Mae, After the Battle of Capitol Hill

A measure of how deftly powerful people and institutions in Washington and on Wall Street wield their might is whether anyone catches them when they fall. On Tuesday evening, no one was there to catch Franklin D. Raines. Undone by outsize bookkeeping violations and years of jousting with regulators and legislators, Mr. Raines was forced aside as the chairman and chief executive of Fannie Mae, the mortgage financing behemoth. Now, amid the wreckage of Mr ... (full story) Continue reading "Fannie Mae, After the Battle of Capitol Hill"

Posted by mm at December 23, 2004 09:24 AM | Permanent Link | Comments (0)

Early Mortgage Payment Could Cut Your Tax Bill

A little year-end attention to your mortgage could lower your upcoming Internal Revenue Service bill. Your Jan. 1 mortgage payment really represents interest for the month of December, so make the payment by the 31st. By accelerating the payment, you get an additional deduction this tax year for the interest paid. Make sure you don't cut it too close in making the early payment. Get the check in the mail in plenty of time to ... (full story) Continue reading "Early Mortgage Payment Could Cut Your Tax Bill"

Posted by mm at December 23, 2004 09:18 AM | Permanent Link | Comments (0)

A Lesson in Saving for College

Thanks to obscure savings-plan rules, the best way to finance your kids' education may be to sock away money in your own retirement account One of the toughest financial dilemmas parents can face is how to provide for both their children's college education as well as their own golden years. All too often, parents stash the bulk -- if not all -- of their savings in college accounts, say many financial planners. "Parents take a ... (full story) Continue reading "A Lesson in Saving for College"

Posted by mm at December 23, 2004 08:02 AM | Permanent Link | Comments (0)

December 22, 2004

Jewelry Donations Become Easier

Charities are making it easier to donate jewelry and get a sizable income-tax deduction in the process. Jewelry has long been a particularly tough item to donate because of tax-law hurdles involving donors' deductions on such gifts. Donors often can't deduct the full market value of their gifts. Furthermore, federal regulators have been cracking down on inflated write-offs for such noncash donations. Several nonprofit groups, including the New York-based National Jewelry Institute and the Kazanjian ... (full story) Continue reading "Jewelry Donations Become Easier"

Posted by mm at December 22, 2004 02:08 PM | Permanent Link | Comments (0)

Ills of Drug Stocks May Prove Difficult to Cure

For years, pharmaceutical companies were popular growth stocks. They traded at high price valuations, made up a sizable chunk of leading market indexes and attracted a loyal following of investors. Not only did they churn out impressive current earnings, but they promised more high-powered growth in the years ahead, as the U.S. population aged. Even in recent years, as the industry dealt with a stream of challenges, the stocks held up reasonably well, as Wall ... (full story) Continue reading "Ills of Drug Stocks May Prove Difficult to Cure"

Posted by mm at December 22, 2004 02:06 PM | Permanent Link | Comments (0)

Holiday Shoppers Should Rethink How They Pay

This holiday season, shoppers face an ever-expanding menu of payment options, and knowing the differences can mean fewer headaches if things go wrong. From cash and checks to credit cards and the increasingly popular debit cards, it's easy to get confused. Debit purchases, for example, are often made with "check cards," while recent banking regulations are spurring many check payments to be scanned at cash registers as if they were debit cards. It has created ... (full story) Continue reading "Holiday Shoppers Should Rethink How They Pay"

Posted by mm at December 22, 2004 02:03 PM | Permanent Link | Comments (0)

New Tax Laws Create Traps At Year End

First, do no harm. Taxpayers should keep that in mind as they scramble to make year-end maneuvers, such as tax-loss selling and charitable giving. After a rash of tax-law changes affecting everything from used-car donations to the deductibility of sales taxes, it is easier than ever to make costly year-end blunders that could mean higher tax bills. Another issue to keep in mind is the rapid growth of the alternative minimum tax, which isn't indexed ... (full story) Continue reading "New Tax Laws Create Traps At Year End"

Posted by mm at December 22, 2004 01:38 PM | Permanent Link | Comments (0)

Ban or No Ban, Celebrex Sales Are Expected to Dwindle

The future of Celebrex, the best-selling arthritis pain medicine, may be determined as much by Dr. Jason Faller and other physicians treating arthritis patients as federal regulators. Even if regulators do not force Pfizer to withdraw the drug from the market because of heart attack risks, its prospects are dim if doctors stop prescribing it in the volume they have in recent years. Dr. Faller, chief of the arthritis clinic at Roosevelt Hospital in New ... (full story) Continue reading "Ban or No Ban, Celebrex Sales Are Expected to Dwindle"

Posted by mm at December 22, 2004 10:48 AM | Permanent Link | Comments (0)

Diller's Actions Keep Company in Turnaround

Wall Street is getting a version of Hokey Pokey Elmo, a chief executive who takes his subsidiaries in, then spins them back out. Barry Diller, the chairman and chief executive of IAC/InterActiveCorp, said yesterday that his Internet conglomerate would spin off its travel unit to shareholders, slightly more than a year after completing the purchase of Expedia and several other online companies that it had partly owned. His reasoning is that, after the spinoff, investors ... (full story) Continue reading "Diller's Actions Keep Company in Turnaround"

Posted by mm at December 22, 2004 10:46 AM | Permanent Link | Comments (0)

Holiday Car Shopping

The presents are all unwrapped. The egg nog is finished. The kids are playing with their new toys. So what do you do while you wait for the new year? You could go car shopping. "Most anyone will tell you that this time of the year is the best time to buy," said Charlie Vogelheim, executive editor of the Kelley Blue Book. As auto dealerships try to clear out inventory and meet annual sales goals ... (full story) Continue reading "Holiday Car Shopping"

Posted by mm at December 22, 2004 10:44 AM | Permanent Link | Comments (0)

Franklin Raines Out At Fannie

Fannie Mae ousted CEO Franklin Raines and finance chief Timothy Howard after regulators found accounting problems at the giant mortgage company. Fannie Mae's embattled chief executive is stepping down along with Howard, the company said in a statement late Tuesday night. Fannie Mae also said it has fired its independent auditor, KPMG. "Although to my knowledge the company has always made good faith efforts to get its accounting right, the SEC has determined that mistakes ... (full story) Continue reading "Franklin Raines Out At Fannie"

Posted by mm at December 22, 2004 10:43 AM | Permanent Link | Comments (0)

Lower Living Costs, Keep More Money

How much money you save doesn't entirely depend on your financial behavior. Your city's cost of living could be keeping you down, according to Fred Brock, author of the new book, "Live Well on Less Than You Think: The New York Times Guide to Achieving Your Financial Freedom." Even though you may earn more working in some metropolitan areas than in the countryside, you're also paying more -- for housing, food, taxes and other things ... (full story) Continue reading "Lower Living Costs, Keep More Money"

Posted by mm at December 22, 2004 10:41 AM | Permanent Link | Comments (0)

Blockbuster Cuts Online Prices

Blockbuster Inc., the largest U.S. video rental chain, Wednesday cut the price for its online rental service, undercutting its rivals in an escalating battle for online customers. Blockbuster said it was cutting the subscription price for its online rental service by $2.50 to $14.99 a month plus tax effective immediately, guaranteed through January 2006. The move came as Blockbuster grapples with growing competition from online rental services operated by Netflix Inc. and giant discounter Wal-Mart ... (full story) Continue reading "Blockbuster Cuts Online Prices"

Posted by mm at December 22, 2004 09:34 AM | Permanent Link | Comments (0)

December 21, 2004

Model Reveals Social Insecurity

Posted by mm at December 21, 2004 09:42 PM | Permanent Link | Comments (0)

Banks Stay Calm On Social Security

Heads of most financial firms have yet to openly support private Social Security accounts, even as President Bush prepares to disclose the details of his plan to let younger investors funnel billions of dollars of future payments into privately held investment accounts, a newspaper said Tuesday. But their muted lobbying campaign doesn't mean they aren't supporting the plan, the New York Times report said, adding the firms are finding more subtle ways to support the ... (full story) Continue reading "Banks Stay Calm On Social Security"

Posted by mm at December 21, 2004 02:49 PM | Permanent Link | Comments (0)

Millionaires In The Making: Thank The Bank

Gloria Randecker's financial knowledge is something she banks on. At 17, she took a part-time job at a local bank to help pay her way through Northern Arizona University, where she majored in mechanical engineering. Not only did that job help pay for her degree, it was her first introduction to personal finance. "I was exposed to financially successful people for the first time in my life," she says. "I was able to learn things ... (full story) Continue reading "Millionaires In The Making: Thank The Bank"

Posted by mm at December 21, 2004 02:48 PM | Permanent Link | Comments (0)

Expedia Being Spun Off

IAC/InterActive Corp. plans to split itself in two by spinning off online travel service Expedia.com and related businesses into a company called "Expedia," saying IAC's public perception as a travel company was hindering its growth. The company announced Tuesday that the Expedia spin-off would include the domestic and international operations of Expedia.com, hotels.com and several other travel-related businesses. The post spin-off IAC would be a diversified interactive commerce company including the company's ticketing, electronic retailing ... (full story) Continue reading "Expedia Being Spun Off"

Posted by mm at December 21, 2004 02:44 PM | Permanent Link | Comments (0)

Washington Post To Buy MSN's Slate

Washington Post Co. Tuesday said it would buy Microsoft Corp.'s online magazine Slate, whose mix of politics, news and culture has built a loyal following but failed to yield significant profits. Financial terms of the deal were not disclosed, but Slate accounts for only a tiny portion of Microsoft's overall business. Microsoft put Slate on the block in July. Steve Ballmer, Microsoft's chief executive since 2000, has spearheaded a move to spin off businesses that ... (full story) Continue reading "Washington Post To Buy MSN's Slate"

Posted by mm at December 21, 2004 02:42 PM | Permanent Link | Comments (0)

Value Hunting In Drugs

In retrospect, it seems inevitable that Merck's problems with Vioxx would eventually raise serious questions about Pfizer's Celebrex, another painkiller of the COX-2 inhibitor type. After a clinical trial found that Celebrex appears to increase the risk of heart trouble among those who take large doses over long periods of time, Pfizer announced that it would stop advertising the drug to consumers. Pfizer will still allow doctors to prescribe Celebrex for certain patients. These problems ... (full story) Continue reading "Value Hunting In Drugs"

Posted by mm at December 21, 2004 02:39 PM | Permanent Link | Comments (0)

Making Your Generosity Pay

For Michael and Martha Hogan, giving to charity is not just a tradition -- it's a passion. The St. Louis couple, both 51, donate regularly to some two dozen nonprofits, ranging from major groups like the United Way and the National Kidney Foundation to the lesser-known Small World Adoption Foundation, which helped them adopt the youngest of their four children. "The charities that get most of our time and money are the ones we're familiar ... (full story) Continue reading "Making Your Generosity Pay"

Posted by mm at December 21, 2004 02:37 PM | Permanent Link | Comments (0)

Price Cuts Get Deeper

Bad news for retailers: Shoppers seems to be winning the game of chicken this holiday season. Industry analysts say the fact that consumers didn't besiege malls in the last weekend before Christmas despite the juicy sales shows bargain-hungry shoppers are willing to hold out until the last minute in hopes of getting the very best deals. For retailers, the deliberate procrastination on the part of consumers is a nail-biting scenario, said Marshal Cohen, chief retail ... (full story) Continue reading "Price Cuts Get Deeper"

Posted by mm at December 21, 2004 02:36 PM | Permanent Link | Comments (0)

Charitable Giving: The Right Match

Once you've identified the causes that matter most to you, find the specific charities that best fit your giving goals. Going online is a quick way to sift through the hordes. You can search for charities by cause at Web sites like Guidestar.org and Networkforgood.org. If you prefer to give close to home, you can get information about local charities from community foundations, which are nonprofit organizations that support area causes. You can find one ... (full story) Continue reading "Charitable Giving: The Right Match"

Posted by mm at December 21, 2004 02:34 PM | Permanent Link | Comments (0)

Diller to Break Up IAC

Barry Diller is breaking up his electronic-commerce empire, IAC/InterActiveCorp, splitting off its travel business into a new, publicly traded company called Expedia. Under the plan, approved by IAC's board yesterday, the company will split itself into a pure online travel company and an electronic retail-and-services company known as IAC. The company announced the move today. Expedia will include businesses such as Expedia, Hotels.com and Hotwire, a discount online travel company. Together the businesses currently account ... (full story) Continue reading "Diller to Break Up IAC"

Posted by mm at December 21, 2004 08:42 AM | Permanent Link | Comments (0)

December 20, 2004

Social Security Tax Limit May Go Up

WASHINGTON - Two of President Bush (news - web sites)'s top advisers refused on Sunday to rule out the possibility that wealthy people might have to pay more to help cover the cost of his move to partially privatize Social Security (news - web sites). Neither Treasury Secretary John Snow nor Andrew Card, the White House chief of staff, would say whether Bush's ideas about overhauling the federal retirement program would include raising the limit ... (full story) Continue reading "Social Security Tax Limit May Go Up"

Posted by mm at December 20, 2004 03:58 PM | Permanent Link | Comments (0)

Five Moves To Make By Year-End

Less than two weeks to go: The first step toward getting your finances in great shape for the new year is to make sure you've successfully wrapped up money matters for the old one. The following mix of new and traditional year-end strategies will help you trim your taxes for 2004 and get a jump on key issues for the 2005 filing season. 1. Tally up your purchases. New legislation in effect for 2004 and ... (full story) Continue reading "Five Moves To Make By Year-End"

Posted by mm at December 20, 2004 03:51 PM | Permanent Link | Comments (0)

Dollar Doldrums

Inflation is under control and that should mean that the Fed only will need to raise interest rates a couple more times in 2005 before pausing, right? Not so fast. Some market observers think the weak dollar could play a bigger role in the Fed's interest rate decisions next year. So far, inflation has not been a major problem. Data from November showed only modest rises in consumer goods and wholesale prices. With energy prices ... (full story) Continue reading "Dollar Doldrums"

Posted by mm at December 20, 2004 03:49 PM | Permanent Link | Comments (0)

December 19, 2004

Fannie Defers Decision on Its CEO

Fannie Mae's board deferred a decision on whether the company's chairman and chief executive officer, Franklin D. Raines, should step down to take responsibility for violations of accounting rules, people close to the situation said. But one person familiar with the situation said the board appeared to have reached a consensus that Timothy Howard, the chief financial officer, will leave. The terms of his expected departure weren't settled as of late yesterday, this person said ... (full story) Continue reading "Fannie Defers Decision on Its CEO"

Posted by mm at December 19, 2004 10:42 PM | Permanent Link | Comments (0)

Pfizer's Plunge Will Have Side Effects for Investors

THERE was a time not so long ago when shares of major drug makers like Merck or Pfizer were considered the modern equivalents of the old-fashioned "widows and orphans" stocks. In other words, investment advisers felt that these shares were safe enough to entrust with anyone's assets, without much concern for diversification. Who can blame them? For a long stretch in the 1990's, after the health care reform debacle in the early days of the ... (full story) Continue reading "Pfizer's Plunge Will Have Side Effects for Investors"

Posted by mm at December 19, 2004 10:28 PM | Permanent Link | Comments (0)

In the Bay Area, TiVo Supplies DVR's at a Terrific Price: Nothing

It was a deal that so insane that even Crazy Eddie could not have beat it. Last Friday, TiVo gave away nearly 2,000 digital video recorders to Comcast subscribers who showed up at its Silicon Valley headquarters between 11 a.m. and 1 p.m. TiVo scheduled the giveaway to capitalize on problems that Comcast, the major cable provider in the Bay Area, was having in getting its own DVR's to customers. "Comcast has let down its ... (full story) Continue reading "In the Bay Area, TiVo Supplies DVR's at a Terrific Price: Nothing"

Posted by mm at December 19, 2004 10:25 PM | Permanent Link | Comments (0)

8 Top Auto Maintenance Myths

Want to save hundreds of dollars a year on automobile maintenance? Then stop over-maintaining your vehicle. Sales pitches by fast-and-furious oil change shops and service centers touting all sorts of fluid flushes and lube jobs have Americans wasting wads of cash on unnecessary service items -- particularly on vehicles built in the last 10 years. Often bewildered by the mass of electronics, wires and hoses that adorn a modern engine, many drivers simply put themselves ... (full story) Continue reading "8 Top Auto Maintenance Myths"

Posted by mm at December 19, 2004 04:21 PM | Permanent Link | Comments (0)

New State Guides Help Investors Compare '529s'

New state-sponsored guidelines should begin making it easier for investors to compare popular 529 college-savings plans. But understanding these complex vehicles is another issue. The guidelines, released this month by the College Savings Plans Network of Lexington, Ky., and expected to be widely adopted next year, outline how fees and features in these 529 plans should be broken out for investors. Yet they do little to address the crux of the confusion about 529 plans ... (full story) Continue reading "New State Guides Help Investors Compare '529s'"

Posted by mm at December 19, 2004 01:09 AM | Permanent Link | Comments (0)

Six Ways to Sleep Better in Retirement

Retirement isn't for novices. Sure, building a healthy-size nest egg can be a bit of a slog. But things become truly taxing once you quit the work force, and you will need all the investment wisdom you can muster. What financial perils lie ahead? Consider these five nightmares. You retire with a plump nest egg and a raft of wonderful plans, only to be hit with a brutal stock-market decline. Your investment losses, combined with ... (full story) Continue reading "Six Ways to Sleep Better in Retirement"

Posted by mm at December 19, 2004 01:06 AM | Permanent Link | Comments (0)

Using IRAs to Buy Mortgages Boosts Benefits

Wish you could invest in real estate without having to own or manage a property, while earning tax-exempt or tax-deferred income from that real estate? Well, financial planners are increasingly recommending an investment strategy that allows investors to do just that. Buying property using an individual retirement account is a way to earn tax-exempt or tax-deferred income. And buying or creating mortgages or notes is a way an investor can invest in real estate without ... (full story) Continue reading "Using IRAs to Buy Mortgages Boosts Benefits"

Posted by mm at December 19, 2004 01:01 AM | Permanent Link | Comments (0)

Social Security: Five Burning Questions

President Bush, at last week's White House economic conference, made it clear that revamping Social Security is at the top of his second-term agenda. Specifically, he wants to let taxpayers -- particularly younger workers -- steer a portion of their Social Security payroll taxes into private accounts, allowing them to make investing choices, such as putting money in the stock market. But private accounts alone won't put Social Security on a sound footing. That's because ... (full story) Continue reading "Social Security: Five Burning Questions"

Posted by mm at December 19, 2004 12:57 AM | Permanent Link | Comments (0)

All I Want for Christmas: A Change in Taxes

Investors plucking holiday cards from their mailboxes are also collecting annual missives that engender little cheer: notices of year-end mutual-fund distributions on which taxes will be due in April. But some fund-industry officials have a wish for the new year: With the Bush administration targeting tax overhaul and expanded savings incentives as second-term priorities, the officials are hoping that 2005 will see new momentum in Washington for proposals to change the taxation of funds' capital-gains ... (full story) Continue reading "All I Want for Christmas: A Change in Taxes"

Posted by mm at December 19, 2004 12:50 AM | Permanent Link | Comments (0)

December 18, 2004

If The Bubble Bursts...

Real estate: If it is a bubble, and it bursts, how at risk are you? Like almost everything else in real estate, it depends on your location, according to a report from information provider Standard& Poor's. S&P has developed a housing volatility index (HVI) that attempts to identify which of the 331 U.S. metropolitan statistical areas (MSAs) are most vulnerable to housing price losses during an economic downturn. The HVI examines historical records of housing ... (full story) Continue reading "If The Bubble Bursts..."

Posted by mm at December 18, 2004 08:09 AM | Permanent Link | Comments (0)

The Single Best Retirement Strategy

If I told you there was a risk-free way to boost your retirement savings by 20 percent or more, would you be interested? How about if I added that the strategy could also significantly increase the odds that your savings would last through 30 years of retirement? Would that get your attention? Of course, you might think there's a catch -- that you'd have to live the life of an ascetic, or make like the ... (full story) Continue reading "The Single Best Retirement Strategy"

Posted by mm at December 18, 2004 08:06 AM | Permanent Link | Comments (0)

Snow: Balance Becessary For Reform

Treasury Secretary John Snow said "appropriate, measured balance" is needed when enforcing the Sarbanes-Oxley Act, the most significant revision of U.S. securities law since the 1930s, the Wall Street Journal reported Friday. In an interview with the Journal, Snow said, "We don't want to criminalize mistakes. Getting the right balance there... is a very serious public policy issue, and failure to get the balance right has extraordinarily negative long-term economic consequences." He added that Sarbanes-Oxley ... (full story) Continue reading "Snow: Balance Becessary For Reform"

Posted by mm at December 18, 2004 08:04 AM | Permanent Link | Comments (0)

Bush: Start Bow On Social Security

Now is the time to address the nation's Social Security problem, President Bush said Thursday, instead of leaving it for future administrations and generations to deal with. "It is a far easier problem to manage today than it will be if we continue postponing solutions," Bush said as he wrapped up a two-day White House economic conference. At the conference, he also called for an overhaul of the tax code, pledged to cut the federal ... (full story) Continue reading "Bush: Start Bow On Social Security"

Posted by mm at December 18, 2004 08:02 AM | Permanent Link | Comments (0)

Housing Starts Tumble, But ...

Housing starts took their biggest tumble in almost 11 years in November, raising worries about the housing market and the strength of home prices in the long run. But while some economists said the drop bears watching, they also said it was probably too soon to say it meant the housing bubble was ready to burst. The Commerce Department said starts on new homes and apartments slumped 13.2 percent to a seasonally adjusted annual rate ... (full story) Continue reading "Housing Starts Tumble, But ..."

Posted by mm at December 18, 2004 08:01 AM | Permanent Link | Comments (0)

December 17, 2004

Buy a New 2004 or a 2005?

It's that time of year when the new cars and trucks sit on dealers' lots alongside last year's models. The deals look more tempting on the 2004s, but it's not always clear which purchase would be the better long-term value. For example, GM just introduced its "red tag" year-end sale. According to a TV ad, "The price on the tag is the price you pay. See some red, save some green." While GM's incentives on ... (full story) Continue reading "Buy a New 2004 or a 2005?"

Posted by mm at December 17, 2004 02:07 PM | Permanent Link | Comments (0)

Few People Aware Of New State Sales Tax Deduction

When Brandon Dow was lugging his newly bought couch back from Portland in the middle of last January's bitter ice storm, he thought he was crazy to have crossed state lines just to avoid Washington's sales tax. Dow could not have known that President Bush would sign the American Jobs Creation Act 10 months later, passing with it a provision that makes Washington's state sales tax deductible from federal income taxes this year and next ... (full story) Continue reading "Few People Aware Of New State Sales Tax Deduction"

Posted by mm at December 17, 2004 11:37 AM | Permanent Link | Comments (0)

‘Tis The Season For Wall Street Bonuses

NEW YORK - On a narrow strip of pricey real estate in lower Manhattan, the workers are in a merry mood. Investment bankers, traders and other Wall Street types are starting to find out how big, or in a few cases how small, their year-end bonuses are, and unlike recent years, when profits were lean and budgets were tight, there’s something to cheer about in 2004. With the stock market edging higher again and the ... (full story) Continue reading "‘Tis The Season For Wall Street Bonuses"

Posted by mm at December 17, 2004 11:08 AM | Permanent Link | Comments (0)

Citigroup Says It Will Issue American Express Cards

In the credit card world, it pays to be persistent. American Express, which fought for years for the right to sign deals with United States banks that issue cards on the Visa and MasterCard networks, said late yesterday that it had won a contract with Citigroup, the biggest credit card company in the world. The deal comes a month after MBNA, the third-biggest credit card company in the United States, introduced its first American Express ... (full story) Continue reading "Citigroup Says It Will Issue American Express Cards"

Posted by mm at December 17, 2004 09:10 AM | Permanent Link | Comments (0)

Gifts to Fidelity Employees Attract Investigators

Fidelity Investments, which has often cast itself as the investor's best ally, is in the middle of a wide-ranging investigation about gifts and entertainment on Wall Street. And some on Wall Street have never been happier. NASD and the Securities and Exchange Commission are investigating whether brokers have inappropriately showered mutual fund employees with gifts in an effort to win lucrative commissions from the funds' trading business. The investigation, which is at a very early ... (full story) Continue reading "Gifts to Fidelity Employees Attract Investigators"

Posted by mm at December 17, 2004 09:07 AM | Permanent Link | Comments (0)

Bush Says Social Security Plan Would Reassure Markets

President Bush said on Thursday that addressing the long-term problems in Social Security would reassure the financial markets, offering a rationale to offset criticism that his plan to add personal investment accounts to the retirement system would require up to $2 trillion in new government borrowing. On the second day of a White House conference on economic issues, Mr. Bush continued to lay the groundwork for a strong effort by the White House and its ... (full story) Continue reading "Bush Says Social Security Plan Would Reassure Markets"

Posted by mm at December 17, 2004 09:05 AM | Permanent Link | Comments (0)

Bottom Line at Fannie Mae: Looking Safe vs. Being Safe

Fannie Mae wanted to look very safe, but to do that it cut accounting corners, two regulatory agencies have now concluded. And that has severely damaged the image of the company and its management. The management of Fannie Mae had agreed to change its accounting as a result of harsh criticism levied in September by the Office of Federal Housing Enterprise Oversight, its regulator. But the company, in a highly unusual move, asked Donald T ... (full story) Continue reading "Bottom Line at Fannie Mae: Looking Safe vs. Being Safe"

Posted by mm at December 17, 2004 09:04 AM | Permanent Link | Comments (0)

Assessing What Will Now Happen to Fannie Mae

Fannie Mae, the housing-finance giant, for years has fended off critics who contend that the company is too big, too powerful and too risky. But the Securities and Exchange Commission's Wednesday ruling, that Fannie Mae had seriously breached accounting rules, could touch off a chain reaction that results in stricter government controls, legislation limiting its growth and possibly even a change in top management. Democratic and Republican lawmakers alike demanded on Thursday that senior executives ... (full story) Continue reading "Assessing What Will Now Happen to Fannie Mae"

Posted by mm at December 17, 2004 09:02 AM | Permanent Link | Comments (0)

U.S. Quiet on China Trade Tax

China's promise to impose new taxes on some textile exports will do little to sway the administration as it debates whether to limit the expected flood of Chinese goods next year, trade groups on both sides of the argument said yesterday. The European Union, however, welcomed the Chinese announcement and reaffirmed that it would lift its textile quotas without limits. "We're clear on this. We made our commitments back in 1994 and we will be ... (full story) Continue reading "U.S. Quiet on China Trade Tax"

Posted by mm at December 17, 2004 09:02 AM | Permanent Link | Comments (0)

Fed Raises Interest Rates for 5th Time This Year

The Federal Reserve raised short-term interest rates today for the fifth time this year, and it suggested that more rate increases are in order in the months ahead. As widely expected, the central bank raised the federal funds rate on overnight loans by a quarter-point, to 2.25 percent, and reiterated its intention to raise borrowing costs at a "pace that is likely to be measured." The decision pushed the Fed's target for short-term interest rates ... (full story) Continue reading "Fed Raises Interest Rates for 5th Time This Year"

Posted by mm at December 17, 2004 08:59 AM | Permanent Link | Comments (0)

December 14, 2004

MBNA Pitches Rival Visa Card

Just weeks after it began issuing cards from American Express Co., MBNA Corp. is telling potential customers that a rival card from Visa USA Inc. is "the only card you need to carry." MBNA, one of the nation's largest credit-card issuers, has begun to pitch Visa's Signature card to the same type of affluent customers who also are being offered American Express cards. Separately, American Express, which formed the MBNA partnership earlier this year, announced ... (full story) Continue reading "MBNA Pitches Rival Visa Card"

Posted by mm at December 14, 2004 03:13 PM | Permanent Link | Comments (0)

Coping With Rising Rates

The Federal Reserve is set to meet Tuesday and most experts agree another quarter point rate hike is in the cards. The anticipated increase (see more on what's expected) would bring the federal funds rate to 2.25 percent. Many economists see the rate hike as a way for the Federal Reserve to keep inflation, or rising prices, in check. That doesn't mean, however, consumers won't feel a pinch. Here are five tips that will help ... (full story) Continue reading "Coping With Rising Rates"

Posted by mm at December 14, 2004 11:43 AM | Permanent Link | Comments (0)

Brokerages Battle for 'Active Traders'

During the dot-com boom, online brokerage houses battled for the heart of every investor. Now, they're setting their sights on a narrower, more lucrative target: frequent traders. The efforts involve a range of actions aimed at these customers: reduced prices on trades, guaranteed speed of execution and specialized customer-service assistance. Yesterday, Harrisdirect, a unit of BMO Financial Group, announced it was cutting its commission to $9.95 from $19.99 for clients making 60 or more trades ... (full story) Continue reading "Brokerages Battle for 'Active Traders'"

Posted by mm at December 14, 2004 06:13 AM | Permanent Link | Comments (0)

December 13, 2004

Are You Ready To Retire?

Baby boomers may not be as prepared for retirement as they think. Only 42 percent of boomers have decided on an age to retire and have actively planned out how much they should save each month to achieve that goal, reports Allstate Insurance Company. The company found that 38 percent of workers have made very few, if any, preparations for retirement. How do you fare? Answer these 10 questions to find out if you're ready ... (full story) Continue reading "Are You Ready To Retire?"

Posted by mm at December 13, 2004 10:24 AM | Permanent Link | Comments (0)

Don’t Let Health Care Costs Hijack Your Retirement

One of the greatest financial challenges faced by today’s retirees is the rising cost of health care. Prescriptions, insurance premiums, doctor’s office visits and hospital stays are all increasing more rapidly than inflation. Whether you’re in your golden years or fast approaching them, you must take a serious look at how health care costs will affect your retirement nest egg. The causes of rising health care costs are many. Today’s population is living longer than ... (full story) Continue reading "Don’t Let Health Care Costs Hijack Your Retirement"

Posted by mm at December 13, 2004 10:10 AM | Permanent Link | Comments (0)

December 12, 2004

Ownership Has Its Privileges

IF YOU'RE READING THIS column, you're probably an investor in the stock market. That makes you a member of the approximately 60% of American households that own stocks, either directly or indirectly. That also makes you part of what President Bush likes to call the "ownership society." But what about the other 40% of households that don't own stocks? How can we talk about an "ownership society" — or for that matter, how can we ... (full story) Continue reading "Ownership Has Its Privileges"

Posted by mm at December 12, 2004 07:38 AM | Permanent Link | Comments (0)

Last-Minute Retirement Planning

THE BEST WAY TO save for retirement is to diligently sock away dollars starting with your very first paycheck and stopping only once the champagne is served at your retirement party. Too bad it doesn't always work out that way. On the road to a comfy retirement, many folks hit detours. Job loss, divorce, illness, disability — there are myriad reasons why distant goals like retirement are often put on hold, while more immediate ones ... (full story) Continue reading "Last-Minute Retirement Planning"

Posted by mm at December 12, 2004 07:34 AM | Permanent Link | Comments (0)

Bush Rejects Raising Taxes to Pay for Social Security Plan

President Bush flatly rejected today the possibility of raising payroll taxes to pay for an overhaul of Social Security, a project that is likely to cost trillions of dollars over the next several decades. "We will not raise payroll taxes to solve this problem," Mr. Bush told reporters after meeting with trustees of the Social Security system. It was Mr. Bush's most explicit declaration so far that he intends to borrow the money needed for ... (full story) Continue reading "Bush Rejects Raising Taxes to Pay for Social Security Plan"

Posted by mm at December 12, 2004 07:10 AM | Permanent Link | Comments (0)

A New Way to Hedge Your Home's Paper Profit

IF you have owned a home for several years, you may be sitting on a sizable increase in equity. And if you are worried that the run-up in housing prices can't last much longer, you may think the only choice is to call a broker, rent a moving van and head for the (less expensive) hills. But through an increasing number of new investments, you may be able to limit future erosion of your home's ... (full story) Continue reading "A New Way to Hedge Your Home's Paper Profit"

Posted by mm at December 12, 2004 06:54 AM | Permanent Link | Comments (0)

Social Security Reform, With One Big Catch

OF all the arguments being made to replace part of Social Security with private retirement accounts, few are more seductive and more misleading than the prospect of earning higher returns. Get ready to hear a lot about this next week, when President Bush is host for a two-day economic conference that is expected to focus sharply on Social Security. Under the current system, investment returns from Social Security are "abysmal," Mr. Bush said in one ... (full story) Continue reading "Social Security Reform, With One Big Catch"

Posted by mm at December 12, 2004 06:53 AM | Permanent Link | Comments (0)

Bush Eyes Social Security Threat

President George W. Bush said on Saturday Social Security must be overhauled to avoid a "looming danger" of insolvency, as he launched a public push for his proposal to add private accounts to the program. Bush faces a tough sell on his proposal, which is estimated to involve $1 trillion to $2 trillion in transition costs. The president's aides have insisted the up front costs for Social Security reform will be worthwhile in the long ... (full story) Continue reading "Bush Eyes Social Security Threat"

Posted by mm at December 12, 2004 06:51 AM | Permanent Link | Comments (0)

December 11, 2004

California, U.S. in a Housing 'Bubble,' UCLA Forecast Says

Economists at UCLA have invoked the B-word again. In an outlook to be formally released today, forecasters say California and the nation are beset by a housing "bubble" that will depress construction next year, slowing the nation's economic recovery. Yet the fallout from the bubble in California won't be devastating, according to the UCLA Anderson Forecast. Indeed, the Golden State's economy will expand at a faster clip than the nation's in 2005, thanks in part ... (full story) Continue reading "California, U.S. in a Housing 'Bubble,' UCLA Forecast Says"

Posted by mm at December 11, 2004 09:15 PM | Permanent Link | Comments (0)

Financial Resolutions

If you're like many Americans, getting into shape is at the top of your New Year's resolution list. For others, the New Year is a chance start over and do things differently financially. While we can't help you tone your abs, we can help you get financially fit. Here are five tips to help you get your finances in order. 1. Get rid of holiday debt. U.S. consumers will spend $219 billion on gifts this ... (full story) Continue reading "Financial Resolutions"

Posted by mm at December 11, 2004 07:04 AM | Permanent Link | Comments (0)

Taxable And Tax-Exempt Not So Different?

I'm looking to park some cash in a money-market fund and I've noticed that some companies' taxable and tax-exempt money funds are paying roughly the same yields. Am I missing something, or in such a case should I go with the tax-exempt money market? -- Anonymous, New York You're absolutely right, my eagle-eyed friend. In some cases, taxable money funds and tax-exempt funds are throwing off yields that are pretty close even before taking the ... (full story) Continue reading "Taxable And Tax-Exempt Not So Different?"

Posted by mm at December 11, 2004 07:02 AM | Permanent Link | Comments (0)

December 10, 2004

Put Away Your Check Book

I don't want to sound like Ebenezer Scrooge, but I do want you to think twice before you write another check to charity. Why? Because there might be a much smarter way to be generous. Consider giving appreciated securities -- stocks or mutual fund shares -- instead of cash. When you give $1,000 in cash, you get to deduct $1,000, and that saves you $250 in the 25% bracket. (Any state income tax savings are ... (full story) Continue reading "Put Away Your Check Book"

Posted by mm at December 10, 2004 12:24 PM | Permanent Link | Comments (0)

21st-Century Landlords

Fresh out of grad school in 1998, Keith Colacioppo moved back home with his parents in the Bronx to save money. He lived frugally and opened a 401(k) retirement account at work. But Colacioppo wanted to do more to cut his taxes and kick his savings into high gear. "My accountant kept telling me it was time to buy real estate -- buy, buy, buy," says Colacioppo. So he did. His motives, and success, explain ... (full story) Continue reading "21st-Century Landlords"

Posted by mm at December 10, 2004 12:18 PM | Permanent Link | Comments (0)

December 09, 2004

IRS to Issue Rules On Tax Shelters

Stepping up its war on tax shelters, the U.S. Treasury Department and the Internal Revenue Service plan to announce revised ethical standards for lawyers, accountants and other tax advisers. The new standards attempt to discourage people from designing and peddling shelters that have no apparent purpose other than to dodge taxes. IRS officials are focusing on tax professionals, since that's where taxpayers -- both wealthy individuals and businesses -- typically hear about shelter ideas in ... (full story) Continue reading "IRS to Issue Rules On Tax Shelters"

Posted by mm at December 09, 2004 02:41 PM | Permanent Link | Comments (0)

Get Real About Real Estate

THE HOUSING MARKET HAS shown Herculean strength in the past few years. New home sales increased 0.2% in October, to the third-highest level ever, according to a recent Commerce Department report. That same month saw new home construction rise 6.4%, to the highest level of the year. But the furious rise in property prices during the past few years leaves some experts scratching their heads in befuddlement and others dropping the "b" word. In his ... (full story) Continue reading "Get Real About Real Estate"

Posted by mm at December 09, 2004 02:36 PM | Permanent Link | Comments (0)

OPEC Considers Output Cut to Keep Prices From Falling

After producing close to full capacity for several months in a bid to drive crude oil prices down from record levels, OPEC ministers are considering curbing their production and taking some oil off the market to prevent a slump in prices as demand slows next year. While oil prices in New York are still up 30 percent this year, they have dropped by nearly a quarter since they touched over $55 a barrel in late ... (full story) Continue reading "OPEC Considers Output Cut to Keep Prices From Falling"

Posted by mm at December 09, 2004 02:32 PM | Permanent Link | Comments (0)

Small Change Adds Up To Big Savings

Pennies for a rainy day are nice, but there are easy ways to save much more that that for a sunny future. Glinda Bridgforth and Gail Perry-Mason, authors of the new book "Girl, Make Your Money Grow!" recommend starting small. Putting aside even a dollar or two a day will help your savings grow over time. They recommend that you consider the following: Serial savings. Decide that you'll save every $1 bill with a serial ... (full story) Continue reading "Small Change Adds Up To Big Savings"

Posted by mm at December 09, 2004 01:14 PM | Permanent Link | Comments (0)

Cell Phone Calls In Flight?

Federal regulators are set to begin discussions later this month on allowing the use of cell phones on commercial airline flights. The Federal Communications Commission said that at its Dec. 15 meeting it will discuss possible revisions to rules prohibiting cell phone use on commercial flights. That's the first step of the process needed to lift the ban. Cell phone use has been banned due to concerns about how it could affect an aircraft's navigation ... (full story) Continue reading "Cell Phone Calls In Flight?"

Posted by mm at December 09, 2004 12:31 PM | Permanent Link | Comments (0)

IBM Cash Balance Plan Ending

International Business Machines Corp. is set to close its cash balance pension plan to new employees and offer them a 401(k) plan, newspaper reports said Thursday. The new 401(k) plan -- which would not affect current employees or retirees and goes into effect Jan. 1 -- would enable participants to put aside 6 percent of their pay each year in individual retirement accounts, with IBM matching the contributions, the New York Times and the Wall ... (full story) Continue reading "IBM Cash Balance Plan Ending"

Posted by mm at December 09, 2004 12:29 PM | Permanent Link | Comments (0)

John Snow Staying On At Treasury

Treasury Secretary John Snow has said "yes" to President Bush's request that he remain in his post in a second Bush administration, the White House said Wednesday. "The president is pleased that Secretary Snow decided to stay on for his second term. He is a valued member of the economic team," White House Spokesman Scott McClellan said. Snow, 65, has led the Treasury Department since February 2003. His future had been the focus of considerable ... (full story) Continue reading "John Snow Staying On At Treasury"

Posted by mm at December 09, 2004 12:28 PM | Permanent Link | Comments (0)

Holiday Tipping

'Tis the season to spread the wealth. There's no better time to show appreciation to the people who provide services for you throughout the year. But trying to figure out who to tip and how much can cause a holiday headache. Maybe that's why 42 percent of consumers in a recent ConsumerReports.org survey said they don't bother tipping at all during the holiday season. Do you have tipping anxiety? Here are today's five tips. 1 ... (full story) Continue reading "Holiday Tipping"

Posted by mm at December 09, 2004 12:25 PM | Permanent Link | Comments (0)

Credit Card Loyalty Put to the Switch Test

When Patrick F. McIntyre received two American Express cards in the mail last month, he did not feel as if he had been welcomed into an exclusive club. Instead, he felt like a pawn in the credit card industry's latest maneuver. The MBNA Corporation, the issuer of the Visa credit cards that Mr. McIntyre and his wife had carried for 14 years, had switched his account to American Express without his permission, he said. He ... (full story) Continue reading "Credit Card Loyalty Put to the Switch Test"

Posted by mm at December 09, 2004 08:13 AM | Permanent Link | Comments (0)

December 08, 2004

Cheapest Health Insurance Found Out West

LOOKING FOR AFFORDABLE health care? Some of the cheapest policies are found out West. On Tuesday, eHealthInsurance.com, an online insurance broker, released its first national survey ranking the most affordable cities for health insurance. The results were striking. A family of four living in Kansas City, Mo., the most affordable city, would pay up to 76% less than a family struggling to make ends meet in Boston, the most expensive city. According to eHealthInsurance, families ... (full story) Continue reading "Cheapest Health Insurance Found Out West"

Posted by mm at December 08, 2004 10:55 AM | Permanent Link | Comments (0)

The Dollar Dilemma

THE DOLLAR IS plumbing depths not seen in years — with no sign of improvement in sight. In recent months, the greenback has fallen to its lowest point in more than four and a half years against the yen, and has posted a string of all-time lows against the euro, which was launched in 1999. On Wednesday, the dollar touched a 12-year low against the British pound. The Bush re-election has provoked fears among currency ... (full story) Continue reading "The Dollar Dilemma"

Posted by mm at December 08, 2004 10:53 AM | Permanent Link | Comments (0)

Year-End Tax Planning Moves for Small Businesses

ATTENTION SMALL-BUSINESS OWNERS: Now is not the time to get distracted by the holiday chaos. Time is rapidly running out on your chance to make some savvy tax-saving moves that could slash thousands of dollars off your 2004 small business tax bill. So drop the fruitcake and listen up. To take advantage of the generous tax breaks detailed below, you need to take action before the ball drops in Times Square. 1. Load-Up on Equipment ... (full story) Continue reading "Year-End Tax Planning Moves for Small Businesses"

Posted by mm at December 08, 2004 10:52 AM | Permanent Link | Comments (0)

Fear Itself

FEAR IS AN INVESTOR'S best friend. Fear makes stocks cheap, so that you can buy them at great prices. But, of course, to dare to do that, you have to be unafraid. It's a bit of a paradox. Stocks have soared since the climax of fear this summer — a "bubble of fear" created by an intensely negative, bitter and divisive presidential election. I've been saying all along in this column that the bubble would ... (full story) Continue reading "Fear Itself"

Posted by mm at December 08, 2004 10:51 AM | Permanent Link | Comments (0)

Give Tomorrow, Get the Tax Break Today

LOOKING FOR A last-minute tax break that will leave you feeling warm and fuzzy inside? Charitable giving is good for your heart and your tax bill. Even better: you needn't start scrambling to find a worthy charity before Dec. 31, thanks to so-called donor-advised funds. These investment vehicles allow would-be philanthropists to invest money today that someday will go to charity — and enjoy the tax break right now. You can get started with as ... (full story) Continue reading "Give Tomorrow, Get the Tax Break Today"

Posted by mm at December 08, 2004 10:51 AM | Permanent Link | Comments (0)

2004 Year-End Tax Planning Moves

AS THE YEAR DRAWS to a close, you're probably thinking more about your holiday credit-card bills than your 2004 tax bill. Big mistake. Squeezing in a little time for some year-end tax planning can save you big bucks come tax-return time. Consider it a holiday gift from Uncle Sam — albeit one you're going to have to do a little extra work to receive. Here are seven tax-saving strategies for 2004 that should be employed ... (full story) Continue reading "2004 Year-End Tax Planning Moves"

Posted by mm at December 08, 2004 10:50 AM | Permanent Link | Comments (0)

Wall St. Turns To The Time Out As Punishment

Regulators are wielding a new weapon against Wall Street firms in the hope that it might hurt more than multimillion-dollar fines: temporarily shutting down certain business lines. Last week, NASD prohibited Merrill Lynch and Wachovia Securities from registering brokers for five business days on top of fining the firms: $1.6 million for Merrill Lynch and $650,000 for Wachovia. Each firm had failed to report to NASD on-time information including customer complaints, regulatory actions and criminal ... (full story) Continue reading "Wall St. Turns To The Time Out As Punishment"

Posted by mm at December 08, 2004 09:58 AM | Permanent Link | Comments (0)

How To Profit On A Weak Dollar

A weak dollar can produce strong returns, even for individual investors. The euro has jumped about 6 percent against the dollar this year, as the greenback hit a series of record lows versus that young currency. The dollar has also fallen against Japan's yen. That has increased the value of U.S. companies' overseas sales while driving up the cost of imports here. Two prime factors driving the dollar's decline: the current account deficit, a broad ... (full story) Continue reading "How To Profit On A Weak Dollar"

Posted by mm at December 08, 2004 09:57 AM | Permanent Link | Comments (0)

Paper Checks Going Bye-Bye?

The number of electronic payment transactions -- by both debit and credit card -- exceeded check payments last year for the first time, according to a survey conducted by the Federal Reserve and electronic payments companies. Electronic payment transactions totaled 44.5 billion in 2003 versus 36.7 billion checks, said a statement Monday from the Fed Financial Services Policy Committee. The Fed said payments by electronic transfer have risen at an annual rate of 13.2 percent ... (full story) Continue reading "Paper Checks Going Bye-Bye?"

Posted by mm at December 08, 2004 09:55 AM | Permanent Link | Comments (0)

A Plan For U.S. Energy Security?

The United States must diversify its global oil supplies, expand a world network of strategic petroleum reserves and raise fuel efficiency standards to ensure its energy security, a panel of experts will recommend Wednesday. These are some of the findings from the National Commission on Energy Policy, a bipartisan group of energy experts, company executives and government officials, that will be released in Washington to attack major long-term energy challenges. The recommendations could be used ... (full story) Continue reading "A Plan For U.S. Energy Security?"

Posted by mm at December 08, 2004 09:54 AM | Permanent Link | Comments (0)

Tunes Coming To Callers?

Cell phone ringtones, the snippet of songs replacing a phone's ring, are set to expand to playing a song to callers before the phone owner answers, according to a published report. USA Today reported that T-Mobile Wednesday will roll out what it calls "Caller Tunes," which plays up to a 40-second song snippet to callers. Ringtones have become so popular they have grown into a $4 billion industry worldwide, even prompting Billboard magazine to give ... (full story) Continue reading "Tunes Coming To Callers?"

Posted by mm at December 08, 2004 09:53 AM | Permanent Link | Comments (0)

December 07, 2004

Check It Out: Incentives to Pay Bills Online

Financial institutions, eager to get more consumers to pay their bills online, are offering a new incentive: cash. Citigroup Inc.'s Citibank introduced a promotion in October offering as much as $200 to new online bill-paying customers, depending on the number of bills they pay electronically. The promotion runs until the end of the year. At Wells Fargo & Co., customers in certain markets who are new to the service can get $10 if they pay ... (full story) Continue reading "Check It Out: Incentives to Pay Bills Online"

Posted by mm at December 07, 2004 10:39 PM | Permanent Link | Comments (0)

CCH Capital Changes Identifies Top Ten Tax-Complex Corporate Actions for 2004

While year-end often is a time for investors to reflect on their winning and losing holdings, the tax analysts and editors at CCH® Capital Changes have identified what they believe will be the top ten tax-complex and significant corporate actions likely to impact investors this year. A part of Wolters Kluwer Corporate & Financial Services, CCH Capital Changes is considered the tax authority for accurate basis tracking and related tax issues involving publicly traded stocks ... (full story) Continue reading "CCH Capital Changes Identifies Top Ten Tax-Complex Corporate Actions for 2004"

Posted by mm at December 07, 2004 10:26 PM | Permanent Link | Comments (0)

GainsKeeper Suggests Year-End Tax Planning Strategies to Minimize 2004 Taxes Owed

What appears to be a lackluster year for investors could be worse for those who don’t carefully review their portfolios for possible tax saving strategies, according to Cameron Routh, head of partner relations for GainsKeeper®. GainsKeeper, a part of Wolters Kluwer Corporate & Financial Services, is the leading automated tax lot accounting service for the investment community. “Individuals need to make their own investment decisions based on their situation, but tax implications should be factored ... (full story) Continue reading "GainsKeeper Suggests Year-End Tax Planning Strategies to Minimize 2004 Taxes Owed"

Posted by mm at December 07, 2004 10:24 PM | Permanent Link | Comments (0)

Stocks That Need Special Tax Moves

When it comes to stocks, year-end tax moves can be pretty routine. But certain types of corporate transactions can require taxpayers to vary from the norm. What are the tax implications, for example, of a stock that recently has been through a spin off? How do you make sure to capture the best tax rate on a one-time dividend? When can you account for a loss on the stock of a company that has filed ... (full story) Continue reading "Stocks That Need Special Tax Moves"

Posted by mm at December 07, 2004 10:21 PM | Permanent Link | Comments (0)

Electronic Ways to Pay Eclipse Checks in Number

The number of payments Americans make by debit-card and other electronic transactions has, for the first time, exceeded those made by check. According to a study by the Federal Reserve, the majority of noncash payments made in the U.S. are now done electronically. Electronic payment transactions include those made with credit and debit cards. The total number of electronic payment transactions reached 44.5 billion last year, the study said. Checks were still the single largest ... (full story) Continue reading "Electronic Ways to Pay Eclipse Checks in Number"

Posted by mm at December 07, 2004 10:18 PM | Permanent Link | Comments (0)

The Trouble With Rebates

LIKE many bargain hunters, Rosemary Forrest makes a point of mailing in rebate coupons when she purchases computer equipment. So when she bought a Microtek scanner in June from a catalogue and sent in the rebate application, Ms. Forrest knew that she would probably have to wait at least two months before seeing the $50 check in the mail. Eight weeks later, Ms. Forrest, of Augusta, Ga., did get something in the mail from the ... (full story) Continue reading "The Trouble With Rebates"

Posted by mm at December 07, 2004 09:18 PM | Permanent Link | Comments (0)

Customers Tire of Excuses for Rebates That Never Arrive

SHEROL DUVAL applied for an $89 rebate on a Canon printer she bought at Circuit City in 1998, but she has given up hope that it will ever materialize. Ms. Duval, who lives in Mount Vernon, N.Y., had more success with a $10 rebate for a CenDyne DVD player she bought at Radio Shack last November: after 14 weeks, it finally arrived. Ms. Duval's experiences put her in a league with the many consumers who ... (full story) Continue reading "Customers Tire of Excuses for Rebates That Never Arrive"

Posted by mm at December 07, 2004 09:17 PM | Permanent Link | Comments (0)

Bush To Borrow To Fix Social Security

President Bush expects the federal government will have to increase its borrowing to pay for transition costs associated with adding personal retirement accounts to Social Security, White House spokesman Scott McClellan said Monday. "The Social Security system is unsustainable. It needs to be fixed," McClellan said. Asked if the "upfront transition" costs meant more government borrowing, he said "that's what you're looking at doing" to sustain the 70-year-old government-sponsored pension system. The disclosure disturbed Robert ... (full story) Continue reading "Bush To Borrow To Fix Social Security"

Posted by mm at December 07, 2004 06:26 PM | Permanent Link | Comments (0)

Zhou Comments Boost Yuan Forwards

Yuan forwards rose after Chinese central bank Governor Zhou Xiaochuan said the country's currency peg is a hazard for banks and companies, according to a published report. "Rigid exchange rates amid imbalances in revenues and expenditures present huge risks," Zhou said, according to Bloomberg News. He didn't elaborate on how or when China might change its exchange rate. This year, the People's Bank of China has been reviewing the yuan's effective pegged at about 8.28 ... (full story) Continue reading "Zhou Comments Boost Yuan Forwards"

Posted by mm at December 07, 2004 06:25 PM | Permanent Link | Comments (0)

Fed Heading For A Pause

No, not next week, but maybe in February the Federal Reserve will decide to pause and hold interest rates steady. The statement will tell the tale. While the economy continues to expand, it's doing so unevenly. For every strong statistic that's released nowadays, there's one that's on the weak side. The same is true of inflation. One day oil prices go up because of geopolitical tensions, the next day they go down because of unseasonably ... (full story)

Posted by mm at December 07, 2004 06:21 PM | Permanent Link | Comments (0)

Poll: Social Security Needs Reform

More than half of investors queried in a poll favor privatizing Social Security, according to results released Tuesday by Eaton Vance, a Boston-based money management firm. The poll, called "Inside the Mind of the 21st Century Investor," found that 56 percent of investors supported allowing private investment accounts for Social Security, 35 percent opposed them and 9 percent didn't know. Support was sharply divided along party lines, with 70 percent of President George W. Bush ... (full story) Continue reading "Poll: Social Security Needs Reform"

Posted by mm at December 07, 2004 06:20 PM | Permanent Link | Comments (0)

Options Open On Tax Reform

President Bush is enthused about pursuing his campaign pledge to reform the tax code, but it remains too early to set a timetable or to guess what shape the effort will take, the Treasury Department's top tax official said Tuesday. Bush has pledged to appoint a bipartisan panel to come up with specific tax reform recommendations. Gregory Jenner, acting assistant Treasury secretary for tax policy, told a tax conference that it was "way too early ... (full story) Continue reading "Options Open On Tax Reform"

Posted by mm at December 07, 2004 06:19 PM | Permanent Link | Comments (0)

Topping Off the Biggest Gas Tank

A swamp near here is one of the most secretive places in America. There are no signs, just a 500-acre complex protected at all times by 30 armed guards in combat fatigues patrolling in sport utility vehicles. This is part of the world's largest and most expensive filling station, the United States Strategic Petroleum Reserve, where a large portion of the government's nearly 700 million barrels of oil are stored in underground salt shafts that ... (full story) Continue reading "Topping Off the Biggest Gas Tank"

Posted by mm at December 07, 2004 03:14 PM | Permanent Link | Comments (0)

What To Do With A Dud Gift

It's bound to happen every time the holidays roll around: You get a gift that is great, but a little off (wrong size, unflattering color, etc.); way off-base (Omaha steaks for a vegetarian); or just awful (trophy plaque with a plastic rhinoceros head). Before you chuck the offending object into the regift pile or add it to the stash of trash bound for the curb, here are some options to get something from your worst ... (full story) Continue reading "What To Do With A Dud Gift"

Posted by mm at December 07, 2004 03:12 PM | Permanent Link | Comments (0)

Moving Smoothly Into Retirement

Retirement is on the horizon. You've planned diligently for the day you can quit working and start enjoying your post-employment lifestyle. But the actual mechanics of moving from collecting a paycheck to retiring on your savings and, for some lucky retirees, a pension, is more complicated than you might think. Which assets do you tap first? How much money can you withdraw? Where do you get medical coverage? Finding the answers to these questions can ... (full story) Continue reading "Moving Smoothly Into Retirement"

Posted by mm at December 07, 2004 03:11 PM | Permanent Link | Comments (0)

Putting Your Financial House In Online Order

Getting your finances in shape is a tall order. Faced with a sea of paper -- bills to be paid, check statements, brokerage transaction records, mutual fund reports -- most people want to abandon ship. Instead, look online for help. Provided that you're comfortable with your PC and the Web, organizing your finances online can eliminate some financial drudgery and make the task easier and more convenient. And keeping track of your finances online offers ... (full story) Continue reading "Putting Your Financial House In Online Order"

Posted by mm at December 07, 2004 03:10 PM | Permanent Link | Comments (0)

December 06, 2004

Social Security Reform: A Guide

Overhauling Social Security is on the Congressional agenda. You know what that means. There will be much wrangling, consternation and spin. The words "crisis" and "trillions of dollars" will be used ... a lot. You will be tempted to reach for the Advil. So here is a primer on some of the key issues that will arise. Money in, money out Social Security operates primarily as a pay-as-you-go system: the Social Security taxes taken out ... (full story) Continue reading "Social Security Reform: A Guide"

Posted by mm at December 06, 2004 04:25 PM | Permanent Link | Comments (0)

Get Healthy, Get Wealthy

As the time for New Year's resolutions approaches, many people will put healthier habits at the top of their list, only to abandon those lofty goals by Jan. 2. But most folks agree that money talks, and these days there are plenty of financial incentives to keep you on the straight and narrow. Don't believe it? Consider how much these healthy moves can save you. Quit smoking. With the cost of a pack averaging $4 ... (full story) Continue reading "Get Healthy, Get Wealthy"

Posted by mm at December 06, 2004 04:23 PM | Permanent Link | Comments (0)

Credit Cards Offer Safety In Buying Online

When it comes to buying online, credit cards are the only way to fly. "The bottom line is that people feel a lot safer (using credit cards)," says Linda Sherry, spokeswoman for Consumer Action, a nonprofit advocacy and education group. "Much as I advocate pay-as-you-go, when shopping online or with merchants you don't know, a credit card is a lot safer." But not all cards are created equal. Depending on your card brand and the ... (full story) Continue reading "Credit Cards Offer Safety In Buying Online"

Posted by mm at December 06, 2004 01:10 PM | Permanent Link | Comments (0)

Can There Be Too Many Homeowners?

More than 69 percent of American households own their homes. Further expanding the rate of homeownership, which is a policy shared by the housing industry and politicians alike, is leading to an increased focus on subprime borrowers -- those with less-than-perfect credit. But with affordability for first-time home buyers already quite low, will the current initiatives aimed at creating even more homeowners backfire? An index of affordability for first-time home buyers shows a disconnection between ... (full story) Continue reading "Can There Be Too Many Homeowners?"

Posted by mm at December 06, 2004 12:25 PM | Permanent Link | Comments (0)

Social Security Reform = New Debt

The White House said Monday for the first time that President Bush's plan to add personal retirement accounts to Social Security would be financed in part by new government borrowing. Bush has made reform of the U.S. retirement program a top priority in his second term and the White House said the president would discuss options in a meeting later in the day with top congressional leaders. "The president, at this point, has not endorsed ... (full story) Continue reading "Social Security Reform = New Debt"

Posted by mm at December 06, 2004 12:14 PM | Permanent Link | Comments (0)

SEC: Hedge Fund Advisers Must Register

The Securities and Exchange Commission released its final rule requiring most hedge fund advisers to register with the agency, effective Feb. 1, 2006. The 160-page rule, which was posted on the SEC's Web site www.sec.gov late last week, contains about 30 pages of dissent from Commissioners Paul Atkins and Cynthia Glassman. The SEC is requiring more regulation of hedge funds as their impact on capital markets increases. Hedge funds are pools of small groups of ... (full story) Continue reading "SEC: Hedge Fund Advisers Must Register"

Posted by mm at December 06, 2004 12:12 PM | Permanent Link | Comments (0)

'Phishing' Attacks Surge In 2004

The number of online identity theft attacks known as "phishing" surged in 2004, a practice that has now established itself as the main threat facing individual and corporate Internet users, according to study by MessageLabs released Monday. The firm said it has intercepted over 18 million phishing e-mails so far this year, which may mark just the beginning of a wave of attacks aimed at individuals and specific companies. In September, for example, MessageLabs found ... (full story) Continue reading "'Phishing' Attacks Surge In 2004"

Posted by mm at December 06, 2004 12:12 PM | Permanent Link | Comments (0)

Should You Be Buying Gold?

The price of gold remains above $450, the highest level in 16 years. And many market watchers expect the price to go higher still in 2005. The chief reason for the recent run on gold is the decline of the dollar. Since late 2002, the euro has risen from $1 to $1.30 in value -- and the U.S. dollar has fallen correspondingly against the euro and some other major currencies. Because of the dollar's reduced ... (full story) Continue reading "Should You Be Buying Gold?"

Posted by mm at December 06, 2004 10:34 AM | Permanent Link | Comments (0)

Selling Your Home

Thinking of cashing in your gains in the real estate market? Or maybe you're selling because you're changing jobs, downsizing, leaving the fast lane. Selling a home can be an intimidating prospect, but with the right preparation and attention to detail you can maximize your house's value. Whatever the reason for putting your abode on the auction block, you'll want to figure out the smartest way of doing it. Here are today's five tips. 1 ... (full story) Continue reading "Selling Your Home"

Posted by mm at December 06, 2004 10:19 AM | Permanent Link | Comments (0)

Money Market Funds Reinflate Fees

Back in the bad ol' days when the sluggish economy led to money market fund yields that were flirting with zero, some funds waived part or all of their expense fee to ensure that investors would garner at least some return. Now that the economy is flourishing enough for yields to rise, expense ratios are going up too. "Many of the waivers that were implemented were the result of a potentially negative yield -- which ... (full story) Continue reading "Money Market Funds Reinflate Fees"

Posted by mm at December 06, 2004 09:03 AM | Permanent Link | Comments (0)

The Disparate Consensus on Health Care for All

IN Washington, the phrase "universal coverage" is rarely mentioned as the way to provide health insurance for the 45 million uninsured Americans. It evokes memories of the Clinton administration's sobering failure to forge a national health care plan. Yet among health care experts there is a surprising consensus that the United States must inevitably adopt some kind of universal coverage. "Politically, it's like the electrified third rail on the subway - no one wants to ... (full story) Continue reading "The Disparate Consensus on Health Care for All"

Posted by mm at December 06, 2004 09:00 AM | Permanent Link | Comments (0)

December 05, 2004

More Tips to Slash Tax Tab

Here are some more year-end tax maneuvers that might help you cut your tax tab for this year. Q: What's the best timing for my income and deductions? A: Tax advisers often suggest that clients consider postponing income (such as year-end bonuses) into next year to defer the tax hit. For most people who itemize, the general advice is to accelerate deductions -- such as charitable donations and state and local tax payments -- into ... (full story) Continue reading "More Tips to Slash Tax Tab"

Posted by mm at December 05, 2004 07:54 PM | Permanent Link | Comments (0)

Five Books to Retire By

Don't laugh: A good gift for the holidays could be a book about retirement planning and nest eggs. If our mailbox is any indication, Americans have lots of questions about finances in later life. Each month, we hear from many hundreds of readers asking about Social Security, individual retirement accounts, annuities, estate planning and a dozen related topics. In particular, the shift away from traditional pensions and toward so-called defined-contribution plans, like 401(k)s, means that ... (full story) Continue reading "Five Books to Retire By"

Posted by mm at December 05, 2004 07:32 PM | Permanent Link | Comments (0)

Fed Sees Growth, Measured Rate Hikes

The U.S. economy should grow about 4.0 percent next year, giving the Federal Reserve (news - web sites) room to continue raising interest rates at a measured pace, Philadelphia Fed President Anthony Santomero said on Friday. In prepared remarks to the Philadelphia Fed's annual policy forum, Santomero said economic growth in this range should support continued "solid but moderate gains" in employment through next year. His comments were prepared before the release of the weaker-than-expected ... (full story) Continue reading "Fed Sees Growth, Measured Rate Hikes"

Posted by mm at December 05, 2004 04:46 PM | Permanent Link | Comments (0)

Weak Employment Rport Casts Doubts Over US Economic Strength

A weaker-than-anticipated report on the US labor market, showing just 112,000 jobs added in November, cast fresh doubts over the pace of growth of the world's largest economy. The slowdown in nonfarm payroll job creation -- seen as essential to sustainable economic growth -- came after a surge of 303,000 new jobs in October. Economists had been expecting, on average, some 200,000 new jobs in November. The unemployment rate dipped 0.1 percentage points to 5.4 ... (full story) Continue reading "Weak Employment Rport Casts Doubts Over US Economic Strength"

Posted by mm at December 05, 2004 04:44 PM | Permanent Link | Comments (0)

Fed: Inflation Not Setting Off Alarms

The Federal Reserve (news - web sites), while remaining watchful as prices and interest rates tick higher, is holding to its mantra that rate increases will be "measured," senior Fed officials indicated on Friday. They also said they expect solid economic growth, although uncertainty still seems to be restraining firms from hiring in the numbers usually seen in an economic expansion. Earlier on Friday, the government reported just 112,000 jobs were created in November, well ... (full story) Continue reading "Fed: Inflation Not Setting Off Alarms"

Posted by mm at December 05, 2004 04:43 PM | Permanent Link | Comments (0)

The Tax Man May Take a Bite

Stocks may come under pressure next week as investors sell shares at year's end to prepare for tax season. But crude oil prices, earnings outlooks and moves in the dollar will also be closely watched. Economic data on productivity and labor costs, producer prices and consumer sentiment are due and will be read for hints on the health of the economy and signs of inflation. "What we're going to see next week is a continued ... (full story) Continue reading "The Tax Man May Take a Bite"

Posted by mm at December 05, 2004 04:41 PM | Permanent Link | Comments (0)

China Pledges Stable Policies

Chinese leaders closed a key economic meeting on Sunday with pledges to maintain stable fiscal and monetary policies in 2005 and keep a tight lid on fixed-asset investment, state radio said. "We will implement stable monetary and fiscal policies and continue to contain excessively rapid growth in fixed asset investment," state radio said, citing an announcement after the closing of the annual Central Economic Work Conference. "The macro-economic controls are timely and effective," it said ... (full story) Continue reading "China Pledges Stable Policies"

Posted by mm at December 05, 2004 04:40 PM | Permanent Link | Comments (0)

The Insiders Are Selling. But Is That So Bad?

NEW research shows that pessimists are on shaky ground when they argue that recent heavy selling by company insiders is a bearish sign for the stock market. Insiders, of course, are a company's officers, directors and largest shareholders. Laws require them to report to the Securities and Exchange Commission whenever they buy or sell shares of their company's stock. For decades, investors have paid close attention to what insiders at a business are doing, on ... (full story) Continue reading "The Insiders Are Selling. But Is That So Bad?"

Posted by mm at December 05, 2004 04:36 PM | Permanent Link | Comments (0)

Bush Signs Internet Tax, Special Ed Bills

WASHINGTON (AP) - State and local governments will be barred from taxing connections that link people to the Internet for the next three years under legislation signed Friday by President Bush. The measure blocks taxation of all types of Internet connections, from traditional dial-up services to high-speed broadband lines. "I cannot envision any time in the history of our country when it would make sense to be imposing taxes on broadband or the Internet, no ... (full story) Continue reading "Bush Signs Internet Tax, Special Ed Bills"

Posted by mm at December 05, 2004 04:33 PM | Permanent Link | Comments (0)

Giving Children Funds As Gifts

If you're tired of fighting traffic, can't find the right thing for your kids online or simply want to try to give a gift with a purpose this year, go fund shopping. There are no lines, no congested parking lots and a huge selection, but there are also a few twists to navigate and decisions to make. With that in mind, here's a holiday shopper's guide to giving children funds as gifts. For starters, enter ... (full story) Continue reading "Giving Children Funds As Gifts"

Posted by mm at December 05, 2004 08:06 AM | Permanent Link | Comments (0)

December 04, 2004

How to Deal With Your Debts

Once you've obtained credit, it's easy to be overwhelmed. You may overspend, become ill, or lose your job, making it difficult to keep up with your bills. If you cannot resolve your credit problems alone or you need additional assistance, you may wish to contact an agency like the National Foundation for Consumer Counseling: http://www.nfcc.org. This is a non-profit organization which provides member agencies by location for consumers who are in debt. A counselor from ... (full story) Continue reading "How to Deal With Your Debts"

Posted by mm at December 04, 2004 09:05 AM | Permanent Link | Comments (0)

Conforming Mortgage Loan Limits Rise For 2005

Borrowers can get larger loans in 2005 without having to pay higher rates for jumbo mortgages. Mortgage funding titans Fannie Mae and Freddie Mac have raised their 2005 conforming limit to $359,650, up from the 2004 limit of $333,700. It represents a 7.7 percent increase. Conforming loans are mortgages that conform to rules set by Fannie Mae and Freddie Mac, which keep mortgage money flowing to consumers by buying mortgages from lenders, bundling them and ... (full story) Continue reading "Conforming Mortgage Loan Limits Rise For 2005"

Posted by mm at December 04, 2004 08:59 AM | Permanent Link | Comments (0)

The Wide World Of Online Shopping

Got a hankering for your hometown special? Look no further than your nearest computer. From Philly cheesesteaks to New York cheesecakes, Texas chili to New Mexico chili peppers, you should have no problem finding your latest craving on the Internet. Not hungry? You can promise your loved one the moon and pick up the property deed online. "It opens the world to you," says Barbara Kasser, author of the 2005 Online Shopping Directory for Dummies ... (full story) Continue reading "The Wide World Of Online Shopping"

Posted by mm at December 04, 2004 08:58 AM | Permanent Link | Comments (0)

10 Tax Time Bombs To Defuse Now

There's always too much to do and not enough time to do it during the hectic holiday season. But you need to add one more item to your must-do list: a quick tax checkup. Spending a few minutes on your taxes now can pay off at filing time. Defuse these 10 tax time bombs by Dec. 31, and you won't have to call in an accounting SWAT team on April 15. 1. Get in the ... (full story) Continue reading "10 Tax Time Bombs To Defuse Now"

Posted by mm at December 04, 2004 08:56 AM | Permanent Link | Comments (0)

Shopbots: Your Own Automated Shopping Assistant On The Web

A shopbot is the perfect marriage of science and convenience. Go to a site, ask for what you want to buy, and the computer searches the Web and presents a selection of retailers, deals and prices. But, like anything else, it's not perfect. Many retailers pay for better placement on shopping sites so the selections that come up first are not necessarily the best deals. And unless you're dealing with the total cost, including shipping ... (full story) Continue reading "Shopbots: Your Own Automated Shopping Assistant On The Web"

Posted by mm at December 04, 2004 08:51 AM | Permanent Link | Comments (0)

Property Taxes Rising Nationwide

While fuel prices may be starting to skid, there's another expense closer to home that is upsetting many Americans: rising property taxes. From Madison, Wis., to Bucks County, Pa., the local tax assessor is dipping deeper into homeowners' pockets as real estate prices rise and states share less of their tax revenue with local governments. With people starting to receive their 2005 tax bills, the levies are squeezing the middle class and senior citizens ... (full story) Continue reading "Property Taxes Rising Nationwide"

Posted by mm at December 04, 2004 08:42 AM | Permanent Link | Comments (0)

Noncash Gifts To Charities Can Be Deducted

Containers for charitable contributions are everywhere during the holiday season: Buckets for bell ringers on the sidewalk, boxes for toys in the workplace and baskets for food donations at the supermarket. Donating new and used items to charity can be beneficial for your taxes as well as helpful for people in need. But before you donate, remember these simple tips: - Give wisely. Your total charitable donations, including cash and noncash items, are limited to ... (full story) Continue reading "Noncash Gifts To Charities Can Be Deducted"

Posted by mm at December 04, 2004 08:24 AM | Permanent Link | Comments (0)

Balancing Act On The Buck

President Bush has another Texas-sized challenge on his hands. He wants to navigate an already weaker dollar low enough to shrink the trade deficit and rein in concerns that the nation's excessive borrowing and spending runs the risk of a global economic implosion. And yet, a currency-policy mistake could tip the United States into another recession. The next few months may determine whether a depreciating U.S. dollar remains just a challenge -- short-term pain for ... (full story) Continue reading "Balancing Act On The Buck"

Posted by mm at December 04, 2004 08:22 AM | Permanent Link | Comments (0)

Traveler: Know Your Options

You're looking forward to that much-needed vacation or family visit this holiday season -- but brace yourself now for travel shakeups, as airlines cancel flights and adjust schedules to make the most of their stretched-thin dollars. While airlines make most schedule changes months in advance, thus affecting fewer travelers, frequent fliers are well aware carriers sometimes call just weeks ahead to warn of a cancellation and offer a spot on an alternate flight. Travelers' options ... (full story) Continue reading "Traveler: Know Your Options"

Posted by mm at December 04, 2004 08:14 AM | Permanent Link | Comments (0)

Worried Merchants Throw Discounts at Shoppers

Got a credit card ready? The markdowns have begun. America's merchants, shocked by a mediocre post-Thanksgiving weekend, are rushing to mark down their merchandise - way before the majority of holiday shoppers have even seen it. At the beginning of November, merchants had reduced prices on 5 percent fewer of their goods than last year, according to John D. Morris, a retail analyst with Harris Nesbitt who keeps an annual holiday markdown index. "There's been ... (full story) Continue reading "Worried Merchants Throw Discounts at Shoppers"

Posted by mm at December 04, 2004 08:01 AM | Permanent Link | Comments (0)

December 03, 2004

FACTA & Your Credit

A new federal law that entitles consumers to free credit reports sounds great, but the devil is definitely in the details. The Fair and Accurate Credit Transactions Act (FACTA), which went into effect this week, entitles consumers to access to one free credit report from each of the three major credit unions every year. But experts say getting the info is made difficult, if not impossible, by advertising come-ons and confusing pitches. Here's how to ... (full story) Continue reading "FACTA & Your Credit"

Posted by mm at December 03, 2004 03:09 PM | Permanent Link | Comments (0)

Job Growth Is Well Below Wall Street Forecasts

WASHINGTON, Dec. 3 - The economy added 112,000 payroll jobs in November, the Labor Department reported today, far fewer than the month before and not enough to keep up with growth in the adult population. The gain was well below Wall Street forecasts for an increase of about 200,000 jobs, and employment in manufacturing remained stagnant for the third month in a row. The overall unemployment rate slipped to 5.4 percent last month from 5.5 ... (full story) Continue reading "Job Growth Is Well Below Wall Street Forecasts"

Posted by mm at December 03, 2004 12:20 PM | Permanent Link | Comments (0)

Fed President: Measured Hikes Ahead

The economy should grow about 4 percent next year, giving the Federal Reserve room to continue raising interest rates at a measured pace, Philadelphia Fed President Anthony Santomero said Friday. In prepared remarks to the Philadelphia Fed's annual policy forum, Santomero said economic growth in this range should support continued "solid but moderate gains" in employment through next year. His comments were prepared before the release of the weaker-than-expected November payrolls report Friday. "Looking ahead ... (full story) Continue reading "Fed President: Measured Hikes Ahead"

Posted by mm at December 03, 2004 11:32 AM | Permanent Link | Comments (0)

December 02, 2004

Fed Reports Growth In 11 Of 12 Regions

Eleven of 12 U.S. regions showed stronger economic growth in the past month, the Federal Reserve reported Wednesday in its Beige Book report on the economy. Only the Cleveland region bucked the improving trend, the Fed said. Reports from thousands of contacts in the 12 Federal Reserve regions "generally paint a picture of continued economic growth," the report said. Retail sales were said to be mixed across regions, while hiring has improved throughout the nation ... (full story) Continue reading "Fed Reports Growth In 11 Of 12 Regions"

Posted by mm at December 02, 2004 04:23 PM | Permanent Link | Comments (0)

Inflation Under Control, Fed Gov. Says

Inflation is under control and is expected to remain tame, said Federal Reserve Board governor Ben Bernanke Thursday. "I think inflation is still quite well-contained. And I think inflation expectations are well-contained," Bernanke told reporters after a speech to the National Economics Club. "Whatever risks exist are not large ones," he said. But as the economy approaches full-employment over the next year or so, and as pricing power returns a bit, "we need to be ... (full story) Continue reading "Inflation Under Control, Fed Gov. Says"

Posted by mm at December 02, 2004 04:21 PM | Permanent Link | Comments (0)

Tax Policy Promotes Early Retirement

It has become widely accepted that many Americans will have to work part-time during "retirement" to maintain their living standards. But a new study has found that taxes, direct and indirect, will eat up much of what those people might earn. In short, it won't pay to work after about age 66, because you'll take in after taxes as much from your pensions and Social Security as you would by working. Encouraging work at older ... (full story) Continue reading "Tax Policy Promotes Early Retirement"

Posted by mm at December 02, 2004 04:20 PM | Permanent Link | Comments (0)

Fidelity Analyzes Pension Performance

Pension plans whose current assets match or exceed their future liabilities perform better on average than their underfunded brethren, according to a study released Wednesday by Fidelity Investments, the biggest U.S. mutual fund company. Of 120 defined benefit pension plans responding to the survey, 43, or 36 percent, were overfunded, said Drew Lawton, president of Fidelity Management Trust Co. If applied to all U.S. pension plans, that 36 percent would translate to 2,635 out of ... (full story) Continue reading "Fidelity Analyzes Pension Performance"

Posted by mm at December 02, 2004 04:19 PM | Permanent Link | Comments (0)

Funds Take In $14 bln In October

Investors put $13.9 billion into stock and bond mutual funds in October, down from the $21.5 billion total the previous month, according to estimated asset flows released Tuesday by Financial Research Corp. Domestic stock funds saw inflows of $8.1 billion in October compared with inflows of $11.4 billion in September. Investors added $7.7 billion to funds that invest in international equity funds, roughly the same amount as September. American Funds continued its run as the ... (full story) Continue reading "Funds Take In $14 bln In October"

Posted by mm at December 02, 2004 04:18 PM | Permanent Link | Comments (0)

2004 Year-End Tax Planning Moves

Posted by mm at December 02, 2004 12:09 PM | Permanent Link | Comments (0)

Bargains On Stranded Cars

Automakers are having a harder time clearing their lots of the previous year's models, according to two leading auto sales trackers. Data from Edmunds.com and the Power Information Network, an affiliate of J.D. Power & Associates, both show that 2004 models are making up a larger percentage of sales this fall than in the past. The trend means better bargains available for car buyers willing to take those older model vehicles. It also means still ... (full story) Continue reading "Bargains On Stranded Cars"

Posted by mm at December 02, 2004 11:25 AM | Permanent Link | Comments (0)

Warning On Internet Loans

The Consumer Federation of America has warned borrowers about the costs and risks of using Internet payday loan sites that make relatively small loans to consumers for short periods of time. The non-profit association said Tuesday the loans typically cost $25 per $100 borrowed and must be repaid or refinanced by the borrower's next payday. That cost for a two-week loan works out to 650 percent annual interest rate (APR). But the consumer group says ... (full story) Continue reading "Warning On Internet Loans"

Posted by mm at December 02, 2004 11:22 AM | Permanent Link | Comments (0)

High Court Sets Truth In Lending Limit

The Supreme Court ruled Tuesday the federal truth in lending law caps damages at $1,000 for violations of its requirements for consumer loans secured by personal property, such as a motor vehicle. The law instructs lenders to disclose certain information to borrowers and imposes civil liability on those who fail to do so. It allows damages double the amount of the finance charge, but for each violation, Congress specified a minimum recovery of $100 and ... (full story) Continue reading "High Court Sets Truth In Lending Limit"

Posted by mm at December 02, 2004 11:20 AM | Permanent Link | Comments (0)

Regifting 101

Many Americans were shopping up a storm last week, picking out the perfect gifts for friends and loved ones. But the truth is your friends and loved ones may not love the gifts you've chosen. Or they might give you one you're not crazy about. Many people get gifts they don't want, don't need or don't like. Those people sometimes pass those gifts on to someone else. Call it tacky or call it rude, but ... (full story) Continue reading "Regifting 101"

Posted by mm at December 02, 2004 11:19 AM | Permanent Link | Comments (0)

Bank Machine Dispenses Fake Money

Canadian Imperial Bank of Commerce, already taking heat for accidentally faxing customers' financial information to a U.S. scrapyard, apologized on Wednesday after one of its cash machines dispensed fake money. Instead of distributing C$20 bills, the machine, located in the Maritime province of New Brunswick, spat out colorful bills used as incentives at Canadian Tire Corp. hardware stores. "The Canadian Tire money was contained within a bulk of regular currency, and it was apparently loaded ... (full story) Continue reading "Bank Machine Dispenses Fake Money"

Posted by mm at December 02, 2004 09:55 AM | Permanent Link | Comments (0)

Health Costs Up 7.5%

Health insurance may be out of reach for more Americans as medical costs rose faster than worker income in the first half of the year, according to a closely watched survey released Thursday. Private-sector spending on health care climbed 7.5 percent in the first half of 2004, which matched the 2003 growth rate but still significantly outpaced growth in the overall economy, according to a study by the Center for Studying Health System Change and ... (full story) Continue reading "Health Costs Up 7.5%"

Posted by mm at December 02, 2004 09:54 AM | Permanent Link | Comments (0)

Google CEO Proud Of Dutch Auction IPO

The chief executive of Google Inc. said the Web search company was "proud" of its recent auction-style initial public offering, but said he did not know if it would change the way companies choose to go public in the future. "We're very proud of it," Google Chairman and CEO Eric Schmidt said at an event hosted by BizWorld, a program that teaches entrepreneurship to school children. Nevertheless, Schmidt said he was not sure if Google ... (full story) Continue reading "Google CEO Proud Of Dutch Auction IPO"

Posted by mm at December 02, 2004 09:52 AM | Permanent Link | Comments (0)

Dollar Struggles From New Lows

The dollar struck another record low against the euro and a five-year low on the yen Thursday, while bonds were little changed following a mixed jobless claims report. Early morning in New York, the euro was unchanged from late Wednesday at $1.3323, with the dollar struggling to regain ground after falling to a new low of $1.3380 earlier in the day. The dollar bought ¥102.67, also little changed from late Wednesday, after hitting a five-year ... (full story) Continue reading "Dollar Struggles From New Lows"

Posted by mm at December 02, 2004 09:51 AM | Permanent Link | Comments (0)

Get Your Car Ready for a Fast Giveaway

If a lot of old cars disappear from your neighborhood before the end of the year, don't blame thieves. Blame Congress. After years of fretting that people were ripping off the IRS by claiming exorbitant tax deductions for clunkers that they gave to charities, lawmakers have cracked down with a vengeance. Under the current law -- which covers donations through December 31 -- you can deduct the fair market value of the car. If it's ... (full story) Continue reading "Get Your Car Ready for a Fast Giveaway"

Posted by mm at December 02, 2004 09:46 AM | Permanent Link | Comments (0)

Don't Fear the Use-It-Or-Lose-It Rule

This is the time of year millions of employees are asked to sign up for reimbursement plans at work to pay for child care and medical bills. And far too many of us take far too little advantage of this terrific fringe benefit. The beauty of these plans is that they let you pay your bills with pre-tax dollars. Salary that goes into the plans dodges federal income and social security taxes and, in all ... (full story) Continue reading "Don't Fear the Use-It-Or-Lose-It Rule"

Posted by mm at December 02, 2004 09:45 AM | Permanent Link | Comments (0)

Why Consumers Hate Mergers

Renee Roberts of Antelope, Calif., still gets steamed when she thinks about what happened to her after Comcast bought AT&T Broadband for more than $50 billion two years ago. She says the company lost her $155 payment in its newly integrated automated system -- and then brushed her off. "No one cared," Roberts complains. "The attitude was 'we're big, so you have to deal with us."' Comcast concedes that it made some billing mistakes after ... (full story) Continue reading "Why Consumers Hate Mergers"

Posted by mm at December 02, 2004 09:41 AM | Permanent Link | Comments (0)

Social Security COLA Increase Looks Puny

SOCIAL Security will save billions of dollars in cost of living increases because of a fortuitous decision in September by the people who compile the nation's inflation numbers. But if you look at the figures that determine how much of a raise retirees get each year, you have to wonder whether the good fortune was helped along by some Washington self-dealing. Cost of living increases are determined by the average increase in the consumer price ... (full story) Continue reading "Social Security COLA Increase Looks Puny"

Posted by mm at December 02, 2004 09:40 AM | Permanent Link | Comments (0)

Nothing Ventured, Everything Gained

A new trading tactic that could tip proxy fights and takeover battles has emerged from the shadows of the hedge fund industry, igniting outrage among some investors and corporate governance experts. The tactic is a complex hedging technique that allows an investor to buy a voting stake without actually holding an economic interest in the company. While Wall Street has long speculated about such a tactic, it was not until this week that the first ... (full story) Continue reading "Nothing Ventured, Everything Gained"

Posted by mm at December 02, 2004 09:37 AM | Permanent Link | Comments (0)

December 01, 2004

Don't Neglect Renter's Insurance

Here are a few important, little-known facts about renter's insurance: If you have an unrelated roommate and you get renter's insurance, your roommate isn't likely to be covered. Standard policies cover relatives living with you, but that's it. Don't assume that your policy covers everything. Read the details. For example, most standard policies don't cover earthquake damage. So, if earthquakes are a real threat to you, ask about additional earthquake coverage. You might be able ... (full story) Continue reading "Don't Neglect Renter's Insurance"

Posted by mm at December 01, 2004 02:00 PM | Permanent Link | Comments (0)

Account Aggregation: All-In-One Convenience

You have a checking account and a credit card from one bank, charge cards from two other banks, and a portfolio at an online brokerage. On top of that, you belong to two frequent-flier clubs. Congrats. You're doing well. There's another piece of good news: All of these accounts can be monitored on the Web, so you can look at your checking balance, see when your next payment is due, and swoon at your portfolio's ... (full story) Continue reading "Account Aggregation: All-In-One Convenience"

Posted by mm at December 01, 2004 12:41 PM | Permanent Link | Comments (0)

12 Tips For Wise Use Of Equity

Before taking a home equity loan, look over these guidelines. 1. Make your mortgage payments a priority. It's your home that's on the line. 2. Don't go with a high loan-to-value product. Lenders who let you borrow more than your house is worth may not be doing you a favor. 3. If you like plastic too much, forgo using a credit card to access a line of credit and get checks instead. Paper is a ... (full story) Continue reading "12 Tips For Wise Use Of Equity"

Posted by mm at December 01, 2004 12:37 PM | Permanent Link | Comments (0)

Partnerships Lose Tax Exclusion On Canceled Debt

For some real-estate investors, the "workout" just got a lot harder. A little-noticed but significant provision in the tax bill signed into law by President Bush in October makes it more difficult for certain real-estate investors to renegotiate the terms of loans on their properties in the event those properties decline in value, a process known as a debt workout. Under the provision, investors in partnerships will no longer be able to automatically exclude canceled-debt ... (full story) Continue reading "Partnerships Lose Tax Exclusion On Canceled Debt"

Posted by mm at December 01, 2004 11:55 AM | Permanent Link | Comments (0)

The Right (and Wrong) Way To Protect Yourself Against The Falling Dollar

What if the buck doesn't stop here? Investors are shoveling money into foreign-stock and bond mutual funds, hoping to profit from the tumbling dollar. I fear, however, that many of these folks will be a tad disappointed. According to the Investment Company Institute in Washington, foreign-bond funds have attracted $3.8 billion from investors so far this year, up 61% from the same stretch in 2003, while foreign-stock funds have pulled in $50.6 billion, a staggering ... (full story) Continue reading "The Right (and Wrong) Way To Protect Yourself Against The Falling Dollar"

Posted by mm at December 01, 2004 11:53 AM | Permanent Link | Comments (0)

A Tax Break for Your Kidney

The critical shortage of organs for people awaiting transplants long has vexed policy makers and doctors. Now, an unusual approach is gaining momentum: using the tax code to encourage more people to donate. The effort started earlier this year when Wisconsin began permitting organ donors to deduct as much as $10,000 for their travel and lodging costs and lost wages. Georgia followed suit in April. At least 10 other states, including New York, New Jersey ... (full story) Continue reading "A Tax Break for Your Kidney"

Posted by mm at December 01, 2004 11:47 AM | Permanent Link | Comments (0)

Free Credit Reports May Reveal Surprises

Sylvia Gallow-Vazquez was shocked earlier this year when she applied for a Discover credit card and was denied because of poor credit history. Her credit had been impeccable. She had never been denied a loan before. And she had never even been late on her bills, as far as she could remember. The Tempe, Ariz. resident was hoping to use the card, which promised zero percent interest for 6 months, to pay for night school ... (full story) Continue reading "Free Credit Reports May Reveal Surprises"

Posted by mm at December 01, 2004 11:12 AM | Permanent Link | Comments (0)

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