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2014:
Investment information for the year 2014 & beyond
in the following 3 articles
Article 1 of 3 (Article 2 of 3 next below)
Study all these 3 articles
Two Who Got 2013 Right
See 2014 as Much the Same
(1) Abby Joseph Cohen of Goldman Sachs and (2) Bill Miller of Legg Mason
click green:
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Introducing the two Wall Street Wizards
(a wizard = a skilled or clever person, magician e.g.: a wizard at investments)
(1) Abby Joseph Cohen (born 1952 in Queens, New York) is an American economist and financial analyst on
Wall Street. She is a partner and—as of March 2008—Senior U.S. investment strategist at Goldman Sachs responsible for leadership of the firm's Global Markets Institute. Prior to that date, she was Chief Investment Strategist.In 2001 she was named one of the 30 most powerful women in America by Ladies Home Journal.
For further info click: Abby Joseph Cohen
(2) Bill Miller is Chairman and former Chief Investment Officer of Legg Mason Capital Management, a subsidiary of Legg Mason, Inc.
He is formerly the portfolio manager of the Legg Mason Capital Management Value Trust (Mutual fund: LMVTX) and is currently the portfolio manager of the Legg Mason Opportunity Trust (Mutual fund: LMOPX) mutual funds. Miller is also Chairman Emeritus of the Santa Fe Institute.
Miller was ranked among the top 30 most influential people in investing when he was named a member of the "Power 30" by SmartMoney.
He was also named by Money magazine as "The Greatest Money Manager of the 1990's" and named Morningstar's 1998 "Domestic Equity Manager of the Year." In 1999, he was selected as the "Fund Manager of the Decade" by Morningstar.com. Also in 1999, Barron's named him to its
All-Century Investment Team and Business Week called him one of the "Heroes of Value Investing."
Click for additional investment info: JAMES B. STEWART
After a banner year for stocks and a rocky one for bonds, market forecasters are remarkably consistent in their forecasts for 2014: more of the same.
Most forecasters are warning stock investors not to expect another year of 30 percent gains, as there was in the Standard & Poor’s 500-stock index in 2013. (The average forecast is for a 6 percent rise in the S.&P. 500, according to Bloomberg.) But the two analysts I selected for this column — Abby Joseph Cohen of Goldman Sachs and Bill Miller of Legg Mason, both of whom were remarkably accurate about 2013 — said another year of strong double-digit gains would not shock them. “We could easily see gains of more than 20 percent” in stocks, Mr. Miller told me. “And the market wouldn’t be overpriced at that level.”
In the many years I’ve been surveying experts for their predictions for the coming year, I cannot recall another time when optimism about the stock market, the economy and corporate profits was so widespread.
As is pessimism about the bond market.
The stock market’s relentless rise this year seems to have tamed all but a few perma-bears. When the Federal Reserve said in September that the economy was too weak for the central bank to taper its purchases of securities, stocks went up. And when the Fed said in December that it would begin to taper — stocks still went up.
The only thing that seemed to stop stocks’ inexorable rise was Congress’s self-destructive gridlock, and even that didn’t last long.
Still, such unanimity may be the most worrisome portent for 2014. As Karl Case, emeritus professor of economics at Wellesley College and a co-founder of the S.&P./Case-Shiller index of housing prices, put it, “When everyone expects something to happen, that’s when it doesn’t.” But neither he nor anyone else I consulted this year was willing to break ranks with the consensus.
“It gives me pause,” Ms. Cohen, senior investment strategist for Goldman Sachs and president of the Global Markets Institute, said, referring to the bullish herd mentality that has gripped Wall Street. “But there’s no reason to be a contrarian just for the sake of being contrarian. I look at the fundamentals. Even after such a strong year in 2013, I think it will continue.”
Ms. Cohen was almost exactly right a year ago, when she predicted the S.&P. 500 would end 2013 at 1,787. (It closed at 1,848.) At the time, her forecast seemed wildly bullish, especially since stocks were at near record levels, and had registered gains four years running. “There was a significant mispricing of assets a year ago,” she said, referring to both stock prices (too low) and bonds (inflated).
That’s not as obvious now that stocks have gained. “There’s something artificial about current asset prices, which have been largely driven by liquidity,” she said. “But we’ve begun a transition to valuations that are driven by fundamentals.” And those, she said, are strong. She cited an expanding United States economy, higher job creation, gains in labor productivity, lower energy prices and subdued inflation. “This will provide staying power,” she said.
Goldman Sachs’s baseline forecast for the S.&P. 500 at the end of 2014 is 1,900, or a modest 3 percent gain. But that assumes no expansion in the market’s price-to-earnings ratio. In similar periods with low inflation, market multiples have ranged from 18 to 20 times projected earnings, Ms. Cohen said, compared to the market’s current valuation of about 15 times earnings. If that multiple expands to 19, the S.&P. 500 would rise to about 2,200, according to the Goldman Sachs model. That would produce a 19 percent rise in the S.&P. 500.
Mr. Miller, who runs the Legg Mason Opportunity Trust, returns to this column for the third consecutive year. He was also accurate in his forecast for 2013, and as a mutual fund manager, he put his money behind his forecast: His fund rose a remarkable 67 percent in 2013 on the heels of a 40 percent gain in 2012, helping him regain his sterling reputation for stock-picking, which was briefly tarnished by the financial crisis. (Before 2008, Mr. Miller’s fund outperformed the S.&P. 500 for a record 15 consecutive years.)
Mr. Miller cited many of the same economic fundamentals as Ms. Cohen. At the same time, he saw little danger on the horizon. “Recession? An oil price spike? Sudden tightening by the Fed? I don’t see any of that. The path of least resistance is for the market to go higher.”
And he, too, wouldn’t be surprised to see the market’s price-to-earnings ratio expand, driving up prices. “Historically, in the late stages of a bull market, stocks reach very high multiples, in the range of 20 to 22,” he said. While he doesn’t set a numerical target for the S.&P. 500, he said he expected returns at least “in the low to midteens,” and gains of more than 20 percent were possible. “There’s really no catalyst for a down market,” he said.
Mr. Miller’s fund scored in 2013 by investing in Netflix, Best Buy, Delta Air Lines, E-Trade Financial and Genworth, which he considered wildly undervalued. “You won’t find many of those in today’s market,” he said, although he’s keeping an eye on J. C. Penney as a potential turnaround story. “With even a little good news it will jump 50 percent,” he said.
This year, he likes the housing sector, financials, technology and airlines. Apple remains one of his fund’s biggest holdings, and he still likes both Delta Air Lines and United Airlines, which should benefit from industry consolidation after the American-US Airways merger. “I think United could double in three years,” he said, adding: “There’s a dramatic industry turnaround in progress.”
When Bill Gross, the highly regarded bond expert and a founder of the investment firm Pimco, predicted last year in this column that there would be “ashes in our stockings” for bond investors, he was right — although Christmas came in May, when the bond market plunged on a mere hint from the Fed chairman Ben Bernanke that the central bank might begin tapering its purchases of securities sooner than expected.
A Bank of America index of the total returns on United States government bonds fell 3.2 percent for the year, the first annual decline since 2009. And while Mr. Gross’s Pimco Total Return Fund did a little better, it still dropped nearly 2 percent — its first annual loss since 1999. It also lost its title as the world’s largest mutual fund.
Many sectors, like high-yield and municipal bonds, fared much worse.
Investors shouldn’t expect anything much better in 2014, Mr. Gross said. “It’s almost as obvious now as it was a year ago,” he told me. “All bonds are still artificially priced, and that means artificially high. So the question becomes, ‘Does that change anytime soon?’ ” He noted that the Fed had been very cautious and has pledged to keep rates low for the foreseeable future. So after May’s sudden disruption, the rise in interest rates has been gradual. “I think the trend will continue in 2014,” Mr. Gross said.
Still, he said: “Ultimately, if you’ve got artificial prices, at some point, those prices begin to head down like we saw in May. That was a wake-up call to mom-and-pop investors that bonds can go down. I think sitting on cash is O.K. It’s hideous in concept. My money market fund yields 0.01 percent. You can do a little better in a short-term Treasury fund or exchange-traded fund. But we’re down to slim pickings, as we say.”
One reason for recent strength in the economy — and resulting pressure on interest rates — is the continuing rebound in real estate, which rose a better-than-expected annualized rate of 13.6 percent through October, according to the latest S.&P./Case-Shiller 20-city home price index. That came as no surprise to Professor Case, who told me last year that it was a terrific time to buy real estate and accurately called the bottom of the real estate slump in this column the year before.
“The fundamentals are there to support a pretty good run-up,” he said at the time. “But the pace of gains is slowing down. People are getting more cautious. Apart from a few pockets, you’re not going to see annualized double-digit gains in housing prices. That’s completely irrational.” Interest rates remain a wild card. “Everyone thinks they’re going higher, but who’s to say?” he said. He noted that current 30-year fixed rates of about 4.5 percent were low by historical standards. “So over all, I’m cautiously optimistic, but there are a lot of minefields,” he said.
click for additional investment info: JAMES B. STEWART
Source: (1) NYT, (2) STAF, Inc.
(Article 2 of 3 next below)
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Article 2 of 3 (Article 1 of 3 next above)
Divining a 5-Year Investment Strategy
to divine = to guess; the art or act of foretelling future events or revealing occult (= magic) knowledge
The article is written by:
By PAUL SULLIVAN
Paul Sullivan writes the Wealth Matters column for The New York Times. He has written about issues concerning the wealthy – from private banking and wealth management to philanthropy and inheritance battles – for many years. In addition to The Times, his stories have appeared in Conde Nast Portfolio, The International Herald Tribune, Barron’s and the Financial Times, where he was that paper’s first dedicated reporter covering high-net-worth investors. Mr. Sullivan’s first book “Clutch: Why Some People Excel Under Pressure and Others Don’t” was published in September, 2010. He received history degrees from Trinity College and the University of Chicago. His Web site can be found at pauljsullivan.com.
FIVE years ago, it would have been easy to predict that the stock market would be higher today than it was then. But no one would have paid attention. Stocks were in a free fall and wouldn’t hit bottom for two more months.
Today, after a year in which the Standard & Poor’s 500-stock index rose almost 30 percent, there are plenty of views on what the next five years might look like, but they’re not in agreement. Plenty of people question whether the next five years can be as good as the last five. They base their concern on stock indexes setting records, while other parts of the economy, like jobs, continue to lag. On Friday, the S.&P. 500 closed at 1,831.37.
Other people see the fundamentals of United States companies as so solid that stocks will continue to do well despite their large run-up. “I think we’re in for a long bull market and economic expansion that will be a little longer than average,” said Marty Sass, chairman and chief executive of M. D. Sass, which manages $6 billion. “That’s my best guess.”
When you’re looking out three to five years, guessing would seem to be part of it. While the one-year predictions I wrote about last week can be thrown off by an unexpected event or two, the medium-term view should be based on economic and corporate fundamentals, whether the prevailing mood is as dire as it was in 2009 or as cautiously optimistic as it is today.
This is where my interest in the three- to five-year investment outlook comes in. Back in 2009, the economy could have continued getting worse for longer than it did, but it would have turned around at some point. Today, some investors have the opposite concern, that the good times have run too long and there is a correction coming.
Regardless of whether a correction comes or not, this is where the medium-term projection should have value. Instead of reading tea leaves, it should be able to assess tectonic shifts. So now that we’re in 2014, I wanted to consider what investment strategists think the near future could bring.
TRENDS Some of their views are very broad — like stocks continuing to do well because of solid corporate earnings, low inflation and little pressure to raise wages given how high unemployment remains. But other views are based on stories that could play out for far longer than five years.
Production of oil and gas in the United States, for one, is expected to be stronger in five years. This is based on proven reserves and new drilling techniques. Saying what will happen in six to 12 months in this industry, though, is always difficult: A pipeline could explode, turmoil in the Middle East could impact prices, or regulation in Washington could cost companies more money. Longer term, the issue is supply and demand.
“We’ve discovered through this shale drilling how to exploit much more natural gas than we ever thought we could,” said Kent Croft, chief investment officer of Croft Leominster. “Have all the stocks been the greatest this year? No. Do I expect them to outperform over time? I certainly do. I think this is one of those watershed moments in the U.S. economic outlook.”
The mobile technology sector is another longer-term play. Mr. Sass said payment processors like PayPal were set to increase their processing of payments online but also to reach more into retail stores. And, of course, more of everything is moving to mobile devices, and companies are going to look to profit from that.
In other industries, like airlines and television broadcasting, consolidation is going to make stronger companies over the medium term. “These are industries that have gone from horror shows to very compelling plays,” Mr. Sass said.
RISKS There are plenty of risks to the medium-term view. Kate Moore, United States chief investment strategist for J. P. Morgan Private Bank, said her clients generally had concerns about three big themes.
They worry first, she said, about how much higher equity prices can go. After four and a half years of prices going higher, they ask her when the rally is going to end. “This is where we’ll walk them through corporate fundamentals and show them balance sheets and how margins can be sustainable,” she said. “We find that most valuations are below 10- to 15-year historical norms.”
The two other worries are what will happen to China and Europe. With China, she said, the concern is that the country’s economic growth is going to slow and drag down the global economy. “There are some areas of the market, particularly in the resource space, that have overcapacity,” she said.
Michael Tiedemann, chief investment officer of Tiedemann Wealth Management, said he saw China as one of the two big questions over the next three to five years.
(The other was how tighter rules on bank lending and the Federal Reserve’s gradual end to buying bonds will play out.) He is not confident that China will be able to handle its transition from an export-based economy to a more balanced one smoothly.
“We’re not predicting it’s going to go badly, but along the way perhaps there will be conflicting signals,” he said. And that calls for investors to be prepared for some volatility.
The questions about Europe revolved around whether the Continent had gotten over its problems. “They’re either convinced that Europe is going to grow strongly next year because they’ve seen an appreciation of assets,” Ms. Moore said. “Or they’re very skeptical about institutional change and the capability to bring together so many different countries for cohesive change.” (Her view is some place in the middle, she said.)
But Dean Tenerelli, European stock fund manager at T. Rowe Price, said that Europe’s continued recovery was linked to what happened in China, which for years was bolstering companies around the world with its demands for goods.
“I come across a lot of businesses where they’re disappointing because that froth isn’t there anymore,” he said. “The mining companies are cutting capital expenditures by 25 percent and that trickles through to all the companies that make that stuff and to the banks that were financing all of that. I even picked it up at beverage companies that have missed their numbers because the Chinese demand for cognac is declining.”
THE VALUE Is looking out even five years still too short for long-term investors? Surely, oil drilling is going to be happening in North Dakota for a decade or more.
Keith Banks, president of U.S. Trust, said looking out 10 years was too long for most clients to think about, but five years was a great time frame to spot what he called the mega-trends where people made substantial wealth. These trends run over many years and offer a sustained opportunity for people to participate, even if they miss the very start of the trend.
“The world isn’t an on/off switch,” Mr. Banks said. “It is a dimmer switch.”
He said his firm talked to clients more and more about the three- to five-year outlook, but often they needed the view over the next year to get to the longer one. “It’s an iterative*) process,” he said.
*) iterative = a procedure in which repetition of a sequence of operations yields results successively closer to a desired result
One of the main benefits of the longer view is it smooths out the noise that can crop up in just one year. “I have more confidence in looking ahead five years than I do one year,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. “And I think most strategists feel the same. The short term is so uncertain and can be impacted by a lot of noise, while in the long term, markets are very fundamental.”
How those projections are done, though, naturally relies on assumptions, and that means they can be flawed.
“Any three- to five-year forecast typically relies pretty heavily on some mean reversion assumptions — I believe this company is relatively undervalued versus the market or its peers,” Mr. Tiedemann said. “We have five-year forward views on asset classes and projections. At the core of those is our five-year expectation of G.D.P. growth, inflation and where we believe the 10-year Treasury yield will be at the end of five years.”
In other words, the medium term may be more accurate, but projecting it is still difficult. Yet it is such a stabilizing view that can help people through the anxious moments of any year. “Our advice is, ‘Don’t time, don’t chase and don’t react,’ ” said Karl Wellner, president and chief executive of Papamarkou Wellner Asset Management. “We want our clients to think and plan ahead. It’s very simple. But people kick themselves for making the same mistakes over and over.”
There are worse New Year’s resolutions.
Source: (1) NYT, (2) STAF, Inc. (Article 3 of 3 next below)
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Article 3 of 3 (Articles 1-2 of 3 next above)
BlackRock
The world's largest asset manager
BlackRock offers mutual funds, closed-end funds, managed accounts and alternative investments
to individuals, institutions and financial professionals
55 E 52nd St, New York, NY 10055 - at the Rockefeller Center in New York City (212) 810-5300
click: BlackRockwww.blackrock.com
The monolith and the markets
monolith = a very large and powerful organization that acts as a single unit
a massive structure
Getting $15 trillion in assets on to a single risk-management system
is a huge achievement
Is it also a worrying one
STAF, Inc. endorses BlackRock services - of course on y0ur own risk
At the end of this article
additional web links to this article to see pictures, statistics and other info
EAST WENATCHEE, in Washington state, is known for its apples, not for its financial services. But in a data centre nestled between the orchards and hills, a cluster of 6,000 computers oversees the assets of over 170 pension funds, banks, endowments, insurance companies and others. Whirring around the clock, the machines look at what interest-rate changes, or bank collapses, or natural disasters could mean for trillions of dollars of assets.
Around the world, 17,000 traders have the computers’ assessments of these risks at their fingertips when they buy or sell assets.
The data centre forms the heart of BlackRock, an asset-management company that is the world’s biggest investor. Founded in 1988, it has $4.1 trillion in assets under management, making it bigger than any bank, insurance company, government fund or rival asset-management firm. It single-handedly manages almost as much money as all the world’s private-equity and hedge funds. Though its holdings are mostly equities—it is the biggest shareholder in half of the world’s 30 largest companies—it also holds bonds, commodities, hedge funds, property and just about anything anyone would ever want to invest in (see chart 1).
But “Aladdin”, the risk-management platform that occupies all those computers in the orchards, is not just used to look after BlackRock’s $4 trillion. The firm makes its facilities available in whole or in part to managers looking after $11 trillion more, a tally that has recently been growing by about $1 trillion a year. All told, Aladdin keeps its eyes on almost 7% of the world’s $225 trillion of financial assets. This is unprecedented—and it means flaws in the system could matter to more than just BlackRock, its investors and its customers. If that much money is being managed by people who all think with the same tools, it may be managed by people all predisposed to the same mistakes.
Encounter in the dawn
BlackRock is, according to one of the architects of Aladdin, “perpetually neurotic” about risk. Company lore attributes this neurosis to a $100m loss which nearly ended the career of its co-founder and chief executive, Larry Fink, in 1986. A wunderkind at First Boston, an investment bank, Mr Fink had risen to its management committee in his early 30s after pioneering the art of repackaging income streams such as mortgage payments and car loans into bonds. First Boston profited handsomely from this pioneering work in debt securitisation—until an unexpected fall in interest rates wrong-footed Mr Fink’s traders.
Mr Fink was sidelined, leaving him time to ponder how Wall Street’s titans understood the risks they took to make money. He set up BlackRock as much to offer clients a better understanding of risk as to manage their money. Originally a part of Blackstone, a private-equity firm, it was sold in 1994 and floated in 1999. Today it is worth $51 billion, making it America’s 17th largest financial firm by market value.
BlackRock quickly earned a reputation for understanding the complex securities dreamed up by ever more creative Wall Street types. Whereas buyers of a company’s shares only need to understand that one business, buyers of a mortgage-backed security of the sort Mr Fink pioneered must look at how several thousand underlying loans will perform. BlackRock took up the challenge. Its analytical legwork, originally undertaken by a humble Sun Microsystems workstation wedged between the fridge and the coffee machine in BlackRock’s one-room office, was the key to the firm’s early success as an asset manager specialising in bonds.
By 2008, after 20 years of growth and the acquisition of part of Merrill Lynch, BlackRock had more than $1 trillion under management. As crashing banks revealed how spectacularly poorly the financial world had understood the complex and shady instruments it had put its money into, BlackRock, far from needing a bail-out, was something of an antidote. When the American government found itself owning or guaranteeing toxic assets, it turned to BlackRock, which was seen as having more limited conflicts of interest than everyone else concerned, to analyse, value and sell them. The company got similar business from Greece and Britain. Larry Fink became a Washington insider, his name floated as a chief for bailed-out banks, or later as a potential treasury secretary. In 2009, as others retrenched, BlackRock snapped up Barclays’ asset-management business, boosting the assets under its control to more than $3 trillion.
It looks set to grow further. As post-crisis regulations cut the banking industry back down to size, much of what the banks used to own is flowing to capital markets. Pension funds, sovereign-wealth funds, endowments, insurance companies and asset managers will all look to buy them there, and many will do so through BlackRock. The company also has opportunities for growth in its thriving business with smaller clients (a third of its work is for retail investors saving for their retirement or a college fund). American personal bank accounts currently contain $10 trillion earning virtually no interest.
One reason investors flock to BlackRock is that its purchase of the Barclays business made it a huge force in “passive” investment products such as exchange-traded funds (ETFs); these now account for 64% of its assets under management. Such instruments aim merely to track indices—the S&P 500, London’s FTSE and their equivalents in the bond world—and charge far lower fees than “active” mutual funds or hedge funds, which need to cover pricey research and trading teams. That said, BlackRock is not averse to earning such fees: with over $1 trillion in assets, its active management business is one of the biggest there is. Indeed some outsiders suspect that, as both businesses get bigger, accommodating the different cultures associated with ETFs and active management may become a problem for the company.
Since BlackRock mostly just invests its customers’ money on their behalf, it is, it says, a much safer source of financing for the economy than banks, which can find themselves without the money to pay off their depositors, and thus crash. As long as the firm does not become an investor in its own funds, which it shows no sign of doing, BlackRock can plausibly claim to offer little if any systemic risk. As with smaller asset managers, such as Vanguard, Fidelity or PIMCO, a fall in the value of the assets under management matters to the investors concerned, but has no knock-on effects. Regulators fret about some aspects of BlackRock’s operations, such as money-market funds—banklike vehicles which struggled in 2008. But mostly they seem to accept the arguments put forward by BlackRock and its lobbyists.
Mr Fink encourages the perception that the company is merely big, not special—perhaps even a little dull. He delights in drawing a contrast between the flashiness of Wall Street and his nondescript midtown Manhattan offices. He pulls a face when reminded that a former lieutenant described BlackRock as “one of, if not the, most influential financial institutions in the world.” Speak to anyone in markets, however, and they will agree with the assessment. “If you are looking to buy anything, or sell anything, or invest anything, it’s very difficult to get around BlackRock,” says the boss of a large European insurer.
Because BlackRock is often their largest shareholder (see chart 2), companies care what it thinks, even if the nature of its ETF business means that its level of investment in them is to some extent predetermined (to track indices, the company needs to keep hold of large chunks of the biggest companies on the market). When Stuart Gulliver took over HSBC, a bank, in early 2011, he flew to New York to ask for Mr Fink’s support. And BlackRock prides itself on getting access to market-moving information just as any investment bank’s trading desk would. Marketing presentations boast of the “access advantage” enjoyed by BlackRock, using “deep relationships with government and corporate issuers” to put it “in the flow of the most current information”. That advantage is at least in part a factor of its awesome size.
The sentinel
There is another way that BlackRock is singularly important. A recent report by the Office of Financial Research, an arm of the US Treasury, contained a warning that asset managers which provide “consulting or pricing services to other asset managers [are] creating interconnections and dependencies that increase their importance in financial markets.” And through Aladdin, BlackRock provides such services on an epic scale.
Who exactly pays to gain the system’s insights is not a matter of record, but a fair number of BlackRock’s asset-management rivals use it, as do banks, pension funds and insurers. Deutsche Bank’s investment arm, which manages €934 billion ($1.3 trillion), announced in November that it was migrating to the platform. Including those of BlackRock itself, Aladdin keeps track of 30,000 investment portfolios. Some of the clients use just the risk-management services; about a third use Aladdin to manage their portfolios and process trades, too. The $400m the company can expect in annual fees from outside users goes a long way to meeting the costs of the system and the nearly 2,000 employees who run it.
Aladdin, like the little Sun machine next to the company’s original fridge, is there to help people who manage money understand what they own. An institution like CalPERS—which uses Aladdin to keep track of the $260 billion it has invested to pay for the pensions of Californian public employees—needs to understand when its bonds will come to maturity, or how its assets will move if interest rates fall, or what would happen if a counterparty went bust. Aladdin is the tool it uses for the job.
The system is based on a large and, its creators say, particularly well quality-controlled trove of historical data. On the basis of that information it uses “Monte Carlo” methods, which produce a large, randomly generated sample of the huge range of possible futures, to build up a statistical picture of what could happen to all sorts of stocks and bonds under a range of future conditions. These risk assessments cover both likely futures that matter day-to-day, and less probable but highly salient ones. A portfolio can, say, be stress-tested by being put through market turmoil modelled on that which followed Lehman Brothers’ collapse, to see what happens. Users can see their portfolio’s predicted response to a “tapering” of the Federal Reserve’s asset-buying programme or to the onset of a global flu pandemic.
The aim is not just to figure out how each stock, bond and derivative in a portfolio would move. It is also to check how correlated those movements are, and how that correlation could amplify a shock. For example: combining shares in an Indonesian bank, a bond issued by a European power company and a basket of mortgages secured on Canadian shopping malls might seem like a sensibly diversified portfolio. But some changes in credit availability might set them all tumbling. That is the sort of thing that Aladdin, having tracked such assets through previous crises, is meant to spot. Armed with insights from these simulations, traders managing large, complex portfolios can tweak their holdings accordingly.
This sounds like a useful force for stability, and to the extent that it provides a deeper understanding of risk it probably is. But the sheer size of the endeavour brings two linked worries to mind. The first is that institutions which buy this level of risk analysis from a third party are diverting resources away from developing those skills internally. “There’s no way you can get the same understanding of risk if you developed the capability in-house, versus getting it off the shelf,” says an investment manager at a $500 billion-plus fund which looked at implementing Aladdin.
Not doing your own risk analysis means there is a danger that you will not fully understand the analysis done on your behalf. “You can look at all these risk reports and you get numb to what it actually means,” the investment manager says. Receiving three-dimensional bar charts by the bushel from BlackRock’s models is of limited use without the internal procedures necessary to make the best use of them, and a lack of in-house capability might lead those procedures to atrophy.
Broken circuit
If companies do not understand the risks they are taking that is mainly their lookout (though if they are big and highly leveraged, the danger spreads). The second worry is more systemic. The market price for any asset is in theory arrived at by buyers and sellers independently forming their own views of the asset’s worth, often using competing methodologies to reach their conclusions. BlackRock’s success means that more and more of the market is thinking in the same way. As participants each start fretting about broadly similar things, such as how a slowdown in emerging markets might impact their portfolios, they will be guided in part by BlackRock’s analysis. Buyers, sellers and regulators may all be relying on the same assumptions, simply because they are all consulting Aladdin. In a panic, this could increase the risk of all of them wanting to jump the same way, making things worse.
Privately, some market participants fret that BlackRock’s genie is creating a new orthodoxy when it comes to analysing assets. That is especially true for complex structures which require its forensic expertise to unpick. “Nobody understands some of this stuff” without going through BlackRock, says a portfolio manager who uses Aladdin and regularly trades with the firm. A potentially worrying development is that it is now possible to engineer bonds to maximise the chances of BlackRock investing in them.
The disturbing parallel is with credit-rating agencies such as Moody’s and Standard & Poor’s in the run-up to 2008. Investors blindly relied on the agencies’ analysis of financial constructs underpinned by subprime mortgages, many of which were engineered in such a way as to ensure AAA-rated status but subsequently defaulted anyway. BlackRock’s models are undoubtedly more sophisticated than the credit-rating agencies’, and their use is not mandated by regulators. But Mr Fink is the first to admit that they are flawed, too: “If you believe models are going to be right, you’re going to be wrong.”
The question is whether BlackRock’s clients understand that they are not meant to rely on Aladdin’s prognostications for investing. BlackRock executives insist their models are designed to validate ideas that have been arrived at independently by clients rather than to generate them. That said, the company’s marketing materials talk of Aladdin’s services as a way to “see opportunities” in markets.
Mr Fink concedes the theoretical possibility of a herd mentality taking hold among users of Aladdin, but he is adamant that no such thing is happening in practice. “People can use our methodology or not,” he says. “Our models teach you the kerbs of the road, they don’t tell you the speed you should be travelling, or where the curves are in the road.” Most of what Aladdin does could be replicated in other systems like Bloomberg, he points out; Charles River, a consultancy, also provides very widely used analytic tools.
Half a dozen Aladdin users polled by The Economist, speaking on condition of anonymity, seemed to confirm this. They all said that they use BlackRock to supplement their own risk analysis, not as a substitute. “BlackRock’s analysis is one element our staff look at when we make investment decisions, but that doesn’t necessarily mean they guide us one way or another,” says a boss at a rival asset-management firm. Other factors are more likely to lead to groupthink in financial markets, he says. “My [staff] read The Economist, and the people they trade with read it too. That doesn’t make me nervous.”
BlackRock’s diverse product range is good for its shareholders (who have seen their shares rise over 40% so far this year), and its ETFs have saved investors billions of dollars in fees. The company is widely expected to keep growing, though it may face some difficulties. The performance of its actively managed funds, while broadly good, is patchier than its supposed informational advantage might suggest, and the larger this part of the business gets, the harder it becomes to beat the market. The ETFs, for their part, will look less alluring in equity markets less bullish than those of the past few years.
And BlackRock’s perpetually “neurotic” outlook still looks like something that would have served the world well in 2008, had it been wider spread. But one lesson of that crisis was that investors needed to do their own legwork. If models are always wrong, as BlackRock posits, it should perhaps be a little worried that so many people are using the ones it offers. Maybe it is a source of correlation Aladdin*) could be asked to look out for.
*) Aladdin = in The Arabian Nights a poor youth who obtains a magic lamp and ring, with which he summons genies who grant his wishes
The Arabian Nights: Tales from a Thousand and One ... - Amazon.comwww.amazon.com › Books › Literature & Fiction › Classics
The Arabian Nights: Tales from a Thousand and One Nights (Modern Library Classics) [Richard Burton, A.S. Byatt] on Amazon.com. *FREE* shipping on ...
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Web links to BlackRock company - the world's largest asset manager:
BlackRockwww.blackrock.com
- BlackRock offers mutual funds, closed-end funds, managed accounts and alternative investments to individuals, institutions and financial professionals.3.6
55 E 52nd St, New York, NY 10055 - at the Rockefeller Center in New York City
(212) 810-5300
Careers - Job Search - Individual Investors - Careers - BlackRockwww.blackrock.com/careers
At BlackRock, you can have a career that's exciting, rewarding and full of ... - BlackRock - Wikipedia, the free encyclopediaen.wikipedia.org/wiki/BlackRock
- ...Laurence D. Fink - Robert S. Kapito - Black Rock - Assets under management
Sources:
(1) For additional info click green: The monolith and the markets - BriefingBlackRock
(2) STAF, Inc.
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Warren Buffett's Suggestion on IPOs
This is no to say "Do what Mr. Buffett does or did, it's up to you. This is just to say 'this is what he says/said'."
Click green for further info
Warren Buffett recommends avoiding IPOs, for the following reason: "It's almost a mathematical impossibility to imagine that, out of the thousands of things for sale on a given day, the most attractively priced is the one being sold by a knowledgeable seller (company insiders) to a less-knowledgeable buyer (investors)."
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely considered the most successful investor of the 20th century. He is consistently ranked among the click: world's wealthiest people
Born: August 30, 1930 (age 83), Omaha, NE
Spouse: Astrid Menks (m. 2006), Susan Buffett (m. 1952–2004)
Children: Howard Graham Buffett, Peter Buffett, Susan Alice Buffett
Click: Wikipedia for further info
Definition of 'Initial Public Offering - IPO'
The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.
In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.
Also referred to as a "public offering."
Investopedia explains 'Initial Public Offering - IPO'
Notice: Investopedia, as Mr. Buffett, warns about IPO's - this does not mean: as an investor you must not get involved with IPO's. It means learn your "due diligence", deal with trusted top-professionals.
Use your brains = reason, not emotion. (For due diligence meaning see below)
IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values.
Embark on the interesting journey from the pre-IPO stage to the final IPO placement in the primary market -
Read
(1) Click:The Road to Creating an IPO and Interpreting a Company's IPO Prospectus Report.
(2) Click: Learn How Penny Stocks Can Turn 1K To 10K
(3) Click: IPOs: Initial Public Offerings, IPO Stocks, & IPO Calendar - NASDAQ ...www.nasdaq.com/markets/ipos/
(4) Click: NASDAQ.comwww.nasdaq.com/ Official site of The NASDAQ Stock Market featuring free stock quotes, stock exchange prices, stock market news, and online stock trading tools.
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Definition of 'Due Diligence - DD'
1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.
2. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party.
Investopedia explains 'Due Diligence - DD'
1. Offers to purchase an asset are usually dependent on the results of due diligence analysis. This includes reviewing all financial records plus anything else deemed material to the sale. Sellers could also perform a due diligence analysis on the buyer. Items that may be considered are the buyer's ability to purchase, as well as other items that would affect the purchased entity or the seller after the sale has been completed.
2. Due diligence is a way of preventing unnecessary harm to either party involved in a transaction.
Click: Investopedia - Educating the world about financewww.investopedia.com/
Investopedia is a premiere resource for investing education, personal finance, market analysis and free trading simulators. With a comprehensive financial ...
Click: Which Penny Stocks Can Help You Turn 1K To 10K
________________________________
This is no to say "Do what Mr. Buffett does or did, it's up to you. This is just to say 'this is what he says/said'."
Click green for further info
Warren Buffett recommends avoiding IPOs, for the following reason: "It's almost a mathematical impossibility to imagine that, out of the thousands of things for sale on a given day, the most attractively priced is the one being sold by a knowledgeable seller (company insiders) to a less-knowledgeable buyer (investors)."
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely considered the most successful investor of the 20th century. He is consistently ranked among the click: world's wealthiest people
Born: August 30, 1930 (age 83), Omaha, NE
Spouse: Astrid Menks (m. 2006), Susan Buffett (m. 1952–2004)
Children: Howard Graham Buffett, Peter Buffett, Susan Alice Buffett
Click: Wikipedia for further info
Definition of 'Initial Public Offering - IPO'
The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.
In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.
Also referred to as a "public offering."
Investopedia explains 'Initial Public Offering - IPO'
Notice: Investopedia, as Mr. Buffett, warns about IPO's - this does not mean: as an investor you must not get involved with IPO's. It means learn your "due diligence", deal with trusted top-professionals.
Use your brains = reason, not emotion. (For due diligence meaning see below)
IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values.
Embark on the interesting journey from the pre-IPO stage to the final IPO placement in the primary market -
Read
(1) Click:The Road to Creating an IPO and Interpreting a Company's IPO Prospectus Report.
(2) Click: Learn How Penny Stocks Can Turn 1K To 10K
(3) Click: IPOs: Initial Public Offerings, IPO Stocks, & IPO Calendar - NASDAQ ...www.nasdaq.com/markets/ipos/
(4) Click: NASDAQ.comwww.nasdaq.com/ Official site of The NASDAQ Stock Market featuring free stock quotes, stock exchange prices, stock market news, and online stock trading tools.
_________________________________
Definition of 'Due Diligence - DD'
1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.
2. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party.
Investopedia explains 'Due Diligence - DD'
1. Offers to purchase an asset are usually dependent on the results of due diligence analysis. This includes reviewing all financial records plus anything else deemed material to the sale. Sellers could also perform a due diligence analysis on the buyer. Items that may be considered are the buyer's ability to purchase, as well as other items that would affect the purchased entity or the seller after the sale has been completed.
2. Due diligence is a way of preventing unnecessary harm to either party involved in a transaction.
Click: Investopedia - Educating the world about financewww.investopedia.com/
Investopedia is a premiere resource for investing education, personal finance, market analysis and free trading simulators. With a comprehensive financial ...
Click: Which Penny Stocks Can Help You Turn 1K To 10K
________________________________
6 U.S. states with best GDP growth since 2007
Date: July 2013
Click green for further info
Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living
GDP per capita is not a measure of personal income (See Standard of living and GDP). Under economic theory, GDP per capita exactly equals the gross domestic income (GDI) per capita (See Gross domestic income).
GDP is related to national accounts, a subject in macroeconomics.
GDP is not to be confused with gross national product (GNP) which allocates production based on ownership.
Read more: http://www.bankrate.com/finance/economics/states-with-best-gdp-growth-1.aspx#ixzz2ZD8iUNkY
Follow us: @Bankrate on Twitter | Bankrate on Facebook
The Great Recession*) wasn't followed by a great recovery, unfortunately. But there are some bright spots. A handful of states have soared economically during the past few years, booming while some of their neighbors struggle to grow.
*) = Officially over in 2009, the Great Recession is now generally acknowledged to be the most devastating global economic crisis since the Great Depression.
The Great Recession | Russell Sage Foundationhttps://www.russellsage.org/publications/great-recession -Officially over in 2009, the Great Recession is now generally acknowledged to be the most devastating global economic crisis since the Great Depression.
Each has its own success story. With few exceptions, though, they seem to have been sparked by the same primary ingredient: fossil fuels.
Surging oil and gasoline prices, a domestic drilling boom, and growing world energy demand have helped energy-rich states outpace the country's 7.3 percent gross domestic product growth from 2007 to 2011. Other sectors have contributed, too, such as agriculture, health care and government.
In order, here are the top-performing states in terms of GDP, according to the Bureau of Economic Analysis:
http://www.bankrate.com/finance/economics/states-with-best-gdp-growth-1.aspx#ixzz2ZD8W6hsm
Follow us: @Bankrate on Twitter | Bankrate on Facebook
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The Social Security information in this article is A-MUST-TO-STUDY for every person in America
The U.S. Social Security’s Real Retirement Age Is 70
by click: Alicia H. Munnell
0IB#13-15The brief’s key findings are:
- Due to increases in Social Security’s Delayed Retirement Credit, the effective retirement age is now 70, with monthly benefits reduced for earlier claiming.
- Benefit levels at 70 appear appropriate given that rising deductions for Medicare and greater benefit taxation have reduced Social Security’s net replacement rates.
- The shift to 70 should be feasible for many workers given increases in lifespans, health, and education.
- But vulnerable workers forced to claim early will have low benefits and will be particularly harmed by any further cuts.
- Policymakers need to inform those who can work that 70 is the new retirement age and devise ways to protect those who cannot work.
click: new issue brief
from the Center for Retirement Research at click: Boston College
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Notice:
All information in this website is given for educational purposes as a starting point for you to find up-to-date information.
STAF, Inc. is not responsible for your decision to invest or not to invest, for your social security decisions or any other related action(s). STAF, Inc. cannot guarantee that the info published in this website is valid in that time when you may or may not take related actions. Before any action contact the official government sites or offices or any other official source to confirm the latest facts. Any action you take you take at your own risk.
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This article has important new information - read in full and study all options
At the end of this article you'll find additional web links for further research
Social Security: Wait or Not?
Date: January 2014
Finding additional help after you read this article:
In addition to all U.S. government sites that are sometimes hard to follow but compare their info with the info
(1) in this website and (2) in other sources given here for your research.
Also, at the end of this article you'll find a sampling of some free or low-cost online tools that can help would-be retirees sort out their options. Study them.
The article Social Security: Wait or Not?
It doesn't always pay to wait until age 70 to collect Social Security. Sometimes it does. Find out what is when.
In some cases, married couples may want to take a partial benefit earlier to preserve the value of their savings. And single retirees may want to suspend their Social Security benefits until later while retaining the option of getting the money sooner if needed.
The standard advice in recent years for healthy retirees has been to delay starting Social Security payments as long as possible. The reason: You get up to an 8% bump in payments each year you delay between what is called your "full retirement age" for Social Security purposes and age 70. (Full retirement age varies by person; you can look yours up at ssa.gov/pubs/ageincrease.htm.)
But new research finds that for some families, it can pay to fine-tune that strategy—mainly to postpone withdrawing too much from other savings early on. "You really don't want to front-load your retirement withdrawals, especially if the markets are going down," says Christine Fahlund, a senior financial planner at mutual-fund firm T. Rowe Price Group in Baltimore.
Claiming EarlyAbout 80% of Americans have claimed Social Security benefits before their full retirement age in recent years, despite the financial hit they take by doing so. Academics are trying to figure out why, and they point to one likely explanation: a desire to avert possible losses.
People tend to view delaying payments as increasing the chances that they won't live long enough to get as much out of the system as they put in, according to a recent paper by Suzanne Shu, an assistant professor at UCLA Anderson School of Management, and John Payne, a professor at Duke University's Fuqua School of Business.
That leaves them less likely to delay claiming Social Security, the authors conclude. "People are trying to do what feels right but are actually reducing the total benefits they can receive," Prof. Shu says.
Most married couples take benefits as soon as they can—at age 62. That ensures that they will get the smallest Social Security benefits for which they are eligible, Ms. Fahlund says.
Another common strategy is to wait until both members of a couple turn 70, which ensures the highest annual payout. But when T. Rowe Price analyzed the income difference that results from these two approaches for a married couple, it found that a third option—what it called a "split strategy"—allowed them to preserve the biggest chunk of their retirement assets in the early years of retirement, under certain circumstances.
A 'Split' StrategyFor the split strategy, the analysis assumed that one spouse retired at 62 and the other at 59. The lower earner took Social Security at age 62, while the higher earner took spousal benefits at age 66 and then switched to his own benefit at age 70.
It also assumed the couple's goal was to replace 75% of their income before retirement, and they would use withdrawals from retirement savings to supplement the difference between their Social Security benefits and that goal.
For a husband born Dec. 31, 1951, who made $98,000 a year while working, and a wife born Dec. 31, 1954, who made $68,000—for a total of $166,000—the example assumes a retirement-income goal of $124,500 a year. It also assumes that the spouse with the higher benefit dies at age 83 and the survivor at age 95.
If they both claimed Social Security at age 62, they would receive a lifetime total of $1.1 million in Social Security and would need to make $3.4 million in retirement-account withdrawals, T. Rowe Price found in its analysis.
Both for the strategy of postponing until age 70 and for the split strategy, the couple would need $300,000 to $400,000 less from their own retirement savings to generate the same retirement income, T. Rowe Price says.
In both cases, the widow would get almost twice as much each year—$39,000 rather than $22,000—in Social Security income than if both spouses claimed benefits early.
The split strategy comes out ahead for a couple retiring long before age 70 because the cumulative withdrawal amount from the couple's savings until the wife turns 70 is $142,000 less than if both delayed Social Security as long as possible.
Postponing until age 70 would work best for a couple working until that age because they would get about $14,000 a year more from Social Security than with the split strategy—and $30,000 a year more than taking their benefits at age 62.
Single people can benefit, too. If you aren't part of a couple, it still could pay to use the file-and-suspend tactic while delaying your Social Security payment as long as you can.
Here is why: If you had made the decision to delay your benefits until age 70, but got sick or took a hit on other investment income, you could file for retroactive Social Security benefits of up to six months.
But if you had filed and suspended those payments, you could collect the amount going back to when you first filed, even if it was longer than six months.
There's more information about suspending Social Security benefits at ssa.gov/retire2/suspend.htm.
If you started receiving Social Security benefits less than 12 months ago but now regret starting them before age 70, you may be able to withdraw the claim and reapply later. If the government approves your request, you would have to repay the benefits you already collected.
—Email: [email protected]
Here is a sampling of some (1) free or (2) low-cost
online tools that can help would-be retirees sort out their options:
web: maximizemysocialsecurity.com
web: click on "Computer Programs" at analyzenow.com
web: socialsecuritychoices.com
web: socialsecuritysolutions.com
STAF, Inc. is not responsible for the contents of any of these websites - you visit and do business with them based on your own choice.
The Wall Street Journal endorses these four websites - go and look what you'll find.
Source: (1) WSJ, (2) STAF, Inc.
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See the article next above - important info for every American
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Click green on the next line - (if the link has expired search the web with the title)
The Best Places to Retire on $75 a Day
best-places-retire-75-day-180521228.html by Emily Brandon - To find places where retirees can live well on less than $75 per day, U.S. News analyzed recently ... Here are 10 places where it's possible to live well in retirement on less than $75 a day: Akron .... Manilla.com - 20 hours ago ...
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Chairwoman Janet Yellen - the Fed’s new leader
Click green for further info
President Obama was wise to nominate Janet Yellen, vice chairwoman of the Federal Reserve, to be the Fed’s next leader. As a deeply respected economist, she will bring two vital attributes to that role as a steward of the economy.
First, she represents continuity with the Fed’s current low-interest-rate policies to foster employment while controlling inflation. Those policies, which she has helped to create and sustain, have undeniably boosted the flagging economy.
Just as undeniably, they have generated controversy and consternation. Ms. Yellen has expertly addressed those concerns, including the risks inherent in a prolonged low-interest-rate policy, though the most feared effect, inflation, is as yet nowhere in sight.
She also has been realistic about the limits of the Fed’s efforts. Her grasp of the issues in all their complexity has given her the credibility to lead the Fed in deciding how long to continue monetary stimulus policies and how eventually to ease up and end them.
Second, she also represents a break from Mr. Obama’s circle of policy makers whose reputations were marred by their roles before or during the financial crisis. Her nomination comes after Lawrence Summers, an architect of Clinton-era policies to deregulate derivatives and an Obama adviser who underestimated the need for stimulus, withdrew his name from consideration. By choosing someone outside his usual circle, Mr. Obama sends a strong signal of moving forward.
In accepting the nomination, Ms. Yellen said that expertise, objectivity, debate and consensus are crucial to effective Fed policy-making. She is widely admired for all of these traits. Labels like dove versus hawk on monetary policy really do not apply to her.
Rather, her responses to economic problems have invariably been data driven, grounded in facts and analysis and subject to change as the facts change. For example, as president of the Federal Reserve Bank of San Francisco from 2004 to 2010, she sounded the warning about housing bubbles, even as others praised the boom.
That display of sound judgment is not unusual in her record. In a tally by The Wall Street Journal of economic predictions on growth, inflation and unemployment made by 14 Fed members between 2009 and 2012, Ms. Yellen ranked at the top.
The Senate should move quickly to confirm Ms. Yellen. As leader of the world’s most powerful central bank, the Fed chief is also the most important international economic policy maker. Congress’s current fiscal recklessness is roiling international markets. Confirming Ms. Yellen promptly would help to quell that instability.
Her nomination is a bright spot in a week dominated by the threat of a default from failure to raise debt ceiling.
The Fed would be in good hands under her leadership.
Click green for further info
Source: Meet The New York Times’s Editorial Board »
Link to a wider article about Janet L. Yellen
Obama to Pick Yellen as Leader of Fed, Officials Say. ... Janet L. Yellen, the Federal Reserve's No. 2 official, would become the first woman to lead the Federal Reserve, and the first Democrat to get ...
October 8, 2013 - By JACKIE CALMES - Business Day - Article - Print Headline: "Yellen Said To Be Obama's Nominee To Lead The Fed"
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The Costs of the U.S. Government Shutdown 2013
click green for further info
The 16-day government shutdown is over, but the country has taken at least a $24 billion hit along the way.
The financial ratings agency Standard & Poor's said Wednesday the shutdown "to date has taken $24 billion out of the economy," equaling $1.5 billion dollars a day and "shaved at least 0.6 percent off annualized fourth-quarter 2013 GDP growth."
These estimates are for the overall economy, taking into account not just federal wages and productivity, but all the ripple effects and costs as well.
Federal Employees Return to Work as Obama Signs Bill to End Shutdown, Avert Default
"The bottom line is the government shutdown has hurt the U.S. economy," Standard & Poor's said in a statement. "In September, we expected 3 percent annualized growth in the fourth quarter because we thought politicians would have learned from 2011 and taken steps to avoid things like a government shutdown and the possibility of a sovereign default. Since our forecast didn't hold, we now have to lower our fourth-quarter growth estimate to closer to 2 percent."
Moody's Analytics reported a similar number, saying by the end of the day the shutdown will cause a $23 billion hit to U.S. GDP or $1.4375 billion per day.
Anatomy of a Debt Deal: What Happens Next
And that's not all. Here's ABC's look at the costs of the shutdown:
- $3.1 billion in lost government services. Although furloughed workers will get their back pay, taxpayers won't see the products. (Source: I.H.S.)
- According to the U.S. Travel Association: There has been $152 million per day in all spending related to travel lost because of the shutdown. As many as 450,000 American workers supported by travel may be affected.
- According to the National Park Service: They welcome more than 700,000 people per day usually in October and visitors spend an estimated $32 million per day impact in communities near national parks and contribute $76 million each day to the national economy. Those revenues were lost.
- According to Destination D.C., the official tourism corporation of D.C.: There is a 9 percent decrease in hotel occupancy from the last week in September before the shutdown to the first week of October during the shutdown. This year, hotel occupancy was down 74.4 percent for the week Sept. 29 to Oct. 5 compared to the 2012 numbers. (Source: Smith Travel Research, Inc.) In 2012, an estimated $6.2 billion of visitor spending supported more than 75,300 jobs.
The hit to Washington, D.C. has been especially hard, according to Mayor Vince Gray's office:
Regional (D.C./Maryland/Virginia) impact: $217 million a day (17.6 percent of the region's economy) from lost/deferred federal and contractor wages.
Washington, D.C. economic activity impact: $44 million a week decrease
Washington, D.C. tax revenue impact: $6 million a week decrease
Hospitality sector observations: 7 percent decrease in restaurant traffic in the first week in October compared to 2012 and 13,000 fewer hotel bookings (8.3 percent decrease) and $2 million less room revenue in the first week in October compared to 2012.
And we will end with one bit of good news:
There was a 3 percent increase in restaurant beverage (primarily liquor) sales during the first week of October 2013 compared to the first week of September of this year.
Source: ABC News
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This article is about Rare Earth Elements - big business worldwide - R.E.E.'s are needed in today's technology practically in every product -
An example: "Without rare earths we'd be back to having black-and-white cellphones & other products in b&w"
Definition "rare earth element":
Any of a group of chemically similar metallic elements comprising the lanthanide series and (usually) scandium and yttrium. They are not especially rare, but they tend to occur together in nature and are difficult to separate from one another. Any of the abundant metallic elements of atomic number 57 through 71. Also called lanthanide.
Called r.e.e. (= rare earth elements) because they were originally thought to be rare.
Click: Rare earth metals list
Click for further information:
Rare earth element
Gold rush-era discards could fuel cellphones, TVs. etc.
Across the West, early miners digging for gold, silver and copper had no idea
that one day something else very valuable would be buried in the piles of dirt and rocks they tossed aside
China dominates global production of rare-earth metals - roughly 80 % of the worlds output of rare earths, used in strategic industries such as defense and telecommunication, comes from China.
SACRAMENTO, Calif. (AP) -- There's a rush in the U.S. to find key components of cellphones, televisions, weapons systems, wind turbines, MRI machines click: Magnetic resonance imaging and click: Images for MRI machines
and the regenerative brakes in hybrid cars, and old mine tailings piles just might be the answer. They may contain a group of versatile minerals the periodic table called rare earth elements.
"Uncle Sam could be sitting on a gold mine," said Larry Meinert, director of the mineral resource program for the U.S. Geological Survey in Reston, Va.
The USGS click: Welcome to the USGS - U.S. Geological Survey and Department of Energy click: Department of Energy
are on a nationwide scramble for deposits of the elements that make magnets lighter, bring balanced hues to fluorescent lighting and color to the touch screens of smartphones in order to break the Chinese stranglehold on those supplies.
They were surprised to find that the critical elements could be in plain sight in piles of rubble otherwise considered eyesores and toxic waste. One era's junk could turn out to be this era's treasure.
Click: View gallery
"Those were almost never analyzed for anything other than what they were mining for," Meinert said. "If they turn out to be valuable that is a win-win on several fronts — getting us off our dependence on China and having a resource we didn't know about."
The 15 rare earth elements were discovered long after the gold rush began to wane, but demand for them only took off over the past 10 years as electronics became smaller and more sophisticated. They begin with number 57 Lanthanum and end with 71 Lutetium, a group of metallic chemical elements that are not rare as much as they are just difficult to mine because they occur in tiny amounts and are often stuck to each other.
Unlike metals higher up on the table such as silver and gold, there's no good agent for dissolving elements so closely linked in atomic structure without destroying the target. It makes mining for them tedious and expensive.
"The reason they haven't been explored for in the U.S. was because as long as China was prepared to export enough rare earths to fill the demand, everything was fine — like with the oil cartels. When China began to use them as a political tool, people began to see the vulnerability to the U.S. economy to having one source of rare earth elements," said Ian Ridley, director of the USGS Central Mineral and Environmental Resources Science Center in Colorado.
click: Central Mineral and Environmental Resources Science Center
Two years ago, China raised prices — in the case of Neodymium, used to make Prius electric motors stronger and lighter, from $15 a kilogram in 2009 to $500 in 2011, while Dysprosium oxide used in lasers and halide lamps went from $114 a kilogram in 2010 to $2,830 in 2011. It's also about the time China cut off supplies to Japan, maker of the Prius, in a dispute over international fishing territory. click: Metal-halide lamp
Click: View gallery
That's when the U.S. government went into emergency mode and sent geologists to hunt for new domestic sources.
"What we have is a clash of supply and demand. It's a global problem. A growing middle class around the world means more and more people want things like cellphones," said Alex King, director of the Critical Materials Institute of the Department of Energy's Ames Research Lab in Iowa. "Our job is to solve the problem any way we can."
At the University of Nevada-Reno click: University of Nevada, Reno and the Colorado School of Mines, USGS scientists used lasers to examine extensive samples of rocks and ore collected across the West during the gold rush days by geologists from Stanford University and Cal Tech.
"If we could recycle some of this waste and get something out of it that was waste years ago that isn't waste today, that certainly is a goal," said Alan Koenig, the USGS scientist in charge of the tailings project.
One sample collected in 1870 from an area near Sparks, Nev., where miners had searched for a viable copper vein, has shown promise and has given researchers clues in the search for more. They have found that some rare earths exist with minerals they had not previously known occur together.
Click: View gallery
"The copper mine never went into production, but now after all of this time we've analyzed it and it came back high with Indium, which is used in photovoltaic panels. It never economically produced copper, but it gives us insight into some associations we didn't previously recognize," Koenig said.
Indium also has been found in the defunct copper mine that dominates the artsy southern Arizona town of Bisbee.
Koenig and his colleagues are working to understand the composition of all of the nation's major deposits sampled over the past 150 years. In some cases, the mines were depleted of gold or copper, but the rocks left piled alongside mines and pits could hold a modern mother lode.
"We're revisiting history," he said.
They are compiling data from 2,500 samples to better understand whether it's possible to predict where rare earths might be hiding based on the presence of other elements there, too.
"If I had to venture a number, I'd say we have found several dozen new locations that are elevated in one or more critical metals," Koenig said. "With this project the goal would be to have this large data base available that would allow us to predict and to form new associations."
Currently there is only one U.S. mine producing rare earths— at Mountain Pass in the Southern California desert. Molycorp Inc.'s click: Molycorp goal in reopening the defunct mine is 20,000 metric tons of rare earth elements by this summer, including cerium oxide used to polish telescope lenses and other glass. Molycorp has production, sales, and R&D facilities worldwide.
R & D facility: Research And Development. Discovering new knowledge about products, processes, and services, and then applying that knowledge to create new and improved products, processes, and services that fill market needs.
http://www.investorwords.com/4028/RD.html#ixzz2pRlCbDAi
The USGS is counting on companies like Molycorp to use the information they've gleaned to uncover other easy-to-reach deposits sitting on federal land and elsewhere.
"Without rare earths we'd be back to having black-and-white cellphones again," said the USGS's Ridley.
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Source: USGS - U.S. Geological Survey -
Click: USGS - U.S. Geological Surveywww.usgs.gov/
Scientific agency for natural sciences, including earth science and biology. Extensive information on U.S. water, biological, energy, and mineral resources, ...
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For Small Firms, Visas Are a Big Headache
Startups Say They Lack Resources to Compete
With Tech Giants in Luring H-1B Talent
Date: August 21, 2013
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Kelsey Falter, founder of New York startup Poptip, says the headaches of immigration paperwork have put her venture in limbo.
Last year, Ms. Falter hired an Arizona-based software developer who had helped create a program that she used to get her startup—a website that analyzes real-time social media surveys—off the ground.
But there was a hitch: The developer, 25-year-old Rolando Fentanes, was a Mexican citizen who needed to apply for a separate immigration status before Ms. Falter could file the paperwork for an H-1B visa—a temporary work permit the U.S. issues to highly skilled foreign workers. That separate application wasn't approved until June, two months after the annual cap for H-1B visas was reached. Now, Ms. Falter and Mr. Fentanes will have to wait another year to apply.
"There was no one out there doing what he does," says Ms. Falter. "It adds a whole extra layer of risk."
Large technology companies such as Microsoft Corp., Intel Corp. and Facebook Inc. have long urged Congress to increase the quantity H-1B visas—claiming there aren't enough American developers, programmers and engineers to fill their open jobs.
But some small employers say that even if the annual cap is raised—a move Senate lawmakers approved earlier this summer—they still won't be able to compete with the tech giants in luring H-1B talent. Most startups and small firms lack human-resources departments to handle the complex paperwork, and the funds to cover legal expenses associated with hiring someone under the program.
Only about 30% of applications for H-1B visas make it past the preliminary stage of the process, the bulk of which are filed by startups and small employers, according to immigration data analyzed by the Brookings Institution, a Washington research group.
"Doubling or tripling the cap does nothing to fix this," says Michael Koeris, the founder of Sample6, a three-year-old Boston firm that produces biotech food-testing kits. He says the firm, which has 20 employees, has given up on recruiting H-1B workers because the risks of an application being rejected are too high.
Paul Graham, the founder of Y Combinator, a Silicon Valley business incubator, says "All the most successful startups we've funded have had trouble hiring foreign programmers" with the visas, citing such high-profile ventures as Airbnb Inc., an accommodations sharing service, and Stripe Inc., an online payments firms, both based in San Francisco.
In an August report, the Bipartisan Policy Center, a Washington nonprofit group, said temporary worker programs, like H-1B, need "simplified procedures" to enable smaller employers to recruit the workers they need.
A spokesman for U.S. Citizenship and Immigration Services, which oversees the H-1B program, says that last year the agency launched an entrepreneurship-in-residence program aimed at helping startups deal with immigration issues.
Currently, 65,000 H-1B visas are available for first-time applicants each year—plus an extra 20,000 for advanced degree holders—a cap that was reached in April just five days after the immigration agency began accepting 2013 applications. Most are awarded to workers in computer-related fields, mostly from India or China, according to U.S. immigration agency data. Foreigners who are renewing their visas aren't subject to the cap; the visas can be valid for up to six years.
Unlike green cards, the visas are tied to a specific U.S. employer. Of roughly 70,000 employers who applied for H-1B visas on behalf of their workers in 2011, nearly half applied for just one, and most applied for less than 10—suggesting they were startups or small employers, according to Neil Ruiz, a Brookings analyst.
By contrast, Microsoft applied for 4,109 H-1B visas, while Intel, International Business Machines Corp. and Oracle Corp. each applied for more than 1,400 of the visas.
"Small tech companies have the biggest problems getting H-1Bs," says Mr. Ruiz, adding that few have the resources to ensure numerous forms and procedures are done correctly, and before the annual quota fills up.
Last year, the immigration agency received 307,713 applications for H-1Bs, up 15% from 2011, agency data show.
Ted Acworth, the founder of Artaic, a Boston-based firm that develops software and robotics to make mosaic tile designs, said that this summer he hired an Italian national with a mechanical-engineer degree from Boston University, after reviewing nearly 100 applications for a job as head engineer.
But in July, the employee's temporary student visa expired and he is set to return home this week. "As a small company, I can't wait 15 months for the chance to get him back" by applying for the next round of H-1B visas, Mr. Acworth said.
Still others argue that the need to hire high-skilled foreign workers is exaggerated. A study released in April by the Economic Policy Institute, a left-leaning Washington think tank, concluded that colleges and universities are cranking out plenty of U.S. graduates in science, technology, engineering and math programs, but only half are finding jobs.
"A lot of startups are going to be disappointed that they can't get the talent they want," says Hal Salzman, a Rutgers University workforce and public policy professor who co-wrote the study. "But if you want to hire someone from the top 10 class at Stanford or Berkeley, it is going to be tough," he adds.
Mr. Salzamn says higher demand for H-1B visas doesn't reflect a limited supply of qualified workers, but rather a demand for cheaper workers. Raising the annual cap, he says, will lower wages in the IT labor market and chase more domestic IT graduates into different fields.
Alden Zecha, chief financial officer of Sproxil, Inc., a Cambridge, Mass., firm with 10 employees that creates serial numbers that track the authenticity of consumer products, says he doesn't ask job applicants about their immigration status: "We're looking for qualified individuals, and if they're U.S. nationals, that would be easier for us."
He says the firm has had an unfilled opening for a developer for the past five months. In April, the firm applied for an H-1B visa for a technology architect from China, and is currently waiting for a decision: "She really had the right set of skills and experience to fit this position."
Mr. Zecha wants to see a portion of H-1B visas set aside for startups and small firms, so that they aren't always competing head-to-head with much larger employers.
Brent Grinna, the founder of EverTrue, a Boston-based platform that connects school fundraisers with alumni, said his first H-1B engineer was approved in July, for a position that was open for at least three months. "It really felt like we won the lottery, it was such a stressful time," he says.
Despite the "mountain of paperwork" that the firm had to provide along with added fees and legal costs that would not be required for a local hire –he says he wouldn't hesitate to go through the process again: "Talent is the most important thing. We're looking for the best people, period."
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Source: WSJ
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Excellent information for everyone in any business & in any position
To Cauge a Battlefield, Ask the Frontlines
Interview with Karen Abramson, click: chief executive of Wolters Kluwer Tax & Accounting
click:Wolters Kluwer | Home
click: Tax & Accounting - Wolters Kluwer
Click green for further info
Wise opinion # 1:
About leadership: If you know how to run a business, you know how to run a business
(means: any business) = you can come from any other business area to run any other business area (European way of thinking) - American way of thinking is: must come from a similar business with similar experience -
Wise opinion # 2
Hiring new people: On the next 2 lines below is a good method when hiring people - test it out in your business
After I interview someone, I’ll send them along to the team (= the rest of the people in the same department) to get their feedback. It’s interesting what someone will tell a team member that they won’t always tell me during an interview.
Then also the old employees feel empowered as they know their opinion will count in the hiring process.
Wise opinion # 3
College grads & other younger employees:
Work hard, do your best and when opportunities present themselves, don’t turn them down.
Follow those opportunities and see where they lead, and don’t be so worried about setting your own plans, because I find those to be the most unproductive plans.
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The interview (concised)
Q. Were you in leadership roles as a kid?
A. My first memory of a leadership role was when I was in eighth grade. I was interested in working on the yearbook but didn’t get a spot. I was upset about it and my mother said: “Do something else. Start a newspaper.” So I brought a group of friends together and started a paper in our middle school. That was an early management lesson: You learn pretty fast how important it is to have the right people on the team. When you end up with one friend who’s not really pulling their weight, you have to figure out how to deal with that.
What did your parents do?
My mother is a restaurateur. My father started in accounting and became a management consultant. Over time, he started to buy some of the businesses he worked with. He moved from industry to industry, and I saw him use the same management skills in each company, whether it was a pool business or a steel-fabrication business.
That was a good lesson. I’ve been in a multitude of industries, and I learned from him that if you know how to run a business, you know how to run a business.
STAF,Inc.'s comment:
The message in the sentence above in blue is very true. This has been the belief e.g. in the European businesses well over the past 50 years or longer. In America the attitude in hiring new talents is most often: "has to have the experience in the same industry and often even with similar responsibilities".
That's a dull, intellectually weak way hiring new thinking (which every organization needs). A better way is to hire professional leaders with a proven track records in any industry - then the newcomers bring new ways of thinking which is a good way to refresh the production, marketing & the administration.
What was your first management role?
I was 23 and working for a defense business. I was given a mandate to lower the cost of a line of environmental test chambers while making sure we were complying with new regulations.
I knew nothing about it, so I went to the shop floor and spent time with the guys who built the chambers to understand what they did, and why the chambers were so expensive to build. It’s something I’ve done in every job since. I call it “go to the floor.” At the beginning of any new assignment, I will always go right to the people who are on the front line, whether it’s our salespeople or a client or customer service people. You learn so much more.
Other early leadership lessons for you?
I learned to be really clear about expectations. Even though you might think things are intuitive, people don’t always understand what you’re doing and thinking. So you really have to set clear expectations. I realized that I needed to tell people why I was doing what I was doing if I wanted them to trust me and follow me.
Any surprises in your transition to C.E.O.?
I was surprised by all the little things people paid attention to, all of a sudden. I’d say something offhand and people would act on it. So I learned I’d better be really careful about what I say, because everybody’s paying attention to every little word. If I were seen having a conversation with somebody in the hallway, people assumed they were my best friend, though it was the first time I had talked to them all month. Everything was under a magnifying glass in a way it hadn’t been before. Even my clothing became an issue.
Really?
Yes. That was a surprise. I’d speak at staff meetings and get notes about what I was wearing or that I should wear a different color of lipstick. The first couple of times it happens, you feel very insecure, but then you learn to move on with your life.
Have you heard feedback over the years about your leadership style that made you make a slight adjustment?
Sure. I’m very blunt (= uncompromisingly forthright = frank in speech), so I prefer to tell people, “This is what I think, and this is what you need to do.” I’ve had feedback about how that needs to be softened sometimes. I also moderate my style considerably when in Europe or Asia, or frankly even different regions in the U.S. So I might say to someone, “What do you think has happened and do you see that that might be a problem?” I’ll take a very different kind of tone, and it’s more of a suggestion about, why don’t you try to change this next time or why don’t we work together to make this different? You do have to modulate for the culture you’re operating in.
How do you hire?
I look for a balance between strategy and execution. Can you be strategic and can you get the job done? If you can spin me a great story about what the strategy should be and you can’t execute against it, that’s not of much interest to me.
I’ll also ask people to tell me about something they did that was unsuccessful, and what their role was, because that tells me how they plan a strategy. Why weren’t you able to execute the strategy? It also lets me know how introspective they are and whether they’ll blame problems on everything around them or take ownership and learn from problems. You also get a good idea of how they’ll fit with the team, because if they come from a blame culture, it’s not going to work. If they can say, “It was a problem but we made lemonade out of lemons, and here’s what we did,” that’s someone who finds the “yes,” and is going to fit better with the team.
On the next 2 lines below is a good method when hiring people - test it out in your business;
After I interview someone, I’ll send them along to the team to get their feedback. It’s interesting what someone will tell a team member that they won’t always tell me during an interview.
What is your advice to recent college grads?
Work hard, do your best and when opportunities present themselves, don’t turn them down. Follow those opportunities and see where they lead, and don’t be so worried about setting your own plans, because I find those to be the most unproductive plans. They’re frustrating for the people who try to follow them, because they can’t get the company to follow them. And they’re annoying for the manager who’s offering someone a great opportunity and has to say, “Just because you want to do something else doesn’t mean that that’s really the right place for you right now.”
So we encourage people to participate in different task forces across the business that are outside their particular area of expertise. That gives them exposure to other managers so we can help move them around and grow their career.
Source: (1) NYT, (2) STAF, Inc.
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Read this when you are thinking of a career change - get empowered
How a First Career Enhanced a Second
By JOEL GREENWALD
Greenwald Wealth Management
1660 South Highway 100, Suite 270 St. Louis Park, MN 55416-4534
Phone: (952) 641-7595
What happens when the career you were born to pursue becomes the wrong career when you reach your mid-30s?
As a child in New York, I was surrounded by physicians. My grandfather was a public health doctor, my grandmother was a cardiologist and my father was an oncologist. Starting when I was 3, I went on hospital rounds with Dad on weekends. The nurses would entertain me in the nursing station, and I’d wander into the lab, where the techs would let me look through their microscopes.
So it was no surprise when I enrolled in pre-med at Amherst College, received my M.D. at the Albert Einstein College of Medicine and served my residency at the University of Minnesota, where I met my wife, Carol Grabowski, also a doctor. She’ll tell you that I was the only happy intern she had ever met. Being an intern, after all, is like being a zombie because you are so sleep deprived. And yet I enjoyed the work.
For the next 11 years, I was a doctor with a health maintenance organization in St. Paul. Gradually, though, I found the work less and less fulfilling.
I liked being a doctor, but my wife loves it. She’s a specialist in radiation oncology, and being a physician is all she has ever wanted. Medicine defined my father: When he was home, he was always reading or writing medical journal articles and books. In contrast, my profession had never defined me.
I always thought we’d be a two-physician household. But a doctor’s day is unpredictable — if a sick patient comes in, you don’t leave until he or she is taken care of. My wife and I had two small children, and we were planning a third. And the future of medicine was uncertain, and both of our incomes derived from it.
If I had been 50, I would have ignored my uncertainty and stayed in medicine. But I was in my mid-30s, and I told myself, “I can’t feel like this for 30 more years.” I was 36 when I began studying to become a CFP - certified financial planner.
click: Certified Financial Planner (CFP) Definition
click: CFP Board
Click: CFP Certification Requirements - CFP Board
Click: Become a CFP Professional - CFP BoardClick: Certified Financial Planner
When I was 38, I shifted to three days a week as a doctor and two days a week as a financial planner at Raymond James, but I learned that you can’t be a part-time doctor and still keep up with the latest in medical practice. At 40, I became a full-time planner.
I never worried about changing careers, because I assumed that success would happen quickly. Instead, it took me five years to build a book of financial-planning clients. My wife said to me: “What happened? I thought I married a doctor!”
Not only do doctors enjoy prestige and good pay, but the income is also reliable. And that’s what I was giving up. Anyone who is an M.D. will make a nice living. Doctors don’t have to hunt for patients. But as a financial planner, you have to recruit clients, and you make nothing until you have them. I have no selling skills — the only reason I succeeded is that my wife’s income enabled me to hang in there until I achieved a critical mass of clients.
More than a decade into my new career, I retained my first client who was also a physician. That was when I realized I could combine my two skills by becoming a financial planner for doctors. In August 2012, I founded my own firm, and I now work exclusively with dentists and physicians.
At first glance, medicine and financial planning don’t seem to have much in common. But they do. When you are a physician, people come to you with health problems, and you ask questions, do tests, come up with a diagnosis and treat them. As a financial planner, clients come to me with financial problems, and I ask them questions, come up with solutions and carry out a program.
The stakes are much higher when you are a doctor, though. As a financial planner, if I make a mistake I can usually correct it. But as a doctor, if you make a mistake, a patient can be harmed or even die.
I have more respect for physicians today than when I was one myself. Helping to free my clients from worries about their finances so they can concentrate on their practice, their family and other interests is a tremendous source of satisfaction for my staff and me.
I’ve fielded many calls from people looking to switch careers and get into financial planning. I tell them two things. One, it will take longer than you expect to replace the income you’ve been making. And two, unless you have a spouse who can support your family for a while, or have another way to pay the bills, consider alternative ways to enter the field — for example, by starting as a junior person in a financial planning office with a salary so you can learn the ropes.
These days, it’s not unusual for people to live and work into their 70s or even 80s. If you’re not happy with the career you’ve chosen, even if you went to graduate school for it, don’t wait to transform yourself. People ask me, “Do you miss medicine?” And I answer, “If I missed medicine, I’d still be doing it.”
Source: (1) NYT, (2) JOEL GREENWALD, (3) STAF, Inc.
Greenwald Wealth Management 1660 South Highway 100, Suite 270 St. Louis Park, MN 55416-4534 Phone: (952) 641-7595
Click the links below for further information
- Financial Planning for Doctors, Dentists | Greenwald Wealth ...www.joelgreenwald.com/
Founding principal Joel Greenwald is a medical doctor and CERTIFIED FINANCIAL PLANNER™ professional who practiced internal medicine in Minnesota for ... - Our Team - Greenwald Wealth Managementwww.joelgreenwald.com/ourteam.aspx
As a CERTIFIED FINANCIAL PLANNER™ professional, physician, author, and founder of Greenwald Wealth Management, Joel has been helping physicians ... - about us - Greenwald Wealth Managementwww.joelgreenwald.com/Our_Firm.aspx
Based in St. Louis Park, Minnesota, Greenwald Wealth Management focuses ... Prior to launching the firm in August 2012, founder Joel Greenwald was a ... - Contact - Greenwald Wealth Managementwww.joelgreenwald.com/contactinformation.aspx
For immediate assistance, please call us at 952-641-7595. E-Mail: joel@joelgreenwald.com. Office Location: 1660 South Highway 100, Suite 270. St. Louis Park ... - Our Principles - Greenwald Wealth Managementwww.joelgreenwald.com/Our_Principles.aspxAfter helping successful physicians and dentists grow, manage, and protect wealth throughout the past decade, we have developed several core principles that ...
Unemployed in Europe
Stymied by Lack of Technology Skills
to stymie or to stymy = (1)to hinder or prevent the progress or accomplishment of .... (2) an obstacle or obstruction
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DUBLIN — Week after week, newspapers issue a stream of hopeful headlines: Microsoft, PayPal, Fujitsu and scores of other companies are expanding their investments in Ireland, creating thousands of jobs as unemployment hovers near record highs.
There is just one hitch: Not enough people are qualified to fill all the jobs. In some cases, the companies have had to look outside Ireland to recruit candidates with the right skills.
After a five-year economic crisis, the mismatch represents one of the thorniest problems facing Ireland and many other European countries. Hundreds of thousands of people who lost work, and many young people entering the work force, are finding that their skills are ill suited to a huge crop of innovation-based jobs springing up across the Continent.
“In all countries, there is an expectation that many of the new jobs created will be in the knowledge-intensive economy,” said Glenda Quintini, a senior labor economist at the Organization for Economic Cooperation and Development. “But we are seeing a worrisome skills mismatch that means a large number of unemployed people are not well prepared for the pool of jobs opening up.”
Employers have long complained that graduates do not have the skills they need. But in a recent click: report, the International Labor Organization warned that “skills mismatches and occupational shifts have worsened” in Europe in the wake of the crisis. People laid off in hard-hit sectors, from construction to finance, face lengthy retraining, while too few graduates entering the job market have chosen engineering, science or technology degrees for the growing innovation-based jobs market.
The gap in Europe has important consequences for the recovery as the euro zone grapples with unemployment rates stuck stubbornly above 12 percent: It may hold back a return to meaningful growth and generate “significant economic and social costs,” according to the European Commission, the policy-making arm of the European Union.
The International Labor Organization went further, warning that the gap might contribute to extended spells of unemployment and might reduce the effectiveness of policy interventions to stimulate growth. In the United States, the phenomenon has also helped contribute to a rise in long-term joblessness, the organization said.
Around two million job vacancies around the European Union are languishing unfilled, about the same number as in 2010, in sectors ranging from hotel work to computer programming, according to Eurostat, the statistics office of the European Union.
A study released in November by Eurofound, the research arm of the European Union, showed that despite the recession, almost 40 percent of companies reported difficulty in finding workers with the right skills, compared with 37 percent in 2008 and 35 percent in 2005.
The problem is especially striking for innovation-based companies, which are generating jobs at a rapid clip as technology spreads through every sector of the economy. By 2015, about 900,000 information and communications technology vacancies may go unfilled in the European Union, the European Commission warned in a recent report on the digital economy. The gap “is of major concern to European competitiveness” and to the economy as a whole, the commission said.
Governments and companies around Europe are fast-tracking efforts to retrain the unemployed for a burst of technology-related jobs. They are also stepping up campaigns to lure university students to mathematics, engineering and science in place of popular courses in the humanities and social sciences.
In Ireland, the government introduced a series of retraining and higher-education programs and sought to polish the allure of mathematics degrees as alarm bells sounded over the issue a couple of years ago. At the time, unemployment was around 14 percent after an economic collapse that destroyed jobs in the construction sector, which had employed around a quarter of the young men in the country.
Multinational technology and social media companies kept investing, lured by Ireland’s ultralow 12.5 percent corporate tax rate and an English-speaking work force. But many have been forced to look outside the country for employees with the right skills, despite more than 391,500 being out of work and a jobless rate of around 12.5 percent.
The issue peaked last summer, when PayPal’s chief executive in Ireland, Louise Phelan, stoked controversy by acknowledging that the company had recruited from 19 other countries for 500 positions in its operations center in Dundalk because of a lack of foreign-language skills among Irish nationals. This summer, Fujitsu, which employs 800 people in Ireland, revealed that it had had to hire most of its Ph.D.-level experts from abroad.
All told, around half of information technology jobs in Dublin were being filled with foreign workers, while around 4,500 information technology jobs in the country were going unfilled because of a limited supply of suitably skilled applicants, various studies have shown. Paul Sweetman, the director of ICT Ireland, a business lobby group, said that part of Ireland’s strategy was to enhance its attractiveness as an investment and work destination by luring bright minds from around the world to the technology sector.
The skills shortage prevented Ireland-based companies from “effectively executing their business strategies,” which created a risk of lower productivity and slower growth, according to a recent report by the consulting company Accenture.
Part of the problem for all countries, not only Ireland, was that technology-related university training lost appeal after the dot-com bust in the early 2000s, said Regina Moran, the executive director of Fujitsu in Ireland. In Ireland, people flocked to construction or tourism work, which blossomed in the middle of the decade.
Ian Sharpe was one of them. He spent nearly 15 years working in the hotel industry until Ireland’s banking crisis strangled the Celtic Tiger and left him jobless in 2010. He languished on benefits as he tried fruitlessly to find new work.
But last year he latched on to back-to-work programs that the government had introduced with businesses.
Recently, 182 candidates — most of them unemployed, with backgrounds in fields including farming, construction and even astrophysics — went through retraining. One company, VMware, hired 82 people, and other companies hired nearly everyone else — including Mr. Sharpe.
On a recent weekday, he was huddled with a team of technicians in the Cork-based offices of VCE, a joint venture between VMware, Cisco, EMC and Intel that provides cloud and virtualization software and services.
After six months as an intern, he was hired full time to help manage a data center, with an annual salary of around 30,000 euros, or about $40,000 — about what he was making as a hotel manager.
The initiatives are not without flaws. For example, as part of the JobBridge internship program, people continue to collect unemployment and receive a modest €50 stipend per week. For many, that barely covers transportation and food. Stories have littered the Irish press of abuses by companies in the program, such as giving interns either menial tasks or fully fledged professional work with no pay, and with no job ultimately materializing.
Such talk was so widespread that Mr. Sharpe said that people had urged him not to enter the program. But he wanted to avoid the fate of a number of his friends who had fallen into a rut, where the longer they were unemployed, the less likely they were to get back into the job market.
“I know people who had to get medication for being depressed, because they don’t see anything coming,” he said.
He now has an air of hope. “I’ve gone from someone who had never been professionally involved in I.T. to getting an engineering position just nine months later,” Mr. Sharpe said.
“You can see where you’re going,” he added. “Finally, there’s something to aim for.”
Source: NYT
________________________________
When the Going Gets Tough,
Job Hunters Call In the Stunt Résumé
See one website as an example: copy & paste to search: Employadam.com
See the pictures, see the texts, see the ideas
Vitae Delivered With a Pillow or by a Stuffed Carrier Pigeon Bring Attention but Not Always Gigs
The box was delivered to the Los Angeles office of One Fine Stay, a business that arranges short-term accommodations in luxury homes. Stuffed inside was a queen-size pillow in a cheap cotton pillowcase.
A résumé, enlarged to about 24 by 33 inches, was attached to it with cellophane tape. It came from a man the staff began to call Pillow Guy, who was looking for a job. Nobody can remember his name.
"It was funny for about five seconds," says Alexandra Rethore, One Fine Stay's L.A. operations director, who signed for the package and opened it thinking it might contain linens she had ordered.
The résumé was torn and blurred from water damage in transit, and the writing at the top, with Pillow Guy's contact information, was too wrinkled to read. To make it legible, Ms. Rethore ironed it.
The intriguing gimmick didn't ultimately work for Pillow Guy, who was rejected after one phone conversation and a face-to-face interview. Also rebuffed by One Fine Stay: an applicant who "delivered" a résumé via a stuffed carrier pigeon and another who included a link to his unpublished erotica.
Stunts like these became fairly common during the recession and they still are in today's slack labor market. Companies received an average of 383 applications for every opening they advertised in 2013, according to CEB, formerly known as the Corporate Executive Board, and many are funneled through automated tracking systems that rank résumés based on such things as keyword matches. Bypassing the robots requires a blend of ingenuity, skill and chutzpah.
Sometimes the ploys work, allowing run-of-the-mill candidates to grab a recruiter's attention and hold it long enough to land a job. In the best cases, they let applicants show that they have devoted some thought to an employer's brand and culture. Mostly, though, whimsical applications are just good for a laugh.
Companies like the online craft marketplace Etsy have seen it all. Senior recruiting manager Bobby Gormsen says recent entries include an embroidered cover letter, a potholder résumé, a paper-garland résumé that looked as if it could be strung on a Christmas tree and an application that bobbed up in a corked bottle.
"I'm sort of immune to this stuff," said Mr. Gormsen. The candidates "get points for creativity, but it only tells one side of the story. We have a set of hard skills an applicant has to meet"—ranging from years of experience to relevant software languages—in order to be considered. No amount of creativity can compensate if those are missing, he said.
The theatrics still can get a foot in the door. Leslie Hall, co-founder of New York marketing agency ICED Media, said she once needed to hire someone to handle relationships with bloggers and writers for online media campaigns. One candidate who came in for an interview sent a thank-you note the next day—along with pizza for the whole office. The grand gesture hit its mark. It "was a sign that he knew how to get someone's attention, which is obviously a core competency for the position," Ms. Hall said.
She says he turned out to be a dud. Employees saw him watching "South Park" on his computer and taking naps at his desk. "There was absolutely no output whatsoever," said Ms. Hall, who fired him after three months.
"We [had] allowed ourselves to be charmed," she said.
So when a candidate recently submitted chocolate bars with a résumé printed on paper resembling Hershey wrappers with his qualifications listed on the nutrition label, ICED took a pass. "I'd like to think we now have greater discipline," said Ms. Hall. "We all thought the Hershey bar was really cute, but no one said, 'Oh, the Hershey bar, we need to hire him.' "
In other cases, quirky wins the day. Aleks Kamko overcame a relative lack of computer-science experience to win a coveted internship at Facebook Inc. last year, in part by creating a YouTube video listing five reasons the social network should hire him, including his passion for software code and a desire to make the world a better place. The University of California, Berkeley sophomore filmed it in his dorm hallway, spending about six hours writing the script and 18 hours editing it, he said.
It worked. "We need to figure out quickly if someone has energy and enthusiasm for the company," said Adam Ward, a recruiting director at Facebook who viewed Mr. Kamko's video. With something like that "you can check that box."
Despite the low success rate, creative contenders likely won't let up as long as they keep hearing about people like Adam Pacitti. After graduating from England's University of Winchester in 2012, he sent out 250 résumés for media production jobs over six weeks, yielding exactly two replies (both rejections), he said. So in January last year, he rented a billboard in central London. Next to a photo of himself, he splashed the words: "I spent my last £500 on this billboard. Please give me a job. Employadam.com."
He tweeted a picture and waited for the effort to go viral. It did, and within a few days, job offers poured in—from ad agencies, plumbers, lawyers and others. Now he works at a digital marketing company that contacted him after seeing his billboard via social media. He says he is "a viral producer, whatever that means."
Source: Internet news
_______________________________
Job Hunters Call In the Stunt Résumé
See one website as an example: copy & paste to search: Employadam.com
See the pictures, see the texts, see the ideas
Vitae Delivered With a Pillow or by a Stuffed Carrier Pigeon Bring Attention but Not Always Gigs
The box was delivered to the Los Angeles office of One Fine Stay, a business that arranges short-term accommodations in luxury homes. Stuffed inside was a queen-size pillow in a cheap cotton pillowcase.
A résumé, enlarged to about 24 by 33 inches, was attached to it with cellophane tape. It came from a man the staff began to call Pillow Guy, who was looking for a job. Nobody can remember his name.
"It was funny for about five seconds," says Alexandra Rethore, One Fine Stay's L.A. operations director, who signed for the package and opened it thinking it might contain linens she had ordered.
The résumé was torn and blurred from water damage in transit, and the writing at the top, with Pillow Guy's contact information, was too wrinkled to read. To make it legible, Ms. Rethore ironed it.
The intriguing gimmick didn't ultimately work for Pillow Guy, who was rejected after one phone conversation and a face-to-face interview. Also rebuffed by One Fine Stay: an applicant who "delivered" a résumé via a stuffed carrier pigeon and another who included a link to his unpublished erotica.
Stunts like these became fairly common during the recession and they still are in today's slack labor market. Companies received an average of 383 applications for every opening they advertised in 2013, according to CEB, formerly known as the Corporate Executive Board, and many are funneled through automated tracking systems that rank résumés based on such things as keyword matches. Bypassing the robots requires a blend of ingenuity, skill and chutzpah.
Sometimes the ploys work, allowing run-of-the-mill candidates to grab a recruiter's attention and hold it long enough to land a job. In the best cases, they let applicants show that they have devoted some thought to an employer's brand and culture. Mostly, though, whimsical applications are just good for a laugh.
Companies like the online craft marketplace Etsy have seen it all. Senior recruiting manager Bobby Gormsen says recent entries include an embroidered cover letter, a potholder résumé, a paper-garland résumé that looked as if it could be strung on a Christmas tree and an application that bobbed up in a corked bottle.
"I'm sort of immune to this stuff," said Mr. Gormsen. The candidates "get points for creativity, but it only tells one side of the story. We have a set of hard skills an applicant has to meet"—ranging from years of experience to relevant software languages—in order to be considered. No amount of creativity can compensate if those are missing, he said.
The theatrics still can get a foot in the door. Leslie Hall, co-founder of New York marketing agency ICED Media, said she once needed to hire someone to handle relationships with bloggers and writers for online media campaigns. One candidate who came in for an interview sent a thank-you note the next day—along with pizza for the whole office. The grand gesture hit its mark. It "was a sign that he knew how to get someone's attention, which is obviously a core competency for the position," Ms. Hall said.
She says he turned out to be a dud. Employees saw him watching "South Park" on his computer and taking naps at his desk. "There was absolutely no output whatsoever," said Ms. Hall, who fired him after three months.
"We [had] allowed ourselves to be charmed," she said.
So when a candidate recently submitted chocolate bars with a résumé printed on paper resembling Hershey wrappers with his qualifications listed on the nutrition label, ICED took a pass. "I'd like to think we now have greater discipline," said Ms. Hall. "We all thought the Hershey bar was really cute, but no one said, 'Oh, the Hershey bar, we need to hire him.' "
In other cases, quirky wins the day. Aleks Kamko overcame a relative lack of computer-science experience to win a coveted internship at Facebook Inc. last year, in part by creating a YouTube video listing five reasons the social network should hire him, including his passion for software code and a desire to make the world a better place. The University of California, Berkeley sophomore filmed it in his dorm hallway, spending about six hours writing the script and 18 hours editing it, he said.
It worked. "We need to figure out quickly if someone has energy and enthusiasm for the company," said Adam Ward, a recruiting director at Facebook who viewed Mr. Kamko's video. With something like that "you can check that box."
Despite the low success rate, creative contenders likely won't let up as long as they keep hearing about people like Adam Pacitti. After graduating from England's University of Winchester in 2012, he sent out 250 résumés for media production jobs over six weeks, yielding exactly two replies (both rejections), he said. So in January last year, he rented a billboard in central London. Next to a photo of himself, he splashed the words: "I spent my last £500 on this billboard. Please give me a job. Employadam.com."
He tweeted a picture and waited for the effort to go viral. It did, and within a few days, job offers poured in—from ad agencies, plumbers, lawyers and others. Now he works at a digital marketing company that contacted him after seeing his billboard via social media. He says he is "a viral producer, whatever that means."
Source: Internet news
_______________________________
An article everyone should read
The Workers Defense Project,
a Union in Spirit
The original link to this article with related pictures is at the end of this article
LIKE most construction workers who come to see Patricia Zavala, the two dozen men who crowded into her office in Austin, Tex., one afternoon in March had a complaint.
The workers, most of them Honduran immigrants, had jobs applying stucco to the exterior of a 17-story luxury student residence. It was difficult, dangerous work, but that was to be expected. What upset them was that for the previous two weeks their crew leader had not paid them; each was owed about $1,000.
Ms. Zavala, the workplace justice coordinator at the Workers Defense Project, listened to their stories and then spent a month failing to persuade the contractors to pay the back wages. So Ms. Zavala, 27, a graduate of the University of California, Santa Barbara, and the daughter of a Peruvian immigrant, turned to what she calls the nuclear option: the workers filed a lien on the building site. That legal maneuver snarls any effort to make transactions on the property and sometimes causes banks and investors to freeze financing.
The lien, along with a threatened protest march, quickly got the attention of the dormitory’s developer, American Campus Communities, and the general contractor, Harvey-Cleary Builders. Within hours, Harvey-Cleary arranged a meeting between the stucco contractor and the unpaid workers, and, presto, Harvey-Cleary and the contractor, Pillar Construction, agreed to pay the $24,767 owed to the workers.
“Liens are the very best tool workers have,” said Cristina Tzintzún, executive director of the Workers Defense Project. Instead of dealing with subcontractors, she said, “you’re negotiating with the project owner and general contractor. They can no longer shift responsibility and say: ‘I paid the guy downriver. It’s out of my hands.’ ”
The Workers Defense Project, founded in 2002, has emerged as one of the nation’s most creative organizations for immigrant workers. Its focus is the Texas construction industry, which employs more than 600,000 workers, about half of whom, several studies suggest, are unauthorized immigrants.
Immigrant workers, especially those who are undocumented, are especially vulnerable to abuse by contractors. Each year, the Workers Defense Project, which has 2,000 dues-paying members, receives about 500 complaints from workers who say they were cheated out of overtime or denied a water break in Texas’ scorching summer heat or stuck with huge hospital bills for an on-the-job injury.
The Workers Defense Project is one of 225 worker centers nationwide aiding many of the country’s 22 million immigrant workers. The centers have sprouted up largely because labor unions have not organized in many fields where immigrants have gravitated, like restaurants, landscaping and driving taxis. And there is another reason: many immigrants feel that unions are hostile to them. Some union members say that immigrants, who are often willing to work for lower wages, are stealing their jobs.
“The Workers Defense Project is not like a union — it welcomes everyone,” said Luis Rodriguez, a Mexican immigrant who sought the group’s help after he lost a finger in a construction accident. “It is always willing to take in more people and help more people.”
At a recent Workers Defense Project meeting — they are held every Tuesday night — the atmosphere was part pep rally, part educational session, part social hour. After a dinner of tacos, rice and beans, about 60 workers plotted strategy for a demonstration against the developer of a 1,000-room Marriott hotel. A skit mocking the developer drew raucous laughter. The energy and sense of solidarity were reminiscent of what America’s labor unions had many decades ago, before they started to stumble and stagnate.
Worker centers, which are among the most vigorous champions of overhauling immigration laws, coalesce around issues or industries. For example, there is Domestic Workers United, which persuaded New York and Hawaii to enact a bill of rights for housekeepers and nannies, and the Coalition of Immokalee Workers, which has gotten most Florida tomato growers to adopt a workers’ code of conduct and to increase pay by at least 20 percent. Young Workers United played an important role in persuading the San Francisco City Council to enact a paid-sick-days law and a minimum wage of $10.55 an hour. With labor unions losing members and influence, these centers are increasingly seen as an important alternative form of workplace advocacy, although no one expects them to be nearly as effective as unions in winning raises, pensions or paid vacations.
“Worker centers are filling a void by reaching out to a work force that is particularly hard to reach out to,” said Victor Narro, a specialist on immigrant workers at the University of California, Los Angeles.
Jefferson Cowie, a labor historian at Cornell, said: “Worker centers are part of the broad scramble of how to improve things for workers outside the traditional union/collective bargaining context. They’ve become little laboratories of experimentation.”
As worker centers go, the Workers Defense Project in Austin has racked up an unusual number of successes. It has won more than $1 million in back pay over the last decade on behalf of workers alleging violations of minimum wage and overtime laws. A report it wrote on safety problems spurred the Occupational Safety and Health Administration to investigate 900 construction sites in Texas — leading to nearly $2 million in fines.
And, despite a liberal image, the group made common cause with law-abiding contractors to persuade the state’s Republican-dominated legislature to approve a law that made wage theft — an employer’s deliberate failure to pay wages due — a criminal offense. The Workers Defense Project has just 18 employees, and its executive director, Ms. Tzintzún, 31, earns just $43,000 a year. But it managed to bring mighty Apple to the negotiating table. The group extracted a promise that construction workers on Apple’s new Austin office complex would receive at least $12 an hour, not the more commonly paid $10 — as well as workers’ compensation coverage.
The workers’ compensation pledge was an important victory. The construction industry in Texas has a higher fatality rate than that in most other states, but Texas is the only one that does not require building contractors to provide workers’ compensation to cover an injured worker’s hospital bills and disability benefits.
“We like organizing here in Texas,” Ms. Tzintzún said. “Things can only go up because working conditions are so awful.”
AS soon as word got out in March 2012 that Apple was planning to build a $300 million operations center in Austin, the Workers Defense Project sprang into action. Gregorio Casar, the group’s business liaison — his title might more fittingly be thorn-in-the-side — learned that Apple hoped to receive tax incentives in exchange for promising to create 3,600 full-time jobs with salaries averaging at least $63,000.
But Mr. Casar, a University of Virginia graduate who is the son of Mexican immigrants, assumed that Apple’s construction contractors would pay much less than that. The typical wage for nonunion construction laborers in Texas is just $10 an hour — about $20,000 a year.
Relying on relationships that the Workers Defense Project had built over the years, Mr. Casar, 24, persuaded the Austin City Council to require Apple to hold talks with the group as a condition for $8.6 million in city tax incentives. (The group had previously persuaded the council to enact Texas’ first ordinance requiring rest and water breaks for construction workers.)
In these discussions, Mr. Casar demanded that Apple’s construction contractors pay at least $12 an hour, provide safety training and workers’ compensation, and allow the group’s representatives to go to the site to inspect working conditions.
“Like many companies, Apple resisted at first because they wanted total flexibility,” Mr. Casar said.
So the group turned up the heat. On March 22, just before the council’s hearing on Apple’s tax incentives, 100 protesters demonstrated outside City Hall. Inside the council chambers, Jose Nieto, a demolition worker affiliated with the Workers Defense Project, testified about how he had once nearly bled to death when a large mirror he was removing from a hotel wall broke and sliced into his arm. His hospital bill, which included multiple operations, was more than $80,000. He had no workers’ compensation to pay for the operations or support his family.
Mr. Nieto implored the council not to grant Apple the tax incentives unless it accepted the Workers Defense Project’s demands. “It is in your power to prevent things like this from happening to other people,” he told the council.
Several weeks of negotiations ensued. Apple — then under criticism for conditions at the Foxconn plants in China that build its products — agreed to almost all of the group’s demands.
“Apple is a strong supporter of workers’ rights around the world,” Steve Dowling, an Apple spokesman, said recently. “We’ve had a productive dialogue with the Workers Defense Project since we first heard from them last year. We shared many of the group’s goals.”
Ms. Tzintzún has an explanation for these victories. “We make it very hard for people to oppose us publicly,” she said. “We know what we’re asking for is the bare minimum, and we remind everybody of that.”
In taking on one of the world’s most successful companies, the Workers Defense Project showed how far it has come. Six years ago, it had just two employees: Ms. Tzintzún, then a senior at the University of Texas, and Emily Timm, now the group’s policy director, who had just graduated from Brown University and was working part time at a homeless shelter where many low-paid immigrant construction workers passed through.
The group limped along with insecure financing until 2009. That year, three immigrant workers plunged 11 floors when their scaffold collapsed in Austin; all three died. A week later, the Workers Defense Project released a 68-page report on worker safety.
The report had been a year in the making. Prepared with the help of University of Texas researchers, it found that two-thirds of 312 construction workers surveyed had not received basic health and safety training and that three-fourths had no health insurance. Most shocking, it calculated that one construction worker died in Texas every two-and-a-half days from work-related injuries.
To draw attention to the report — and to provide a television-friendly shot — Ms. Tzintzún and Ms. Timm held a news conference in front of 142 pairs of empty work boots. That was the number of construction workers who died in Texas in 2007. The report received media attention across Texas and turned the group overnight into an influential voice in a state where labor unions are weak.
The group’s higher profile has also meant more criticism. Stan Marek, chairman of a construction company based in Houston, called the group “a junkyard dog.” “They keep coming at you,” he said.
Scott Haeglin, project manager for Harvey-Cleary, voiced some annoyance with the group for filing the nettlesome lien and holding a protest march despite the settlement. “We take pride in treating our workers well and resolving these matters,” he said.
Phil Thoden, president of the Austin chapter of the Associated General Contractors of America, said: “They have a tendency to paint the entire industry in a negative light. It’s frustrating that when there’s an incident on a job site, they help give it tremendous media coverage and it leaves the public with the impression that contractors are doing nothing to protect their workers.”
Industry lobbyists have blocked many of the group’s initiatives in the State Capitol. A proposal to stop the common practice of classifying workers as independent contractors — allowing construction contractors to avoid providing benefits or paying overtime — died in committee. So did a proposal to require workers’ compensation in construction.
Some business-backed groups have begun a new attack on worker centers in recent weeks, calling them union-front groups set up to circumvent legal requirements that unions face, like strict financial disclosure.
Not all businesses object to the centers. The Workers Defense Project has made allies of many who dislike being undercut by what they call “low-road contractors” — for instance, those that do not provide workers’ compensation.
“It makes no sense — in Texas I’m required to have insurance on the cargo I haul up a construction elevator, but not on the workers in that elevator,” said Andy Anderson, owner of Linden Steel, which provides steel and labor to building projects.
Impressed by the Workers Defense Project’s success in helping immigrant workers and highlighting job safety, the Ford Foundation and others have showered it with grants. As a result, the project’s budget has swelled to $1 million — four times what it was just four years ago. The money has helped finance building site inspectors and safety and computer classes.
Many worker centers rely heavily on grants. “We’re flavor of the month right now,” Ms. Tzintzún said. “I worry what happens to our funding when we’re not.”
Henry Allen, the recently retired executive director of the Discount Foundation, one of the group’s first benefactors, voiced confidence in its future. “They’re a real model,” he said. “If there’s a future for organizing for worker justice, I think it’s the Workers Defense Project.”
LUIS RODRIGUEZ, 42, a short and stocky man with a thick mustache and a deep, bass voice, came to the Workers Defense Project early last year. A heavy industrial drill had torn off his right index finger as he dislodged it from a wall. Doctors could not reattach the finger, and after 20 years of construction work, Mr. Rodriguez was suddenly too disabled to work.
That contractor provided workers’ comp, but the checks did not arrive — and when he went to the state workers’ comp office, he ran into one obstacle after another. “A lady working there whispered to me, ‘You should go to the Workers Defense Project,’ ” he said.
The project helped him get his checks, and it provided him with a cause: worker empowerment. “I was really lost when I went to them,” he said. “I was one of those people who didn’t know anything. But now I know my rights. Now I won’t let some jerk step on me.”
Educating immigrant workers and turning them into activists and leaders is central to the project’s mission. Immigrants make up half of its board, and Mr. Rodriguez is on its Construction Workers Committee. “No union can substitute for what the Workers Defense Project does,” he said. “A union is a more closed group.”
Unions often help workers win better wages and safer workplaces, but unionizing is especially hard in right-to-work states like Texas. The large number of unauthorized immigrants makes it even harder, because many of them fear that outright union support could lead to deportation. (The Workers Defense Project does not ask whether workers who come to it are in the United States legally.)
In the project’s early days, unions often viewed it as an antagonist, a supporter of immigrants who stole jobs from Americans. But unions now often work and march alongside the Workers Defense Project. The change dates from its influential 2009 report about the dangers of construction work in Texas.
“If you had asked me a few years ago, would we be working with a group of nonunion workers to help them better their lives, we’d ask, why would we help people that are taking our jobs?” said Michael Cunningham, executive director of the Texas Building and Construction Trades Council. “Well, the fact is they already have our jobs.
“By working together,” he continued, “we’re trying to drive out low-road contractors that are driving down wages.”
As organized labor strains to reverse its membership decline, unions have established an uneasy alliance with many worker centers, hoping that they might someday help bring immigrant workers into established unions.
“There’s a need to experiment with new ways to reach workers who haven’t been reached by unions,” said Anna Fink, a liaison between the A.F.L.-C.I.O. and foundations that help finance worker centers. “The labor movement doesn’t have the deep trust that worker centers have built with immigrant worker communities.”
Worker centers have done much to discourage wage theft and have marginally increased the pay of some workers. But they do not begin to have the power that unions once had to vault workers into a middle-class life.
Mr. Rodriguez may feel empowered, but he is also poor. After losing his finger, he could not work for seven months. His family of five lost its apartment and moved into a trailer. His son who is now 20 quit high school to help support the family, and to his great shame, Mr. Rodriguez had to cancel his daughter’s quinceañera celebration.
When he returned to work, he found a job framing walls and staircases that paid $11 an hour, $440 a week. That, he said, was not enough, considering that his rent is $850 a month, not to mention costs for electricity, telephone, gasoline, car and food. Some months he makes ends meet only because of that 20-year-old son, who earns money as a disc jockey. A few weeks ago, Mr. Rodriguez found a job paying $14 an hour. He hopes it lasts.
“Eleven dollars an hour isn’t really enough,” he said. “It’s difficult to survive on that.”
But he is grateful to have survived. Many construction workers do not, a truth brought home in 2011, when the Workers Defense Project organized a haunting procession to the State Capitol with 138 mock coffins, commemorating all the Texas construction workers who died in job-related incidents in 2009.
Now, each year, the group commemorates a Day of the Fallen. The workers at the defense project come together around tragedy and hurt, but with a larger purpose, “Now,” Mr. Rodriguez said, “I tell other workers how to stand up for their rights.”
Click green for further info
Source: NYT
Below the link to the original article - has related pictures
In case the link has expired search the article in The New York Times "Breaking News" page
Click green The Workers Defense Project, a Union in Spirit The group, which focuses on the construction industry in Texas, has emerged as one of the nation's most creative and responsive organizations ...
The New York Times - August 10, 2013 - By STEVEN GREENHOUSE - Business Day - Article - Print Headline: "A Union in Spirit"
In case the link has expired search the article in The New York Times "Breaking News" page - Has good pictures for the article
_________________________________
The Workers Defense Project,
a Union in Spirit
The original link to this article with related pictures is at the end of this article
LIKE most construction workers who come to see Patricia Zavala, the two dozen men who crowded into her office in Austin, Tex., one afternoon in March had a complaint.
The workers, most of them Honduran immigrants, had jobs applying stucco to the exterior of a 17-story luxury student residence. It was difficult, dangerous work, but that was to be expected. What upset them was that for the previous two weeks their crew leader had not paid them; each was owed about $1,000.
Ms. Zavala, the workplace justice coordinator at the Workers Defense Project, listened to their stories and then spent a month failing to persuade the contractors to pay the back wages. So Ms. Zavala, 27, a graduate of the University of California, Santa Barbara, and the daughter of a Peruvian immigrant, turned to what she calls the nuclear option: the workers filed a lien on the building site. That legal maneuver snarls any effort to make transactions on the property and sometimes causes banks and investors to freeze financing.
The lien, along with a threatened protest march, quickly got the attention of the dormitory’s developer, American Campus Communities, and the general contractor, Harvey-Cleary Builders. Within hours, Harvey-Cleary arranged a meeting between the stucco contractor and the unpaid workers, and, presto, Harvey-Cleary and the contractor, Pillar Construction, agreed to pay the $24,767 owed to the workers.
“Liens are the very best tool workers have,” said Cristina Tzintzún, executive director of the Workers Defense Project. Instead of dealing with subcontractors, she said, “you’re negotiating with the project owner and general contractor. They can no longer shift responsibility and say: ‘I paid the guy downriver. It’s out of my hands.’ ”
The Workers Defense Project, founded in 2002, has emerged as one of the nation’s most creative organizations for immigrant workers. Its focus is the Texas construction industry, which employs more than 600,000 workers, about half of whom, several studies suggest, are unauthorized immigrants.
Immigrant workers, especially those who are undocumented, are especially vulnerable to abuse by contractors. Each year, the Workers Defense Project, which has 2,000 dues-paying members, receives about 500 complaints from workers who say they were cheated out of overtime or denied a water break in Texas’ scorching summer heat or stuck with huge hospital bills for an on-the-job injury.
The Workers Defense Project is one of 225 worker centers nationwide aiding many of the country’s 22 million immigrant workers. The centers have sprouted up largely because labor unions have not organized in many fields where immigrants have gravitated, like restaurants, landscaping and driving taxis. And there is another reason: many immigrants feel that unions are hostile to them. Some union members say that immigrants, who are often willing to work for lower wages, are stealing their jobs.
“The Workers Defense Project is not like a union — it welcomes everyone,” said Luis Rodriguez, a Mexican immigrant who sought the group’s help after he lost a finger in a construction accident. “It is always willing to take in more people and help more people.”
At a recent Workers Defense Project meeting — they are held every Tuesday night — the atmosphere was part pep rally, part educational session, part social hour. After a dinner of tacos, rice and beans, about 60 workers plotted strategy for a demonstration against the developer of a 1,000-room Marriott hotel. A skit mocking the developer drew raucous laughter. The energy and sense of solidarity were reminiscent of what America’s labor unions had many decades ago, before they started to stumble and stagnate.
Worker centers, which are among the most vigorous champions of overhauling immigration laws, coalesce around issues or industries. For example, there is Domestic Workers United, which persuaded New York and Hawaii to enact a bill of rights for housekeepers and nannies, and the Coalition of Immokalee Workers, which has gotten most Florida tomato growers to adopt a workers’ code of conduct and to increase pay by at least 20 percent. Young Workers United played an important role in persuading the San Francisco City Council to enact a paid-sick-days law and a minimum wage of $10.55 an hour. With labor unions losing members and influence, these centers are increasingly seen as an important alternative form of workplace advocacy, although no one expects them to be nearly as effective as unions in winning raises, pensions or paid vacations.
“Worker centers are filling a void by reaching out to a work force that is particularly hard to reach out to,” said Victor Narro, a specialist on immigrant workers at the University of California, Los Angeles.
Jefferson Cowie, a labor historian at Cornell, said: “Worker centers are part of the broad scramble of how to improve things for workers outside the traditional union/collective bargaining context. They’ve become little laboratories of experimentation.”
As worker centers go, the Workers Defense Project in Austin has racked up an unusual number of successes. It has won more than $1 million in back pay over the last decade on behalf of workers alleging violations of minimum wage and overtime laws. A report it wrote on safety problems spurred the Occupational Safety and Health Administration to investigate 900 construction sites in Texas — leading to nearly $2 million in fines.
And, despite a liberal image, the group made common cause with law-abiding contractors to persuade the state’s Republican-dominated legislature to approve a law that made wage theft — an employer’s deliberate failure to pay wages due — a criminal offense. The Workers Defense Project has just 18 employees, and its executive director, Ms. Tzintzún, 31, earns just $43,000 a year. But it managed to bring mighty Apple to the negotiating table. The group extracted a promise that construction workers on Apple’s new Austin office complex would receive at least $12 an hour, not the more commonly paid $10 — as well as workers’ compensation coverage.
The workers’ compensation pledge was an important victory. The construction industry in Texas has a higher fatality rate than that in most other states, but Texas is the only one that does not require building contractors to provide workers’ compensation to cover an injured worker’s hospital bills and disability benefits.
“We like organizing here in Texas,” Ms. Tzintzún said. “Things can only go up because working conditions are so awful.”
AS soon as word got out in March 2012 that Apple was planning to build a $300 million operations center in Austin, the Workers Defense Project sprang into action. Gregorio Casar, the group’s business liaison — his title might more fittingly be thorn-in-the-side — learned that Apple hoped to receive tax incentives in exchange for promising to create 3,600 full-time jobs with salaries averaging at least $63,000.
But Mr. Casar, a University of Virginia graduate who is the son of Mexican immigrants, assumed that Apple’s construction contractors would pay much less than that. The typical wage for nonunion construction laborers in Texas is just $10 an hour — about $20,000 a year.
Relying on relationships that the Workers Defense Project had built over the years, Mr. Casar, 24, persuaded the Austin City Council to require Apple to hold talks with the group as a condition for $8.6 million in city tax incentives. (The group had previously persuaded the council to enact Texas’ first ordinance requiring rest and water breaks for construction workers.)
In these discussions, Mr. Casar demanded that Apple’s construction contractors pay at least $12 an hour, provide safety training and workers’ compensation, and allow the group’s representatives to go to the site to inspect working conditions.
“Like many companies, Apple resisted at first because they wanted total flexibility,” Mr. Casar said.
So the group turned up the heat. On March 22, just before the council’s hearing on Apple’s tax incentives, 100 protesters demonstrated outside City Hall. Inside the council chambers, Jose Nieto, a demolition worker affiliated with the Workers Defense Project, testified about how he had once nearly bled to death when a large mirror he was removing from a hotel wall broke and sliced into his arm. His hospital bill, which included multiple operations, was more than $80,000. He had no workers’ compensation to pay for the operations or support his family.
Mr. Nieto implored the council not to grant Apple the tax incentives unless it accepted the Workers Defense Project’s demands. “It is in your power to prevent things like this from happening to other people,” he told the council.
Several weeks of negotiations ensued. Apple — then under criticism for conditions at the Foxconn plants in China that build its products — agreed to almost all of the group’s demands.
“Apple is a strong supporter of workers’ rights around the world,” Steve Dowling, an Apple spokesman, said recently. “We’ve had a productive dialogue with the Workers Defense Project since we first heard from them last year. We shared many of the group’s goals.”
Ms. Tzintzún has an explanation for these victories. “We make it very hard for people to oppose us publicly,” she said. “We know what we’re asking for is the bare minimum, and we remind everybody of that.”
In taking on one of the world’s most successful companies, the Workers Defense Project showed how far it has come. Six years ago, it had just two employees: Ms. Tzintzún, then a senior at the University of Texas, and Emily Timm, now the group’s policy director, who had just graduated from Brown University and was working part time at a homeless shelter where many low-paid immigrant construction workers passed through.
The group limped along with insecure financing until 2009. That year, three immigrant workers plunged 11 floors when their scaffold collapsed in Austin; all three died. A week later, the Workers Defense Project released a 68-page report on worker safety.
The report had been a year in the making. Prepared with the help of University of Texas researchers, it found that two-thirds of 312 construction workers surveyed had not received basic health and safety training and that three-fourths had no health insurance. Most shocking, it calculated that one construction worker died in Texas every two-and-a-half days from work-related injuries.
To draw attention to the report — and to provide a television-friendly shot — Ms. Tzintzún and Ms. Timm held a news conference in front of 142 pairs of empty work boots. That was the number of construction workers who died in Texas in 2007. The report received media attention across Texas and turned the group overnight into an influential voice in a state where labor unions are weak.
The group’s higher profile has also meant more criticism. Stan Marek, chairman of a construction company based in Houston, called the group “a junkyard dog.” “They keep coming at you,” he said.
Scott Haeglin, project manager for Harvey-Cleary, voiced some annoyance with the group for filing the nettlesome lien and holding a protest march despite the settlement. “We take pride in treating our workers well and resolving these matters,” he said.
Phil Thoden, president of the Austin chapter of the Associated General Contractors of America, said: “They have a tendency to paint the entire industry in a negative light. It’s frustrating that when there’s an incident on a job site, they help give it tremendous media coverage and it leaves the public with the impression that contractors are doing nothing to protect their workers.”
Industry lobbyists have blocked many of the group’s initiatives in the State Capitol. A proposal to stop the common practice of classifying workers as independent contractors — allowing construction contractors to avoid providing benefits or paying overtime — died in committee. So did a proposal to require workers’ compensation in construction.
Some business-backed groups have begun a new attack on worker centers in recent weeks, calling them union-front groups set up to circumvent legal requirements that unions face, like strict financial disclosure.
Not all businesses object to the centers. The Workers Defense Project has made allies of many who dislike being undercut by what they call “low-road contractors” — for instance, those that do not provide workers’ compensation.
“It makes no sense — in Texas I’m required to have insurance on the cargo I haul up a construction elevator, but not on the workers in that elevator,” said Andy Anderson, owner of Linden Steel, which provides steel and labor to building projects.
Impressed by the Workers Defense Project’s success in helping immigrant workers and highlighting job safety, the Ford Foundation and others have showered it with grants. As a result, the project’s budget has swelled to $1 million — four times what it was just four years ago. The money has helped finance building site inspectors and safety and computer classes.
Many worker centers rely heavily on grants. “We’re flavor of the month right now,” Ms. Tzintzún said. “I worry what happens to our funding when we’re not.”
Henry Allen, the recently retired executive director of the Discount Foundation, one of the group’s first benefactors, voiced confidence in its future. “They’re a real model,” he said. “If there’s a future for organizing for worker justice, I think it’s the Workers Defense Project.”
LUIS RODRIGUEZ, 42, a short and stocky man with a thick mustache and a deep, bass voice, came to the Workers Defense Project early last year. A heavy industrial drill had torn off his right index finger as he dislodged it from a wall. Doctors could not reattach the finger, and after 20 years of construction work, Mr. Rodriguez was suddenly too disabled to work.
That contractor provided workers’ comp, but the checks did not arrive — and when he went to the state workers’ comp office, he ran into one obstacle after another. “A lady working there whispered to me, ‘You should go to the Workers Defense Project,’ ” he said.
The project helped him get his checks, and it provided him with a cause: worker empowerment. “I was really lost when I went to them,” he said. “I was one of those people who didn’t know anything. But now I know my rights. Now I won’t let some jerk step on me.”
Educating immigrant workers and turning them into activists and leaders is central to the project’s mission. Immigrants make up half of its board, and Mr. Rodriguez is on its Construction Workers Committee. “No union can substitute for what the Workers Defense Project does,” he said. “A union is a more closed group.”
Unions often help workers win better wages and safer workplaces, but unionizing is especially hard in right-to-work states like Texas. The large number of unauthorized immigrants makes it even harder, because many of them fear that outright union support could lead to deportation. (The Workers Defense Project does not ask whether workers who come to it are in the United States legally.)
In the project’s early days, unions often viewed it as an antagonist, a supporter of immigrants who stole jobs from Americans. But unions now often work and march alongside the Workers Defense Project. The change dates from its influential 2009 report about the dangers of construction work in Texas.
“If you had asked me a few years ago, would we be working with a group of nonunion workers to help them better their lives, we’d ask, why would we help people that are taking our jobs?” said Michael Cunningham, executive director of the Texas Building and Construction Trades Council. “Well, the fact is they already have our jobs.
“By working together,” he continued, “we’re trying to drive out low-road contractors that are driving down wages.”
As organized labor strains to reverse its membership decline, unions have established an uneasy alliance with many worker centers, hoping that they might someday help bring immigrant workers into established unions.
“There’s a need to experiment with new ways to reach workers who haven’t been reached by unions,” said Anna Fink, a liaison between the A.F.L.-C.I.O. and foundations that help finance worker centers. “The labor movement doesn’t have the deep trust that worker centers have built with immigrant worker communities.”
Worker centers have done much to discourage wage theft and have marginally increased the pay of some workers. But they do not begin to have the power that unions once had to vault workers into a middle-class life.
Mr. Rodriguez may feel empowered, but he is also poor. After losing his finger, he could not work for seven months. His family of five lost its apartment and moved into a trailer. His son who is now 20 quit high school to help support the family, and to his great shame, Mr. Rodriguez had to cancel his daughter’s quinceañera celebration.
When he returned to work, he found a job framing walls and staircases that paid $11 an hour, $440 a week. That, he said, was not enough, considering that his rent is $850 a month, not to mention costs for electricity, telephone, gasoline, car and food. Some months he makes ends meet only because of that 20-year-old son, who earns money as a disc jockey. A few weeks ago, Mr. Rodriguez found a job paying $14 an hour. He hopes it lasts.
“Eleven dollars an hour isn’t really enough,” he said. “It’s difficult to survive on that.”
But he is grateful to have survived. Many construction workers do not, a truth brought home in 2011, when the Workers Defense Project organized a haunting procession to the State Capitol with 138 mock coffins, commemorating all the Texas construction workers who died in job-related incidents in 2009.
Now, each year, the group commemorates a Day of the Fallen. The workers at the defense project come together around tragedy and hurt, but with a larger purpose, “Now,” Mr. Rodriguez said, “I tell other workers how to stand up for their rights.”
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Source: NYT
Below the link to the original article - has related pictures
In case the link has expired search the article in The New York Times "Breaking News" page
Click green The Workers Defense Project, a Union in Spirit The group, which focuses on the construction industry in Texas, has emerged as one of the nation's most creative and responsive organizations ...
The New York Times - August 10, 2013 - By STEVEN GREENHOUSE - Business Day - Article - Print Headline: "A Union in Spirit"
In case the link has expired search the article in The New York Times "Breaking News" page - Has good pictures for the article
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5 Industries Where Workers Have the Most Job Security
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Even as the economy is gaining strength, many people still feel anxious about their job prospects. Even people who have jobs may worry that things could change without warning.
If you’re looking for a job that comes with a little bit of security, check out this list from PayScale, which ranked the industries where employees last the longest in their positions.
Public Administration
Public-sector jobs often have a reputation for being secure ones, and with good reason. According to the PayScale report, public administration workers ages 35 to 45 had been in their jobs for an average of 6.4 years, while older workers (ages 45 to 55) had been in their positions for an average of 9.7 years.
This sector includes federal, state and local government agencies. These jobs are often administrative or office-type jobs that require good communication and computer skills.
Manufacturing
Indicators of the manufacturing sector’s health have stabilized in recent years, and the sector shows it. Workers ages 35 to 45 in this sector have been in their jobs for an average of 5.7 years, while older workers have been in for an average of 7.2 years.
This sector includes plants, factories and mills in addition to bakeries, candy stores and similar organizations that make products in the same location they are sold. The skills required depend on the type of manufacturing, but usually include attention to detail, and the ability to perform repetitive tasks quickly and accurately.
Transportation and Warehousing
This sector reported similar numbers to manufacturing, with an average of 5.6 years for younger workers and 7.1 for older ones.
The transportation and warehousing sector covers a wide variety of jobs, including transporting goods and passengers, scenic and sightseeing transportation, storing and warehousing goods, and transportation support jobs such as dispatching. Pipeline jobs are also included in this sector.
Specialized training is often required for careers in this sector, such as learning to fly a plane or run a locomotive, and knowledge of transportation regulations is important.
Wholesale Trade
Younger workers reported being in their jobs for an average of 5.4 years, while older workers had been in their positions for an average of 7 years.
The wholesaling sector includes the sale or arranging the purchase or sale of consumer goods, capital or durable non-consumer goods, and raw materials such as lumber or ore. These are typically office jobs that involve marketing, advertising, sales and customer service as employees work to make deals between buyers and sellers.
Finance and Insurance
This sector covers companies engaged in or facilitating financial transactions and underwriting insurance and annuities. It also includes companies that provide financial intermediation*) and employee benefit programs.*) mediation: the act of intervening for the purpose of bringing about a settlement
Younger workers reported being in their jobs in this sector for an average of 5.3 years, while older workers reported being in these jobs for an average of 6.9 years.
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Source: Internet news
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U.S. to Include Home Care Aides in Wage and Overtime Law
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The Obama administration announced on Tuesday, 9/17/13, that it was extending minimum wage and overtime protections to the nation’s nearly two million home care workers.
Advocates for low-wage workers have pushed for this change, asserting that home care workers, who care for elderly and disabled Americans, were wrongly classified into the same “companionship services” category as baby sitters — a group that is exempt from minimum wage and overtime coverage. Under the new rule, home care aides, unlike baby sitters, would be covered under the Fair Labor Standards Act, the nation’s main wage and hour law.
In an unusual move, the administration said the new regulation would not take effect until Jan. 1, 2015, even though regulations often take effect 60 days after being issued. The delay until 2015 is to give families that use these attendants, as well as state Medicaid programs, time to prepare.
Industry experts say most of these workers are already paid at least the minimum wage, but many do not receive a time-and-a-half overtime premium when they work more than 40 hours a week. About 20 states exclude home care workers from their wage and hour laws.
“We think the workers providing this critical work should be receiving the same basic protection and coverage as the vast majority of American workers,” said Laura Fortman, deputy administrator of the Labor Department’s Wage and Hour Division. “We’ve seen a lot of turnover in this industry, and we believe that this new rule will stabilize the work force.”
The nation’s home care workers usually earn $8.50 to $12 an hour, according to industry officials. The federal minimum wage is $7.25 an hour.
According to the Obama administration, almost 40 percent of aides receive government benefits like food stamps and Medicaid. Ninety-two percent of these workers are female, almost 30 percent are black and 12 percent are Hispanic.
Labor Secretary Thomas E. Perez said in a statement, “Today we are taking an important step toward guaranteeing that these professionals receive the wage protections they deserve while protecting the right of individuals to live at home.”
But industry officials said the changes would cause increases in Medicaid and Medicare spending, raise costs for families that use such services, and result in fewer jobs for home care workers.
Andrea L. Devoti, chairman of the National Association for Home Care and Hospice, said the new rule “will mean that people will receive less care.” She said the higher costs resulting from the new rule would lead many people to hire home care aides part time rather than full time. “Caregivers will in the end receive less pay,” she said.
The newly issued rule was also criticized by Representative John Kline, a Minnesota Republican who is chairman of the House Education and the Work Force Committee, and Representative Tim Walberg, a Michigan Republican who heads the panel’s subcommittee on work force protections.
They said it not only would raise costs, but would “limit access to in-home care for vulnerable Americans.” They added, “Faced with higher costs, some individuals will have no choice but to leave their homes and enter institutional living.” Long-term nursing home care, much of which is paid by Medicaid, is generally more expensive than home care.
Ms. Fortman of the administration’s wage and hour division said 15 states now provided overtime and minimum wage protection to home care aides. “We have not seen any evidence that it has resulted in job loss or any serious negative impact for the workers or for the people using the services,” she said.
The administration announced the change 21 months after first proposing the rule and after having received 26,000 public comments, many of them from for-profit home care agencies that opposed it. Many labor advocates criticized the administration for taking so long to issue its final rule, but Labor Department officials said reviewing the comments and holding related public meetings took time.
The federal government says six million of the 40 million Americans older than 65 need some form of daily assistance to live outside a nursing home. Federal officials estimate that the number will double to 12 million by 2030.
Under the new rule, any home care aides hired through home care companies or other third-party agencies cannot be exempt from minimum wage and overtime coverage. The exemptions for aides who mainly provide “companionship services” — defined as fellowship and protection for an elderly person or person with an illness, injury or disability who requires assistance — are limited to the individual, family or household using the services.
If an aide or companion provides “care” that exceeds 20 percent of the total hours she works each week, then the worker is to receive minimum wage and overtime protections.
The new rule defines care as assisting with the activities of daily living, like dressing, grooming, feeding or bathing, and assisting with “instrumental activities of daily living,” like meal preparation, driving, light housework, managing finances and assisting with the physical taking of medications.
The companionship exemption will not apply if the aide or companion provides medically related services that are typically performed by trained personnel, like nurses or certified nursing assistants.
Live-in domestic service workers who reside in the employer’s home and are employed by an individual, family or household are exempt from overtime pay, although they must be paid at least the federal minimum wage for all hours worked.
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Source: NYT
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In New York, Having a Job, or 2,
Doesn’t Mean Having a Home
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On many days, Alpha Manzueta gets off from one job at 7 a.m., only to start her second at noon. In between she goes to a place she’s called home for the last three years — a homeless shelter.
“I feel stuck,” said Ms. Manzueta, 37, who has a 2 ½-year-old daughter and who, on a recent Wednesday, looked crisp in her security guard uniform, waving traffic away from the curb at Kennedy International Airport. “You try, you try and you try and you’re getting nowhere. I’m still in the shelter.”
With New York City’s homeless population in shelters at a record high of 50,000, a growing number of New Yorkers punch out of work and then sign in to a shelter, city officials and advocates for the homeless say. More than one out of four families in shelters, 28 percent, include at least one employed adult, city figures show, and 16 percent of single adults in shelters hold jobs.
Mostly female, they are engaged in a variety of low-wage jobs as security guards, bank tellers, sales clerks, computer instructors, home health aides and office support staff members. At work they present an image of adult responsibility, while in the shelter they must obey curfews and show evidence that they are actively looking for housing and saving part of their paycheck.
Advocates of affordable housing say that the employed homeless are proof of the widening gap between wages and rents — which rose in the city even during the latest recession — and, given the shortage of subsidized housing, of just how difficult it is to escape the shelter system, even for people with jobs.
“A one-bedroom in East New York or the South Bronx is still $1,000 a month,” said Patrick Markee, senior policy analyst with the Coalition for the Homeless, an advocacy and housing services group. “The jobs aren’t enough to get people out of homelessness.”
David Garza, executive director of Henry Street Settlement, which runs three family shelters and one shelter for single women with mental illnesses, said that five years ago his shelters were placing 200 families a year into permanent housing. Last year, he said, they placed 50.
“Without low-income housing, it’s a maze with no way out,” Mr. Garza said.
The employed homeless are constantly juggling the demands of their two worlds.
A 45-year-old woman named Barbara, who works part time as a public transit customer service representative, said she had to keep items like razors and nail clippers at a storage center because they were not allowed in the shelter for security reasons.
Sometimes she takes a tote bag filled with dirty clothes to work to take to the laundromat afterward, she said, because the machines at the shelter are always either broken or being used.
But, she said, there is no escaping the noise and fitful sleep of a dormitory shared with eight other women.
Like most homeless employed people interviewed for this article, Barbara did not want to be identified by her full name for fear of losing her privacy or her job. She has been homeless since 2011, she said, when her unemployment insurance ran out and she could no longer afford her apartment in Brooklyn. No one at work knows, she said.
“When it comes to the professional arena, I want people to think that I got it together, that I’m not living paycheck to paycheck, that my only option isn’t to buy secondhand,” she said.
Sometimes homeless workers discover one another.
Deirdre Cunningham, 21, who works two part-time jobs — as a bank teller and as a sales clerk for an electronics store in Manhattan, said that at one point a co-worker at the store invited her to an evening event. “I said, ‘I can’t go, because I have curfew,’ and this co-worker said, ‘What do you mean curfew?’ ”
“I said, ‘I live in a shelter,’ and she said, ‘I do, too.’ ”
Ms. Cunningham, who has a 4-year-old daughter, said she has always been open about her struggles. “A lot of people have problems, too,” she said.
She said she left her parents’ home in the South Bronx in 2011 because she did not want to expose her daughter to “family issues.” Two years and three shelters later, she moved in August into her own $900-a-month one-bedroom apartment in the Bronx with the help of a rent subsidy from the Coalition for the Homeless. But the aid lasts for only two years.
“Now that I got my living situation under control, now it’s time for me to go back to school, get a better job, be more of a mother,” said Ms. Cunningham, who has completed training as a medical assistant but aspires to be a journalist.
“My daughter wants to take ballet,” she said.
A city-commissioned study by the Vera Institute of Justice in 2005 found that “contrary to popular belief,” 79 percent of homeless heads of family had recent work histories and more than half had educational levels, up to college, that made them employable.
Most, the study found, had experienced “destabilizing” events before entering the shelter, most commonly the loss of a job, an eviction or the loss of public assistance benefits.
In 2004, Mayor Michael R. Bloomberg unveiled an ambitious plan to reduce the city’s homeless population — then 38,000 — by two-thirds in five years. The plan envisioned shifting dollars away from the shelter system to create low-income housing with social services.
To make the shelter system less inviting, the city also stopped giving homeless families priority for public housing, and made it harder for those who left the system to return.
In 2011, when the state and federal support were withdrawn, the city ended a program that gave rent subsidies for up to two years to help families move out of shelters and into their own apartments.
Now the number of shelter residents hovers around 50,000, according to the city’s Department of Homeless Services. More than 9,000 are single adults and more than 40,000 other residents are in families, including 21,600 children. The average monthly cost for the government to shelter a family is more than $3,000; the cost for a single person is more than $2,300.
Linda I. Gibbs, Mr. Bloomberg’s deputy mayor for health and human services, said there were no local resources to keep up with demand for subsidized housing after both federal and state money dried up.
Advocates for the homeless say the city should restore housing assistance for shelter residents, including giving them priority for public housing.
But in an interview, Ms. Gibbs reiterated the Bloomberg administration’s long-held position that more benefits only attract more people to shelters. “That drives more demand,” she said. “It’s a Catch-22.”
Ms. Gibbs said officials were now exploring expanding a city program that helps families at risk of losing their homes to stay in place.
But those like Ms. Manzueta, the security guard, still need a way out.
She said she managed to hold on to her $8-an-hour positions and to take courses to learn new skills. But with an eviction marring her credit record and unable to afford more than $1,000 for rent, she has not been able to land an apartment.
“New York City,” said Ms. Manzueta, a native, “is the hardest city to live in.”
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Source: NYT
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A less -known H-I-G-H income source in this profession
- Take a hint - Take action -
Go to a good Culinary School (web links at the end of this article) - Before you go, check that the
program will lead to these positions - If not, find out what will and take action
Suitable for new immigrants also
Waiting Tables at Top-Tier Restaurants Is New Career Path for Foodies
foodie = a person with a particular interest in food; a gourmet
Head waiters at top-tier restaurants can earn from $80,000 to as much as $150,000 a year including tips, according to industry executives - versus $35,000 to $45,000 for a line cook working longer hours
A legion of cooking school grads just want to work in the front of the house, bringing a touch of glamour to waiting tables, Alina Dizik reports.
It only took a bachelor's degree, but Leah Beach has finally stopped hearing her least-favorite question: What do you really plan to do for a living?
Leah Beach has finally stopped hearing her least-favorite question: What do you really plan to do for a living?
Ms. Beach is already doing it, as a server at restaurant L20 in Chicago. She meticulously assembles and arranges place settings for the restaurant's 14-course $210 tasting menu. She learns about foods and dishes like velvet crab, matsutake mushrooms and craquelin bread and curates it all into engaging talking points for each new party of guests. "I'm not just listing off a series of ingredients," says Ms. Beach, 31, who moved to Chicago from Minneapolis in 2011 to pursue her food career. "I'm telling them a bit of a story."
Far from biding time before the next acting audition, many of the newest generation of servers at the nation's top restaurants are waiting tables as a way to hone their chops for a career in restaurant management. They are coming out of top culinary and Ivy League schools, and they consider themselves professionals. To get a foot in the door at legendary establishments, many food-obsessed 20-somethings are busing tables.
High-end restaurants are boosting their service game as prices rise up over $100 for a fine meal and guests become more demanding. A sharp wait staff establishes trust before the food arrives. Josiah Citrin, chef owner of Melisse, a Santa Monica, Calif., French restaurant that offers a $125 prix fixe dinner, only wants to hire servers with a professional track record. "When waiting tables, there's no chance to fix the error" Mr. Citrin says. "It's not like in the kitchen."
The kitchen has been the customary entry point for the restaurant industry, with culinary and hospitality grads launching their careers in jobs as prep cooks or line cooks. But recently, ambitious grads are realizing they can earn more money working in the dining room.
Head waiters at top-tier restaurants can earn from $80,000 to as much as $150,000 a year including tips, according to industry executives. In comparison, a line cook might earn as little as $35,000 to $45,000 a year while working longer hours.
The nation's highest-rated restaurants, including Per Se, Le Bernardin and Eleven Madison Park in New York and Alinea in Chicago, hire as few as 10% of the individuals applying for waitstaff jobs.
Web links:
Click: Per Se Restaurant - New York, NY
Click: Le Bernardin - New York City
click: Eleven Madison Park
click: Alinea Chicago
click: Melisse: Santa Monica
At the Culinary Institute of America in Hyde Park, N.Y., 20% of graduates from two- and four-year programs go into "front of the house" positions in the dining room, which also include maitre d's, bartenders and sommeliers, compared with 5% roughly 15 years ago, says Jennifer Purcell, an associate dean overseeing the hospitality and service curriculum. In the past six years, the Culinary Institute has added customer-focused courses, including one on brewed beverages and one on advanced serving. This year, 350 students completed the course work, she says.
Celia Erickson, 24, graduated from Cornell University and studied at the Culinary Institute of America before landing a job as a server at Eleven Madison Park in New York. Brian Harkin for The Wall Street Journal
Customer expectations of servers are high. Waiters are expected to be at ease and in command of a wide range of facts and skills. In a 16-course dinner at Eleven Madison Park, a single plate might have 15 ingredients and five preparations, says co-owner Will Guidara. Menus change seasonally. Servers are expected to have accurate answers to specific questions about food allergens, the type of sea salt in a particular dish or the origin of the duck. Service of one dessert, a seasonal cheesecake with chocolate, requires the server to perform a card trick.
When they are at the top of their game, servers help create a sense of enthusiasm. "As a guest, the more passion you feel for the people serving you the food, the more delicious the food," Mr. Guidara says.
Details count. For a tasting-menu meal, which can take more than three hours, servers introduce dishes at precisely timed intervals. Before the dinner service, servers polish silverware, light candles, smooth tablecloths, arrange wine glasses and box up after-dinner cookies and other take-home treats.
During development of a new dish or beverage, they may weigh in on the type of knife or wine glass to be used. And they give a final inspection to dishes on their way out of the kitchen. At Eleven Madison, the counter where dishes are passed from kitchen to server is covered in a white tablecloth so the wait staff can see the plate exactly how the guest will see it.
Many of the servers at Eleven Madison are recent grads of the Culinary Institute, Cornell, University of Pennsylvania and Harvard. To attract young talent, Mr. Guidara says, the restaurant cultivates a teaching atmosphere, with events such as a weekly "happy hour" course on cocktails and wine often taught by experienced servers on staff. "It's hard for us to keep our staff from coming in three or four hours early," he adds. "They are not just here for a job; they give themselves fully."
Several servers who have moved from Eleven Madison Park to more casual restaurants have instituted a similarly professional atmosphere, he adds. A networking group called the Dining Room Collaborative began in New York in 2013 to foster education and a sense of professionalism among wait staff at fine-dining establishments. The idea is to make server "a sexy dining-room job," says Anthony Rudolf, the group's co-founder and former general manager at Per Se, in New York.
Celia Erickson, a 24-year-old server at Eleven Madison, has an undergraduate degree in hospitality from Cornell University and completed a yearlong wine and beverage program at the Culinary Institute of America (where her father is provost). When starting at Eleven Madison Park last summer, she shadowed kitchen staff as part of her training and had an entry-level server role. She says she has gained insight into managing a top restaurant. "My first two months, it was really hard for me. I spent five years in school and now I was waiting tables," she says.
"It's almost better if the guests don't notice you," says Chris Humberson, a 23-year-old graduate of the Culinary Institute and a server at Daniel in New York. Mr. Humberson says while in school he realized he didn't want to be a chef. Few guests in a contemporary French restaurant realize how much training it takes to be a server or even bus tables. "We are definitely viewed as less skilled in the eyes of the [guest]," he says. "And you have to be OK with that."
Hyde Park, NYCIA Restaurants
1946 Campus Drive
Hyde Park, NY 12538
Phone: 845-471-6608
Questions: [email protected]
St. Helena, CACIA at Greystone Restaurants
2555 Main Street
St. Helena, CA 94525
Phone: 707-967-1010
Questions: [email protected]
San Antonio, TXCIA San Antonio Restaurants
312 Pearl Parkway
San Antonio, TX 78215
Phone: 210-554-6484
Questions: [email protected]
Click green for further info
Source: (1) WSJ & (2) STAF, Inc.
__________________________________
Click green for further info
Even as the economy is gaining strength, many people still feel anxious about their job prospects. Even people who have jobs may worry that things could change without warning.
If you’re looking for a job that comes with a little bit of security, check out this list from PayScale, which ranked the industries where employees last the longest in their positions.
Public Administration
Public-sector jobs often have a reputation for being secure ones, and with good reason. According to the PayScale report, public administration workers ages 35 to 45 had been in their jobs for an average of 6.4 years, while older workers (ages 45 to 55) had been in their positions for an average of 9.7 years.
This sector includes federal, state and local government agencies. These jobs are often administrative or office-type jobs that require good communication and computer skills.
Manufacturing
Indicators of the manufacturing sector’s health have stabilized in recent years, and the sector shows it. Workers ages 35 to 45 in this sector have been in their jobs for an average of 5.7 years, while older workers have been in for an average of 7.2 years.
This sector includes plants, factories and mills in addition to bakeries, candy stores and similar organizations that make products in the same location they are sold. The skills required depend on the type of manufacturing, but usually include attention to detail, and the ability to perform repetitive tasks quickly and accurately.
Transportation and Warehousing
This sector reported similar numbers to manufacturing, with an average of 5.6 years for younger workers and 7.1 for older ones.
The transportation and warehousing sector covers a wide variety of jobs, including transporting goods and passengers, scenic and sightseeing transportation, storing and warehousing goods, and transportation support jobs such as dispatching. Pipeline jobs are also included in this sector.
Specialized training is often required for careers in this sector, such as learning to fly a plane or run a locomotive, and knowledge of transportation regulations is important.
Wholesale Trade
Younger workers reported being in their jobs for an average of 5.4 years, while older workers had been in their positions for an average of 7 years.
The wholesaling sector includes the sale or arranging the purchase or sale of consumer goods, capital or durable non-consumer goods, and raw materials such as lumber or ore. These are typically office jobs that involve marketing, advertising, sales and customer service as employees work to make deals between buyers and sellers.
Finance and Insurance
This sector covers companies engaged in or facilitating financial transactions and underwriting insurance and annuities. It also includes companies that provide financial intermediation*) and employee benefit programs.*) mediation: the act of intervening for the purpose of bringing about a settlement
Younger workers reported being in their jobs in this sector for an average of 5.3 years, while older workers reported being in these jobs for an average of 6.9 years.
Click green for further info
Source: Internet news
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U.S. to Include Home Care Aides in Wage and Overtime Law
Click green for further info
The Obama administration announced on Tuesday, 9/17/13, that it was extending minimum wage and overtime protections to the nation’s nearly two million home care workers.
Advocates for low-wage workers have pushed for this change, asserting that home care workers, who care for elderly and disabled Americans, were wrongly classified into the same “companionship services” category as baby sitters — a group that is exempt from minimum wage and overtime coverage. Under the new rule, home care aides, unlike baby sitters, would be covered under the Fair Labor Standards Act, the nation’s main wage and hour law.
In an unusual move, the administration said the new regulation would not take effect until Jan. 1, 2015, even though regulations often take effect 60 days after being issued. The delay until 2015 is to give families that use these attendants, as well as state Medicaid programs, time to prepare.
Industry experts say most of these workers are already paid at least the minimum wage, but many do not receive a time-and-a-half overtime premium when they work more than 40 hours a week. About 20 states exclude home care workers from their wage and hour laws.
“We think the workers providing this critical work should be receiving the same basic protection and coverage as the vast majority of American workers,” said Laura Fortman, deputy administrator of the Labor Department’s Wage and Hour Division. “We’ve seen a lot of turnover in this industry, and we believe that this new rule will stabilize the work force.”
The nation’s home care workers usually earn $8.50 to $12 an hour, according to industry officials. The federal minimum wage is $7.25 an hour.
According to the Obama administration, almost 40 percent of aides receive government benefits like food stamps and Medicaid. Ninety-two percent of these workers are female, almost 30 percent are black and 12 percent are Hispanic.
Labor Secretary Thomas E. Perez said in a statement, “Today we are taking an important step toward guaranteeing that these professionals receive the wage protections they deserve while protecting the right of individuals to live at home.”
But industry officials said the changes would cause increases in Medicaid and Medicare spending, raise costs for families that use such services, and result in fewer jobs for home care workers.
Andrea L. Devoti, chairman of the National Association for Home Care and Hospice, said the new rule “will mean that people will receive less care.” She said the higher costs resulting from the new rule would lead many people to hire home care aides part time rather than full time. “Caregivers will in the end receive less pay,” she said.
The newly issued rule was also criticized by Representative John Kline, a Minnesota Republican who is chairman of the House Education and the Work Force Committee, and Representative Tim Walberg, a Michigan Republican who heads the panel’s subcommittee on work force protections.
They said it not only would raise costs, but would “limit access to in-home care for vulnerable Americans.” They added, “Faced with higher costs, some individuals will have no choice but to leave their homes and enter institutional living.” Long-term nursing home care, much of which is paid by Medicaid, is generally more expensive than home care.
Ms. Fortman of the administration’s wage and hour division said 15 states now provided overtime and minimum wage protection to home care aides. “We have not seen any evidence that it has resulted in job loss or any serious negative impact for the workers or for the people using the services,” she said.
The administration announced the change 21 months after first proposing the rule and after having received 26,000 public comments, many of them from for-profit home care agencies that opposed it. Many labor advocates criticized the administration for taking so long to issue its final rule, but Labor Department officials said reviewing the comments and holding related public meetings took time.
The federal government says six million of the 40 million Americans older than 65 need some form of daily assistance to live outside a nursing home. Federal officials estimate that the number will double to 12 million by 2030.
Under the new rule, any home care aides hired through home care companies or other third-party agencies cannot be exempt from minimum wage and overtime coverage. The exemptions for aides who mainly provide “companionship services” — defined as fellowship and protection for an elderly person or person with an illness, injury or disability who requires assistance — are limited to the individual, family or household using the services.
If an aide or companion provides “care” that exceeds 20 percent of the total hours she works each week, then the worker is to receive minimum wage and overtime protections.
The new rule defines care as assisting with the activities of daily living, like dressing, grooming, feeding or bathing, and assisting with “instrumental activities of daily living,” like meal preparation, driving, light housework, managing finances and assisting with the physical taking of medications.
The companionship exemption will not apply if the aide or companion provides medically related services that are typically performed by trained personnel, like nurses or certified nursing assistants.
Live-in domestic service workers who reside in the employer’s home and are employed by an individual, family or household are exempt from overtime pay, although they must be paid at least the federal minimum wage for all hours worked.
Click green for further info
Source: NYT
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In New York, Having a Job, or 2,
Doesn’t Mean Having a Home
Click green for further info
On many days, Alpha Manzueta gets off from one job at 7 a.m., only to start her second at noon. In between she goes to a place she’s called home for the last three years — a homeless shelter.
“I feel stuck,” said Ms. Manzueta, 37, who has a 2 ½-year-old daughter and who, on a recent Wednesday, looked crisp in her security guard uniform, waving traffic away from the curb at Kennedy International Airport. “You try, you try and you try and you’re getting nowhere. I’m still in the shelter.”
With New York City’s homeless population in shelters at a record high of 50,000, a growing number of New Yorkers punch out of work and then sign in to a shelter, city officials and advocates for the homeless say. More than one out of four families in shelters, 28 percent, include at least one employed adult, city figures show, and 16 percent of single adults in shelters hold jobs.
Mostly female, they are engaged in a variety of low-wage jobs as security guards, bank tellers, sales clerks, computer instructors, home health aides and office support staff members. At work they present an image of adult responsibility, while in the shelter they must obey curfews and show evidence that they are actively looking for housing and saving part of their paycheck.
Advocates of affordable housing say that the employed homeless are proof of the widening gap between wages and rents — which rose in the city even during the latest recession — and, given the shortage of subsidized housing, of just how difficult it is to escape the shelter system, even for people with jobs.
“A one-bedroom in East New York or the South Bronx is still $1,000 a month,” said Patrick Markee, senior policy analyst with the Coalition for the Homeless, an advocacy and housing services group. “The jobs aren’t enough to get people out of homelessness.”
David Garza, executive director of Henry Street Settlement, which runs three family shelters and one shelter for single women with mental illnesses, said that five years ago his shelters were placing 200 families a year into permanent housing. Last year, he said, they placed 50.
“Without low-income housing, it’s a maze with no way out,” Mr. Garza said.
The employed homeless are constantly juggling the demands of their two worlds.
A 45-year-old woman named Barbara, who works part time as a public transit customer service representative, said she had to keep items like razors and nail clippers at a storage center because they were not allowed in the shelter for security reasons.
Sometimes she takes a tote bag filled with dirty clothes to work to take to the laundromat afterward, she said, because the machines at the shelter are always either broken or being used.
But, she said, there is no escaping the noise and fitful sleep of a dormitory shared with eight other women.
Like most homeless employed people interviewed for this article, Barbara did not want to be identified by her full name for fear of losing her privacy or her job. She has been homeless since 2011, she said, when her unemployment insurance ran out and she could no longer afford her apartment in Brooklyn. No one at work knows, she said.
“When it comes to the professional arena, I want people to think that I got it together, that I’m not living paycheck to paycheck, that my only option isn’t to buy secondhand,” she said.
Sometimes homeless workers discover one another.
Deirdre Cunningham, 21, who works two part-time jobs — as a bank teller and as a sales clerk for an electronics store in Manhattan, said that at one point a co-worker at the store invited her to an evening event. “I said, ‘I can’t go, because I have curfew,’ and this co-worker said, ‘What do you mean curfew?’ ”
“I said, ‘I live in a shelter,’ and she said, ‘I do, too.’ ”
Ms. Cunningham, who has a 4-year-old daughter, said she has always been open about her struggles. “A lot of people have problems, too,” she said.
She said she left her parents’ home in the South Bronx in 2011 because she did not want to expose her daughter to “family issues.” Two years and three shelters later, she moved in August into her own $900-a-month one-bedroom apartment in the Bronx with the help of a rent subsidy from the Coalition for the Homeless. But the aid lasts for only two years.
“Now that I got my living situation under control, now it’s time for me to go back to school, get a better job, be more of a mother,” said Ms. Cunningham, who has completed training as a medical assistant but aspires to be a journalist.
“My daughter wants to take ballet,” she said.
A city-commissioned study by the Vera Institute of Justice in 2005 found that “contrary to popular belief,” 79 percent of homeless heads of family had recent work histories and more than half had educational levels, up to college, that made them employable.
Most, the study found, had experienced “destabilizing” events before entering the shelter, most commonly the loss of a job, an eviction or the loss of public assistance benefits.
In 2004, Mayor Michael R. Bloomberg unveiled an ambitious plan to reduce the city’s homeless population — then 38,000 — by two-thirds in five years. The plan envisioned shifting dollars away from the shelter system to create low-income housing with social services.
To make the shelter system less inviting, the city also stopped giving homeless families priority for public housing, and made it harder for those who left the system to return.
In 2011, when the state and federal support were withdrawn, the city ended a program that gave rent subsidies for up to two years to help families move out of shelters and into their own apartments.
Now the number of shelter residents hovers around 50,000, according to the city’s Department of Homeless Services. More than 9,000 are single adults and more than 40,000 other residents are in families, including 21,600 children. The average monthly cost for the government to shelter a family is more than $3,000; the cost for a single person is more than $2,300.
Linda I. Gibbs, Mr. Bloomberg’s deputy mayor for health and human services, said there were no local resources to keep up with demand for subsidized housing after both federal and state money dried up.
Advocates for the homeless say the city should restore housing assistance for shelter residents, including giving them priority for public housing.
But in an interview, Ms. Gibbs reiterated the Bloomberg administration’s long-held position that more benefits only attract more people to shelters. “That drives more demand,” she said. “It’s a Catch-22.”
Ms. Gibbs said officials were now exploring expanding a city program that helps families at risk of losing their homes to stay in place.
But those like Ms. Manzueta, the security guard, still need a way out.
She said she managed to hold on to her $8-an-hour positions and to take courses to learn new skills. But with an eviction marring her credit record and unable to afford more than $1,000 for rent, she has not been able to land an apartment.
“New York City,” said Ms. Manzueta, a native, “is the hardest city to live in.”
Click green for further info
Source: NYT
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A less -known H-I-G-H income source in this profession
- Take a hint - Take action -
Go to a good Culinary School (web links at the end of this article) - Before you go, check that the
program will lead to these positions - If not, find out what will and take action
Suitable for new immigrants also
Waiting Tables at Top-Tier Restaurants Is New Career Path for Foodies
foodie = a person with a particular interest in food; a gourmet
Head waiters at top-tier restaurants can earn from $80,000 to as much as $150,000 a year including tips, according to industry executives - versus $35,000 to $45,000 for a line cook working longer hours
A legion of cooking school grads just want to work in the front of the house, bringing a touch of glamour to waiting tables, Alina Dizik reports.
It only took a bachelor's degree, but Leah Beach has finally stopped hearing her least-favorite question: What do you really plan to do for a living?
Leah Beach has finally stopped hearing her least-favorite question: What do you really plan to do for a living?
Ms. Beach is already doing it, as a server at restaurant L20 in Chicago. She meticulously assembles and arranges place settings for the restaurant's 14-course $210 tasting menu. She learns about foods and dishes like velvet crab, matsutake mushrooms and craquelin bread and curates it all into engaging talking points for each new party of guests. "I'm not just listing off a series of ingredients," says Ms. Beach, 31, who moved to Chicago from Minneapolis in 2011 to pursue her food career. "I'm telling them a bit of a story."
Far from biding time before the next acting audition, many of the newest generation of servers at the nation's top restaurants are waiting tables as a way to hone their chops for a career in restaurant management. They are coming out of top culinary and Ivy League schools, and they consider themselves professionals. To get a foot in the door at legendary establishments, many food-obsessed 20-somethings are busing tables.
High-end restaurants are boosting their service game as prices rise up over $100 for a fine meal and guests become more demanding. A sharp wait staff establishes trust before the food arrives. Josiah Citrin, chef owner of Melisse, a Santa Monica, Calif., French restaurant that offers a $125 prix fixe dinner, only wants to hire servers with a professional track record. "When waiting tables, there's no chance to fix the error" Mr. Citrin says. "It's not like in the kitchen."
The kitchen has been the customary entry point for the restaurant industry, with culinary and hospitality grads launching their careers in jobs as prep cooks or line cooks. But recently, ambitious grads are realizing they can earn more money working in the dining room.
Head waiters at top-tier restaurants can earn from $80,000 to as much as $150,000 a year including tips, according to industry executives. In comparison, a line cook might earn as little as $35,000 to $45,000 a year while working longer hours.
The nation's highest-rated restaurants, including Per Se, Le Bernardin and Eleven Madison Park in New York and Alinea in Chicago, hire as few as 10% of the individuals applying for waitstaff jobs.
Web links:
Click: Per Se Restaurant - New York, NY
Click: Le Bernardin - New York City
click: Eleven Madison Park
click: Alinea Chicago
click: Melisse: Santa Monica
At the Culinary Institute of America in Hyde Park, N.Y., 20% of graduates from two- and four-year programs go into "front of the house" positions in the dining room, which also include maitre d's, bartenders and sommeliers, compared with 5% roughly 15 years ago, says Jennifer Purcell, an associate dean overseeing the hospitality and service curriculum. In the past six years, the Culinary Institute has added customer-focused courses, including one on brewed beverages and one on advanced serving. This year, 350 students completed the course work, she says.
Celia Erickson, 24, graduated from Cornell University and studied at the Culinary Institute of America before landing a job as a server at Eleven Madison Park in New York. Brian Harkin for The Wall Street Journal
Customer expectations of servers are high. Waiters are expected to be at ease and in command of a wide range of facts and skills. In a 16-course dinner at Eleven Madison Park, a single plate might have 15 ingredients and five preparations, says co-owner Will Guidara. Menus change seasonally. Servers are expected to have accurate answers to specific questions about food allergens, the type of sea salt in a particular dish or the origin of the duck. Service of one dessert, a seasonal cheesecake with chocolate, requires the server to perform a card trick.
When they are at the top of their game, servers help create a sense of enthusiasm. "As a guest, the more passion you feel for the people serving you the food, the more delicious the food," Mr. Guidara says.
Details count. For a tasting-menu meal, which can take more than three hours, servers introduce dishes at precisely timed intervals. Before the dinner service, servers polish silverware, light candles, smooth tablecloths, arrange wine glasses and box up after-dinner cookies and other take-home treats.
During development of a new dish or beverage, they may weigh in on the type of knife or wine glass to be used. And they give a final inspection to dishes on their way out of the kitchen. At Eleven Madison, the counter where dishes are passed from kitchen to server is covered in a white tablecloth so the wait staff can see the plate exactly how the guest will see it.
Many of the servers at Eleven Madison are recent grads of the Culinary Institute, Cornell, University of Pennsylvania and Harvard. To attract young talent, Mr. Guidara says, the restaurant cultivates a teaching atmosphere, with events such as a weekly "happy hour" course on cocktails and wine often taught by experienced servers on staff. "It's hard for us to keep our staff from coming in three or four hours early," he adds. "They are not just here for a job; they give themselves fully."
Several servers who have moved from Eleven Madison Park to more casual restaurants have instituted a similarly professional atmosphere, he adds. A networking group called the Dining Room Collaborative began in New York in 2013 to foster education and a sense of professionalism among wait staff at fine-dining establishments. The idea is to make server "a sexy dining-room job," says Anthony Rudolf, the group's co-founder and former general manager at Per Se, in New York.
Celia Erickson, a 24-year-old server at Eleven Madison, has an undergraduate degree in hospitality from Cornell University and completed a yearlong wine and beverage program at the Culinary Institute of America (where her father is provost). When starting at Eleven Madison Park last summer, she shadowed kitchen staff as part of her training and had an entry-level server role. She says she has gained insight into managing a top restaurant. "My first two months, it was really hard for me. I spent five years in school and now I was waiting tables," she says.
"It's almost better if the guests don't notice you," says Chris Humberson, a 23-year-old graduate of the Culinary Institute and a server at Daniel in New York. Mr. Humberson says while in school he realized he didn't want to be a chef. Few guests in a contemporary French restaurant realize how much training it takes to be a server or even bus tables. "We are definitely viewed as less skilled in the eyes of the [guest]," he says. "And you have to be OK with that."
Hyde Park, NYCIA Restaurants
1946 Campus Drive
Hyde Park, NY 12538
Phone: 845-471-6608
Questions: [email protected]
St. Helena, CACIA at Greystone Restaurants
2555 Main Street
St. Helena, CA 94525
Phone: 707-967-1010
Questions: [email protected]
San Antonio, TXCIA San Antonio Restaurants
312 Pearl Parkway
San Antonio, TX 78215
Phone: 210-554-6484
Questions: [email protected]
Click green for further info
Source: (1) WSJ & (2) STAF, Inc.
__________________________________
Here 2 business ideas - run from your home - computer & phone needed
Click green for futher info
- Skype - Free internet calls
magicJack PLUS - FREE Local and Long Distance
.
From the public:
I went onto the state of California's website and did an unclaimed property search. Lo and behold, there was $128.00 being held in my wife's name from a cancelled car insurance account she had back in the late 1980's. There was a bunch of forms you had to fill out and it took about 4 months, but we finally did receive a check for the amount.
I began looking up other friends. Literally, about 1/3 had money being held ranging from 50 cents to about $1200 dollars. You can just go down the list of names if you want and see what others are owed. There are literally thousands of people listed on there. One guys name had $193,000 being held.
This is the basis for an old infomercial I saw awhile back where you start a business locating these people and taking a percentage for helping them claim the money.
The Article
Do You Have Missing Money?
click green for further info
Say you open a bank account while you're a college student and let the account go dormant when you move out of state and open a new account elsewhere. Or you leave a job and forget to cash your final check. Or you pay a deposit to your utility company and fail to leave a forwarding address when you move. Or a relative passes away and fails to list stocks or other assets in his or her will. These are just a few scenarios that can lead to unclaimed money, according to Mark A. Paolillo, an abandoned and unclaimed property practice leader at tax services firm Ryan.
[Read: The Best Tax Moves for Fall.]
When bank accounts, insurance payouts, pensions or other property go dormant, companies are required to contact the owner at the last known address and, if unsuccessful in reaching the person, turn the property or money over to the state's unclaimed property program. The National Association of Unclaimed Property Administrators estimates that $41.7 billion in unclaimed property sits waiting to be reclaimed.
click National Association of Unclaimed Property Administrators
Many consumers have no idea they could have money waiting for them. Most states have a ratio between 1 in 6 or 1 in 10 people who have unclaimed property, according to Carolyn Atkinson, deputy treasurer for unclaimed property in West Virginia and a past president of the National Association of Unclaimed Property Administrators. That's why she encourages consumers to check state online databases, even if they're doubtful that they've let anything go unclaimed. To check, go to Unclaimed.org and click on each state you've lived in to check for money that is due to you. The majority of states also partner with MissingMoney.com, a combined database of those states.
The rules on unclaimed property vary by state and depend on the type of property. It often takes three to five years of dormancy for an account to be considered unclaimed. Many states have a Nov. 1 deadline each year for businesses to remit unclaimed property to the state. Typically, the claims process involves submitting a form proving you are the rightful owner or heir of the unclaimed property.
[Read: What to Know Before Gifting a Down Payment.]
Depending on the type of unclaimed property and the amount, you could receive a check as soon as 30 days after filing a claim form. In Connecticut, for instance, it should take no longer than 90 days to be reunited with your property, according to Connecticut Treasurer Denise Nappier.
Office of Connecticut State Treasurer
There is no fee to file a claim for unclaimed property. However, finder companies offer to reunite heirs or owners with unclaimed property for a fee. In many cases, this is unnecessary because you can file a claim yourself. "For the average person, you shouldn't pay anyone to do that for you," Paolillo says. "There are corporations that are very complex in nature, and it gets a little bit more complicated, so some firms assist in filing claims and doing the research on their behalf."
Atkinson also advises against using a for-profit finder company. "The ones that are more nefarious (= wicked or criminal)
are the ones that actually defraud people of their money," she says. Stick with legitimate websites like Unclaimed.org and MissingMoney.com because some private locator sites aren't as reputable. "At least every other week we hear about some supposed locator that is actually a scam or fraud," Atkinson says.
[See: 10 Ways to Avoid Online Scams.]
In many cases, property can be reclaimed in perpetuity, even by heirs, but once property is liquidated, the value won't increase. "If it's not an asset that is accruing interest, then you're losing money on the value of those assets," Nappier says. "Connecticut law states that some assets do accrue interest, but if you had some expensive artwork and then it was liquidated, the value stops there."
While reclaiming a forgotten bank account or uncashed dividend check may feel like getting a windfall, keeping track of accounts ensures that you won't have to file a claim in the first place. For your own sake and the sake of your heirs, Nappier suggests keeping an inventory of all your assets. "You need to be sure to properly cash all checks for dividends, wages and insurance settlements," she says. "If you stop receiving dividends, contact the company immediately."
Also stay in contact with your bank and other financial institutions to prevent dormancy. Making an online inquiry to your bank or investment accounts may count as a contact. "If you register, log into your account and see what your balance is that would prevent that from being unclaimed," Atkinson says. "If we can get the property back to the owner before it comes to the state, we consider that a success."
Then there is another business suited for working in you home: Tax Liens
UCC/Tax Lien Searchwww.scc.virginia.gov › Office of the Clerk
UCC / Federal Tax Lien Search. The Office of the Clerk provides Internet access to the Clerk's Information System,
an
electronic mainframe database
Do more search for Tax Liens Home Business
_________________________________________________________________________________
Click green for futher info
- Skype - Free internet calls
magicJack PLUS - FREE Local and Long Distance
.
From the public:
I went onto the state of California's website and did an unclaimed property search. Lo and behold, there was $128.00 being held in my wife's name from a cancelled car insurance account she had back in the late 1980's. There was a bunch of forms you had to fill out and it took about 4 months, but we finally did receive a check for the amount.
I began looking up other friends. Literally, about 1/3 had money being held ranging from 50 cents to about $1200 dollars. You can just go down the list of names if you want and see what others are owed. There are literally thousands of people listed on there. One guys name had $193,000 being held.
This is the basis for an old infomercial I saw awhile back where you start a business locating these people and taking a percentage for helping them claim the money.
The Article
Do You Have Missing Money?
click green for further info
Say you open a bank account while you're a college student and let the account go dormant when you move out of state and open a new account elsewhere. Or you leave a job and forget to cash your final check. Or you pay a deposit to your utility company and fail to leave a forwarding address when you move. Or a relative passes away and fails to list stocks or other assets in his or her will. These are just a few scenarios that can lead to unclaimed money, according to Mark A. Paolillo, an abandoned and unclaimed property practice leader at tax services firm Ryan.
[Read: The Best Tax Moves for Fall.]
When bank accounts, insurance payouts, pensions or other property go dormant, companies are required to contact the owner at the last known address and, if unsuccessful in reaching the person, turn the property or money over to the state's unclaimed property program. The National Association of Unclaimed Property Administrators estimates that $41.7 billion in unclaimed property sits waiting to be reclaimed.
click National Association of Unclaimed Property Administrators
Many consumers have no idea they could have money waiting for them. Most states have a ratio between 1 in 6 or 1 in 10 people who have unclaimed property, according to Carolyn Atkinson, deputy treasurer for unclaimed property in West Virginia and a past president of the National Association of Unclaimed Property Administrators. That's why she encourages consumers to check state online databases, even if they're doubtful that they've let anything go unclaimed. To check, go to Unclaimed.org and click on each state you've lived in to check for money that is due to you. The majority of states also partner with MissingMoney.com, a combined database of those states.
The rules on unclaimed property vary by state and depend on the type of property. It often takes three to five years of dormancy for an account to be considered unclaimed. Many states have a Nov. 1 deadline each year for businesses to remit unclaimed property to the state. Typically, the claims process involves submitting a form proving you are the rightful owner or heir of the unclaimed property.
[Read: What to Know Before Gifting a Down Payment.]
Depending on the type of unclaimed property and the amount, you could receive a check as soon as 30 days after filing a claim form. In Connecticut, for instance, it should take no longer than 90 days to be reunited with your property, according to Connecticut Treasurer Denise Nappier.
Office of Connecticut State Treasurer
There is no fee to file a claim for unclaimed property. However, finder companies offer to reunite heirs or owners with unclaimed property for a fee. In many cases, this is unnecessary because you can file a claim yourself. "For the average person, you shouldn't pay anyone to do that for you," Paolillo says. "There are corporations that are very complex in nature, and it gets a little bit more complicated, so some firms assist in filing claims and doing the research on their behalf."
Atkinson also advises against using a for-profit finder company. "The ones that are more nefarious (= wicked or criminal)
are the ones that actually defraud people of their money," she says. Stick with legitimate websites like Unclaimed.org and MissingMoney.com because some private locator sites aren't as reputable. "At least every other week we hear about some supposed locator that is actually a scam or fraud," Atkinson says.
[See: 10 Ways to Avoid Online Scams.]
In many cases, property can be reclaimed in perpetuity, even by heirs, but once property is liquidated, the value won't increase. "If it's not an asset that is accruing interest, then you're losing money on the value of those assets," Nappier says. "Connecticut law states that some assets do accrue interest, but if you had some expensive artwork and then it was liquidated, the value stops there."
While reclaiming a forgotten bank account or uncashed dividend check may feel like getting a windfall, keeping track of accounts ensures that you won't have to file a claim in the first place. For your own sake and the sake of your heirs, Nappier suggests keeping an inventory of all your assets. "You need to be sure to properly cash all checks for dividends, wages and insurance settlements," she says. "If you stop receiving dividends, contact the company immediately."
Also stay in contact with your bank and other financial institutions to prevent dormancy. Making an online inquiry to your bank or investment accounts may count as a contact. "If you register, log into your account and see what your balance is that would prevent that from being unclaimed," Atkinson says. "If we can get the property back to the owner before it comes to the state, we consider that a success."
Then there is another business suited for working in you home: Tax Liens
UCC/Tax Lien Searchwww.scc.virginia.gov › Office of the Clerk
UCC / Federal Tax Lien Search. The Office of the Clerk provides Internet access to the Clerk's Information System,
an
electronic mainframe database
Do more search for Tax Liens Home Business
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Before you accept a work offer you need to know about the facts in this "at-will" article
Next, after this article,
you'll see plenty of guidance for a successful interview and then all other necessary information
Employment At Will: What Does It Mean?
by: Lisa Guerin, J.D.
Source: Nolo
CLICK to find free legal info and much more: Nolo.com: Lawyers, Legal Forms, Law Books & Software, Free Legal ...www.nolo.com/
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If you are employed at will, your employer does not need good cause to fire you.
Job applicants and new employees are often perplexed to read--in a job application, employment contract, or employee handbook--that they will be employed "at will." They are even more troubled when they find out exactly what this language means: An at-will employee can be fired at any time, for any reason (except for a few illegal reasons, spelled out below). If the employer decides to let you go, that's the end of your job--and you have very limited legal rights to fight your termination.
If you are employed at will, your employer does not need good cause to fire you. In every state but Montana (which protects employees who have completed an initial "probationary period" from being fired without cause), employers are free to adopt at-will employment policies, and many of them have. In fact, unless your employer gives some clear indication that it will only fire employees for good cause, the law presumes that you are employed at will.
This article will help you figure out whether you're employed at will, what rights you have as an at-will employee, and what you should do if your prospective or current employer asks you to sign an at-will agreement.
Learn more about (Click: Employee Rights
Are You an At-Will Employee?
The law generally presumes that you are employed at will unless you can prove otherwise, usually through written documents relating to your employment or oral statements your employer has made.
Employment Documents
Many employers take pains to point out, in their written policies, applications, handbooks, job evaluations, or other employment-related documents, that their employees work at will. If you are currently employed, look through your employment documents -- particularly those you have signed -- to see whether any of them mention at-will employment. If you have signed a document agreeing that you are an at-will employee, that's probably the end of the story.
If you have not signed an at-will agreement, check your employee manual or other written workplace policies. Do they state that you can be fired at any time? That you can be fired without cause? Even if your employer does not use the term "at will," statements that you can be fired without good cause or "for any reason" are indications that your employer follows an at-will policy.
On the other hand, some employers have written policies that require good cause to fire, provide an exclusive list of reasons for which employees can be fired, or otherwise provide employees some job protections. If your employer has adopted these kinds of policies, you are entitled to rely on them.
Similarly, if you have signed an employment contract that promises job security, you are not employed at will. For example, if you have a two-year contract that states you can be fired during the contract term only for committing a crime, then you are not an at-will employee. If you are fired for any reason not specified in the contract, you may well have a legal claim against your employer for breach of contract.
Statements by Your Employer Has your employer made any statements, either during the hiring process or after, indicating that you will be fired only for good cause? For example, an employer might say, "You'll always have a home here as long as you do a good job," or "We only fire employees who are unable to meet our performance standards, even after coaching and training." In this situation, especially if the comments have been made repeatedly and/or were a big reason you took the job, your employer may not be able to fire you at will.
On the other hand, if you are told during the hiring process or afterwards that you will be an at-will employee, your employer will certainly rely on that statement as proof that it reserved the right to fire you for any reason, if you are terminated and take legal action against your employer.
Your Rights as an At-Will Employee
Even if you are an at-will employee, you still cannot be fired for reasons that are illegal under state and federal law. In these situations, the government has decided to make an exception to the general rule of at-will employment.
For example, if your employer is subject to federal and state laws prohibiting job discrimination (as all but the smallest employers are), you cannot be fired because of certain characteristics, such as your race, religion, or gender. (For more information on discrimination, see Nolo's articles on Your Rights Against Discrimination and Harassment.) Similarly, you cannot be fired because you have complained about illegal activity, about discrimination or harassment, or about health and safety violations in the workplace (see Nolo's article Assert Your Safety Rights Without Fear of Retaliation). And you cannot be fired for exercising a variety of legal rights, including the right to take family and medical leave, to take leave to serve in the military, or to take time off work to vote or serve on a jury.
At-Will Agreements
To protect their right to fire at will, many employers ask job applicants and new employees to sign a written statement agreeing that they are (or will be) employed at will. Such a statement might appear in an employment application, an employment contract or offer letter that the employer asks you to sign and return, an acknowledgment form for an employee handbook, or elsewhere.
When You Should Sign an At-Will Agreement
Theoretically, you don't have to sign an at-will agreement -- but most courts have held that your employer can fire (or refuse to hire) you for failing to do so. For this reason, most applicants and employees simply grit their teeth and sign on the dotted line.
Even though you may not have much choice about signing an at-will agreement, that doesn't mean your employer will rely on it to fire you without a good reason. Savvy employers know that they have nothing to gain by firing employees arbitrarily. Instead, employers are often motivated to work through issues with you before resorting to such drastic measures.
When You Should Think Twice Before Signing an Agreement
Be wary of signing an at-will agreement if you relied on your employer's promises of continued employment when you decided to accept the job. For example, let's say that your employer promised, during the hiring process, that it would give you at least one year to learn your new job and that you would not be fired during that time. If that promise influenced your decision to take the job, you should not sign an at-will agreement contradicting the promise. Virtually every court will treat a signed at-will agreement as the final word on the subject, no matter what your employer said to you earlier.
If your employer wants you to sign an at-will agreement that seems to undercut its promises, ask about the discrepancy. If the employer stands by its earlier statements, ask that they be put in writing. If your employer refuses to honor its statements or changes its tune, it might be time to talk to a lawyer--particularly if you quit another job on the basis of those broken promises.
For more information on finding and working with a lawyer, (click: How to Find an Excellent Lawyer
For an easy-to-read guide to the laws that protect you in the workplace, (click: Your Rights in the Workplace
by Barbara Kate Repa (Nolo)
by: Lisa Guerin, J.D.
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Source: Nolo
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Grad Student Looking for Work Takes Sweet Approach
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Grad Student Looking for Work Gets Noticed for His Sweet Approach ABC News Well, that's what Fordham graduate student Michael Penn, 23, did this morning. His goal: to land a job in the financial services industry, specifically at Goldman Sachs. _________
What's the craziest thing you've done to get a job? Ever hand out free coffee and doughnuts in front of a potential employer?Well, that's what Fordham graduate student Michael Penn, 23, did Thursday morning.
His goal: to land a job in the financial services industry, specifically at Goldman Sachs.
"Goldman Sachs is the pinnacle, the top, the peak & summit of the financial industry, and I'd like to be sculpted by a firm like it," Penn told ABC News today.
So at 7 a.m. Thursday, he set up a booth outside the investment bank's office building in Lower Manhattan, complete with refreshments and a sign that read: www.HireMichaelPenn.com.
The Hiring Situation for New College Graduates Looks Bleak
"I wanted to do something innovative for my job hunt. I am graduating in two weeks. I came up with the idea to get some face time," said Penn, who hails from Boca Raton, Fla., and pursued a master's degree in global management.
With his website printed on his booth and the coffee cup sleeves, Penn started gaining some attention.
Within minutes, word about what Penn was doing had traveled to an employee at a leading investment bank. Penn said he received an email.
"He said: 'I want you to come down here,'" Penn said.
He was immediately given an interview later in the morning.
Penn said he wanted to prove to himself and to other people that there were ways of finding jobs. It just takes innovative ideas.
"It's just simple economics - supply and demand. The jobs are there. There are just more master's and MBAs out there now. You really need to get out there and differentiate yourself," he said.
Penn, who is still unemployed, said because of all the great feedback he'd received, he would go back to Goldman Sachs, or try someplace else.
"I would love to increase my Rolodex, and this is a great way to do it," he said. "It was so heartwarming. People really wanted to see me succeed."
Click: Check Out the Top 20 College Degrees With the Best and Worst Return on Investment
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Source: ABC news
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Soft Skills:
What Employers Want (and Don't Want) in an Employee
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To start with:
These are two simple and very powerful things you can do to demonstrate your value:
(1) make those around you look good to others within and outside your workplace,
(2) and assist in any way you can, large or small.
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The Bible: Whoever wants to be the greatest must be a servant to everyone click: Mark 10:42-45
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No matter the technical or how-to (“hard”) skill requirements of a job, there are "soft skills" valued at all workplaces. Sometimes what separates a good employee from an exceptional one is taking just one or two extra steps or considering a situation from the employer’s point of view. Whether you are trying to get a job, keep a job, get promoted, or have a more successful career, you will benefit from giving regular thought to how you can serve a current or potential employer better.
Employers want employees who are: self-motivated, have ideas and take initiative; deliver more than is promised or expected
Employers don't want employees who: wait for specific instructions, deliver the bare minimum
By regularly performing beyond what is required, you’ll make yourself ever more valuable to your
employer, which is crucial these days with hiring freezes and layoffs. Even if not all of your ideas are implemented, the fact that you are thinking of ways to improve things or try something new
will be appreciated
Want: Flexible, eager to learn new things
Don't want: Resistant to change, uninterested in learning new skills
Rapid, constant change is commonplace these days. Low-maintenance employees who can adapt quickly and without a fuss are more likely to be retained when there’s a layoff.
Want: Easy to work with, positive, has conflict resolution and negotiation skills
Don’t want: Conflict with supervisor and others, resistance to compromise, complaining
Positivity and amiability are good qualities at any job, and with so many positions these days being temporary, project, or consulting work, it is more important than ever to get along with those with whom you interact. Working successfully with others increases your visibility in the workplace, expands your network, and builds your reputation in a positive way – all these can help to increase your job security.
Want: Has a large network; active in professional organizations
Don't want: Uncomfortable with networking or uninterested in professional activities beyond “9 to 5”
Alliances with others in your field provide opportunities to collaborate and share resources, information, and advice. These things benefit everyone involved: you, your employer, and those in your network. A strong network is also essential for a successful job hunt.
Want: Informs supervisor of problems and proposes well-thought-out solutions
Don't want: Brings problems to supervisor and expects him/her to give solutions
Problem-solvers are much preferred to problem-bringers. This is another way to demonstrate initiative and good judgment and shows respect for your manager’s time.
Want: Organized and able to multitask, punctual, behaves professionally, meets deadlines without reminders
Don't want: Chronically late, disorganized, unprofessional, rude or abusive, requires close supervision to get work done
If you demonstrate effective time management and consistently professional demeanor and interactions, you’ll gain your supervisor’s trust and s/he will appreciate not having to devote time to checking up on you. This can lead to increased responsibilities and more opportunities in the future.
Want: Takes responsibility, reliable, honest
Don’t want: Gives excuses, hides mistakes, blames others
Trust can take a long time to build, and very little time to destroy. Your boss will likely forgive you for making a mistake if you own up to it, apologize, fix it, and take care not to make it again. Honesty is not just telling the truth, it is also keeping your word; do what you say you’ll do, every time.
Want: Understands when to discuss, and when to follow instructions
Don’t want: Endless debate, questions every decision
There’s a time to ask questions and offer opinions and there’s a time to say “Got it” and just do what needs to be done. Your boss will appreciate it if you can read situations accurately and know which response is appropriate.
Want: Able to accept and give criticism in a professional manner
Don’t want: Takes things personally, becomes defensive, avoids difficult conversations with direct reports or gives feedback in a harsh, harmful way
Accepting constructive criticism can sting, and giving such criticism can be more uncomfortable than many new supervisors imagine it would be. Being able to do both with grace and respect and move forward without drama will serve you well in your career.
Want: Strong communication skills: writing (formal and informal), verbal, presentation/instruction
Don’t want: Unclear communications, poor writing skills, discomfort with public speaking or presentations
Effective and appropriate communication in different work settings is required for success, and comfort with public speaking is a plus if not a requirement for many positions and for advancement.
Want: Makes employer and supervisor look good, lightens supervisor’s and others’ loads
Don't want: Disinterested in making employer look good or more interested in promoting self
These are two simple and very powerful things you can do to demonstrate your value:
(1) make those around you look good to others within and outside your workplace,
(2) and assist in any way you can, large or small.
To end with:
These are two simple and very powerful things you can do to demonstrate your value:
(1) make those around you look good to others within and outside your workplace,
(2) and assist in any way you can, large or small.
Source:
Ellen Mehling received her MSLIS from Long Island University and works as a librarian, instructor and writer in and around NYC. Her professional experience includes work in special, public, and academic libraries, as well as archives. She is Director of the Westchester Graduate Library School Program and Director of Internships for L.I.U.’s Palmer School and since 2009 has been METRO’s Job Bank Manager / Career Development Consultant. She teaches classes and workshops on job hunting, information literacy, researching, and other subjects at METRO’s Training Center and other venues within and outside NYC.
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What You Need Besides Experience to Get That Job A New Survey - A Nationwide Study
with 2,076 hiring managers and human resource professionals across industries
Click colored areas for further info A new survey has lifted the lid on what, beyond job skills, influence a hiring managers decision.
The CareerBuilder study shows that job candidates may also need everything from a sense of humor to knowledge of current affairs to showing they are involved in their community in order to be successful.
Click: Careerbuilder.com: Jobs & Job Search Advice, Employment Careers
www.careerbuilder.com/ Looking for a new job? Get advice or search over 1.6 million jobs on the largest job site, set alerts to be first in line and have new jobs emailed to you.
The nationwide study, which included 2,076 hiring managers and human resource professionals across industries, asked them to say which factors would make them more likely to choose one of two equally qualified candidates.
The top responses:
"When you're looking for a job, the key is selling your personal brand," said Rosemary Haefner of CareerBuilder in a statement. "Employers are not only looking for people who are professionally qualified for the position, but also someone who is going to fit in at the office."
This unspoken assessment proves doesn't stop when you get the job, of course. It plays a large part in determining who does and doesn't get promoted. The survey also asked executives to identify what they look for when picking out who gets promoted.
Speaking up counts for a lot: One third of employers say they are more likely to promote an employee who has previously asked for a promotion. However, there was much more agreement about what kinds of behavior keeps someone from being moved up, including:
However, you may want to think twice before trying to get a promotion. The study also found that at nearly two-thirds of the companies surveyed a promotion doesn't guarantee a pay raise.
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Source: click: Careerbuilder.com: Jobs & Job Search Advice, Employment & Careerswww.careerbuilder.com/ Looking for a new job? Get advice or search over 1.6 million jobs on the largest job site, set alerts to be first in line and have new jobs emailed to you
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“So, Do You Have Any Questions?” Nailing the Interview Closer
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Quotation “The fortunate circumstances of our lives are generally found, at last to be of our own producing” -- Oliver Goldsmith Oliver Goldsmith - Wikipedia
Anyone who has ever been interviewed for a job of any kind has most likely heard some variation of this line: “So, do you have any questions?” It’s the standard way that most interviewers wrap things up, and signal that the interview is coming to a close. It’s a query posed near the end of practically every type of interview: Phone Interviews, Face-to-Face Interviews, Skype Interviews, etc. It sounds like a rather innocent question, and could easily be dismissed by a job-seeker as a mere formality — not worthy of a thoughtful response. Well, don’t make that mistake! The truth is, how that question is answered can often make or break someone’s chances of landing a job.
Candidates are judged by the quality of the questions they ask during an interview. Candidates who have no questions at all might be perceived as having no interest in the position. Even worse than that, inappropriate or off-track questions can be viewed as a huge red flag by any interviewer. Asking the wrong questions can easily sink an otherwise successful interview.
There are literally thousands of possible variations of typical questions that could be used as interview closers. I certainly don’t intend to list them all here. And obviously, the specifics of each interview (the nature of the position, the type of company, the level of the person conducting the interview, etc.) will often determine what questions make the most sense to ask. Rather, I hope to list some general do’s and don’ts, and suggest some specific examples of successful questions that are likely to score points and head the conversation in the right direction.
What NOT to ask during an interview:
Let’s start with obvious no-no’s that will most likely get you eliminated from consideration by any interviewer:
► Don’t ask what the company does, what products they produce, or other basic questions that anyone could find the answers to by simply reading the company’s website. (Do your homework, and don’t sound like an idiot!)
► Don’t ask about compensation, vacation, or benefits. Those are clearly things that fall under the category of “what’s in it for me” — but certainly won’t show what’s in it for the interviewer! On the other hand, if the interviewer brings up the salary issue first, be prepared to address it head on.
[Read “Answering the Dreaded Salary Question” for suggested strategies on how to deal with this controversial issue.]
► Don’t ask about anything sensitive or negative that you might have read or heard about the company — e.g. recent layoffs, poor financial performance, bad press reports, lawsuits, complaints or any other negative issues you are aware of. Most interviewers would rather keep the discussion focused on the positive aspects of their company, and will be very uncomfortable if those types of issues are brought up by a candidate.
► Don’t ask generic, standard questions that sound as though you found them on a website (like this blog!) and are reciting them from a script. Most savvy interviewers will be able to spot those types of canned questions a mile away, and easily distinguish them from more thoughtful, insightful questions that pertain specifically to their company or the exact position you are interviewing for.
► Don’t ask personal questions about the interviewer’s family, marital status, children, hobbies, political opinions, religious affiliation, etc. Unless you have a prior history with the person, issues like that are totally inappropriate for an interview with someone you just met. (On the other hand, if they bring those things up first then simply follow their lead … but tread carefully with these topics and don’t offer up too much personal information of your own. Try to stay focused on the business at hand.)
► Don’t ask point blank if you are going to get the job. That tends to put the interviewer on the spot, and makes people feel very uncomfortable.
What you SHOULD ask:
Here are some general categories that you can use as a guide to formulating winning interviewee questions:
► Ask open-ended questions, as opposed to yes-no questions. “Can you tell me more about …” “What is your opinion of …” The idea is to get the interviewer to talk more — to reveal more information about the company, about the position, about themself and about their expectations. Ideally, you can then use that information to say things that will demonstrate that you truly fit whatever it is they seem to be looking for.
► Take something you learned beforehand about the company, and probe further. Show that you’ve done your homework about the company. Ask specific questions about those things that you learned. Start out with something like “During my research, I read that … I was wondering …” Demonstrating that you’ve done your research and that you are curious and interested can be very impressive!
► Take something discussed during the interview, and probe further. Expand on topics already covered, and ask for more details. This shows that you’ve been paying attention, and that you are curious, interested and eager to learn more.
► Ask about the company’s culture and work environment. Those are issues that tend to be rather abstract, and less likely to be explained on their website. Therefore, they are good topics to ask the interviewer about.
► Ask about what qualities they look for in a successful employee. How can someone succeed and grow within the company? What are the specific goals and expectations for the position you are interviewing for? What do they hope to accomplish — both short and long term — with this hire?
Sample Questions:
Here are some suggestions for questions that fit into the categories listed above. The key is to modify them, and formulate your own versions of these questions that are tailored specifically to the company and the position you are interviewing for:
► “What do you like best about working here?”
► “How would you describe the daily work environment / company culture here?”
► “How would you describe the best people you have in this company?”
► “What characteristics have made your best employees successful here?”
► “In my research, I noticed that (blank) is a big priority with the company. How does your team contribute to that company mission?”
► “Earlier, you mentioned (blank). Can you tell me a little more about how that works in your department?”
► “What are your expectations for this role during the first 30 days, 60 days, year?”
► “What are the biggest opportunities facing the company/department right now?”
► “What are the biggest challenges facing the company/department right now?”
Nailing the Final Closer:
In the end, if you are interested in this job, make sure to say so! Your final question should really nail the closer: “I just want to let you know that I am very interested in this opportunity, and hope we can move forward. What are the next steps in the interview process?” Don’t leave without determining what the expectations are for the next steps, and how and when YOU should follow-up. Ask what their timetable is for hiring, and how their hiring process works. Also make sure you get a business card with the email address and phone number of your interviewer, and send them a thank-you email that same day. If you met with more than one person, get everyone’s cards and do the same with them. Then immediately make a note on your calendar of when your pro-active follow-up call will be if you don’t hear back from them first. If you really want this job, don’t just sit back wait for them to make the next move. You have to go after it!
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Source: NYT
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A-must-to-read
Interview Warning Signs
Perhaps You Should NOT Take the Job
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ager as you are to find a job in your field,
you should always be wary if the interview process strikes you as odd
You have only an hour or less to decide whether this is a place you want to spend 40 or more hours a week, and that's not a lot of time to properly assess the situation.
Here are some red flags that should make you think twice before you sign that job offer.
1. They want you to start yesterday. Always question why a company wants you to start immediately, especially when you have a current job that you have to give your notice to. It might be that they're in a bind, and that the last person in this position left abruptly, leaving them with piles of work. Or maybe the company isn't as organized as they'd like you to believe. Either way, you should know what you are walking into and manage your expectations.
Push to start in the standard two weeks so that you can give appropriate notification to your current boss. After all, wouldn't this new company want the same courtesy? Trying to force you to leave on bad terms with your current employer is a serious red flag.
2. The position has high turnover. Maybe you've noticed the same position at this company being posted on job boards several times over the past year. Maybe you've just heard whisperings. But if you suspect you're far from the first person offered this job in the past few months, ask yourself why that might be. Then question whether you can stick with it longer than the last person, and whether you even want to.
High turnover is often the sign of poor management and a deteriorating employee morale. Do you really want to try to be the change agent that tries to fix a bad situation? Maybe not.
3. The list of duties far exceeds what was on the job description. You came into the interview thinking this role had a certain set of duties, but during the interview you're finding the list growing longer and longer ... without the expected pay increase. This is a bit of the old "bait and switch," so don't fall for it.
Before you say yes to a job offer, make sure you do your homework and set an expectation of a higher salary to commensurate with the experience and responsibilities the company is requiring. If they refuse, walk away. You should never let someone devalue your worth.
4. They want to hire you on the spot. As much as you'd love to shorten the agonizing waiting period that follows the interview, you have to scratch your head when a hiring manager offers you the job at the end of a 20-minute interview. Were you the only person they interviewed? Did she decide she'd hire you before you even came in? Why is she so desperate to close the deal right now?
Tell her you'll think about the offer, then go home and do all the digging you can to figure out if there's something you should know about this company's desperation.
5. The interviewer is disorganized. This isn't always indicative of the workplace being bad for you, but pay attention to how the interviewer handles the meeting. Did she know your name or anything about your background? Does she ask appropriate questions that relate to the work you'd be doing?
If, during the interview, you can't get a sense of what your role would be, ask if you will have an opportunity to meet with the others in the department. There, you might get a better sense of what the job is all about, and then you can figure out if everyone is as scatterbrained as your interviewer.
If your instinct tells you to run, listen to it. You might desperately want out of your current work situation, but there's no benefit to running directly into another bad situation. If you leave the interview being less than enthusiastic about working for this company, you're probably better off continuing your search.
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21 Reasons Why You Didn't Get the Job
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You aced it. Or at least you thought you did a stellar job during the job interview, but now that a month has come and gone, you're not so sure. You thought you would get at least a phone call a few days or even a week later regarding next steps, but now? Not so much. Insert crickets.
And now you have to face the music: You didn't get a shot at a final interview, let alone that coveted job offer.
What went down? Let's look at various scenarios:
1. You talked too much/too little.
2. You appeared nervous and lacked confidence.
3. Your soft skills weren't so sharp.
4. Your technical skills weren't up to par...
5. Or they were too on point and you were deemed overqualified.
6. The hiring manager felt threatened by your sparkling skills and spot-on experience.
7. You were too vague and didn't illustrate examples when asked behavioral-based questions.
8. Not a cultural fit with the team and organization.
9. Too much of a fit - maybe you appeared overconfident.
10. Your salary requirements were too high.
11. Your references bailed on you and provided not-so-pleasant insight.
12. Your thank-you note had errors.
13. You were too aggressive when following up.
14. You were late to the interview.
15. Or maybe not very polite to the receptionist.
16. It wasn't about you - it was about them, since they went with an internal candidate.
17. They closed the requisition*), downgraded it or upgraded it into something else. Or hiring has been frozen.
*) requisition = the state or condition of being needed or put into service
18. The hiring manager is out of town so all decisions are on hold regardless.
19. You didn't look the part - maybe you dressed a bit informal and the interviewers' read it as you're not taking the position seriously.
20. You threw your current/former employer under the bus.
21. It was simply not meant to be.
Essentially, there could be a plethora*) of reasons why you didn't get selected to move to the next round and get the job.*) plethora = a large or excessive amount of (something)
Quickly replay the interview in your mind; tweak accordingly next time. Trust the process, the reasons and not having all of the answers. Don't try to analyze too much, since it's easy to become stagnant in your own head instead of pounding the pavement. At this point, you can conduct a succinct**) self-awareness check to see if you can alter anything for the next interview.
*) tweak = adjust, modify, alter, change, adapt - **) = brief, compact, condensed, briefly and clearly expressed
Yes, it's deflating when you don't get a job you're yearning for, but every interview is an opportunity to learn and improve your approach. Maybe your experience was a stretch and didn't quite translate into the new role you're pursuing. As in not-so-relevant. Quickly scan the interview in your mind and tweak accordingly for the next one. For this example, next time you can connect the dots better with your skill set and strengths.
It's not you, it's them. In another instance, let's say you were polite, arrived on time, felt comfortable and confident with your answers and the dialogue and demonstrated required skills and experience for the position. Trust that you did your best and it wasn't meant to be.
Sure, you may be tempted to wonder what could have happened. The job requisition could have been filled internally, they could have selected another candidate who was a rehire or it could have been put on hold, to name a few. Countless scenarios occur behind the scenes; it's challenging for a job seeker to surmise*). Here's the good news - you don't have to surmise by spending too much time and energy thinking about it. It's not always about you and the process isn't very transparent. *) = suppose that something is true without having evidence to confirm it =
guess, conjecture, suspect, deduce, infer, conclude, theorize,speculate
Ever upward. You may be tempted to ask the recruiter for specific feedback, but chances are they won't provide it. For starters, it could put the company at risk since they probably don't provide feedback to every single candidate and because they should treat all candidates equally. Plus, it opens a can of worms - they need to focus on candidates they're going to hire, not the ones they're turning down.
And in the spirit of that mind set, you should also focus forward. Decide what you're going to improve, such as providing a range for a salary requirement instead of a specific number, and pour your attention into prospective employers. Propel forward with your search and gain momentum with each and every interview, self-assess and then forge ahead. Ever upward!
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Source: U.S. News and World Report
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Careers That Could Pay over $30 an Hour
That's over 60K
Easy formula: Each $10/h equals about 20K/year
Tired of living paycheck to paycheck? You may want to take a look at these professions that could give your bank account a little more padding.
If your savings account looks like it needs some inflating, it may be time to find a higher-paying career that could help give your financial situation a boost.
Luckily, there are plenty of great careers in a variety of fields that pay an average of $30 or more an hour. But if you think that $30 an hour doesn't sound very impressive, in annual salary terms it translates to more than $60K - not too shabby after all.*
The reason for the good pay? High demand for the highly skilled, says Mike Palumbo, founder of The Palumbo Company, a professional recruiting and consulting company in Fairhope, Ala. "These careers all have training in a specific skill. It's not just any skill, but a skill that is in demand. Until we have computers that can take blood from your arm, hammer a nail, or consult with you on a complex tax issue, these positions will be in demand for the foreseeable future," he says.
Keep reading to learn more about which professions could add to your bank account, and how you might prepare to pursue them.
Career #1: Registered Nurse Average Hourly Wage: $32.66
Average Annual Salary: $67,930
Do you enjoy being the caregiver to your aging grandmother, or comforting your friend suffering from a serious illness? Perhaps you have a calling as a registered nurse. You could earn a great salary - in addition to the reward of helping others.
Your responsibilities as a registered nurse could include setting up plans for patient care, performing diagnostic tests, and teaching patients and their families how to manage their illnesses or injuries, according to the U.S. Department of Labor.
Why It Pays Well: "It's a tough job," says Palumbo. "A hospital is open 24 hours a day, 365 days a year, so a registered nurse is required to work long hours under very stressful life-and-death situations."
NEXT STEP: Click to Find the Right Nursing Program.
Education Options: There are different paths to pursuing a career as a registered nurse. These include earning an associate's degree in nursing, a diploma from an approved nursing program, or a bachelor's of science in nursing, according to the Department of Labor. The Department also says that registered nurses must get licensed by passing a national exam.
Career #2: Accountant Average Hourly Wage: $34.15
Average Annual Salary: $71,040
Money is probably quite an important element in your daily life, and chances are you want more of it. Why not consider pursuing a career as an accountant, where you can deal with money all the time - while you could earn a good living for yourself?
Besides organizing and maintaining financial records, your responsibilities as an accountant could include helping businesses and individuals find ways to reduce costs and enhance revenue. You could also inspect accounting systems for efficiency, according to the U.S. Department of Labor.
Why It Pays Well: "Accountants get paid well because the need is so great," Palumbo says. "Most jobs are created by small businesses and with the complex nature of taxes, insurance, regulations, and the future health care expenses, the need for accountants will continue to grow."
NEXT STEP: Click to Find the Right Accounting Program.
Education Options: To prepare to pursue a career as an accountant, you will need at least a bachelor's degree in accounting or related field, the Department of Labor says. It adds that a certification within a specific field of accounting could enhance job prospects.
Career #3: Market Research AnalystAverage Hourly Wage: $32.39
Average Annual Salary: $67,380
You're intrigued by the difference between brand-name and generic products, and you constantly ask your friends where they bought this or that. That curiosity could be a great characteristic of a market research analyst - and one that could earn you good pay at that.
As a market research analyst, you might help a company understand what products people want, who will buy them, and at what price, according to the U.S. Department of Labor. The Department also says that you could be gathering data on consumer demographics, preferences, and buying habits.
Why It Pays Well: "The world is constantly changing, which is one of the big reasons why market research analysts get paid so well," said Palumbo. "Someone has to keep up with the changes in technology and trends on a daily basis."
NEXT STEP: Click to Find the Right Marketing Program.
Education Options: The Department of Labor says market research analysts need at least a bachelor's degree in market research or a related field. Many of these professionals pursue a degree in a field such as statistics, math, or computer science. Others may have a background in business administration, communications, or one of the social sciences, the Department says. Top research positions often require a master's degree.
Career #4: Diagnostic Medical Sonographer Average Hourly Wage: $31.90
Average Annual Salary: $66,360
Seeing your first child's image on an ultrasound photo was life-changing. And if you can envision being a part of this moment in other people's lives - while potentially making a good living - you should consider a career as a diagnostic medical sonographer.
Your day-to-day duties as a diagnostic sonographer might be comprised of preparing patients for procedures, maintaining imaging equipment, checking those images for quality, and recording findings, according to the U.S. Department of Labor.
Why It Pays Well: "Diagnostic medical sonographers get paid well because of the training and skills it takes to operate the technology," Palumbo says. "When you mix technology with medicine, it equals a great career position."
NEXT STEP: Click to Find the Right Diagnostic Medical Sonography Program.
Education Options: The Department of Labor says that if you're interested in a career as a diagnostic medical sonographer, you will need formal education, such as an associate's or postsecondary certificate. You might also need to pursue professional certification, as the Department says many employers require it.
Career #5: Construction Manager Average Hourly Wage: $43.73
Average Annual Salary: $90,960
You and your younger brother used to erect elaborate Lego structures day after day. Of course, being the oldest, you would be the one in charge and "lead the project". Why not put those skills of leadership and your love of building to good use in a career as a construction manager? The best part is, you could potentially see a great pay check as well.
As a construction manager, you might prepare and negotiate cost estimates and budgets; report on work progress and budget matters to clients; and select, hire, and instruct laborers and subcontractors, says the U.S. Department of Labor.
Why It Pays Well: "Construction managers get paid well because of the need to build construction projects on-time and under budget," Palumbo says. "Until the day where robots can build a building, bridge, or tunnel, we will need people to build projects. The construction manager will be needed to manage those projects."
NEXT STEP: Click to Find the Right Engineering Program.
Education Options: An associate's degree with work experience may be enough for some positions, but it is becoming more important for construction managers to earn a bachelor's degree in construction science, construction management, architecture, or engineering, says the Department of Labor.
Career #6: Computer ProgrammerAverage Hourly Wage: $37.63
Average Annual Salary: $78,260
When your family and friends run into computer problems, you are the first one they call. You could put those skills to use formally and pursue a career as a computer programmer. Besides, wouldn't it be nice to be compensated for your services for a change?
As a computer programmer, you might write programs in a variety of computer languages, debug programs, and build and use computer-assisted software engineering tools, according to the U.S. Department of Labor.
Why It Pays Well: "Someone has to teach the computer what to do," says Palumbo. He explains that while computers are getting easier to operate, most people still don't understand how computers work. Hence, computer programmers get paid well because they are in demand, Palumbo says.
NEXT STEP: Click to Find the Right Computer Science Program.
Education Options: Many computer programmers earn a bachelor's degree, but some businesses do hire those with an associate's degree, according to the Department of Labor. Most programmers pursue a degree in computer science or a related subject, the Department says.
* Average hourly and annual salaries for all careers from the U.S. Department of Labor Occupational Employment and Wages data, May 2012.
Source: Glassdoor
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The Most and Least Trusted Occupations
Public Esteem for Military, Teachers & Science Fields Still High
TABLE OF CONTENTS
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To connect to the original article Click green: according to a recent survey
Americans continue to hold the military in high regard, with more than three-quarters of U.S. adults (78%) saying that members of the armed services contribute “a lot” to society’s well-being. That’s a modest decline from 84% four years ago, the last time the Pew Research Center asked the public to rate various professions. But the military still tops the list of 10 occupational groups, followed closely by teachers, medical doctors, scientists and engineers. A solid majority of the public says each of those occupations contributes a lot to society.By contrast, just 37% of Americans surveyed think the clergy make a big contribution to society, about the same as in 2009. Regular churchgoers tend to be more positive about ministers, priests and other clergy members. But even among adults who say they attend religious services at least once a week, only about half (52%) rate clergy in general as contributing “a lot” to society, while 29% say the clergy make “some” contribution, and 11% say the clergy contribute “not very much” or “nothing at all.”
While there have been modest declines in public appreciation for several occupations, the order of the ratings is roughly the same as it was in 2009. Among the 10 occupations the survey asked respondents to rate, lawyers are at the bottom of the list. About one-in-five Americans (18%) say lawyers contribute a lot to society, while 43% say they make some contribution; fully a third (34%) say lawyers contribute not very much or nothing at all.
Compared with the ratings four years ago, journalists have dropped the most in public esteem. The share of the public saying that journalists contribute a lot to society is down 10 percentage points, from 38% in 2009 to 28% in 2013. The drop is particularly pronounced among women (down 17 points). About as many U.S. adults now say journalists contribute “not very much” or “nothing at all” to society (27%) as say they contribute a lot (28%).
These are some of the findings from a survey by the Pew Research Center’s Forum on Religion & Public Life conducted March 21 to April 8, 2013, among a representative sample of 4,006 adults nationwide. The margin of error for the survey is plus or minus 2.1 percentage points.
On balance, public perceptions of the military and teachers are overwhelmingly positive. Fully 78% of adults believe that members of the military contribute a lot to the well-being of society, and 72% say the same about teachers, while about one-in-ten or fewer say those occupations contribute not very much or nothing at all to society.
Roughly six-in-ten or more adults also say that medical doctors (66%), scientists (65%) and engineers (63%) contribute a lot to society. As with the military and teachers, negative perceptions of these occupations are comparatively rare.
Ratings of other groups are more mixed. Clergy are in the middle of the occupations considered, with 37% saying they contribute a lot to society, followed by artists (30%), journalists (28%), business executives (24%) and lawyers (18%). Majorities of the public say that all these occupations make at least “some” contribution to society’s well-being. But the balance of perceptions becomes more negative toward the bottom of the list, with a quarter or more of respondents expressing the view that journalists (27%), business executives (28%) and lawyers (34%) contribute not very much or nothing at all to society.
The ratings of these occupational groups are largely in keeping with what other surveys have found about public confidence in the leaders of various institutions. The 2012 General Social Survey (GSS), for example, asked a nationally representative sample of adults to rate their confidence in the people running a variety of institutions. More people expressed confidence in the military than in any other institution considered (55% have a great deal of confidence in military leaders), followed by leaders of the scientific community and medicine. Ratings of religious leaders were in the middle of institutions considered; a fifth of adults said they had a great deal of confidence in leaders of “organized religion” in 2012. Far fewer expressed a great deal of confidence in leaders of “television” (10%) and “the press” (9%).
Strong Consensus About Military
On balance, the military is viewed positively by all major social and demographic groups. Men and women are about equally likely to see the military as contributing a lot to society. And there are no significant differences in views on the military’s contribution to society among adults younger and older than age 50 or among those with differing levels of formal schooling.
Whites are somewhat more likely than either blacks or Hispanics to say members of the military contribute a lot to society. And Republicans and independents who lean toward the Republican Party are somewhat more likely than Democrats and independents who lean toward the Democratic Party to see the military as contributing a lot to society.
Perceptions of Science, Engineering and Physicians
Public views of medical doctors, scientists and engineers are largely positive, with roughly six-in-ten to two-thirds of U.S. adults saying each group contributes a lot to society.
Younger adults (ages 18 to 49) are somewhat more upbeat than older Americans in their assessment of these three occupations. The difference between age groups is particularly pronounced in views of engineers; 68% of 18- to 49-year-olds say engineers contribute a lot to society, compared with 56% of those 50 and older.
Americans with a college degree also are more inclined than those with less schooling to say that doctors, scientists and engineers contribute a lot to society’s well-being.
Men and women tend to have similar views on these questions. Men are somewhat more inclined than women to see engineers as contributing a lot to society (65% among men versus 60% among women), but there are no gender differences when it comes to the perceived contributions of either medical doctors or scientists.
While there are no differences in views of medical doctors by partisanship or political ideology, there are political differences in views of scientists and engineers. Democrats and Democratic-leaning independents are somewhat more inclined than their Republican counterparts to say that scientists contribute a lot to society (69% versus 64%). Political conservatives are less inclined than either moderates or liberals to say that scientists or engineers contribute a lot to society.
There are few differences between religious groups in their assessments of medical doctors’ contribution to society, but there are more differences when it comes to the contributions of scientists and engineers. White mainline Protestants, white Catholics and the religiously unaffiliated tend to be more positive about the contributions of scientists and engineers than are white evangelical Protestants, black Protestants and Hispanic Catholics.
Middling Assessments of Clergy’s ContributionThe perceived contribution of the clergy varies widely across religious groups. White evangelical Protestants are especially positive in their assessments; roughly half (52%) say clergy contribute a lot to society. Hispanic Catholics are less glowing; about three-in-ten (28%) say that clergy contribute a lot to society.
As expected, U.S. adults who have no religious affiliation are less likely to see the clergy as contributing to society. A fifth of the unaffiliated say clergy contribute a lot, while 39% say clergy make some contribution and 31% of the unaffiliated say clergy contribute not very much or nothing at all to society.
Those who attend worship services more frequently are more positive about the clergy. Among adults who attend services at least weekly, about half (52%) say the clergy contribute a lot to the well-being of society. This compares with about three-in-ten (29%) among those who attend services less often.
This pattern holds among most religious groups that are sufficiently large to be analyzed separately. White evangelical Protestants, white mainline Protestants, white (non-Hispanic) Catholics and black Protestants who attend services weekly express more positive views of the clergy than do members of each religious group who attend services less often. The exception is Hispanic Catholics; there is little difference between the views of Hispanic Catholics who attend church weekly and those who attend less often. In addition, Hispanic Catholics are less likely than other major U.S. religious groups to express an opinion about the contribution of clergy to society.
Journalists Getting Less Respect, Especially Among Women
The decline in public views about journalists’ contribution to society since 2009 is more pronounced among women than men. Roughly three-in-ten women (29%) say journalists contribute a lot to society’s well-being, down 17 percentage points from 46% in 2009. Men’s views on this are about the same today as they were in 2009.
The decline in the perceived contribution of journalists cuts across partisan leanings, age and education level. Democrats and Democratic-leaning independents as well as Republicans and Republican-leaning independents all are less likely to say journalists contribute a lot to society’s well-being today (down 8 points among Republicans/leaning Republicans and 10 points among Democrats/leaning Democrats).
About the survey
This report is based on telephone interviews conducted March 21-April 8, 2013, among a national sample of 4,006 adults, 18 years of age or older, living in all 50 U.S. states and the District of Columbia (2,002 respondents were interviewed on a landline telephone, and 2,004 were interviewed on a cell phone). Interviews were completed in English and Spanish by live, professionally trained interviewing staff under the direction of Princeton Survey Research Associates International.
A combination of landline and cell random digit dial (RDD) samples were used to reach a representative sample of all adults in the United States who have access to either a landline or cell phone. Both samples were disproportionately stratified to increase the incidence of African-American and Hispanic respondents. Within each stratum, phone numbers were drawn with equal probabilities. The landline samples were list-assisted and drawn from active blocks containing three or more residential listings, while the cell samples were not list-assisted but were drawn through a systematic sampling from dedicated wireless 100-blocks and shared service 100-blocks with no directory-listed landline numbers. Both the landline and cell RDD samples were disproportionately stratified by county based on estimated incidences of African-American and Hispanic respondents.
Several stages of statistical adjustment or weighting are used to account for the complex nature of the sample design. The weights account for numerous factors, including (1) the different, disproportionate probabilities of selection in each stratum,, (2) the overlap of the landline and cell RDD sample frames, and (3) differential non-response associated with sample demographics.
Statistical results are weighted to correct known demographic discrepancies, including disproportionate stratification of the sample. The table shows the unweighted sample sizes and the error attributable to sampling that would be expected at the 95% level of confidence for different groups in the survey.
The survey’s margin of error is the largest 95% confidence interval for any estimated proportion based on the total sample – the one around 50%. For example, the margin of error for the entire sample is ±2.1 percentage points. This means that in 95 out of every 100 samples drawn using the same methodology, estimated proportions based on the entire sample will be no more than 2.1 percentage points away from their true values in the population. Sampling errors and statistical tests of significance used in this report take into account the effect of weighting. In addition to sampling error, one should bear in mind that question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of opinion polls.
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Source: Pew Research Center
ABOUT PEW RESEARCH Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping America and the world. It conducts public opinion polling, demographic research, media content analysis and other empirical social science research. Pew Research does not take policy positions. It is a subsidiary of click: The Pew Charitable Trusts
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America’s Worst Companies to Work For
Date: July 2013
For the second year in a row, 24/7 Wall St. has identified America’s worst companies to work for. While company management can improve employee satisfaction, most of the companies on our list continue to make workers miserable.
In order to identify America’s worst companies to work for, 24/7 Wall St. examined employee reviews at jobs and career community site Glassdoor. Based on the reviews, Glassdoor scores companies on a scale of one to five with an average score of 3.2 for the over 250,000 companies measured. 24/7 Wall St. identified the nine publicly traded companies that received scores of 2.5 or lower.
Certain industries appear more likely to have lower employee satisfaction than others. Four of the companies on this list — Dillard’s Inc. (NYSE: DDS), Sears Holdings Corp. (NASDAQ: SHLD), Dollar General Corp. (NYSE: DG) and RadioShack Corp. (NYSE: RSH) — are in retail. The majority of the others provide services that require installation and repair. These include companies like home security system provider The ADT Corporation (NYSE: ADT), transaction technology company NCR Corp. (NYSE: NCR), and satellite television provider DISH Network Corp. (NASDAQ: DISH).
[More from 24/7 Wall St.: America’s Most Content (and Miserable) Cities]
In an interview with 24/7 Wall St., Glassdoor spokesperson Samantha Zupan noted that some of the companies are not a surprise. ”When I looked at Radioshack reviews there is a commonality within the reviews where people are talking about customer service and [employees] have a tough time dealing with the customers.”
On the other hand, Zupan pointed out that other companies in the retail sector, like Costco and Nordstom’s, “get rated very highly by their employees.” There are certain things that employers can do to make a job better for employees. Zupan notes that training, “knowing how to deal with different customers and different issues,” and higher compensation are both important to employees.
Not surprisingly, employees most often complained about low wages and poor benefits. Many noted that they were paid even less than the already-low industry average for their job. Benefits, if the company provided any, were either difficult to afford or inadequate.
While some employees at all levels were unhappy, complaints at these companies were disproportionately from sales representatives, customer service agents and technicians. These were generally lower-paid, front-line workers dealing directly with customers.
Issues with middle management were universal among the employees of these companies, but the types of complaints varied. Depending on the company, employees felt they were micromanaged, treated unfairly or like children, or asked to meet extreme demands.
Several of the companies on this list have failed to find a clear path to boost their sales and earnings.RadioShack has attempted to revitalize its brand multiple times by focusing on different strategies and metrics. Employees have seen the electronics retailer change its priorities so often they view these moves skeptically. Other companies have been stubborn and have not pursued any major changes despite overwhelming evidence that they should. Compared to other retailers, Sears Holdings invests little in its stores, a fact that bothers many of its employees.
Employees at poorly-rated companies tend to have low opinions of senior management. The average CEO rating across the companies measured by Glassdoor is 69%, according to Zupan. The majority of the worst-reviewed companies had CEO approval ratings of 40% or less. Only 23% of Dillard’s employees approved of CEO Bill Dillards II’s management. Sears Holdings CEO Eddie Lampert earned 19% approval.
Another attribute shared by many of the companies on this list is the perception that they have been overwhelmed by larger, better-equipped competitors. RadioShack falls into that category. It cannot effectively compete with Amazon.com, or even Best Buy. This is also true for Sears Holdings, which owns Sears and Kmart and competes with Walmart and Target. Dish, which competes with AT&T and large cable companies, faces a similar problem.
[More from 24/7 Wall St.: Countries Spending the Most on Health Care]
In order to identify America’s worst companies to work for, 24/7 Wall St. examined employee reviews at Glassdoor To be considered, companies had to have a minimum of 300 reviews. Of the more than 300 companies with more than 300 comments, 24/7 Wall St. identified the nine publicly traded companies that received the worst scores — 2.5 or lower. This year, Sears Holdings and subsidiary Kmart made the cut independently — both scores are included.
These are America’s worst companies to work for.
1. DISH
> Rating: 2.3
> Number of reviews: 831
> CEO approval rating: 40% (Joseph Clayton)
> Employees: 35,000
REUTERS/Rick Wilking
DISH has the unfortunate distinction of topping the list for the second year in a row. DISH shares many of the hallmarks of companies despised by their workers. With 14 million subscribers in a market with a great deal of competition, the number of customer complaints is large. Consumer surveys demonstrate the magnitude of the problem. DISH ranked behind AT&T’s U-verse, direct competitor DirecTV, and Verizon Fios in the most recent American Customer Satisfaction Index.
DISH’s management is regarded as so inconsiderate to employees, customers, and shareholders that Businessweek recently called it “The Meanest Company In America” and blamed long-time chief Charlie Ergen as the primary cause.
In reviews at Glassdoor, employees regularly complained about very poor pay despite their difficult work in unpleasant conditions. By far, the most common criticisms were the low salaries relative to the type of work and very poor benefits. One manager on Glassdoor said that he had never seen employees treated so poorly. “The benefits are pitiful and the salaries are not current with industry — I should know as I work in a [department] that sees the salaries.”
2. Express Scripts
> Rating: 2.3
> Number of reviews: 312
> CEO approval rating: 36% (George Paz)
> Employees: 30,215
AP Photo/Jeff Roberson
Express Scripts Holding Company (NASDAQ: ESRX) is one of America’s largest managers of prescription drugs services, with tens of millions of customers and thousands of clients. And after buying Medco Health Solutions last year, the company fills over 1.4 billion prescriptions per year, as of 2012. Express Scripts began a major workforce consolidation that included layoffs after it closed the deal in early 2012. Customer relations were roiled when Walgreen stopped accepting Express Scripts’ prescription plan.
In the most recent JD Power rating of online pharmacies, Express Scripts ranked fifth behind Kaiser Permanente, Aetna Rx, Caremark, and Cigna Home Delivery, with the Medco branded service even further down the list. Both Express Scripts and the Medco brand showed particular weaknesses in prescription delivery and customer service.
Like consumers, employees were also dissatisfied with the company. They felt pressured to reach key metrics and often complained that reaching these numbers was more important to the business than adequate customer service, or employee well-being. As a result, many employees felt overworked, and a too-heavy workload was the most common complaint. One aggrieved employee wrote that the company gives “the appearance of a work/life balance … but the truth is everyone is overworked.”
3. Dillard’s
> Rating: 2.3
> Number of reviews: 560
> CEO approval rating: 23% (Bill Dillard II)
> Employees: 27,740
Fan of Retail/Flickr
Dillard’s Department Stores is run and controlled by the Dillard family. Dillard’s has about 300 stores in 29 states. It operates in a highly competitive environment, which includes Kohl’s, Macy’s and J.C. Penney. In the last quarter, Dillard’s sales did not grow at all. Dillard’s is not only competing with larger retailers but also with Amazon.com, which has already driven several companies out of existence. In the meantime, Mike, William, and Alex Dillard receive large salaries — a total of $54 million over the course of the last three years.
Many Dillard’s employees griped about their hours and pay. They also complained about sales-per-hour targets. These targets, employees said, were unreasonable and led to intense competition among co-workers. “Lower level employees are faceless numbers to many members of upper management and are treated like pawns in a chess game,” one commenter wrote.
4. Dollar General
> Rating: 2.4
> Number of reviews: 375
> CEO approval rating: 43% (Rick Dreiling)
> Employees: 90,500
Dollar General, a discount retailer, calls itself the nation’s “largest small box retailer” with over 10,000 stores. However, that does not keep it safe from competition from huge big box companies, particularly Walmart and Target. Like other mid-sized retailers, Dollar General has struggled to prop up its bottom line, with net income virtually flat in its last reported quarter. In the latest American Customer Satisfaction Index, Dollar General ranked behind Nordstrom, Kohl’s, and even the struggling J.C. Penney.
Workers at Dollar General regularly complained they were unable to work the hours they desired, while many store managers were overworked. Yet, as one former worker noted, many employees “are expected to have full availability, even out of season, meaning NO second jobs.”
In addition to complaints about the limited hours, many reviewers mentioned the problem of theft. Some workers stated that employees steal, while others highlighted customer theft as a major concern. One sales associate noted that stores are targeted for theft, but “Dollar General believes its ‘shrink’ is caused mostly by employees.”
5. RadioShack
> Rating: 2.4
> Number of reviews: 868
> CEO approval rating: 38% (Joseph Magnacca)
> Employees: 34,500
AP/Lisa Poole
In yet another turnaround attempt by ancient consumer electronics retailer RadioShack, new CEO Joe Magnacca said he wants to revamp stores and change the merchandising strategy. It is hard to work for a company that is generally considered to be without prospects. RadioShack has just over 4,700 stores. The company also sponsors the RadioShack Leopard bicycle team, which has recently participated in the Tour de France. That sponsorship money might have gone to low-paid RadioShack retail employees.
“Radioshack constantly changes their focus because they are a struggling company,” one commenter wrote. “Basically you’ll be fighting real hard for one sales aspect and get told a month later that it doesn’t matter anymore and that everyone is a failure.” Recent reviewers have pointed out that management is placing intense pressure on employees to sell mobile phones. An assistant manager noted that this results in “having to foist services onto customers that realistically would not benefit from them.”
The company’s middle- and upper-level management was a target for many of the complaints. Reviewers noted that district and regional managers come up with sales quotas that seem arbitrary. Another frequent complaint was that managers play favorites among associates and store managers. Comments about Radio Shack also include complaints about pay below competitors, and strenuous and irregular hours.
6. ADT Security Co.
> Rating: 2.4
> Number of reviews: 309
> CEO approval rating: 55% (Naren Gursahaney)
> Employees: 16,000
S. Diddy/Flickr
ADT is a security company for both residential and business properties with 6.4 million customers. Many of these customers are homeowners who bought an ADT system for as little as $35.99 a month. Much of ADT’s initial contact with customers is handled through its dealers who install ADT security systems. ADT currently has roughly 400. Even with dealers, the burden on the system is considerable. ADT claims it answers 19 million alarm signals a year.
[More from 24/7 Wall St.: The Most Dangerous Cities in America]
Employees at ADT regularly complained about weak, disorganized management that treated them poorly and micromanaged. Several reviewers complained about the quality of the sales training, noting that the company appeared to expect new employees to figure things out on their own.
Based on the reviews, ADT appears to focus on getting new clients at the expense of both employees and existing customers, with one representative noting that the decision makers “could care less about customers after sale.”
7. Sears Holdings (Sears/KMart)
> Rating: 2.5
> Number of reviews: 583
> CEO approval rating: 19% (Eddie Lampert)
> Employees: 274,000
REUTERS/Larry Downing
Sears Holdings, which owns both Sears and Kmart, has been effectively run by hedge fund manager Eddie Lampert since it was created by a merger in 2005. Over the intervening period, Lampert has gone through several CEOs and made a name for himself as the greatest bumbler in the U.S. retail industry. Impatient after years of failure, he took the CEO job himself.
Lampert has made a great deal of his decision to use technology as a way to track customer needs as well as his closing of stores and brands. Sears Holdings ranked next to last in customer service in ACSI’s retail category, ahead of only Walmart. Kmart has been the weaker of the company’s two divisions based on same-store sales, although each is in a state of hopeless decline.
Employees at Sears and Kmart felt just as poorly about the company’s performance as Wall Street. They noted that the chains have lost their identity and suffer from morale issues. Other common concerns, especially at Sears stores, were the limited availability of work hours and constant pressure to convince customers to open new credit cards. Employees also complained about wages. One employee noted that while the company was updating its technology, raises were extremely rare.
Many employees believed the company would be better off investing more resources in the company’s locations. A recent report by Businessweek highlighted that Sears and Kmart fell well short of their peers in investing in their stores.
8. NCR
> Rating: 2.5
> Number of reviews: 385
> CEO approval rating: 39% (Bill Nuti)
> Employees: 25,700
APTRA Interactive Teller from NCR Corp (Photo: Business Wire)
NCR makes self-checkout machines, ATMs, and airport self-service kiosks. NCR claims that its technologies are used in 300 million transactions a day that facilitate everyday transactions and “make your life easier.” Many employees are involved with the sales, installation and repair of relatively low-level tech systems for cinemas, bank deposit machines, retail restaurant terminals, and similar products for the travel, telecom, and department store industries.
Employees noted that much of the technology was out of date, and that the company still required them to carry around cumbersome manuals. Others complained about poor benefits. One of the most common problems was that the company often demanded a full-time commitment. One former data processor noted an “expectation that [employees] are available to work 24/7.”
9. Fiserv
> Rating: 2.5
> Number of reviews: 440
> CEO approval rating: 40% (Jeffery Yabuki)
> Employees: 20,000
M.O. Stevens via Wikipedia
Fiserv provides information management and e-commerce products to the financial services industry. Fiserv’s primary clients are banks, credit unions, and brokers. Fiserv has completed more than 140 mergers and acquisition transactions since its was founded in 1984, according to Morningstar. It is not so much a company as a collection of assets. This method of building a corporation is often accompanied by a certain number of layoffs and paranoia about job security.
A number of commenters noted that the company provided minimal training for employees and that senior staff was unresponsive to employee concerns on the job. The company is comprised of many different acquisitions, reviewers noted, which has led to factions feuding for resources and attention, which in turn has lowered morale. “Don’t mess with the old school ‘clique’ or you can screw up advancement opportunities,” an employee wrote.
A common theme among many Glassdoor reviews also seems to be that the company is needlessly stingy. Low pay and paltry raises were frequent gripes, and several employees also expressed frustration about less-than-stellar health benefits. Failing to remember the last time they saw a doctor, one reviewer said, “The deductible is so high that they might as well not ever offer it.”
Source: 24/7 Wall Street
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Job Market Faces New Problem,
Hitting One Unlucky Group Really Hard Date: August 2013
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It's not as if the job market is blazing hot for anyone lately, but new data shows that one key demographic group that has historically been a leader, is now badly falling behind.
According to Nick Colas, the chief market strategist at ConvergEx Group, recent graduates under 25 years-old are in a particularly bad spot right now.
"It's usually college grads that do well," Colas says in the attached video."They get the first time jobs, they're pretty cheap to employ, and generally have pretty high job satisfaction."
But, he says since the recession new government data shows that this unlucky group stands out in three key ways like never before.
"Older workers are actually the big growth area," Colas says, and "younger workers are the ones that are really taking it on the chin." He calls this structural employment problem ''a big change" from prior recoveries and says the findings raise an important question.
"One is, what does college prepare you to do?" he says. "That's a big problem because colleges charge you a lot of money, but you don't necessarily get a big pay off at the end of it."
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Source: click: Matt Nesto | Breakout
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10 Things Co-Workers Won’t Tell You
Even the most well-intentioned colleagues
can rub you the wrong way
1. “I’m the most stressful part of your day.”
When she first started her job as a customer service representative at a manufacturing company, then-23-year-old Jennifer Matlack liked her co-worker, a fellow customer service rep. “In the beginning, she was lovely — friendly and funny,” she says. “We laughed a lot.” But after a few weeks, the co-worker began rolling her eyes when Matlack spoke, ignoring her and making snide comments — and it got even worse. “One day she crumpled up a piece of paper and threw it at my head,” Matlack says. “I didn’t even know what to do; I was in shock.” The situation became so stressful to Matlack that she says she “spent a lot of time crying in the bathroom stall.”
Fully 83% of American workers say they are stressed out by at least one aspect of their jobs, up 10 percentage points from last year — with more than one in 10 citing annoying co-workers as the biggest source of stress, according to a study conducted by Harris Interactive on behalf of Everest College. Those colleagues who talk too much, share too much personal information, gossip often or blame others for their failures are among the most stress-inducing, says career coach Marc Dorio. Despite all the agony these individuals inflict, their exasperated office mates rarely ask them to change, experts say — and that may be an expensive mistake: Workers who report high levels of stress spend nearly 50% more on health care each year than their more-relaxed peers, according to a study published in the Journal of Occupational and Environmental Medicine.
2. “It’s my fault you can’t squeeze into your skinny jeans anymore.”
Cupcakes for your co-worker’s birthday, cookies to celebrate a coming vacation, a crumb cake “just because” — all these thoughtful gestures may in fact be fueling resentment among co-workers, especially those trying to slim down, says career coach David Couper. More than 40% of workers say they have gained weight at since starting their current jobs; of those, 59% gained more than 10 pounds and 30% gained more than 20 pounds. A full 17% of people cite “workplace celebrations” like birthdays or potlucks as major contributors to this weight gain, according to a 2013 study by CareerBuilder.com.
All that extra snacking, of course, can lead to serious health problems and higher medical costs. The average overweight person will rack up $266 more in medical costs per year than a normal-weight person, according to a study published in 2011 in the Obesity Reviews journal. The average obese person’s medical costs were an extra $1,723.
3. “I’ll bully you.”
More than one in three people has been a victim of workplace bullying — which can range from verbal abuse to intimidation to sabotage — according to a survey conducted in 2010 by the Workplace Bullying Institute, a nonprofit. While much of this bullying is deliberate, sometimes such harassment is inadvertent. For example, someone may consider the teasing of a colleague good-natured, while it is actually making the colleague uncomfortable — not that you’d necessarily know it, says career coach David Couper. Just like at the playground, “people are scared of the consequences of calling a bully out.”
If it gets bad enough, it may cost the company that persecuted worker. More than 40% of women and 36% of men who have been the victim of bullying said they left their jobs because of it, a 2010 study by the Workplace Bullying Institute found. And that may be the best possible outcome. “It is very disruptive to one’s health,” says Gary Namie, who has studied the impact of workplace bullying extensively and co-wrote the book “The Bully-Free Workplace.” Health implications range from anxiety (one of the most common) and stress to panic attacks and depression, he says, and treating these can be costly.
4. “I’m sleeping with the boss.”
Despite the warnings about office romances, experts say they are still fairly common.
Nearly four in 10 workers say they have dated a colleague at some point in their career; of those, 29% say they have dated someone higher ranking than they were and 16% say they have dated their boss, according to a 2013 survey of more than 4,000 workers by CareerBuilder.com.
In a separate 2010 study by the Center for Work-Life Policy (now called the Center for Talent Innovation), a nonprofit research organization, more than one-third of executive women said they know a colleague who’s had an affair with a boss (and 15% of women at the director level or higher admitted to having had such an affair).
Most employees in the CareerBuilder survey said they were open about their office romances, and some 30% said they ended up married. But dating the boss in particular can have consequences. “You could run the risk of being transferred or becoming the subject of company gossip: Did you really earn that raise or promotion?” says career coach Nicole Williams, author of “Girl On Top: Your Guide to Turning Dating Rules Into Career Success.” And at some companies, dating between a boss and a “direct report” is actually against company rules and can get you disciplined or fired.
5. “I hate you because you make more than me.”
Workers who learn that their peers in similar jobs get paid more than them report significantly lower job satisfaction and are more likely to say they are looking for a job, according to a study published by the National Bureau of Economic Research in 2010. What’s more, lower-paid workers can come to personally dislike their higher-paid counterparts, “People get really resentful when they find something like this out,” says Couper. “Sometimes they feel like this even if they just sense that someone is getting paid more or receives a bonus or bigger pay raise.”
However, 15% of workers say they would share their salary information with a co-worker, according to a 2010 Glassdoor.com survey. “The millennial generation is more open about salaries than older generations,” Couper reveals. Furthermore, employees in the western U.S. are twice as likely as employees in the South to share salary information with co-workers at the same level, and those that make more money are more apt to discuss the payday details, according to the survey.
6. “I trash you behind your back.”
You’d probably prefer no one ever mentioned your alcohol-fueled dance-a-thon at the holiday party or the botched presentation in front of your boss’ boss. You’re probably out of luck. Office gossip is “very prevalent” and spreads even quicker these days, thanks to IM and email, says Bettina Seidman, president of career coaching firm Seidbet Associates. “Workplace gossip is common at all levels of the organizational hierarchy,” write Tanushree Mitra and Eric Gilbert in their 2012 study about office gossip, and negative gossip happens nearly three times as frequently as positive gossip. In offices without a consistent method of communicating news (like regular staff meetings), some 28% of employees rely on gossip as their first source for information, according to a study by office supply manufacturer Steelcase. Worst of all, any untruths your co-workers might be spreading about you will affect how others in the office view you both personally and professionally, says Seidman.
7. “I’ll wreck your marriage.”
Actual office romances aside, research finds that simply working with a lot of people of the opposite sex can increase the probability of divorce. A study from the University of Colorado, Boulder found that those who work with a larger proportion of workers of the opposite sex are more likely to get divorced than those who work mostly with their own sex. “With the economy like this, people are spending lots of time with their co-workers,” says Williams. “It creates a false sense of intimacy that ends up making you more attracted to someone in the workplace.”
8. “My nasty attitude will rub off on you …”
Whether an employee is constantly whining about the boss or the job, or just plain sullen most of the day, that person’s bad attitude is likely to rub off on their co-workers, several studies show. In fact, a 2006 study that looked at “negative groups” in the workplace — defined as groups having a member who persistently withheld effort, expressed negative affect or violated key interpersonal norms like reciprocating major favors — found that the negativity leads to poor performance and an unhappy team. “Negativity can spread like a virus,” says Brian Grossman, a psychologist and communication expert. “It seeps in because people start to believe the negative things are true.”
Just ask technical writer Matthew Arnold Stern, who, at his former job at a computer manufacturing firm, sat in a cubicle near a negative person. “He continually grumbled and swore when he was working,” says Stern. It didn’t take long for this constant negativity to affect Stern’s mood adversely: “You couldn’t tune it out — it was this horrible noise constantly in your ear.” Unfortunately, most exasperated workers wait for someone else to confront the ornery workmate, says Grossman, thus allowing the negativity plenty of time to spread through the office. The result: One bad attitude can lead to lower morale and less productivity, Grossman says, which is why he says that it is critical to address the negativity so that “productivity and motivation can proceed unfettered.”
9. “… And your sunny demeanor is getting on my nerves.”
The reverse is also true: If you’re a super-optimistic employee who is always working longer hours or taking on extra projects, you can expect some of your co-workers to secretly — or not so secretly — dislike you, say work pros. A study published in 2010 in the Journal of Personality and Social Psychology found that unselfish workers “who give much to the group effort yet take little of its subsequent reward aren't applauded but rather targeted for expulsion.”
What is it about someone going above and beyond that so rankles co-workers? People actually consider those “unselfish” people to be “rule-breakers,” who make most everyone else look bad in comparison, the study showed. Of course, this creates a problem for ambitious sorts, since taking on extra work and befriending the boss are important ways to climb the corporate ladder. Experts suggest such workers keep relatively mum about their workload. “People hate it when you talk or brag about all the extra stuff you’re doing,” says Williams.
10. “I’m disgusting.”
As many companies embrace open-plan offices and communal workspaces, slobs have become increasingly annoying to their co-workers, experts say. These tight quarters put us face to face with others’ mess, says Williams. And many people don’t realize how annoying — or unhealthy — their bad habits can be. If the mess extends beyond piles of papers to food scraps or dirty tissues, it becomes a bacterial nightmare.
More than half of all workers say that a colleague has made them sick, according to a survey by CareerBuilder.com. Not only can illness be costly in terms of time and money, but frequent absenteeism can hold back your prospects for career advancement.
Click green for further info Source: Marketwatch
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Countries Spending the Most
on Health Care
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Historically, health care spending among developed nations has grown considerably each year. However, beginning in 2010, spending has flattened. Based on figures published last week by the Organization for Economic Co-operation and Development (OECD), slow growth in 2011 reflects the continued impact the global recession has had on government spending.
As of 2011, health care cost $8,508 per person in the U.S., more than $2,800 higher than the second-highest spender among developed countries. The next big spenders are countries like Norway and Swizterland, which spent more than $5,000 per person. The reasons health care costs in these countries are so high varies considerably. Based on a report published by the OECD on global health issues, 24/7 Wall St. reviewed the 10 countries that spent the most on health care per capita.
Click here to see the top spenders
However counterintuitive, it is clear that spending more on health care does not result in better health outcomes. Of the top 10 nations with the highest health expenditure per capita, only three are in the top 10 for life expectancy. Residents in top-spending countries like Denmark and the U.S. have life expectancy below the OECD average of 80 years. At the same time, Italy and Japan both spend less than the OECD average per capita and are tied for first with the highest average life expectancy of nearly 83 years.
“Many other factors affect life expectancy beyond health care spending” explained OECD Health Division Senior Analyst Gaetan Lafortune. He mentioned living and working conditions, and lifestyle choices such as smoking and alcohol consumption and physical inactivity. He also noted that an earlier study conducted by the OECD showed that just 40% of the increase in life expectancy between 1991 and 2003, was estimated to be as a result of increased health care spending.
Whether a health care system is more privatized, as it is in the U.S., or more socialized, as it is in Norway and the Netherlands, does not appear to have much of an impact on cost. The U.S. and Switzerland had among the lowest government expenditure as a percent of total health spending. Both are in the top five for total health care spending per capita. However, so are Norway, the Netherlands, and Luxembourg, three of the health care systems with the highest public support.
In Germany, Canada, and France, pharmaceutical costs are a factor for more expensive health care, amounting to more than $600 per person annually, compared to the OECD average of less than $500. In the U.S., drugs cost nearly $1,000 per person, by far the most in the OECD.
The average hospital stay was longer in most of these countries, which may be driving up prices. However, in many of these countries, the average hospital stay for severe conditions is much lower. This, explained Lafortune, may not be cutting costs: “too short a length of stay may also cause adverse effects on health outcomes for patients. If this leads to a greater readmission rate, the cost may fall only slightly or even rise.”
While the cost of health care in some of these countries may be a product of more generous programs and higher cost of services, people may simply need more care because of poor health habits. The U.S. and Canada — two top spenders — are also in the top five among developed nations for obesity. Luxembourg, Austria, Germany, and France, are all in the top five for alcohol consumption. Lafortune explained that both alcohol consumption and obesity have been shown to drive up health care expenses. He noted that in the U.S., obesity is estimated to increase healthcare costs by as much as 10%.
Based on figures for the 34 developed nations provided in OECD’s Health Data 2013 release, 24/7 Wall St. reviewed the 10 countries where health expenditure per capita was the highest. All data is for 2011, or for the most recent available year. Included in the OECD’s release were a variety of statistics on health spending and costs. Also from the OECD, reviewed smoking rates, alcohol consumption, and obesity, as well as life expectancy.
These are the countries spending the most on healthcare.
10. France
> Health expenditure per capita: $4,118
> Expenditure as a pct. of GDP: 11.6% (3rd highest)
> Pct. obese: 12.9%
> Life expectancy: 82.2 years
Although nine countries in the OECD spent more on health care per person than France’s $4,118, only two countries exceeded France’s health care expense as a percent of GDP of 11.6%. The French have one of the longest life expectancies at birth of any developed nation at 82.2 years despite an above-average percentage of citizens who smoke and the second highest level of alcohol consumption in the OECD. France has made efforts to curb smoking and exposure to smoke in recent years. In 2007, smoking was prohibited in public places, although some residents and businesses have resisted the ban over the years.
Also Read: Countries Spending the Most on the Military
9. Germany
> Health expenditure per capita: $4,495
> Expenditure as a pct. of GDP: 11.3% (4th highest)
> Pct. obese: 14.7%
> Life expectancy: 80.8 years
While it spends nearly $4,500 per person, or 11.3% of GDP, on health care, Germany’s spending growth has been minimal Since 2000, health care expenditures have risen by an average of just 2.0% per year, one of the lowest annual average growth rates in the OECD. Germans have a high number of doctors and nurses per 1,000 residents, and each resident consults a doctor nearly 10 times a year on average. They also apparently have poor evaluations of their own health. In 2011, just 64% of Germans described their health as “good,” versus an OECD average of 69%.
8. Denmark
> Health expenditure per capita: $4,495
> Expenditure as a pct. of GDP: 11.1% (6th highest)
> Pct. obese: 13.4%
> Life expectancy: 79.9 years
Denmark spent $3,827 per person in public funds on health care, more than all but four other countries. This accounted for 85.1% of all spending on health care in the country, the second-highest proportion in the OECD, behind only the Netherlands. Denmark had the second highest number of nurses in the OECD, relative to population, at 15.4 per 1,000 residents. Conversely, it spent the second lowest proportion of any OECD country on pharmaceuticals and other medical supplies, at just 7.4% of all health care spending.
7. Canada
> Health expenditure per capita: $4,522
> Expenditure as a pct. of GDP: 11.2% (5th highest)
> Pct. obese: 17.7%
> Life expectancy: 81.0 years
Only four nations spent more than Canada on health care as a percent of GDP. Although the country offers public health care, paid for through taxes under the Canada Health Act, just over 70% of health care spending came from public funds — below the 72.2% average for the OECD. Despite its above average spending, Canada had just 2.4 doctors and 2.8 hospital beds per 1,000 residents, both among the lowest for all OECD nations. However, the nation is a major spender on pharmaceutical drugs at $752 per capita each year, higher than every other nation considered except for the U.S. Still, at 16.6% of health care expenditure, it is in line with the rest of the OECD.
6. Austria
> Health expenditure per capita: $4,546
> Expenditure as a pct. of GDP: 10.8% (8th highest)
> Pct. obese: 12.4%
> Life expectancy: 81.1 years
While Austria’s per capita health spending trails only a handful of developed nations, few countries have had spending grow as little as Austria in recent years. Since 2000, health care expenditures have risen an average of just 2.3% per year. Austria had 4.8 physicians and 7.7 hospital beds per 1,000 residents, more than nearly all other OECD nations. But despite its high health care spending, the country had just 7.8 nurses per 1,000 people, below the OECD average of 8.7 nurses. Also, Austria’s high spending did not appear make residents feel especially healthy; just 69% of residents described their health as “good” in 2011, in line with the average for all OECD nations.
5 Luxembourg
> Health expenditure per capita: $4,755
> Expenditure as a pct. of GDP: 8.2% (11th lowest)
> Pct. obese: N/A
> Life expectancy: 81.1 years
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Luxembourg spent $4,755 per capita on health care, one of the highest figures among OECD member nations. But because of its high per capita GDP — the second-highest in the world in 2012 at nearly $80,000, according to the IMF — total health care expenditure equaled just 8.2% of GDP. This was well below the OECD average of 9.3% of a country’s GDP. Public funds accounted for 84% of Luxembourg’s health care spending, for a total of nearly $4,000 per person. The country has universal health insurance that covers dependant family members, students and the unemployed.
Also Read: The Most Competitive Cities of the Future
4. The Netherlands
> Health expenditure per capita: $5,099
> Expenditure as a pct. of GDP: 11.9% (2nd highest)
> Pct. obese: 11.4%
> Life expectancy: 81.3 years
The Netherlands is one of just four nations to spend more than $5,000 per capita on health care. Health spending in the country accounted for 11.9% of GDP, a larger percentage than in any other developed nation except the U.S. Health care spending has been rapidly rising in the country in recent years, increasing at an annual rate of 5.1% since 2000, among the highest rates of any country considered. Public funding accounted for 85.6% of Dutch health spending, the most of any member country. Public health care spending has risen faster in the Netherlands than in all but two other countries, at an average of 7.4% per year.
3. Switzerland
> Health expenditure per capita: $5,643
> Expenditure as a pc t. of GDP: 11.0% (7th highest)
> Pct. obese: 8.1%
> Life expectancy: 82.8 years
The Swiss have the longest life expectancy at birth in the OECD, at 82.8 years. By comparison, the life expectancy of an American at birth is just 78.7 years. Likely contributing to the overall health of its residents is Switzerland’s low obesity rate — just 8.1% of residents reported themselves as obese, one of the lowest totals in the OECD and barely more than half the organization’s rate of 15.0%. The country requires residents to buy private health insurance, a program that “successfully delivers much of what the U.S is trying to achieve” by using the private sector to bring about universal coverage, according to Time magazine.
2. Norway
> Health expenditure per capita: $5,669
> Expenditure as a pct. of GDP: 9.3% (16th highest)
> Pct. obese: 10.0%
> Life expectancy: 81.4 years
Norway spent $4,813 in public funds per person on health care, the most of any country considered. One thing that may allow Norway to spend so much on health care: the nation is one of the world’s largest oil exporters and, as a result, has a massive budget surplus, and has built up over $700 billion in savings. No member nation or major developing country had a larger budget surplus than Norway at nearly 14% of GDP, according to OECD figures. The country’s residents practiced some of the healthiest behavior among developed countries. Just 17% of Norwegians smoked, 10% reported they were obese, and alcohol consumption was also among the OECD’s lowest.
Also Read: Countries with the Most Vacation Days
1. United States
> Health expenditure per capita: $8,508
> Expenditure as a pct. of GDP: 17.7% (the highest)
> Pct. obese: 28.5%
> Life expectancy: 78.7 years
The U.S. was by far the largest spender on health care at over $8,500 per person, totalling an unmatched 17.7% of GDP. Just two other nations surveyed by the OECD, Mexico and Chile, joined the U.S. in covering less than half of all medical expenses through public funding. Still, the cost of health care in the U.S. was so high that public expenditures on health still amounted more than $4,000 per person, trailing only Norway. Also, while 90% of residents reported they were in “good” health, the most of any OECD nation, the U.S. led all member nations in obesity by a sizeable margin, and had a life expectancy at birth of only 78.7 years — lower than 25 of the 34 OECD nations.
Source: 24/7 Wall Street
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Countries Spending the Most on the Military Date: 2012
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For the first time since 1998, global military spending is down. This coincides with a major decline in U.S. spending, which fell by more than $40 billion between 2011 and 2012. Even with this decline, however, the United States still had a military budget four times larger than China, the next biggest spender.
The Stockholm International Peace Research Institute (SIPRI) measures annual military spending for most of the world’s armed countries. According to SIPRI, the United States spent $668 billion, more than the combined budgets of the next 10 countries. While the U.S. budget has declined, some of the other global powers, including Russia and China, have ramped up spending. Based on SIPRI’s 2012 data, these are the countries spending the most on the military.
Click here to see the countries spending the most on the military
The major decline in the U.S. military budget was the result of two factors, explained Carina Solmirano, senior researcher at SIPRI’s Military Expenditure and Arms Production Programme. The first is the severe decline in overseas military spending after America’s eight-year war in Iraq ended in 2011, as well as the continued wind down of operations in Afghanistan, Solmirano said.
“The second reason,” said Solmirano, “is purely economics. … The United States is facing a huge deficit crisis, and as part of the agreements in 2011 and 2012, the Department of Defense agreed to start a reduction of expenditure — quite a significant reduction.” Solmirano added that barring the emergence of a new conflict, U.S. military spending likely will continue to fall.
Short-term changes in military spending, like the nearly 6% decline in the United States, often go hand-in-hand with periods of economic growth or crisis. Indeed, spending among nearly all the top European military powers, including Italy, France and the United Kingdom, declined last year.
Meanwhile, China went against the global trend by increasing its spending by nearly 8% between 2011 and 2012, and by more than 47% since 2008. Part of this increase is for geopolitical reasons, explained Solmirano, who added the increase in spending has “been parallel to its increase in economic power as well.”
Other nations, while not the biggest spenders overall, have much larger military budgets relative to the size of their economies. As of 2012, the United States spent 4.4% of its gross domestic product (GDP) on the military. In countries like Saudi Arabia and Oman, military costs amounted to more than 8% of GDP. Part of this, explained Solmirano, has to do with the consistently tense security situation in the Middle East. She added that countries like Saudi Arabia are able to fund massive militaries with substantial oil revenue.
24/7 Wall St. reviewed the 10 countries that spend the most on their military in 2012, based on SIPRI’s measure of military spending in more than 130 nations. We also reviewed SIPRI data on military exports and imports, as well as military expenditure as a percentage of GDP. From Globalfirepower.com, we reviewed statistics on military size and strength, based on the most recent available data. We also considered GDP and GDP growth figures from the International Monetary Fund (IMF).
10. Brazil
> Military expenditure: $36.8 billion
> Expenditure as pct. of GDP: 1.5%
> One-year spending change: -0.5%
> Total exports: $14.1 million (24th highest)
> Total imports: $212 million (24th highest)
Brazil spent roughly $36.8 billion on its military in 2012, higher than all but nine other countries. Military spending has fallen in Brazil since 2010, when the government spent $38.1 billion. Despite being among the top 10 in military spending, the country is barely among the top half in terms of the spending as a percentage of GDP, which was just 1.5% in 2012. In addition to the more than 371,000 people in Brazil who were actively serving in 2011, there were more than 1.3 million Brazilians serving in the active reserves, more than all but five other countries.
9. India
> Military expenditure: $48.3 billion
> Expenditure as pct. of GDP: 2.5%
> One-year spending change: -2.8%
> Total exports: $1.8 million (32nd highest)
> Total imports: $2.0 billion (the highest)
Military spending in India comprised 2.5% of the country’s GDP in 2012, higher than most other countries. However, this has declined every year since 2009, when India spent 2.9% of its GDP on military affairs. Between 2011 and 2012, India’s military budget declined by 3%. As of 2011, India had more than 1.3 million active military members, more than any other country except for China and the United States. In addition, India had 1.7 million active reserve members, more than any country except for North Korea and South Korea. India has been the biggest arms importer worldwide in recent years, as it has been upgrading its largely Soviet-era weapons.
Also Read: The Most Competitive Cities of the Future
8. Germany
> Military expenditure: $48.6 billion
> Expenditure as pct. of GDP: 1.4%
> One-year spending change: 0.9%
> Total exports: $486 million (6th highest)
>Total imports: $126 million (33rd highest)
Germany spent more than $48.6 billion on its military in 2012, or 1.4% of the country’s GDP. This was in line with the 1.3% of GDP it spent back in 2011 but still lower than the majority of countries measured. Germany exported $486 million worth of arms in 2012, higher than all but five other countries. In 2012, Germany announced the largest cuts to its military since the end of World War II. The government intends to scale back or close 100 of its 400 bases and cut the number of soldiers by 15,000 to 185,000. Germany expects to implement the cuts through 2017 at the latest.
7. Saudi Arabia
> Military expenditure: $54.2 billion
> Expenditure as pct. of GDP: 8.9%
> One-year spending change: 11.7%
> Total exports: n/a
> Total imports: $261 million (16th highest)
Saudi Arabia’s military budget comprised 8.9% of the country’s GDP in 2012, higher than any other country. However, this was down from 11% of GDP in 2009 and 10% of GDP in 2010. Military spending in 2012 has increased by nearly $10 billion since 2008, reaching more than $54.2 billion last year. Between 2011 and 2012 alone, military spending increased by 12%, higher than most other countries in the world. Solmirano pointed out that oil revenue in Saudi Arabia has allowed the country to spend heavily on the military in recent years. As of 2012, Saudi Arabia produced more than 11.1 million barrels of oil a day, more than any other country.
6. Japan
> Military expenditure: $59.2 billion
> Expenditure as pct. of GDP: 1.0%
> One-year spending change: -0.6%
> Total exports: n/a
> Total imports: $6 million (78th highest)
Although just five nations spent more on their military in 2012 in absolute terms, in relative terms — as a percentage of GDP — more than 100 nations spent more than Japan. Prime Minister Shinzo Abe began pushing for a stronger military after winning the office at the end of 2012. Abe’s plans to boost military spending may be limited by the country’s massive debt concerns. The IMF estimates Japan’s gross debt at nearly 238% of GDP in 2012, proportionally more than any other country. Despite these concerns, Japan recently increased military spending for the first time in 11 years. Although Japan’s constitution prohibits initiating military action, Prime Minister Shinzo Abe recently has argued that the country should be permitted to join U.N.-sanctioned military actions.
5. United Kingdom
> Military expenditure: $59.8 billion
> Expenditure as % of GDP: 2.5%
> One-year spending change: -0.8%
> Total exports: $351 million (10th highest)
> Total imports: $254 million (17th highest)
Military spending in the United Kingdom fell for the second straight year in 2012. This was likely due, in part, to a slow GDP growth of less than 1% for the second straight year and a decline in government spending as a percentage of GDP for the third straight year. Early this year, the United Kingdom cut 5,000 troops from its armed forces as part of the nation’s broad austerity measures. The U.K. spent just 2.5% of GDP on the military in 2012 and exported just over $350 million in weapons. By contrast, 25 years earlier, the nation spent 4.0% of its annual GDP on its military and exported $2.5 billion worth of arms.
Also Read: The Most Dangerous Cities in America
4. France
> Military expenditure: $62.6 billion
> Expenditure as pct. of GDP: 2.3%
> One-year spending change: -0.3%
> Total exports: $272 million (11th highest)
> Total imports: $87 million (38th highest)
France’s military budget of $62.6 billion in 2012 was higher than any other country in the European Union. However, this has declined every year since 2009, when military spending reached more than $69.4 billion. The military cuts are not over. In April, France announced it would freeze military spending, with an expected budget of roughly $235 billion for the next six years. By 2019, France is expected to reduce its armed forces headcount by 34,000, or nearly 10% of its current force. As of 2011, France had more active military members than all other countries in the EU at 362,485.
3. Russia
> Military expenditure: $90.6 billion
> Expenditure as pct. of GDP: 4.4%
> One-year spending change: 15.7%
> Total exports: $3.8 billion (2nd highest)
> Total imports: $8.2 million (74th highest)
Russia’s military budget has grown significantly in the past several years. In 2008, Russia spent just under $68 billion, or 3.7% of GDP. By 2012, the military budget had grown to more than $90.6 billion, or 4.4% of GDP. The largest increase in spending came between 2011 and 2012, when the budget was increased by 16%. Russia has been in the process of upgrading its weapons over the past several years, working to replace aging submarines, assault ships and ballistic missiles. Russia was the second-largest exporter of weapons in 2012, shipping out more than $3.8 billion in arms. Russia has more self-propelled guns and Corvette missiles than any other country.
2. China
> Military expenditure: $157.6 billion
> Expenditure as pct. of GDP: 2.0%
> One-year spending change: 7.8%
> Total exports: $443 million (8th highest)
> Total imports: $872 million (4th highest)
China increased its annual military expenditure from $107 billion in 2008 to more than $157 billion in 2012. Despite this spending increase, military expenditure as a percentage of GDP has remained relatively stable at around 2%. China has had one of the world’s fastest growing economies in recent years, even with GDP growth slowing to 7.8% in 2012. Currently, China is embroiled in a tense dispute with Japan over the resource-rich Diaoyu islands (called the Senkaku islands in Japan). China also historically has had tense relations with Taiwan, which it still considers to be a breakaway province.
1. United States
> Military expenditure: $668.8 billion
> Expenditure as pct. of GDP: 4.4%
> One-year spending change: -6.0%
> Total exports: $6.2 billion (the highest)
> Total imports: $670 million (6th highest)
The United States spends more on the military than any other country by a wide margin. The country’s military budget accounts for roughly 40% of all military spending in the world, according to SIPRI. However, military spending has declined since 2010, when it hit more than $720 billion. Much of the drop has been due to reduced presence in Iraq and Afghanistan. The United States is by far the largest arms exporter in the world — in 2012 the United States exported more than $6.2 billion worth of arms, more than $2.4 billion more than the second-largest exporter, Russia. Earlier in June, the White House announced it was arming Syrian opposition against Syrian President Bashar al-Assad’s regime.
Source: The Stockholm International Peace Research Institute (SIPRI)
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Salary Negotiation No-No's:
3 Things Never to Say in a Job Interview
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Discussing compensation is one of the more delicate parts of the job interview process. You might be asked what your salary requirements are, and freeze. Or you could be offered your dream job, but with a nightmare salary.
Luckily, you don't need a degree in negotiation to successfully navigate this conversation. Mostly, it means not saying things that are akin to shooting yourself in the financial foot. Here are three phrases likely to sabotage any chance of getting paid what you think you deserve:
"What does this position typically pay?"
If you give this response to the "what are your salary requirements" question, you'll likely lower their offer before it's even made. In the same way that you can attempt to fudge your number when asked how much you currently make, your future potential employer may bend the numbers to their advantage when discussing the standard salary. You could also come off as lazy. "It shows you haven't done your research," says Colette Ellis, founder of InStep Consulting. You can find this information through sites like Glassdoor.com, or through friends and colleagues in the industry.
"Yes, that sounds good."
It's called salary negotiation for a reason -- an employee's initial number is typically just a starting figure. This is important to remember, whether the number sounds lousy or fair. "Be prepared to come back with examples of your skills and value that support your worth," says Ellis. They want you, so remind them of why and they may be willing to fight for you in the form of added compensation.
"...but I'm flexible on that."
This phrase essentially negates whatever number came before it. "Don't negotiate your salary target down for the employer by saying, 'I'm willing to accept less if that's not in your budget,' " says Ellis. Instead, make your case and if they can't come closer, ask about bonuses or stock options that might be on the table. The key is doing your research, and then simply having the confidence to ask for what you want.
Article 2 of 4
Job offer too low? How to get the salary you want
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You've done it -- you've snagged an offer for your dream job. The only hitch? The salary isn't what you expected, or what you require. You're their top pick, so you may have a little wiggle room in terms of salary. Here's how to ask for what you think you're worth:
Throw out a long "hmmm..."
If your offer is in person, use the power of a good pause. "Repeat the offer and then blurt out this 4-letter word: 'Hmmm.' Be quiet for a little bit," suggests Jack Chapman, author of Negotiating Your Salary, How To Make $1000 A Minute. This pregnant pause may prompt them to simply ask why you're hesitating, giving you a natural opening.
Click green:
How your looks affect your salary
7 ways to increase your salary now
What people earn: lessons for a salary stalker
Know your worth
Once you know you're on the shortlist, take some time to research salaries online, on a site like Salary.com and Glassdoor.com. You won't know what to ask for if you don't have the facts. "Knowing your own Ideal, Satisfactory, and 'no go' numbers you confidence to say, 'I appreciate the offer, Mr. Employer, and based on my research, I think we should be looking at a number closer to ______,'" says Chapman.
Summarize your specific successes
In order to persuade a company to give you more money, show them that you'll likely make them more money than other candidates--in other words, that you're a good investment. "Be prepared to show your new employer what you've done in your previous positions to prove the added value you've contributed to other employers. Describe specific, measurable examples (e.g., dollars saved, clients retained, sales generated)," says Collette Ellis, founder of InStep Consulting.
Open big
You want to fight for what you think you're worth -- even if that's considerably higher than what they think you're worth. So open big, says Selena Rezvani, author of the book Pushback: How Smart Women Ask - And Stand Up - For What They Want. "When it comes to bargaining for a better salary, always start with a figure that would delight and thrill you, not simply satisfy you. Don't ever bother giving a range -- too many employers will only hear your low number," says Rezvani.
Use partnership language
You've got them where you want them, says executive coach Stephanie Somanchi: "You've been offered the job, so clearly you are wanted and your skill set valued. This is your first on-the-job collaboration." Use words like "we," to describe the salary offer discrepancy and avoid talking about yourself -- that you need more money for clothes or an apartment, for instance.
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Source: MoneyWatch
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How Your Looks Affect Your Salary
Word by STAF, Inc. President, Dr. Christian von Christophers, Ph.D., N.D., D.D.:
By looks STAF, Inc. means what kind of an impression you give by your (1) clothing, your (2) self-confidence, (3) your communication skills, (4) your capability handling the job, (5) your endurance & politeness, (6) the way you speak and present yourself, they way you walk, the way you hand greet, (7) the way your experience proves your capability to succeed in the work position.
It is not "how handsome or how beautiful" you are physically "at a first look". When a person has strong self-confidence and excellent communication skills, that person will fast impress and appear handsome or beautiful.
What matters "how you look inside", not how you look outside as long as you take good physical care of your appearance. In case you can make people laugh (by a little joke) and feel good (take courses in these skills) you will look handsome & beautiful and will be giving an impression that you are a valuable asset to the employer. When you have a positive opinion about yourself you create such a feeling and other people will adopt that from you.
Another important fact is that people who may be, by the first look, physically exceptionally handsome or beautiful,
may soon appear ugly in the eyes of the interviewer or anyone, as they may be cocky & may not always handle their good looks well - and they lose the employment because they create a negative atmosphere.
The winning beauty comes from inside and shows in the person's behavior and leads to a firm hiring and employment.
For physical looks hire a professional stylist - that may help anyone
_________________________________________
Next below the article
How Your Looks Affect Your Salary
Once more: read the above paragraph: you can create the appearance of being handsome or beautiful no matter what the original ingredients - it is all up to your behavior - see above
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By the time you're in high school, the fact that your looks can affect your love life and popularity is well-established. But it doesn't end there, according to Daniel S. Hamermesh, professor of economics at the University of Texas. His new book, Beauty Pays, outlines research that show salary and earning power can be determined, in part, by beauty (or lack of it).
Last week my colleague, Sarah Lorge Butler, wrote about her insightful conversation with him as it related to her family finances and career issues. After reading her interview, I had a few additional questions -- particularly if Hamermesh suggests plastic surgery or legal action to those discriminated against based on their lack of outer beauty, and how the findings played across gender lines. Here's what he said:
Why do you think beautiful people earn more? Hamermesh: People may more attention to them, listen to them better. Also, good-looking people become more self-confident as a result of their looks and prior treatment by others. Finally, we as customers, employers, and fellow employees prefer to be around good-looking people and are willing to pay for the privilege.
Were your findings gender neutral? Hamermesh: In most studies the effects of looks on earnings are bigger among men than women.
Interesting--why do you think men are more affected? Hamermesh: I explain it by pointing out that most men feel obligated to work, while women to some extent still have the option of staying home. So if you're a "bad-looking" woman and know the market will discriminate against you, you might stay at home. And in fact, evidence shows that better-looking women are more likely than average-looking women to be working, who are in turn more likely than bad-looking women to be working.
So should plain-looking people get plastic surgery to get ahead in the workplace? Hamermesh: Evidence suggests that this doesn't help very much. They might make you feel better, but they won't change very much how others perceive your looks. People should instead take advantage of characteristics they have in abundance -- intelligence, strength, personality, etc.
You discussed legal action as an option for fighting "looks discrimination" in a recent
click: New York Times article. Is this really likely to happen? Hamermesh: Yes and no. Yes, in that we already offer protections for characteristics that are no less readily changed than really bad looks. No, in that if we were to expand protection to this group, I would imagine it would reduce our resources and energies devoted to legal protections for other groups that I personally view as being more deserving politically. _______________
This next article is written by Daniel S. Hamermesh, professor of economics
at the University of Texas
- the same person mentioned in the article next above
You can always
improve the appearance and have a positive outcome
Any looks can always be made more attractive
Looks is not the key - your behavior is
FIRST " HOW TO MAKE YOURSELF APPEAR HANDSOME OR BEAUTIFUL"
Word by STAF, Inc. President, Dr. Christian von Christophers, Ph.D., N.D., D.D.:
By looks STAF, Inc. means what kind of an impression you give by your (1) clothing, your (2) self-confidence, (3) your communication skills, (4) your capability handling the job, (5) your endurance & politeness, (6) the way you speak and present yourself, they way you walk, the way you hand greet, (7) the way your experience proves your capability to succeed in the work position.
It is not "how handsome or how beautiful" you are physically "at a first look". When a person has strong self-confidence and excellent communication skills, that person will fast impress and appear handsome or beautiful.
What matters "how you look inside", not how you look outside as long as you take good physical care of your appearance. In case you can make people laugh (by a little joke) and feel good (take courses in these skills) you will look handsome & beautiful and will be giving an impression that you are a valuable asset to the employer. When you have a positive opinion about yourself you create such a feeling and other people will adopt that from you.
Another important fact is that people who may be, by the first look, physically exceptionally handsome or beautiful,
may soon appear ugly in the eyes of the interviewer or anyone, as they may be cocky & may not always handle their good looks well - and they lose the employment because they create a negative atmosphere.
The winning beauty comes from inside and shows in the person's behavior and leads to a firm hiring and employment.
For physical looks hire a professional stylist - that may help anyone.
_______________________________
BEING good-looking is useful in so many ways
HOWEVER,
YOU CAN make yourself
look good and attractive
For the interview and meetings wear correct clothing. Hire a professional, personal stylist - it can easily pay off the expenses and raise your salary and raise your success level in any negotiation.
Next the article
- A person's basic, starting-point physical look is not the key because any person can always change the appearance and have a positive outcome
Any looks can always be made more attractive
Looks is not the key - your behavior is - that's 100 % up to you
In addition to whatever personal pleasure it gives you, being attractive also helps you earn more money, find a higher-earning spouse (and one who looks better, too!) and get better deals on mortgages. Each of these facts has been demonstrated over the past 20 years by many economists and other researchers. The effects are not small: one study showed that an American worker who was among the bottom one-seventh in looks, as assessed by randomly chosen observers, earned 10 to 15 percent less per year than a similar worker whose looks were assessed in the top one-third --
a lifetime difference, in a typical case, of about $230,000.
Beauty is as much an issue for men as for women. While extensive research shows that women’s looks have bigger impacts in the market for mates, another large group of studies demonstrates that men’s looks have bigger impacts on the job.
Why this disparate treatment of looks in so many areas of life? It’s a matter of simple prejudice. Most of us, regardless of our professed attitudes, prefer as customers to buy from better-looking salespeople, as jurors to listen to better-looking attorneys, as voters to be led by better-looking politicians, as students to learn from better-looking professors. This is not a matter of evil employers’ refusing to hire the ugly: in our roles as workers, customers and potential lovers we are all responsible for these effects.
How could we remedy this injustice? With all the gains to being good-looking, you would think that more people would get plastic surgery or makeovers to improve their looks. Many of us do all those things, but as studies have shown, such refinements make only small differences in our beauty. All that spending may make us feel better, but it doesn’t help us much in getting a better job or a more desirable mate.
A more radical solution may be needed: why not offer legal protections to the ugly, as we do with racial, ethnic and religious minorities, women and handicapped individuals?
We actually already do offer such protections in a few places, including in some jurisdictions in California, and in the District of Columbia, where discriminatory treatment based on looks in hiring, promotions, housing and other areas is prohibited. Ugliness could be protected generally in the United States by small extensions of the Americans With Disabilities Act. Ugly people could be allowed to seek help from the Equal Employment Opportunity Commission and other agencies in overcoming the effects of discrimination. We could even have affirmative-action programs for the ugly.
The mechanics of legislating this kind of protection are not as difficult as you might think. You might argue that people can’t be classified by their looks — that beauty is in the eye of the beholder. That aphorism is correct in one sense: if asked who is the most beautiful person in a group of beautiful people, you and I might well have different answers. But when it comes to differentiating classes of attractiveness, we all view beauty similarly: someone whom you consider good-looking will be viewed similarly by most others; someone you consider ugly will be viewed as ugly by most others. In one study, more than half of a group of people were assessed identically by each of two observers using a five-point scale; and very few assessments differed by more than one point.
For purposes of administering a law, we surely could agree on who is truly ugly, perhaps the worst-looking 1 or 2 percent of the population. The difficulties in classification are little greater than those faced in deciding who qualifies for protection on grounds of disabilities that limit the activities of daily life, as shown by conflicting decisions in numerous legal cases involving obesity.
There are other possible objections. “Ugliness” is not a personal trait that many people choose to embrace; those whom we classify as protected might not be willing to admit that they are ugly. But with the chance of obtaining extra pay and promotions amounting to $230,000 in lost lifetime earnings, there’s a large enough incentive to do so. Bringing anti-discrimination lawsuits is also costly, and few potential plaintiffs could afford to do so. But many attorneys would be willing to organize classes of plaintiffs to overcome these costs, just as they now do in racial-discrimination and other lawsuits.
Economic arguments for protecting the ugly are as strong as those for protecting some groups currently covered by legislation. So why not go ahead and expand protection to the looks-challenged? There’s one legitimate concern. With increasingly tight limits on government resources, expanding rights to yet another protected group would reduce protection for groups that have commanded our legislative and other attention for over 50 years.
We face a trade-off: ignore a deserving group of citizens, or help them but limit help available for other groups. Even though I myself have demonstrated the disadvantages of ugliness in 20 years of research, I nonetheless would hate to see anything that might reduce assistance to groups now aided by protective legislation.
You might reasonably disagree and argue for protecting all deserving groups. Either way, you shouldn’t be surprised to see the United States heading toward this new legal frontier.
_________________________________________________________________
A Well-Paying, Modern Job for Many - Perhaps for You
Actors Today Don’t Just Read for the Part. Reading IS the Part
Gabra Zackman is a new kind of acting star: she is heard, but unheard-of.
Ms. Zackman had classical training through the Shakespeare Theater of Washington, has worked in regional theaters for the last two decades and has had a sprinkling of appearances on television shows like “Law and Order.” Those performances, however, have brought neither fame nor fortune.
Instead, like a growing number of actors, she has found steady employment as a reader in the booming world of audiobooks.
In recent years, Ms. Zackman has recorded more than 200 titles, and she says she can now count on steady work of two books a month, earning $1,000 to $3,000 a book. The income helps her make the payments on her one-bedroom Manhattan apartment while giving her the freedom to travel around the country and perform.
Once a small backwater of the publishing industry, in part because of the cumbersome nature of tapes, audiobooks are now flourishing. Sales have been rising by double digits annually in recent years. A recent survey by industry groups showed that audiobook revenue climbed 22 percent in 2012 compared with 2011.
Much of the growth can be attributed to the business’s digital transformation — from how books are recorded (increasingly at studios in the actors’ homes) to how they are sold (through subscription or individually on the Internet) and consumed (downloaded to mobile devices).
That development is good for publishers and authors, of course. But it has also created a burgeoning employment opportunity for actors pursuing stardom on the stage and screen, allowing them to pay their bills doing something other than waiting on tables.
Ms. Zackman says the demand for her work is tied in part to her dedication to her craft, and she does extensive research before each book, with the aim of infusing intonation and emotion into each character’s voice. She also gives credit to Audible.com, a company in Newark that is pushing the digital revolution in audiobooks, and which has become her main employer.
“I get to have a whole flourishing life as an actress because they have given me an opportunity to practice and to be employed,” she said.
Audible, the biggest producer and seller of audiobooks, says it produced some 10,000 recorded works last year — either directly or through a service it provides that allows authors to contract directly with actors. Each book amounts to an average of two or three days in the studio, but can be more, for the person voicing the book.
Donald R. Katz, the founder and chief executive of Audible, which was bought by Amazon.com in 2008, said that his company employed 2,000 actors to read books last year, and he speculated that he was probably the largest single employer of actors in the New York area.
The actors’ guild says there is no way to calculate such a number but it confirms that not only is audio narration work suddenly plentiful, but that it is also lucrative enough to allow many of its members to survive on it.
As with other forms of acting, compensation varies according to fame. An unknown actor might earn a few thousand dollars for a book, while stars like Nicole Kidman, who recently narrated Virginia Woolf’s “To the Lighthouse” for Audible, can be paid in the hundreds of thousands.
Still, Michelle Lee Cobb, president of the Audio Publishers Association, said “there are hundreds of actors who make their living reading books and we are seeing more and more people trying.”
The field is so promising that drama schools, including prestigious institutions like Juilliard and Yale, have started offering audio narration workshops.
Courtney Blackwell Burton, director of career services at Juilliard, said: “It is very exciting because it is a new source of income and work that really uses their training. We are really pushing this idea of entrepreneurship, and with narration you can even have your own studio in your home.”
Since the workshops started in 2008, eight Juilliard actors have recorded 62 books for Audible, she said.
Katherine Kellgren has led narration classes at various acting schools. She said she was excited that audio narration, which is different from other forms of acting, is finally getting recognition as a craft.
Ms. Kellgren attended the London Academy of Music and Dramatic Art for three years, where she says she trained intensely in dialects. She did radio plays early in her career, which helped prepare her for audio work.
For her first book, she auditioned for the producer over the phone by reading selections from “Out of Africa.” She got the job, which was for a bodice ripper called “Wicked Widow,” just the mention of which still makes her giggle with embarrassment.
Now, Ms. Kellgren, who refers to herself as an audiobook narrator instead of an actress, can command as much as $450 for each finished hour of narration and can be picky about the work. “When books get too spicy for me, I turn them down now because I dissolve into hysterics,” she says.
Ms. Kellgren’s style is to perform demonstrative dramatic readings, giving each character a distinct voice. She even has a dialect coach. She has recorded nearly 200 books and says she even has a fan base.
“It is not exactly people stopping me and saying, ‘didn’t you read “Pride and Prejudice and Zombies”?,’ ” she said, “but I have been at various book festivals and people recognize me by my work.”
Another actor, Jonathan Davis, also can command a premium price for his services. He has narrated over 30 Star Wars books for Lucasfilm and Random House, as well as critically acclaimed books like the Pulitzer Prize-winning “The Brief Wondrous Life of Oscar Wao” for Audible.
Mr. Davis cautions that narration is not for everyone. “You need endurance, patience, and you need to do a lot of research,” he said. “I am in the booth from 9 to 4 and the average book could be three days to seven days.”
The upside, for him, has been a connection with authors like Bret Easton Ellis and Oliver Sacks and also a tremendous amount of freedom to define the project artistically. “I feel like they have a great respect for what I do,” he said of Audible, his most regular client.
His style is more restrained than Ms. Kellgren’s. “You paint the whole picture but you are very controlled,” he said.
“A fan once said to me that my narration was like ‘a modern version of sitting around a campfire listening to tribal elders,’ ” he added. “That is what makes me feel I am on the right track.”
Source: NYT
_________________________________________
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_______________________________________________________________
Here’s some advice for tuning up your own resume
without getting turned out, starting with the obvious…
1. Don’t lie
Incidents like this are likely to make employers vet candidates more thoroughly in the short term, but it’s not a risk worth taking even under normal scrutiny. Lies can cost you a job, and if they’re publicized, possibly your career in the field.
2. Don’t exaggerate your skills
While it’s not as bad as inventing a degree you never earned, don’t leave an employer thinking you’re an expert at a computer program you can barely operate. If it’s a necessary skill you don’t actually have, you’re going to get caught eventually.
If you want to include skills you “sort of” know but haven’t mastered, no problem: Just be clear about it by separating your skills into “expert” and “knowledgeable” categories. If you’re a whiz and can efficiently do anything from scratch, put it in the former. Anything where you can get by with a refresher goes in the latter.
3. Your resume isn’t your Facebook profile, or even LinkedIn
Bosses don’t look for much in a resume – besides, you know, honesty and real qualifications – and research suggests they spend an average of six seconds looking at one. (But we assume more time on high-profile positions. Or maybe that’s how this happened?)
So just hit the highlights. This isn’t your biography. You can share your interests and hobbies when you make it to the interview, when they’ll want to know more about you.
4. Skip the objective
Odds are an objective isn’t going to make you stand out from the crowd. At best, it’s probably a space waster. At worst, it says something vague (“To gain experience and knowledge in a field I am interested in pursuing for a career”) or lame (“To work ethically in a professional environment”) that a manager might actually laugh at. So look objectively at your objective, and if it isn’t compelling, delete it.
5. Got a college degree? Forget high school
The only reason to include high school on a resume is if you didn’t go to college. High school didn’t matter once you got to college, and it certainly doesn’t matter now. If you have a college degree, just list that – an obvious indicator that you made it through high school.
6. Always include references
Think of references as celebrity endorsements. Saying references are “available upon request” does nothing for you – it’s a wasted opportunity, usually coming from a fear the employer might try to ambush them. But employers aren’t going to call your references before they call you. Bosses are busy people, and it’s a waste of time to ask someone else about you until they ask you about you. So if your bosses from previous jobs think you did well, include them – but ask first.
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Free Resume Templates
Build Your Perfect Resume for Free! Choose from Hundreds of Designs.
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7. Highlight accomplishments
A job title and work dates don’t tell a whole lot – just that you were a warm body collecting a paycheck. The best resumes include bullets of their major contributions in previous positions: Did you win awards? Boost productivity or profit by a measurable margin? Start a new program or run one better than anyone before you?
8. Tailor the resume to the job
If you’re applying for a different position than the last time you sent in a resume, update it. Your experience may not have changed, but you may want to reword or rearrange things to highlight relevant skills. And if it’s not relevant, trim it or push it down. Remember: six seconds.
9. Make it readable
No matter how much experience you have, few resumes need to be more than two pages, and most don’t need that much. (You only need to go back 10 to 15 years.) Don’t try to cram everything in, using tiny fonts and leaving no space. Summarize, cut unnecessary words, and don’t fear white space. A resume with breathing room will stand out more than a dense one that requires squinting.
10. Proofread (twice)
Hiring managers are just looking for excuses to shrink that stack of resumes on their desk, and a spelling mistake is an easy reason to toss one away. You’re not likely to catch all your typos right after editing, so leave yourself some time to review it later. Then send it to a friend or family member, who will probably catch things you missed.
Don’t be afraid to follow up about a week after you send in a resume – click: most employers actually encourage it.
Sending a cover page in too? Check out 5 Tips for Writing a Terrific Cover Letter
Subscribe by email Like this article? Sign up for our email updates and we’ll send you a regular digest of our newest stories, full of money saving tips and advice, free! We’ll also email you a PDF of Stacy Johnson’s ’205 Ways to Save Money’ as soon as you’ve subscribed. It’s full of great tips that’ll help you save a ton of extra cash. It doesn’t cost a dime, so why wait? Click here to sign up now.
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Click the green title:
5 Tips for Writing a Terrific Cover Letter
FORBES: The only three true job interview questions
(1) Can you do the job?
(2) Will you love the job?
(3) Can we tolerate working with you?
Answer the above 3 questions well already in your cover letter and then during the interview
Click green for further info
In the age of LinkedIn, where some people apply to jobs through smartphone apps and email, do cover letters still matter? A new survey of hiring managers gives a pretty clear answer: Heck, yeah.
Staffing agency OfficeTeam released a study last week that found 91 percent of executives consider cover letters valuable in evaluating candidates. And 79 percent said even electronic applications they’ve received usually included cover letters.
Both numbers are slightly higher than when OfficeTeam conducted a similar study with 150 managers just before the recession took hold in 2008. If anything, that suggests cover letters have grown more important over the past few years, not less.
That makes sense. Hiring managers often receive a thick pile of applications these days, and they can’t realistically assess everybody’s qualifications and then mentally match names and faces as they go through rounds of interviewing. That means cover letters are important in two ways.
First, they make strong candidates stand out from the pack. Second, they give candidates with average resumes a chance to offer context and examples that highlight answers to what
Forbes calls the only three true job interview questions
(1) Can you do the job?
(2) Will you love the job?
(3) Can we tolerate working with you?
Use these 3 above exact questions and answer briefly each of these
3 questions in your cover letter - then you are invited more often to an interview.
With that in mind, here are the 5 R’s to punching up your next cover letter…
Job-seekers should also want to check out click: Avoid These Awful Resume Mistakes and click: 4 Places for Free Job Training.
Subscribe by email (Click: Sign up for our email updates and we’ll send you a regular digest of our newest stories, full of money saving tips and advice, free! We’ll also email you a PDF of Stacy Johnson’s ’205 Ways to Save Money’ as soon as you’ve subscribed. It’s full of great tips that’ll help you save a ton of extra cash.
It doesn’t cost a dime, so why wait? Click here to sign up now.
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Click:
Weird Cover Letter Secret
Practically Forces Managers to Call You For a Job Interview, and Hire!
jobsearchjimmy.com/CoverLetterTrick
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Source: jobsearchjimmy.com
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STAF, Inc. urges you to connect the website jobsearchjimmy.com - you will find valuable, practical information how to get hired - apply the information
Quote "Knowledge is no power, only applied knowledge is power"
(Dr. Christian, STAF, Inc. CEO)
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Next, after this article,
you'll see plenty of guidance for a successful interview and then all other necessary information
Employment At Will: What Does It Mean?
by: Lisa Guerin, J.D.
Source: Nolo
CLICK to find free legal info and much more: Nolo.com: Lawyers, Legal Forms, Law Books & Software, Free Legal ...www.nolo.com/
Our mission is to help consumers and small businesses find answers to their everyday legal and business questions.Wills, Trusts & Probate - Legal Forms, Online ... - Real Estate - Nolo's Legal Glossary - and much more
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If you are employed at will, your employer does not need good cause to fire you.
Job applicants and new employees are often perplexed to read--in a job application, employment contract, or employee handbook--that they will be employed "at will." They are even more troubled when they find out exactly what this language means: An at-will employee can be fired at any time, for any reason (except for a few illegal reasons, spelled out below). If the employer decides to let you go, that's the end of your job--and you have very limited legal rights to fight your termination.
If you are employed at will, your employer does not need good cause to fire you. In every state but Montana (which protects employees who have completed an initial "probationary period" from being fired without cause), employers are free to adopt at-will employment policies, and many of them have. In fact, unless your employer gives some clear indication that it will only fire employees for good cause, the law presumes that you are employed at will.
This article will help you figure out whether you're employed at will, what rights you have as an at-will employee, and what you should do if your prospective or current employer asks you to sign an at-will agreement.
Learn more about (Click: Employee Rights
Are You an At-Will Employee?
The law generally presumes that you are employed at will unless you can prove otherwise, usually through written documents relating to your employment or oral statements your employer has made.
Employment Documents
Many employers take pains to point out, in their written policies, applications, handbooks, job evaluations, or other employment-related documents, that their employees work at will. If you are currently employed, look through your employment documents -- particularly those you have signed -- to see whether any of them mention at-will employment. If you have signed a document agreeing that you are an at-will employee, that's probably the end of the story.
If you have not signed an at-will agreement, check your employee manual or other written workplace policies. Do they state that you can be fired at any time? That you can be fired without cause? Even if your employer does not use the term "at will," statements that you can be fired without good cause or "for any reason" are indications that your employer follows an at-will policy.
On the other hand, some employers have written policies that require good cause to fire, provide an exclusive list of reasons for which employees can be fired, or otherwise provide employees some job protections. If your employer has adopted these kinds of policies, you are entitled to rely on them.
Similarly, if you have signed an employment contract that promises job security, you are not employed at will. For example, if you have a two-year contract that states you can be fired during the contract term only for committing a crime, then you are not an at-will employee. If you are fired for any reason not specified in the contract, you may well have a legal claim against your employer for breach of contract.
Statements by Your Employer Has your employer made any statements, either during the hiring process or after, indicating that you will be fired only for good cause? For example, an employer might say, "You'll always have a home here as long as you do a good job," or "We only fire employees who are unable to meet our performance standards, even after coaching and training." In this situation, especially if the comments have been made repeatedly and/or were a big reason you took the job, your employer may not be able to fire you at will.
On the other hand, if you are told during the hiring process or afterwards that you will be an at-will employee, your employer will certainly rely on that statement as proof that it reserved the right to fire you for any reason, if you are terminated and take legal action against your employer.
Your Rights as an At-Will Employee
Even if you are an at-will employee, you still cannot be fired for reasons that are illegal under state and federal law. In these situations, the government has decided to make an exception to the general rule of at-will employment.
For example, if your employer is subject to federal and state laws prohibiting job discrimination (as all but the smallest employers are), you cannot be fired because of certain characteristics, such as your race, religion, or gender. (For more information on discrimination, see Nolo's articles on Your Rights Against Discrimination and Harassment.) Similarly, you cannot be fired because you have complained about illegal activity, about discrimination or harassment, or about health and safety violations in the workplace (see Nolo's article Assert Your Safety Rights Without Fear of Retaliation). And you cannot be fired for exercising a variety of legal rights, including the right to take family and medical leave, to take leave to serve in the military, or to take time off work to vote or serve on a jury.
At-Will Agreements
To protect their right to fire at will, many employers ask job applicants and new employees to sign a written statement agreeing that they are (or will be) employed at will. Such a statement might appear in an employment application, an employment contract or offer letter that the employer asks you to sign and return, an acknowledgment form for an employee handbook, or elsewhere.
When You Should Sign an At-Will Agreement
Theoretically, you don't have to sign an at-will agreement -- but most courts have held that your employer can fire (or refuse to hire) you for failing to do so. For this reason, most applicants and employees simply grit their teeth and sign on the dotted line.
Even though you may not have much choice about signing an at-will agreement, that doesn't mean your employer will rely on it to fire you without a good reason. Savvy employers know that they have nothing to gain by firing employees arbitrarily. Instead, employers are often motivated to work through issues with you before resorting to such drastic measures.
When You Should Think Twice Before Signing an Agreement
Be wary of signing an at-will agreement if you relied on your employer's promises of continued employment when you decided to accept the job. For example, let's say that your employer promised, during the hiring process, that it would give you at least one year to learn your new job and that you would not be fired during that time. If that promise influenced your decision to take the job, you should not sign an at-will agreement contradicting the promise. Virtually every court will treat a signed at-will agreement as the final word on the subject, no matter what your employer said to you earlier.
If your employer wants you to sign an at-will agreement that seems to undercut its promises, ask about the discrepancy. If the employer stands by its earlier statements, ask that they be put in writing. If your employer refuses to honor its statements or changes its tune, it might be time to talk to a lawyer--particularly if you quit another job on the basis of those broken promises.
For more information on finding and working with a lawyer, (click: How to Find an Excellent Lawyer
For an easy-to-read guide to the laws that protect you in the workplace, (click: Your Rights in the Workplace
by Barbara Kate Repa (Nolo)
by: Lisa Guerin, J.D.
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Source: Nolo
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Read this & get motivated to create a result-bringing act for you also
Grad Student Looking for Work Takes Sweet Approach
Click green below to connect to the original article with the pictures (if the link has expired search the web with the title)
Grad Student Looking for Work Gets Noticed for His Sweet Approach ABC News Well, that's what Fordham graduate student Michael Penn, 23, did this morning. His goal: to land a job in the financial services industry, specifically at Goldman Sachs. _________
What's the craziest thing you've done to get a job? Ever hand out free coffee and doughnuts in front of a potential employer?Well, that's what Fordham graduate student Michael Penn, 23, did Thursday morning.
His goal: to land a job in the financial services industry, specifically at Goldman Sachs.
"Goldman Sachs is the pinnacle, the top, the peak & summit of the financial industry, and I'd like to be sculpted by a firm like it," Penn told ABC News today.
So at 7 a.m. Thursday, he set up a booth outside the investment bank's office building in Lower Manhattan, complete with refreshments and a sign that read: www.HireMichaelPenn.com.
The Hiring Situation for New College Graduates Looks Bleak
"I wanted to do something innovative for my job hunt. I am graduating in two weeks. I came up with the idea to get some face time," said Penn, who hails from Boca Raton, Fla., and pursued a master's degree in global management.
With his website printed on his booth and the coffee cup sleeves, Penn started gaining some attention.
Within minutes, word about what Penn was doing had traveled to an employee at a leading investment bank. Penn said he received an email.
"He said: 'I want you to come down here,'" Penn said.
He was immediately given an interview later in the morning.
Penn said he wanted to prove to himself and to other people that there were ways of finding jobs. It just takes innovative ideas.
"It's just simple economics - supply and demand. The jobs are there. There are just more master's and MBAs out there now. You really need to get out there and differentiate yourself," he said.
Penn, who is still unemployed, said because of all the great feedback he'd received, he would go back to Goldman Sachs, or try someplace else.
"I would love to increase my Rolodex, and this is a great way to do it," he said. "It was so heartwarming. People really wanted to see me succeed."
Click: Check Out the Top 20 College Degrees With the Best and Worst Return on Investment
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Source: ABC news
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Really Good info - read - apply - win
Soft Skills:
What Employers Want (and Don't Want) in an Employee
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To start with:
These are two simple and very powerful things you can do to demonstrate your value:
(1) make those around you look good to others within and outside your workplace,
(2) and assist in any way you can, large or small.
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The Bible: Whoever wants to be the greatest must be a servant to everyone click: Mark 10:42-45
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No matter the technical or how-to (“hard”) skill requirements of a job, there are "soft skills" valued at all workplaces. Sometimes what separates a good employee from an exceptional one is taking just one or two extra steps or considering a situation from the employer’s point of view. Whether you are trying to get a job, keep a job, get promoted, or have a more successful career, you will benefit from giving regular thought to how you can serve a current or potential employer better.
Employers want employees who are: self-motivated, have ideas and take initiative; deliver more than is promised or expected
Employers don't want employees who: wait for specific instructions, deliver the bare minimum
By regularly performing beyond what is required, you’ll make yourself ever more valuable to your
employer, which is crucial these days with hiring freezes and layoffs. Even if not all of your ideas are implemented, the fact that you are thinking of ways to improve things or try something new
will be appreciated
Want: Flexible, eager to learn new things
Don't want: Resistant to change, uninterested in learning new skills
Rapid, constant change is commonplace these days. Low-maintenance employees who can adapt quickly and without a fuss are more likely to be retained when there’s a layoff.
Want: Easy to work with, positive, has conflict resolution and negotiation skills
Don’t want: Conflict with supervisor and others, resistance to compromise, complaining
Positivity and amiability are good qualities at any job, and with so many positions these days being temporary, project, or consulting work, it is more important than ever to get along with those with whom you interact. Working successfully with others increases your visibility in the workplace, expands your network, and builds your reputation in a positive way – all these can help to increase your job security.
Want: Has a large network; active in professional organizations
Don't want: Uncomfortable with networking or uninterested in professional activities beyond “9 to 5”
Alliances with others in your field provide opportunities to collaborate and share resources, information, and advice. These things benefit everyone involved: you, your employer, and those in your network. A strong network is also essential for a successful job hunt.
Want: Informs supervisor of problems and proposes well-thought-out solutions
Don't want: Brings problems to supervisor and expects him/her to give solutions
Problem-solvers are much preferred to problem-bringers. This is another way to demonstrate initiative and good judgment and shows respect for your manager’s time.
Want: Organized and able to multitask, punctual, behaves professionally, meets deadlines without reminders
Don't want: Chronically late, disorganized, unprofessional, rude or abusive, requires close supervision to get work done
If you demonstrate effective time management and consistently professional demeanor and interactions, you’ll gain your supervisor’s trust and s/he will appreciate not having to devote time to checking up on you. This can lead to increased responsibilities and more opportunities in the future.
Want: Takes responsibility, reliable, honest
Don’t want: Gives excuses, hides mistakes, blames others
Trust can take a long time to build, and very little time to destroy. Your boss will likely forgive you for making a mistake if you own up to it, apologize, fix it, and take care not to make it again. Honesty is not just telling the truth, it is also keeping your word; do what you say you’ll do, every time.
Want: Understands when to discuss, and when to follow instructions
Don’t want: Endless debate, questions every decision
There’s a time to ask questions and offer opinions and there’s a time to say “Got it” and just do what needs to be done. Your boss will appreciate it if you can read situations accurately and know which response is appropriate.
Want: Able to accept and give criticism in a professional manner
Don’t want: Takes things personally, becomes defensive, avoids difficult conversations with direct reports or gives feedback in a harsh, harmful way
Accepting constructive criticism can sting, and giving such criticism can be more uncomfortable than many new supervisors imagine it would be. Being able to do both with grace and respect and move forward without drama will serve you well in your career.
Want: Strong communication skills: writing (formal and informal), verbal, presentation/instruction
Don’t want: Unclear communications, poor writing skills, discomfort with public speaking or presentations
Effective and appropriate communication in different work settings is required for success, and comfort with public speaking is a plus if not a requirement for many positions and for advancement.
Want: Makes employer and supervisor look good, lightens supervisor’s and others’ loads
Don't want: Disinterested in making employer look good or more interested in promoting self
These are two simple and very powerful things you can do to demonstrate your value:
(1) make those around you look good to others within and outside your workplace,
(2) and assist in any way you can, large or small.
To end with:
These are two simple and very powerful things you can do to demonstrate your value:
(1) make those around you look good to others within and outside your workplace,
(2) and assist in any way you can, large or small.
Source:
Ellen Mehling received her MSLIS from Long Island University and works as a librarian, instructor and writer in and around NYC. Her professional experience includes work in special, public, and academic libraries, as well as archives. She is Director of the Westchester Graduate Library School Program and Director of Internships for L.I.U.’s Palmer School and since 2009 has been METRO’s Job Bank Manager / Career Development Consultant. She teaches classes and workshops on job hunting, information literacy, researching, and other subjects at METRO’s Training Center and other venues within and outside NYC.
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Article 2 of 2 (Article 1 of 2 next above)
Good - Good - Good
Really Good Info - Read - Apply - Win
What You Need Besides Experience to Get That Job A New Survey - A Nationwide Study
with 2,076 hiring managers and human resource professionals across industries
Click colored areas for further info A new survey has lifted the lid on what, beyond job skills, influence a hiring managers decision.
The CareerBuilder study shows that job candidates may also need everything from a sense of humor to knowledge of current affairs to showing they are involved in their community in order to be successful.
Click: Careerbuilder.com: Jobs & Job Search Advice, Employment Careers
www.careerbuilder.com/ Looking for a new job? Get advice or search over 1.6 million jobs on the largest job site, set alerts to be first in line and have new jobs emailed to you.
The nationwide study, which included 2,076 hiring managers and human resource professionals across industries, asked them to say which factors would make them more likely to choose one of two equally qualified candidates.
The top responses:
- The candidate with the better sense of humor: 27 percent - STAF, Inc.'s hint: buy a few joke books, use the jokes, telling jokes to your friends trains you to become more humorous - tell a joke or 2 to the hiring manager
- The candidate who is involved in his or her community: 26 percent
- The candidate who is better dressed: 22 percent
- The candidate whom I have more in common with: 21 percent
- The candidate who is more physically fit: 13 percent
- The candidate who is more on top of current affairs and pop culture: 8 percent
- The candidate who is more involved in social media: 7 percent
- The candidate who is knowledgeable about sports: 4 percent
"When you're looking for a job, the key is selling your personal brand," said Rosemary Haefner of CareerBuilder in a statement. "Employers are not only looking for people who are professionally qualified for the position, but also someone who is going to fit in at the office."
This unspoken assessment proves doesn't stop when you get the job, of course. It plays a large part in determining who does and doesn't get promoted. The survey also asked executives to identify what they look for when picking out who gets promoted.
Speaking up counts for a lot: One third of employers say they are more likely to promote an employee who has previously asked for a promotion. However, there was much more agreement about what kinds of behavior keeps someone from being moved up, including:
- Someone who says, "that's not my job:" 71 percent
- Someone who is often late: 69 percent
- Someone who has lied at work: 68 percent
- Someone who takes credit for other people's work: 64 percent
- Someone who often leaves work early: 55 percent
- Someone who takes liberties with expenses charged back to the company: 55 percent
- Someone who gossips: 46 percent
- Someone who doesn't dress professionally: 35 percent
- Someone who swears: 30 percent
- Someone who doesn't say anything in meetings: 22 percent
- Someone who cried at work: 9 percent
- Someone who has dated a co-worker: 8 percent
However, you may want to think twice before trying to get a promotion. The study also found that at nearly two-thirds of the companies surveyed a promotion doesn't guarantee a pay raise.
Click colored areas for further info
Source: click: Careerbuilder.com: Jobs & Job Search Advice, Employment & Careerswww.careerbuilder.com/ Looking for a new job? Get advice or search over 1.6 million jobs on the largest job site, set alerts to be first in line and have new jobs emailed to you
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“So, Do You Have Any Questions?” Nailing the Interview Closer
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Quotation “The fortunate circumstances of our lives are generally found, at last to be of our own producing” -- Oliver Goldsmith Oliver Goldsmith - Wikipedia
Anyone who has ever been interviewed for a job of any kind has most likely heard some variation of this line: “So, do you have any questions?” It’s the standard way that most interviewers wrap things up, and signal that the interview is coming to a close. It’s a query posed near the end of practically every type of interview: Phone Interviews, Face-to-Face Interviews, Skype Interviews, etc. It sounds like a rather innocent question, and could easily be dismissed by a job-seeker as a mere formality — not worthy of a thoughtful response. Well, don’t make that mistake! The truth is, how that question is answered can often make or break someone’s chances of landing a job.
Candidates are judged by the quality of the questions they ask during an interview. Candidates who have no questions at all might be perceived as having no interest in the position. Even worse than that, inappropriate or off-track questions can be viewed as a huge red flag by any interviewer. Asking the wrong questions can easily sink an otherwise successful interview.
There are literally thousands of possible variations of typical questions that could be used as interview closers. I certainly don’t intend to list them all here. And obviously, the specifics of each interview (the nature of the position, the type of company, the level of the person conducting the interview, etc.) will often determine what questions make the most sense to ask. Rather, I hope to list some general do’s and don’ts, and suggest some specific examples of successful questions that are likely to score points and head the conversation in the right direction.
What NOT to ask during an interview:
Let’s start with obvious no-no’s that will most likely get you eliminated from consideration by any interviewer:
► Don’t ask what the company does, what products they produce, or other basic questions that anyone could find the answers to by simply reading the company’s website. (Do your homework, and don’t sound like an idiot!)
► Don’t ask about compensation, vacation, or benefits. Those are clearly things that fall under the category of “what’s in it for me” — but certainly won’t show what’s in it for the interviewer! On the other hand, if the interviewer brings up the salary issue first, be prepared to address it head on.
[Read “Answering the Dreaded Salary Question” for suggested strategies on how to deal with this controversial issue.]
► Don’t ask about anything sensitive or negative that you might have read or heard about the company — e.g. recent layoffs, poor financial performance, bad press reports, lawsuits, complaints or any other negative issues you are aware of. Most interviewers would rather keep the discussion focused on the positive aspects of their company, and will be very uncomfortable if those types of issues are brought up by a candidate.
► Don’t ask generic, standard questions that sound as though you found them on a website (like this blog!) and are reciting them from a script. Most savvy interviewers will be able to spot those types of canned questions a mile away, and easily distinguish them from more thoughtful, insightful questions that pertain specifically to their company or the exact position you are interviewing for.
► Don’t ask personal questions about the interviewer’s family, marital status, children, hobbies, political opinions, religious affiliation, etc. Unless you have a prior history with the person, issues like that are totally inappropriate for an interview with someone you just met. (On the other hand, if they bring those things up first then simply follow their lead … but tread carefully with these topics and don’t offer up too much personal information of your own. Try to stay focused on the business at hand.)
► Don’t ask point blank if you are going to get the job. That tends to put the interviewer on the spot, and makes people feel very uncomfortable.
What you SHOULD ask:
Here are some general categories that you can use as a guide to formulating winning interviewee questions:
► Ask open-ended questions, as opposed to yes-no questions. “Can you tell me more about …” “What is your opinion of …” The idea is to get the interviewer to talk more — to reveal more information about the company, about the position, about themself and about their expectations. Ideally, you can then use that information to say things that will demonstrate that you truly fit whatever it is they seem to be looking for.
► Take something you learned beforehand about the company, and probe further. Show that you’ve done your homework about the company. Ask specific questions about those things that you learned. Start out with something like “During my research, I read that … I was wondering …” Demonstrating that you’ve done your research and that you are curious and interested can be very impressive!
► Take something discussed during the interview, and probe further. Expand on topics already covered, and ask for more details. This shows that you’ve been paying attention, and that you are curious, interested and eager to learn more.
► Ask about the company’s culture and work environment. Those are issues that tend to be rather abstract, and less likely to be explained on their website. Therefore, they are good topics to ask the interviewer about.
► Ask about what qualities they look for in a successful employee. How can someone succeed and grow within the company? What are the specific goals and expectations for the position you are interviewing for? What do they hope to accomplish — both short and long term — with this hire?
Sample Questions:
Here are some suggestions for questions that fit into the categories listed above. The key is to modify them, and formulate your own versions of these questions that are tailored specifically to the company and the position you are interviewing for:
► “What do you like best about working here?”
► “How would you describe the daily work environment / company culture here?”
► “How would you describe the best people you have in this company?”
► “What characteristics have made your best employees successful here?”
► “In my research, I noticed that (blank) is a big priority with the company. How does your team contribute to that company mission?”
► “Earlier, you mentioned (blank). Can you tell me a little more about how that works in your department?”
► “What are your expectations for this role during the first 30 days, 60 days, year?”
► “What are the biggest opportunities facing the company/department right now?”
► “What are the biggest challenges facing the company/department right now?”
Nailing the Final Closer:
In the end, if you are interested in this job, make sure to say so! Your final question should really nail the closer: “I just want to let you know that I am very interested in this opportunity, and hope we can move forward. What are the next steps in the interview process?” Don’t leave without determining what the expectations are for the next steps, and how and when YOU should follow-up. Ask what their timetable is for hiring, and how their hiring process works. Also make sure you get a business card with the email address and phone number of your interviewer, and send them a thank-you email that same day. If you met with more than one person, get everyone’s cards and do the same with them. Then immediately make a note on your calendar of when your pro-active follow-up call will be if you don’t hear back from them first. If you really want this job, don’t just sit back wait for them to make the next move. You have to go after it!
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Source: NYT
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A-must-to-read
Interview Warning Signs
Perhaps You Should NOT Take the Job
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ager as you are to find a job in your field,
you should always be wary if the interview process strikes you as odd
You have only an hour or less to decide whether this is a place you want to spend 40 or more hours a week, and that's not a lot of time to properly assess the situation.
Here are some red flags that should make you think twice before you sign that job offer.
1. They want you to start yesterday. Always question why a company wants you to start immediately, especially when you have a current job that you have to give your notice to. It might be that they're in a bind, and that the last person in this position left abruptly, leaving them with piles of work. Or maybe the company isn't as organized as they'd like you to believe. Either way, you should know what you are walking into and manage your expectations.
Push to start in the standard two weeks so that you can give appropriate notification to your current boss. After all, wouldn't this new company want the same courtesy? Trying to force you to leave on bad terms with your current employer is a serious red flag.
2. The position has high turnover. Maybe you've noticed the same position at this company being posted on job boards several times over the past year. Maybe you've just heard whisperings. But if you suspect you're far from the first person offered this job in the past few months, ask yourself why that might be. Then question whether you can stick with it longer than the last person, and whether you even want to.
High turnover is often the sign of poor management and a deteriorating employee morale. Do you really want to try to be the change agent that tries to fix a bad situation? Maybe not.
3. The list of duties far exceeds what was on the job description. You came into the interview thinking this role had a certain set of duties, but during the interview you're finding the list growing longer and longer ... without the expected pay increase. This is a bit of the old "bait and switch," so don't fall for it.
Before you say yes to a job offer, make sure you do your homework and set an expectation of a higher salary to commensurate with the experience and responsibilities the company is requiring. If they refuse, walk away. You should never let someone devalue your worth.
4. They want to hire you on the spot. As much as you'd love to shorten the agonizing waiting period that follows the interview, you have to scratch your head when a hiring manager offers you the job at the end of a 20-minute interview. Were you the only person they interviewed? Did she decide she'd hire you before you even came in? Why is she so desperate to close the deal right now?
Tell her you'll think about the offer, then go home and do all the digging you can to figure out if there's something you should know about this company's desperation.
5. The interviewer is disorganized. This isn't always indicative of the workplace being bad for you, but pay attention to how the interviewer handles the meeting. Did she know your name or anything about your background? Does she ask appropriate questions that relate to the work you'd be doing?
If, during the interview, you can't get a sense of what your role would be, ask if you will have an opportunity to meet with the others in the department. There, you might get a better sense of what the job is all about, and then you can figure out if everyone is as scatterbrained as your interviewer.
If your instinct tells you to run, listen to it. You might desperately want out of your current work situation, but there's no benefit to running directly into another bad situation. If you leave the interview being less than enthusiastic about working for this company, you're probably better off continuing your search.
Study the following articles - apply & win
Click green to read the articles - In case the link has expired search the web using the title
- The ABCs of Interviewing
- How to Avoid Working for a Bad Boss
- Are You Blowing the Interview Before It Even Starts? Source: US News & World Report
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21 Reasons Why You Didn't Get the Job
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You aced it. Or at least you thought you did a stellar job during the job interview, but now that a month has come and gone, you're not so sure. You thought you would get at least a phone call a few days or even a week later regarding next steps, but now? Not so much. Insert crickets.
And now you have to face the music: You didn't get a shot at a final interview, let alone that coveted job offer.
What went down? Let's look at various scenarios:
1. You talked too much/too little.
2. You appeared nervous and lacked confidence.
3. Your soft skills weren't so sharp.
4. Your technical skills weren't up to par...
5. Or they were too on point and you were deemed overqualified.
6. The hiring manager felt threatened by your sparkling skills and spot-on experience.
7. You were too vague and didn't illustrate examples when asked behavioral-based questions.
8. Not a cultural fit with the team and organization.
9. Too much of a fit - maybe you appeared overconfident.
10. Your salary requirements were too high.
11. Your references bailed on you and provided not-so-pleasant insight.
12. Your thank-you note had errors.
13. You were too aggressive when following up.
14. You were late to the interview.
15. Or maybe not very polite to the receptionist.
16. It wasn't about you - it was about them, since they went with an internal candidate.
17. They closed the requisition*), downgraded it or upgraded it into something else. Or hiring has been frozen.
*) requisition = the state or condition of being needed or put into service
18. The hiring manager is out of town so all decisions are on hold regardless.
19. You didn't look the part - maybe you dressed a bit informal and the interviewers' read it as you're not taking the position seriously.
20. You threw your current/former employer under the bus.
21. It was simply not meant to be.
Essentially, there could be a plethora*) of reasons why you didn't get selected to move to the next round and get the job.*) plethora = a large or excessive amount of (something)
Quickly replay the interview in your mind; tweak accordingly next time. Trust the process, the reasons and not having all of the answers. Don't try to analyze too much, since it's easy to become stagnant in your own head instead of pounding the pavement. At this point, you can conduct a succinct**) self-awareness check to see if you can alter anything for the next interview.
*) tweak = adjust, modify, alter, change, adapt - **) = brief, compact, condensed, briefly and clearly expressed
Yes, it's deflating when you don't get a job you're yearning for, but every interview is an opportunity to learn and improve your approach. Maybe your experience was a stretch and didn't quite translate into the new role you're pursuing. As in not-so-relevant. Quickly scan the interview in your mind and tweak accordingly for the next one. For this example, next time you can connect the dots better with your skill set and strengths.
It's not you, it's them. In another instance, let's say you were polite, arrived on time, felt comfortable and confident with your answers and the dialogue and demonstrated required skills and experience for the position. Trust that you did your best and it wasn't meant to be.
Sure, you may be tempted to wonder what could have happened. The job requisition could have been filled internally, they could have selected another candidate who was a rehire or it could have been put on hold, to name a few. Countless scenarios occur behind the scenes; it's challenging for a job seeker to surmise*). Here's the good news - you don't have to surmise by spending too much time and energy thinking about it. It's not always about you and the process isn't very transparent. *) = suppose that something is true without having evidence to confirm it =
guess, conjecture, suspect, deduce, infer, conclude, theorize,speculate
Ever upward. You may be tempted to ask the recruiter for specific feedback, but chances are they won't provide it. For starters, it could put the company at risk since they probably don't provide feedback to every single candidate and because they should treat all candidates equally. Plus, it opens a can of worms - they need to focus on candidates they're going to hire, not the ones they're turning down.
And in the spirit of that mind set, you should also focus forward. Decide what you're going to improve, such as providing a range for a salary requirement instead of a specific number, and pour your attention into prospective employers. Propel forward with your search and gain momentum with each and every interview, self-assess and then forge ahead. Ever upward!
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Source: U.S. News and World Report
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Careers That Could Pay over $30 an Hour
That's over 60K
Easy formula: Each $10/h equals about 20K/year
Tired of living paycheck to paycheck? You may want to take a look at these professions that could give your bank account a little more padding.
If your savings account looks like it needs some inflating, it may be time to find a higher-paying career that could help give your financial situation a boost.
Luckily, there are plenty of great careers in a variety of fields that pay an average of $30 or more an hour. But if you think that $30 an hour doesn't sound very impressive, in annual salary terms it translates to more than $60K - not too shabby after all.*
The reason for the good pay? High demand for the highly skilled, says Mike Palumbo, founder of The Palumbo Company, a professional recruiting and consulting company in Fairhope, Ala. "These careers all have training in a specific skill. It's not just any skill, but a skill that is in demand. Until we have computers that can take blood from your arm, hammer a nail, or consult with you on a complex tax issue, these positions will be in demand for the foreseeable future," he says.
Keep reading to learn more about which professions could add to your bank account, and how you might prepare to pursue them.
Career #1: Registered Nurse Average Hourly Wage: $32.66
Average Annual Salary: $67,930
Do you enjoy being the caregiver to your aging grandmother, or comforting your friend suffering from a serious illness? Perhaps you have a calling as a registered nurse. You could earn a great salary - in addition to the reward of helping others.
Your responsibilities as a registered nurse could include setting up plans for patient care, performing diagnostic tests, and teaching patients and their families how to manage their illnesses or injuries, according to the U.S. Department of Labor.
Why It Pays Well: "It's a tough job," says Palumbo. "A hospital is open 24 hours a day, 365 days a year, so a registered nurse is required to work long hours under very stressful life-and-death situations."
NEXT STEP: Click to Find the Right Nursing Program.
Education Options: There are different paths to pursuing a career as a registered nurse. These include earning an associate's degree in nursing, a diploma from an approved nursing program, or a bachelor's of science in nursing, according to the Department of Labor. The Department also says that registered nurses must get licensed by passing a national exam.
Career #2: Accountant Average Hourly Wage: $34.15
Average Annual Salary: $71,040
Money is probably quite an important element in your daily life, and chances are you want more of it. Why not consider pursuing a career as an accountant, where you can deal with money all the time - while you could earn a good living for yourself?
Besides organizing and maintaining financial records, your responsibilities as an accountant could include helping businesses and individuals find ways to reduce costs and enhance revenue. You could also inspect accounting systems for efficiency, according to the U.S. Department of Labor.
Why It Pays Well: "Accountants get paid well because the need is so great," Palumbo says. "Most jobs are created by small businesses and with the complex nature of taxes, insurance, regulations, and the future health care expenses, the need for accountants will continue to grow."
NEXT STEP: Click to Find the Right Accounting Program.
Education Options: To prepare to pursue a career as an accountant, you will need at least a bachelor's degree in accounting or related field, the Department of Labor says. It adds that a certification within a specific field of accounting could enhance job prospects.
Career #3: Market Research AnalystAverage Hourly Wage: $32.39
Average Annual Salary: $67,380
You're intrigued by the difference between brand-name and generic products, and you constantly ask your friends where they bought this or that. That curiosity could be a great characteristic of a market research analyst - and one that could earn you good pay at that.
As a market research analyst, you might help a company understand what products people want, who will buy them, and at what price, according to the U.S. Department of Labor. The Department also says that you could be gathering data on consumer demographics, preferences, and buying habits.
Why It Pays Well: "The world is constantly changing, which is one of the big reasons why market research analysts get paid so well," said Palumbo. "Someone has to keep up with the changes in technology and trends on a daily basis."
NEXT STEP: Click to Find the Right Marketing Program.
Education Options: The Department of Labor says market research analysts need at least a bachelor's degree in market research or a related field. Many of these professionals pursue a degree in a field such as statistics, math, or computer science. Others may have a background in business administration, communications, or one of the social sciences, the Department says. Top research positions often require a master's degree.
Career #4: Diagnostic Medical Sonographer Average Hourly Wage: $31.90
Average Annual Salary: $66,360
Seeing your first child's image on an ultrasound photo was life-changing. And if you can envision being a part of this moment in other people's lives - while potentially making a good living - you should consider a career as a diagnostic medical sonographer.
Your day-to-day duties as a diagnostic sonographer might be comprised of preparing patients for procedures, maintaining imaging equipment, checking those images for quality, and recording findings, according to the U.S. Department of Labor.
Why It Pays Well: "Diagnostic medical sonographers get paid well because of the training and skills it takes to operate the technology," Palumbo says. "When you mix technology with medicine, it equals a great career position."
NEXT STEP: Click to Find the Right Diagnostic Medical Sonography Program.
Education Options: The Department of Labor says that if you're interested in a career as a diagnostic medical sonographer, you will need formal education, such as an associate's or postsecondary certificate. You might also need to pursue professional certification, as the Department says many employers require it.
Career #5: Construction Manager Average Hourly Wage: $43.73
Average Annual Salary: $90,960
You and your younger brother used to erect elaborate Lego structures day after day. Of course, being the oldest, you would be the one in charge and "lead the project". Why not put those skills of leadership and your love of building to good use in a career as a construction manager? The best part is, you could potentially see a great pay check as well.
As a construction manager, you might prepare and negotiate cost estimates and budgets; report on work progress and budget matters to clients; and select, hire, and instruct laborers and subcontractors, says the U.S. Department of Labor.
Why It Pays Well: "Construction managers get paid well because of the need to build construction projects on-time and under budget," Palumbo says. "Until the day where robots can build a building, bridge, or tunnel, we will need people to build projects. The construction manager will be needed to manage those projects."
NEXT STEP: Click to Find the Right Engineering Program.
Education Options: An associate's degree with work experience may be enough for some positions, but it is becoming more important for construction managers to earn a bachelor's degree in construction science, construction management, architecture, or engineering, says the Department of Labor.
Career #6: Computer ProgrammerAverage Hourly Wage: $37.63
Average Annual Salary: $78,260
When your family and friends run into computer problems, you are the first one they call. You could put those skills to use formally and pursue a career as a computer programmer. Besides, wouldn't it be nice to be compensated for your services for a change?
As a computer programmer, you might write programs in a variety of computer languages, debug programs, and build and use computer-assisted software engineering tools, according to the U.S. Department of Labor.
Why It Pays Well: "Someone has to teach the computer what to do," says Palumbo. He explains that while computers are getting easier to operate, most people still don't understand how computers work. Hence, computer programmers get paid well because they are in demand, Palumbo says.
NEXT STEP: Click to Find the Right Computer Science Program.
Education Options: Many computer programmers earn a bachelor's degree, but some businesses do hire those with an associate's degree, according to the Department of Labor. Most programmers pursue a degree in computer science or a related subject, the Department says.
* Average hourly and annual salaries for all careers from the U.S. Department of Labor Occupational Employment and Wages data, May 2012.
Source: Glassdoor
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The Most and Least Trusted Occupations
Public Esteem for Military, Teachers & Science Fields Still High
TABLE OF CONTENTS
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- Strong Consensus About Military
- Middling Assessments of Clergy’s Contribution
- Journalists Getting Less Respect, Especially Among Women
- About the survey
To connect to the original article Click green: according to a recent survey
Americans continue to hold the military in high regard, with more than three-quarters of U.S. adults (78%) saying that members of the armed services contribute “a lot” to society’s well-being. That’s a modest decline from 84% four years ago, the last time the Pew Research Center asked the public to rate various professions. But the military still tops the list of 10 occupational groups, followed closely by teachers, medical doctors, scientists and engineers. A solid majority of the public says each of those occupations contributes a lot to society.By contrast, just 37% of Americans surveyed think the clergy make a big contribution to society, about the same as in 2009. Regular churchgoers tend to be more positive about ministers, priests and other clergy members. But even among adults who say they attend religious services at least once a week, only about half (52%) rate clergy in general as contributing “a lot” to society, while 29% say the clergy make “some” contribution, and 11% say the clergy contribute “not very much” or “nothing at all.”
While there have been modest declines in public appreciation for several occupations, the order of the ratings is roughly the same as it was in 2009. Among the 10 occupations the survey asked respondents to rate, lawyers are at the bottom of the list. About one-in-five Americans (18%) say lawyers contribute a lot to society, while 43% say they make some contribution; fully a third (34%) say lawyers contribute not very much or nothing at all.
Compared with the ratings four years ago, journalists have dropped the most in public esteem. The share of the public saying that journalists contribute a lot to society is down 10 percentage points, from 38% in 2009 to 28% in 2013. The drop is particularly pronounced among women (down 17 points). About as many U.S. adults now say journalists contribute “not very much” or “nothing at all” to society (27%) as say they contribute a lot (28%).
These are some of the findings from a survey by the Pew Research Center’s Forum on Religion & Public Life conducted March 21 to April 8, 2013, among a representative sample of 4,006 adults nationwide. The margin of error for the survey is plus or minus 2.1 percentage points.
On balance, public perceptions of the military and teachers are overwhelmingly positive. Fully 78% of adults believe that members of the military contribute a lot to the well-being of society, and 72% say the same about teachers, while about one-in-ten or fewer say those occupations contribute not very much or nothing at all to society.
Roughly six-in-ten or more adults also say that medical doctors (66%), scientists (65%) and engineers (63%) contribute a lot to society. As with the military and teachers, negative perceptions of these occupations are comparatively rare.
Ratings of other groups are more mixed. Clergy are in the middle of the occupations considered, with 37% saying they contribute a lot to society, followed by artists (30%), journalists (28%), business executives (24%) and lawyers (18%). Majorities of the public say that all these occupations make at least “some” contribution to society’s well-being. But the balance of perceptions becomes more negative toward the bottom of the list, with a quarter or more of respondents expressing the view that journalists (27%), business executives (28%) and lawyers (34%) contribute not very much or nothing at all to society.
The ratings of these occupational groups are largely in keeping with what other surveys have found about public confidence in the leaders of various institutions. The 2012 General Social Survey (GSS), for example, asked a nationally representative sample of adults to rate their confidence in the people running a variety of institutions. More people expressed confidence in the military than in any other institution considered (55% have a great deal of confidence in military leaders), followed by leaders of the scientific community and medicine. Ratings of religious leaders were in the middle of institutions considered; a fifth of adults said they had a great deal of confidence in leaders of “organized religion” in 2012. Far fewer expressed a great deal of confidence in leaders of “television” (10%) and “the press” (9%).
Strong Consensus About Military
On balance, the military is viewed positively by all major social and demographic groups. Men and women are about equally likely to see the military as contributing a lot to society. And there are no significant differences in views on the military’s contribution to society among adults younger and older than age 50 or among those with differing levels of formal schooling.
Whites are somewhat more likely than either blacks or Hispanics to say members of the military contribute a lot to society. And Republicans and independents who lean toward the Republican Party are somewhat more likely than Democrats and independents who lean toward the Democratic Party to see the military as contributing a lot to society.
Perceptions of Science, Engineering and Physicians
Public views of medical doctors, scientists and engineers are largely positive, with roughly six-in-ten to two-thirds of U.S. adults saying each group contributes a lot to society.
Younger adults (ages 18 to 49) are somewhat more upbeat than older Americans in their assessment of these three occupations. The difference between age groups is particularly pronounced in views of engineers; 68% of 18- to 49-year-olds say engineers contribute a lot to society, compared with 56% of those 50 and older.
Americans with a college degree also are more inclined than those with less schooling to say that doctors, scientists and engineers contribute a lot to society’s well-being.
Men and women tend to have similar views on these questions. Men are somewhat more inclined than women to see engineers as contributing a lot to society (65% among men versus 60% among women), but there are no gender differences when it comes to the perceived contributions of either medical doctors or scientists.
While there are no differences in views of medical doctors by partisanship or political ideology, there are political differences in views of scientists and engineers. Democrats and Democratic-leaning independents are somewhat more inclined than their Republican counterparts to say that scientists contribute a lot to society (69% versus 64%). Political conservatives are less inclined than either moderates or liberals to say that scientists or engineers contribute a lot to society.
There are few differences between religious groups in their assessments of medical doctors’ contribution to society, but there are more differences when it comes to the contributions of scientists and engineers. White mainline Protestants, white Catholics and the religiously unaffiliated tend to be more positive about the contributions of scientists and engineers than are white evangelical Protestants, black Protestants and Hispanic Catholics.
Middling Assessments of Clergy’s ContributionThe perceived contribution of the clergy varies widely across religious groups. White evangelical Protestants are especially positive in their assessments; roughly half (52%) say clergy contribute a lot to society. Hispanic Catholics are less glowing; about three-in-ten (28%) say that clergy contribute a lot to society.
As expected, U.S. adults who have no religious affiliation are less likely to see the clergy as contributing to society. A fifth of the unaffiliated say clergy contribute a lot, while 39% say clergy make some contribution and 31% of the unaffiliated say clergy contribute not very much or nothing at all to society.
Those who attend worship services more frequently are more positive about the clergy. Among adults who attend services at least weekly, about half (52%) say the clergy contribute a lot to the well-being of society. This compares with about three-in-ten (29%) among those who attend services less often.
This pattern holds among most religious groups that are sufficiently large to be analyzed separately. White evangelical Protestants, white mainline Protestants, white (non-Hispanic) Catholics and black Protestants who attend services weekly express more positive views of the clergy than do members of each religious group who attend services less often. The exception is Hispanic Catholics; there is little difference between the views of Hispanic Catholics who attend church weekly and those who attend less often. In addition, Hispanic Catholics are less likely than other major U.S. religious groups to express an opinion about the contribution of clergy to society.
Journalists Getting Less Respect, Especially Among Women
The decline in public views about journalists’ contribution to society since 2009 is more pronounced among women than men. Roughly three-in-ten women (29%) say journalists contribute a lot to society’s well-being, down 17 percentage points from 46% in 2009. Men’s views on this are about the same today as they were in 2009.
The decline in the perceived contribution of journalists cuts across partisan leanings, age and education level. Democrats and Democratic-leaning independents as well as Republicans and Republican-leaning independents all are less likely to say journalists contribute a lot to society’s well-being today (down 8 points among Republicans/leaning Republicans and 10 points among Democrats/leaning Democrats).
About the survey
This report is based on telephone interviews conducted March 21-April 8, 2013, among a national sample of 4,006 adults, 18 years of age or older, living in all 50 U.S. states and the District of Columbia (2,002 respondents were interviewed on a landline telephone, and 2,004 were interviewed on a cell phone). Interviews were completed in English and Spanish by live, professionally trained interviewing staff under the direction of Princeton Survey Research Associates International.
A combination of landline and cell random digit dial (RDD) samples were used to reach a representative sample of all adults in the United States who have access to either a landline or cell phone. Both samples were disproportionately stratified to increase the incidence of African-American and Hispanic respondents. Within each stratum, phone numbers were drawn with equal probabilities. The landline samples were list-assisted and drawn from active blocks containing three or more residential listings, while the cell samples were not list-assisted but were drawn through a systematic sampling from dedicated wireless 100-blocks and shared service 100-blocks with no directory-listed landline numbers. Both the landline and cell RDD samples were disproportionately stratified by county based on estimated incidences of African-American and Hispanic respondents.
Several stages of statistical adjustment or weighting are used to account for the complex nature of the sample design. The weights account for numerous factors, including (1) the different, disproportionate probabilities of selection in each stratum,, (2) the overlap of the landline and cell RDD sample frames, and (3) differential non-response associated with sample demographics.
Statistical results are weighted to correct known demographic discrepancies, including disproportionate stratification of the sample. The table shows the unweighted sample sizes and the error attributable to sampling that would be expected at the 95% level of confidence for different groups in the survey.
The survey’s margin of error is the largest 95% confidence interval for any estimated proportion based on the total sample – the one around 50%. For example, the margin of error for the entire sample is ±2.1 percentage points. This means that in 95 out of every 100 samples drawn using the same methodology, estimated proportions based on the entire sample will be no more than 2.1 percentage points away from their true values in the population. Sampling errors and statistical tests of significance used in this report take into account the effect of weighting. In addition to sampling error, one should bear in mind that question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of opinion polls.
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Source: Pew Research Center
ABOUT PEW RESEARCH Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping America and the world. It conducts public opinion polling, demographic research, media content analysis and other empirical social science research. Pew Research does not take policy positions. It is a subsidiary of click: The Pew Charitable Trusts
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America’s Worst Companies to Work For
Date: July 2013
For the second year in a row, 24/7 Wall St. has identified America’s worst companies to work for. While company management can improve employee satisfaction, most of the companies on our list continue to make workers miserable.
In order to identify America’s worst companies to work for, 24/7 Wall St. examined employee reviews at jobs and career community site Glassdoor. Based on the reviews, Glassdoor scores companies on a scale of one to five with an average score of 3.2 for the over 250,000 companies measured. 24/7 Wall St. identified the nine publicly traded companies that received scores of 2.5 or lower.
Certain industries appear more likely to have lower employee satisfaction than others. Four of the companies on this list — Dillard’s Inc. (NYSE: DDS), Sears Holdings Corp. (NASDAQ: SHLD), Dollar General Corp. (NYSE: DG) and RadioShack Corp. (NYSE: RSH) — are in retail. The majority of the others provide services that require installation and repair. These include companies like home security system provider The ADT Corporation (NYSE: ADT), transaction technology company NCR Corp. (NYSE: NCR), and satellite television provider DISH Network Corp. (NASDAQ: DISH).
[More from 24/7 Wall St.: America’s Most Content (and Miserable) Cities]
In an interview with 24/7 Wall St., Glassdoor spokesperson Samantha Zupan noted that some of the companies are not a surprise. ”When I looked at Radioshack reviews there is a commonality within the reviews where people are talking about customer service and [employees] have a tough time dealing with the customers.”
On the other hand, Zupan pointed out that other companies in the retail sector, like Costco and Nordstom’s, “get rated very highly by their employees.” There are certain things that employers can do to make a job better for employees. Zupan notes that training, “knowing how to deal with different customers and different issues,” and higher compensation are both important to employees.
Not surprisingly, employees most often complained about low wages and poor benefits. Many noted that they were paid even less than the already-low industry average for their job. Benefits, if the company provided any, were either difficult to afford or inadequate.
While some employees at all levels were unhappy, complaints at these companies were disproportionately from sales representatives, customer service agents and technicians. These were generally lower-paid, front-line workers dealing directly with customers.
Issues with middle management were universal among the employees of these companies, but the types of complaints varied. Depending on the company, employees felt they were micromanaged, treated unfairly or like children, or asked to meet extreme demands.
Several of the companies on this list have failed to find a clear path to boost their sales and earnings.RadioShack has attempted to revitalize its brand multiple times by focusing on different strategies and metrics. Employees have seen the electronics retailer change its priorities so often they view these moves skeptically. Other companies have been stubborn and have not pursued any major changes despite overwhelming evidence that they should. Compared to other retailers, Sears Holdings invests little in its stores, a fact that bothers many of its employees.
Employees at poorly-rated companies tend to have low opinions of senior management. The average CEO rating across the companies measured by Glassdoor is 69%, according to Zupan. The majority of the worst-reviewed companies had CEO approval ratings of 40% or less. Only 23% of Dillard’s employees approved of CEO Bill Dillards II’s management. Sears Holdings CEO Eddie Lampert earned 19% approval.
Another attribute shared by many of the companies on this list is the perception that they have been overwhelmed by larger, better-equipped competitors. RadioShack falls into that category. It cannot effectively compete with Amazon.com, or even Best Buy. This is also true for Sears Holdings, which owns Sears and Kmart and competes with Walmart and Target. Dish, which competes with AT&T and large cable companies, faces a similar problem.
[More from 24/7 Wall St.: Countries Spending the Most on Health Care]
In order to identify America’s worst companies to work for, 24/7 Wall St. examined employee reviews at Glassdoor To be considered, companies had to have a minimum of 300 reviews. Of the more than 300 companies with more than 300 comments, 24/7 Wall St. identified the nine publicly traded companies that received the worst scores — 2.5 or lower. This year, Sears Holdings and subsidiary Kmart made the cut independently — both scores are included.
These are America’s worst companies to work for.
1. DISH
> Rating: 2.3
> Number of reviews: 831
> CEO approval rating: 40% (Joseph Clayton)
> Employees: 35,000
REUTERS/Rick Wilking
DISH has the unfortunate distinction of topping the list for the second year in a row. DISH shares many of the hallmarks of companies despised by their workers. With 14 million subscribers in a market with a great deal of competition, the number of customer complaints is large. Consumer surveys demonstrate the magnitude of the problem. DISH ranked behind AT&T’s U-verse, direct competitor DirecTV, and Verizon Fios in the most recent American Customer Satisfaction Index.
DISH’s management is regarded as so inconsiderate to employees, customers, and shareholders that Businessweek recently called it “The Meanest Company In America” and blamed long-time chief Charlie Ergen as the primary cause.
In reviews at Glassdoor, employees regularly complained about very poor pay despite their difficult work in unpleasant conditions. By far, the most common criticisms were the low salaries relative to the type of work and very poor benefits. One manager on Glassdoor said that he had never seen employees treated so poorly. “The benefits are pitiful and the salaries are not current with industry — I should know as I work in a [department] that sees the salaries.”
2. Express Scripts
> Rating: 2.3
> Number of reviews: 312
> CEO approval rating: 36% (George Paz)
> Employees: 30,215
AP Photo/Jeff Roberson
Express Scripts Holding Company (NASDAQ: ESRX) is one of America’s largest managers of prescription drugs services, with tens of millions of customers and thousands of clients. And after buying Medco Health Solutions last year, the company fills over 1.4 billion prescriptions per year, as of 2012. Express Scripts began a major workforce consolidation that included layoffs after it closed the deal in early 2012. Customer relations were roiled when Walgreen stopped accepting Express Scripts’ prescription plan.
In the most recent JD Power rating of online pharmacies, Express Scripts ranked fifth behind Kaiser Permanente, Aetna Rx, Caremark, and Cigna Home Delivery, with the Medco branded service even further down the list. Both Express Scripts and the Medco brand showed particular weaknesses in prescription delivery and customer service.
Like consumers, employees were also dissatisfied with the company. They felt pressured to reach key metrics and often complained that reaching these numbers was more important to the business than adequate customer service, or employee well-being. As a result, many employees felt overworked, and a too-heavy workload was the most common complaint. One aggrieved employee wrote that the company gives “the appearance of a work/life balance … but the truth is everyone is overworked.”
3. Dillard’s
> Rating: 2.3
> Number of reviews: 560
> CEO approval rating: 23% (Bill Dillard II)
> Employees: 27,740
Fan of Retail/Flickr
Dillard’s Department Stores is run and controlled by the Dillard family. Dillard’s has about 300 stores in 29 states. It operates in a highly competitive environment, which includes Kohl’s, Macy’s and J.C. Penney. In the last quarter, Dillard’s sales did not grow at all. Dillard’s is not only competing with larger retailers but also with Amazon.com, which has already driven several companies out of existence. In the meantime, Mike, William, and Alex Dillard receive large salaries — a total of $54 million over the course of the last three years.
Many Dillard’s employees griped about their hours and pay. They also complained about sales-per-hour targets. These targets, employees said, were unreasonable and led to intense competition among co-workers. “Lower level employees are faceless numbers to many members of upper management and are treated like pawns in a chess game,” one commenter wrote.
4. Dollar General
> Rating: 2.4
> Number of reviews: 375
> CEO approval rating: 43% (Rick Dreiling)
> Employees: 90,500
Dollar General, a discount retailer, calls itself the nation’s “largest small box retailer” with over 10,000 stores. However, that does not keep it safe from competition from huge big box companies, particularly Walmart and Target. Like other mid-sized retailers, Dollar General has struggled to prop up its bottom line, with net income virtually flat in its last reported quarter. In the latest American Customer Satisfaction Index, Dollar General ranked behind Nordstrom, Kohl’s, and even the struggling J.C. Penney.
Workers at Dollar General regularly complained they were unable to work the hours they desired, while many store managers were overworked. Yet, as one former worker noted, many employees “are expected to have full availability, even out of season, meaning NO second jobs.”
In addition to complaints about the limited hours, many reviewers mentioned the problem of theft. Some workers stated that employees steal, while others highlighted customer theft as a major concern. One sales associate noted that stores are targeted for theft, but “Dollar General believes its ‘shrink’ is caused mostly by employees.”
5. RadioShack
> Rating: 2.4
> Number of reviews: 868
> CEO approval rating: 38% (Joseph Magnacca)
> Employees: 34,500
AP/Lisa Poole
In yet another turnaround attempt by ancient consumer electronics retailer RadioShack, new CEO Joe Magnacca said he wants to revamp stores and change the merchandising strategy. It is hard to work for a company that is generally considered to be without prospects. RadioShack has just over 4,700 stores. The company also sponsors the RadioShack Leopard bicycle team, which has recently participated in the Tour de France. That sponsorship money might have gone to low-paid RadioShack retail employees.
“Radioshack constantly changes their focus because they are a struggling company,” one commenter wrote. “Basically you’ll be fighting real hard for one sales aspect and get told a month later that it doesn’t matter anymore and that everyone is a failure.” Recent reviewers have pointed out that management is placing intense pressure on employees to sell mobile phones. An assistant manager noted that this results in “having to foist services onto customers that realistically would not benefit from them.”
The company’s middle- and upper-level management was a target for many of the complaints. Reviewers noted that district and regional managers come up with sales quotas that seem arbitrary. Another frequent complaint was that managers play favorites among associates and store managers. Comments about Radio Shack also include complaints about pay below competitors, and strenuous and irregular hours.
6. ADT Security Co.
> Rating: 2.4
> Number of reviews: 309
> CEO approval rating: 55% (Naren Gursahaney)
> Employees: 16,000
S. Diddy/Flickr
ADT is a security company for both residential and business properties with 6.4 million customers. Many of these customers are homeowners who bought an ADT system for as little as $35.99 a month. Much of ADT’s initial contact with customers is handled through its dealers who install ADT security systems. ADT currently has roughly 400. Even with dealers, the burden on the system is considerable. ADT claims it answers 19 million alarm signals a year.
[More from 24/7 Wall St.: The Most Dangerous Cities in America]
Employees at ADT regularly complained about weak, disorganized management that treated them poorly and micromanaged. Several reviewers complained about the quality of the sales training, noting that the company appeared to expect new employees to figure things out on their own.
Based on the reviews, ADT appears to focus on getting new clients at the expense of both employees and existing customers, with one representative noting that the decision makers “could care less about customers after sale.”
7. Sears Holdings (Sears/KMart)
> Rating: 2.5
> Number of reviews: 583
> CEO approval rating: 19% (Eddie Lampert)
> Employees: 274,000
REUTERS/Larry Downing
Sears Holdings, which owns both Sears and Kmart, has been effectively run by hedge fund manager Eddie Lampert since it was created by a merger in 2005. Over the intervening period, Lampert has gone through several CEOs and made a name for himself as the greatest bumbler in the U.S. retail industry. Impatient after years of failure, he took the CEO job himself.
Lampert has made a great deal of his decision to use technology as a way to track customer needs as well as his closing of stores and brands. Sears Holdings ranked next to last in customer service in ACSI’s retail category, ahead of only Walmart. Kmart has been the weaker of the company’s two divisions based on same-store sales, although each is in a state of hopeless decline.
Employees at Sears and Kmart felt just as poorly about the company’s performance as Wall Street. They noted that the chains have lost their identity and suffer from morale issues. Other common concerns, especially at Sears stores, were the limited availability of work hours and constant pressure to convince customers to open new credit cards. Employees also complained about wages. One employee noted that while the company was updating its technology, raises were extremely rare.
Many employees believed the company would be better off investing more resources in the company’s locations. A recent report by Businessweek highlighted that Sears and Kmart fell well short of their peers in investing in their stores.
8. NCR
> Rating: 2.5
> Number of reviews: 385
> CEO approval rating: 39% (Bill Nuti)
> Employees: 25,700
APTRA Interactive Teller from NCR Corp (Photo: Business Wire)
NCR makes self-checkout machines, ATMs, and airport self-service kiosks. NCR claims that its technologies are used in 300 million transactions a day that facilitate everyday transactions and “make your life easier.” Many employees are involved with the sales, installation and repair of relatively low-level tech systems for cinemas, bank deposit machines, retail restaurant terminals, and similar products for the travel, telecom, and department store industries.
Employees noted that much of the technology was out of date, and that the company still required them to carry around cumbersome manuals. Others complained about poor benefits. One of the most common problems was that the company often demanded a full-time commitment. One former data processor noted an “expectation that [employees] are available to work 24/7.”
9. Fiserv
> Rating: 2.5
> Number of reviews: 440
> CEO approval rating: 40% (Jeffery Yabuki)
> Employees: 20,000
M.O. Stevens via Wikipedia
Fiserv provides information management and e-commerce products to the financial services industry. Fiserv’s primary clients are banks, credit unions, and brokers. Fiserv has completed more than 140 mergers and acquisition transactions since its was founded in 1984, according to Morningstar. It is not so much a company as a collection of assets. This method of building a corporation is often accompanied by a certain number of layoffs and paranoia about job security.
A number of commenters noted that the company provided minimal training for employees and that senior staff was unresponsive to employee concerns on the job. The company is comprised of many different acquisitions, reviewers noted, which has led to factions feuding for resources and attention, which in turn has lowered morale. “Don’t mess with the old school ‘clique’ or you can screw up advancement opportunities,” an employee wrote.
A common theme among many Glassdoor reviews also seems to be that the company is needlessly stingy. Low pay and paltry raises were frequent gripes, and several employees also expressed frustration about less-than-stellar health benefits. Failing to remember the last time they saw a doctor, one reviewer said, “The deductible is so high that they might as well not ever offer it.”
Source: 24/7 Wall Street
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Job Market Faces New Problem,
Hitting One Unlucky Group Really Hard Date: August 2013
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It's not as if the job market is blazing hot for anyone lately, but new data shows that one key demographic group that has historically been a leader, is now badly falling behind.
According to Nick Colas, the chief market strategist at ConvergEx Group, recent graduates under 25 years-old are in a particularly bad spot right now.
"It's usually college grads that do well," Colas says in the attached video."They get the first time jobs, they're pretty cheap to employ, and generally have pretty high job satisfaction."
But, he says since the recession new government data shows that this unlucky group stands out in three key ways like never before.
- Overqualified: 52% of recent grads are in jobs where a college degree is not required. Colas calls this the "most startling" new problem, and says it clearly leads to high job dissatisfaction, which itself leads to other problems.
- Job Hunting at Work: Almost one in three recent grads admit to looking for a new job while on the clock at their current job. "While they're at work doing job A, they're looking for job B," he says.
- Huge Pay Cuts: Despite ever increasing average tuition costs for a four-year degree ($63,000 public, $130,000 private), the pay-out when the cap and gown comes off is actually going down. In fact, Colas says recent grads now earn about $3,200 less today than they did in 2000. "It's much less, up to 30% less in many cases," he says.
"Older workers are actually the big growth area," Colas says, and "younger workers are the ones that are really taking it on the chin." He calls this structural employment problem ''a big change" from prior recoveries and says the findings raise an important question.
"One is, what does college prepare you to do?" he says. "That's a big problem because colleges charge you a lot of money, but you don't necessarily get a big pay off at the end of it."
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Source: click: Matt Nesto | Breakout
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10 Things Co-Workers Won’t Tell You
Even the most well-intentioned colleagues
can rub you the wrong way
1. “I’m the most stressful part of your day.”
When she first started her job as a customer service representative at a manufacturing company, then-23-year-old Jennifer Matlack liked her co-worker, a fellow customer service rep. “In the beginning, she was lovely — friendly and funny,” she says. “We laughed a lot.” But after a few weeks, the co-worker began rolling her eyes when Matlack spoke, ignoring her and making snide comments — and it got even worse. “One day she crumpled up a piece of paper and threw it at my head,” Matlack says. “I didn’t even know what to do; I was in shock.” The situation became so stressful to Matlack that she says she “spent a lot of time crying in the bathroom stall.”
Fully 83% of American workers say they are stressed out by at least one aspect of their jobs, up 10 percentage points from last year — with more than one in 10 citing annoying co-workers as the biggest source of stress, according to a study conducted by Harris Interactive on behalf of Everest College. Those colleagues who talk too much, share too much personal information, gossip often or blame others for their failures are among the most stress-inducing, says career coach Marc Dorio. Despite all the agony these individuals inflict, their exasperated office mates rarely ask them to change, experts say — and that may be an expensive mistake: Workers who report high levels of stress spend nearly 50% more on health care each year than their more-relaxed peers, according to a study published in the Journal of Occupational and Environmental Medicine.
2. “It’s my fault you can’t squeeze into your skinny jeans anymore.”
Cupcakes for your co-worker’s birthday, cookies to celebrate a coming vacation, a crumb cake “just because” — all these thoughtful gestures may in fact be fueling resentment among co-workers, especially those trying to slim down, says career coach David Couper. More than 40% of workers say they have gained weight at since starting their current jobs; of those, 59% gained more than 10 pounds and 30% gained more than 20 pounds. A full 17% of people cite “workplace celebrations” like birthdays or potlucks as major contributors to this weight gain, according to a 2013 study by CareerBuilder.com.
All that extra snacking, of course, can lead to serious health problems and higher medical costs. The average overweight person will rack up $266 more in medical costs per year than a normal-weight person, according to a study published in 2011 in the Obesity Reviews journal. The average obese person’s medical costs were an extra $1,723.
3. “I’ll bully you.”
More than one in three people has been a victim of workplace bullying — which can range from verbal abuse to intimidation to sabotage — according to a survey conducted in 2010 by the Workplace Bullying Institute, a nonprofit. While much of this bullying is deliberate, sometimes such harassment is inadvertent. For example, someone may consider the teasing of a colleague good-natured, while it is actually making the colleague uncomfortable — not that you’d necessarily know it, says career coach David Couper. Just like at the playground, “people are scared of the consequences of calling a bully out.”
If it gets bad enough, it may cost the company that persecuted worker. More than 40% of women and 36% of men who have been the victim of bullying said they left their jobs because of it, a 2010 study by the Workplace Bullying Institute found. And that may be the best possible outcome. “It is very disruptive to one’s health,” says Gary Namie, who has studied the impact of workplace bullying extensively and co-wrote the book “The Bully-Free Workplace.” Health implications range from anxiety (one of the most common) and stress to panic attacks and depression, he says, and treating these can be costly.
4. “I’m sleeping with the boss.”
Despite the warnings about office romances, experts say they are still fairly common.
Nearly four in 10 workers say they have dated a colleague at some point in their career; of those, 29% say they have dated someone higher ranking than they were and 16% say they have dated their boss, according to a 2013 survey of more than 4,000 workers by CareerBuilder.com.
In a separate 2010 study by the Center for Work-Life Policy (now called the Center for Talent Innovation), a nonprofit research organization, more than one-third of executive women said they know a colleague who’s had an affair with a boss (and 15% of women at the director level or higher admitted to having had such an affair).
Most employees in the CareerBuilder survey said they were open about their office romances, and some 30% said they ended up married. But dating the boss in particular can have consequences. “You could run the risk of being transferred or becoming the subject of company gossip: Did you really earn that raise or promotion?” says career coach Nicole Williams, author of “Girl On Top: Your Guide to Turning Dating Rules Into Career Success.” And at some companies, dating between a boss and a “direct report” is actually against company rules and can get you disciplined or fired.
5. “I hate you because you make more than me.”
Workers who learn that their peers in similar jobs get paid more than them report significantly lower job satisfaction and are more likely to say they are looking for a job, according to a study published by the National Bureau of Economic Research in 2010. What’s more, lower-paid workers can come to personally dislike their higher-paid counterparts, “People get really resentful when they find something like this out,” says Couper. “Sometimes they feel like this even if they just sense that someone is getting paid more or receives a bonus or bigger pay raise.”
However, 15% of workers say they would share their salary information with a co-worker, according to a 2010 Glassdoor.com survey. “The millennial generation is more open about salaries than older generations,” Couper reveals. Furthermore, employees in the western U.S. are twice as likely as employees in the South to share salary information with co-workers at the same level, and those that make more money are more apt to discuss the payday details, according to the survey.
6. “I trash you behind your back.”
You’d probably prefer no one ever mentioned your alcohol-fueled dance-a-thon at the holiday party or the botched presentation in front of your boss’ boss. You’re probably out of luck. Office gossip is “very prevalent” and spreads even quicker these days, thanks to IM and email, says Bettina Seidman, president of career coaching firm Seidbet Associates. “Workplace gossip is common at all levels of the organizational hierarchy,” write Tanushree Mitra and Eric Gilbert in their 2012 study about office gossip, and negative gossip happens nearly three times as frequently as positive gossip. In offices without a consistent method of communicating news (like regular staff meetings), some 28% of employees rely on gossip as their first source for information, according to a study by office supply manufacturer Steelcase. Worst of all, any untruths your co-workers might be spreading about you will affect how others in the office view you both personally and professionally, says Seidman.
7. “I’ll wreck your marriage.”
Actual office romances aside, research finds that simply working with a lot of people of the opposite sex can increase the probability of divorce. A study from the University of Colorado, Boulder found that those who work with a larger proportion of workers of the opposite sex are more likely to get divorced than those who work mostly with their own sex. “With the economy like this, people are spending lots of time with their co-workers,” says Williams. “It creates a false sense of intimacy that ends up making you more attracted to someone in the workplace.”
8. “My nasty attitude will rub off on you …”
Whether an employee is constantly whining about the boss or the job, or just plain sullen most of the day, that person’s bad attitude is likely to rub off on their co-workers, several studies show. In fact, a 2006 study that looked at “negative groups” in the workplace — defined as groups having a member who persistently withheld effort, expressed negative affect or violated key interpersonal norms like reciprocating major favors — found that the negativity leads to poor performance and an unhappy team. “Negativity can spread like a virus,” says Brian Grossman, a psychologist and communication expert. “It seeps in because people start to believe the negative things are true.”
Just ask technical writer Matthew Arnold Stern, who, at his former job at a computer manufacturing firm, sat in a cubicle near a negative person. “He continually grumbled and swore when he was working,” says Stern. It didn’t take long for this constant negativity to affect Stern’s mood adversely: “You couldn’t tune it out — it was this horrible noise constantly in your ear.” Unfortunately, most exasperated workers wait for someone else to confront the ornery workmate, says Grossman, thus allowing the negativity plenty of time to spread through the office. The result: One bad attitude can lead to lower morale and less productivity, Grossman says, which is why he says that it is critical to address the negativity so that “productivity and motivation can proceed unfettered.”
9. “… And your sunny demeanor is getting on my nerves.”
The reverse is also true: If you’re a super-optimistic employee who is always working longer hours or taking on extra projects, you can expect some of your co-workers to secretly — or not so secretly — dislike you, say work pros. A study published in 2010 in the Journal of Personality and Social Psychology found that unselfish workers “who give much to the group effort yet take little of its subsequent reward aren't applauded but rather targeted for expulsion.”
What is it about someone going above and beyond that so rankles co-workers? People actually consider those “unselfish” people to be “rule-breakers,” who make most everyone else look bad in comparison, the study showed. Of course, this creates a problem for ambitious sorts, since taking on extra work and befriending the boss are important ways to climb the corporate ladder. Experts suggest such workers keep relatively mum about their workload. “People hate it when you talk or brag about all the extra stuff you’re doing,” says Williams.
10. “I’m disgusting.”
As many companies embrace open-plan offices and communal workspaces, slobs have become increasingly annoying to their co-workers, experts say. These tight quarters put us face to face with others’ mess, says Williams. And many people don’t realize how annoying — or unhealthy — their bad habits can be. If the mess extends beyond piles of papers to food scraps or dirty tissues, it becomes a bacterial nightmare.
More than half of all workers say that a colleague has made them sick, according to a survey by CareerBuilder.com. Not only can illness be costly in terms of time and money, but frequent absenteeism can hold back your prospects for career advancement.
Click green for further info Source: Marketwatch
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Countries Spending the Most
on Health Care
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Historically, health care spending among developed nations has grown considerably each year. However, beginning in 2010, spending has flattened. Based on figures published last week by the Organization for Economic Co-operation and Development (OECD), slow growth in 2011 reflects the continued impact the global recession has had on government spending.
As of 2011, health care cost $8,508 per person in the U.S., more than $2,800 higher than the second-highest spender among developed countries. The next big spenders are countries like Norway and Swizterland, which spent more than $5,000 per person. The reasons health care costs in these countries are so high varies considerably. Based on a report published by the OECD on global health issues, 24/7 Wall St. reviewed the 10 countries that spent the most on health care per capita.
Click here to see the top spenders
However counterintuitive, it is clear that spending more on health care does not result in better health outcomes. Of the top 10 nations with the highest health expenditure per capita, only three are in the top 10 for life expectancy. Residents in top-spending countries like Denmark and the U.S. have life expectancy below the OECD average of 80 years. At the same time, Italy and Japan both spend less than the OECD average per capita and are tied for first with the highest average life expectancy of nearly 83 years.
“Many other factors affect life expectancy beyond health care spending” explained OECD Health Division Senior Analyst Gaetan Lafortune. He mentioned living and working conditions, and lifestyle choices such as smoking and alcohol consumption and physical inactivity. He also noted that an earlier study conducted by the OECD showed that just 40% of the increase in life expectancy between 1991 and 2003, was estimated to be as a result of increased health care spending.
Whether a health care system is more privatized, as it is in the U.S., or more socialized, as it is in Norway and the Netherlands, does not appear to have much of an impact on cost. The U.S. and Switzerland had among the lowest government expenditure as a percent of total health spending. Both are in the top five for total health care spending per capita. However, so are Norway, the Netherlands, and Luxembourg, three of the health care systems with the highest public support.
In Germany, Canada, and France, pharmaceutical costs are a factor for more expensive health care, amounting to more than $600 per person annually, compared to the OECD average of less than $500. In the U.S., drugs cost nearly $1,000 per person, by far the most in the OECD.
The average hospital stay was longer in most of these countries, which may be driving up prices. However, in many of these countries, the average hospital stay for severe conditions is much lower. This, explained Lafortune, may not be cutting costs: “too short a length of stay may also cause adverse effects on health outcomes for patients. If this leads to a greater readmission rate, the cost may fall only slightly or even rise.”
While the cost of health care in some of these countries may be a product of more generous programs and higher cost of services, people may simply need more care because of poor health habits. The U.S. and Canada — two top spenders — are also in the top five among developed nations for obesity. Luxembourg, Austria, Germany, and France, are all in the top five for alcohol consumption. Lafortune explained that both alcohol consumption and obesity have been shown to drive up health care expenses. He noted that in the U.S., obesity is estimated to increase healthcare costs by as much as 10%.
Based on figures for the 34 developed nations provided in OECD’s Health Data 2013 release, 24/7 Wall St. reviewed the 10 countries where health expenditure per capita was the highest. All data is for 2011, or for the most recent available year. Included in the OECD’s release were a variety of statistics on health spending and costs. Also from the OECD, reviewed smoking rates, alcohol consumption, and obesity, as well as life expectancy.
These are the countries spending the most on healthcare.
10. France
> Health expenditure per capita: $4,118
> Expenditure as a pct. of GDP: 11.6% (3rd highest)
> Pct. obese: 12.9%
> Life expectancy: 82.2 years
Although nine countries in the OECD spent more on health care per person than France’s $4,118, only two countries exceeded France’s health care expense as a percent of GDP of 11.6%. The French have one of the longest life expectancies at birth of any developed nation at 82.2 years despite an above-average percentage of citizens who smoke and the second highest level of alcohol consumption in the OECD. France has made efforts to curb smoking and exposure to smoke in recent years. In 2007, smoking was prohibited in public places, although some residents and businesses have resisted the ban over the years.
Also Read: Countries Spending the Most on the Military
9. Germany
> Health expenditure per capita: $4,495
> Expenditure as a pct. of GDP: 11.3% (4th highest)
> Pct. obese: 14.7%
> Life expectancy: 80.8 years
While it spends nearly $4,500 per person, or 11.3% of GDP, on health care, Germany’s spending growth has been minimal Since 2000, health care expenditures have risen by an average of just 2.0% per year, one of the lowest annual average growth rates in the OECD. Germans have a high number of doctors and nurses per 1,000 residents, and each resident consults a doctor nearly 10 times a year on average. They also apparently have poor evaluations of their own health. In 2011, just 64% of Germans described their health as “good,” versus an OECD average of 69%.
8. Denmark
> Health expenditure per capita: $4,495
> Expenditure as a pct. of GDP: 11.1% (6th highest)
> Pct. obese: 13.4%
> Life expectancy: 79.9 years
Denmark spent $3,827 per person in public funds on health care, more than all but four other countries. This accounted for 85.1% of all spending on health care in the country, the second-highest proportion in the OECD, behind only the Netherlands. Denmark had the second highest number of nurses in the OECD, relative to population, at 15.4 per 1,000 residents. Conversely, it spent the second lowest proportion of any OECD country on pharmaceuticals and other medical supplies, at just 7.4% of all health care spending.
7. Canada
> Health expenditure per capita: $4,522
> Expenditure as a pct. of GDP: 11.2% (5th highest)
> Pct. obese: 17.7%
> Life expectancy: 81.0 years
Only four nations spent more than Canada on health care as a percent of GDP. Although the country offers public health care, paid for through taxes under the Canada Health Act, just over 70% of health care spending came from public funds — below the 72.2% average for the OECD. Despite its above average spending, Canada had just 2.4 doctors and 2.8 hospital beds per 1,000 residents, both among the lowest for all OECD nations. However, the nation is a major spender on pharmaceutical drugs at $752 per capita each year, higher than every other nation considered except for the U.S. Still, at 16.6% of health care expenditure, it is in line with the rest of the OECD.
6. Austria
> Health expenditure per capita: $4,546
> Expenditure as a pct. of GDP: 10.8% (8th highest)
> Pct. obese: 12.4%
> Life expectancy: 81.1 years
While Austria’s per capita health spending trails only a handful of developed nations, few countries have had spending grow as little as Austria in recent years. Since 2000, health care expenditures have risen an average of just 2.3% per year. Austria had 4.8 physicians and 7.7 hospital beds per 1,000 residents, more than nearly all other OECD nations. But despite its high health care spending, the country had just 7.8 nurses per 1,000 people, below the OECD average of 8.7 nurses. Also, Austria’s high spending did not appear make residents feel especially healthy; just 69% of residents described their health as “good” in 2011, in line with the average for all OECD nations.
5 Luxembourg
> Health expenditure per capita: $4,755
> Expenditure as a pct. of GDP: 8.2% (11th lowest)
> Pct. obese: N/A
> Life expectancy: 81.1 years
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Luxembourg spent $4,755 per capita on health care, one of the highest figures among OECD member nations. But because of its high per capita GDP — the second-highest in the world in 2012 at nearly $80,000, according to the IMF — total health care expenditure equaled just 8.2% of GDP. This was well below the OECD average of 9.3% of a country’s GDP. Public funds accounted for 84% of Luxembourg’s health care spending, for a total of nearly $4,000 per person. The country has universal health insurance that covers dependant family members, students and the unemployed.
Also Read: The Most Competitive Cities of the Future
4. The Netherlands
> Health expenditure per capita: $5,099
> Expenditure as a pct. of GDP: 11.9% (2nd highest)
> Pct. obese: 11.4%
> Life expectancy: 81.3 years
The Netherlands is one of just four nations to spend more than $5,000 per capita on health care. Health spending in the country accounted for 11.9% of GDP, a larger percentage than in any other developed nation except the U.S. Health care spending has been rapidly rising in the country in recent years, increasing at an annual rate of 5.1% since 2000, among the highest rates of any country considered. Public funding accounted for 85.6% of Dutch health spending, the most of any member country. Public health care spending has risen faster in the Netherlands than in all but two other countries, at an average of 7.4% per year.
3. Switzerland
> Health expenditure per capita: $5,643
> Expenditure as a pc t. of GDP: 11.0% (7th highest)
> Pct. obese: 8.1%
> Life expectancy: 82.8 years
The Swiss have the longest life expectancy at birth in the OECD, at 82.8 years. By comparison, the life expectancy of an American at birth is just 78.7 years. Likely contributing to the overall health of its residents is Switzerland’s low obesity rate — just 8.1% of residents reported themselves as obese, one of the lowest totals in the OECD and barely more than half the organization’s rate of 15.0%. The country requires residents to buy private health insurance, a program that “successfully delivers much of what the U.S is trying to achieve” by using the private sector to bring about universal coverage, according to Time magazine.
2. Norway
> Health expenditure per capita: $5,669
> Expenditure as a pct. of GDP: 9.3% (16th highest)
> Pct. obese: 10.0%
> Life expectancy: 81.4 years
Norway spent $4,813 in public funds per person on health care, the most of any country considered. One thing that may allow Norway to spend so much on health care: the nation is one of the world’s largest oil exporters and, as a result, has a massive budget surplus, and has built up over $700 billion in savings. No member nation or major developing country had a larger budget surplus than Norway at nearly 14% of GDP, according to OECD figures. The country’s residents practiced some of the healthiest behavior among developed countries. Just 17% of Norwegians smoked, 10% reported they were obese, and alcohol consumption was also among the OECD’s lowest.
Also Read: Countries with the Most Vacation Days
1. United States
> Health expenditure per capita: $8,508
> Expenditure as a pct. of GDP: 17.7% (the highest)
> Pct. obese: 28.5%
> Life expectancy: 78.7 years
The U.S. was by far the largest spender on health care at over $8,500 per person, totalling an unmatched 17.7% of GDP. Just two other nations surveyed by the OECD, Mexico and Chile, joined the U.S. in covering less than half of all medical expenses through public funding. Still, the cost of health care in the U.S. was so high that public expenditures on health still amounted more than $4,000 per person, trailing only Norway. Also, while 90% of residents reported they were in “good” health, the most of any OECD nation, the U.S. led all member nations in obesity by a sizeable margin, and had a life expectancy at birth of only 78.7 years — lower than 25 of the 34 OECD nations.
Source: 24/7 Wall Street
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Countries Spending the Most on the Military Date: 2012
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For the first time since 1998, global military spending is down. This coincides with a major decline in U.S. spending, which fell by more than $40 billion between 2011 and 2012. Even with this decline, however, the United States still had a military budget four times larger than China, the next biggest spender.
The Stockholm International Peace Research Institute (SIPRI) measures annual military spending for most of the world’s armed countries. According to SIPRI, the United States spent $668 billion, more than the combined budgets of the next 10 countries. While the U.S. budget has declined, some of the other global powers, including Russia and China, have ramped up spending. Based on SIPRI’s 2012 data, these are the countries spending the most on the military.
Click here to see the countries spending the most on the military
The major decline in the U.S. military budget was the result of two factors, explained Carina Solmirano, senior researcher at SIPRI’s Military Expenditure and Arms Production Programme. The first is the severe decline in overseas military spending after America’s eight-year war in Iraq ended in 2011, as well as the continued wind down of operations in Afghanistan, Solmirano said.
“The second reason,” said Solmirano, “is purely economics. … The United States is facing a huge deficit crisis, and as part of the agreements in 2011 and 2012, the Department of Defense agreed to start a reduction of expenditure — quite a significant reduction.” Solmirano added that barring the emergence of a new conflict, U.S. military spending likely will continue to fall.
Short-term changes in military spending, like the nearly 6% decline in the United States, often go hand-in-hand with periods of economic growth or crisis. Indeed, spending among nearly all the top European military powers, including Italy, France and the United Kingdom, declined last year.
Meanwhile, China went against the global trend by increasing its spending by nearly 8% between 2011 and 2012, and by more than 47% since 2008. Part of this increase is for geopolitical reasons, explained Solmirano, who added the increase in spending has “been parallel to its increase in economic power as well.”
Other nations, while not the biggest spenders overall, have much larger military budgets relative to the size of their economies. As of 2012, the United States spent 4.4% of its gross domestic product (GDP) on the military. In countries like Saudi Arabia and Oman, military costs amounted to more than 8% of GDP. Part of this, explained Solmirano, has to do with the consistently tense security situation in the Middle East. She added that countries like Saudi Arabia are able to fund massive militaries with substantial oil revenue.
24/7 Wall St. reviewed the 10 countries that spend the most on their military in 2012, based on SIPRI’s measure of military spending in more than 130 nations. We also reviewed SIPRI data on military exports and imports, as well as military expenditure as a percentage of GDP. From Globalfirepower.com, we reviewed statistics on military size and strength, based on the most recent available data. We also considered GDP and GDP growth figures from the International Monetary Fund (IMF).
10. Brazil
> Military expenditure: $36.8 billion
> Expenditure as pct. of GDP: 1.5%
> One-year spending change: -0.5%
> Total exports: $14.1 million (24th highest)
> Total imports: $212 million (24th highest)
Brazil spent roughly $36.8 billion on its military in 2012, higher than all but nine other countries. Military spending has fallen in Brazil since 2010, when the government spent $38.1 billion. Despite being among the top 10 in military spending, the country is barely among the top half in terms of the spending as a percentage of GDP, which was just 1.5% in 2012. In addition to the more than 371,000 people in Brazil who were actively serving in 2011, there were more than 1.3 million Brazilians serving in the active reserves, more than all but five other countries.
9. India
> Military expenditure: $48.3 billion
> Expenditure as pct. of GDP: 2.5%
> One-year spending change: -2.8%
> Total exports: $1.8 million (32nd highest)
> Total imports: $2.0 billion (the highest)
Military spending in India comprised 2.5% of the country’s GDP in 2012, higher than most other countries. However, this has declined every year since 2009, when India spent 2.9% of its GDP on military affairs. Between 2011 and 2012, India’s military budget declined by 3%. As of 2011, India had more than 1.3 million active military members, more than any other country except for China and the United States. In addition, India had 1.7 million active reserve members, more than any country except for North Korea and South Korea. India has been the biggest arms importer worldwide in recent years, as it has been upgrading its largely Soviet-era weapons.
Also Read: The Most Competitive Cities of the Future
8. Germany
> Military expenditure: $48.6 billion
> Expenditure as pct. of GDP: 1.4%
> One-year spending change: 0.9%
> Total exports: $486 million (6th highest)
>Total imports: $126 million (33rd highest)
Germany spent more than $48.6 billion on its military in 2012, or 1.4% of the country’s GDP. This was in line with the 1.3% of GDP it spent back in 2011 but still lower than the majority of countries measured. Germany exported $486 million worth of arms in 2012, higher than all but five other countries. In 2012, Germany announced the largest cuts to its military since the end of World War II. The government intends to scale back or close 100 of its 400 bases and cut the number of soldiers by 15,000 to 185,000. Germany expects to implement the cuts through 2017 at the latest.
7. Saudi Arabia
> Military expenditure: $54.2 billion
> Expenditure as pct. of GDP: 8.9%
> One-year spending change: 11.7%
> Total exports: n/a
> Total imports: $261 million (16th highest)
Saudi Arabia’s military budget comprised 8.9% of the country’s GDP in 2012, higher than any other country. However, this was down from 11% of GDP in 2009 and 10% of GDP in 2010. Military spending in 2012 has increased by nearly $10 billion since 2008, reaching more than $54.2 billion last year. Between 2011 and 2012 alone, military spending increased by 12%, higher than most other countries in the world. Solmirano pointed out that oil revenue in Saudi Arabia has allowed the country to spend heavily on the military in recent years. As of 2012, Saudi Arabia produced more than 11.1 million barrels of oil a day, more than any other country.
6. Japan
> Military expenditure: $59.2 billion
> Expenditure as pct. of GDP: 1.0%
> One-year spending change: -0.6%
> Total exports: n/a
> Total imports: $6 million (78th highest)
Although just five nations spent more on their military in 2012 in absolute terms, in relative terms — as a percentage of GDP — more than 100 nations spent more than Japan. Prime Minister Shinzo Abe began pushing for a stronger military after winning the office at the end of 2012. Abe’s plans to boost military spending may be limited by the country’s massive debt concerns. The IMF estimates Japan’s gross debt at nearly 238% of GDP in 2012, proportionally more than any other country. Despite these concerns, Japan recently increased military spending for the first time in 11 years. Although Japan’s constitution prohibits initiating military action, Prime Minister Shinzo Abe recently has argued that the country should be permitted to join U.N.-sanctioned military actions.
5. United Kingdom
> Military expenditure: $59.8 billion
> Expenditure as % of GDP: 2.5%
> One-year spending change: -0.8%
> Total exports: $351 million (10th highest)
> Total imports: $254 million (17th highest)
Military spending in the United Kingdom fell for the second straight year in 2012. This was likely due, in part, to a slow GDP growth of less than 1% for the second straight year and a decline in government spending as a percentage of GDP for the third straight year. Early this year, the United Kingdom cut 5,000 troops from its armed forces as part of the nation’s broad austerity measures. The U.K. spent just 2.5% of GDP on the military in 2012 and exported just over $350 million in weapons. By contrast, 25 years earlier, the nation spent 4.0% of its annual GDP on its military and exported $2.5 billion worth of arms.
Also Read: The Most Dangerous Cities in America
4. France
> Military expenditure: $62.6 billion
> Expenditure as pct. of GDP: 2.3%
> One-year spending change: -0.3%
> Total exports: $272 million (11th highest)
> Total imports: $87 million (38th highest)
France’s military budget of $62.6 billion in 2012 was higher than any other country in the European Union. However, this has declined every year since 2009, when military spending reached more than $69.4 billion. The military cuts are not over. In April, France announced it would freeze military spending, with an expected budget of roughly $235 billion for the next six years. By 2019, France is expected to reduce its armed forces headcount by 34,000, or nearly 10% of its current force. As of 2011, France had more active military members than all other countries in the EU at 362,485.
3. Russia
> Military expenditure: $90.6 billion
> Expenditure as pct. of GDP: 4.4%
> One-year spending change: 15.7%
> Total exports: $3.8 billion (2nd highest)
> Total imports: $8.2 million (74th highest)
Russia’s military budget has grown significantly in the past several years. In 2008, Russia spent just under $68 billion, or 3.7% of GDP. By 2012, the military budget had grown to more than $90.6 billion, or 4.4% of GDP. The largest increase in spending came between 2011 and 2012, when the budget was increased by 16%. Russia has been in the process of upgrading its weapons over the past several years, working to replace aging submarines, assault ships and ballistic missiles. Russia was the second-largest exporter of weapons in 2012, shipping out more than $3.8 billion in arms. Russia has more self-propelled guns and Corvette missiles than any other country.
2. China
> Military expenditure: $157.6 billion
> Expenditure as pct. of GDP: 2.0%
> One-year spending change: 7.8%
> Total exports: $443 million (8th highest)
> Total imports: $872 million (4th highest)
China increased its annual military expenditure from $107 billion in 2008 to more than $157 billion in 2012. Despite this spending increase, military expenditure as a percentage of GDP has remained relatively stable at around 2%. China has had one of the world’s fastest growing economies in recent years, even with GDP growth slowing to 7.8% in 2012. Currently, China is embroiled in a tense dispute with Japan over the resource-rich Diaoyu islands (called the Senkaku islands in Japan). China also historically has had tense relations with Taiwan, which it still considers to be a breakaway province.
1. United States
> Military expenditure: $668.8 billion
> Expenditure as pct. of GDP: 4.4%
> One-year spending change: -6.0%
> Total exports: $6.2 billion (the highest)
> Total imports: $670 million (6th highest)
The United States spends more on the military than any other country by a wide margin. The country’s military budget accounts for roughly 40% of all military spending in the world, according to SIPRI. However, military spending has declined since 2010, when it hit more than $720 billion. Much of the drop has been due to reduced presence in Iraq and Afghanistan. The United States is by far the largest arms exporter in the world — in 2012 the United States exported more than $6.2 billion worth of arms, more than $2.4 billion more than the second-largest exporter, Russia. Earlier in June, the White House announced it was arming Syrian opposition against Syrian President Bashar al-Assad’s regime.
Source: The Stockholm International Peace Research Institute (SIPRI)
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Salary Negotiation No-No's:
3 Things Never to Say in a Job Interview
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Discussing compensation is one of the more delicate parts of the job interview process. You might be asked what your salary requirements are, and freeze. Or you could be offered your dream job, but with a nightmare salary.
Luckily, you don't need a degree in negotiation to successfully navigate this conversation. Mostly, it means not saying things that are akin to shooting yourself in the financial foot. Here are three phrases likely to sabotage any chance of getting paid what you think you deserve:
"What does this position typically pay?"
If you give this response to the "what are your salary requirements" question, you'll likely lower their offer before it's even made. In the same way that you can attempt to fudge your number when asked how much you currently make, your future potential employer may bend the numbers to their advantage when discussing the standard salary. You could also come off as lazy. "It shows you haven't done your research," says Colette Ellis, founder of InStep Consulting. You can find this information through sites like Glassdoor.com, or through friends and colleagues in the industry.
"Yes, that sounds good."
It's called salary negotiation for a reason -- an employee's initial number is typically just a starting figure. This is important to remember, whether the number sounds lousy or fair. "Be prepared to come back with examples of your skills and value that support your worth," says Ellis. They want you, so remind them of why and they may be willing to fight for you in the form of added compensation.
"...but I'm flexible on that."
This phrase essentially negates whatever number came before it. "Don't negotiate your salary target down for the employer by saying, 'I'm willing to accept less if that's not in your budget,' " says Ellis. Instead, make your case and if they can't come closer, ask about bonuses or stock options that might be on the table. The key is doing your research, and then simply having the confidence to ask for what you want.
Article 2 of 4
Job offer too low? How to get the salary you want
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You've done it -- you've snagged an offer for your dream job. The only hitch? The salary isn't what you expected, or what you require. You're their top pick, so you may have a little wiggle room in terms of salary. Here's how to ask for what you think you're worth:
Throw out a long "hmmm..."
If your offer is in person, use the power of a good pause. "Repeat the offer and then blurt out this 4-letter word: 'Hmmm.' Be quiet for a little bit," suggests Jack Chapman, author of Negotiating Your Salary, How To Make $1000 A Minute. This pregnant pause may prompt them to simply ask why you're hesitating, giving you a natural opening.
Click green:
How your looks affect your salary
7 ways to increase your salary now
What people earn: lessons for a salary stalker
Know your worth
Once you know you're on the shortlist, take some time to research salaries online, on a site like Salary.com and Glassdoor.com. You won't know what to ask for if you don't have the facts. "Knowing your own Ideal, Satisfactory, and 'no go' numbers you confidence to say, 'I appreciate the offer, Mr. Employer, and based on my research, I think we should be looking at a number closer to ______,'" says Chapman.
Summarize your specific successes
In order to persuade a company to give you more money, show them that you'll likely make them more money than other candidates--in other words, that you're a good investment. "Be prepared to show your new employer what you've done in your previous positions to prove the added value you've contributed to other employers. Describe specific, measurable examples (e.g., dollars saved, clients retained, sales generated)," says Collette Ellis, founder of InStep Consulting.
Open big
You want to fight for what you think you're worth -- even if that's considerably higher than what they think you're worth. So open big, says Selena Rezvani, author of the book Pushback: How Smart Women Ask - And Stand Up - For What They Want. "When it comes to bargaining for a better salary, always start with a figure that would delight and thrill you, not simply satisfy you. Don't ever bother giving a range -- too many employers will only hear your low number," says Rezvani.
Use partnership language
You've got them where you want them, says executive coach Stephanie Somanchi: "You've been offered the job, so clearly you are wanted and your skill set valued. This is your first on-the-job collaboration." Use words like "we," to describe the salary offer discrepancy and avoid talking about yourself -- that you need more money for clothes or an apartment, for instance.
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Source: MoneyWatch
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How Your Looks Affect Your Salary
Word by STAF, Inc. President, Dr. Christian von Christophers, Ph.D., N.D., D.D.:
By looks STAF, Inc. means what kind of an impression you give by your (1) clothing, your (2) self-confidence, (3) your communication skills, (4) your capability handling the job, (5) your endurance & politeness, (6) the way you speak and present yourself, they way you walk, the way you hand greet, (7) the way your experience proves your capability to succeed in the work position.
It is not "how handsome or how beautiful" you are physically "at a first look". When a person has strong self-confidence and excellent communication skills, that person will fast impress and appear handsome or beautiful.
What matters "how you look inside", not how you look outside as long as you take good physical care of your appearance. In case you can make people laugh (by a little joke) and feel good (take courses in these skills) you will look handsome & beautiful and will be giving an impression that you are a valuable asset to the employer. When you have a positive opinion about yourself you create such a feeling and other people will adopt that from you.
Another important fact is that people who may be, by the first look, physically exceptionally handsome or beautiful,
may soon appear ugly in the eyes of the interviewer or anyone, as they may be cocky & may not always handle their good looks well - and they lose the employment because they create a negative atmosphere.
The winning beauty comes from inside and shows in the person's behavior and leads to a firm hiring and employment.
For physical looks hire a professional stylist - that may help anyone
_________________________________________
Next below the article
How Your Looks Affect Your Salary
Once more: read the above paragraph: you can create the appearance of being handsome or beautiful no matter what the original ingredients - it is all up to your behavior - see above
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By the time you're in high school, the fact that your looks can affect your love life and popularity is well-established. But it doesn't end there, according to Daniel S. Hamermesh, professor of economics at the University of Texas. His new book, Beauty Pays, outlines research that show salary and earning power can be determined, in part, by beauty (or lack of it).
Last week my colleague, Sarah Lorge Butler, wrote about her insightful conversation with him as it related to her family finances and career issues. After reading her interview, I had a few additional questions -- particularly if Hamermesh suggests plastic surgery or legal action to those discriminated against based on their lack of outer beauty, and how the findings played across gender lines. Here's what he said:
Why do you think beautiful people earn more? Hamermesh: People may more attention to them, listen to them better. Also, good-looking people become more self-confident as a result of their looks and prior treatment by others. Finally, we as customers, employers, and fellow employees prefer to be around good-looking people and are willing to pay for the privilege.
Were your findings gender neutral? Hamermesh: In most studies the effects of looks on earnings are bigger among men than women.
Interesting--why do you think men are more affected? Hamermesh: I explain it by pointing out that most men feel obligated to work, while women to some extent still have the option of staying home. So if you're a "bad-looking" woman and know the market will discriminate against you, you might stay at home. And in fact, evidence shows that better-looking women are more likely than average-looking women to be working, who are in turn more likely than bad-looking women to be working.
So should plain-looking people get plastic surgery to get ahead in the workplace? Hamermesh: Evidence suggests that this doesn't help very much. They might make you feel better, but they won't change very much how others perceive your looks. People should instead take advantage of characteristics they have in abundance -- intelligence, strength, personality, etc.
You discussed legal action as an option for fighting "looks discrimination" in a recent
click: New York Times article. Is this really likely to happen? Hamermesh: Yes and no. Yes, in that we already offer protections for characteristics that are no less readily changed than really bad looks. No, in that if we were to expand protection to this group, I would imagine it would reduce our resources and energies devoted to legal protections for other groups that I personally view as being more deserving politically. _______________
This next article is written by Daniel S. Hamermesh, professor of economics
at the University of Texas
- the same person mentioned in the article next above
You can always
improve the appearance and have a positive outcome
Any looks can always be made more attractive
Looks is not the key - your behavior is
FIRST " HOW TO MAKE YOURSELF APPEAR HANDSOME OR BEAUTIFUL"
Word by STAF, Inc. President, Dr. Christian von Christophers, Ph.D., N.D., D.D.:
By looks STAF, Inc. means what kind of an impression you give by your (1) clothing, your (2) self-confidence, (3) your communication skills, (4) your capability handling the job, (5) your endurance & politeness, (6) the way you speak and present yourself, they way you walk, the way you hand greet, (7) the way your experience proves your capability to succeed in the work position.
It is not "how handsome or how beautiful" you are physically "at a first look". When a person has strong self-confidence and excellent communication skills, that person will fast impress and appear handsome or beautiful.
What matters "how you look inside", not how you look outside as long as you take good physical care of your appearance. In case you can make people laugh (by a little joke) and feel good (take courses in these skills) you will look handsome & beautiful and will be giving an impression that you are a valuable asset to the employer. When you have a positive opinion about yourself you create such a feeling and other people will adopt that from you.
Another important fact is that people who may be, by the first look, physically exceptionally handsome or beautiful,
may soon appear ugly in the eyes of the interviewer or anyone, as they may be cocky & may not always handle their good looks well - and they lose the employment because they create a negative atmosphere.
The winning beauty comes from inside and shows in the person's behavior and leads to a firm hiring and employment.
For physical looks hire a professional stylist - that may help anyone.
_______________________________
BEING good-looking is useful in so many ways
HOWEVER,
YOU CAN make yourself
look good and attractive
For the interview and meetings wear correct clothing. Hire a professional, personal stylist - it can easily pay off the expenses and raise your salary and raise your success level in any negotiation.
Next the article
- A person's basic, starting-point physical look is not the key because any person can always change the appearance and have a positive outcome
Any looks can always be made more attractive
Looks is not the key - your behavior is - that's 100 % up to you
In addition to whatever personal pleasure it gives you, being attractive also helps you earn more money, find a higher-earning spouse (and one who looks better, too!) and get better deals on mortgages. Each of these facts has been demonstrated over the past 20 years by many economists and other researchers. The effects are not small: one study showed that an American worker who was among the bottom one-seventh in looks, as assessed by randomly chosen observers, earned 10 to 15 percent less per year than a similar worker whose looks were assessed in the top one-third --
a lifetime difference, in a typical case, of about $230,000.
Beauty is as much an issue for men as for women. While extensive research shows that women’s looks have bigger impacts in the market for mates, another large group of studies demonstrates that men’s looks have bigger impacts on the job.
Why this disparate treatment of looks in so many areas of life? It’s a matter of simple prejudice. Most of us, regardless of our professed attitudes, prefer as customers to buy from better-looking salespeople, as jurors to listen to better-looking attorneys, as voters to be led by better-looking politicians, as students to learn from better-looking professors. This is not a matter of evil employers’ refusing to hire the ugly: in our roles as workers, customers and potential lovers we are all responsible for these effects.
How could we remedy this injustice? With all the gains to being good-looking, you would think that more people would get plastic surgery or makeovers to improve their looks. Many of us do all those things, but as studies have shown, such refinements make only small differences in our beauty. All that spending may make us feel better, but it doesn’t help us much in getting a better job or a more desirable mate.
A more radical solution may be needed: why not offer legal protections to the ugly, as we do with racial, ethnic and religious minorities, women and handicapped individuals?
We actually already do offer such protections in a few places, including in some jurisdictions in California, and in the District of Columbia, where discriminatory treatment based on looks in hiring, promotions, housing and other areas is prohibited. Ugliness could be protected generally in the United States by small extensions of the Americans With Disabilities Act. Ugly people could be allowed to seek help from the Equal Employment Opportunity Commission and other agencies in overcoming the effects of discrimination. We could even have affirmative-action programs for the ugly.
The mechanics of legislating this kind of protection are not as difficult as you might think. You might argue that people can’t be classified by their looks — that beauty is in the eye of the beholder. That aphorism is correct in one sense: if asked who is the most beautiful person in a group of beautiful people, you and I might well have different answers. But when it comes to differentiating classes of attractiveness, we all view beauty similarly: someone whom you consider good-looking will be viewed similarly by most others; someone you consider ugly will be viewed as ugly by most others. In one study, more than half of a group of people were assessed identically by each of two observers using a five-point scale; and very few assessments differed by more than one point.
For purposes of administering a law, we surely could agree on who is truly ugly, perhaps the worst-looking 1 or 2 percent of the population. The difficulties in classification are little greater than those faced in deciding who qualifies for protection on grounds of disabilities that limit the activities of daily life, as shown by conflicting decisions in numerous legal cases involving obesity.
There are other possible objections. “Ugliness” is not a personal trait that many people choose to embrace; those whom we classify as protected might not be willing to admit that they are ugly. But with the chance of obtaining extra pay and promotions amounting to $230,000 in lost lifetime earnings, there’s a large enough incentive to do so. Bringing anti-discrimination lawsuits is also costly, and few potential plaintiffs could afford to do so. But many attorneys would be willing to organize classes of plaintiffs to overcome these costs, just as they now do in racial-discrimination and other lawsuits.
Economic arguments for protecting the ugly are as strong as those for protecting some groups currently covered by legislation. So why not go ahead and expand protection to the looks-challenged? There’s one legitimate concern. With increasingly tight limits on government resources, expanding rights to yet another protected group would reduce protection for groups that have commanded our legislative and other attention for over 50 years.
We face a trade-off: ignore a deserving group of citizens, or help them but limit help available for other groups. Even though I myself have demonstrated the disadvantages of ugliness in 20 years of research, I nonetheless would hate to see anything that might reduce assistance to groups now aided by protective legislation.
You might reasonably disagree and argue for protecting all deserving groups. Either way, you shouldn’t be surprised to see the United States heading toward this new legal frontier.
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A Well-Paying, Modern Job for Many - Perhaps for You
Actors Today Don’t Just Read for the Part. Reading IS the Part
Gabra Zackman is a new kind of acting star: she is heard, but unheard-of.
Ms. Zackman had classical training through the Shakespeare Theater of Washington, has worked in regional theaters for the last two decades and has had a sprinkling of appearances on television shows like “Law and Order.” Those performances, however, have brought neither fame nor fortune.
Instead, like a growing number of actors, she has found steady employment as a reader in the booming world of audiobooks.
In recent years, Ms. Zackman has recorded more than 200 titles, and she says she can now count on steady work of two books a month, earning $1,000 to $3,000 a book. The income helps her make the payments on her one-bedroom Manhattan apartment while giving her the freedom to travel around the country and perform.
Once a small backwater of the publishing industry, in part because of the cumbersome nature of tapes, audiobooks are now flourishing. Sales have been rising by double digits annually in recent years. A recent survey by industry groups showed that audiobook revenue climbed 22 percent in 2012 compared with 2011.
Much of the growth can be attributed to the business’s digital transformation — from how books are recorded (increasingly at studios in the actors’ homes) to how they are sold (through subscription or individually on the Internet) and consumed (downloaded to mobile devices).
That development is good for publishers and authors, of course. But it has also created a burgeoning employment opportunity for actors pursuing stardom on the stage and screen, allowing them to pay their bills doing something other than waiting on tables.
Ms. Zackman says the demand for her work is tied in part to her dedication to her craft, and she does extensive research before each book, with the aim of infusing intonation and emotion into each character’s voice. She also gives credit to Audible.com, a company in Newark that is pushing the digital revolution in audiobooks, and which has become her main employer.
“I get to have a whole flourishing life as an actress because they have given me an opportunity to practice and to be employed,” she said.
Audible, the biggest producer and seller of audiobooks, says it produced some 10,000 recorded works last year — either directly or through a service it provides that allows authors to contract directly with actors. Each book amounts to an average of two or three days in the studio, but can be more, for the person voicing the book.
Donald R. Katz, the founder and chief executive of Audible, which was bought by Amazon.com in 2008, said that his company employed 2,000 actors to read books last year, and he speculated that he was probably the largest single employer of actors in the New York area.
The actors’ guild says there is no way to calculate such a number but it confirms that not only is audio narration work suddenly plentiful, but that it is also lucrative enough to allow many of its members to survive on it.
As with other forms of acting, compensation varies according to fame. An unknown actor might earn a few thousand dollars for a book, while stars like Nicole Kidman, who recently narrated Virginia Woolf’s “To the Lighthouse” for Audible, can be paid in the hundreds of thousands.
Still, Michelle Lee Cobb, president of the Audio Publishers Association, said “there are hundreds of actors who make their living reading books and we are seeing more and more people trying.”
The field is so promising that drama schools, including prestigious institutions like Juilliard and Yale, have started offering audio narration workshops.
Courtney Blackwell Burton, director of career services at Juilliard, said: “It is very exciting because it is a new source of income and work that really uses their training. We are really pushing this idea of entrepreneurship, and with narration you can even have your own studio in your home.”
Since the workshops started in 2008, eight Juilliard actors have recorded 62 books for Audible, she said.
Katherine Kellgren has led narration classes at various acting schools. She said she was excited that audio narration, which is different from other forms of acting, is finally getting recognition as a craft.
Ms. Kellgren attended the London Academy of Music and Dramatic Art for three years, where she says she trained intensely in dialects. She did radio plays early in her career, which helped prepare her for audio work.
For her first book, she auditioned for the producer over the phone by reading selections from “Out of Africa.” She got the job, which was for a bodice ripper called “Wicked Widow,” just the mention of which still makes her giggle with embarrassment.
Now, Ms. Kellgren, who refers to herself as an audiobook narrator instead of an actress, can command as much as $450 for each finished hour of narration and can be picky about the work. “When books get too spicy for me, I turn them down now because I dissolve into hysterics,” she says.
Ms. Kellgren’s style is to perform demonstrative dramatic readings, giving each character a distinct voice. She even has a dialect coach. She has recorded nearly 200 books and says she even has a fan base.
“It is not exactly people stopping me and saying, ‘didn’t you read “Pride and Prejudice and Zombies”?,’ ” she said, “but I have been at various book festivals and people recognize me by my work.”
Another actor, Jonathan Davis, also can command a premium price for his services. He has narrated over 30 Star Wars books for Lucasfilm and Random House, as well as critically acclaimed books like the Pulitzer Prize-winning “The Brief Wondrous Life of Oscar Wao” for Audible.
Mr. Davis cautions that narration is not for everyone. “You need endurance, patience, and you need to do a lot of research,” he said. “I am in the booth from 9 to 4 and the average book could be three days to seven days.”
The upside, for him, has been a connection with authors like Bret Easton Ellis and Oliver Sacks and also a tremendous amount of freedom to define the project artistically. “I feel like they have a great respect for what I do,” he said of Audible, his most regular client.
His style is more restrained than Ms. Kellgren’s. “You paint the whole picture but you are very controlled,” he said.
“A fan once said to me that my narration was like ‘a modern version of sitting around a campfire listening to tribal elders,’ ” he added. “That is what makes me feel I am on the right track.”
Source: NYT
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Here’s some advice for tuning up your own resume
without getting turned out, starting with the obvious…
1. Don’t lie
Incidents like this are likely to make employers vet candidates more thoroughly in the short term, but it’s not a risk worth taking even under normal scrutiny. Lies can cost you a job, and if they’re publicized, possibly your career in the field.
2. Don’t exaggerate your skills
While it’s not as bad as inventing a degree you never earned, don’t leave an employer thinking you’re an expert at a computer program you can barely operate. If it’s a necessary skill you don’t actually have, you’re going to get caught eventually.
If you want to include skills you “sort of” know but haven’t mastered, no problem: Just be clear about it by separating your skills into “expert” and “knowledgeable” categories. If you’re a whiz and can efficiently do anything from scratch, put it in the former. Anything where you can get by with a refresher goes in the latter.
3. Your resume isn’t your Facebook profile, or even LinkedIn
Bosses don’t look for much in a resume – besides, you know, honesty and real qualifications – and research suggests they spend an average of six seconds looking at one. (But we assume more time on high-profile positions. Or maybe that’s how this happened?)
So just hit the highlights. This isn’t your biography. You can share your interests and hobbies when you make it to the interview, when they’ll want to know more about you.
4. Skip the objective
Odds are an objective isn’t going to make you stand out from the crowd. At best, it’s probably a space waster. At worst, it says something vague (“To gain experience and knowledge in a field I am interested in pursuing for a career”) or lame (“To work ethically in a professional environment”) that a manager might actually laugh at. So look objectively at your objective, and if it isn’t compelling, delete it.
5. Got a college degree? Forget high school
The only reason to include high school on a resume is if you didn’t go to college. High school didn’t matter once you got to college, and it certainly doesn’t matter now. If you have a college degree, just list that – an obvious indicator that you made it through high school.
6. Always include references
Think of references as celebrity endorsements. Saying references are “available upon request” does nothing for you – it’s a wasted opportunity, usually coming from a fear the employer might try to ambush them. But employers aren’t going to call your references before they call you. Bosses are busy people, and it’s a waste of time to ask someone else about you until they ask you about you. So if your bosses from previous jobs think you did well, include them – but ask first.
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7. Highlight accomplishments
A job title and work dates don’t tell a whole lot – just that you were a warm body collecting a paycheck. The best resumes include bullets of their major contributions in previous positions: Did you win awards? Boost productivity or profit by a measurable margin? Start a new program or run one better than anyone before you?
8. Tailor the resume to the job
If you’re applying for a different position than the last time you sent in a resume, update it. Your experience may not have changed, but you may want to reword or rearrange things to highlight relevant skills. And if it’s not relevant, trim it or push it down. Remember: six seconds.
9. Make it readable
No matter how much experience you have, few resumes need to be more than two pages, and most don’t need that much. (You only need to go back 10 to 15 years.) Don’t try to cram everything in, using tiny fonts and leaving no space. Summarize, cut unnecessary words, and don’t fear white space. A resume with breathing room will stand out more than a dense one that requires squinting.
10. Proofread (twice)
Hiring managers are just looking for excuses to shrink that stack of resumes on their desk, and a spelling mistake is an easy reason to toss one away. You’re not likely to catch all your typos right after editing, so leave yourself some time to review it later. Then send it to a friend or family member, who will probably catch things you missed.
Don’t be afraid to follow up about a week after you send in a resume – click: most employers actually encourage it.
Sending a cover page in too? Check out 5 Tips for Writing a Terrific Cover Letter
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5 Tips for Writing a Terrific Cover Letter
FORBES: The only three true job interview questions
(1) Can you do the job?
(2) Will you love the job?
(3) Can we tolerate working with you?
Answer the above 3 questions well already in your cover letter and then during the interview
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In the age of LinkedIn, where some people apply to jobs through smartphone apps and email, do cover letters still matter? A new survey of hiring managers gives a pretty clear answer: Heck, yeah.
Staffing agency OfficeTeam released a study last week that found 91 percent of executives consider cover letters valuable in evaluating candidates. And 79 percent said even electronic applications they’ve received usually included cover letters.
Both numbers are slightly higher than when OfficeTeam conducted a similar study with 150 managers just before the recession took hold in 2008. If anything, that suggests cover letters have grown more important over the past few years, not less.
That makes sense. Hiring managers often receive a thick pile of applications these days, and they can’t realistically assess everybody’s qualifications and then mentally match names and faces as they go through rounds of interviewing. That means cover letters are important in two ways.
First, they make strong candidates stand out from the pack. Second, they give candidates with average resumes a chance to offer context and examples that highlight answers to what
Forbes calls the only three true job interview questions
(1) Can you do the job?
(2) Will you love the job?
(3) Can we tolerate working with you?
Use these 3 above exact questions and answer briefly each of these
3 questions in your cover letter - then you are invited more often to an interview.
With that in mind, here are the 5 R’s to punching up your next cover letter…
- RTFM. The polite version of this acronym is “read the flaming manual.” If you don’t follow guidelines listed in the job posting, such as using certain file formats or including the position title and number in the subject line, you may be knocked out of consideration automatically or through a hiring manager’s annoyance. After all, if you can’t handle basic instructions for something you obviously want – a job – why should they believe you’re capable of more complicated tasks?
- Research. If you want to impress Human Resources, be resourceful. Instead of submitting your cover letter to a generic sir/madam/whom it may concern, find out the hiring manager’s name. If it’s not online, call and ask. You’ll want to know that and a whole lot more about the company if you get called for an interview.
- Relate. If someone the manager knows referred you for the position, drop that name. If your research clued you into issues the company is having or helps you identify an opportunity, explain what help you can offer. Even if you suggest something the company has already tried, it shows you’re thoughtful and trying to make a contribution.
- Reveal. Your resume sums up your work history, so your cover letter shouldn’t repeat it. Instead, use this blank page to include anecdotes, skills, and experience that your resume doesn’t explain. Write in plain English without using robot-speak like, “I have a proven track record of success.” (As opposed to a track record of failure? Or a made-up track record?) Show personality alongside professionalism, and even if you lack the knack for writing, your cover letter will beat a majority of the competition.
- Reread. Always proofread every cover letter you send off. Read them out loud to yourself. Especially if you’re applying for similar positions at multiple companies, make sure you haven’t copied-and-pasted anything irrelevant to each one. Sometimes applicants accidentally mention their interest in working at a rival company, or worse, in a completely unrelated position. This raises red flags and makes you look stupid – as will any typos.
Job-seekers should also want to check out click: Avoid These Awful Resume Mistakes and click: 4 Places for Free Job Training.
Subscribe by email (Click: Sign up for our email updates and we’ll send you a regular digest of our newest stories, full of money saving tips and advice, free! We’ll also email you a PDF of Stacy Johnson’s ’205 Ways to Save Money’ as soon as you’ve subscribed. It’s full of great tips that’ll help you save a ton of extra cash.
It doesn’t cost a dime, so why wait? Click here to sign up now.
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Click:
Weird Cover Letter Secret
Practically Forces Managers to Call You For a Job Interview, and Hire!
jobsearchjimmy.com/CoverLetterTrick
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Source: jobsearchjimmy.com
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STAF, Inc. urges you to connect the website jobsearchjimmy.com - you will find valuable, practical information how to get hired - apply the information
Quote "Knowledge is no power, only applied knowledge is power"
(Dr. Christian, STAF, Inc. CEO)
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When the Outside Weather is hot:
Cheap & Wise & Healthy ways to keep cool
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During the summer months, and some parts of our world year-round, when the heat often sends beads of sweat trickling down your back, there’s nothing quite like entering the cool paradise of an air-conditioned room.
But when you’re paying for that paradise, the air conditioning seems like less of a miracle and more of a burden. The average U.S. household electric bill for June through August is expected to total $395 this summer, according to the U.S. Energy Information Administration. That’s a hefty bill for some cool space.
It doesn’t have to be. There are plenty of creative tricks to save money on air-conditioning. You’ve probably heard of buying a programmable thermostat, maintaining your HVAC unit, replacing filters and taking cold showers—and you’ve probably done them all.
Try going a step further and implementing some real cost-saving measures that cost less than relying entirely on your energy-guzzling air conditioner.
#1: Plant shady trees by windows
“Tree shading of a house is one of the most effective means of cutting air conditioning use,” saidPeter Brown, director of residential services for the New Homes program for Earth Advantage Institute, an Oregon-based organization advocating for more energy-efficient home building.
Deciduous trees, which lose their leaves in the fall, are some of the most energy-efficient trees to plant, Brown said.
The east and west sides of your home are the best spots to plant deciduous trees, because those directions get hit the hardest by the beaming summer sun.
Planting the right trees in the right places can save around 30 percent on your bill.
#2: Using window film to conserve energy
Window films are a thin sheet of material stuck to your windows that block infrared light while still letting visible light in. By not allowing the infrared light in, the amount of heat pouring into a room from the sun is minimized and that haunting energy bill becomes a little less scary.
Gila, a company selling the films, says that they can save you 30 percent on cooling costs.
Knowing which rooms get the most sun is important before deciding to install window film.
“This product would make sense on all sides of the house except the north,” Brown said.
Before installing window films, be sure the manufacturer made a credible claim that their product will result in a lower SHGC, or solar heat gain coefficient, rating for the window, Brown said.
#3: Solar shades or screens keep heat out
“Providing window shading is an excellent way to eliminate or reduce dependency on air conditioning,” Brown said.
The majority of sunlight striking an unprotected glass window passes through it and goes right into the home. Only a small percentage is reflected. Solar screens reduce the amount of sunlight striking the window by absorbing or reflecting the sunlight away from the glass.
Mount the shades on the outside of the window to block the heat before it enters the home. For greater efficiency consider using dual shades, which are highly reflective white on one side and heat absorbing dark on the other side.
#4: Use your windows to your advantage
Window exhaust fans use less electricity than air conditioners and still cool a room, but usually only at night. By placing one of these fans in the window, the cooler night air outside air will be drawn in and circulated throughout your home.
Also consider simply keeping windows open when outside temperatures are lower than the level at which you would set your thermostat.
“At night open windows or skylights at the highest parts of your house, and one or two on the first floor and let nature do its thing,” Brown said.
#5: Consider an evaporative cooler
Evaporative coolers, also known as swamp coolers, are efficient when used correctly--and in the proper climates.
Unlike air conditioners, which recirculate the same air, evaporative coolers provide a steady stream of fresh air into the house. They operate by having a window slightly open, which allows warm indoor air to escape, and replaces it with air the evaporator cools. There are small coolers for windows, or big coolers for outside installation.
They cost half as much to install and use around a quarter as much energy as air conditioners. However, the maintenance is more demanding and they are they are only suitable for low-humidity areas.
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Source: Yahoo, Homes
__________________________________________________
Please notice:
Article 1 of 2 for everyone
Article 2 of 2 next below with some specifics for you who just graduated from college
Do Your Homework Before the Big Interview
Click green for further info
Once upon a time, a job seeker landed an interview, skimmed the prospective employer's annual report, wowed the hiring manager with a few company facts and strolled into his dream job.
That late-'90s fairy tale rarely comes true these days. With employers in more control of the labor market, candidates feel compelled to give it their all in their interview preparation. And that includes mounting a broad, deep search for relevant information about the position, the company, the industry and even the interviewer.
Luckily for you, diverse resources, many of them free or cheap and available on the Internet, enable you to achieve that competitive edge if you're willing to put your nose to the grindstone -- or computer monitor.
Employers' Web Sites
Your prospective employer's corporate Web site is the best place to see the company as it wants to be seen. Do check out that annual report, but also look for a "press room" or "company news" page that links to recent news releases. As you mull all this information, consider how the open position, as detailed in the job posting, relates to the company's mission.
But don't stop there. Use the company site's search facility to query the names of the hiring manager and any others on your interview dance card. You may retrieve bio pages or press releases that give you insight into their most visible activities at the company. "Learning about the interviewer is probably the most valuable thing you can do," says Ron Fry, author of 101 Great Answers to the Toughest Interview Questions.
Research Employers
Next, get some vital statistics and independent perspectives on your prospective employer. Hoover's Online, for one, provides capsule descriptions, financial data and a list of competitors for thousands of large corporations.
Your 401k or mutual fund account with a major broker likely provides more detailed research on publicly traded companies and industries, free of charge. "You may be able to go to competitors for the prospective employer's financials," says Joyce Lain Kennedy, Los Angeles Times career columnist and author of Job Interviews for Dummies.
News Sources
Now broaden your perspective and see what general-interest and business publications and Web sites are writing about the employer and its industry. You can find a wide range of media outlets at NewsLink, notes Kennedy. Search national publications for news on major corporations; use hometown newspapers to learn about small businesses and how big businesses interact with their local communities. Refdesk andbizjournals.com also offer gateways to journalism on companies and industries.
Trade Journals
Taking cues from your research so far, drill down into your target company and its place in the industry by looking at trade journals and other specialized publications. "Get a few months of the relevant trade journal," advises Fry. "You're going to find out about new products and what the trade is saying about the company."
You may find hard copies of trade journals at university or public libraries. Some journals are available for free or by subscription through their own Web sites; the full text of thousands more is available through periodical databases like ProQuest and InfoTrac. You may even be able to access InfoTrac for free via the Web, using just the membership number on your public library card. Contact your local library for details.
Industry Directories
By now, you've probably got some very specific questions regarding the employer and your potential role there. Go directly to the grapevine by making contact with other workers at your target company or elsewhere in the industry. "If you belong to a professional organization, go to its directory," says Marilyn Pincus, author of Interview Strategies that Lead to Job Offers. If you don't belong, consider joining; check out the American Society of Association Executives' Gateway to Associations Directory.
Of course, you can also use networking services to get in touch with people inside the company.
Finally, if you hope to have a company ogling you, try Googling them first. You just might come up with a nugget you would have missed otherwise.
While you're at it, Google yourself to make sure you and the interviewer are on the same page. Because if he's savvy, he's doing unto you as you've just done unto him and his company.
Articles in This Feature: Click for further info - if the link has expired search the web with the title
Related Articles: click green
Study all these articles for your better success
Article 1 of 2 for everyone
Article 2 of 2 next below with some specifics for you who just graduated from college
Do Your Homework Before the Big Interview
Click green for further info
Once upon a time, a job seeker landed an interview, skimmed the prospective employer's annual report, wowed the hiring manager with a few company facts and strolled into his dream job.
That late-'90s fairy tale rarely comes true these days. With employers in more control of the labor market, candidates feel compelled to give it their all in their interview preparation. And that includes mounting a broad, deep search for relevant information about the position, the company, the industry and even the interviewer.
Luckily for you, diverse resources, many of them free or cheap and available on the Internet, enable you to achieve that competitive edge if you're willing to put your nose to the grindstone -- or computer monitor.
Employers' Web Sites
Your prospective employer's corporate Web site is the best place to see the company as it wants to be seen. Do check out that annual report, but also look for a "press room" or "company news" page that links to recent news releases. As you mull all this information, consider how the open position, as detailed in the job posting, relates to the company's mission.
But don't stop there. Use the company site's search facility to query the names of the hiring manager and any others on your interview dance card. You may retrieve bio pages or press releases that give you insight into their most visible activities at the company. "Learning about the interviewer is probably the most valuable thing you can do," says Ron Fry, author of 101 Great Answers to the Toughest Interview Questions.
Research Employers
Next, get some vital statistics and independent perspectives on your prospective employer. Hoover's Online, for one, provides capsule descriptions, financial data and a list of competitors for thousands of large corporations.
Your 401k or mutual fund account with a major broker likely provides more detailed research on publicly traded companies and industries, free of charge. "You may be able to go to competitors for the prospective employer's financials," says Joyce Lain Kennedy, Los Angeles Times career columnist and author of Job Interviews for Dummies.
News Sources
Now broaden your perspective and see what general-interest and business publications and Web sites are writing about the employer and its industry. You can find a wide range of media outlets at NewsLink, notes Kennedy. Search national publications for news on major corporations; use hometown newspapers to learn about small businesses and how big businesses interact with their local communities. Refdesk andbizjournals.com also offer gateways to journalism on companies and industries.
Trade Journals
Taking cues from your research so far, drill down into your target company and its place in the industry by looking at trade journals and other specialized publications. "Get a few months of the relevant trade journal," advises Fry. "You're going to find out about new products and what the trade is saying about the company."
You may find hard copies of trade journals at university or public libraries. Some journals are available for free or by subscription through their own Web sites; the full text of thousands more is available through periodical databases like ProQuest and InfoTrac. You may even be able to access InfoTrac for free via the Web, using just the membership number on your public library card. Contact your local library for details.
Industry Directories
By now, you've probably got some very specific questions regarding the employer and your potential role there. Go directly to the grapevine by making contact with other workers at your target company or elsewhere in the industry. "If you belong to a professional organization, go to its directory," says Marilyn Pincus, author of Interview Strategies that Lead to Job Offers. If you don't belong, consider joining; check out the American Society of Association Executives' Gateway to Associations Directory.
Of course, you can also use networking services to get in touch with people inside the company.
Finally, if you hope to have a company ogling you, try Googling them first. You just might come up with a nugget you would have missed otherwise.
While you're at it, Google yourself to make sure you and the interviewer are on the same page. Because if he's savvy, he's doing unto you as you've just done unto him and his company.
Articles in This Feature: Click for further info - if the link has expired search the web with the title
Related Articles: click green
Study all these articles for your better success
- 100 Potential Interview Questions
- Focus on Your Strengths
- Six Key Interview Answers Employers Need to Hear
- Recruiter Roundtable: The Weakness Question
- How Would You Describe Your Personality?
- Make a Great First Impression home
- Last-Minute Interview Preparation
- Six Key Interview Answers Employers Need to Hear
- 100 Potential Interview Questions
- Nonverbal Communications: Escape the Pitfalls
- Job Interview Tips
- Steer Clear of Interviewers' Pet Peeves
- Assessing Your Skills
- Related Articles:
- Job Interview Information
- Six Must-Ask Interview Questions
- Own the Interview: 10 Questions to Ask
- Your Turn to Ask Questions
- All-Time Deal-Killing Questions to Ask on Your Interview
- Click green for further info
- Source: Internet, various sources _____________________________________________
Please notice:
Article 1 of 2 for everyone just above
Article 2 of 2 here with some specifics for you who just graduated from college
You’ve just graduated from college and are entering a tough job market
What kind of interview preparation will help you stand out?
Before the Job Interview, Do Your Homework
Click green for further info
Research the company and the industry, says Adrien Fraise, founder of Modern Guild, which provides online career coaching to college students and high school seniors. “Know the major industry trends and news,” he says, and be able to talk about how they could affect the company.
Find out who runs the company and how they got there. “Look at their profiles on LinkedIn and see if you find a common bond,” says David Lewis, the chief executive of OperationsInc., a human resources outsourcing and consulting firm in Norwalk, Conn. “If you are able to say, ‘I went to the same college as you’ or ‘I also majored in psychology,’ that demonstrates you really did your homework.”
Familiarize yourself with the company’s products or services and look for ways, even small ones, to possibly expand or add value. Note the positives, then talk about opportunities you see, says Moses Lee, C.E.O. of Seelio, a platform that lets students and recent college graduates post samples of their work and search for jobs.
“Let’s say you are talking about a recent marketing campaign,” he says. “You could say, ‘I enjoyed that campaign and if I had the opportunity to work on it, I might frame it so it resonated with millennials, too.’ ”
Q. What questions can you expect, and how can you prepare to answer them?
A. You may be asked to walk the interviewer through your résumé, so prepare concise, articulate anecdotes to illustrate what you did or learned in each experience you’ve listed, Mr. Fraise says. Highlight what you achieved and the skills you used — and how you want to keep using them. “Rehearse in front of the mirror and then in front of others,” he says. “Be so comfortable with it, it doesn’t sound scripted.”
Interviewers often ask questions like “Can you give me an example of when you had to work as part of a team or learned something new quickly?” Mr. Lewis says your examples might come from experiences in a club, fraternity or sorority. “Did you organize a membership push? Plan events? Do recruiting?” he says.
If you’re asked a question like “Why did you choose your college major?” be complete in your answer. “Don’t just say ‘because I really like psychology,’ “ Mr. Lewis advises. Instead, note from a business perspective why you liked the subject. “Maybe you found the classes to be informative about human behavior, which is a key to success in anyone’s business,” he says.
Take along samples of your work — whether from an internship, a class or an extracurricular activity — in a folder or on a laptop computer or tablet.
And always prepare questions to ask at the end of the interview, says Alexa Hamill, American campus recruiting leader forPricewaterhouseCoopers in Philadelphia. Questions on the interviewer’s own career progress are a way to conclude, she says: “What opportunities have been presented to them? How were they trained and developed? This shows you are looking at the job as something potentially long term.”
Q. You want to exude confidence and maturity. What are some ways to bolster your confidence before an interview?
A. Develop a personal elevator pitch — a 30-second to one-minute summary of your academic career, your interests and what you did outside school — and correlate that to the job you want, Ms. Hamill says.
PricewaterhouseCoopers offers a free tool on its site to help think through those questions, she says.
Q. What are some basic interview etiquette rules, in terms of dress and behavior?
A. Turn off your cellphone before walking into the company’s offices, and don’t take it out during your interview. “Don’t remind me you’re a 22-year-old,” Mr. Lewis says. “Have a firm handshake, maintain eye contact and don’t fidget.”
Remember not to talk about inappropriate topics like a recent fraternity party or something you saw on Facebook, Ms. Hamill says. When speaking to interviewers, “face them with your knees pointing toward them, sit up straight and stay engaged,” she says. After the interview, send a thank-you e-mail and include a link to your online portfolio or Web site if you have one.
Unless the company recommends dressing casually or informally for the interview, men should wear a suit and tie and women should wear a suit or skirt and blouse, Mr. Lewis says. You may be the only one in the office dressed that way, he says, but it’s usually better not “to walk into an interview dressed as if you are already part of the team.”
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Source: NYT
_____________________________________________________
Last-Minute Interview Preparation
Even if you have less than a day before your job interview, you can outshine the competition with a little interview preparation. The following four tasks will take you about four hours (plus five minutes) to complete, and you'll walk into the interview confident you'll be successful.
Conduct Basic Interview Research
To prepare for an interview, find out as much as you can beforehand. Call the person who scheduled your interview and ask:
Learn About the Company Online
Do some fast Web research, which will give you something to talk about in addition to the job description. Go to the employer's Web site, or search the Web for information such as:
Think of Some Stories
Be ready to answer typical interview questions with a story about yourself. To prepare, write down and memorize three achievement stories. Tell about times you've really felt proud of an achievement at work or school. These stories demonstrate all those hard-to-measure qualities like judgment, initiative, teamwork or leadership. Wherever possible, quantify what you've done, e.g., "increased sales by 20 percent," "cut customer call waiting time in half," "streamlined delivery so that most customers had their job done in two days."
By the way, nonwork achievement stories are good too; if you volunteer for the local food pantry, write down a time you overcame a big challenge or a crisis there.
Achievement stories make you memorable, which is what you want. There's an exercise in Monster Careers: Interviewing called "Mastering the Freestyle Interview," which helps you develop these stories into compelling sales points.
Take the time you need -- at least three hours on this task.
Pick Your Outfit, and Go to Bed Early
Lay out your interview outfit the night before, get a good night's rest, and always get an early start. The last thing you want is to waste all of your interview preparation by arriving flustered and panicked because you couldn't find a parking space.
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Source: Internet, various sources
___________________________________
Important info for every job seeker ready for the interview
How to Tap Dance Around Illegal Interview Questions
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By Arnie Fertig You've submitted a stellar résumé and shined in your phone screen interview. You've prepared stories and crafted questions that will demonstrate your skills and accomplishments when you meet the hiring manager face to face. You know in your heart that, if given the opportunity, you have the ability to succeed at the job you'll discuss. You're set to knock the ball out of the park.
At the same time, you might be a woman, 40 years old or older, a person of color or have an obvious disability. Perhaps you have a distinct foreign accent, or your name is uncommon and difficult to pronounce. Maybe you display an affect that is often associated with a particular sexual orientation.
And then it happens. You are in the midst of the job interview, and as the conversation progresses the hiring authority poses a question like one of these:
--When do you plan on starting a family?
--In what country were you born?
--Are you gay?
--What is your religion?
--Do you have a neurological or degenerative disease that caused you to limp into this room?
--How many years will it be before you qualify for social security?
You will likely assume that these questions reflect employment bias, however they might instead arise because the interviewer is inexperienced and isn't familiar with what can and can't be discussed. Whatever the case might be, each of these questions touches on a legally protected class and has no place in a job interview.
How do you respond?
If you directly challenge the interviewer you may win the point but lose the job opportunity. Doing so is likely to make the interviewer view you as combative - a trait that, in and of itself, can disqualify a job seeker.
Larry Bodine, editor-in-chief of Lawyers.com, offers two alternative approaches to deal with the situation:
Respond with a question of your own. "That's an interesting question. I've never been asked that in a job interview. Can you tell me why you asked?" Or, put it this way: "I'm happy to answer that question. But can you help me understand how that relates to the job?"
It is fair for an employer to ask a question that relates to a candidate's ability to accomplish the work intrinsic to any specific job. These questions give the interviewer the ability to justify the question - if at all possible. And, if not, they can give the interviewer a necessary but friendly prod to get back on solid ground.
Answer the concern behind the question. The hiring manager might ask the illegal question: "Do you have kids?" Rather than challenge the question itself, you might determine the issue behind it. For example, this instance might be rooted in the company's experience of high employee absenteeism due to child care issues. Bodine suggests you respond by saying simply: "There is nothing in my family life that will get in the way of doing the job."
Regardless if you take one or the other of Bodine's suggested responses, or go a different route, it is important to take control of the situation. You should try to keep the focus on the job, the company, your abilities, your accomplishments and how you represent a strong fit. And once your interview has concluded, you will be able to consider another response.
Evaluate the situation and what is in your best interest. Ask yourself if you believe the offending question was the product of real bias, or an unintentional misstep on the part of an inexperienced interviewer. If it is the former, is this really the kind of company at which you want to spend 40 hours every week? Is it a job you still want to pursue, or do you want to just move on to the next opportunity? Is the offense sufficiently clear cut and egregious so as to merit a formal complaint?
As a job hunter, you should take the time to educate yourself about what kinds of discrimination are prohibited by law. Sometimes, there are things you think ought to be illegal, but they are not. The U.S. Equal Employment Opportunity Commission (EEOC) enforces the laws that prohibit employment discrimination based on: age (for workers older than 40), disability, genetic information, national origin, sex, sexual orientation, race and religion.
For information about current federal laws and regulations regarding workplace discrimination, visit the EEOC's site: http://www.eeoc.gov/employees/. For specific information about your particular situation, consult an attorney who specializes in employment law.
Unfortunately, we can't legislate away boorishness (= the manner of a rude or insensitive person) and all forms of prejudice. But there are effective ways to respond to it when it occurs. By responding intelligently, you maintain your own dignity and maximize the possibility of getting the job of your dreams.
Happy hunting!
Click green for further info
Source:
Arnie Fertig is the head coach of JOBHUNTERCOACH.COM, where he utilizes his extensive background in HR Staffing and as owner of a recruiting company to help mid-career job-hunters land their next job. Arnie provides one-to-one coaching services to individuals throughout the U.S. in all aspects of the job hunt, including: resume writing, personal branding, utilizing social media, enhancing networking skills, preparing for interviews, and negotiating compensation.
______________________________________________________
Article 1 of 2 for everyone just above
Article 2 of 2 here with some specifics for you who just graduated from college
You’ve just graduated from college and are entering a tough job market
What kind of interview preparation will help you stand out?
Before the Job Interview, Do Your Homework
Click green for further info
Research the company and the industry, says Adrien Fraise, founder of Modern Guild, which provides online career coaching to college students and high school seniors. “Know the major industry trends and news,” he says, and be able to talk about how they could affect the company.
Find out who runs the company and how they got there. “Look at their profiles on LinkedIn and see if you find a common bond,” says David Lewis, the chief executive of OperationsInc., a human resources outsourcing and consulting firm in Norwalk, Conn. “If you are able to say, ‘I went to the same college as you’ or ‘I also majored in psychology,’ that demonstrates you really did your homework.”
Familiarize yourself with the company’s products or services and look for ways, even small ones, to possibly expand or add value. Note the positives, then talk about opportunities you see, says Moses Lee, C.E.O. of Seelio, a platform that lets students and recent college graduates post samples of their work and search for jobs.
“Let’s say you are talking about a recent marketing campaign,” he says. “You could say, ‘I enjoyed that campaign and if I had the opportunity to work on it, I might frame it so it resonated with millennials, too.’ ”
Q. What questions can you expect, and how can you prepare to answer them?
A. You may be asked to walk the interviewer through your résumé, so prepare concise, articulate anecdotes to illustrate what you did or learned in each experience you’ve listed, Mr. Fraise says. Highlight what you achieved and the skills you used — and how you want to keep using them. “Rehearse in front of the mirror and then in front of others,” he says. “Be so comfortable with it, it doesn’t sound scripted.”
Interviewers often ask questions like “Can you give me an example of when you had to work as part of a team or learned something new quickly?” Mr. Lewis says your examples might come from experiences in a club, fraternity or sorority. “Did you organize a membership push? Plan events? Do recruiting?” he says.
If you’re asked a question like “Why did you choose your college major?” be complete in your answer. “Don’t just say ‘because I really like psychology,’ “ Mr. Lewis advises. Instead, note from a business perspective why you liked the subject. “Maybe you found the classes to be informative about human behavior, which is a key to success in anyone’s business,” he says.
Take along samples of your work — whether from an internship, a class or an extracurricular activity — in a folder or on a laptop computer or tablet.
And always prepare questions to ask at the end of the interview, says Alexa Hamill, American campus recruiting leader forPricewaterhouseCoopers in Philadelphia. Questions on the interviewer’s own career progress are a way to conclude, she says: “What opportunities have been presented to them? How were they trained and developed? This shows you are looking at the job as something potentially long term.”
Q. You want to exude confidence and maturity. What are some ways to bolster your confidence before an interview?
A. Develop a personal elevator pitch — a 30-second to one-minute summary of your academic career, your interests and what you did outside school — and correlate that to the job you want, Ms. Hamill says.
PricewaterhouseCoopers offers a free tool on its site to help think through those questions, she says.
Q. What are some basic interview etiquette rules, in terms of dress and behavior?
A. Turn off your cellphone before walking into the company’s offices, and don’t take it out during your interview. “Don’t remind me you’re a 22-year-old,” Mr. Lewis says. “Have a firm handshake, maintain eye contact and don’t fidget.”
Remember not to talk about inappropriate topics like a recent fraternity party or something you saw on Facebook, Ms. Hamill says. When speaking to interviewers, “face them with your knees pointing toward them, sit up straight and stay engaged,” she says. After the interview, send a thank-you e-mail and include a link to your online portfolio or Web site if you have one.
Unless the company recommends dressing casually or informally for the interview, men should wear a suit and tie and women should wear a suit or skirt and blouse, Mr. Lewis says. You may be the only one in the office dressed that way, he says, but it’s usually better not “to walk into an interview dressed as if you are already part of the team.”
Click green for further info
Source: NYT
_____________________________________________________
Last-Minute Interview Preparation
Even if you have less than a day before your job interview, you can outshine the competition with a little interview preparation. The following four tasks will take you about four hours (plus five minutes) to complete, and you'll walk into the interview confident you'll be successful.
Conduct Basic Interview Research
To prepare for an interview, find out as much as you can beforehand. Call the person who scheduled your interview and ask:
- Who will you be talking to? Will you meet the manager you'd work for, or will you just talk to HR? What are the interviewer's expectations?
- What's the dress code? Dress better than suggested. Most times, it's best to wear a professional suit. You'd be amazed how many candidates show up looking like they're going to class, not presenting a professional demeanor.
- Get directions to the office. Plan to leave early. Keep a phone number to call if you get stuck on the bus or in traffic. If you arrive late and stressed, the interview will not go well.
- If you don't have a detailed job description, ask for one.
Learn About the Company Online
Do some fast Web research, which will give you something to talk about in addition to the job description. Go to the employer's Web site, or search the Web for information such as:
- How big is the company in terms of annual sales or employees?
- What does the company say about its products or services?
- What recent news (such as a new product, a press release, an interview with the CEO) can you discuss?
- If the company is public, the boilerplate at the bottom of its press releases will tell you a lot.
Think of Some Stories
Be ready to answer typical interview questions with a story about yourself. To prepare, write down and memorize three achievement stories. Tell about times you've really felt proud of an achievement at work or school. These stories demonstrate all those hard-to-measure qualities like judgment, initiative, teamwork or leadership. Wherever possible, quantify what you've done, e.g., "increased sales by 20 percent," "cut customer call waiting time in half," "streamlined delivery so that most customers had their job done in two days."
By the way, nonwork achievement stories are good too; if you volunteer for the local food pantry, write down a time you overcame a big challenge or a crisis there.
Achievement stories make you memorable, which is what you want. There's an exercise in Monster Careers: Interviewing called "Mastering the Freestyle Interview," which helps you develop these stories into compelling sales points.
Take the time you need -- at least three hours on this task.
Pick Your Outfit, and Go to Bed Early
Lay out your interview outfit the night before, get a good night's rest, and always get an early start. The last thing you want is to waste all of your interview preparation by arriving flustered and panicked because you couldn't find a parking space.
Study all these articles - Click green or search the web with title
- Interview Take-Along Checklist
- Interview Presentation: Perception vs. Reality
- Interview Cheat Sheet
- You Can Survive the Behavioral Interview
Click green for further info
Source: Internet, various sources
___________________________________
Important info for every job seeker ready for the interview
How to Tap Dance Around Illegal Interview Questions
Click green for further info
By Arnie Fertig You've submitted a stellar résumé and shined in your phone screen interview. You've prepared stories and crafted questions that will demonstrate your skills and accomplishments when you meet the hiring manager face to face. You know in your heart that, if given the opportunity, you have the ability to succeed at the job you'll discuss. You're set to knock the ball out of the park.
At the same time, you might be a woman, 40 years old or older, a person of color or have an obvious disability. Perhaps you have a distinct foreign accent, or your name is uncommon and difficult to pronounce. Maybe you display an affect that is often associated with a particular sexual orientation.
And then it happens. You are in the midst of the job interview, and as the conversation progresses the hiring authority poses a question like one of these:
--When do you plan on starting a family?
--In what country were you born?
--Are you gay?
--What is your religion?
--Do you have a neurological or degenerative disease that caused you to limp into this room?
--How many years will it be before you qualify for social security?
You will likely assume that these questions reflect employment bias, however they might instead arise because the interviewer is inexperienced and isn't familiar with what can and can't be discussed. Whatever the case might be, each of these questions touches on a legally protected class and has no place in a job interview.
How do you respond?
If you directly challenge the interviewer you may win the point but lose the job opportunity. Doing so is likely to make the interviewer view you as combative - a trait that, in and of itself, can disqualify a job seeker.
Larry Bodine, editor-in-chief of Lawyers.com, offers two alternative approaches to deal with the situation:
Respond with a question of your own. "That's an interesting question. I've never been asked that in a job interview. Can you tell me why you asked?" Or, put it this way: "I'm happy to answer that question. But can you help me understand how that relates to the job?"
It is fair for an employer to ask a question that relates to a candidate's ability to accomplish the work intrinsic to any specific job. These questions give the interviewer the ability to justify the question - if at all possible. And, if not, they can give the interviewer a necessary but friendly prod to get back on solid ground.
Answer the concern behind the question. The hiring manager might ask the illegal question: "Do you have kids?" Rather than challenge the question itself, you might determine the issue behind it. For example, this instance might be rooted in the company's experience of high employee absenteeism due to child care issues. Bodine suggests you respond by saying simply: "There is nothing in my family life that will get in the way of doing the job."
Regardless if you take one or the other of Bodine's suggested responses, or go a different route, it is important to take control of the situation. You should try to keep the focus on the job, the company, your abilities, your accomplishments and how you represent a strong fit. And once your interview has concluded, you will be able to consider another response.
Evaluate the situation and what is in your best interest. Ask yourself if you believe the offending question was the product of real bias, or an unintentional misstep on the part of an inexperienced interviewer. If it is the former, is this really the kind of company at which you want to spend 40 hours every week? Is it a job you still want to pursue, or do you want to just move on to the next opportunity? Is the offense sufficiently clear cut and egregious so as to merit a formal complaint?
As a job hunter, you should take the time to educate yourself about what kinds of discrimination are prohibited by law. Sometimes, there are things you think ought to be illegal, but they are not. The U.S. Equal Employment Opportunity Commission (EEOC) enforces the laws that prohibit employment discrimination based on: age (for workers older than 40), disability, genetic information, national origin, sex, sexual orientation, race and religion.
For information about current federal laws and regulations regarding workplace discrimination, visit the EEOC's site: http://www.eeoc.gov/employees/. For specific information about your particular situation, consult an attorney who specializes in employment law.
Unfortunately, we can't legislate away boorishness (= the manner of a rude or insensitive person) and all forms of prejudice. But there are effective ways to respond to it when it occurs. By responding intelligently, you maintain your own dignity and maximize the possibility of getting the job of your dreams.
Happy hunting!
Click green for further info
Source:
Arnie Fertig is the head coach of JOBHUNTERCOACH.COM, where he utilizes his extensive background in HR Staffing and as owner of a recruiting company to help mid-career job-hunters land their next job. Arnie provides one-to-one coaching services to individuals throughout the U.S. in all aspects of the job hunt, including: resume writing, personal branding, utilizing social media, enhancing networking skills, preparing for interviews, and negotiating compensation.
______________________________________________________
What Employers Can Deduce About You
30 Seconds into the Job Interview
"They're going to hire you because you can solve their problems."
Go back to the job description and draft a checklist, with a focus on how you'll be able to handle
each responsibility on it, as well as support your boss in whatever way he/she needs
Deduce = draw as a logical conclusion
infer - conclude - gather - derive
Click green for further info
Whether You Value Your Time More Than Anyone Else's
You think you'll show how eager and prepared you are by arriving 15 or more minutes early, but the manager--who's usually notified of your arrival shortly after you check in with the front desk--suddenly feels pressured to meet with you, and the receptionist has to figure out what to do with you in the meantime, explains Jenny Blake, Life After College author and former career development manager at Google. Most hiring managers are overworked, overstressed and overscheduled. By showing up five to 10 minutes before the interview, you're demonstrating not only that you understand that, but also that you're doing your part to be one less thing for him or her to worry about.
Whether You Know How to Pass the Test
You've scanned the company's mission statement and "About" page on the website, but have you translated those vague messages about the importance of "teamwork" and "creativity" into clues that can define your interview, especially how you'll demonstrate those values? In This Is How to Get Your Next Job, author Andrea Kay quotes VonChurch CEO Alex Churchill, who says that every interviewee is offered a glass of water as soon as he or she walks in the door: "If you don't say thank you after being offered the water, you've failed the interview right there." Politeness is among the company's core values, and like many managers, he wants to see candidates who display those values from the start.
Whether You Think Like a Sidekick
Most candidates have a checklist of things they want to convey in an interview: (a) where they've worked, (b) how much they want the job, (c) how productive they are, and (d) a reiteration of all of the above. Too bad managers don't hire based only on these things, says Kay. "They're going to hire you because you can solve their problems." Go back to the job description and draft a new checklist, with a focus on how you'll be able to handle each responsibility on it, as well as support your boss in whatever way she needs.
Whether You'll Be the Next Office Troll
Two seemingly nonchalant questions most employers ask before the interview even starts carry a lot more weight than you'd think: "How about this weather?" and "Did you have a hard time finding us?" Although it might seem like an easy way to commiserate (= sympathize) --and bond--with strangers, bringing up the temperature or traffic tends to backfire here, even if you've had to navigate an unfamiliar office complex on a massively humid day.
"The interviewer knows very little about you, so he/she's soaking up every little thing to assess who you are," says Allison Green of AskAManager.com. When you gripe about the small stuff, you might as well be saying, "If you hire me, I will respond to every request with an eye-roll and a heavy sigh."
Whether You Know How to Pack a Bag
While it's always good to have work samples on hand to illustrate a point, "when you take out your portfolio right away, you're hijacking the interview, and it sends a strong signal that you're going to be a management problem down the road," says Martin Yate, author of Knock 'Em Dead: Secrets & Strategies for First-Time Job Seekers. Save it for later in the interview, when you're answering a question that can be best explained using the visuals. Beyond that, copies of your resume, pens and a notepad are critical to have on hand--though they come with a caveat as well. Take notes only if there's something you'll need to follow up on, or if the interviewer has to answer a call mid-conversation--that way you can remind him where you left off, Yate recommends. Otherwise, keep the pen out of your hands (especially if you're prone to absent-mindedly clicking, chewing or twirling it).
Whether You Know How to Put on the Right Shoes
One final note: You've heard before how important it is to dress appropriately. But in the era of business casual, trendy business and startup casual, every office has its own unwritten rules about how people dress at work, and no two offices are quite the same. Have lunch just outside the office a few days before the interview, and pay attention to what people are wearing as they enter and exit the building, recommends Yate. The sharpest-dressed person there is your new style icon.
Click green for further info
Source: Internet
_____________________________________________________________
30 Seconds into the Job Interview
"They're going to hire you because you can solve their problems."
Go back to the job description and draft a checklist, with a focus on how you'll be able to handle
each responsibility on it, as well as support your boss in whatever way he/she needs
Deduce = draw as a logical conclusion
infer - conclude - gather - derive
Click green for further info
Whether You Value Your Time More Than Anyone Else's
You think you'll show how eager and prepared you are by arriving 15 or more minutes early, but the manager--who's usually notified of your arrival shortly after you check in with the front desk--suddenly feels pressured to meet with you, and the receptionist has to figure out what to do with you in the meantime, explains Jenny Blake, Life After College author and former career development manager at Google. Most hiring managers are overworked, overstressed and overscheduled. By showing up five to 10 minutes before the interview, you're demonstrating not only that you understand that, but also that you're doing your part to be one less thing for him or her to worry about.
Whether You Know How to Pass the Test
You've scanned the company's mission statement and "About" page on the website, but have you translated those vague messages about the importance of "teamwork" and "creativity" into clues that can define your interview, especially how you'll demonstrate those values? In This Is How to Get Your Next Job, author Andrea Kay quotes VonChurch CEO Alex Churchill, who says that every interviewee is offered a glass of water as soon as he or she walks in the door: "If you don't say thank you after being offered the water, you've failed the interview right there." Politeness is among the company's core values, and like many managers, he wants to see candidates who display those values from the start.
Whether You Think Like a Sidekick
Most candidates have a checklist of things they want to convey in an interview: (a) where they've worked, (b) how much they want the job, (c) how productive they are, and (d) a reiteration of all of the above. Too bad managers don't hire based only on these things, says Kay. "They're going to hire you because you can solve their problems." Go back to the job description and draft a new checklist, with a focus on how you'll be able to handle each responsibility on it, as well as support your boss in whatever way she needs.
Whether You'll Be the Next Office Troll
Two seemingly nonchalant questions most employers ask before the interview even starts carry a lot more weight than you'd think: "How about this weather?" and "Did you have a hard time finding us?" Although it might seem like an easy way to commiserate (= sympathize) --and bond--with strangers, bringing up the temperature or traffic tends to backfire here, even if you've had to navigate an unfamiliar office complex on a massively humid day.
"The interviewer knows very little about you, so he/she's soaking up every little thing to assess who you are," says Allison Green of AskAManager.com. When you gripe about the small stuff, you might as well be saying, "If you hire me, I will respond to every request with an eye-roll and a heavy sigh."
Whether You Know How to Pack a Bag
While it's always good to have work samples on hand to illustrate a point, "when you take out your portfolio right away, you're hijacking the interview, and it sends a strong signal that you're going to be a management problem down the road," says Martin Yate, author of Knock 'Em Dead: Secrets & Strategies for First-Time Job Seekers. Save it for later in the interview, when you're answering a question that can be best explained using the visuals. Beyond that, copies of your resume, pens and a notepad are critical to have on hand--though they come with a caveat as well. Take notes only if there's something you'll need to follow up on, or if the interviewer has to answer a call mid-conversation--that way you can remind him where you left off, Yate recommends. Otherwise, keep the pen out of your hands (especially if you're prone to absent-mindedly clicking, chewing or twirling it).
Whether You Know How to Put on the Right Shoes
One final note: You've heard before how important it is to dress appropriately. But in the era of business casual, trendy business and startup casual, every office has its own unwritten rules about how people dress at work, and no two offices are quite the same. Have lunch just outside the office a few days before the interview, and pay attention to what people are wearing as they enter and exit the building, recommends Yate. The sharpest-dressed person there is your new style icon.
Click green for further info
Source: Internet
_____________________________________________________________
Six Interview Mistakes
Click green for further info
Most candidates expect to be interrogated. An interrogation occurs when one person asks all the questions and the other gives the answers. An interview is a business conversation in which both people ask and respond to questions. Candidates who expect to be interrogated avoid asking questions, leaving the interviewer in the role of reluctant interrogator.
2. Making a So-Called Weakness Seem Positive
Interviewers frequently ask candidates, "What are your weaknesses?" Conventional interview wisdom dictates that you highlight a weakness like "I'm a perfectionist," and turn it into a positive. Interviewers are not impressed, because they've probably heard the same answer a hundred times. If you are asked this question, highlight a skill that you wish to improve upon and describe what you are doing to enhance your skill in this area. Interviewers don't care what your weaknesses are. They want to see how you handle the question and what your answer indicates about you.
3. Failing to Ask Questions
Every interview concludes with the interviewer asking if you have any questions. The worst thing to say is that you have no questions. Having no questions prepared indicates you are not interested and not prepared. Interviewers are more impressed by the questions you ask than the selling points you try to make. Before each interview, make a list of five questions you will ask. "I think a good question is, ‘Can you tell me about your career?'" says Kent Kirch, director of global recruiting at Deloitte. "Everybody likes to talk about themselves, so you're probably pretty safe asking that question."
4. Researching the Company But Not Yourself
Candidates intellectually prepare by researching the company. Most job seekers do not research themselves by taking inventory of their experience, knowledge and skills. Formulating a list of accomplishments prepares you to immediately respond to any question about your experience. You must be prepared to discuss any part of your background. Creating your talent inventory refreshes your memory and helps you immediately remember experiences you would otherwise have forgotten during the interview.
5. Leaving Your Cellphone On
We may live in a wired, always-available society, but a ringing cellphone is not appropriate for an interview. Turn it off before you enter the company.
6. Waiting for a Call
Time is your enemy after the interview. After you send a thank-you letter to every interviewer, follow up a couple of days later with either a question or additional information. Try to contact the person who can hire you, and assume that everyone you met with has some say in the process. Additional information can be details about your talents, a recent competitor's press release or industry trends. Your intention is to keep everyone's memory of you fresh.
Click green for further info
Source: Internet, various sources
____________________________________
Job Interviewing:
8 Things to Do and 8 Things to Avoid
If you're out of work, job prospects may look grim. But hey, at least you aren't the guy getting arrested during an interview. Here's some advice, including what to avoid.
Looking for work? Look on the bright side. You’re smarter than at least some of the competition.
An (click: annual CareerBuilder survey of more than 3,000 hiring managers highlighted some memorable job-interviewing moments from some candidates we can only assume didn’t get hired. Our favorites…
Since you’d never do anything that stupid, here are some practical tips from the CareerBuilder survey…
Click green for further inf0
Source: MoneyTalks News
_____________________________________
How Not to Land a Job: 18 Interview No-Nos
Dressing inappropriately and badmouthing former employers are well-known job interview no-nos. But many of us are still committing these basic mistakes – along with much more bizarre ones. Like hugging the interviewer.
According to a recent CareerBuilder survey of 2,482 hiring managers, the rebounding economy may be to blame.
“The good news is that the number of open jobs continues to improve month over month,” said Rosemary Haefner, a vice president at CareerBuilder. “However, competition will remain high for some time to come.”
And with high competition comes high pressure, which may be causing these costly job interviewing-mistakes. The most outrageous ones reported by hiring managers were…
Click green for further info
Source: MoneyTalks News
_________________________________
Click green for further info
Most candidates expect to be interrogated. An interrogation occurs when one person asks all the questions and the other gives the answers. An interview is a business conversation in which both people ask and respond to questions. Candidates who expect to be interrogated avoid asking questions, leaving the interviewer in the role of reluctant interrogator.
2. Making a So-Called Weakness Seem Positive
Interviewers frequently ask candidates, "What are your weaknesses?" Conventional interview wisdom dictates that you highlight a weakness like "I'm a perfectionist," and turn it into a positive. Interviewers are not impressed, because they've probably heard the same answer a hundred times. If you are asked this question, highlight a skill that you wish to improve upon and describe what you are doing to enhance your skill in this area. Interviewers don't care what your weaknesses are. They want to see how you handle the question and what your answer indicates about you.
3. Failing to Ask Questions
Every interview concludes with the interviewer asking if you have any questions. The worst thing to say is that you have no questions. Having no questions prepared indicates you are not interested and not prepared. Interviewers are more impressed by the questions you ask than the selling points you try to make. Before each interview, make a list of five questions you will ask. "I think a good question is, ‘Can you tell me about your career?'" says Kent Kirch, director of global recruiting at Deloitte. "Everybody likes to talk about themselves, so you're probably pretty safe asking that question."
4. Researching the Company But Not Yourself
Candidates intellectually prepare by researching the company. Most job seekers do not research themselves by taking inventory of their experience, knowledge and skills. Formulating a list of accomplishments prepares you to immediately respond to any question about your experience. You must be prepared to discuss any part of your background. Creating your talent inventory refreshes your memory and helps you immediately remember experiences you would otherwise have forgotten during the interview.
5. Leaving Your Cellphone On
We may live in a wired, always-available society, but a ringing cellphone is not appropriate for an interview. Turn it off before you enter the company.
6. Waiting for a Call
Time is your enemy after the interview. After you send a thank-you letter to every interviewer, follow up a couple of days later with either a question or additional information. Try to contact the person who can hire you, and assume that everyone you met with has some say in the process. Additional information can be details about your talents, a recent competitor's press release or industry trends. Your intention is to keep everyone's memory of you fresh.
Click green for further info
Source: Internet, various sources
____________________________________
Job Interviewing:
8 Things to Do and 8 Things to Avoid
If you're out of work, job prospects may look grim. But hey, at least you aren't the guy getting arrested during an interview. Here's some advice, including what to avoid.
Looking for work? Look on the bright side. You’re smarter than at least some of the competition.
An (click: annual CareerBuilder survey of more than 3,000 hiring managers highlighted some memorable job-interviewing moments from some candidates we can only assume didn’t get hired. Our favorites…
- Candidate brought a “how to interview” book with him to the interview.
- Candidate wore a Boy Scout uniform and never told interviewers why.
- Candidate was arrested by federal authorities during the interview when the background check revealed the person had an outstanding warrant.
- On the way to the interview, the candidate passed, cut-off, and flipped his middle finger at a driver who happened to be the interviewer.
- Candidate told the interviewer she wasn’t sure if the job offered was worth “starting the car for.”
Since you’d never do anything that stupid, here are some practical tips from the CareerBuilder survey…
- Research. Before the interview, read the company’s press releases and do a search for recent mentions in the news. Learn what you can about how the company operates and what its goals are, so you sound informed and can ask relevant questions. If the company has a Facebook page, message some of its fans and ask them why they like it. (Just make sure they aren’t employees – you can probably check those on LinkedIn.)
- Admit your ignorance. If you hit on a topic your research missed and don’t know how to address it, be honest. Give the best answer you can, and tell the interviewer you’ll read up or talk to the right person about it.
- Stay upbeat. What you know may or may not come across, depending on the line of questioning. But your attitude always shows, so be positive (although not fake) during an interview, even if you doubt your odds of landing the job.
- Pay attention to detail. Make sure you know the interviewer’s name, and how to say it. (Apologize and ask for the pronunciation rather than guessing.) Pay attention to their body language and facial expressions (without staring) so you know when to say more, shut up, or switch gears.
- Smell normal. Obviously shower and wear clean clothes, but skip perfume or cologne. Don’t smoke or eat right before an interview, and make sure you’re done with gum or mints.
- Avoid interruptions. Hit the bathroom before you start (another reason to show up early) and turn off your cell phone. Don’t talk over the interviewer.
- Offer examples. Be prepared to explain how you would handle hypothetical situations – preferably with similar experiences rather than your own hypotheticals.
- Be memorable in a good way. Show up early. In fact, if there’s enough time and it’s not suspicious to do so, visit the business the day before so you feel comfortable finding your way. (You might also see other job candidates, so you can dress sharper than them without overdressing.) Offer interesting anecdotes, which you can practice beforehand if necessary. And if you’re going to bring a self-help book, make it an interesting one, likeThe Complete Idiot’s Guide to Zombies.
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Source: MoneyTalks News
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How Not to Land a Job: 18 Interview No-Nos
Dressing inappropriately and badmouthing former employers are well-known job interview no-nos. But many of us are still committing these basic mistakes – along with much more bizarre ones. Like hugging the interviewer.
According to a recent CareerBuilder survey of 2,482 hiring managers, the rebounding economy may be to blame.
“The good news is that the number of open jobs continues to improve month over month,” said Rosemary Haefner, a vice president at CareerBuilder. “However, competition will remain high for some time to come.”
And with high competition comes high pressure, which may be causing these costly job interviewing-mistakes. The most outrageous ones reported by hiring managers were…
- Provided a detailed listing of how previous employer made them mad.
- Hugged hiring manager at the end of the interview.
- Ate all the candy from the candy bowl while trying to answer questions.
- Constantly bad mouthed spouse.
- Blew her nose and lined up the used tissues on the table in front of her.
- Brought a copy of their college diploma that had obviously been white-outed and their name added.
- Wore a hat that said “take this job and shove it.”
- Talked about how an affair cost him a previous job.
- Threw his beer can in the outside trashcan before coming into the reception office.
- Had a friend come in and ask “HOW MUCH LONGER?”
- Answering a cell phone or texting during the interview – reported by 71 percent of hiring managers
- Dressing inappropriately – 69 percent
- Appearing disinterested – 69 percent
- Appearing arrogant – 66 percent
- Speaking negatively about a current or previous employer – 63 percent
- Chewing gum – 59 percent
- Not providing specific answers – 35 percent
- Not asking good questions – 32 percent
- Keep it upbeat: “Many job seekers may be experiencing tougher than usual job searches in this economy. Even if your job search process has been frustrating, do what you can to remain positive and upbeat.”
- Prepare, prepare, prepare: “Before the interview, research the company by looking at the press room for recent announcements, the About Us section for company culture, and the list of products so you are familiar with their offerings. Having this knowledge will allow you to easily answer and ask questions during the interview.”
- Keep it professional, not personal: “Don’t let business decorum disappear even if the interview is in a casual setting. Refrain from discussing over-the-top personal issues and focus on the position and selling yourself.”
- Practice does make perfect: Nerves are likely to rear their head in an interview, so help calm them ahead of time by practicing. Go through common interview questions with a friend or family member and practice in front of a mirror so you can see your body language.
- Honesty is the best policy: “If questions come up that you don’t know how to answer, don’t lie or pretend you know. Admit that you may not know the answer, but then explain how you would go about finding a solution, proving your resourcefulness.”
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Source: MoneyTalks News
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Article 1 of 2 (Article 2 of 2 just below)
3 Biggest Hiring Mistakes Employers Make
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When new hires don’t work out, they end up costing companies a lot of money. This can be especially hurtful in a small-business environment. Making a bad hiring decision not only hurts your business’s bottom line, it has a negative impact on your employees and your company’s culture.
But how do you know which candidate is a good fit for your business? Matthew Bellows, CEO of Yesware, a software firm that provides cloud-based email analytics for salespeople, says you should look past the resume and interview process and imagine people working at your firm. Will they get along with other employees? If they don’t have a certain skill, are they smart enough to learn as they go?
Bellows, who has worked at six different startups, shares the three biggest mistakes he has seen employers make when hiring workers:
1. Ignoring culture fit. Too often, hiring managers will choose candidates because they have the right skills and experience, but Bellows says there should be a higher standard placed on personality fit.
“[Small-business candidates] don’t get denied because they lack a technical skill. If they’re smart enough, they’ll figure out the skill sets they need,” Bellows says. “However, we spend so much time with one another, especially in a small-business environment, that if they don’t get along with others, it’s a big deal.”
In a startup culture, a potential hire needs to be able to handle what Bellows calls “constant inevitable chaos.” One example is changing a meeting location at the last minute because of an office renovation. A good employee has to be able to handle the chaos.
2. Hiring people because they’re well-known. The problem with the “rock star” hire is that you think since they’ve already succeeded in the past, they’ll automatically succeed with you, Bellows says. But this isn’t always the case, especially if their personality doesn’t fit with your company’s culture.
“These rock stars think they’ll be running the company and you’ll end up having to bend the rules just for them. These people are expensive and have high expectations, and that isn’t always a good thing for your company.” Before you decide to commit to an expensive hire, consider the people as well as the skills they will bring to the position. Would you hire them if they didn’t have the well-known name? If not, think twice whether their “name” is enough of a reason to bring them on board.
3. Hiring the sales team before you’re ready. Bellows tells us “this is a very common error, because small businesses will look around and think that what they need to succeed is customers,” and the solution to getting customers is hiring salespeople. Although this may seem rational, when you hire salespeople before your product is scalable, you’ll run into major issues, he says.
So how do you know if your product is ready? Bellows tells us it all comes down to product development.
“Declining are the days where you can have a great sales and marketing team to make up for a mediocre product,” he tells us. “If one person on the founding team can’t bring in 10 customers on their own, then the product isn’t ready.” Basically, the product needs to be able to sell itself and you hire the sales team to manage the process—not to convince the public that your product is ready.
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Source: Internet (Article 2 of 2 just below)
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3 Biggest Hiring Mistakes Employers Make
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When new hires don’t work out, they end up costing companies a lot of money. This can be especially hurtful in a small-business environment. Making a bad hiring decision not only hurts your business’s bottom line, it has a negative impact on your employees and your company’s culture.
But how do you know which candidate is a good fit for your business? Matthew Bellows, CEO of Yesware, a software firm that provides cloud-based email analytics for salespeople, says you should look past the resume and interview process and imagine people working at your firm. Will they get along with other employees? If they don’t have a certain skill, are they smart enough to learn as they go?
Bellows, who has worked at six different startups, shares the three biggest mistakes he has seen employers make when hiring workers:
1. Ignoring culture fit. Too often, hiring managers will choose candidates because they have the right skills and experience, but Bellows says there should be a higher standard placed on personality fit.
“[Small-business candidates] don’t get denied because they lack a technical skill. If they’re smart enough, they’ll figure out the skill sets they need,” Bellows says. “However, we spend so much time with one another, especially in a small-business environment, that if they don’t get along with others, it’s a big deal.”
In a startup culture, a potential hire needs to be able to handle what Bellows calls “constant inevitable chaos.” One example is changing a meeting location at the last minute because of an office renovation. A good employee has to be able to handle the chaos.
2. Hiring people because they’re well-known. The problem with the “rock star” hire is that you think since they’ve already succeeded in the past, they’ll automatically succeed with you, Bellows says. But this isn’t always the case, especially if their personality doesn’t fit with your company’s culture.
“These rock stars think they’ll be running the company and you’ll end up having to bend the rules just for them. These people are expensive and have high expectations, and that isn’t always a good thing for your company.” Before you decide to commit to an expensive hire, consider the people as well as the skills they will bring to the position. Would you hire them if they didn’t have the well-known name? If not, think twice whether their “name” is enough of a reason to bring them on board.
3. Hiring the sales team before you’re ready. Bellows tells us “this is a very common error, because small businesses will look around and think that what they need to succeed is customers,” and the solution to getting customers is hiring salespeople. Although this may seem rational, when you hire salespeople before your product is scalable, you’ll run into major issues, he says.
So how do you know if your product is ready? Bellows tells us it all comes down to product development.
“Declining are the days where you can have a great sales and marketing team to make up for a mediocre product,” he tells us. “If one person on the founding team can’t bring in 10 customers on their own, then the product isn’t ready.” Basically, the product needs to be able to sell itself and you hire the sales team to manage the process—not to convince the public that your product is ready.
READ MORE - Click green for further info:
- 3 Dangers Of Using Personality Tests To Screen Workers
- Harvard Lecturer Explains How To Get Employees To Think Like Entrepreneurs
- The 4 Most Important Relationships You Need at Work >
Source: Internet (Article 2 of 2 just below)
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Article 2 of 2 (Article 1 of 2 just above)
The Worst Job Interview Questions Employers Can Ask
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Job seekers can find plenty of advice on what not say in an interview and how to blow their chances, but let's turn the tables and talk about some of the worst questions that interviewers ask candidates.
Interviewers, after all, are not infallible—some of them are quite bad. Here are seven of the worst questions they commonly ask.
1. "So, what's your background?" Interviewers shouldn't need to ask this question, because they should have reviewed the candidate's résumé before the interview. When an interviewer shows up unprepared, they won't be able to conduct a strong interview, and will signal to the candidate that they don't put the same value on building a great team that a truly strong manager does.
2. "What is your biggest weakness?" This question has appeared in so many interview preparation books that it's become a cliché at this point, with nearly every interviewee prepared with a canned answer for it. It rarely elicits useful information, and what's more, a good interviewer will be able to make her own judgments about a candidate's weakness. It's hardly helpful to hear "I work too much," "I'm a perfectionist," or the other disingenuous responses candidates are taught to give.
3. "What's your salary history?" Unless the interviewer is prepared to offer complete transparency when it comes to the company's salary ranges (which most employers aren't), this is an unfair question that makes most candidates uncomfortable. Furthermore, it's unnecessary. You should pay candidates based on the value of their work to your company; what previous employers paid them isn't relevant. And yes, sometimes lazy employers like to use salary history as a shorthand to determining a candidate's worth, but good companies can figure that out on their own—without expecting the candidate to answer questions that, frankly, are no one's business but hers and her accountant's.
4. "Do you think you can handle this workload?" Asking a candidate a hypothetical question isn't likely to get you useful information, and most people are smart enough to say "yes" to questions like this. Instead, better questions probe into how the candidate actually did act in the past, such as asking, "How much volume did you have to handle in your last job? How did you stay on top of it all? Tell me about a time when the volume was at its peak and how you handled it." These questions probe into how the candidate really does operate, not just how she says she will in the future.
5. "If you were a tree, what kind of tree would you be?" Also known as "What kind of animal are you most like?" and "What would I find in your refrigerator right now?" Goofy questions like these rarely elicit useful information, and they'll alienate most candidates. After all, the strongest candidates will want to spend the interview talking about their background, the job you have open, and what they might bring to it. Goofy questions will annoy most good candidates and make them question why you're wasting their time—and plenty will decide they're not a good fit with a hiring manager who hires this way.
6. "If I offered you the job, would you accept it?" Few candidates are going to answer "no" to this question, and the real answer is usually "it depends on how much the offer is for." This question doesn't garner the interviewer any real information—but does make most candidates uncomfortable.
7. "What does your husband do?" or, "What church do you go to?" or "Do you have kids?" Personal questions like these are inappropriate for interviews, which should focus on the candidate's ability to do the job. And moreover, while the questions themselves aren't illegal to ask, making a hiring decision based on the answers is—so you can't consider the responses, and most candidates with knowledge of the law will wonder if you're asking with the intent to illegally discriminate. Steer clear of personal questions and stick to the candidate's fit for the job.
Instead of asking ineffective questions like these, interviewers should spend their time probing into the candidate's qualifications—asking in-depth questions about how they've operated in the past, talking over challenges they'll face in this position and how they've responded to similar situations, giving them opportunities to simulate the work, and helping them get a better understanding of the job they would be signing up for.
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The Worst Job Interview Questions Employers Can Ask
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Job seekers can find plenty of advice on what not say in an interview and how to blow their chances, but let's turn the tables and talk about some of the worst questions that interviewers ask candidates.
Interviewers, after all, are not infallible—some of them are quite bad. Here are seven of the worst questions they commonly ask.
1. "So, what's your background?" Interviewers shouldn't need to ask this question, because they should have reviewed the candidate's résumé before the interview. When an interviewer shows up unprepared, they won't be able to conduct a strong interview, and will signal to the candidate that they don't put the same value on building a great team that a truly strong manager does.
2. "What is your biggest weakness?" This question has appeared in so many interview preparation books that it's become a cliché at this point, with nearly every interviewee prepared with a canned answer for it. It rarely elicits useful information, and what's more, a good interviewer will be able to make her own judgments about a candidate's weakness. It's hardly helpful to hear "I work too much," "I'm a perfectionist," or the other disingenuous responses candidates are taught to give.
3. "What's your salary history?" Unless the interviewer is prepared to offer complete transparency when it comes to the company's salary ranges (which most employers aren't), this is an unfair question that makes most candidates uncomfortable. Furthermore, it's unnecessary. You should pay candidates based on the value of their work to your company; what previous employers paid them isn't relevant. And yes, sometimes lazy employers like to use salary history as a shorthand to determining a candidate's worth, but good companies can figure that out on their own—without expecting the candidate to answer questions that, frankly, are no one's business but hers and her accountant's.
4. "Do you think you can handle this workload?" Asking a candidate a hypothetical question isn't likely to get you useful information, and most people are smart enough to say "yes" to questions like this. Instead, better questions probe into how the candidate actually did act in the past, such as asking, "How much volume did you have to handle in your last job? How did you stay on top of it all? Tell me about a time when the volume was at its peak and how you handled it." These questions probe into how the candidate really does operate, not just how she says she will in the future.
5. "If you were a tree, what kind of tree would you be?" Also known as "What kind of animal are you most like?" and "What would I find in your refrigerator right now?" Goofy questions like these rarely elicit useful information, and they'll alienate most candidates. After all, the strongest candidates will want to spend the interview talking about their background, the job you have open, and what they might bring to it. Goofy questions will annoy most good candidates and make them question why you're wasting their time—and plenty will decide they're not a good fit with a hiring manager who hires this way.
6. "If I offered you the job, would you accept it?" Few candidates are going to answer "no" to this question, and the real answer is usually "it depends on how much the offer is for." This question doesn't garner the interviewer any real information—but does make most candidates uncomfortable.
7. "What does your husband do?" or, "What church do you go to?" or "Do you have kids?" Personal questions like these are inappropriate for interviews, which should focus on the candidate's ability to do the job. And moreover, while the questions themselves aren't illegal to ask, making a hiring decision based on the answers is—so you can't consider the responses, and most candidates with knowledge of the law will wonder if you're asking with the intent to illegally discriminate. Steer clear of personal questions and stick to the candidate's fit for the job.
Instead of asking ineffective questions like these, interviewers should spend their time probing into the candidate's qualifications—asking in-depth questions about how they've operated in the past, talking over challenges they'll face in this position and how they've responded to similar situations, giving them opportunities to simulate the work, and helping them get a better understanding of the job they would be signing up for.
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Think of Your Big Interview as a Simple Conversation
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A lot of job seekers go into interviews expecting to be grilled. They prep for the typical interrogation techniques and practice their answers to all the usual interview questions. They have their talking points tucked away in the back of their minds.
But many job seekers fail to recognize that often the best interviews don't feel as much like interviews as they do compelling conversations.
Have you ever noticed that the best actors don't seem like they're acting? Or have you had a great day at work and then had the epiphany that it didn't feel like you were working all day? Interviewing can feel much the same way.
Think about the situation from the employer's perspective: You may be the 10th person the manager is seeing that week, and many people feel just as awkward interviewing as they do being interviewed. A comfortable exchange with someone who has similar professional interests may be a welcome relief from the regimented interviews. If you have the ability to make whomever you're talking to feel like they are simply engaged in an intriguing conversation, you could be setting yourself apart from the pack.
Prepare to Relax
None of this is to imply that you shouldn't prep yourself for an interview. To the contrary, the more versed you are on the job at hand, the more conversational -- and convincing -- you'll sound.
"In a best-case scenario, if you've done enough practice and really have a good sense of what your best professional qualifications are, then the interview should proceed on a more natural basis, because you're not nervous at that point," says Chandra Prasad, author of Outwitting the Job Market.
Your Career Is Like a Garden
Let's imagine you're a gardening fanatic, and you're at your local greenhouse. You're picking out the perfect hydrangea when you strike up a conversation with a fellow green thumb. The two of you hit it off instantly, comparing notes about the best time of year to plant, ideal fertilizing and watering techniques, and other tricks about getting your tomato vines to grow and your petunias to blossom. Before you know it, you're late for dinner at home, but the conversation was so engrossing that the time just got away from you.
Think about that conversation for a minute. You probably didn't think about it in these terms, but you were completely prepped for the conversation; after all, you spent years learning about gardening and could hold your own in the conversation. You were happy to find a friendly person who shared your passion. You imparted some knowledge and picked up a new thing or two.
You can do the same thing in interviews.
Know Your Chemistry
"Chemistry is what you are talking about," says Monster Interview Expert Marky Stein, author of Fearless Interviewing. "Having a natural conversation essentially makes the interviewer feel comfortable, and therefore makes him or her like you. It's the human element. It's all about the chemistry."
Stein cautions job seekers to "never memorize the answer to a question. That's death. It comes out canned, and you've destroyed that chemistry and spontaneity aspect of the interview." She also says that a mental mistake many candidates make is trying to make up answers to questions. "In a normal conversation, you might say something like, ‘Gee, that's a good question. I've never really thought about that. I wonder if it could be XYZ.' Why not do the same at an interview?"
Different Approaches for Different Situations
Prasad points out that no single strategy works with all interviewers. While some welcome casual conversations, others look to keep the interview a bit more formal. "I think you need to go into the interview and assess your interviewer -- see what kind of persona they have," she advises. "Judge from their mannerisms and from their initial questions what they're expecting from you and proceed fron there."
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Source: Internet, various sources
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An important interview question
What Are Your Greatest Strengths and Weaknesses?
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Marie is about to interview two candidates for the customer service manager position. Her candidates are Francine and William. As always, one of the interview questions she plans to ask is about their strengths and weaknesses.
Francine answers the question, "What are your greatest strengths and weaknesses?" with, "My strength is that I'm a hard worker. My weakness is that I get stressed when I miss a deadline because someone else dropped the ball."
This answer is unimaginative. Most people think of themselves as hard workers.
William has difficulty with the question. "I really can't think of a weakness," he begins. "Maybe I could be more focused. My strength is probably my ability to deal with people. I am pretty easygoing. I usually don't get upset easily."
This answer leads with a negative, and then moves to vague words: maybe, probably, pretty and usually.
So what is the best way to answer this common interview question?
Assessing Your Strengths
Assess your skills, and you will identify your strengths. This is an exercise worth doing before any interview. Make a list of your skills, dividing them into three categories:
Assessing Your Weaknesses
This is probably the most dreaded part of the question. Everyone has weaknesses, but who wants to admit to them, especially in an interview?
The best way to handle this question is to minimize the trait and emphasize the positive. Select a trait and come up with a solution to overcome your weakness. Stay away from personal qualities and concentrate more on professional traits. For example: "I pride myself on being a 'big-picture' guy. I have to admit I sometimes miss small details, but I always make sure I have someone who is detail-oriented on my team."
Scripting Your Answers
Write a positive statement you can say with confidence:
"My strength is my flexibility to handle change. As customer service manager at my last job, I was able to turn around a negative working environment and develop a very supportive team. As far as weaknesses, I feel that my management skills could be stronger, and I am constantly working to improve them."
When confronted with this interview question, remember the interviewer is looking for a fit. She is forming a picture of you based on your answers. A single answer will probably not keep you from getting the job, unless, of course, it is something blatant. Put your energy into your strengths statement -- what you have to offer. Then let the interviewer know that although you may not be perfect, you are working on any shortcomings you have.
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Source: Internet, various sources
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What Are Your Greatest Strengths and Weaknesses?
Click green for further info
Marie is about to interview two candidates for the customer service manager position. Her candidates are Francine and William. As always, one of the interview questions she plans to ask is about their strengths and weaknesses.
Francine answers the question, "What are your greatest strengths and weaknesses?" with, "My strength is that I'm a hard worker. My weakness is that I get stressed when I miss a deadline because someone else dropped the ball."
This answer is unimaginative. Most people think of themselves as hard workers.
William has difficulty with the question. "I really can't think of a weakness," he begins. "Maybe I could be more focused. My strength is probably my ability to deal with people. I am pretty easygoing. I usually don't get upset easily."
This answer leads with a negative, and then moves to vague words: maybe, probably, pretty and usually.
So what is the best way to answer this common interview question?
Assessing Your Strengths
Assess your skills, and you will identify your strengths. This is an exercise worth doing before any interview. Make a list of your skills, dividing them into three categories:
- Knowledge-Based Skills: Acquired from education and experience (e.g., computer skills, languages, degrees, training and technical ability).
- Transferable Skills: Your portable skills that you take from job to job (e.g., communication and people skills, analytical problem solving and planning skills)
- Personal Traits: Your unique qualities (e.g., dependable, flexible, friendly, hard working, expressive, formal, punctual and being a team player).
Assessing Your Weaknesses
This is probably the most dreaded part of the question. Everyone has weaknesses, but who wants to admit to them, especially in an interview?
The best way to handle this question is to minimize the trait and emphasize the positive. Select a trait and come up with a solution to overcome your weakness. Stay away from personal qualities and concentrate more on professional traits. For example: "I pride myself on being a 'big-picture' guy. I have to admit I sometimes miss small details, but I always make sure I have someone who is detail-oriented on my team."
Scripting Your Answers
Write a positive statement you can say with confidence:
"My strength is my flexibility to handle change. As customer service manager at my last job, I was able to turn around a negative working environment and develop a very supportive team. As far as weaknesses, I feel that my management skills could be stronger, and I am constantly working to improve them."
When confronted with this interview question, remember the interviewer is looking for a fit. She is forming a picture of you based on your answers. A single answer will probably not keep you from getting the job, unless, of course, it is something blatant. Put your energy into your strengths statement -- what you have to offer. Then let the interviewer know that although you may not be perfect, you are working on any shortcomings you have.
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Source: Internet, various sources
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Here Are 3 Hiring Trends That LinkedIn Says
You MUST Know
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Technology has completely changed the way employers look for the right candidate.We speak to LinkedIn to identify hiring trends happening right now in the job market.
"Historically, talent acquisition and retention haven’t been at the forefront of the executive agenda, but that’s rapidly changing," Dan Shapero, vice president of Talent Solutions at LinkedIn, tells us. "Companies increasingly realize that talent is their greatest competitive differentiator — arguably even more so than their products and services."
Here are the three biggest trends according to Linkedin:
1. Passive Candidate Recruitment
At any given time, 70 percent of your colleagues are looking for a job, but "smart companies realize that to hire the best and brightest, they must target candidates not actively looking for new jobs," Shapero says. These are the passive jobseekers and it's a lot easier to find them now because of LinkedIn and other professional networking sites.
"To win with these 'passive' candidates, [companies] must market their jobs the same way they market their products and services." Employers can identify these passive jobseekers by paying attention to who's following their companies on social media networks and identifying people who are most active in their LinkedIn communities, sharing content, consistently building their network and updating their profiles.
In the past, the best talent went unnoticed, but now, even those who aren't actively looking for new jobs can be prospects for relevant job openings.
2. Talent Branding
It's easier to find the right people if you have a strong brand and companies can actually reduce hiring costs by 20 percent because they don't have to try as hard to get candidates to work for them. Furthermore, it also reduces cost per hire by 50 percent and lowers turnover rates by 28 percent.
Smart employers should create "About Us" and career pages that gives jobseekers some insight into what it would be like to work there. These pages should also be regularly updated with videos, photos and employee spotlights to improve talent branding.
3. Internal Hiring
Companies are looking at their existing workforce now more than ever to promote talent. This is because when you find good employees, they are not only concerned about getting the job done, they're also focused on their own careers and if you're not willing to help them grow their careers, they will go elsewhere.
Aside from looking for talent to join their team, companies are looking internally to hire, meaning that they will "mine their existing workforce to identify high performers that are qualified for new job openings."
Competition is stringent and hiring the wrong person for the job can cost companies money that they could be spending in other areas to help them get ahead. In the technological era, not only do jobseekers need to make themselves attractive to employers, companies also need to strategize ways to attain and retain talent.
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____________________________________________________________________
You MUST Know
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Technology has completely changed the way employers look for the right candidate.We speak to LinkedIn to identify hiring trends happening right now in the job market.
"Historically, talent acquisition and retention haven’t been at the forefront of the executive agenda, but that’s rapidly changing," Dan Shapero, vice president of Talent Solutions at LinkedIn, tells us. "Companies increasingly realize that talent is their greatest competitive differentiator — arguably even more so than their products and services."
Here are the three biggest trends according to Linkedin:
1. Passive Candidate Recruitment
At any given time, 70 percent of your colleagues are looking for a job, but "smart companies realize that to hire the best and brightest, they must target candidates not actively looking for new jobs," Shapero says. These are the passive jobseekers and it's a lot easier to find them now because of LinkedIn and other professional networking sites.
"To win with these 'passive' candidates, [companies] must market their jobs the same way they market their products and services." Employers can identify these passive jobseekers by paying attention to who's following their companies on social media networks and identifying people who are most active in their LinkedIn communities, sharing content, consistently building their network and updating their profiles.
In the past, the best talent went unnoticed, but now, even those who aren't actively looking for new jobs can be prospects for relevant job openings.
2. Talent Branding
It's easier to find the right people if you have a strong brand and companies can actually reduce hiring costs by 20 percent because they don't have to try as hard to get candidates to work for them. Furthermore, it also reduces cost per hire by 50 percent and lowers turnover rates by 28 percent.
Smart employers should create "About Us" and career pages that gives jobseekers some insight into what it would be like to work there. These pages should also be regularly updated with videos, photos and employee spotlights to improve talent branding.
3. Internal Hiring
Companies are looking at their existing workforce now more than ever to promote talent. This is because when you find good employees, they are not only concerned about getting the job done, they're also focused on their own careers and if you're not willing to help them grow their careers, they will go elsewhere.
Aside from looking for talent to join their team, companies are looking internally to hire, meaning that they will "mine their existing workforce to identify high performers that are qualified for new job openings."
Competition is stringent and hiring the wrong person for the job can cost companies money that they could be spending in other areas to help them get ahead. In the technological era, not only do jobseekers need to make themselves attractive to employers, companies also need to strategize ways to attain and retain talent.
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There Really Is A Stigma Against
The Long-Term Unemployed
Date: April 2013
The longer you've been out of work, the harder it is to find a job.
More evidence of the stigma against the long-term unemployed was found by economist Rand Ghayad, who conducted an experiment where he sent out 4,800 fictitious résumés for 600 job openings.
Ghayad found that managers would rather hire people with no relevant job experience than someone who's been unemployed for a long time or has had several jobs in a short period of time.
The resumes sent out described candidates looking work for different reasons across several industries, but all were all male, had racially ambiguous names and similar education backgrounds.
Below is a chart from the paper illustrating how little it matters if you have experience in the industry you're applying for because "the first thing employers look at is how long you've been out of work, and that's the only thing they look at if it's been six months or longer," writes Matthew O'Brien at The Atlantic.
O'Brien says: "Long-term unemployment is a terrifying trap. Once you've been out of work for six months, there's little you can do to find work. Employers put you at the back of the jobs line, regardless of how strong the rest of your resume is. After all, they usually don't even look at it."
Basically, even when candidates had better credentials, they were not given an opportunity because they've been out of work for so long.
The research also found that hiring managers tend to discriminate against job hoppers as well, but this stigma is not as profound as someone who's been out of work for a few months.
However, Evolv, a data provider that uses analytics to study employee retention, found in a separate report that there's no "statistically significant difference" when it comes to predicting someone's performance or tenure based on their previous work history. The report says:
"When comparing long-term employment history data with ultimate tenure across a population of over 100,000 applicants, there was virtually no difference in employment outcomes based on how many jobs a person had, or even how many short-term jobs they had previously."
What matters most in hires — and determines future success — is whether they're a cultural fit, and if they'll receive proper training and guidance from their direct managers.
Evolv's report was based on more than 7,000 hourly workers in the U.S. and Asia Pacific. Currently the company is in the process of analyzing the results as part of an ongoing collaboration with The Wharton School at the University of Pennsylvania.
SEE ALSO: The Truth About Long-Term Unemployment In America
Click green for further info
Source: Internet
___________________________________________________________
5 Traits of the Worst Bosses - 5 solutions what a good boss would do to raise the level of business success
A poor leader is someone who does not prepare their business for today’s challenges or tomorrow’s opportunities
A good leader is someone who challenges his/her
teams to communicate how to solve the challenges
Click green for further info
Michelle Benjamin, CEO and founder of Benjamin Enterprises with offices in New York, North Carolina, and Washington, DC, has spent nearly 30 years in the business of helping companies improve their management culture. Her spinoff TalentReady specifically grooms middle managers for leadership positions as they climb the ranks. She has some specific insights into what makes someone a bad boss. Fundamentally, she says, a poor leader is someone who “does not prepare their business for today’s challenges or tomorrow’s opportunities.”
The ways bad bosses do that are many, as are the damages to a business’s prospects. Some companies seem to be productive in spite of a bad boss’s shortcomings, but according to Benjamin’s experience, with truly great management the same businesses could really thrive.
Here are five traits of a boss who can make employees miserable and hamper a business’s chances of success.
1. Arrogant. “Bad bosses put themselves above the team and create a culture where it’s ‘me or us in management against them,’” Benjamin says. “I’ve worked with clients where the hallmark of the company is to recognize who’s the boss, where there is a separation of ‘us’ from ‘them.’”
Benjamin says when leadership is arrogant, there also tends to be a difference between the public agenda and the “behind-closed-door agenda.” Having a hidden agenda, she says, usurps team spirit. “It usually comes from a place of management wanting to protect their knowledge or power: ‘I know more than you and I’m not going to share,’” she says. “It serves no purpose and it’s a complete waste of time.”
2. Opaque = Not able to be seen through; not transparent.
It’s not a new idea that transparency in management can instill trust and enable an organization to run better. But that wisdom hasn’t trickled down to many bad bosses. Benjamin points to workplaces where workers in cubicles next to each other send emails instead of speaking. “They’re protecting their backs by documenting correspondence,” Benjamin says. “They’re afraid that if they don’t document something they’ll be the fall guy. That’s the result of a lack of transparency; it’s extremely defeating.”
3. Taciturn = reserved or uncommunicative in speech; saying little.
Similarly, bad bosses minimize the threats to a business unit, and don’t share information about threats with the team, Benjamin says. That prevents people from adding value by participating in the problem-solving process. She encourages managers to communicate about problems openly: “Say, ‘this is what I’m seeing, and this is what I want to see happen.’ And hold the team accountable.” Benjamin says just doing this creates openness and dispels barriers. “It opens up a whole new dialog.”
4. Undisciplined. Bad bosses have poor delegation skills and they don’t manage the team. For instance, Benjamin points to what she calls drive-by delegation. “They see someone at the water cooler and say, ‘I’ve been thinking about this, I’d like you to do this,’ but they don’t look back until two weeks later when the project is going in the wrong direction.” Instead, Benjamin says, a good manager would say, “Let’s sit down and let me give you examples of what I expect this project to look like and what it will look like for you to meet my expectations. Also, let me show you what I don’t want.”
To be sure, Benjamin notes, zooming in on small details and taking time to explain expectations is not micromanagement, but the opposite: “You’re making sure that what you have asked or delegated is meeting your expectations. It takes discipline.”
5. Detached. Benjamin says that a good boss truly cares about employees, and that’s not just some warm-and-fuzzy philosophy. “To delegate and manage well you’ve got to know the strengths of your people, and the only way is to get to know them.” It takes time and good listening skills to know each team member’s strengths, skills, and skill gaps, she says. But with those insights, a great boss can (and is willing to) coach people to meet the expectations of the business or business unit.
Says Benjamin, “Listening to your team helps create a culture of high expectations; that’s the reason for showing the example of what you’re looking for: you want it to meet that level of satisfaction.”
Can a bad boss learn to be a good boss? “People can learn those skills, but it requires a deep desire,” Benjamin says.\
“I believe it can be done.” The key, she says, is “don’t drink your own Kool-Aid; if you’re the boss, you must have the vulnerability to recognize you have weaknesses and seek ways to change. You can’t do that with arrogance.”
_______________________
A poor leader is someone who does not prepare their business for today’s challenges or tomorrow’s opportunities
A good leader is someone who challenges his/her
teams to communicate how to solve the challenges
Click green for further info
Michelle Benjamin, CEO and founder of Benjamin Enterprises with offices in New York, North Carolina, and Washington, DC, has spent nearly 30 years in the business of helping companies improve their management culture. Her spinoff TalentReady specifically grooms middle managers for leadership positions as they climb the ranks. She has some specific insights into what makes someone a bad boss. Fundamentally, she says, a poor leader is someone who “does not prepare their business for today’s challenges or tomorrow’s opportunities.”
The ways bad bosses do that are many, as are the damages to a business’s prospects. Some companies seem to be productive in spite of a bad boss’s shortcomings, but according to Benjamin’s experience, with truly great management the same businesses could really thrive.
Here are five traits of a boss who can make employees miserable and hamper a business’s chances of success.
1. Arrogant. “Bad bosses put themselves above the team and create a culture where it’s ‘me or us in management against them,’” Benjamin says. “I’ve worked with clients where the hallmark of the company is to recognize who’s the boss, where there is a separation of ‘us’ from ‘them.’”
Benjamin says when leadership is arrogant, there also tends to be a difference between the public agenda and the “behind-closed-door agenda.” Having a hidden agenda, she says, usurps team spirit. “It usually comes from a place of management wanting to protect their knowledge or power: ‘I know more than you and I’m not going to share,’” she says. “It serves no purpose and it’s a complete waste of time.”
2. Opaque = Not able to be seen through; not transparent.
It’s not a new idea that transparency in management can instill trust and enable an organization to run better. But that wisdom hasn’t trickled down to many bad bosses. Benjamin points to workplaces where workers in cubicles next to each other send emails instead of speaking. “They’re protecting their backs by documenting correspondence,” Benjamin says. “They’re afraid that if they don’t document something they’ll be the fall guy. That’s the result of a lack of transparency; it’s extremely defeating.”
3. Taciturn = reserved or uncommunicative in speech; saying little.
Similarly, bad bosses minimize the threats to a business unit, and don’t share information about threats with the team, Benjamin says. That prevents people from adding value by participating in the problem-solving process. She encourages managers to communicate about problems openly: “Say, ‘this is what I’m seeing, and this is what I want to see happen.’ And hold the team accountable.” Benjamin says just doing this creates openness and dispels barriers. “It opens up a whole new dialog.”
4. Undisciplined. Bad bosses have poor delegation skills and they don’t manage the team. For instance, Benjamin points to what she calls drive-by delegation. “They see someone at the water cooler and say, ‘I’ve been thinking about this, I’d like you to do this,’ but they don’t look back until two weeks later when the project is going in the wrong direction.” Instead, Benjamin says, a good manager would say, “Let’s sit down and let me give you examples of what I expect this project to look like and what it will look like for you to meet my expectations. Also, let me show you what I don’t want.”
To be sure, Benjamin notes, zooming in on small details and taking time to explain expectations is not micromanagement, but the opposite: “You’re making sure that what you have asked or delegated is meeting your expectations. It takes discipline.”
5. Detached. Benjamin says that a good boss truly cares about employees, and that’s not just some warm-and-fuzzy philosophy. “To delegate and manage well you’ve got to know the strengths of your people, and the only way is to get to know them.” It takes time and good listening skills to know each team member’s strengths, skills, and skill gaps, she says. But with those insights, a great boss can (and is willing to) coach people to meet the expectations of the business or business unit.
Says Benjamin, “Listening to your team helps create a culture of high expectations; that’s the reason for showing the example of what you’re looking for: you want it to meet that level of satisfaction.”
Can a bad boss learn to be a good boss? “People can learn those skills, but it requires a deep desire,” Benjamin says.\
“I believe it can be done.” The key, she says, is “don’t drink your own Kool-Aid; if you’re the boss, you must have the vulnerability to recognize you have weaknesses and seek ways to change. You can’t do that with arrogance.”
_______________________
The Salary Tutor
How to Beat the Used Car Salesmen of Salary Negotiation
What Car Salesmen & Hotel Managers Can Teach Us About Negotiation
By Jim Hopkinson, Salary.com contributing writer
There are many hard and fast rules that a job-seeker can learn when preparing for a salary negotiation. For example, having the right mindset, the importance of doing research, and keeping compensation numbers open-ended, speaking in terms of salary ranges vs. naming a specific number.
However, one of the more difficult aspects of negotiating a job offer is adapting your approach based on the personality of the person you are dealing with.
There are three phases that you must master:
- Develop a negotiation mindset and learn the tips and techniques
- Practice and role play with someone to simulate the conversation
- Adapt your approach on the fly after assessing the personality of your opponent
The Hotel Manager
In this analogy, picture the new company you are getting ready to work for as if you were about to check into one of your favorite hotels. You’ve already decided on the industry you’ll be working in (where the hotel is located), have done your research on the level of responsibility you’ll have (the star level of the hotel), and that the people and the job are a good fit (the hotel has great service and amenities). All that needs to be done is to finalize the rate (salary) and other details (benefits).
Most hiring managers or people in HR are a lot like a hotel manager. They want the hotel to succeed and make a profit, but their most important goal is to make sure your stay there goes as smoothly as possible and that everyone is happy.
If someone walks in off the street and wants a hotel room, they might be told, “Hello and welcome! We have an excellent room with a Queen bed on the 5th floor for $299 a night. We have a free gym, continental breakfast, and checkout is at 10am.”
For the vast majority of people -- the non-negotiators -- they simply accept the room, have a pleasant stay, and are none the wiser. This will also pertain to most of the people at your work. They were happy to get the job, heard the details, and accepted.
But experienced negotiators know to ask for more. A seasoned traveler might have spent considerable time researching on a site such as TripAdvisor, and talking to other people in their network that have stayed in the same area.
According to their research, the floors in the middle part of the hotel have a courtyard view and can be quite noisy, and the hotel often gives their loyal customers a complimentary spa session. You also know the hotel’s competitor is offering a $249/night special, and your flight home isn’t until 2 pm the day you check out.
The hotel manager knows they have some leeway, and wants you to be happy. They are able to quickly agree on the things that are easy for them to do, like offering you a King size bed on the 14th floor with a river view, and allowing you to check out at noon. They politely explain that their spa is now independently run, so are unable to meet your request of a free session. And they meet you halfway on the price, giving you an 8% discount on the room at $275/night.
I’m sure you can make the connection here. Bringing back the analogy to your job, you might hear, “We think you’re a great fit and would like to offer you a position. You’ll be a senior manager at $79,000 per year, have access to our health plan, 401(k), gym reimbursement, 2 weeks vacation, and an annual performance review.”
Having done your research, spoken with other people in your network, and knowing that the hiring manager has some leeway, you make your counter-offer (perhaps your “competing hotel” is another pending job offer). You request a title of Assistant Director, a salary in the $80-$90,000 range, 3 weeks vacation, and a 6 month review.
Much like a hotel manager knows the value of keeping their key customers happy over the long term, HR knows that you are the company’s top candidate in a competitive market, so are willing to make some concessions.
They offer an 8% raise to $85,000, agree to 3 weeks vacation, and say that while the job title will remain at senior manager, they agree to have a performance review at 6 months to discuss your progress toward director level.
Your approach:
- Match their level of hospitality and show a willingness to work together
- However, make it clear that you’ve done your research and are looking to negotiate due to being a top candidate
- Know that they have the ability to make adjustments on their side within reason – much like the hotel would not be able to drop the rate to $99, it’s unlikely they will bump their salary offer from $79k up to $125k
The Car Salesman
A more difficult hiring manager personality to deal with is the “Car Salesman.” Whereas the main goal of the Hotel Manager is to make you happy, the main goal of the car salesman is to keep as much money as possible.
I’m not going to go as far as calling them "evil." After all, if you were the CEO of a company, wouldn’t you want someone like this in your corner? Payroll costs are a huge percentage of a corporate budget, so if management has the opportunity to have a pit bull within HR that knows every negotiation trick in the book, and fights hard to keep salaries low, that can be a competitive advantage for the company.
A car salesman might try to dismiss your research, use negotiation techniques to their advantage ("I need to check with my manager"), and if he doesn’t have the base model in white that you really wanted, you’re probably going to hear about the RS model in gray that is sitting on his showroom floor.
Your approach:
- While you might feel intimidated and perhaps even bullied, keep calm and maintain an even keel throughout your discussions
- Know what’s important to you; If the salary (or a 2-seater convertible) isn’t enough to support your family, don’t be distracted by other perks being offered
- Be aware of negotiation tactics. Car salesman were famous for leaving potential buyers alone for large chunks of time, making them tired, nervous, and bored enough to give in to a deal. Solution? Bring a book you love reading and some snacks to keep your energy up. Although you might not be able to match the pros in their mind games, knowing they are happening is a good first step.
- Stick by your data. If you’re confident in your research and have supporting evidence, refer back to it.
- Lastly, it’s key to remember that although you might grow annoyed, frustrated, or angry with the hiring manager sitting across from you, they are doing their job and after the process is over you might not need to deal with them again. What’s more important is getting along with your future boss and co-workers that you will see on a day-to-day basis.
More from Salary.com CLICK:
- 12 Dos and Don'ts for Negotiating Salary in a Tough Economy
- 10 Salary Negotiation Myth _______________________________________________
Article 1 of 3
Legal Service Billing & Its Challenges
Important info
This article talks mostly about the legal services given to a big companies
However, the principle is the same in billing a private client
For a private client it is best to agree a flat rate and do it in writing
Other options exist - negotiate with your lawyer
The Tyranny of the Billable Hour
By Steven J. Harper, a former super-lawyer partner at the law firm Kirland & Ellis and an adjunct professor at Northwestern University, is the author, most recently, of “The Lawyer Bubble: A Profession in Crisis.”
Click green for further info
“THAT bill shall know no limits,” wrote one DLA Piper lawyer to another in 2010 in what the firm is now calling “unfortunate banter” between associates about work for a client.
(DLA Piper is a global law firm headquartered in London, United Kingdom and New York, United States. It is one of the largest law firms...en.wikipedia.org/wiki/DLA_Piper)
But what is truly unfortunate is the underlying billable-hour regime and the law-firm culture it has spawned.
Lost in the furor surrounding one large firm’s current public relations headache are deeper problems that go to the heart of the prevailing big law-firm business model itself. Regrettably, as with previous episodes that have produced high-profile scandals, the present outcry will probably pass and the billable hour will endure.
It shouldn’t. The billable-hour system is the way most lawyers in big firms charge clients, but it serves no one. Well, almost no one. It brings most equity partners in those firms great wealth. Law firm leaders call it a leveraged pyramid. Most associates call it a living hell.
In a typical large firm, associates earn far less than the client revenues they generate. For example, a client receives an invoice totaling the number of hours each lawyer spends on the client’s matters, multiplied by the lawyer’s hourly rate, say $400 for a junior associate. Most big firms require associates to bill at least 1,900 hours a year, according to a survey last year by NALP*), the Association for Legal Career Professionals.
In 2009, DLA Piper announced that it had eliminated associates’ billable-hour requirements in favor of a performance-based reward system. However, the firm’s submission for the association’s current NALP Directory of Legal Employers*) reports that it has a “minimum billable hour expectation.” In 2011, DLA Piper’s “average annual associate hours worked” (both billable and nonbillable) was 2,462; the billable average was 1,831.
At $400 an hour, a hypothetical 2,000-hour-a-year associate generates $800,000 a year for the firm. But the firm typically pays the salaried lawyer one-fourth of that amount or less.
For associates, the goal is simple: meet the required (or expected) minimum number of billable hours to qualify for annual bonuses and salary increases. Billing 2,000 hours a year isn’t easy. It typically takes at least 50 hours a week to bill an honest 40 hours to a client. Add commuting time, bathroom breaks, lunch, holidays, an annual vacation and a little socializing, and most associates find themselves working evenings and weekends to “make their hours.” Most firms increase financial rewards as an associate’s billables move beyond the stated threshold.
For partners, billable hours are a key measure of associate and partner productivity. More is better. The resulting culture pushes everyone harder. Meanwhile, each partner strives to maximize individual client billings that he or she controls. Those billings in most cases determine a partner’s annual share of the firm’s profits. Their clients also become tickets to other firms. That makes partners reluctant to share too many important client responsibilities with their associates and fellow partners.
For clients, the consequences of the billable-hour system can be absurd. Fatigue through overwork can produce negative returns — the critical document missed during a late-night marathon review; the error in the draft of a corporate filing that goes unnoticed.
Why do clients tolerate this perverse system? Periodically they rebel, especially during economic downturns, but those revolutions have been short-lived and unsuccessful. A 2011 survey by ALM Legal Intelligence**), an online data service, found that alternative fee arrangements accounted for only 16 percent of revenues at the nation’s largest law firms in 2010. Despite outcries for reform, the billable hour remains entrenched (= establish (an attitude, habit, or belief) so firmly that change is very difficult or unlikely) and the barriers to change are formidable (= tremendous - redoubtable - dreadful - terrible. In many practice areas, including large and lucrative bankruptcy cases, prior court rulings (including the United States Supreme Court’s 2010 opinion in Perdue v. Kenny A.) essentially require lawyers to use the billable-hour approach if they want to assure approval of their fee petitions.
There’s a way out of the mess. But it requires clients to press harder for alternative fee arrangements, courts to back away from policies that embed (= to incorporate or contain as an essential part or characteristic) the billable hour, law firm leaders to stop rewarding excessive associate hours and senior partners to consider the deleterious (= causing harm or damage) consequences of their myopic (= narrow-minded) focus on short-term profit-maximizing behavior.
However it comes out, DLA Piper isn’t the first law firm to endure a client billing controversy. While at a big firm, Webster Hubbell, a former Arkansas Supreme Court justice and associate attorney general for President Bill Clinton, was caught billing clients for time that he never worked. He went to prison. A partner in a prominent Chicago law firm got into trouble when someone wondered how he could bill almost 6,000 hours annually over four consecutive years. He couldn’t.
In fact, a cottage industry (= an industry in which employees work in their own homes, often using their own equipment) has now developed in auditing outside law firm invoices to clients. Even so, as the deceit associated with the billable hour continues undetected, equally insidious (= proceeding in a gradual, subtle way, but with harmful effects) consequences of the entire system endure. The episodes of public embarrassment will remain infrequent (= rare, not occurring often), and the triggers producing them will be idiosyncratic (= peculiar or individual).
DLA Piper’s current notoriety (= the state of being known for some unfavorable act or quality)
began when a former client refused to pay his roughly $675,000 bill. The firm sued him last year, and its internal e-mails about the matter became subject to discovery. Before long, they landed on the front page of The New York Times.
DLA Piper said that the comments of its lawyers were “an inexcusable effort at humor.” What’s really not funny is the toll that the flawed system is taking on a vital profession.
Steven J. Harper, a former partner at the law firm Kirland & Ellis and an adjunct professor at Northwestern University, is the author, most recently, of “The Lawyer Bubble: A Profession in Crisis.”
Click green for further info
Source: NYT & Steven J. Harper
_______________
Article 2 of 3
Research & Statistics > Law Firm Administration > Billable Hours
(NALP Bulletin, February 2012)
NALP - The Association for Legal Career Professionals
Billable Hours
Number of Associate Hours Worked Increases at Largest Firms .
-- The most recent information available suggests that, while hours worked and billed started to bounce back somewhat in 2010 after two years of decline, the recovery has been the greatest at the largest firms of 701+ lawyers. The picture at smaller firms is more mixed.
Number of Associate Hours Worked Declines (NALP Bulletin, February 2011) — The most recent information available makes it evident that both the average number of hours worked and the average number of billable hours worked per year has declined since 2007, likely due to the slowdown in the legal economy starting in 2008. In 2009, the average total number of hours worked stood at 2,032, compared with 2,066 in 2007; the respective figures for billable hours were 2,032 and 2,066.
A Look at Associate Hours and at Law Firm Pro Bono Programs (NALP Bulletin, April 2010) — While billable hour expectations have inched up over the years, analyses based on NALP's 2009-2010 Directory of Legal Employers show that a requirement of 2,000 billable hours per year is still not typical, and although it is not possible to track changes at individual firms and offices, a requirement of 2,000 hours has become only slightly more common on an aggregate basis.
How Much Do Associates Work? Most Firms Do Not Require 2,000 Billable Hours (NALP Bulletin, April 2009) — Analyses show that a requirement of 2,000 billable hours per year is not typical.
How Much Do Associate Work? Not All Law Firms Require 2,000 Billable Hours (NALP Bulletin, April 2008) — Analyses show that a requirement of 2,000 billable hours per year is not typical, and although it is not possible to track changes at individual firms and offices, a requirement of 2,000 hours has become only slightly more common on an aggregate basis, accounting for 12% of reported minimums, up from 9% for 2004. But overall, the distribution has moved to the right. For example, 10 years ago the most commonly reported figure was 1,800 hours, reported by about 30% of offices. Today, 17% of offices report an 1,800 hour minimum.
How Much Do Associates Have to Work? (NALP Bulletin, April 2007) — Analyses of total and billable hours worked, billable hours requirements, and pro bono hours.
Billable Hour Requirements at Law Firms (NALP Bulletin, May 2006) — One of the most sought after law firm measures, after salaries, is the billable hours requirement. For a law firm, the requirement says a great deal not only about standards but also about law firm culture.
*) Search instead for The association for legal carrier professionals
Search Results
Legal Service Billing & Its Challenges
Important info
This article talks mostly about the legal services given to a big companies
However, the principle is the same in billing a private client
For a private client it is best to agree a flat rate and do it in writing
Other options exist - negotiate with your lawyer
The Tyranny of the Billable Hour
By Steven J. Harper, a former super-lawyer partner at the law firm Kirland & Ellis and an adjunct professor at Northwestern University, is the author, most recently, of “The Lawyer Bubble: A Profession in Crisis.”
Click green for further info
“THAT bill shall know no limits,” wrote one DLA Piper lawyer to another in 2010 in what the firm is now calling “unfortunate banter” between associates about work for a client.
(DLA Piper is a global law firm headquartered in London, United Kingdom and New York, United States. It is one of the largest law firms...en.wikipedia.org/wiki/DLA_Piper)
But what is truly unfortunate is the underlying billable-hour regime and the law-firm culture it has spawned.
Lost in the furor surrounding one large firm’s current public relations headache are deeper problems that go to the heart of the prevailing big law-firm business model itself. Regrettably, as with previous episodes that have produced high-profile scandals, the present outcry will probably pass and the billable hour will endure.
It shouldn’t. The billable-hour system is the way most lawyers in big firms charge clients, but it serves no one. Well, almost no one. It brings most equity partners in those firms great wealth. Law firm leaders call it a leveraged pyramid. Most associates call it a living hell.
In a typical large firm, associates earn far less than the client revenues they generate. For example, a client receives an invoice totaling the number of hours each lawyer spends on the client’s matters, multiplied by the lawyer’s hourly rate, say $400 for a junior associate. Most big firms require associates to bill at least 1,900 hours a year, according to a survey last year by NALP*), the Association for Legal Career Professionals.
In 2009, DLA Piper announced that it had eliminated associates’ billable-hour requirements in favor of a performance-based reward system. However, the firm’s submission for the association’s current NALP Directory of Legal Employers*) reports that it has a “minimum billable hour expectation.” In 2011, DLA Piper’s “average annual associate hours worked” (both billable and nonbillable) was 2,462; the billable average was 1,831.
At $400 an hour, a hypothetical 2,000-hour-a-year associate generates $800,000 a year for the firm. But the firm typically pays the salaried lawyer one-fourth of that amount or less.
For associates, the goal is simple: meet the required (or expected) minimum number of billable hours to qualify for annual bonuses and salary increases. Billing 2,000 hours a year isn’t easy. It typically takes at least 50 hours a week to bill an honest 40 hours to a client. Add commuting time, bathroom breaks, lunch, holidays, an annual vacation and a little socializing, and most associates find themselves working evenings and weekends to “make their hours.” Most firms increase financial rewards as an associate’s billables move beyond the stated threshold.
For partners, billable hours are a key measure of associate and partner productivity. More is better. The resulting culture pushes everyone harder. Meanwhile, each partner strives to maximize individual client billings that he or she controls. Those billings in most cases determine a partner’s annual share of the firm’s profits. Their clients also become tickets to other firms. That makes partners reluctant to share too many important client responsibilities with their associates and fellow partners.
For clients, the consequences of the billable-hour system can be absurd. Fatigue through overwork can produce negative returns — the critical document missed during a late-night marathon review; the error in the draft of a corporate filing that goes unnoticed.
Why do clients tolerate this perverse system? Periodically they rebel, especially during economic downturns, but those revolutions have been short-lived and unsuccessful. A 2011 survey by ALM Legal Intelligence**), an online data service, found that alternative fee arrangements accounted for only 16 percent of revenues at the nation’s largest law firms in 2010. Despite outcries for reform, the billable hour remains entrenched (= establish (an attitude, habit, or belief) so firmly that change is very difficult or unlikely) and the barriers to change are formidable (= tremendous - redoubtable - dreadful - terrible. In many practice areas, including large and lucrative bankruptcy cases, prior court rulings (including the United States Supreme Court’s 2010 opinion in Perdue v. Kenny A.) essentially require lawyers to use the billable-hour approach if they want to assure approval of their fee petitions.
There’s a way out of the mess. But it requires clients to press harder for alternative fee arrangements, courts to back away from policies that embed (= to incorporate or contain as an essential part or characteristic) the billable hour, law firm leaders to stop rewarding excessive associate hours and senior partners to consider the deleterious (= causing harm or damage) consequences of their myopic (= narrow-minded) focus on short-term profit-maximizing behavior.
However it comes out, DLA Piper isn’t the first law firm to endure a client billing controversy. While at a big firm, Webster Hubbell, a former Arkansas Supreme Court justice and associate attorney general for President Bill Clinton, was caught billing clients for time that he never worked. He went to prison. A partner in a prominent Chicago law firm got into trouble when someone wondered how he could bill almost 6,000 hours annually over four consecutive years. He couldn’t.
In fact, a cottage industry (= an industry in which employees work in their own homes, often using their own equipment) has now developed in auditing outside law firm invoices to clients. Even so, as the deceit associated with the billable hour continues undetected, equally insidious (= proceeding in a gradual, subtle way, but with harmful effects) consequences of the entire system endure. The episodes of public embarrassment will remain infrequent (= rare, not occurring often), and the triggers producing them will be idiosyncratic (= peculiar or individual).
DLA Piper’s current notoriety (= the state of being known for some unfavorable act or quality)
began when a former client refused to pay his roughly $675,000 bill. The firm sued him last year, and its internal e-mails about the matter became subject to discovery. Before long, they landed on the front page of The New York Times.
DLA Piper said that the comments of its lawyers were “an inexcusable effort at humor.” What’s really not funny is the toll that the flawed system is taking on a vital profession.
Steven J. Harper, a former partner at the law firm Kirland & Ellis and an adjunct professor at Northwestern University, is the author, most recently, of “The Lawyer Bubble: A Profession in Crisis.”
Click green for further info
Source: NYT & Steven J. Harper
_______________
Article 2 of 3
Research & Statistics > Law Firm Administration > Billable Hours
(NALP Bulletin, February 2012)
NALP - The Association for Legal Career Professionals
Billable Hours
Number of Associate Hours Worked Increases at Largest Firms .
-- The most recent information available suggests that, while hours worked and billed started to bounce back somewhat in 2010 after two years of decline, the recovery has been the greatest at the largest firms of 701+ lawyers. The picture at smaller firms is more mixed.
Number of Associate Hours Worked Declines (NALP Bulletin, February 2011) — The most recent information available makes it evident that both the average number of hours worked and the average number of billable hours worked per year has declined since 2007, likely due to the slowdown in the legal economy starting in 2008. In 2009, the average total number of hours worked stood at 2,032, compared with 2,066 in 2007; the respective figures for billable hours were 2,032 and 2,066.
A Look at Associate Hours and at Law Firm Pro Bono Programs (NALP Bulletin, April 2010) — While billable hour expectations have inched up over the years, analyses based on NALP's 2009-2010 Directory of Legal Employers show that a requirement of 2,000 billable hours per year is still not typical, and although it is not possible to track changes at individual firms and offices, a requirement of 2,000 hours has become only slightly more common on an aggregate basis.
How Much Do Associates Work? Most Firms Do Not Require 2,000 Billable Hours (NALP Bulletin, April 2009) — Analyses show that a requirement of 2,000 billable hours per year is not typical.
How Much Do Associate Work? Not All Law Firms Require 2,000 Billable Hours (NALP Bulletin, April 2008) — Analyses show that a requirement of 2,000 billable hours per year is not typical, and although it is not possible to track changes at individual firms and offices, a requirement of 2,000 hours has become only slightly more common on an aggregate basis, accounting for 12% of reported minimums, up from 9% for 2004. But overall, the distribution has moved to the right. For example, 10 years ago the most commonly reported figure was 1,800 hours, reported by about 30% of offices. Today, 17% of offices report an 1,800 hour minimum.
How Much Do Associates Have to Work? (NALP Bulletin, April 2007) — Analyses of total and billable hours worked, billable hours requirements, and pro bono hours.
Billable Hour Requirements at Law Firms (NALP Bulletin, May 2006) — One of the most sought after law firm measures, after salaries, is the billable hours requirement. For a law firm, the requirement says a great deal not only about standards but also about law firm culture.
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Article 3 of 3
Comments from the public to the article above
"The Tyranny of the Billable Hour"
How Lawyers Charge Their Clients
First an opinion as a joke form
To the Editor:
4 of 4
Appearing before St. Peter, a young law-firm associate asked why was he being taken at age 29. Taken aback, St. Peter said the associate’s billable hours made the associate appear to be 95.
GARY ARSENAULT
Norfolk, Va., March 29, 2013
________
To the Editor:
1 of 4
Steven J. Harper’s Op-Ed essay about the practice of hourly billing by lawyers (“The Tyranny of the Billable Hour,” March 29) is overly broad and unfair. Do some lawyers abuse the practice? Of course. That said, most lawyers fairly and honestly bill clients, for two reasons.
The first is that we manage our practices with the same honor and professionalism with which we practice law.
Second, clients are not stupid. If they think that they are being improperly billed, they are not only free to question the
bill but are equally free to take their legal business elsewhere.
BARRY L. WARREN
Smithtown, N.Y., March 29, 2013
To the Editor:
2 of 4
As the head of a legal department for a large company that uses DLA Piper among other law firms for outside legal work, I know that alternate fee arrangements, which have been around for decades, have not caught on because they do not allow a client the same opportunity to see the work as it is being done, evaluate its worth, and challenge when appropriate the relationship of time, task and cost.
Steven J. Harper leaves out the preference of consumers of legal services for the itemized billable hour. While cost is certainly one important element in determining the law firms we use and how we use them, our first desire is for success with the matter at hand and knowing what is being done to achieve it.
The ultimate reckoning comes when we, as consumers, choose to continue to use a particular law firm or not in a world full of lawyers.
ALAN B. MOLDAWER
Executive V.P. and General Counsel
Veolia Transportation
Lombard, Ill., March 31, 2013
To the Editor:
3 of 4
The consequences of hourly billing, and the earnings pressure it creates, are felt far and wide in the legal profession. It is expensive for clients and creates unhealthy incentives for lawyers.
Some of us are trying to be sensitive to these issues. Some firms, large and small, are more open to alternative billing arrangements and “value billing” procedures than others.
Such arrangements promote a more humanistic environment for lawyers and, we think, produce better legal work.
Some of us even are starting to question the great partner-associate divide, and do not evaluate younger lawyers based on their “hours.” Innovation in our profession, like elsewhere, might help to alleviate some of the problems that Steven J. Harper identifies.
BARRY COBURN
Washington, April 1, 2013
To the Editor:
4 of 4 (same joke as above)
Appearing before St. Peter, a young law-firm associate asked why was he being taken at age 29. Taken aback, St. Peter said the associate’s billable hours made the associate appear to be 95.
GARY ARSENAULT
Norfolk, Va., March 29, 2013
Let's finish with another lawyer joke:
"A lawyer died and landed in heaven. The Devil calls from hell to God in heaven and complaints that your gatekeeper
St.Peter made a mistake and let this lawyer come in to the heaven - he belongs with me - send the lawyer immediately to me to my hell. God said: I will not send him - from where do you think I would get another lawyer - we need one here."
_________
Below some links to funny lawyer jokes - click green to connect:
Comments from the public to the article above
"The Tyranny of the Billable Hour"
How Lawyers Charge Their Clients
First an opinion as a joke form
To the Editor:
4 of 4
Appearing before St. Peter, a young law-firm associate asked why was he being taken at age 29. Taken aback, St. Peter said the associate’s billable hours made the associate appear to be 95.
GARY ARSENAULT
Norfolk, Va., March 29, 2013
________
To the Editor:
1 of 4
Steven J. Harper’s Op-Ed essay about the practice of hourly billing by lawyers (“The Tyranny of the Billable Hour,” March 29) is overly broad and unfair. Do some lawyers abuse the practice? Of course. That said, most lawyers fairly and honestly bill clients, for two reasons.
The first is that we manage our practices with the same honor and professionalism with which we practice law.
Second, clients are not stupid. If they think that they are being improperly billed, they are not only free to question the
bill but are equally free to take their legal business elsewhere.
BARRY L. WARREN
Smithtown, N.Y., March 29, 2013
To the Editor:
2 of 4
As the head of a legal department for a large company that uses DLA Piper among other law firms for outside legal work, I know that alternate fee arrangements, which have been around for decades, have not caught on because they do not allow a client the same opportunity to see the work as it is being done, evaluate its worth, and challenge when appropriate the relationship of time, task and cost.
Steven J. Harper leaves out the preference of consumers of legal services for the itemized billable hour. While cost is certainly one important element in determining the law firms we use and how we use them, our first desire is for success with the matter at hand and knowing what is being done to achieve it.
The ultimate reckoning comes when we, as consumers, choose to continue to use a particular law firm or not in a world full of lawyers.
ALAN B. MOLDAWER
Executive V.P. and General Counsel
Veolia Transportation
Lombard, Ill., March 31, 2013
To the Editor:
3 of 4
The consequences of hourly billing, and the earnings pressure it creates, are felt far and wide in the legal profession. It is expensive for clients and creates unhealthy incentives for lawyers.
Some of us are trying to be sensitive to these issues. Some firms, large and small, are more open to alternative billing arrangements and “value billing” procedures than others.
Such arrangements promote a more humanistic environment for lawyers and, we think, produce better legal work.
Some of us even are starting to question the great partner-associate divide, and do not evaluate younger lawyers based on their “hours.” Innovation in our profession, like elsewhere, might help to alleviate some of the problems that Steven J. Harper identifies.
BARRY COBURN
Washington, April 1, 2013
To the Editor:
4 of 4 (same joke as above)
Appearing before St. Peter, a young law-firm associate asked why was he being taken at age 29. Taken aback, St. Peter said the associate’s billable hours made the associate appear to be 95.
GARY ARSENAULT
Norfolk, Va., March 29, 2013
Let's finish with another lawyer joke:
"A lawyer died and landed in heaven. The Devil calls from hell to God in heaven and complaints that your gatekeeper
St.Peter made a mistake and let this lawyer come in to the heaven - he belongs with me - send the lawyer immediately to me to my hell. God said: I will not send him - from where do you think I would get another lawyer - we need one here."
_________
Below some links to funny lawyer jokes - click green to connect:
- Lawyer Jokes - The Good, the Bad and the Dirty
www.iciclesoftware.com/LawJokes/IcicleLawJokes.html
Q: How does an attorney sleep? A: First he lies on one side, then he lies on the other. Q: How many lawyer jokes are there? A: Only three. The rest are true ...
185 Lawyer Jokes
www.stromer.com/jokes/185jokes.html
185 Lawyer Jokes. An engineer, a physicist, and a lawyer were being interviewed for a position as chief executive officer of a large corporation. The engineer ...- Images for lawyer jokes - Report image
Lawyer Jokes and Attorney Humor
www.ahajokes.com › Random Lawyer Jokes
Lawyer Jokes. Lawyer jokes and humor! You'll find lawyer jokes about greed, crime, billing hours, ethics, other professions, and more! Jokes. Location: Clean ... ______________________________________________________________________________
- PART 2 of 3 - STAF, Inc.'s comment to the above Mr. Buffett's article
- Comment by Save The American Family - STAF, Inc.,-not-for-profit-
By Dr. Christian von Christophers, Ph.D., N.D.
As is Mr. Buffett's plan, STAF, Inc. also has developed programs for our nation's schools in most relevant areas of successful life - STAF, Inc.'s website info below.
STAF, Inc. is the leading new organization in all family matters.
When you got married in the traditional manner, you had true love between the two of you.
True lover NEVER dies. Any broken marriage can be healed. For "HOW-TO" go to our website, tab: Services, sub-page: Restoring Any Marriage™.
Practically all gang members & mass shooters have two things in common: (1) they are victims of a divorce & (2) they are all males.
A growing boy needs especially his father's continuous presence and guidance, more so than his mother's. The moral in our marriages has gone close to a zero. The children grow up disturbed & misled. In addition, the violent video games & violent movies are replacing the parental love & healthy attention - the children get a wrong picture about being a human being. The young mass killers suffer from the Broken Marriage Syndrome™.
In a family separation & divorce both spouses will experience (1) health challenges leading to a shorter life span and (2) to added financial difficulties. Any traditionally done marriage turned dysfunctional can be healed. Giving up as the first solution is not reasonable for anyone. A separation and a divorce are serious child abuse.
Every child experiencing a parental divorce faces serious life threatening disasters - the most important listed here: (1) overall increased risks to health & welfare; (2) 5 times more likely to commit suicide; (3) 32 times more likely to run away; (4) 20 times more likely to have behavioral disorders; (5) 14 times more likely to commit rape; (6) 9 times more likely to drop out of school; (7) 10 times more likely to abuse alcohol and drugs; (8) 20 times more likely to end up in prison; (9) increased learning difficulties; (10) increased risk of divorce when grown; (11) increased out of wedlock pregnancies; (12) Latest discovery by the researchers: highly increased risk of having a stroke during his/her life time.
The long-term solution is to start educating the whole nation how to heal the American Family & our homes where our children are growing up. In the U.S. marriage happiness & child raising education for every family & every teenager in our schools (and colleges) is fully missing today but is present in most other developed countries in their school curricula.
In a happy home with both parents present the children grow up healthy - no Broken Marriage Syndrome™ and no reason to go to punish the world by killing everyone around.
STAF, Inc.'s presence is needed in D.C. in the U.S. Congress (House & Senate). STAF, Inc.'s founding President is planning (1) to seek a seat in D.C. Congress/Senate to provide the necessary information to the D.C. lawmakers and (2) to establish a fully new federal agency, Healthy Lifestyle & Family Success Agency, and to be named its first federal director. New legislation and training for all these matters are needed in a results-bringing manner. Less Suffering - More Life™
Visit STAF, Inc.'s extensive websites. To find the correct website, use STAF, Inc.'s Radio Show title - lower & upper keys as is here: "DrDrCanYouHelpMe" in the internet search. Listen to STAF, Inc.'s popular Radio Show (original recordings in the internet 24/7) - you'll get free CEU & College-University credits.
Respectfully,
Christian von Christophers, Ph.D., N.D.
STAF, Inc.'s founding President
________________________________________________________ - Comment from the public: Excellent idea - study & apply
- When your kid is about 9-10, get your entire month's pay in $1.00 bills. Put this stack of money on the kitchen table in front of the kid and watch as they marvel about how rich you are. Then, count out the mortgage/rent into its own stack. Groceries. Cable. Car payment. Insurance payment. Savings (this is very important). All the monthly expenses in their own piles. If you have any yearly/quarterly expenses, prorate them for one month. Then, let the kid see what is left for things like birthday presents, vacations, movies, etc. This is a lesson that will stick with them for the rest of their lives.
Money Advice for People in Boom-or-Bust Fields
boom: a sudden increase in prosperity - bust: a sudden collapse of the economy
The advice in this article is not only for the topic-related use - it fits for any financial endeavor
Click green for further info
MORE financial advisers are focusing on a single clientele, say, doctors or athletes. That would seem to make sense, since concentrating on a single group of people gives advisers greater insight into the needs of those people. And if the advisers do a good job, they will get that client’s colleagues as clients.
Advisers can, of course, organize their practices in other ways. Many focus on a dollar amount. They promise to give good advice to any client with more than $1 million, $5 million or more, regardless of where that money came from. By taking this tack, they are also eliminating the need to have more, less wealthy clients.
And some advisers organize a practice around a life event, like retirement or divorce. But what does a divorced woman with three young children and a deadbeat former husband have in common with Elaine Wynn, who received nearly $1 billion when she divorced Steve Wynn, the casino mogul?
Still, is managing money for a group of lawyers, say, any different from managing money for another high earner? A dollar is a dollar, after all. Or is it just a way for advisers to market themselves?
“To the adviser, the benefit is he is not having to continue to reinvent himself,” said Mindy Diamond, president and chief executive of Diamond Consultants, a firm that recruits advisers. “It creates economies of scale and a more effective deployment of resources when the adviser is focused. It also creates a steady stream of clients.”
Ms. Diamond said clients benefited as well. “You’re not paying for him to figure out a situation, because he’s done it before,” she said. “He has insights into your fears and challenges. It creates an atmosphere of customized service. Typically, they’ll have superior knowledge versus the generalist because they speak the language.”
While being comfortable with an adviser is important, what ultimately matters is the quality of advice. Is it true that different professions have certain tendencies as a group, both good and bad, that could benefit from being managed? It turns out that they do.
This week, I’m going to look at some highfliers whose income can rise to unbelievable levels one year and all but disappear the next — in this case, people in the oil and gas business and professional athletes. Next week, I’m planning to look at executives in Silicon Valley and in real estate whose wealth is predicated on a volatile asset: the company they are building and hope to sell before interest dries up. And last, I’ll look at the slow but steady earners: doctors and lawyers.
In all of them, I have found behavioral tendencies that may frustrate their advisers but that the rest of us can use to make better decisions.
RIDING OUT BOOMS AND BUSTS To say wealth in West Texas and other oil and gas regions is cyclical is putting it mildly. Booms and busts go with the business.
Jay Reynolds, president and chief executive of Rod Ric Drilling in Midland, Tex., followed his father into the oil and gas business. But when he struck out on his own, he got a lesson in the fickleness of the business. He borrowed heavily to buy Rod Ric Drilling in 1980 and then watched for nearly two decades as demand for drilling equipment for oil and gas fields fell or remained below what it had been. Over that time, the bank he borrowed from failed, and he worried that his loan would be called.
“We were able to get through those years by being very careful with what we did and how we did it,” Mr. Reynolds, 56, said. “These recent years have been a surprise. Hydraulic fracturing has brought these fields to life.”
What he learned from the experience was the need to manage cash and the benefit of diversifying sources of income as well as investments. He said he has been buying real estate recently with an eye toward mineral rights and royalties, which could be a source of income.
Mr. Reynolds said he had balanced the high risk in this business by taking less risk in his investment portfolio — an approach anyone with a volatile or lumpy income could benefit from.
“Our clients’ businesses are so capital-intensive that they could easily sink all their net worth into their business,” said Dane E. Crunk, co-founder and managing director of Syntal Capital Partners, which works primarily with oil and gas clients like Mr. Reynolds. “When they’re bringing capital to us, it’s not for rates of return. It’s seeking diversification away from their core business and preservation of capital.”
Mr. Crunk said his firm worked to keep some money safe, creating a modern rainy day fund. That idea is often overlooked in the oil and gas business and beyond.
“I learned early that things can change in a very unexpected way,” Mr. Reynolds said. “When things get better, they get better very quickly. But there is a downside. Out here, you don’t bet the farm.”
HANDLING A WINDFALL While people who go lose it all in the oil business could make it all back in the next boom, most athletes have just one windfall in their lives. There are all too many stories about athletes spending a lifetime’s worth of income in just a few years and having no idea where it went.
Advisers said one of their big problems was persuading clients that they could be in that spot. “Everyone thinks it’s not going to be their problem,” said Frank Zecca, a senior vice president at Octagon Financial Services, whose clients include the Olympic swimmer Michael Phelps and the former basketball great Moses Malone. “I talk to them about how they’re going to need the money to last a long time.”
Spending everything they make and more can be a problem. To deal with that, Mr. Zecca said, he adopted a strategy a few years ago from the mental accounting playbook. Instead of nagging clients about buying foolish things, which he did for years to no avail, he persuades them to invest a certain percentage of their income every payday and then sets goals for them.
“We allow them to spend money on things that are commensurate with the money they’re making,” Mr. Zecca said. “When they make it out of the minors, they buy their watch. When they sign a new contract, that’s when they buy their car. When they get their long-term contract, that’s when they buy their parents a house.”
While this may sound like that old-fashioned concept of delaying gratification, he said it had worked incredibly well with his clients. They are goal-oriented, and spending targets give them something to aim for.
Now, he said, he no longer cares about what they are buying with the money that is left. “What do we care if they’re buying 10 $1,000 suits or one $10,000 watch?” he asked.
Athletes also have to deal with the issue of a second career. Many want to be sports analysts or coaches, but those jobs are few, and they rarely pay as well as being a professional athlete.
“They’re in a lifestyle that they’ll never be able to maintain once their career is over,” said Ron Rubin, managing principal at Bridgewater Wealth and Financial Management, whose clients include Dan Jansen, the Olympic speed skater, and Jerome Williams, a retired basketball player.
But he said his clients’ big concerns were no different from most people’s. Among them are what investments should they consider, how much will they pay in taxes and what should their budget be?
“Early on, most of them think they’ll play forever and have all the money they’ll ever need.” Mr. Rubin said. “That’s never the case. Unless you’re LeBron James or Tiger Woods, you’re going to have a budget when you’re finished playing.”
So the advice to athletes is much like the advice given to young workers: start saving early in your career and don’t wait until you are 50.
Click green for further info
Source: NYT
_________________________________________
These 7 States Tax You the Hardest
Click green for further info
There's nowhere you can go in the United States to escape taxes entirely. But where you live can make a big difference in when you can declare independence from your tax burden every year.
Tax Freedom Day is an easy-to-understand concept that the nonprofit Tax Foundation has developed to help people understand just how much they have to pay in federal, state, and local taxes. By taking the total amount of taxes that people have to pay and then dividing it by their income, you can figure out what percentage of the year you spend working for Uncle Sam and your state and local tax authorities.
This year, Tax Freedom Day for the nation as a whole falls on April 18. But people in some states will have to wait quite a while longer before they've paid off their tax burden for 2013. Here are the seven most heavily taxed states in the U.S., along with a brief explanation of what makes their taxes so much higher than the rest of the country.
7. Minnesota, April 23
Minnesota has a relatively high combination of individual income and sales taxes, with a top income tax rate of 7.85% and a 6.875% sales tax. But its corporate income tax of 9.8% is especially high, despite the fact that top private employer Target (NYSE: TGT ) is headquartered in Minneapolis. Even relatively low property taxes averaging just over $1,400 aren't enough to give residents much relief.
6. California, April 24
California is notorious for having retroactively raised its income tax rates on high-income taxpayers last year, imposing a top rate of 13.3%, the highest of any state. State sales taxes of 7.5% and a fairly high corporate income tax rate also add to Californians' tax burden, even though it hasn't stopped many high-profile technology companies from calling the state home. Limitations on property tax increases have kept many residents from bearing the full burden of skyrocketing property values during the housing boom.
4 (tie). Massachusetts, April 25
Massachusetts has a relatively low flat income tax of 5.25%, but a recent increase in its sales tax to 6.25% boosted overall revenue. With property taxes averaging nearly $2,000, homeowners get a triple tax burden, although many financial companies maintain a strong presence in the state.
4 (tie). Illinois, April 25
Illinois closely resembles its peer Massachusetts, with a 5% flat income tax rate and the same 6.25% sales tax. A higher corporate rate offsets slightly lower property taxes, although corporate taxes didn't stop Boeing (NYSE: BA ) from relocating its corporate headquarters to the state from Seattle more than a decade ago. A gasoline tax that's in the top five in the country helps push its overall burden higher.
3. New Jersey, May 4
As we get to the three most heavily taxed states, rates for various taxes go up considerably. New Jersey boasts a top income tax rate of nearly 9%, sales taxes of 7%, and property taxes averaging more than $2,800. In addition, with a high concentration of businesses, corporate tax collections are also among the highest in the nation.
2. New York, May 6
New York's tax rates are actually lower than New Jersey's, with a top rate of about 8.8% and a 4% sales tax. Yet because of the high average income of New Yorkers, the state collects more in income tax revenue than any other state. Most cities tack on an average of nearly 4.5% in additional sales taxes, and with plenty of high-income businesses calling New York home, including Wall Street's most profitable institutions, the state's corporate tax brings in the second most revenue of any state.
1. Connecticut, May 13
Again, tax rates don't tell the whole story for Connecticut, with a modest 6.7% top income tax rate and just over $2,500 in property taxes. But high gasoline taxes combined with the 6.35% sales tax, as well as high average incomes resulting from its proximity to the New York City metropolitan area, make Connecticut the costliest state in the U.S. for taxes. The state is a center for the insurance industry, with Hartford Financial (NYSE: HIG ) among the leading employers, and defense-related companies United Technologies (NYSE: UTX ) and General Dynamics (NYSE: GD) also have substantial operations there.
Think twice about where you live
It's important to remember that the Tax Foundation's calculations are all based on aggregate measures, and they won't necessarily reflect your personal Tax Freedom Day. But as a general rule, choosing where to live can make a big impact on your total tax liability, and while taxes aren't necessarily the most important factor in making that choice, they definitely deserve at least some consideration.
Boeing's choice of Illinois for a headquarters doesn't change the fact that the aircraft-maker has a huge opportunity in front of it. But the 787 Dreamliner debacle has some wondering whether Boeing can deliver on its full potential.
In our premium research report on the company, two of The Motley Fool's best minds on industrials have collaborated to provide investors with the key must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.
Click green for further info
Source: Internet
______________________________________________
Click green for further info
There's nowhere you can go in the United States to escape taxes entirely. But where you live can make a big difference in when you can declare independence from your tax burden every year.
Tax Freedom Day is an easy-to-understand concept that the nonprofit Tax Foundation has developed to help people understand just how much they have to pay in federal, state, and local taxes. By taking the total amount of taxes that people have to pay and then dividing it by their income, you can figure out what percentage of the year you spend working for Uncle Sam and your state and local tax authorities.
This year, Tax Freedom Day for the nation as a whole falls on April 18. But people in some states will have to wait quite a while longer before they've paid off their tax burden for 2013. Here are the seven most heavily taxed states in the U.S., along with a brief explanation of what makes their taxes so much higher than the rest of the country.
7. Minnesota, April 23
Minnesota has a relatively high combination of individual income and sales taxes, with a top income tax rate of 7.85% and a 6.875% sales tax. But its corporate income tax of 9.8% is especially high, despite the fact that top private employer Target (NYSE: TGT ) is headquartered in Minneapolis. Even relatively low property taxes averaging just over $1,400 aren't enough to give residents much relief.
6. California, April 24
California is notorious for having retroactively raised its income tax rates on high-income taxpayers last year, imposing a top rate of 13.3%, the highest of any state. State sales taxes of 7.5% and a fairly high corporate income tax rate also add to Californians' tax burden, even though it hasn't stopped many high-profile technology companies from calling the state home. Limitations on property tax increases have kept many residents from bearing the full burden of skyrocketing property values during the housing boom.
4 (tie). Massachusetts, April 25
Massachusetts has a relatively low flat income tax of 5.25%, but a recent increase in its sales tax to 6.25% boosted overall revenue. With property taxes averaging nearly $2,000, homeowners get a triple tax burden, although many financial companies maintain a strong presence in the state.
4 (tie). Illinois, April 25
Illinois closely resembles its peer Massachusetts, with a 5% flat income tax rate and the same 6.25% sales tax. A higher corporate rate offsets slightly lower property taxes, although corporate taxes didn't stop Boeing (NYSE: BA ) from relocating its corporate headquarters to the state from Seattle more than a decade ago. A gasoline tax that's in the top five in the country helps push its overall burden higher.
3. New Jersey, May 4
As we get to the three most heavily taxed states, rates for various taxes go up considerably. New Jersey boasts a top income tax rate of nearly 9%, sales taxes of 7%, and property taxes averaging more than $2,800. In addition, with a high concentration of businesses, corporate tax collections are also among the highest in the nation.
2. New York, May 6
New York's tax rates are actually lower than New Jersey's, with a top rate of about 8.8% and a 4% sales tax. Yet because of the high average income of New Yorkers, the state collects more in income tax revenue than any other state. Most cities tack on an average of nearly 4.5% in additional sales taxes, and with plenty of high-income businesses calling New York home, including Wall Street's most profitable institutions, the state's corporate tax brings in the second most revenue of any state.
1. Connecticut, May 13
Again, tax rates don't tell the whole story for Connecticut, with a modest 6.7% top income tax rate and just over $2,500 in property taxes. But high gasoline taxes combined with the 6.35% sales tax, as well as high average incomes resulting from its proximity to the New York City metropolitan area, make Connecticut the costliest state in the U.S. for taxes. The state is a center for the insurance industry, with Hartford Financial (NYSE: HIG ) among the leading employers, and defense-related companies United Technologies (NYSE: UTX ) and General Dynamics (NYSE: GD) also have substantial operations there.
Think twice about where you live
It's important to remember that the Tax Foundation's calculations are all based on aggregate measures, and they won't necessarily reflect your personal Tax Freedom Day. But as a general rule, choosing where to live can make a big impact on your total tax liability, and while taxes aren't necessarily the most important factor in making that choice, they definitely deserve at least some consideration.
Boeing's choice of Illinois for a headquarters doesn't change the fact that the aircraft-maker has a huge opportunity in front of it. But the 787 Dreamliner debacle has some wondering whether Boeing can deliver on its full potential.
In our premium research report on the company, two of The Motley Fool's best minds on industrials have collaborated to provide investors with the key must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.
Click green for further info
Source: Internet
______________________________________________
7 Ways to Turn $250,000 Into Retirement Income
With 10,000 baby boomers hitting retirement age every day, financial planners are hearing a lot of questions about how to convert savings into income while interest rates are at rock-bottom lows.
We asked eight advisers the same simple question: What would you advise someone who wants to turn $250,000 from their retirement savings into a steady income stream today? Assume this retiree has other assets in a diversified portfolio and this is the amount set aside purely to generate income.
Why the quarter-million number? Because U.S. Census Bureau data shows that the average net worth of a 65-year-old with some college education is $500,000. That person can put half of his or her overall net worth toward income generation and still have Social Security and other assets to draw on to maintain a diverse portfolio and a source of emergency funds.
Here is the advice of the financial planners on investing $250,000 for income:
Use the Ladder: Russell Francis, Portland Fixed Income Specialists, Beaverton, Ore.
"I would ladder a diversified combination of taxable CDs, 'taxable' munis and corporate bonds and hold them to maturity. The ladder would initially be from 1-10 years, and as they mature, we would reinvest unused proceeds further out in the ladder, likely increasing yield to counter inflation." Laddering is the term used for varying bond holdings so they mature at different dates.
[Read: 5 Ways to Sabotage Your Nest Egg.]
Consider annuities with inflation protection: Chris Long, Long Financial Planning, Chicago
"This will provide a guaranteed income with inflation protection. It will also provide higher income than [individual investors] could withdraw if they managed the money themselves. I ran a quick quote for immediate annuities through Income Solutions [an annuities advisory] for a 65-year-old man beginning May 1, 2013. I received quotes of $994-$1002 per month with a 3 percent increase each year. This represents a withdrawal rate of about 4.8 percent a year."
Use annuities and short-term bonds as an anchor: Rand Spero, Street Smart Financial, Lexington, Mass.
"Choosing an immediate annuity plus short-term bonds can be an option to explore now for the $250,000 investment. One can consider diversifying the short-term bond funds to include a small portion of emerging market bonds that have higher yields and some growth possibility over the next 20-plus years. Overall, I would be cautious now given the current low interest-rate environment to get locked into anything long-term."
[Read: Will Your Target-Date Funds Retire Before You Do?]
Use stock dividends to provide income: Dennis Stearns, Stearns Financial Group, Greensboro, N.C.
"Given that dividend payout ratios for high-quality dividend-growing stocks are at a multi-decade low, and that these stocks would provide over 3 percent cash flow growing at an average of 5 percent to 10 percent or more per year, we would put half the money in this area. It's the safest time in decades to own high-quality stocks if you're focused on cash flow," Stearns says. He cited AT&T and Verizon as examples. Then there's mutual funds: "Put the other half in opportunistic bond managers like Loomis Sayles Bond, Pimco All Asset and Total Return [funds], Osterweis Strategic Income and Pioneer Strategic Income. The yield would be over 4 percent with a good ability to adjust to future bond conditions as interest rates begin to rise," he says.
Remember to factor in required minimum withdrawals: Robert Reed, Personal Financial Advisors, Covington, La.
"At 70.5 years, the required minimum distributions [RMDs] start. So, one could set up a portfolio of laddered CDs and U.S. government and agency bonds to approximate the RMD. This would as much as guarantee the assets and provide for income via the RMD. This strategy would work even if one didn't tie the asset maturities to RMD," Reed says. He suggests working with an adviser since "there may be opportunities to enhance the income over time, depending on interest-rate fluctuations."
Cash and Treasury Inflation-Protected Securities (TIPS) will be best as inflation rises: Jay Hutchins, The Wealth Conservatory, Lebanon, N.H.
"The prospects for inflation and rising interest rates renders everything except cash and short-term TIPS risky, and both cash and short-term TIPS generate very low income. But given your criteria [of steady income stream], some sort of immediate annuity from a strong insurance company--or maybe even divided between a couple--would likely fit your bill best."
Generate income with dividends and fixed income: Maryan K. Jaross, Gold Medal Waters, Boulder, Colo.
Create a portfolio "across the market in all asset classes, [which] generates interest from the fixed-income side as well as dividends through the equity side, plus additional cash when asset classes need to be rebalanced. Selling the winners and reinvesting in the losers--the hardest discipline for an investor to achieve without the assistance of a professional adviser--because we never know which asset class will be at the top. Cash is taken out at these points to satisfy goals, the most important of which is usually the retirement living expense."
More From US News & World Report
With 10,000 baby boomers hitting retirement age every day, financial planners are hearing a lot of questions about how to convert savings into income while interest rates are at rock-bottom lows.
We asked eight advisers the same simple question: What would you advise someone who wants to turn $250,000 from their retirement savings into a steady income stream today? Assume this retiree has other assets in a diversified portfolio and this is the amount set aside purely to generate income.
Why the quarter-million number? Because U.S. Census Bureau data shows that the average net worth of a 65-year-old with some college education is $500,000. That person can put half of his or her overall net worth toward income generation and still have Social Security and other assets to draw on to maintain a diverse portfolio and a source of emergency funds.
Here is the advice of the financial planners on investing $250,000 for income:
Use the Ladder: Russell Francis, Portland Fixed Income Specialists, Beaverton, Ore.
"I would ladder a diversified combination of taxable CDs, 'taxable' munis and corporate bonds and hold them to maturity. The ladder would initially be from 1-10 years, and as they mature, we would reinvest unused proceeds further out in the ladder, likely increasing yield to counter inflation." Laddering is the term used for varying bond holdings so they mature at different dates.
[Read: 5 Ways to Sabotage Your Nest Egg.]
Consider annuities with inflation protection: Chris Long, Long Financial Planning, Chicago
"This will provide a guaranteed income with inflation protection. It will also provide higher income than [individual investors] could withdraw if they managed the money themselves. I ran a quick quote for immediate annuities through Income Solutions [an annuities advisory] for a 65-year-old man beginning May 1, 2013. I received quotes of $994-$1002 per month with a 3 percent increase each year. This represents a withdrawal rate of about 4.8 percent a year."
Use annuities and short-term bonds as an anchor: Rand Spero, Street Smart Financial, Lexington, Mass.
"Choosing an immediate annuity plus short-term bonds can be an option to explore now for the $250,000 investment. One can consider diversifying the short-term bond funds to include a small portion of emerging market bonds that have higher yields and some growth possibility over the next 20-plus years. Overall, I would be cautious now given the current low interest-rate environment to get locked into anything long-term."
[Read: Will Your Target-Date Funds Retire Before You Do?]
Use stock dividends to provide income: Dennis Stearns, Stearns Financial Group, Greensboro, N.C.
"Given that dividend payout ratios for high-quality dividend-growing stocks are at a multi-decade low, and that these stocks would provide over 3 percent cash flow growing at an average of 5 percent to 10 percent or more per year, we would put half the money in this area. It's the safest time in decades to own high-quality stocks if you're focused on cash flow," Stearns says. He cited AT&T and Verizon as examples. Then there's mutual funds: "Put the other half in opportunistic bond managers like Loomis Sayles Bond, Pimco All Asset and Total Return [funds], Osterweis Strategic Income and Pioneer Strategic Income. The yield would be over 4 percent with a good ability to adjust to future bond conditions as interest rates begin to rise," he says.
Remember to factor in required minimum withdrawals: Robert Reed, Personal Financial Advisors, Covington, La.
"At 70.5 years, the required minimum distributions [RMDs] start. So, one could set up a portfolio of laddered CDs and U.S. government and agency bonds to approximate the RMD. This would as much as guarantee the assets and provide for income via the RMD. This strategy would work even if one didn't tie the asset maturities to RMD," Reed says. He suggests working with an adviser since "there may be opportunities to enhance the income over time, depending on interest-rate fluctuations."
Cash and Treasury Inflation-Protected Securities (TIPS) will be best as inflation rises: Jay Hutchins, The Wealth Conservatory, Lebanon, N.H.
"The prospects for inflation and rising interest rates renders everything except cash and short-term TIPS risky, and both cash and short-term TIPS generate very low income. But given your criteria [of steady income stream], some sort of immediate annuity from a strong insurance company--or maybe even divided between a couple--would likely fit your bill best."
Generate income with dividends and fixed income: Maryan K. Jaross, Gold Medal Waters, Boulder, Colo.
Create a portfolio "across the market in all asset classes, [which] generates interest from the fixed-income side as well as dividends through the equity side, plus additional cash when asset classes need to be rebalanced. Selling the winners and reinvesting in the losers--the hardest discipline for an investor to achieve without the assistance of a professional adviser--because we never know which asset class will be at the top. Cash is taken out at these points to satisfy goals, the most important of which is usually the retirement living expense."
More From US News & World Report
- 5 Lessons From the Last Stock Crash
- The Big Tax Shelter Many Financial Planners Overlook
- 2 Simple Steps to Make Your Retirement Savings Leap ________________________________________________
Article 1 of 2
WARNING
These two articles about retiring in Thailand have been placed by STAF, Inc. for two reasons:
(1) Do your research & travel to the location to experience it BEFORE you invest any additional funds in any place but you old neighborhood where you have lived. Even though the place may be in you original country, see it with your own eyes. These 2 articles are not to say "go or do not go to Thailand or any any location" - this is to point out: Beware, do your research, study & experience the location
(2) to draw your attention to the real facts what ever they may be - that is the only way to avoid serious mistakes. You are the only one who knows what is suitable for you - make your final decision based on you own research and observations.
Phuket, Thailand Gets More Appealing for Retirees
Date: 2013
Thailand's Phuket Island is an internationally famous beach destination, and rightfully so. Beautiful sandy shores, separated by rocky headlands, grace the entire west coast of the island, the largest in Thailand. The surrounding Andaman Sea is warm, clear and inviting, one of Phuket's main attractions.
Onshore Phuket is a welcoming place that can quickly begin to feel like home. More than 100,000 foreign residents have chosen to make a life here. Foreigners from across the globe have integrated into the local community, transforming Phuket into a multicultural, international retirement destination. Expats make up more than 21 percent of the total permanent population of Phuket Province.
One of the biggest appeals is the cost of living. Rent, especially, is a global bargain. You can find a comfortable rental for as little as $350 to $400 per month, and most rentals come fully furnished. All things considered, including groceries, utilities, entertainment and your own motorbike for transportation, a retired couple could live here on a monthly budget of as little as $1,000.
For that very low cost, you could be buying a big and interesting lifestyle. If you're a night owl, you need look no further than Patong, where the party lasts until the wee hours of the night. Maybe you prefer to spend your days on the links. If so, you'll have your choice of six superb golf courses on the island. Restaurants, ranging from friendly one-star shacks to acclaimed, five-star international establishments, are abundant.
Phuket Island's large foreign population is scattered throughout several towns and villages. Patong is the largest town on the west coast; it's the one famous for its nightlife. To the north and south of Patong are the peaceful coastal towns of Surin, Kamala, Kata, Karon and many smaller villages.
Another reason Phuket is so appealing as a retirement destination is that everything you need is available on the island, including top-tier medical care and Thailand's second busiest international airport. Locals like to point out that they never have to go to Bangkok--ever. (And that's generally considered a very good thing.)
Medical care is not only international standard (Bangkok Phuket Hospital has Joint Commission International accreditation) but a great value, as well. Thailand is one of the top spots in the world for medical tourism. Care in Phuket can average 20 percent to 80 percent less than "back home," and the quality of care, according to expats living here, can be far superior.
Phuket has something for nearly every budget. Again, if your retirement budget is limited, you could live inland, in Phuket Town or in one of the smaller villages on the north or south ends of the island, and enjoy a very comfortable and full life on as little as $1,000 per month. If your nest egg is more generous, you could live an elegant and affordable lifestyle in Patong or another upscale coastal village such as Surin and Karon.
Luc Montens, an expat who has been retired in Patong for 12 years, sums it up well: "Phuket is not too big, and it's not too crowded. We love the greenery and the weather and being close to an international airport. There is no need to go to Bangkok for any reason."
The area is increasingly drawing a wider range of expats. "At one time, older single men would come here for a good time, maybe marry a Thai woman, settle down and start a new family. The area used to be tremendously popular with the young backpacking crowd, as well," Montens says. "Now, more families are coming to the area. They are bringing their children, enrolling them in one of the international schools and staying for life."
Other long-time foreigners in the area agree. The mix of people moving to Phuket has definitely changed for the better, making Phuket more appealing for would-be retirees.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 28 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter. Her newest book, How To Buy Real Estate Overseas, published by Wiley & Sons, is the culmination of decades of personal experience living and investing around the world.
Source: US News & World Report
Click green for further info
BUT wait..... - let's see what the public says about this article:
(1) More than 100,000 foreign residents have chosen to make a life here. I MOVED HERE IN 2002 AND PHUKET IS NO NEAR WHAT IT USED TO BE. Way to over crowed and the crime rate is to high, attracting criminals from many countries. Don't even think of buying a motorcycle as the roads are far to dangerous to ride one, like being in the wild west. Cost of living in Phuket is far higher than living in other provinces, at least twice as high in house rental. Okay to vacation here, but don't get caught doing drugs of any kind, like the ya-ba from Burma, Thai jails are hell, and it will cost you plenty to get out. Stay away from renting jet skies, you'll get skammed for damage you didn't do. Careful of the tuk-tuk taxi mafia also.
(2) Thank you for providing a much needed perspective before some hard working retired couple will waste assets going there because of this article which has no overall perspective
(3) Kathleen Peddicord always paints a rosy, and often unrealistic picture in her articles about foreign retirement. Beware.
(4) Thailand is a great place to live - but I would say Phuket is probably the biggest sh*thole of an island in the whole country. Tourist traps, scams, overcrowding, police that are even more corrupt than the rest of Thailand... meh, this article is all wrong.
If you want a great place to retire in Thailand - head for Isaan. Udon Thani is great - small, but not too small, they have an airport, international hospital, shopping mall, plenty of culture, plenty of small-town charm with some big city amenities. Love it.
(5) Been there several times when I was still in the service. Yes, definitely watch out for the jet ski mafia. They tried to tell one of my mates that he'd damaged one of their jet skies, even though, he didn't hit anything but the waves. When he refused to pay up, they pulled a gun on him. Don't even bother to report to the police; they just look at you like you are an idiot.
__________________________________
Article 2 of 2
See the WARNING above at the beginning of the article 1 of 2
The Ideal Retirement Haven You’ve Never Heard Of
Date: 2012
Few places in the world meet all the criteria of an ideal retirement haven. Here’s one place that does that most of the world has never heard of: Hua Hin, Thailand. Dollar for dollar, you likely could enjoy a much higher standard of living in Hua Hin than back home, no matter where back home happens to be.
Hua Hin offers miles of clean beaches, good year-round weather, and a large foreign community. In Hua Hin, you’re close to the cultural offerings of Bangkok, but removed from the chaos of the capital. And because Hua Hin is a small city, it does not suffer from the population pressures found in Thailand’s larger urban areas. There are nine golf courses in and around Hua Hin with more under construction. Mountains, caves, waterfalls, and abundant wildlife can be enjoyed at the seven national parks within a two-hour drive.
A new internationally accredited hospital opened recently, further supporting the city’s top-notch medical care facilities and growing reputation as a medical tourism destination. Medical procedures performed in Thailand cost anywhere from 20 percent to 80 percent less than the same procedures performed in the U.S., while the equipment used and the care received are as good or better than that available in the West.
Housing is plentiful, with condominiums and private homes stretched out near and along the beach. Secure and modern gated subdivisions are also numerous, especially around the golf courses and in the hills on the edges of town.
Nearly 20 percent of the 84,883 permanent residents of Hua Hin have immigrated from abroad with the specific intention of making a new life here. They are involved in the larger community, attend meetings with the city council, and have a real influence on the future of the city. They’ve brought a lot of their former lives with them, including reading clubs, festivals, cycling clubs, soccer leagues, wine-tasting, and darts tournaments. There is something happening almost every day.
New arrivals to Hua Hin appreciate the cleanliness of the area, the widespread use of English, the lack of corruption, and the low-cost, high standard of living, all of which make this a very attractive destination for retirees on a moderate budget. A couple could live a fully-appointed, rich, and interesting life here on a budget of as little as $1,100 per month.
In many respects, Hua Hin could be described as the San Miguel de Allende or Boquete of Southeast Asia. Those destinations, in Mexico andPanama respectively, are home to big and growing expat retiree communities. Like them, Hua Hin is home to enough local Thai people to keep things interesting. You’ll know that you’re in a foreign country. But, as with launching a new life in San Miguel or Boquete, moving to Hua Hin does not require total immersion in a new culture. There are enough expats and activities to ease the transition.
Perhaps the best part about retirement in Hua Hin is that you are not obliged to give up comforts and conveniences from back home. You’ll be able to live better and enhance your quality of life, because the infrastructure and services to do so are both available and affordable.
The abundance of restaurants is impressive and eating out is one activity that almost all expats enjoy on a regular basis. A deliciously relaxing Thai massage is another affordable indulgence, and practitioners are located downtown and along the length of Petchkasem Road. A two-hour traditional massage costs 300 to 600 baht—that’s just $10 to $20. An experienced full-time housekeeper charges around 7,500 baht ($225) per month.
Hua Hin has one of the most welcoming climates in Thailand. The average year-round temperature is a balmy 83 degrees Fahrenheit, with average highs of 88 degrees and lows of 77. The town is located in one of the driest parts of Thailand, with an average annual rainfall of just 37 inches.
Rents are almost always negotiable, at least to an extent. Your biggest decision here will be whether you want to live on the beach or more inland. The beach is lined with condominiums and apartments, many with direct ocean views. A furnished two-bedroom place with an ocean view rents for $800 to $1,000 per month. However, back from the beach, rents are half as much.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 25 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter. Her book, How To Retire Overseas—Everything You Need To Know To Live Well Abroad For Less, was recently released by Penguin Books.
Source: US News & World Report
Click green for further info
BUT wait... - let's see what the public says about this article:
(1) I lived near Bangkok and still own property (thru my Thai wife) in Hua Hin.
Living in a different culture just doesn't work for some people - such Tom Green. No offense to Mr. Green, but it's just the way it is. He should just stay in the good ol USA.
I love Hua Hin and the general area, and I love Thai culture.
Thai culture is much more gentle, nuanced, and detailed than North Americans are used to and that's what makes it so nice - like a bottle a fine wine or single malt Scotch.
You have to learn and adapt, then all will be OK.
WARNING
These two articles about retiring in Thailand have been placed by STAF, Inc. for two reasons:
(1) Do your research & travel to the location to experience it BEFORE you invest any additional funds in any place but you old neighborhood where you have lived. Even though the place may be in you original country, see it with your own eyes. These 2 articles are not to say "go or do not go to Thailand or any any location" - this is to point out: Beware, do your research, study & experience the location
(2) to draw your attention to the real facts what ever they may be - that is the only way to avoid serious mistakes. You are the only one who knows what is suitable for you - make your final decision based on you own research and observations.
Phuket, Thailand Gets More Appealing for Retirees
Date: 2013
Thailand's Phuket Island is an internationally famous beach destination, and rightfully so. Beautiful sandy shores, separated by rocky headlands, grace the entire west coast of the island, the largest in Thailand. The surrounding Andaman Sea is warm, clear and inviting, one of Phuket's main attractions.
Onshore Phuket is a welcoming place that can quickly begin to feel like home. More than 100,000 foreign residents have chosen to make a life here. Foreigners from across the globe have integrated into the local community, transforming Phuket into a multicultural, international retirement destination. Expats make up more than 21 percent of the total permanent population of Phuket Province.
One of the biggest appeals is the cost of living. Rent, especially, is a global bargain. You can find a comfortable rental for as little as $350 to $400 per month, and most rentals come fully furnished. All things considered, including groceries, utilities, entertainment and your own motorbike for transportation, a retired couple could live here on a monthly budget of as little as $1,000.
For that very low cost, you could be buying a big and interesting lifestyle. If you're a night owl, you need look no further than Patong, where the party lasts until the wee hours of the night. Maybe you prefer to spend your days on the links. If so, you'll have your choice of six superb golf courses on the island. Restaurants, ranging from friendly one-star shacks to acclaimed, five-star international establishments, are abundant.
Phuket Island's large foreign population is scattered throughout several towns and villages. Patong is the largest town on the west coast; it's the one famous for its nightlife. To the north and south of Patong are the peaceful coastal towns of Surin, Kamala, Kata, Karon and many smaller villages.
Another reason Phuket is so appealing as a retirement destination is that everything you need is available on the island, including top-tier medical care and Thailand's second busiest international airport. Locals like to point out that they never have to go to Bangkok--ever. (And that's generally considered a very good thing.)
Medical care is not only international standard (Bangkok Phuket Hospital has Joint Commission International accreditation) but a great value, as well. Thailand is one of the top spots in the world for medical tourism. Care in Phuket can average 20 percent to 80 percent less than "back home," and the quality of care, according to expats living here, can be far superior.
Phuket has something for nearly every budget. Again, if your retirement budget is limited, you could live inland, in Phuket Town or in one of the smaller villages on the north or south ends of the island, and enjoy a very comfortable and full life on as little as $1,000 per month. If your nest egg is more generous, you could live an elegant and affordable lifestyle in Patong or another upscale coastal village such as Surin and Karon.
Luc Montens, an expat who has been retired in Patong for 12 years, sums it up well: "Phuket is not too big, and it's not too crowded. We love the greenery and the weather and being close to an international airport. There is no need to go to Bangkok for any reason."
The area is increasingly drawing a wider range of expats. "At one time, older single men would come here for a good time, maybe marry a Thai woman, settle down and start a new family. The area used to be tremendously popular with the young backpacking crowd, as well," Montens says. "Now, more families are coming to the area. They are bringing their children, enrolling them in one of the international schools and staying for life."
Other long-time foreigners in the area agree. The mix of people moving to Phuket has definitely changed for the better, making Phuket more appealing for would-be retirees.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 28 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter. Her newest book, How To Buy Real Estate Overseas, published by Wiley & Sons, is the culmination of decades of personal experience living and investing around the world.
Source: US News & World Report
Click green for further info
- 10 Ways to Pay for Retirement
- The 10 Sunniest Places to Retire
- Best Places to Retire for Under $40,000
BUT wait..... - let's see what the public says about this article:
(1) More than 100,000 foreign residents have chosen to make a life here. I MOVED HERE IN 2002 AND PHUKET IS NO NEAR WHAT IT USED TO BE. Way to over crowed and the crime rate is to high, attracting criminals from many countries. Don't even think of buying a motorcycle as the roads are far to dangerous to ride one, like being in the wild west. Cost of living in Phuket is far higher than living in other provinces, at least twice as high in house rental. Okay to vacation here, but don't get caught doing drugs of any kind, like the ya-ba from Burma, Thai jails are hell, and it will cost you plenty to get out. Stay away from renting jet skies, you'll get skammed for damage you didn't do. Careful of the tuk-tuk taxi mafia also.
(2) Thank you for providing a much needed perspective before some hard working retired couple will waste assets going there because of this article which has no overall perspective
(3) Kathleen Peddicord always paints a rosy, and often unrealistic picture in her articles about foreign retirement. Beware.
(4) Thailand is a great place to live - but I would say Phuket is probably the biggest sh*thole of an island in the whole country. Tourist traps, scams, overcrowding, police that are even more corrupt than the rest of Thailand... meh, this article is all wrong.
If you want a great place to retire in Thailand - head for Isaan. Udon Thani is great - small, but not too small, they have an airport, international hospital, shopping mall, plenty of culture, plenty of small-town charm with some big city amenities. Love it.
(5) Been there several times when I was still in the service. Yes, definitely watch out for the jet ski mafia. They tried to tell one of my mates that he'd damaged one of their jet skies, even though, he didn't hit anything but the waves. When he refused to pay up, they pulled a gun on him. Don't even bother to report to the police; they just look at you like you are an idiot.
__________________________________
Article 2 of 2
See the WARNING above at the beginning of the article 1 of 2
The Ideal Retirement Haven You’ve Never Heard Of
Date: 2012
Few places in the world meet all the criteria of an ideal retirement haven. Here’s one place that does that most of the world has never heard of: Hua Hin, Thailand. Dollar for dollar, you likely could enjoy a much higher standard of living in Hua Hin than back home, no matter where back home happens to be.
Hua Hin offers miles of clean beaches, good year-round weather, and a large foreign community. In Hua Hin, you’re close to the cultural offerings of Bangkok, but removed from the chaos of the capital. And because Hua Hin is a small city, it does not suffer from the population pressures found in Thailand’s larger urban areas. There are nine golf courses in and around Hua Hin with more under construction. Mountains, caves, waterfalls, and abundant wildlife can be enjoyed at the seven national parks within a two-hour drive.
A new internationally accredited hospital opened recently, further supporting the city’s top-notch medical care facilities and growing reputation as a medical tourism destination. Medical procedures performed in Thailand cost anywhere from 20 percent to 80 percent less than the same procedures performed in the U.S., while the equipment used and the care received are as good or better than that available in the West.
Housing is plentiful, with condominiums and private homes stretched out near and along the beach. Secure and modern gated subdivisions are also numerous, especially around the golf courses and in the hills on the edges of town.
Nearly 20 percent of the 84,883 permanent residents of Hua Hin have immigrated from abroad with the specific intention of making a new life here. They are involved in the larger community, attend meetings with the city council, and have a real influence on the future of the city. They’ve brought a lot of their former lives with them, including reading clubs, festivals, cycling clubs, soccer leagues, wine-tasting, and darts tournaments. There is something happening almost every day.
New arrivals to Hua Hin appreciate the cleanliness of the area, the widespread use of English, the lack of corruption, and the low-cost, high standard of living, all of which make this a very attractive destination for retirees on a moderate budget. A couple could live a fully-appointed, rich, and interesting life here on a budget of as little as $1,100 per month.
In many respects, Hua Hin could be described as the San Miguel de Allende or Boquete of Southeast Asia. Those destinations, in Mexico andPanama respectively, are home to big and growing expat retiree communities. Like them, Hua Hin is home to enough local Thai people to keep things interesting. You’ll know that you’re in a foreign country. But, as with launching a new life in San Miguel or Boquete, moving to Hua Hin does not require total immersion in a new culture. There are enough expats and activities to ease the transition.
Perhaps the best part about retirement in Hua Hin is that you are not obliged to give up comforts and conveniences from back home. You’ll be able to live better and enhance your quality of life, because the infrastructure and services to do so are both available and affordable.
The abundance of restaurants is impressive and eating out is one activity that almost all expats enjoy on a regular basis. A deliciously relaxing Thai massage is another affordable indulgence, and practitioners are located downtown and along the length of Petchkasem Road. A two-hour traditional massage costs 300 to 600 baht—that’s just $10 to $20. An experienced full-time housekeeper charges around 7,500 baht ($225) per month.
Hua Hin has one of the most welcoming climates in Thailand. The average year-round temperature is a balmy 83 degrees Fahrenheit, with average highs of 88 degrees and lows of 77. The town is located in one of the driest parts of Thailand, with an average annual rainfall of just 37 inches.
Rents are almost always negotiable, at least to an extent. Your biggest decision here will be whether you want to live on the beach or more inland. The beach is lined with condominiums and apartments, many with direct ocean views. A furnished two-bedroom place with an ocean view rents for $800 to $1,000 per month. However, back from the beach, rents are half as much.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 25 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter. Her book, How To Retire Overseas—Everything You Need To Know To Live Well Abroad For Less, was recently released by Penguin Books.
Source: US News & World Report
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BUT wait... - let's see what the public says about this article:
(1) I lived near Bangkok and still own property (thru my Thai wife) in Hua Hin.
Living in a different culture just doesn't work for some people - such Tom Green. No offense to Mr. Green, but it's just the way it is. He should just stay in the good ol USA.
I love Hua Hin and the general area, and I love Thai culture.
Thai culture is much more gentle, nuanced, and detailed than North Americans are used to and that's what makes it so nice - like a bottle a fine wine or single malt Scotch.
You have to learn and adapt, then all will be OK.
(2) I live in Thailand more than 11 years now, and wish I went someplace else 5 years ago but no longer am able to make another move.
The truth about Thailand, the government rips you off on any investing you do in Thailand, they give you x options to get your money here and then change it a few years down the road. Just search about it. They change the visa laws every other month making it hard to stay long term. Investment was 1 million baht but to many people invested, (can you believe that to many) so they changed it to 3 million baht and again to many so they changed it to 10 million baht and lost all investors, now mind you the people whom invested at 1 and 3 million lost all the rights they were given and they can not remove the money invested. Thailand is home of the SCAM and the government is the worst one.
And the person who wrote this story you should be ashamed of yourself. Anyone even considering a move to Thailand and worst Hua Hin just do a search for Hua Hin attacks it is the worst place to move, they not only rip you off they try to kill you in the process. And the police WILL NOT help you. Yes as a tourist in and out Hua Hin is OK but as a place to retire and live find greener pastures.
Search for Thailand Government changes and even go to thaivisa.com you will find how bad Thailand trully is for expats.
The truth about Thailand, the government rips you off on any investing you do in Thailand, they give you x options to get your money here and then change it a few years down the road. Just search about it. They change the visa laws every other month making it hard to stay long term. Investment was 1 million baht but to many people invested, (can you believe that to many) so they changed it to 3 million baht and again to many so they changed it to 10 million baht and lost all investors, now mind you the people whom invested at 1 and 3 million lost all the rights they were given and they can not remove the money invested. Thailand is home of the SCAM and the government is the worst one.
And the person who wrote this story you should be ashamed of yourself. Anyone even considering a move to Thailand and worst Hua Hin just do a search for Hua Hin attacks it is the worst place to move, they not only rip you off they try to kill you in the process. And the police WILL NOT help you. Yes as a tourist in and out Hua Hin is OK but as a place to retire and live find greener pastures.
Search for Thailand Government changes and even go to thaivisa.com you will find how bad Thailand trully is for expats.
(3) Dear Tom, sorry to hear that you are so unhappy in Thailand. It is true, that not everyone can adapt to the Thai way or its culture yet alone live in this beautiful country. Thailand is a land of freedom and free will, and if people are unhappy they are free to go and live in another country. To those who wish to experience Thailand, it is imperative to be prepared and get as much information from the Embassy, or friends living here already. Alternatively, come and visit the country and stay for a few months (2-3) over 2-3 years before making the big decision. Hua Hin is a beautiful, restful and safe destination and ideal for retirees to buy/rent property. There are many things to do here....for more info: www.itsinhuahin.com will give you an insight, as well as the Royal Rotary Club or Skal Club Hua Hin & Cha Am.
_______________________________________________________________________
Five Really Dumb Money Moves You've Got to Avoid
Click green for further info
You know the smartest things to do with your money. But what are the worst moves? What should you avoid?
Weirdly enough, they are things that a surprising number of people are still doing—even though they probably know, in their heart of hearts, how foolish they really are.
More from WSJ.com: How to Save More For Retirement Without Really Trying
Any list is going to be incomplete. But here are five to avoid.
1. Reaching for yield
What this country needs is a good 5% certificate of deposit. Instead the collapse in interest rates, and the Federal Reserve's policy of keeping them down for as long as possible, is driving people crazy—especially people who need to generate income from their investments.
In these circumstances, people start to do really foolish things in the desperate hunt for higher interest rates. That includes taking on crazy amounts of risk, or investing in complex products they don't understand, in the hope of higher yields. The Fed is producing a bull market in scams, Ponzi schemes and associated rackets.
The Securities and Exchange Commission recently warned about an epidemic of bogus high-yield "corporate promissory notes" being marketed to investors by scam artists.
The Wall Street Journal's Jason Zweig highlighted the woes of those sold complex "reverse convertibles," a legal but complicated product with embedded risks. Eric Lewis, chief investment officer of Bedrock Capital Management in Los Altos, Calif., suggests that if you can't explain an investment to a friend, including what might go wrong, you should think twice.
A high-yield bond fund such as the iShares High Yield Corporate Bond exchange-traded fund, which lends money to risky companies, sports a yield of about 5%. That's the maximum yield you can earn without taking on much more risk.
2. Going into the poor house to send Junior to a country-club college
Over the past 40 years, the cost of tuition and fees at a private university has tripled—after accounting for inflation. The cost of a public university has quadrupled.
The cost of getting a bachelor's degree has become a scandal in this country. Students spend $160,000 on a four-year degree and the results are too often questionable.
Financial planners strongly advise parents against plundering their own retirement savings, which they are likely to need, to pay for this.
More from WSJ.com: We Want to Be More Charitable. But How?
Admittedly, a degree has become a protection racket—you can't get a job without one, but there are fewer jobs for those with them. But the smart move for the budget-constrained is to get a bachelor's degree at a public university. The tuition and fees average less than $9,000 a year instead of $30,000 at a private college.
3. Owning stock in your employer
This is one of the silliest and riskiest moves any investor can make. If the company hits trouble, you get whacked twice. You can lose your job and your savings—all in one fell swoop. Ask anyone who worked for Enron…or Lehman Brothers.
The law, amazingly, actually encourages this crazy move. While employers' 401(k) plans are subject to punitive regulations, lest they allow you to take on too much "risk," employers are allowed to offer their own stock among the investment options. Many do.
The Employee Benefit Research Institute says that the percentage of 401(k) assets held in employers' stock has been halved since 2000, but the numbers are still alarming. Furthermore, it's the youngest workers—those best able to take a gamble—who are shunning their employers' company stock.
At companies where the 401(k) plan offers the option, workers aged 40 or over typically hold about 20% of their entire 401(k) account in the company's stock, according to EBRI data. Crazy.
4. Taking Social Security too early
If you can afford to delay taking your Social Security retirement benefit, do.
Someone earning $50,000 a year who starts claiming Social Security as soon as he or she is able, age 62, will typically collect a monthly check of about $1,000, according to the Social Security Administration.
If they wait until they are 70, that amount would double.
Taking Social Security too early, or without thinking through the consequences, is one of the biggest financial blunders people can make—roughly on a par with buying tech stocks in 2000 or a Las Vegas condo in 2006. The lure of getting money early can blind people to the big cost down the road.
More from WSJ.com: Plan for Bigger Travel Delays
Many retirees may not have much of a choice. Hard labor at low pay over a lifetime takes its toll on a person. Also, many companies all but force older workers into early retirements.
In any case, it doesn't take more than just a few years before the total money accrued with the higher, later benefits surpasses the total earned starting at the earlier retirement age.
But that understates the bigger issue. Social Security is insurance. For many retirees, the big risk isn't that they will run out of money before they turn 70, but after 85. According to the Centers for Disease Control, more than half of women currently age 65 will live to 85 or longer, and three out of eight men.
David Blanchett, head of retirement research for financial research firm Morningstar, says it makes sense for women, married couples and those with good health to wait longer for a bigger paycheck.
5. Buying long-term bonds
A surprising number of people still subscribe to the flawed and circular argument that bonds, including long-term government bonds, are "safe." In reality, bonds—especially long-term government bonds—are the rare example of a bubble that has been explicitly declared.
The Fed is openly printing money and using it to buy up such bonds, driving up the price and driving down the interest rates, in order to help the economy. There is no dispute about this. It's public policy.
A 30-year Treasury bond currently sports an interest rate of just 3.1%. That's barely half a percentage point above long-term inflation forecasts. Based on history, the yield should be at least 4.5%, or two percentage points above inflation.
Thirty-year Treasury inflation-protected securities, known as TIPS, sport a "real" or inflation-adjusted yield of 0.6% a year. Again, it should be 2%.
The only reason to buy such bonds in any quantity is to gamble on a 1930s-style depression and world-wide deflation. Such bonds are a gamble, not a safe haven.
Source: WSJ
Click green for further info
_________________________________________________________
_______________________________________________________________________
Five Really Dumb Money Moves You've Got to Avoid
Click green for further info
You know the smartest things to do with your money. But what are the worst moves? What should you avoid?
Weirdly enough, they are things that a surprising number of people are still doing—even though they probably know, in their heart of hearts, how foolish they really are.
More from WSJ.com: How to Save More For Retirement Without Really Trying
Any list is going to be incomplete. But here are five to avoid.
1. Reaching for yield
What this country needs is a good 5% certificate of deposit. Instead the collapse in interest rates, and the Federal Reserve's policy of keeping them down for as long as possible, is driving people crazy—especially people who need to generate income from their investments.
In these circumstances, people start to do really foolish things in the desperate hunt for higher interest rates. That includes taking on crazy amounts of risk, or investing in complex products they don't understand, in the hope of higher yields. The Fed is producing a bull market in scams, Ponzi schemes and associated rackets.
The Securities and Exchange Commission recently warned about an epidemic of bogus high-yield "corporate promissory notes" being marketed to investors by scam artists.
The Wall Street Journal's Jason Zweig highlighted the woes of those sold complex "reverse convertibles," a legal but complicated product with embedded risks. Eric Lewis, chief investment officer of Bedrock Capital Management in Los Altos, Calif., suggests that if you can't explain an investment to a friend, including what might go wrong, you should think twice.
A high-yield bond fund such as the iShares High Yield Corporate Bond exchange-traded fund, which lends money to risky companies, sports a yield of about 5%. That's the maximum yield you can earn without taking on much more risk.
2. Going into the poor house to send Junior to a country-club college
Over the past 40 years, the cost of tuition and fees at a private university has tripled—after accounting for inflation. The cost of a public university has quadrupled.
The cost of getting a bachelor's degree has become a scandal in this country. Students spend $160,000 on a four-year degree and the results are too often questionable.
Financial planners strongly advise parents against plundering their own retirement savings, which they are likely to need, to pay for this.
More from WSJ.com: We Want to Be More Charitable. But How?
Admittedly, a degree has become a protection racket—you can't get a job without one, but there are fewer jobs for those with them. But the smart move for the budget-constrained is to get a bachelor's degree at a public university. The tuition and fees average less than $9,000 a year instead of $30,000 at a private college.
3. Owning stock in your employer
This is one of the silliest and riskiest moves any investor can make. If the company hits trouble, you get whacked twice. You can lose your job and your savings—all in one fell swoop. Ask anyone who worked for Enron…or Lehman Brothers.
The law, amazingly, actually encourages this crazy move. While employers' 401(k) plans are subject to punitive regulations, lest they allow you to take on too much "risk," employers are allowed to offer their own stock among the investment options. Many do.
The Employee Benefit Research Institute says that the percentage of 401(k) assets held in employers' stock has been halved since 2000, but the numbers are still alarming. Furthermore, it's the youngest workers—those best able to take a gamble—who are shunning their employers' company stock.
At companies where the 401(k) plan offers the option, workers aged 40 or over typically hold about 20% of their entire 401(k) account in the company's stock, according to EBRI data. Crazy.
4. Taking Social Security too early
If you can afford to delay taking your Social Security retirement benefit, do.
Someone earning $50,000 a year who starts claiming Social Security as soon as he or she is able, age 62, will typically collect a monthly check of about $1,000, according to the Social Security Administration.
If they wait until they are 70, that amount would double.
Taking Social Security too early, or without thinking through the consequences, is one of the biggest financial blunders people can make—roughly on a par with buying tech stocks in 2000 or a Las Vegas condo in 2006. The lure of getting money early can blind people to the big cost down the road.
More from WSJ.com: Plan for Bigger Travel Delays
Many retirees may not have much of a choice. Hard labor at low pay over a lifetime takes its toll on a person. Also, many companies all but force older workers into early retirements.
In any case, it doesn't take more than just a few years before the total money accrued with the higher, later benefits surpasses the total earned starting at the earlier retirement age.
But that understates the bigger issue. Social Security is insurance. For many retirees, the big risk isn't that they will run out of money before they turn 70, but after 85. According to the Centers for Disease Control, more than half of women currently age 65 will live to 85 or longer, and three out of eight men.
David Blanchett, head of retirement research for financial research firm Morningstar, says it makes sense for women, married couples and those with good health to wait longer for a bigger paycheck.
5. Buying long-term bonds
A surprising number of people still subscribe to the flawed and circular argument that bonds, including long-term government bonds, are "safe." In reality, bonds—especially long-term government bonds—are the rare example of a bubble that has been explicitly declared.
The Fed is openly printing money and using it to buy up such bonds, driving up the price and driving down the interest rates, in order to help the economy. There is no dispute about this. It's public policy.
A 30-year Treasury bond currently sports an interest rate of just 3.1%. That's barely half a percentage point above long-term inflation forecasts. Based on history, the yield should be at least 4.5%, or two percentage points above inflation.
Thirty-year Treasury inflation-protected securities, known as TIPS, sport a "real" or inflation-adjusted yield of 0.6% a year. Again, it should be 2%.
The only reason to buy such bonds in any quantity is to gamble on a 1930s-style depression and world-wide deflation. Such bonds are a gamble, not a safe haven.
Source: WSJ
Click green for further info
_________________________________________________________
The Health Benefits That Cut Your Pay
Date: February 2013
NOT long ago, a 23-year-old woman joined my company as an assistant in the advertising sales department at a starting salary of $35,000. Smart, ambitious and poised, she should have a promising future. Unfortunately, her earnings prospects are threatened. Like many Americans, she’s unaware of how much of her compensation is being eaten up by health care costs, and how much this share will grow as long as the increase in health costs exceeds growth in gross domestic product. That’s just math.
The Affordable Care Act does require employers, beginning this year, to note on W-2’s how much both the employee and the employer contributed to health care costs. Maybe that will help diminish the ignorance regarding true health care costs. But even with greater awareness, many Americans still might not understand that the largest effect of the cost of our health care system is to reduce the amount of money they actually take home.
I have estimated that our 23-year-old employee will bear at least $1.8 million in health care costs over her lifetime. That’s assuming that such costs don’t grow by more than current government estimates, that she never has a working spouse, and that she and her dependents don’t ever contract a serious illness.
Even after decades of financial engineering, including both the already-implemented and the planned aspects of the Affordable Care Act, the American health care system can be called successful mainly in its ability to hide its enormous cost.
My new employee thinks that she is paying roughly $2,600 for health care in her first year on the job — her $500 deductible plus her $2,100 share of the company’s health insurance premiums. In fact, she’s paying more than $10,000 into the country’s health care system. As her employer, our company will pay $6,190 of her health care costs, money that might otherwise go to her in salary. (From my point of view as a chief executive of a company, health care is just a different form of compensation.) She is also paying more than $1,500 in federal and state taxes to finance Medicare and Medicaid.
Clearly, personal health insurance is not the only way our employees pay into our health care system. There is the 1.45 percent of every paycheck that goes to Medicare, as well as the portion matched by the employer. Furthermore, a large slice of her general taxes are, in fact, health care costs: roughly 20 percent of federal spending and 10 percent of state spending support Medicare and Medicaid. She must pay for all of this.
And of course, when my 23-year-old employee turns 65, she’ll be eligible for Medicare and will begin to pay Medicare premiums of, say, $140 a month in today’s dollars. She is likely to do so for the rest of her life.
For employees like her, however, the greatest impact of exploding health care costs will arrive in the form of stagnating wages. Before the Affordable Care Act became law, President Obama’s Council of Economic Advisers warned that its projections to 2040 showed that “essentially all of the rise in average compensation due to increasing productivity over time would go to health insurance, and essentially none would go to take-home wages.”
This year, a standard deductible family policy for our company will carry premiums of roughly $23,000. How has health care gotten so expensive that even a middle-income worker faces such a burden?
In the world of health care analysis, there are basically two schools of thought. The first is that health care is so fundamentally different from other goods and services that a normal market can’t drive down its prices. This school of thought makes a number of assumptions: health care consumers are desperate and have no leverage to avoid high pricing. An individual’s need for care depends on luck and genes, so that social fairness requires pooling risk.
An aging population needs ever more care. New technologies offer beneficial advances but only at great expense. For-profit motivations conflict with fundamental human needs, requiring extensive regulatory oversight. Managing the insurance system requires costly and complex administration (with direct annual administrative costs now running at roughly $1,900 per household).
AN alternative to the conventional wisdom is that consumer ignorance is what differentiates health care from other industries. This results in a lack of discipline that allows for pervasive excess care and exorbitant prices. If people understood how much they were paying for health care, they would insist on greater control of these resources, creating incentives for the kind of competition in price and quality we have seen develop in other industries — even those that were once assumed to be too complex for the average consumer to readily understand, such as personal computing.
We manage health care as if our needs were always urgent and unpredictable, ignoring how deeply this industry is integrated into our lives, with a vast amount of care now devoted to treating ongoing, chronic conditions.
Our system takes resources from all of us, pools the cost of certainties disguised as risks, extracts enormous costs of administration and complexity and then returns — to almost all of us — a fraction of the money we’ve put in.
Try to imagine what homeowners’ insurance would look like if we expected everyone’s house to burn down and then added coverage for each homeowner’s utility bills and furniture wear-and-tear. This would be insanely expensive without meaningfully reducing anyone’s risk. That, in short, is how health insurance works.
Through private insurance, Medicare and Medicaid, our health system relies on centralized cost control and clever adjustments to payment formulas to try to tame the beast. Traditional health experts may repackage their ideas, but they are never discouraged by past failure. So the new Accountable Care Organizations are a reinvention of H.M.O.’s. The Independent Payment Advisory Board is the new Medicare Payment Advisory Commission, or MedPAC. Bundled payments are the new Prospective Payment System.
We often see some early benefit from the introduction of new ideas, but over time such initiatives are always subjugated by our system’s nefarious economic incentives. Implement cost control reforms and watch providers circumvent new rules and guidelines. Reduce reimbursement rates for procedures, and witness providers expand the definition of required services. Convert fee-for-service reimbursements into bundled payments, and soon more severe diagnoses are given. Attempt to use government buying power, and see providers turn to lobbyists to keep prices up. We are approaching a half-century of fighting this losing battle.
Some believe the only hope for cost control is to adopt a single-payer system as used in several other countries, even though the increasingly high costs of many of these systems look good only when compared with our unique disaster.
Whatever your views of the effectiveness of these approaches, in our exquisitely responsive political system, government intervention in health care has often allowed for giveaways to powerful industry interests. Inserted in the recent bill to delay the fiscal cliff was, for instance, a provision mandating the delay of scheduled reductions in the price of a dialysis drug. (Medicare has financed almost all dialysis treatment for 40 years, at extraordinary expense and questionable safety, a cautionary tale for how single payer would work in our system.) Those who think single payer will establish real discipline in the United States haven’t been to a political fund-raiser or heard of the Iowa caucuses. They don’t understand how special interests already distort government reimbursement policies.
Here’s a completely different idea, one that might actually work. Let’s give every American health insurance, but only for truly rare, major and unpredictable illnesses. In other words, let’s cover everyone but not everything. It would take a generation to transition fully to such a system, but eventually the most routine and expected medical treatments, from checkups and minor illnesses all the way to common chronic conditions and expected end-of-life care, would be funded from our individual health savings; only the most major needs — for example, cancer, stroke and trauma — would be paid out of insurance.
Defining insurable events more narrowly and enabling Americans to use the premium savings to build health savings would reduce the distortions inherent in our insurance approach. Most importantly, it will also compel providers to compete on the basis of price, quality and service, as they meet the one force that creates real incentives for good performance, innovation and safety: the consumer.
Source: NYT & David Goldhill is the chief executive of GSN, a media company, and the author of “Catastrophic Care: How American Health Care Killed My Father — and How We Can Fix It.”
_________________________________
Date: February 2013
NOT long ago, a 23-year-old woman joined my company as an assistant in the advertising sales department at a starting salary of $35,000. Smart, ambitious and poised, she should have a promising future. Unfortunately, her earnings prospects are threatened. Like many Americans, she’s unaware of how much of her compensation is being eaten up by health care costs, and how much this share will grow as long as the increase in health costs exceeds growth in gross domestic product. That’s just math.
The Affordable Care Act does require employers, beginning this year, to note on W-2’s how much both the employee and the employer contributed to health care costs. Maybe that will help diminish the ignorance regarding true health care costs. But even with greater awareness, many Americans still might not understand that the largest effect of the cost of our health care system is to reduce the amount of money they actually take home.
I have estimated that our 23-year-old employee will bear at least $1.8 million in health care costs over her lifetime. That’s assuming that such costs don’t grow by more than current government estimates, that she never has a working spouse, and that she and her dependents don’t ever contract a serious illness.
Even after decades of financial engineering, including both the already-implemented and the planned aspects of the Affordable Care Act, the American health care system can be called successful mainly in its ability to hide its enormous cost.
My new employee thinks that she is paying roughly $2,600 for health care in her first year on the job — her $500 deductible plus her $2,100 share of the company’s health insurance premiums. In fact, she’s paying more than $10,000 into the country’s health care system. As her employer, our company will pay $6,190 of her health care costs, money that might otherwise go to her in salary. (From my point of view as a chief executive of a company, health care is just a different form of compensation.) She is also paying more than $1,500 in federal and state taxes to finance Medicare and Medicaid.
Clearly, personal health insurance is not the only way our employees pay into our health care system. There is the 1.45 percent of every paycheck that goes to Medicare, as well as the portion matched by the employer. Furthermore, a large slice of her general taxes are, in fact, health care costs: roughly 20 percent of federal spending and 10 percent of state spending support Medicare and Medicaid. She must pay for all of this.
And of course, when my 23-year-old employee turns 65, she’ll be eligible for Medicare and will begin to pay Medicare premiums of, say, $140 a month in today’s dollars. She is likely to do so for the rest of her life.
For employees like her, however, the greatest impact of exploding health care costs will arrive in the form of stagnating wages. Before the Affordable Care Act became law, President Obama’s Council of Economic Advisers warned that its projections to 2040 showed that “essentially all of the rise in average compensation due to increasing productivity over time would go to health insurance, and essentially none would go to take-home wages.”
This year, a standard deductible family policy for our company will carry premiums of roughly $23,000. How has health care gotten so expensive that even a middle-income worker faces such a burden?
In the world of health care analysis, there are basically two schools of thought. The first is that health care is so fundamentally different from other goods and services that a normal market can’t drive down its prices. This school of thought makes a number of assumptions: health care consumers are desperate and have no leverage to avoid high pricing. An individual’s need for care depends on luck and genes, so that social fairness requires pooling risk.
An aging population needs ever more care. New technologies offer beneficial advances but only at great expense. For-profit motivations conflict with fundamental human needs, requiring extensive regulatory oversight. Managing the insurance system requires costly and complex administration (with direct annual administrative costs now running at roughly $1,900 per household).
AN alternative to the conventional wisdom is that consumer ignorance is what differentiates health care from other industries. This results in a lack of discipline that allows for pervasive excess care and exorbitant prices. If people understood how much they were paying for health care, they would insist on greater control of these resources, creating incentives for the kind of competition in price and quality we have seen develop in other industries — even those that were once assumed to be too complex for the average consumer to readily understand, such as personal computing.
We manage health care as if our needs were always urgent and unpredictable, ignoring how deeply this industry is integrated into our lives, with a vast amount of care now devoted to treating ongoing, chronic conditions.
Our system takes resources from all of us, pools the cost of certainties disguised as risks, extracts enormous costs of administration and complexity and then returns — to almost all of us — a fraction of the money we’ve put in.
Try to imagine what homeowners’ insurance would look like if we expected everyone’s house to burn down and then added coverage for each homeowner’s utility bills and furniture wear-and-tear. This would be insanely expensive without meaningfully reducing anyone’s risk. That, in short, is how health insurance works.
Through private insurance, Medicare and Medicaid, our health system relies on centralized cost control and clever adjustments to payment formulas to try to tame the beast. Traditional health experts may repackage their ideas, but they are never discouraged by past failure. So the new Accountable Care Organizations are a reinvention of H.M.O.’s. The Independent Payment Advisory Board is the new Medicare Payment Advisory Commission, or MedPAC. Bundled payments are the new Prospective Payment System.
We often see some early benefit from the introduction of new ideas, but over time such initiatives are always subjugated by our system’s nefarious economic incentives. Implement cost control reforms and watch providers circumvent new rules and guidelines. Reduce reimbursement rates for procedures, and witness providers expand the definition of required services. Convert fee-for-service reimbursements into bundled payments, and soon more severe diagnoses are given. Attempt to use government buying power, and see providers turn to lobbyists to keep prices up. We are approaching a half-century of fighting this losing battle.
Some believe the only hope for cost control is to adopt a single-payer system as used in several other countries, even though the increasingly high costs of many of these systems look good only when compared with our unique disaster.
Whatever your views of the effectiveness of these approaches, in our exquisitely responsive political system, government intervention in health care has often allowed for giveaways to powerful industry interests. Inserted in the recent bill to delay the fiscal cliff was, for instance, a provision mandating the delay of scheduled reductions in the price of a dialysis drug. (Medicare has financed almost all dialysis treatment for 40 years, at extraordinary expense and questionable safety, a cautionary tale for how single payer would work in our system.) Those who think single payer will establish real discipline in the United States haven’t been to a political fund-raiser or heard of the Iowa caucuses. They don’t understand how special interests already distort government reimbursement policies.
Here’s a completely different idea, one that might actually work. Let’s give every American health insurance, but only for truly rare, major and unpredictable illnesses. In other words, let’s cover everyone but not everything. It would take a generation to transition fully to such a system, but eventually the most routine and expected medical treatments, from checkups and minor illnesses all the way to common chronic conditions and expected end-of-life care, would be funded from our individual health savings; only the most major needs — for example, cancer, stroke and trauma — would be paid out of insurance.
Defining insurable events more narrowly and enabling Americans to use the premium savings to build health savings would reduce the distortions inherent in our insurance approach. Most importantly, it will also compel providers to compete on the basis of price, quality and service, as they meet the one force that creates real incentives for good performance, innovation and safety: the consumer.
Source: NYT & David Goldhill is the chief executive of GSN, a media company, and the author of “Catastrophic Care: How American Health Care Killed My Father — and How We Can Fix It.”
_________________________________
Kaiser Permanente
The Face of Future Health Care
Date: March 20, 2013
Click green for further info
OAKLAND, Calif. — When people talk about the future of health care, Kaiser Permanente is often the model they have in mind.
The organization, which combines a nonprofit insurance plan with its own hospitals and clinics, is the kind of holistic health system that President Obama’s health care law encourages.
Kaiser has sophisticated electronic records and computer systems that — after 10 years and $30 billion in technology spending — have led to better-coordinated patient care, another goal of the president. And because the plan is paid a fixed amount for medical care per member, there is a strong financial incentive to keep people healthy and out of the hospital, the same goal of the hundreds of accountable care organizations now being created.
“Over the course of the last 15 years, they’ve been just going into high gear and doing everything right,” said Dr. Thomas S. Bodenheimer, a health policy expert at the University of California, San Francisco who recently chose Kaiser as his own health plan.
Yet even with all of its effort, its chairman and chief executive, George C. Halvorson, acknowledges Kaiser has yet to achieve the holy grail of delivering that care at a low enough cost. He says he and other health systems must fundamentally rethink what they do or risk having cost controls imposed on them either by the government or by employers, who are absorbing the bulk of health insurance costs. “We think the future of health care is going to be rationing or re-engineering,” he said.
Mr. Halvorson is convinced that Kaiser’s improvements in the quality of care save money. But he also says that the way to get costs lower is to move care farther and farther from the hospital setting — and even out of doctors’ offices. Kaiser is experimenting with ways to provide care at home or over the Internet, without the need for a physical office visit at all. He also argues that lower costs are going to be about finding ways to get people to take more responsibility for their health — for losing weight, for example, or bringing theirblood pressure down.
“The obesity work is incredibly difficult,” he said. “It’s very, very hard to move the needle.”
Other health care experts say that while Kaiser has a place in the future, whether it is the best model for the country’s health care remains unclear. “They have not translated some of their strengths into better prices,” said David Lansky, the president and chief executive of the Pacific Business Group on Health, which represents employers on the West Coast, many of whom purchase coverage from Kaiser for their workers.
And there are other concerns, such as whether an all-encompassing system like Kaiser’s can really be replicated and whether the limits it places on where patients can seek care will be accepted by enough people to make a difference. Or whether, as the nation’s flirtation with health maintenance organizations, or H.M.O.’s, in the 1990s showed — people will balk at the concept of not being able to go to any doctor or hospital of their choice.
“The more you restrict the patient’s ability to do what they want, you risk reigniting the backlash we had in the past,” Mr. Lansky said.
In many ways, Kaiser has been ahead of the curve on health care for decades. Started by a surgeon running a tiny hospital near Desert Center, Calif., to serve construction workers, Kaiser became an H.M.O. with its own doctors and hospital in the mid-1940s and expanded beyond California over the next 50 years. But, as H.M.O.’s fell out of favor, it was forced to leave states like New York, Connecticut and Texas.
But Kaiser persevered, and its membership, which peaked in 1998, is now about the same as its previous high of 9.1 million, about three-quarters of whom are in California. It still operates in a half-dozen states from Maryland to Hawaii and is looking to expand in the Mid-Atlantic region, where membership had been dropping.
The organization, with some $50 billion in annual revenue, owns 37 hospitals and employs 17,000 doctors, all on salary. And its integrated model is in favor again. Hospitals across the country are buying physician practices or partnering with doctors and health insurers to form accountable care organizations, or A. C.O.’s, as a way of controlling more aspects of patient care. Doctors are also creating so-called medical homes, where patient care is better coordinated.
The days when doctors, hospitals and other providers are paid separately for each procedure will disappear eventually, health experts say. Instead, providers will have financial incentives to encourage them to keep people healthy, including lump sums to care for patients or provide comprehensive care for a specific condition. “All of care is going to move down this path, and it has to,” Mr. Halvorson said. “Medical homes are doing it; the very best A. C.O’s are going to figure out how to do it.”
The move by hospitals to buy physician practices is being viewed cautiously by health experts, who say there are downsides to the creation of large health care systems that may be motivated by the desire to increase their clout in the market, making it easier to fill beds and charge the insurers more for care. “They become these huge local monopolies,” said Dr. Robert Berenson, a health policy expert at the Urban Institute.
But having an integrated system seems essential to the success of Kaiser and a handful of similar, if smaller, organizations, like Intermountain Healthcare in Utah and Geisinger Health System in Pennsylvania, although some work with doctors whom they do not employ. In California, Kaiser controls nearly every aspect of a patient’s care, from providing the M.R.I. for a diagnosis to filling a prescription at one of its pharmacies to running a hospital where the patient undergoes surgery.
“We have all the pieces,” said Philip Fasano, Kaiser’s chief information officer. “Anything a patient needs you get in the four walls of our offices,” he said. As a result, while Kaiser can point to an analysis done by Aon Hewitt, a benefits consultant, showing that its plans are typically at least 10 percent less expensive than others, especially where they control all the providers, its costs are more like the average in places in Ohio, where it does not have its own hospitals and offer as broad a range of services.
And some patients outside of California, where Kaiser operations are less concentrated, complain about being forced to travel for treatment by Kaiser providers. Arva Priola, a 62-year-old Kaiser patient in Fredericksburg, Va., said her Kaiser doctors “are wonderful,” but that the plan recently started requiring her to get some treatments where they had physical facilities.
To get IV antibiotics after surgery, for example, she recently had to drive an hour and a half to a Kaiser office in Tysons Corner, Va. “Who wants to drive when you’re sick?” she asked. Kaiser says it is adding more services closer to Fredericksburg.
A California state agency recently criticized Kaiser for the long wait times its members had for mental health services and for providing inaccurate information about what services it provides. Kaiser says it has corrected the misinformation and is working to reduce and better track member wait times.
Where Kaiser has a head start that others may have difficulty catching up to is its use of electronic records and technology systems for tracking patient care.
When Dr. Jennifer Slovis, a Kaiser internist in Oakland, recently saw a patient, she was able to spot that the patient had an abnormal blood test several years ago. By reading through the patient’s medical history, she determined he was now overdue for an M.R.I. to check the status of a growth in his brain. She was able to e-mail his endocrinologist and schedule the necessary tests without the patient having to make an appointment with the specialist or her having to make her own diagnosis. “It saved a lot of starting over,” she said.
In the last five or so years, Kaiser has also been using the information to identify those doctors or clinics that excel in certain areas, as well as those in need of improvement. The organization has also used the records to change how it delivers care, identifying patients at risk for developing bed sores in the hospital and then sending electronic alerts every two hours to remind the nurses to turn the patients. The percentage of patients with serious pressure ulcers, or bed sores, dropped to well under 1 percent from 3.5 percent.
“The tool is an enabler to give information to people who give a damn,” said Dr. Jack Cochran, the executive who represents Kaiser’s physicians through the Permanente Federation.
Mr. Halvorson, the Kaiser chief, who plans to retire at the end of this year, says the organization is providing evidence to other health systems that re-engineering works. “All of that adds up to better care and cheaper care,” he said.
Source: NYT
______________________________________________________
Immigration Reform Could Cost Social Security Billions
Important information for the U.S. citizens also
Things are not as most would think - they are better in this matter
Immigration reform is a hot button issue being debated across America, from the floor of the Capitol to main street U.S.A.
There are currently an estimated 11.5 million illegal immigrants living in the U.S., that's a 33% increase since 2000. And in fact, today 5.2% of the U.S. labor force consists of undocumented workers.
The “Gang of Eight,” a bipartisan group of eight senators, is currently working on a plan to reform immigration policy in the U.S. The group of lawmakers is expected to present its bill, which will provide a path to U.S. citizenship for all those living in this country illegally, on the floor of the Senate later in March.
Related: Pres. Obama: 'The Time Has Come to Pass Comprehensive Immigration Reform”
The senators have a difficult task. They must consider how legalizing over 10 million immigrants might affect jobs, border security and tax revenue. Another issue they must consider is that if passed, immigration reform could also impact Social Security taxes and checks.
Stephen Goss, chief actuary of the Social Security Administration estimates that 3.1 million illegal workers pay into Social Security each year. In 2010, undocumented workers and their employers paid $15 billion to Social Security with no intention of ever collecting benefits -- that year illegal workers only received $1 billion back.
How do working illegal immigrants pay in to and collect Social Security? Some are issued Social Security numbers with their temporary or student visas, others forge documents and were issued numbers by Social Security before they tightened their screening process in 2001, some steal numbers, and others simply make them up.
When workers pay Social Security under numbers that don’t match their names the administration sorts these into their “suspense” file. No one gets credit towards benefits for this money but the money does still go to the Social Security trust fund.
Related: Immigration Is an Economic Issue: Actress and Obama Campaign Co-Chair Eva Longoria
Over the course of many years, Goss estimates that a total of $150 billion in undocumented workers' money has flowed into the Social Security trust fund. That’s about 8% of the total $1.7 trillion Social Security has in reserve.
In 2010 Goss said if not for the millions of illegal workers paying into the system Social Security would have “entered persistent shortfall of tax revenue to cover payouts starting in 2009."
He tells The Daily Ticker today that things may have to change. “It might mean that we might have to have a higher tax rate or lower benefits,” he says.
While some argue legalizing millions of illegal immigrants will help keep Social Security solvent, Mark Krikorian, executive director of the Center for Immigration Studies disagrees.
“If they’re legalized then they can collect Social Security and guess what? People with low incomes get more out of Social Security, generally speaking, than they pay in," he argues. "So the Social Security argument is actually an argument for keeping illegal immigrants illegal because that way they won’t ever collect Social Security."
It’s true that undocumented workers typically earn lower wages. The average illegal immigrant run household makes about $17,000 less a year than its legal counterpart.
Edward Alden of the Council on Foreign Relations says that granting amnesty would actually lead to higher wages and allow immigrants to pay more towards Social Security.
"You have people who are often working in very low wage jobs because they’re uncertain about their status they’re scared," Aldin tells The Daily Ticker. "So these people generally, the analysis shows their wages will go up, they’re going to pay more into the Social Security system. The CBO has run these numbers, in the short-run there’s a big boost for the Social Security system."
Related: The Dollars and Sense of Immigration Reform
In 2007 the Congressional Budget Office projected that granting amnesty to illegal immigrants would actually boost Social Security funds $57 billion by 2017. Steven Goss of the Social Security Administration also claims that amnesty would more than double the numbers of those paying into social security and depending on legislation might benefit the fund.
Source:
Important information for the U.S. citizens also
Things are not as most would think - they are better in this matter
Immigration reform is a hot button issue being debated across America, from the floor of the Capitol to main street U.S.A.
There are currently an estimated 11.5 million illegal immigrants living in the U.S., that's a 33% increase since 2000. And in fact, today 5.2% of the U.S. labor force consists of undocumented workers.
The “Gang of Eight,” a bipartisan group of eight senators, is currently working on a plan to reform immigration policy in the U.S. The group of lawmakers is expected to present its bill, which will provide a path to U.S. citizenship for all those living in this country illegally, on the floor of the Senate later in March.
Related: Pres. Obama: 'The Time Has Come to Pass Comprehensive Immigration Reform”
The senators have a difficult task. They must consider how legalizing over 10 million immigrants might affect jobs, border security and tax revenue. Another issue they must consider is that if passed, immigration reform could also impact Social Security taxes and checks.
Stephen Goss, chief actuary of the Social Security Administration estimates that 3.1 million illegal workers pay into Social Security each year. In 2010, undocumented workers and their employers paid $15 billion to Social Security with no intention of ever collecting benefits -- that year illegal workers only received $1 billion back.
How do working illegal immigrants pay in to and collect Social Security? Some are issued Social Security numbers with their temporary or student visas, others forge documents and were issued numbers by Social Security before they tightened their screening process in 2001, some steal numbers, and others simply make them up.
When workers pay Social Security under numbers that don’t match their names the administration sorts these into their “suspense” file. No one gets credit towards benefits for this money but the money does still go to the Social Security trust fund.
Related: Immigration Is an Economic Issue: Actress and Obama Campaign Co-Chair Eva Longoria
Over the course of many years, Goss estimates that a total of $150 billion in undocumented workers' money has flowed into the Social Security trust fund. That’s about 8% of the total $1.7 trillion Social Security has in reserve.
In 2010 Goss said if not for the millions of illegal workers paying into the system Social Security would have “entered persistent shortfall of tax revenue to cover payouts starting in 2009."
He tells The Daily Ticker today that things may have to change. “It might mean that we might have to have a higher tax rate or lower benefits,” he says.
While some argue legalizing millions of illegal immigrants will help keep Social Security solvent, Mark Krikorian, executive director of the Center for Immigration Studies disagrees.
“If they’re legalized then they can collect Social Security and guess what? People with low incomes get more out of Social Security, generally speaking, than they pay in," he argues. "So the Social Security argument is actually an argument for keeping illegal immigrants illegal because that way they won’t ever collect Social Security."
It’s true that undocumented workers typically earn lower wages. The average illegal immigrant run household makes about $17,000 less a year than its legal counterpart.
Edward Alden of the Council on Foreign Relations says that granting amnesty would actually lead to higher wages and allow immigrants to pay more towards Social Security.
"You have people who are often working in very low wage jobs because they’re uncertain about their status they’re scared," Aldin tells The Daily Ticker. "So these people generally, the analysis shows their wages will go up, they’re going to pay more into the Social Security system. The CBO has run these numbers, in the short-run there’s a big boost for the Social Security system."
Related: The Dollars and Sense of Immigration Reform
In 2007 the Congressional Budget Office projected that granting amnesty to illegal immigrants would actually boost Social Security funds $57 billion by 2017. Steven Goss of the Social Security Administration also claims that amnesty would more than double the numbers of those paying into social security and depending on legislation might benefit the fund.
Source:
Running on Empty - Banks should raise more capital,
carry less debt—and never need a bailout again
By Mr. Cochrane - a professor of finance at the University of Chicago Booth School of Business, senior fellow of the Hoover Institution, and adjunct scholar of the Cato Institute.
In 2008 &2009, the large commercial banks nearly failed, inaugurating our great recession. They were saved by the Troubled Asset Relief Program, Federal Reserve lending and other government support. If you think all that was bad, imagine the ATMs going dark. What has been done to avoid a repetition of these events? Sadly, and despite all the noise you hear about bank regulation, not much.
The central problem, at the core of Anat Admati and Martin Hellwig's "The Bankers' New Clothes," is capital. In order to make $100 of loans, a typical bank borrows $97—from depositors, from money-market funds, from other banks, or from bondholders—and sells $3 of stock, its "capital." So if only 4% of the bank's loans fail, the shareholders are wiped out, and the bank cannot pay its debts. Worse, if there is a rumor that some loans are in trouble, creditors may "run," each trying to get his money out first, and force a needless bankruptcy. Think of Jimmy Stewart in "It's a Wonderful Life."
The Bankers' New Clothes
By Anat Admati and Martin Hellwig
Princeton, 398 pages, $29.95
When banks are on the brink, all sorts of other pathologies emerge. Bankers and their regulators may try to keep zombie loans on the books, hoping things will turn around. Or bankers may bet the farm on very risky loans that either save the bank or impose larger losses on creditors and the government. Ms. Admati and Mr. Hellwig explain all this nicely in their first few chapters.
The solution seems pretty obvious, no? Banks should fund their investments by selling a heck of a lot more stock and borrowing a heck of a lot less, especially in the form of run-prone short-term debt, as most other companies do.
Far more value was lost in the 2000 tech bust, for instance, than in the subprime mortgages that sparked the 2008 crisis, but the tech bust did not cause a financial crisis. Why? Tech companies were funded by stocks, not short-term debt. Worried shareholders can drive down the price of a stock, but they have no right to demand that the company redeem shares at yesterday's price, so they can't drive the company to bankruptcy in a run. Depositors and other short-term creditors have a fixed-value, first-come-first-serve promise from a bank—they can run.
More capital and less debt would stabilize the financial system in many ways. If a bank wants to rebuild its ratio of capital to assets from 1% to 2% by selling assets, it has to sell half of its assets. Doing so can spark a fire sale, especially if all the other banks are doing the same thing. If the same bank wants to rebuild capital from 49% to 50% of assets, it only has to sell 2% of its assets. That bank will also have a far easier time issuing more stock, rather than selling assets, which is a better way to build equity in the first place.
The U.S. government has instead addressed the risks of banking crises by guaranteeing bank debt. Guaranteeing debts creates perverse incentives, so our government tries to regulate the banks from taking excessive risks: "OK, cousin Louie, I'll cosign the loan for your Las Vegas trip, but no poker this time, and be in bed by 10."
Ms. Admati and Mr. Hellwig show how this approach has failed, repeatedly, over the course of many years—in the 1984 Continental Illinois rescue; in the Latin American debt crisis and savings-and-loan crisis in the 1980s; in the Asian-currency crisis and the collapse of Long-Term Capital Management in the 1990s; and in the recent financial crisis. Each time, our government bailed out more and more creditors in a wider array of institutions. Each time, our government wrote reams of new rules that banks quickly got around.
Now pretty much all of the big banks' debt is guaranteed, explicitly or implicitly through the widely held expectation that a big bank's creditors will be bailed out. But our regulators promise that next time, trust them, they really will spot trouble ahead and do something to stop it—even though our massive bank-regulation machinery failed to notice that subprime mortgages might be a bit risky in 2006 and even though, as Ms. Admati and Mr. Hellwig note, Europe's regulators still consider Greek government bonds to be risk-free assets.
Most basically, Ms. Admati and Mr. Hellwig point out that current regulation is focused on a bank's assets: the loans, securities and other investments that bring money in (and sometimes don't). They want us to focus instead on the bank's liabilities: the ways banks get money and the promises banks make to depositors and investors. Bank assets are not particularly risky or illiquid. Apple's profits from selling iPhones or a mutual fund's portfolio of stocks are far riskier than any bank's portfolio of loans and mortgage-backed securities, or even their much-disparaged trading books. Bank liabilities—too much debt and too much short-term debt—are the central problem that causes financial crises.
What about those "tough" new capital regulations that you keep reading about? They are not nearly as tough as you think. At best, the new Basel III international bank regulation agreement calls for a 7% ratio of capital to assets by a leisurely 2019 deadline. But that is the ratio of capital to "risk-weighted" assets. Risk-weighting is a complex system in which some assets count less against capital requirements than others. A dollar of mortgage assets might count as 50 cents, but it might count as 10 cents or less if it is a complex mortgage-backed security, and zero if it is government debt. When Ms. Admati and Mr. Hellwig unravel those "risk weights," we're still talking about 2% to 3% actual capital.
Foreseeing the usual risk-weighting games, Basel III requires a backstop 3% ratio of equity to all assets. "If this number looks outrageously low," Ms. Admati and Mr. Hellwig write, "it is because the number is outrageously low." Indeed.
This simple truth has been met by howls of protest and layers of obfuscation and derision by bankers, their consultants and many of their regulators. "Oh, you just don't understand the complexities of banking" is the basic attitude. "Go away and let the experts fix this." Well, Ms. Admati and Mr. Hellwig, top-notch academic financial economists, do understand the complexities of banking, and they helpfully slice through the bankers' self-serving nonsense. Demolishing these fallacies is the central point of "The Bankers' New Clothes."
No, they write, it was not always thus. In the 19th century, banks funded themselves with 40% to 50% capital. Depositors wouldn't lend to banks unless the banks had a lot of skin in the game. Without a government debt guarantee—and, early on, without limited liability—shareholders wanted less risk as well.
"Capital" is not "reserves," and requiring more capital does not reduce funds available for lending. Capital is a source of money, not a use of money. When, as Ms. Admati and Mr. Hellwig gleefully note, the British Bankers' Association complained in 2010 about regulations that would require banks to "hold"—the wrong verb—"an extra $600 billion of capital that might otherwise have been deployed as loans to businesses or households," it made an argument both "nonsensical and false," contradicting basic facts of a bank balance sheet. Requiring more capital does not require banks to raise one cent more money in order to make a loan. For every extra dollar of stock the bank must issue, it need borrow one dollar less.
Capital is not an inherently more expensive source of funds than debt. Banks have to promise stockholders high returns only because bank stock is risky. If banks issued much more stock, the authors patiently explain, banks' stock would be much less risky and their cost of capital lower. "Stocks" with bond-like risk need pay only bond-like returns. Investors who desire higher risk and returns can do their own leveraging—without government guarantees, thank you very much—to buy such stocks.
Nothing inherent in banking requires banks to borrow money rather than issue equity. Banks could also raise capital by retaining earnings and forgoing dividends, just as Microsoft did for years. Every dividend drains capital from banks and removes a layer of protection between us taxpayers and the next bailout. Ms. Admati and Mr. Hellwig are at their best in decrying U.S. regulators' decision to let banks pay dividends in 2007-08—amounting to half the TARP bailouts—and to let big banks begin paying out dividends again in 2011.
Why do banks and protective regulators howl so loudly at these simple suggestions? As Ms. Admati and Mr. Hellwig detail in their chapter "Sweet Subsidies," it's because bank debt is highly subsidized, and leverage increases the value of the subsidies to management and shareholders. To borrow without the government guarantees and expected bailouts, a bank with 3% capital would have to offer very high interest rates—rates that would make equity look cheap. Equity is expensive to banks only because it dilutes the subsidies they get from the government. That's exactly why increasing bank equity would be cheap for taxpayers and the economy, to say nothing of removing the costs of occasional crises.
And, in an all-too-short chapter on "The Politics of Banking," they show us how politicians and regulators like the cozy cronyism of the current system. Banks are, of course, "where the money is," and governments around the world use regulation to direct funds to politically favored businesses, to preferred industries, to homeowners and to the government itself. Politicians want to subsidize and protect their piggy bank. Regulators commonly become sympathetic to the interests of the industry they regulate, which advances their careers in government or back in industry. Last week's news coverage of Treasury Secretary Jack Lew's interesting career is only the most recent reminder.
Part of me wishes that Ms. Admati and Mr. Hellwig had been more specific in their criticisms: naming more names and quoting more nonsense, writing a gripping exposé dripping with their justified outrage. But their restraint is wise: Too much exposé would detract from the clarity of their ideas. So readers will have to recognize the arguments and add their own outrage.
Ms. Admati and Mr. Hellwig do not offer a detailed regulatory plan. They don't even advocate a precise number for bank capital, beyond a parenthetical suggestion that banks could get to 20% or 30% quickly by cutting dividend payments. (I would go further: Their ideas justify 50% or even 100%: When you swipe your ATM card, you could just sell $50 of bank stock.)
But this apparent omission, too, is a strength. A long, detailed regulatory proposal would simply distract us from the clear, central argument of "The Bankers' New Clothes": More capital and less debt, especially short-term debt, equals fewer crises, and common contrary arguments are nonsense. More capital would be far more effective at preventing crises than the tens of thousands of pages of Dodd-Frank regulations and its army of regulators, burrowed deep in the financial system, on a hopeless quest to keep highly leveraged and subsidized too-big-to-fail banks from taking too much risk. Once the rest of us accept this central idea, the details fill in naturally.
How much capital should banks issue? Enough so that it doesn't matter! Enough so that we never, ever hear again the cry that "banks need to be recapitalized" (at taxpayer expense)!
Source: Mr. Cochrane is a professor of finance at the University of Chicago Booth School of Business, senior fellow of the Hoover Institution, and adjunct scholar of the Cato Institute.
A version of this article appeared March 2, 2013, on page C5 in the U.S. edition of The Wall Street Journal, with the headline: Running on Empty.
____________________________________________
carry less debt—and never need a bailout again
By Mr. Cochrane - a professor of finance at the University of Chicago Booth School of Business, senior fellow of the Hoover Institution, and adjunct scholar of the Cato Institute.
In 2008 &2009, the large commercial banks nearly failed, inaugurating our great recession. They were saved by the Troubled Asset Relief Program, Federal Reserve lending and other government support. If you think all that was bad, imagine the ATMs going dark. What has been done to avoid a repetition of these events? Sadly, and despite all the noise you hear about bank regulation, not much.
The central problem, at the core of Anat Admati and Martin Hellwig's "The Bankers' New Clothes," is capital. In order to make $100 of loans, a typical bank borrows $97—from depositors, from money-market funds, from other banks, or from bondholders—and sells $3 of stock, its "capital." So if only 4% of the bank's loans fail, the shareholders are wiped out, and the bank cannot pay its debts. Worse, if there is a rumor that some loans are in trouble, creditors may "run," each trying to get his money out first, and force a needless bankruptcy. Think of Jimmy Stewart in "It's a Wonderful Life."
The Bankers' New Clothes
By Anat Admati and Martin Hellwig
Princeton, 398 pages, $29.95
When banks are on the brink, all sorts of other pathologies emerge. Bankers and their regulators may try to keep zombie loans on the books, hoping things will turn around. Or bankers may bet the farm on very risky loans that either save the bank or impose larger losses on creditors and the government. Ms. Admati and Mr. Hellwig explain all this nicely in their first few chapters.
The solution seems pretty obvious, no? Banks should fund their investments by selling a heck of a lot more stock and borrowing a heck of a lot less, especially in the form of run-prone short-term debt, as most other companies do.
Far more value was lost in the 2000 tech bust, for instance, than in the subprime mortgages that sparked the 2008 crisis, but the tech bust did not cause a financial crisis. Why? Tech companies were funded by stocks, not short-term debt. Worried shareholders can drive down the price of a stock, but they have no right to demand that the company redeem shares at yesterday's price, so they can't drive the company to bankruptcy in a run. Depositors and other short-term creditors have a fixed-value, first-come-first-serve promise from a bank—they can run.
More capital and less debt would stabilize the financial system in many ways. If a bank wants to rebuild its ratio of capital to assets from 1% to 2% by selling assets, it has to sell half of its assets. Doing so can spark a fire sale, especially if all the other banks are doing the same thing. If the same bank wants to rebuild capital from 49% to 50% of assets, it only has to sell 2% of its assets. That bank will also have a far easier time issuing more stock, rather than selling assets, which is a better way to build equity in the first place.
The U.S. government has instead addressed the risks of banking crises by guaranteeing bank debt. Guaranteeing debts creates perverse incentives, so our government tries to regulate the banks from taking excessive risks: "OK, cousin Louie, I'll cosign the loan for your Las Vegas trip, but no poker this time, and be in bed by 10."
Ms. Admati and Mr. Hellwig show how this approach has failed, repeatedly, over the course of many years—in the 1984 Continental Illinois rescue; in the Latin American debt crisis and savings-and-loan crisis in the 1980s; in the Asian-currency crisis and the collapse of Long-Term Capital Management in the 1990s; and in the recent financial crisis. Each time, our government bailed out more and more creditors in a wider array of institutions. Each time, our government wrote reams of new rules that banks quickly got around.
Now pretty much all of the big banks' debt is guaranteed, explicitly or implicitly through the widely held expectation that a big bank's creditors will be bailed out. But our regulators promise that next time, trust them, they really will spot trouble ahead and do something to stop it—even though our massive bank-regulation machinery failed to notice that subprime mortgages might be a bit risky in 2006 and even though, as Ms. Admati and Mr. Hellwig note, Europe's regulators still consider Greek government bonds to be risk-free assets.
Most basically, Ms. Admati and Mr. Hellwig point out that current regulation is focused on a bank's assets: the loans, securities and other investments that bring money in (and sometimes don't). They want us to focus instead on the bank's liabilities: the ways banks get money and the promises banks make to depositors and investors. Bank assets are not particularly risky or illiquid. Apple's profits from selling iPhones or a mutual fund's portfolio of stocks are far riskier than any bank's portfolio of loans and mortgage-backed securities, or even their much-disparaged trading books. Bank liabilities—too much debt and too much short-term debt—are the central problem that causes financial crises.
What about those "tough" new capital regulations that you keep reading about? They are not nearly as tough as you think. At best, the new Basel III international bank regulation agreement calls for a 7% ratio of capital to assets by a leisurely 2019 deadline. But that is the ratio of capital to "risk-weighted" assets. Risk-weighting is a complex system in which some assets count less against capital requirements than others. A dollar of mortgage assets might count as 50 cents, but it might count as 10 cents or less if it is a complex mortgage-backed security, and zero if it is government debt. When Ms. Admati and Mr. Hellwig unravel those "risk weights," we're still talking about 2% to 3% actual capital.
Foreseeing the usual risk-weighting games, Basel III requires a backstop 3% ratio of equity to all assets. "If this number looks outrageously low," Ms. Admati and Mr. Hellwig write, "it is because the number is outrageously low." Indeed.
This simple truth has been met by howls of protest and layers of obfuscation and derision by bankers, their consultants and many of their regulators. "Oh, you just don't understand the complexities of banking" is the basic attitude. "Go away and let the experts fix this." Well, Ms. Admati and Mr. Hellwig, top-notch academic financial economists, do understand the complexities of banking, and they helpfully slice through the bankers' self-serving nonsense. Demolishing these fallacies is the central point of "The Bankers' New Clothes."
No, they write, it was not always thus. In the 19th century, banks funded themselves with 40% to 50% capital. Depositors wouldn't lend to banks unless the banks had a lot of skin in the game. Without a government debt guarantee—and, early on, without limited liability—shareholders wanted less risk as well.
"Capital" is not "reserves," and requiring more capital does not reduce funds available for lending. Capital is a source of money, not a use of money. When, as Ms. Admati and Mr. Hellwig gleefully note, the British Bankers' Association complained in 2010 about regulations that would require banks to "hold"—the wrong verb—"an extra $600 billion of capital that might otherwise have been deployed as loans to businesses or households," it made an argument both "nonsensical and false," contradicting basic facts of a bank balance sheet. Requiring more capital does not require banks to raise one cent more money in order to make a loan. For every extra dollar of stock the bank must issue, it need borrow one dollar less.
Capital is not an inherently more expensive source of funds than debt. Banks have to promise stockholders high returns only because bank stock is risky. If banks issued much more stock, the authors patiently explain, banks' stock would be much less risky and their cost of capital lower. "Stocks" with bond-like risk need pay only bond-like returns. Investors who desire higher risk and returns can do their own leveraging—without government guarantees, thank you very much—to buy such stocks.
Nothing inherent in banking requires banks to borrow money rather than issue equity. Banks could also raise capital by retaining earnings and forgoing dividends, just as Microsoft did for years. Every dividend drains capital from banks and removes a layer of protection between us taxpayers and the next bailout. Ms. Admati and Mr. Hellwig are at their best in decrying U.S. regulators' decision to let banks pay dividends in 2007-08—amounting to half the TARP bailouts—and to let big banks begin paying out dividends again in 2011.
Why do banks and protective regulators howl so loudly at these simple suggestions? As Ms. Admati and Mr. Hellwig detail in their chapter "Sweet Subsidies," it's because bank debt is highly subsidized, and leverage increases the value of the subsidies to management and shareholders. To borrow without the government guarantees and expected bailouts, a bank with 3% capital would have to offer very high interest rates—rates that would make equity look cheap. Equity is expensive to banks only because it dilutes the subsidies they get from the government. That's exactly why increasing bank equity would be cheap for taxpayers and the economy, to say nothing of removing the costs of occasional crises.
And, in an all-too-short chapter on "The Politics of Banking," they show us how politicians and regulators like the cozy cronyism of the current system. Banks are, of course, "where the money is," and governments around the world use regulation to direct funds to politically favored businesses, to preferred industries, to homeowners and to the government itself. Politicians want to subsidize and protect their piggy bank. Regulators commonly become sympathetic to the interests of the industry they regulate, which advances their careers in government or back in industry. Last week's news coverage of Treasury Secretary Jack Lew's interesting career is only the most recent reminder.
Part of me wishes that Ms. Admati and Mr. Hellwig had been more specific in their criticisms: naming more names and quoting more nonsense, writing a gripping exposé dripping with their justified outrage. But their restraint is wise: Too much exposé would detract from the clarity of their ideas. So readers will have to recognize the arguments and add their own outrage.
Ms. Admati and Mr. Hellwig do not offer a detailed regulatory plan. They don't even advocate a precise number for bank capital, beyond a parenthetical suggestion that banks could get to 20% or 30% quickly by cutting dividend payments. (I would go further: Their ideas justify 50% or even 100%: When you swipe your ATM card, you could just sell $50 of bank stock.)
But this apparent omission, too, is a strength. A long, detailed regulatory proposal would simply distract us from the clear, central argument of "The Bankers' New Clothes": More capital and less debt, especially short-term debt, equals fewer crises, and common contrary arguments are nonsense. More capital would be far more effective at preventing crises than the tens of thousands of pages of Dodd-Frank regulations and its army of regulators, burrowed deep in the financial system, on a hopeless quest to keep highly leveraged and subsidized too-big-to-fail banks from taking too much risk. Once the rest of us accept this central idea, the details fill in naturally.
How much capital should banks issue? Enough so that it doesn't matter! Enough so that we never, ever hear again the cry that "banks need to be recapitalized" (at taxpayer expense)!
Source: Mr. Cochrane is a professor of finance at the University of Chicago Booth School of Business, senior fellow of the Hoover Institution, and adjunct scholar of the Cato Institute.
A version of this article appeared March 2, 2013, on page C5 in the U.S. edition of The Wall Street Journal, with the headline: Running on Empty.
____________________________________________
For April 2013 tax filing
The advice articles below are replaced every year
for that year's information
WARNING
This warning relates to any article or information in this STAF, Inc.'s website
or to any information in STAF, Inc.'s TV & Radio Shows & Podcasts or in any other type of publication by STAF, Inc.
Tax, financial, investment or related & all other type of information is given by STAF, Inc. only as your starting point details
Always consult a competent tax attorney, tax accountant or other competent tax professional or an investment adviser
All information is provided at your own risk
Without any knowledge about your specific situation STAF, Inc. cannot guarantee the information being valid for your needs
STAF, Inc. is not responsible for any mistake you may make or for any of your decisions you may make
_________
Domestic workers take care of our families
- yet 23 % of domestic workers
are paid below the minimum wage
Visit: www.domesticworkers.org
(not affiliated with STAF, Inc.)
______________________
National Domestic Workers Alliance
330 7th Avenue, 19th Floor
New York, NY 10001
Tel: 646-360-5806
Fax: 212-213-2233
(not affiliated with STAF, Inc.)
Oakland office
NDWA c/o Mujeres Unidas y Activas
2783 E. 12th Street, Suite 201
Oakland, CA 94601
(not affiliated with STAF, Inc.)
STAF, Inc. demands "the laws must be applied also when hiring domestic workers"
______________
Domestic Work Must Become an Academic Profession
Domestic Work Must Be Based on College / University Training
New Laws Needed for The Safety of Our Precious American Families
Teenagers & persons of any age must have a brief training
(online or local classroom) and have a licence to babysit
Lacking knowledge of child development and child handling can lead to
disasters and even to the death of a child or a baby
By Dr. Christian von Christophers, Ph.D., N.D., D.D., STAF, Inc.'s founding President
STAF, Inc.'s Presence in D.C. in The U.S. Congress (House & Senate)
Is a Must
Give your vote to STAF, Inc. and its President when he seeks for a Congress seat in D.C.
STAF, Inc. & Dr. Christian von Christophers, Ph.D., will fight for you and for your family's substantially better
future.
Also, STAF, Inc. is working on establishing a new federal agency, The U.S. Healthy Lifestyle & Correct Nutrition Agency, and have Dr. Christian (STAF, Inc.) as its first director - he is the most qualified to lead such a federal agency.
STAF, Inc. has initiated local and federal legislation that domestic work becomes a career based on a broad College/University training. The health & well-being of our American families' are in the hands of our domestic workers. Our home-based child care is in the hands of our domestic workers. Our home-based babysitting services are in the hands of mostly inexperienced teenagers.
The commercial child care centers need a licence, however their founders' and their workers' training must also be based on an Academic University & College degree training.
Most workers and most families have little or no knowledge of healthy nutrition and of how to prepare, handle & store the food items. Our nation's health/sickness care costs are among the highest worldwide, yet the U.S. is among the sickest nations in the world.
STAF, Inc.'s demand is that even the teenagers, before they can work as a babysitter, have to take a brief program teaching the most important, basic principles about handling of the babies, the toddlers & the children.
Most babysitters & most domestic workers have no knowledge about the dangers of wrong handling of our children, often due the caretaker's impatience & lack of any related knowledge. Every caretaker & babysitter must learn to count slowly to 25 before reacting.
E.g. the sitters & caretakers may shake the baby when the baby cries. That shaking can damage the baby's brain, the baby can be paralyzed and even die.
For the babysitting work, the teenagers & other care workers MUST complete at least a one-session classroom training or an online program & to be licensed to handle the basic babysitting work.
It is literally insane to have just anyone, even briefly, taking care of our babies and our children no matter what age the children.
As a matter of fact the same important & necessary principles must also be taught briefly to every new parent. These skills can be thought in every school in the U.S.
In addition, to get married, the marriage licence could include the necessity to take a one session for learning
(1) the basic happy marriage techniques to avoid divorces and (2) the basic baby/child care information.
Relating to a broader household work, it is wrong that the duties of babysitting, child care & other domestic work are handled by "anyone" who can wash dishes or clean the floors. Even those two household activities demand broad knowledge of the least toxic cleaning chemicals and knowledge how to prevent the pets and babies touching, licking, or swallowing the life-threatening chemicals.
As said above, baby care needs much more knowledge than handled by just anyone who can walk.
Majority of the baby caretakers do not know e.g. that shaking a cranky, crying baby can destroy the baby's brains and can/will kill the baby. Everyone has seen on the news that the sitter/caretaker caused the death of the baby due to his/her impatience and his/her lacking knowledge.
In addition to the easy licensing as a babysitter for the teenagers or other workers, the STAF, Inc., with its affiliates, has developed Doctoral, Master, Bachelor, Associate & Certification training programs for professional full-time domestic workers and will start providing competent level training for our nationwide & worldwide needs.
Such a College already existed starting on the late 60's in Europe, a part of STAF, Inc.'s affiliations.
A new, fully accredited College to fulfill the needs of the professional Domestic Workers will be available also in the U.S.
See in this website tab: College & University.
_________________________
Necessary information for all investing activities
Financial - Rule of 72
* A useful tool for your investment planning
A rule of thumb for (click green) exponential growth (LAT. exponere = to put forth) at a constant rate.
An approximation of the doubling time formula used in population growth, according to which the doubling time is roughly equal to 70 divided by the percent growth rate (using continuous compounding, the actual number would be about 69.3147181 or 100 times the natural logarithm of 2). In terms of money, since we use the annual effective interest rate (which is equivalent to annual compounding) for interest rates between 4% and 12% the number which gives the most accurate result is actually 72. Therefore, divide 72 by the percent interest rate to determine the approximate amount of time to double your money in an investment.
For example, at 8% interest, your money will double in approximately 9 years (72/8 = 9)
____________________________
ADDITIONAL BUSINESS RELATED INFORMATION
SEE - TAB: services, SUB-TAB: Successology® - Success for Life
Advice for How to Create a Business and
Other Topics
___________________________________________________
Financial - Rule of 72
* A useful tool for your investment planning
A rule of thumb for (click green) exponential growth (LAT. exponere = to put forth) at a constant rate.
An approximation of the doubling time formula used in population growth, according to which the doubling time is roughly equal to 70 divided by the percent growth rate (using continuous compounding, the actual number would be about 69.3147181 or 100 times the natural logarithm of 2). In terms of money, since we use the annual effective interest rate (which is equivalent to annual compounding) for interest rates between 4% and 12% the number which gives the most accurate result is actually 72. Therefore, divide 72 by the percent interest rate to determine the approximate amount of time to double your money in an investment.
For example, at 8% interest, your money will double in approximately 9 years (72/8 = 9)
____________________________
ADDITIONAL BUSINESS RELATED INFORMATION
SEE - TAB: services, SUB-TAB: Successology® - Success for Life
Advice for How to Create a Business and
Other Topics
___________________________________________________
Below you will find valuable information for
investments and for all financial activities
Here one article - valuable for you
-
- THE INTELLIGENT INVESTOR
- March 2-3, 2013, Wall Street Journal Business & Finance,page 1
Have Investors Finally
Cracked the Stock-Picking Code?
Click green for further info
Believe it or not, there could be a new holy grail for investors.
"Great ideas come along maybe once every 20 years or so," David Booth, chairman of Dimensional Fund Advisors in Austin, Texas, which manages more than $262 billion, told me this week.
Lately, he and other leading investors have gotten excited about a financial measure called "gross profitability" or "quality." The measure appears to identify companies that will earn even more money in the future. New funds are launching based partly on it. What should you know before you consider joining in?
More Weekend Investor: click green for further info:
- When Your Broker 'Outs' You
- Money Lessons From 'Downton Abbey'
- Stocks for Thick and Thin
- How to Play Investing's Wild Frontier
- Gold: Why Some Investors Are Still Hanging On
- Are You Currency-Protected?
Research to be published soon in the prestigious Journal of Financial Economics by Robert Novy-Marx, a finance professor at the University of Rochester, shows that bargain-priced "quality" stocks outperformed the overall market by more than four percentage points annually between 1963 and 2011. This stunning margin is even higher than that earned over the same period by traditionally measured cheap "value" stocks, but usually with less severe losses in market downturns. Quality also tends to do well when value does poorly—and vice versa.
"There's something there, and I don't think it can be ignored," says William Bernstein, a money manager and investment theorist at Efficient Frontier Advisors in Eastford, Conn. "We don't know exactly why it works, but it works."
Most investors zero in on the bottom line: a company's net earnings. But here, it is what is near the top line that matters: total revenues minus basic expenses. When a company's goods and services take in a lot more money than they cost to produce, that is a high gross profit margin—and a strong signal of quality.
"You get much more informative signals about the health of firms" this way, Mr. Novy-Marx says.
That partly is because many of the investments that companies make for their long-term future growth can result in short-term hits to reported net earnings. A firm that spends on research and development, for example, is seeking to bolster its future profits by ensuring that it won't run out of new products to sell. That spending rise will hurt this year's net earnings. But the quality measure doesn't penalize companies for spending on R&D—and thus might be more effective at identifying tomorrow's more profitable firms today.
Over the past four quarters, for instance, Amazon.com AMZN +0.91% generated $61.1 billion in revenues. Its cost of goods sold, or basic expenses, amounted to $44.3 billion, leaving gross profits of $16.8 billion on total assets of $32.6 billion. But, largely because the company spent nearly $14 billion on R&D and marketing, its reported net income was negative $39 million.
Focus only on net earnings and you might miss the massive investment Amazon is making in its future—which could well pay off in years to come. Remember that the quality measure is designed to capture this kind of raw profitability. (Amazon didn't respond to a request for comment.)
As Warren Buffett has long shown with his stock picks, if investors underappreciate how much a company is likely to grow in the future, it can turn out to be a bargain even if it looks somewhat pricey by conventional measures.
Cliff Asness, managing principal at AQR Capital Management, a firm in Greenwich, Conn., that runs more than $71 billion and is launching funds that use the factor, says taking account of quality is "a great way to make a more accurate value measure."
Fund companies have noticed. Last December, Dimensional Fund Advisors introduced four funds that combine quality with pricier "growth" stocks. Later this month, AQR is expected to start three funds that blend quality, cheap "value" and fast-moving "momentum" stocks. As for annual expenses, the DFA funds will charge 0.2% to 0.55%; AQR's haven't been disclosed yet.
Funds or ETFs investing purely on the basis of quality can't be far behind, say industry analysts, although none are available yet.
Picking stocks this way isn't something you could pull off on a weekend morning in your pajamas. For each potential investment, you would need to subtract the company's cost of goods sold from its revenue, then divide by its total assets.
In general, says Mr. Novy-Marx, you want that ratio to be 0.33 or higher. You then would look for a low price-to-book-value ratio, available on most financial websites—ideally 1.7 or below. You would have to stick to big companies and diversify across many industries and dozens of stocks.
There's no rush. Let the funds launch and get seasoned. See whether the managers can deliver. Then wait some more, sitting out the inevitable boom in popularity. Before long, investors will be complaining that quality is overrated and that other investing styles work better.
Mark my words: At that point you will be able to get quality in quantity.
_______________________
Source:
WSJ
A version of this article appeared March 2, 2013, on page B1 in the U.S. edition of The Wall Street Journal, with the headline: Have Investors Finally Cracked the Stock-Picking Code?
__________________________________
Let's start this investment tab from how to teach
our children about money & investments
A global consensus is forming around how to teach kids in schools about money & investments
The first step is to start early - at the age of 5 perhaps, sometimes at 4, sometimes at 7
Guide your children to these principles below relating to their use of their allowance money
(1) 10 % charity (church, a suitable not-for-profit organization, or buy food, toys, clothing, books & school material to a needy family with a child or children);
(2) 20 % in your child's own investment account or bank account - as soon your child can understand what investment means, guide him/her to make real investments - there are options even for a small monthly/weekly investment accounts. Contact STAF, Inc. for guidance as needed.
(3) 70 % for for your child's own needs
If you yourself have not handled your own finances with these actions, start applying the same principles. Learn to live on the 70 % of your monthly income. Both spouses working? The same principles, except IF more is left than needed to a reasonable living, place all surplus in investments with the aim to step-by-step to become a multi-millionaire and then live only on the interest earning of your investments and never live on the capital.
All members of your family, read this book & apply the principles: Climbing The Prosperity Ladder by (will be added)
Next below the global education consensus article how to teach kids in school about money & investments
_______________________________
our children about money & investments
A global consensus is forming around how to teach kids in schools about money & investments
The first step is to start early - at the age of 5 perhaps, sometimes at 4, sometimes at 7
Guide your children to these principles below relating to their use of their allowance money
(1) 10 % charity (church, a suitable not-for-profit organization, or buy food, toys, clothing, books & school material to a needy family with a child or children);
(2) 20 % in your child's own investment account or bank account - as soon your child can understand what investment means, guide him/her to make real investments - there are options even for a small monthly/weekly investment accounts. Contact STAF, Inc. for guidance as needed.
(3) 70 % for for your child's own needs
If you yourself have not handled your own finances with these actions, start applying the same principles. Learn to live on the 70 % of your monthly income. Both spouses working? The same principles, except IF more is left than needed to a reasonable living, place all surplus in investments with the aim to step-by-step to become a multi-millionaire and then live only on the interest earning of your investments and never live on the capital.
All members of your family, read this book & apply the principles: Climbing The Prosperity Ladder by (will be added)
Next below the global education consensus article how to teach kids in school about money & investments
_______________________________
The Best Way to Teach Kids About Money?
Slip It Into Math and English Classes
Date: 2013
A global consensus is forming around how to teach kids about money in school
The answer: Embed personal finance lessons in the courses they already take
That’s the approach in the U.K., which in February 2013 agreed to make financial literacy lessons mandatory throughout its school system in 2014. Concepts like budgeting and compound interest will be explored in math classes as well a new “citizenship” course. Perhaps a dozen other countries in Europe and Asia embrace this approach as well.
Now the U.S. is hopping on board. In the next couple months, the Treasury Department will go live with a website likely to be found at moneyasyoulearn.org.
This site will offer teachers ready-made personal finance lessons that fit neatly into existing math and English courses.
In time, the website will expand to include personal finance lessons suitable for social studies, history, and science classes too. You, as the parent can use the same principles in your home teaching your children (and yourself!).
When you both, as the parents, take these investment actions, your children will copy you
Children DO what they SEE their parents doing
The effort aligns with the Common Core Standards initiative that 46 states and the District of Columbia have agreed to follow, starting in 2014. These new standards establish minimum knowledge guidelines, by grade, so that a child moving from one state to another gets a consistent education. The idea behind the money-as-you-learn project is that teachers who must now refashion their lessons to be in concert with the Common Core Standards will have resources to seamlessly infuse personal finance instruction.
This is a big step. Education in the U.S. is controlled at the state level. The Federal government cannot dictate standards. The voluntary Common Core Standards, which for now apply only to Math and English, address the need for uniformity. And the federal government is seizing this moment to promote financial education.
“This was the moment to act,” says Amy Rosen, CEO of the nonprofit Network for Teaching Entrepreneurship and a vice chair of the President’s Advisory Council on Financial Capability. “We have an historic opportunity to fast-track personal finance knowledge in this country.”
The new website and the push to embed money lessons into courses that are already taught was a central part of the Council’s final report on financial education, which was presented to President Obama Feb. 19, 2013. “This was not a perfunctory discussion,” Rosen says. “I am excited about the President’s personal commitment to financial education.”
The coming money-as-you-learn website complements another online tool that the Council unveiled last year: moneyasyougrow.org, which describes what kids should know about personal finance at various ages.
I first reported on that website a year ago and with little other publicity it has had 600,000 visitors. Rosen envisions both websites eventually being housed at an organization still to be identified, but which is better set up to promote the sites.
Brian Page, an Ohio school teacher serving on the working committee that is gathering content for the new website, says he believes teachers will embrace the tool. “This project brings practical financial knowledge aligned with common core into our classrooms with turnkey resources,” he says. “The resources are relevant and matter to many students now.”
(MORE: Fed Minutes Cause Markets to Slump)
Much of the content on moneyasyougrow.org will be plucked from existing websites, texts, news reports, and research. It will be straightforward and practical information plainly presented in an age-appropriate manner. But some of the content is being specially written around the “11 big ideas” that drive the personal finance effort, says Julie Heath, director of the Economics Center at University of Cincinnati and a Council working committee chair.
The guiding concepts:
Embedded personal finance is not meant to discourage stand-alone and elective courses, Rosen says. But the reality is that few school districts require a stand-alone course in economics or personal finance. Plugging such lessons into the Common Core may be the closest we come to a broad requirement that kids learn something about money before they get their own credit card or cell phone, or sign up for a student loan.
Source: Time
STAF, Inc. is working on developing a similar set of consensus teaching principles for all our schools and train every child
(1) in correct & healthy nutrition;
(2) in happy marriage & family topics;
(3) in child raising;
(4) in all other topics needed in a successful family life. Learning these life skills in our schools will step-by-step save billions in federal & state sickness/health care expenses and save much human suffering. STAF, Inc.'s teaching principle is:
________________________________________________________
STAF, Inc.'s mission for your family's best:
Less suffering - more life™
________
To inspect STAF, Inc.'s first 3 pages in its original founding acceptance documents provided by the State of New York:
(click the green word "click" on this line) click STAF, Inc.'s purpose and its mission statements are in those 3 pages
______________________________________
Slip It Into Math and English Classes
Date: 2013
A global consensus is forming around how to teach kids about money in school
The answer: Embed personal finance lessons in the courses they already take
That’s the approach in the U.K., which in February 2013 agreed to make financial literacy lessons mandatory throughout its school system in 2014. Concepts like budgeting and compound interest will be explored in math classes as well a new “citizenship” course. Perhaps a dozen other countries in Europe and Asia embrace this approach as well.
Now the U.S. is hopping on board. In the next couple months, the Treasury Department will go live with a website likely to be found at moneyasyoulearn.org.
This site will offer teachers ready-made personal finance lessons that fit neatly into existing math and English courses.
In time, the website will expand to include personal finance lessons suitable for social studies, history, and science classes too. You, as the parent can use the same principles in your home teaching your children (and yourself!).
When you both, as the parents, take these investment actions, your children will copy you
Children DO what they SEE their parents doing
The effort aligns with the Common Core Standards initiative that 46 states and the District of Columbia have agreed to follow, starting in 2014. These new standards establish minimum knowledge guidelines, by grade, so that a child moving from one state to another gets a consistent education. The idea behind the money-as-you-learn project is that teachers who must now refashion their lessons to be in concert with the Common Core Standards will have resources to seamlessly infuse personal finance instruction.
This is a big step. Education in the U.S. is controlled at the state level. The Federal government cannot dictate standards. The voluntary Common Core Standards, which for now apply only to Math and English, address the need for uniformity. And the federal government is seizing this moment to promote financial education.
“This was the moment to act,” says Amy Rosen, CEO of the nonprofit Network for Teaching Entrepreneurship and a vice chair of the President’s Advisory Council on Financial Capability. “We have an historic opportunity to fast-track personal finance knowledge in this country.”
The new website and the push to embed money lessons into courses that are already taught was a central part of the Council’s final report on financial education, which was presented to President Obama Feb. 19, 2013. “This was not a perfunctory discussion,” Rosen says. “I am excited about the President’s personal commitment to financial education.”
The coming money-as-you-learn website complements another online tool that the Council unveiled last year: moneyasyougrow.org, which describes what kids should know about personal finance at various ages.
I first reported on that website a year ago and with little other publicity it has had 600,000 visitors. Rosen envisions both websites eventually being housed at an organization still to be identified, but which is better set up to promote the sites.
Brian Page, an Ohio school teacher serving on the working committee that is gathering content for the new website, says he believes teachers will embrace the tool. “This project brings practical financial knowledge aligned with common core into our classrooms with turnkey resources,” he says. “The resources are relevant and matter to many students now.”
(MORE: Fed Minutes Cause Markets to Slump)
Much of the content on moneyasyougrow.org will be plucked from existing websites, texts, news reports, and research. It will be straightforward and practical information plainly presented in an age-appropriate manner. But some of the content is being specially written around the “11 big ideas” that drive the personal finance effort, says Julie Heath, director of the Economics Center at University of Cincinnati and a Council working committee chair.
The guiding concepts:
- Compound interest, which leads to discussion of saving,
- Opportunity cost, which leads to smart decision making,
- Value of education, which leads to wise choices about finding a college and paying for it,
- Risk, which leads to discussion of diversification and insurance,
- What money is, which leads to understanding what it can and cannot buy,
- Time value of money, which leads to more informed purchasing, investing and planning,
- Cost/benefit analysis, which leads to better decision making,
- Setting Goals, which leads to desired outcomes,
- Delayed gratification, which leads to the ability to consume more in the future,
- Scarcity, which leads to acknowledging limitations and making choices,
- Inflation, which leads to discussion of how to mitigate its effects on saving and investment.
Embedded personal finance is not meant to discourage stand-alone and elective courses, Rosen says. But the reality is that few school districts require a stand-alone course in economics or personal finance. Plugging such lessons into the Common Core may be the closest we come to a broad requirement that kids learn something about money before they get their own credit card or cell phone, or sign up for a student loan.
Source: Time
STAF, Inc. is working on developing a similar set of consensus teaching principles for all our schools and train every child
(1) in correct & healthy nutrition;
(2) in happy marriage & family topics;
(3) in child raising;
(4) in all other topics needed in a successful family life. Learning these life skills in our schools will step-by-step save billions in federal & state sickness/health care expenses and save much human suffering. STAF, Inc.'s teaching principle is:
________________________________________________________
STAF, Inc.'s mission for your family's best:
Less suffering - more life™
________
To inspect STAF, Inc.'s first 3 pages in its original founding acceptance documents provided by the State of New York:
(click the green word "click" on this line) click STAF, Inc.'s purpose and its mission statements are in those 3 pages
______________________________________
How to Earn Rewards Through Credit Card Portals
Read more: http://www.foxbusiness.com/personal-finance/2013/02/26/how-to-earn-rewards-through-credit-card-portals/#ixzz2MIqXW3s
Want to shop smarter online?
You may want to check out your credit card's Internet "shopping portal.
It's one of the fastest ways to rack up rewards points, and all you have to do is click a link to reap the benefits. Shopping portals typically offer bonuses that will double or triple the points you'd get from a traditional purchase. Some offers will give you more than 10 times the points.
Shopping portals emerged about a decade ago as a creative way for banks to strengthen their relationships with rewards-hungry consumers, says John Ulzheimer, president of consumer education at SmartCredit.com.
They've rapidly expanded since then, especially after the recession, as more consumers turned to their computers to make purchases, says Michael Misasi, an analyst with Mercator Advisory Group. Research firm eMarketer projects that consumers spent $224.2 billion shopping online in 2012, and that figure is expected to balloon to $361.9 billion by 2016.
Portals have become a popular middleman in the world of e-commerce; consumers go to the portal with an idea of what they want to buy. And the portal helps pick the right online store, says Brian Kelly, founder of ThePointsGuy.com.
Here's how they work. First, log in to your credit card account. Then, look for the portal. You may have to do some digging, but somewhere on the page, you'll see a link directing you to a website where you can earn additional rewards for shopping online. Once you click on the link, a cookie is stored on your computer, so that when you check out, you automatically receive bonus rewards.
The bonus rewards are just that -- a bonus to what you would normally receive. You could get more cash than usual on your cash-back card. If your card gives rewards points, the portal will add even more points to your purchase.
If you're looking for the retailer with the best bonus offer, Kelly suggests using sites such as evreward.com, which compile all of the top deals from thousands of online stores.
Both credit card companies and retailers stand to gain from shopping portals.
Banks gain valuable information on your shopping habits when you use their portals. They may use that information to send you targeted offers for items they think you might want. Misasi says this kind of targeted marketing has the potential to bring revenue to banks "in the hundreds of millions of dollars, maybe even billions of dollars" industrywide. Misasi estimates a single bank could get several million dollars annually from targeted offers and sales on shopping portals.
Retailers, meanwhile, have lined up to offer deals through shopping portals. They've been willing to pay hefty fees -- some can go as high as 10% of the transaction value -- to be placed on the portal. It's worth it, Misasi says, because it gives retailers instant access to untapped pools of motivated consumers.
"That's where the return on their investment comes," Misasi says, "by generating lasting relationships with new customers."
Most major credit card companies have shopping portals for cardholders
with online access. Here's how to find them and what to expect:
Credit card shopping portals
1. Discover
What to expect: You can earn up to 20% in cash back on purchases at ShopDiscover. The shopping portal features more than 200 retailers.
2. Chase
What to expect: Chase's shopping portal is part of its Ultimate Rewards program. You can get cash back (starting at $20 for 2,000 points) on merchandise such as electronics, gift cards and travel with no blackout dates.
3. Citi
What to expect: Earn an average of 5% cash back at more than 400 online retailers at Citi Bonus Cash Center.
4. Bank of America
What to expect: Earn up to 20% off by shopping at retailers on the bank's shopping portal, Add It Up.
5. Capital One
What to expect: Earn extra Capital One points by shopping at Perk Central, which offers more than 300 online merchants. Points can be redeemed for merchandise and travel, but not cash.
Read more: (click green) http://www.foxbusiness.com/personal-finance/2013/02/26/how-to-earn-rewards-through-credit-card-portals/#ixzz2MIpcn5di
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Read more: http://www.foxbusiness.com/personal-finance/2013/02/26/how-to-earn-rewards-through-credit-card-portals/#ixzz2MIqXW3s
Want to shop smarter online?
You may want to check out your credit card's Internet "shopping portal.
It's one of the fastest ways to rack up rewards points, and all you have to do is click a link to reap the benefits. Shopping portals typically offer bonuses that will double or triple the points you'd get from a traditional purchase. Some offers will give you more than 10 times the points.
Shopping portals emerged about a decade ago as a creative way for banks to strengthen their relationships with rewards-hungry consumers, says John Ulzheimer, president of consumer education at SmartCredit.com.
They've rapidly expanded since then, especially after the recession, as more consumers turned to their computers to make purchases, says Michael Misasi, an analyst with Mercator Advisory Group. Research firm eMarketer projects that consumers spent $224.2 billion shopping online in 2012, and that figure is expected to balloon to $361.9 billion by 2016.
Portals have become a popular middleman in the world of e-commerce; consumers go to the portal with an idea of what they want to buy. And the portal helps pick the right online store, says Brian Kelly, founder of ThePointsGuy.com.
Here's how they work. First, log in to your credit card account. Then, look for the portal. You may have to do some digging, but somewhere on the page, you'll see a link directing you to a website where you can earn additional rewards for shopping online. Once you click on the link, a cookie is stored on your computer, so that when you check out, you automatically receive bonus rewards.
The bonus rewards are just that -- a bonus to what you would normally receive. You could get more cash than usual on your cash-back card. If your card gives rewards points, the portal will add even more points to your purchase.
If you're looking for the retailer with the best bonus offer, Kelly suggests using sites such as evreward.com, which compile all of the top deals from thousands of online stores.
Both credit card companies and retailers stand to gain from shopping portals.
Banks gain valuable information on your shopping habits when you use their portals. They may use that information to send you targeted offers for items they think you might want. Misasi says this kind of targeted marketing has the potential to bring revenue to banks "in the hundreds of millions of dollars, maybe even billions of dollars" industrywide. Misasi estimates a single bank could get several million dollars annually from targeted offers and sales on shopping portals.
Retailers, meanwhile, have lined up to offer deals through shopping portals. They've been willing to pay hefty fees -- some can go as high as 10% of the transaction value -- to be placed on the portal. It's worth it, Misasi says, because it gives retailers instant access to untapped pools of motivated consumers.
"That's where the return on their investment comes," Misasi says, "by generating lasting relationships with new customers."
Most major credit card companies have shopping portals for cardholders
with online access. Here's how to find them and what to expect:
Credit card shopping portals
1. Discover
What to expect: You can earn up to 20% in cash back on purchases at ShopDiscover. The shopping portal features more than 200 retailers.
2. Chase
What to expect: Chase's shopping portal is part of its Ultimate Rewards program. You can get cash back (starting at $20 for 2,000 points) on merchandise such as electronics, gift cards and travel with no blackout dates.
3. Citi
What to expect: Earn an average of 5% cash back at more than 400 online retailers at Citi Bonus Cash Center.
4. Bank of America
What to expect: Earn up to 20% off by shopping at retailers on the bank's shopping portal, Add It Up.
5. Capital One
What to expect: Earn extra Capital One points by shopping at Perk Central, which offers more than 300 online merchants. Points can be redeemed for merchandise and travel, but not cash.
Read more: (click green) http://www.foxbusiness.com/personal-finance/2013/02/26/how-to-earn-rewards-through-credit-card-portals/#ixzz2MIpcn5di
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7 Cool Companies That Let You Work From Home
Date: February 2013
If you're one of the hundreds of disgruntled Yahoo! workers that now have to show up at the office full-time after the company's new edict to cease work-from-home arrangements come June, you might be looking for a new job. Here are some firms that would give you the option of telecommuting:
- Automattic: You've probably heard of this web developer if you blog. Automattic is the brains behind blogging platform WordPress that powers over millions of blogs. One of the most intriguing things about Automattic is that all of its employees work from home from all over the world. It currently has 12 open positions on their career site.
- Cisco: According to a survey, 90 percent of employees at networking systems company Cisco are regular telecommuters. There are plenty of jobs available at Cisco as it is the largest networking firm in the world.
- Intel: You will have lots of telecommuting opportunities at Intel. In fact, 80 percent of the semiconductor chip maker's workers are regular telecommuters. Its website even says it offers "compressed workweeks and alternate work schedules, telecommuting, and part-time and job share opportunities . . . " Look for an Intel position on its jobs page here.
- Teach For America: One reason why the nonprofit Teach For America is regularly ranked as one of the happiest places to work is the flexible telecommuting work policy. As long as they get their work done, TFA employees are allowed to live anywhere and work from home although they are encouraged to spend time in classrooms. TFA is a huge organization with over 1,500 employees, so there are quite a number of job listings available.
- Accenture: Accenture is another company with a high number of regular telecommuters — 81 percent. The consulting company's career perks page even specifies that employees will have the option of working from home. Check out its listings here.
- GitHub: Code repository service GitHub, a firm with over 100 employees, embraces the work-from-anywhere philosophy. It currently has two openings, including a technical support rep position.
- PricewaterhouseCoopers: This professional services firm has a formal telecommuting policy of "routinely working from home three or more days per week" according to its page on the company's flexibility. See if there's a position for you here.
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The Worst-Paying Cities for Women
The International Women’s Day worldwide has been in March, meant to raise awareness of violence against women and the inequalities that affect women around the world. One area the United States continues to struggle with is gender equality in pay. In 2011, the median annual earnings of men was $47,233. Women earned just 78.8% of the men’s pay, or more than $10,000 less. This difference has remained basically unchanged over the past five years in the U.S.
Ten Companies Profiting Most From War (click) if the link has expired, search the web with the title
In some places in this country, women have begun to approach truly equal footing. In Los Angeles, women earned more than 91% of the male median. However, in other parts of the country, the gender pay gap is far more severe. In Provo-Orem, Utah, the median earnings of women employed full-time, year-round, was just 61.6% of men, or nearly $20,000 less. Based on a review of the 100 most populous metropolitan areas, 24/7 Wall St. identified the worst-paying cities for women in the United States.
Some industries have a much smaller gender pay gap than others. In food preparation, health care, and computers and mathematics, the median earnings of women in 2011 was at least 85% that of men’s. The areas with a higher concentration of these jobs tended to have a smaller pay gap.
Other industries have extremely wide gaps in earnings. In the legal profession, women earned barely half what men did. And because it is such a high-paying field, the difference in income was roughly $54,000. In sales, construction, mineral extraction and manufacturing jobs, there are similar gaps both in median wages and access to high-level jobs.
The cities that tend to have the biggest gender wage gap have higher concentrations of industries where earnings are unequal. Wichita, Kan., and Ogden, Utah, have high proportions of manufacturing jobs. Cities such as Baton Rouge, La., and Lancaster, Pa., have large construction and extraction industries.
Culture may also play a part in the cities with a higher gender wage gap. The two metropolitan regions with the biggest gap are both in Utah. In an interview with 24/7 Wall St., Ariane Hegewisch, a research director for the Institute For Women’s Policy Research, explained that while Utah may also have a high proportion of industries that tend to favor men in pay, “they are a more traditional culture,” meaning women are more likely to avoid high-paying jobs or receive offers.
[More from 24/7 Wall St.: Cities With the Highest Taxes]
To identify the cities that pay women the least, 24/7 Wall St. compared the median earnings for the past 12 months of both men and women who worked full-time, year-round in the country’s 100 largest metropolitan statistical areas, based on data collected by the U.S. Census Bureau. We also reviewed employment composition by sector, also from the Census Bureau. All data was for 2011, the most recent period available.
These are the worst-paying cities for women.
10. Seattle-Tacoma-Bellevue, Wash.
> Women’s pay as pct. of men’s: 73.1%
> Median income for men: $61,412
> Median income for women: $44,879
Seattle is one of the West Coast’s biggest tech hubs, with companies such as Microsoft and Amazon.com among its top employers. Few major metropolitan areas have a larger proportion of workers in tech jobs than Seattle. In those sectors, pay for women was closer to that of men than most, with the median income for women 86.6% of men’s income. Still, the difference is not unsubstantial, with men earning $12,644 more than their female counterparts. In other sectors, the disparity was worse. For example, in management positions, median earnings for men exceeded the median earnings for women by more than $26,000.
9. Tulsa, Okla.
> Women’s pay as pct. of men’s: 72.9%
> Median income for men: $45,312
> Median income for women: $33,048
As a state, Oklahoma’s gender pay gap was wide. And in the state’s second-largest metropolitan area, Tulsa, the gender pay gap was even worse. Barely 5% of Tulsa’s 10,000 transportation workers were women. For those women, the median pay was just 56% of the men’s pay. Nearly 10% of the region’s full-time workers were in sales positions, with women accounting for 40% of those jobs. In 2011, men in sales positions earned a median of $22,155 more than their female counterparts, more than $5,000 greater than the national gap for such jobs.
8. Bridgeport-Stamford-Norwalk, Conn.
> Women’s pay as pct. of men’s: 72.1%
> Median income for men: $72,202
> Median income for women: $52,063
The median income for women in Bridgeport-Stamford-Norwalk area was more than $20,000 less than the median income of men in 2011. Western Connecticut employs many people in financial services. In Stamford, both UBS and RBS banks employ thousands of people, and countless hedge funds are also situated in the region. Yet there was a profound gap in pay equity between men and women in business and financial operations, with women earning a median of just 54.8% of the men’s pay. In some fields, however, there was no apparent pay gap. In architecture and engineering occupations, women working full time earned a median of $85,227, actually slightly larger than the median pay for men.
7. Wichita, Kan.
> Women’s pay as pct. of men’s: 71.9%
> Median income for men: $47,031
> Median income for women: $33,831
Known as the Air Capital of the World, Wichita’s economy is based on aircraft manufacturers. Companies such as Cessna, Bombardier and Hawker Beechcraft have a large presence in the region and between them employ tens of thousands of workers. Nearly 10% of the metro area’s economy is based on aircraft manufacturing and other types of production, with women accounting for 21.5% of those jobs. In 2011, women in manufacturing and production jobs earned a median of $28,471, while men earned a median of $46,804.
[More from 24/7 Wall St.: Companies with the Best (and Worst) Reputations]
6. Colorado Springs, Colo.
> Women’s pay as pct. of men’s: 70.5%
> Median income for men: $50,908
> Median income for women: $35,907
The median earnings of women in Colorado Springs was about $35,900 in 2011, some $15,000 lower than the median income of men. The two largest private employers in the Colorado Springs area as of the summer of 2011 were Memorial Health System and Penrose-St. Francis Health Services. While these employers provide work to many in the community, the pay gap in health services between men and women is significant. Women working in health diagnosing and as treating practitioners made just slightly more than half that of men in 2011, despite the fact that the sector is comprised of nearly 70% women. For health technologists and technicians, the gap was even more significant, with women earnings less than 35% of the pay that men earned.
5. Palm Bay-Melbourne-Titusville, Fla.
> Women’s pay as pct. of men’s: 69.8%
> Median income for men: $45,582
> Median income for women: $31,820
The median earnings for women in the Palm Bay metropolitan area in 2011 who worked full time was less than 70% of that for men. The pay gap in the Palm Bay area actually bucks the trend in the state as a whole. In Florida, the median income for women was 83.8% that of men’s, the sixth-smallest gap of all states. Nearly 3.7% of the population works in health support, a higher percentage than all but one other city. The pay gap in that field is very large. Women earned just over 55% the pay of men in 2011. One bright spot was in computer and mathematical occupations. Women earned a median income of more than $67,000, or approximately $3,900 more than the median wage for men.
4. Baton Rouge, La.
> Women’s pay as pct. of men’s: 69.3%
> Median income for men: $51,037
> Median income for women: $35,362
The median income for a woman working full time in Baton Rouge was nearly $16,000 less than the median income for a man. About 7.6% of the population works in the construction and extraction industry, the second-highest percentage of all metro areas measured. Many of these people are employed in chemical extraction. Chemical companies have a significant presence in Baton Rouge, with companies such as Dow Chemical, BASF and ExxonMobil’s chemical unit among the largest employers in the region. In the construction and extraction industry, women earned just 52.4% of what men earned in 2011. Other fields where the pay gap between men and women in Baton Rouge was large include production, where the median income of women in 2011 was just 40.6% of the median income of men, and transportation, where women’s earnings were just 42.8% that of men’s.
3. Lancaster, Penn.
> Women’s pay as pct. of men’s: 68.6%
> Median income for men: $47,318
> Median income for women: $32,446
Lancaster is an industrial town. About 11.6% of all full-time, year-round jobs in the region are in the manufacturing industry, the third-highest percentage of the top 100 largest metropolitan areas. Major manufacturers in the region include Armstrong World Industries and R.R. Donnelly & Sons. The median income for women in the manufacturing industry was just 64.3% that of men’s in 2011. The gap was even worse in other fields. In the transportation industry, the median income of women was just 43% that of men’s in 2011, one of the widest pay gaps among the largest metropolitan areas in that field.
2. Ogden-Clearfield, Utah
> Women’s pay as pct. of men’s: 65.2%
> Median income for men: $52,184
> Median income for women: $34,018
Ogden-Clearfield was one of just two metro areas where the median income for women was less than two-thirds of that of men’s. The median income for women was less than half the median income of men in many occupations. In the legal profession, women working full-time earned just 26.3% of what men earned, the biggest pay discrepancy of all metro areas in that field. Women working full time in personal care and service occupations earned just 40.3% of the pay that men did, again the largest pay discrepancy of all metro areas. Other jobs where women’s median income was less than half that of men’s include sales, health diagnosis and treatment, and transportation occupations.
1. Provo-Orem, Utah
> Women’s pay as pct. of men’s: 61.6%
> Median income for men: $51,692
> Median income for women: $31,846
No metropolitan area had a greater pay disparity between men and women than Provo, where the median income in 2011 for men working full time was nearly $20,000 more than the median income for women. Women who worked in personal care and service occupations earned a median of just $18,590, or 44.3% of the earnings of their male counterparts. The pay gap was still vast even in higher-wage positions. Women working in business and financial operations earned just 57.8% of what men earned in 2011, one of the largest pay gaps in that field.
________________________________
The International Women’s Day worldwide has been in March, meant to raise awareness of violence against women and the inequalities that affect women around the world. One area the United States continues to struggle with is gender equality in pay. In 2011, the median annual earnings of men was $47,233. Women earned just 78.8% of the men’s pay, or more than $10,000 less. This difference has remained basically unchanged over the past five years in the U.S.
Ten Companies Profiting Most From War (click) if the link has expired, search the web with the title
In some places in this country, women have begun to approach truly equal footing. In Los Angeles, women earned more than 91% of the male median. However, in other parts of the country, the gender pay gap is far more severe. In Provo-Orem, Utah, the median earnings of women employed full-time, year-round, was just 61.6% of men, or nearly $20,000 less. Based on a review of the 100 most populous metropolitan areas, 24/7 Wall St. identified the worst-paying cities for women in the United States.
Some industries have a much smaller gender pay gap than others. In food preparation, health care, and computers and mathematics, the median earnings of women in 2011 was at least 85% that of men’s. The areas with a higher concentration of these jobs tended to have a smaller pay gap.
Other industries have extremely wide gaps in earnings. In the legal profession, women earned barely half what men did. And because it is such a high-paying field, the difference in income was roughly $54,000. In sales, construction, mineral extraction and manufacturing jobs, there are similar gaps both in median wages and access to high-level jobs.
The cities that tend to have the biggest gender wage gap have higher concentrations of industries where earnings are unequal. Wichita, Kan., and Ogden, Utah, have high proportions of manufacturing jobs. Cities such as Baton Rouge, La., and Lancaster, Pa., have large construction and extraction industries.
Culture may also play a part in the cities with a higher gender wage gap. The two metropolitan regions with the biggest gap are both in Utah. In an interview with 24/7 Wall St., Ariane Hegewisch, a research director for the Institute For Women’s Policy Research, explained that while Utah may also have a high proportion of industries that tend to favor men in pay, “they are a more traditional culture,” meaning women are more likely to avoid high-paying jobs or receive offers.
[More from 24/7 Wall St.: Cities With the Highest Taxes]
To identify the cities that pay women the least, 24/7 Wall St. compared the median earnings for the past 12 months of both men and women who worked full-time, year-round in the country’s 100 largest metropolitan statistical areas, based on data collected by the U.S. Census Bureau. We also reviewed employment composition by sector, also from the Census Bureau. All data was for 2011, the most recent period available.
These are the worst-paying cities for women.
10. Seattle-Tacoma-Bellevue, Wash.
> Women’s pay as pct. of men’s: 73.1%
> Median income for men: $61,412
> Median income for women: $44,879
Seattle is one of the West Coast’s biggest tech hubs, with companies such as Microsoft and Amazon.com among its top employers. Few major metropolitan areas have a larger proportion of workers in tech jobs than Seattle. In those sectors, pay for women was closer to that of men than most, with the median income for women 86.6% of men’s income. Still, the difference is not unsubstantial, with men earning $12,644 more than their female counterparts. In other sectors, the disparity was worse. For example, in management positions, median earnings for men exceeded the median earnings for women by more than $26,000.
9. Tulsa, Okla.
> Women’s pay as pct. of men’s: 72.9%
> Median income for men: $45,312
> Median income for women: $33,048
As a state, Oklahoma’s gender pay gap was wide. And in the state’s second-largest metropolitan area, Tulsa, the gender pay gap was even worse. Barely 5% of Tulsa’s 10,000 transportation workers were women. For those women, the median pay was just 56% of the men’s pay. Nearly 10% of the region’s full-time workers were in sales positions, with women accounting for 40% of those jobs. In 2011, men in sales positions earned a median of $22,155 more than their female counterparts, more than $5,000 greater than the national gap for such jobs.
8. Bridgeport-Stamford-Norwalk, Conn.
> Women’s pay as pct. of men’s: 72.1%
> Median income for men: $72,202
> Median income for women: $52,063
The median income for women in Bridgeport-Stamford-Norwalk area was more than $20,000 less than the median income of men in 2011. Western Connecticut employs many people in financial services. In Stamford, both UBS and RBS banks employ thousands of people, and countless hedge funds are also situated in the region. Yet there was a profound gap in pay equity between men and women in business and financial operations, with women earning a median of just 54.8% of the men’s pay. In some fields, however, there was no apparent pay gap. In architecture and engineering occupations, women working full time earned a median of $85,227, actually slightly larger than the median pay for men.
7. Wichita, Kan.
> Women’s pay as pct. of men’s: 71.9%
> Median income for men: $47,031
> Median income for women: $33,831
Known as the Air Capital of the World, Wichita’s economy is based on aircraft manufacturers. Companies such as Cessna, Bombardier and Hawker Beechcraft have a large presence in the region and between them employ tens of thousands of workers. Nearly 10% of the metro area’s economy is based on aircraft manufacturing and other types of production, with women accounting for 21.5% of those jobs. In 2011, women in manufacturing and production jobs earned a median of $28,471, while men earned a median of $46,804.
[More from 24/7 Wall St.: Companies with the Best (and Worst) Reputations]
6. Colorado Springs, Colo.
> Women’s pay as pct. of men’s: 70.5%
> Median income for men: $50,908
> Median income for women: $35,907
The median earnings of women in Colorado Springs was about $35,900 in 2011, some $15,000 lower than the median income of men. The two largest private employers in the Colorado Springs area as of the summer of 2011 were Memorial Health System and Penrose-St. Francis Health Services. While these employers provide work to many in the community, the pay gap in health services between men and women is significant. Women working in health diagnosing and as treating practitioners made just slightly more than half that of men in 2011, despite the fact that the sector is comprised of nearly 70% women. For health technologists and technicians, the gap was even more significant, with women earnings less than 35% of the pay that men earned.
5. Palm Bay-Melbourne-Titusville, Fla.
> Women’s pay as pct. of men’s: 69.8%
> Median income for men: $45,582
> Median income for women: $31,820
The median earnings for women in the Palm Bay metropolitan area in 2011 who worked full time was less than 70% of that for men. The pay gap in the Palm Bay area actually bucks the trend in the state as a whole. In Florida, the median income for women was 83.8% that of men’s, the sixth-smallest gap of all states. Nearly 3.7% of the population works in health support, a higher percentage than all but one other city. The pay gap in that field is very large. Women earned just over 55% the pay of men in 2011. One bright spot was in computer and mathematical occupations. Women earned a median income of more than $67,000, or approximately $3,900 more than the median wage for men.
4. Baton Rouge, La.
> Women’s pay as pct. of men’s: 69.3%
> Median income for men: $51,037
> Median income for women: $35,362
The median income for a woman working full time in Baton Rouge was nearly $16,000 less than the median income for a man. About 7.6% of the population works in the construction and extraction industry, the second-highest percentage of all metro areas measured. Many of these people are employed in chemical extraction. Chemical companies have a significant presence in Baton Rouge, with companies such as Dow Chemical, BASF and ExxonMobil’s chemical unit among the largest employers in the region. In the construction and extraction industry, women earned just 52.4% of what men earned in 2011. Other fields where the pay gap between men and women in Baton Rouge was large include production, where the median income of women in 2011 was just 40.6% of the median income of men, and transportation, where women’s earnings were just 42.8% that of men’s.
3. Lancaster, Penn.
> Women’s pay as pct. of men’s: 68.6%
> Median income for men: $47,318
> Median income for women: $32,446
Lancaster is an industrial town. About 11.6% of all full-time, year-round jobs in the region are in the manufacturing industry, the third-highest percentage of the top 100 largest metropolitan areas. Major manufacturers in the region include Armstrong World Industries and R.R. Donnelly & Sons. The median income for women in the manufacturing industry was just 64.3% that of men’s in 2011. The gap was even worse in other fields. In the transportation industry, the median income of women was just 43% that of men’s in 2011, one of the widest pay gaps among the largest metropolitan areas in that field.
2. Ogden-Clearfield, Utah
> Women’s pay as pct. of men’s: 65.2%
> Median income for men: $52,184
> Median income for women: $34,018
Ogden-Clearfield was one of just two metro areas where the median income for women was less than two-thirds of that of men’s. The median income for women was less than half the median income of men in many occupations. In the legal profession, women working full-time earned just 26.3% of what men earned, the biggest pay discrepancy of all metro areas in that field. Women working full time in personal care and service occupations earned just 40.3% of the pay that men did, again the largest pay discrepancy of all metro areas. Other jobs where women’s median income was less than half that of men’s include sales, health diagnosis and treatment, and transportation occupations.
1. Provo-Orem, Utah
> Women’s pay as pct. of men’s: 61.6%
> Median income for men: $51,692
> Median income for women: $31,846
No metropolitan area had a greater pay disparity between men and women than Provo, where the median income in 2011 for men working full time was nearly $20,000 more than the median income for women. Women who worked in personal care and service occupations earned a median of just $18,590, or 44.3% of the earnings of their male counterparts. The pay gap was still vast even in higher-wage positions. Women working in business and financial operations earned just 57.8% of what men earned in 2011, one of the largest pay gaps in that field.
________________________________
Introducing the investment strategist Laszlo Birinyi who has quite many times been right about
the economy when the other strategists failed in their predictions
Any investment has risks, no matter what
Jumping Aboard the Train,
as if There Won’t Be Another
Date: February, 2013
THE economy may be lurching into another crisis, but you wouldn’t know it from the stock market, where an epic party is under way.
Since March 2009, the Standard & Poor’s 500-stock index has risen 125 percent. This year, the S.& P. 500 hasn’t fallen for even a single week.
Irrationally or not, some investors who were on the sidelines have become emboldened enough by the rally to start buying stocks, fund flow data shows.
Yet this effervescence belies some ominous developments in politics and the economy. After the State of the Union address by President Obama on Tuesday — and the negative reaction to it among many Republicans in Congress — it seemed quite possible that $1.2 trillion in automatic government spending cuts might begin in just a few weeks, delivering yet another blow to an already lackluster economy. Most economists had expected minimal growth this year, even without a new shock from Washington — or from Europe or anywhere else.
These apparently conflicting pictures pose a quandary for market strategists. Which signals should an investor emphasize: the signs of disharmony in Washington and the negative indicators for the economy, or the upward trend of the stock market?
For Laszlo Birinyi, the veteran strategist and longtime market bull, the contest isn’t close. He says he starts by assuming that the market is smarter than any analyst. “We focus on the market itself, on what it is actually telling us,” he said. “We don’t worry about the cosmic issues that a lot of people get concerned about, We worry about the stock market ticker. And it’s telling us the market is going up.”
In September 2009, when very few strategists were overtly bullish, Mr. Birinyi, president of Birinyi Associates, the stock market research firm in Westport, Conn., told me that we were in the early stages of a classic bull market. That analysis was prescient. The S.& P. 500 has returned more than 50 percent since then.
In a conversation last week, he said we were in the final stage of that bull market. “The bull market probably has between a year and three years to go,” he said. “I can’t time it. I can only point out the trend.”
Mr. Birinyi, formerly chief stock market analyst at Salomon Brothers, uses a combination of quantitative and subjective analysis. He carefully meters money flows into and out of stocks and scours business coverage in newspapers and magazines, which he sees as barometers of popular sentiment.
Money flow, as he measures it, comes from an algorithm he devised at Salomon. “Trades made on a price uptick are treated as buyer-initiated,” said Jeffrey Yale Rubin, director of research at Birinyi Associates. “On a downtick, it’s seller-initiated.”
As Mr. Birinyi puts it, “we care about what traders are actually doing with the money.” Mutual fund flows are widely tracked, he said, “but they aren’t as critical as most people generally think.” They tell you how much money is being given to a money manager — an intermediary. “The critical issue is how that intermediary is actually using the money,” he said.
The firm’s calculations indicate that in January, net money flows into the stocks of the S.& P. 500 — as opposed to money flowing intomutual funds — amounted to $15.6 billion. This compares with a net outflow of $10.4 billion in October, just before market sentiment began to change.
Based on the history of long bull markets — particularly those of 1962, 1974, 1982, 1990 and 2002 — such upswings usually have four stages, Mr. Birinyi said. They begin with reluctance, shift to consolidation and then move to “grudging acceptance.” The last phase, which he says we have just entered, is exuberance: “This is a point where people say, yes, the economy isn’t going into recession right away, companies are making money, interest rates are not going through the roof, and all the concerns we have had for some time perhaps were too negative.”
He says it’s as if people are realizing: “The market isn’t like the New York subway system. There isn’t another train coming right after this one. This is it, this is the last train. You’d better get on board.”
WHEN this exuberance turns irrational and becomes widespread — when fear is gone and people with no skill in day-trading gleefully engage in it — it’s time to run, but that time hasn’t come yet, he said. “There are still problems in the economy,” he said. “People are still concerned.”
And they may have good reason. For example, the latest threat to the economy was conceived in Washington as a deterrent — a planned disaster that is never supposed to happen. That’s the sequester, the imminent spending cuts that President Obama and Congress set in motion last year. As the president put it last week, “Democrats, Republicans, business leaders and economists” have already said these cuts “are a really bad idea.”
Bad or not, the idea was that by legislating a catastrophe that no sane person would accept, the fiscal logjam in Washington would be broken. Well, don’t count on it.
The cuts are scheduled to start on March 1. The president’s speech and the Republican response suggest that the two sides remain far apart. Mr. Obama, for example, called for a “balanced” approach, involving higher taxes as well as some spending cuts. Senator Marco Rubio, the Florida Republican, said that for Mr. Obama, the “solution to virtually every problem we face is for Washington to tax more, borrow more and spend more.”
The cuts may subtract roughly a quarter of a percentage point from the gross domestic product in 2013, assuming that Congress eventually mitigates them, according to an estimate by Michael Feroli, chief United States economist at JPMorgan Chase. He now expects G.D.P. growth of only 1.9 percent, roughly in line with consensus forecasts. And it could get worse.
Mr. Birinyi doesn’t so much ignore these forecasts as discount them. “The market is telling us it will be a profitable year for many companies,” he said. “That’s what’s important.”
There is a 55 percent chance that the S.& P. 500 will reach 1,600 this year, he estimated, and it’s likely to keep rising after that. On Friday, the index closed at 1,519.79, within shouting range of its closing high of 1,565.15 reached in 2007, according to Bloomberg.
Asked what is ultimately propelling the market, he said, “It’s the Fed, always the Fed” — the accommodative monetary policy of the Federal Reserve and other central banks. Precisely because the economy is weak, he said, the Fed will keep its foot on the gas, making stocks appealing.
If you want to know where the market is going, he said, study the news — but always “follow the money.”
Source: NYT
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The Pope's Retirement Package
- the first one the Vatican has had to prepare in almost 600 years -
It's good to be the pope - even a retired one, it turns out
How does the Pope's package compare with an American Retiree
Date: February 2013
As Pope Benedict XVI steps down on Thursday, February 28, 2013, his retirement package - the first one the Vatican has had to prepare in almost 600 years - would likely be considered a sweet deal by the average American senior, providing a steady income and generous perks.
Pope Benedict XVI will be known as ''emeritus pope'' in his retirement and will continue to wear a white cassock but not the cape, the Vatican announced on 3/26/13, again fueling concerns about potential conflicts arising from having both a reigning and a retired pope. Both are called "Your Holiness".
Let's start with the basics: The pope emeritus will receive a monthly pension of 2,500 euros, according to Italian newspaper La Stampa.
That translates to almost $3,300, or close to the monthly maximum of $3,350 that Social Security will pay to an American who retires this year.
Click: Cheating on Taxes Is Not Cool, Say Most Americans
Few people will actually qualify for that amount. For starters, you would have to wait until 70 to retire. You would also have to spend most of your working life earning Social Security's taxable maximum pay, which is set at $113,700 this year.
"That's quite rare," said Richard Johnson, director of the program on retirement policy at the Urban Institute.
He pointed out that the average Social Security check is about $1,200 a month - not enough to pay for the typical American retiree's expenses.
Click: Not-So-Golden Years - Over 75, and Crushed by Debt
"For most people, if you look at the median, Social Security counts for about 40 percent of their income. So it's important, but people rely a lot on other savings, like pensions or 401(k) savings," Johnson said.
A big nest egg is not something the pope emeritus has to worry about. The Roman Catholic Church will cover his living expenses, provide him with a spacious home inside the Vatican and pay for everything from cooked meals to housekeepers, according to The Telegraph.
Such services are not available to the typical American senior, unless he or she pays for an assisted living facility or resides in a nursing home, Johnson said.
What about waiting to retire until 85, as Benedict did? The average American retires at about 64, so working that long is unusual, Johnson noted.
"If you have a job you love, it's great," he said.
"(But) just like the pope, the biggest determinant of retirement is health status. When your health starts to deteriorate, that's what often pushes people into retirement, sometimes earlier than expected."
Health care costs are one of the big risks that older Americans face, and while Medicare pays for the bulk of their expenses, many things are left uncovered, Johnson said. Meanwhile, the pope emeritus will continue to be a member of the Vatican's generous private health care policy, the BBC reported.
Click: Divorcing Boomers Double Their Retirement Problems
Bottom line: rent-free living, few out-of-pocket expenses plus thousands of dollars deposited into your account each month would probably constitute a good deal in most people's minds.
Of course, the pope is not most people. His financial health is of such interest that it recently got the Saturday Night Live treatment, with a mock ad showing a worried Benedict surrounded by a pile of unpaid bills and seeking the help of a financial planning firm called "Papal Securities." Motto: "Because heaven can wait."
More
- the first one the Vatican has had to prepare in almost 600 years -
It's good to be the pope - even a retired one, it turns out
How does the Pope's package compare with an American Retiree
Date: February 2013
As Pope Benedict XVI steps down on Thursday, February 28, 2013, his retirement package - the first one the Vatican has had to prepare in almost 600 years - would likely be considered a sweet deal by the average American senior, providing a steady income and generous perks.
Pope Benedict XVI will be known as ''emeritus pope'' in his retirement and will continue to wear a white cassock but not the cape, the Vatican announced on 3/26/13, again fueling concerns about potential conflicts arising from having both a reigning and a retired pope. Both are called "Your Holiness".
Let's start with the basics: The pope emeritus will receive a monthly pension of 2,500 euros, according to Italian newspaper La Stampa.
That translates to almost $3,300, or close to the monthly maximum of $3,350 that Social Security will pay to an American who retires this year.
Click: Cheating on Taxes Is Not Cool, Say Most Americans
Few people will actually qualify for that amount. For starters, you would have to wait until 70 to retire. You would also have to spend most of your working life earning Social Security's taxable maximum pay, which is set at $113,700 this year.
"That's quite rare," said Richard Johnson, director of the program on retirement policy at the Urban Institute.
He pointed out that the average Social Security check is about $1,200 a month - not enough to pay for the typical American retiree's expenses.
Click: Not-So-Golden Years - Over 75, and Crushed by Debt
"For most people, if you look at the median, Social Security counts for about 40 percent of their income. So it's important, but people rely a lot on other savings, like pensions or 401(k) savings," Johnson said.
A big nest egg is not something the pope emeritus has to worry about. The Roman Catholic Church will cover his living expenses, provide him with a spacious home inside the Vatican and pay for everything from cooked meals to housekeepers, according to The Telegraph.
Such services are not available to the typical American senior, unless he or she pays for an assisted living facility or resides in a nursing home, Johnson said.
What about waiting to retire until 85, as Benedict did? The average American retires at about 64, so working that long is unusual, Johnson noted.
"If you have a job you love, it's great," he said.
"(But) just like the pope, the biggest determinant of retirement is health status. When your health starts to deteriorate, that's what often pushes people into retirement, sometimes earlier than expected."
Health care costs are one of the big risks that older Americans face, and while Medicare pays for the bulk of their expenses, many things are left uncovered, Johnson said. Meanwhile, the pope emeritus will continue to be a member of the Vatican's generous private health care policy, the BBC reported.
Click: Divorcing Boomers Double Their Retirement Problems
Bottom line: rent-free living, few out-of-pocket expenses plus thousands of dollars deposited into your account each month would probably constitute a good deal in most people's minds.
Of course, the pope is not most people. His financial health is of such interest that it recently got the Saturday Night Live treatment, with a mock ad showing a worried Benedict surrounded by a pile of unpaid bills and seeking the help of a financial planning firm called "Papal Securities." Motto: "Because heaven can wait."
More
- Past Due: More Americans Are Behind on Auto Loans
- One Quarter of US Has More Card Debt Than Savings
- 401(k)s Hold Risky Levels of Company Stock: Pro Source: Internet news ________________________________________________________________________________
How Europe Bankrolls Terror
Date: February 16, 2013
Click green
By Nasser Weddady is the civil rights outreach director at the American Islamic Congress and a co-editor of “Arab Spring Dreams: The Next Generation Speaks Out for Freedom and Justice From North Africa to Iran.”
WHEN northern Mali fell to terrorists and foreign militants last April, a debate began over the causes of the country’s
chaotic collapse. Many argued that it was a direct byproduct of NATO’s 2011 intervention in Libya, which sent thousands of well-armed men across the Sahara to Mali. Others pointed to Mali’s internal corruption and ethnic divisions. But little was said about the most important factor: Europeans have knowingly bankrolled Islamist radicals with ransom payments since at least 2003.
Sixteen years before the 9/11 attacks, the United States sold Iran weapons indirectly in the hopes of freeing American hostages held by Iran’s proxy, Hezbollah. The Iran-contra debacle taught America, among other things, that paying ransom money only emboldens terrorist groups and their backers. Yet when confronted with the same challenge, European leaders have failed to heed that lesson, and have filled the coffers of terrorist groups for at least a decade.
The so-called global war on terror has been hobbled by these payoffs. The same nations that until very recently had troops in Afghanistan fighting terrorism have been turning over cash to terrorists in Africa.
Over the past decade, Britain, Germany, Italy, Spain, France, Austria, Sweden and the Netherlands have paid more than $130 million to terrorist groups, mostly through mediators, to free European hostages.
European leaders were understandably desperate to save the lives of their citizens. But their efforts have backfired because the paying of ransoms has merely turned their citizens into a lucrative commodity for cash-hungry jihadis. Groups like Al Qaeda in the Islamic Maghreb and the Movement for Unity and Jihad in West Africa have grown accustomed to ransom payments and reacted by seeking to capture as many Europeans — from aid workers to volunteers to tourists — as they could. In contrast, terrorists know that America won’t negotiate with hostage-takers and is much more likely to use force to free its citizens.
This problem was festering long before NATO’s intervention in Libya. In 2009, Salima Tlemcani, a journalist at the Algerian newspaper El Watan and an expert on Al Qaeda in the Islamic Maghreb, reported that cash payments were being used by terrorists to purchase weapons and telecommunications equipment. In a report published by the Carnegie Endowment for International Peace, Wolfram Lacher pointed to ransom money as “a main driver of A.Q.I.M.’s growth.”
A former American ambassador to Mali, Vicki J. Huddleston, told the British newspaper The Telegraph, “Everyone is pretty much aware that money has passed hands indirectly through different accounts and it ends in the treasury, let us say, of the A.Q.I.M.” Ransom money, she said, “allowed A.Q.I.M. to grow strong, buy weapons and recruit.”
For the growing terrorist networks of North Africa, ransoms have become a more lucrative jackpot than traditional mainstays like drug and cigarette smuggling. Mokhtar Belmokhtar, the mastermind behind the recent attack on a gas facility in Algeria that killed 39 foreign hostages, is a veteran terrorist whose career began in Afghanistan in the 1980s. He was also an architect of the strategy of turning kidnappings into a lucrative business. In 2003, his group kidnapped 32 European tourists and traded them for more than $6.5 million, using the money to buy weapons, bribe officials across the region and build a desert sanctuary.
Mr. Belmokhtar’s lucrative kidnapping business helped turn northern Mali into a destination for aspiring jihadis. Starting in 2004, radicalized youths flocked there from my native country of Mauritania, as well as from Algeria, Niger, Morocco, Nigeria and Saudi Arabia.
The cash infusion from ransoms allowed Mr. Belmokhtar and his acolytes to set up terrorist training camps and enabled them to buy locals’ support. By marrying into local families, and providing services to the desperately poor inhabitants of the Sahel region, they established themselves as a plausible alternative to Mali’s weak government.
By 2011, terrorists had effectively set up their own ministate in northern Mali. While aware of the ransom problem, the European Union was unable to formulate a united strategy to deal with it. As a result of dysfunctional multilateral institutions, each country continued to fend for itself and its own citizens.
THIS shortsighted approach destabilized the Sahel and angered the region’s most powerful nation, Algeria. For years, Algerian officials had complained about the impact of ransom payments on their own security. They went so far as to propose, in the United Nations General Assembly, a ban on paying ransoms to terrorists. The resolution became the basis of a Security Council resolution in 2009. But in practice, Algeria’s pleas went largely unheeded.
France’s recent military operation in Mali would not have been necessary if there had been a coherent European policy that involved targeted operations against terrorist networks. Even today, with French and African troops on the ground in Mali, there has been shockingly little help from other European governments. Most of Europe has avoided responsibility for preventing the emergence of a new terrorist hot spot virtually on its doorstep.
By contrast, the American government seems to grasp the seriousness of the problem and has gone to great lengths to stop it. The Treasury Department’s under secretary for terrorism and financial intelligence went to Europe last October, seeking to prevent any future ransom payments to A.Q.I.M. and a related group, Al Qaeda in the Arabian Peninsula. But the ransom problem is not, ultimately, America’s responsibility; Europe’s leaders must slay the monster they helped create.
That won’t be easy. The belief that Africa’s ill-prepared armies and France can make the problem of Islamist radicalism in North Africa disappear is a manifestation of European leaders’ delusional attitudes toward the region.
Europe owes the people of the Sahel — and European citizens — a commitment to refuse ransom money to terrorists anywhere. The only thing that Mr. Belmokhtar and his ilk should expect from the international community is overwhelming force of the sort Algeria demonstrated during the hostage crisis last month. Only by showing them that hostage-taking by terrorists is futile can security in the Sahel be re-established. Otherwise, another Mali is waiting to happen — somewhere nearby.
Source: NYT & Nasser Weddady is the civil rights outreach director at the American Islamic Congress and a co-editor of “Arab Spring Dreams: The Next Generation Speaks Out for Freedom and Justice From North Africa to Iran.”
Click green for further info
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Relates to supermarkets & other retail stores - we all need this info
Digital Tags Help Ensure the Price Is Right
Date: February , 2013
By Randall Stross, professor of business at San Jose State University
Some decades ago, a grocery store’s aisles were often filled with “chunk-a-chunk-a” sounds, as clerks stamped prices to the tops of cans and boxes before putting them on shelves. It was a labor-intensive operation, but it did result in a price being affixed to most every item in the store.
Then bar codes and computerized cash registers arrived. In most stores, prices were posted on shelves but not on the items themselves.
I’ve always trusted that the system works well — and I’ve tapped my foot impatiently when a shopper ahead of me slowed the checkout process by closely watching the prices that came up, as if the scanner might have recorded the wrong product code. What I hadn’t realized was that there is valid reason to be vigilant. The potential problems originate on the shelves, in the form of the shelf tags, which may or may not match the current price in a store’s computer.
A typical grocery store puts 5,000 items on sale in a week and removes sale prices from another 5,000. That creates an abundance of opportunities for mismatches when workers print out the new price labels in a back room, then hunt for the proper place on the shelf to attach them.
This has left store technology in an incomplete state: mostly but not entirely computerized. The next step is to go completely paperless by putting small, battery-powered digital price tags on the shelves. Price changes can then be received wirelessly from the store’s network, ensuring that the price displayed on the shelf and the one called up at the checkout counter are the same.
Altierre, a digital tag and sensor maker based in San Jose, Calif., has raised more than $80 million from investors and spent 10 years developing the technology for digital tags and the wireless networks they require. It asserts that outfitting a store with 20,000 to 25,000 tags, each costing about $5, would produce labor savings that would pay back the investment in two to two-and-a-half years.
The tags can provide multiple screens of information. To reduce power consumption, Altierre uses black-on-gray liquid crystal displays, the same type used in digital watches and pocket calculators. The most generous thing that can be said about this type of display is that its legibility is satisfactory.
At Altierre’s headquarters, a full-size mock grocery store is set up with its tags installed on the shelves. There, I was surprised to find that the LCD’s legibility problems didn’t seem so significant: shoppers stand close to the shelves anyway. On some shelves, Altierre showed off an improved tag, at a higher price, that uses E Ink technology. Its text is noticeably crisper than that of an ordinary LCD tag.
I asked Sunit Saxena, Altierre’s chief executive, why grocery stores haven’t leapt at the chance to save themselves money by installing the tags. “They’re treading carefully because the fear is, they’ll put 30,000 of these in a store where people are used to seeing paper and it will be a drastic change,” he said. “They worry that their sales will drop.”
Digital sign technology is hardly new. In France, customers are accustomed to digital signs in grocery stores, where an LCD tag with limited display capacity has been on shelves for about 10 years, says Michel Itié, an I.T. consultant. It shows only the price and the price per weight, so it requires a separate paper tag to show an item’s name.
Many French hypermarkets, which combine grocery stores and department stores, also use the tags. Mr. Itié is working with a company that is installing Altierre’s technology for the hypermarket chain E.Leclerc, which has installed 300,000 new LCD tags in 10 stores and plans to deploy a total of two million tags by year-end.
In the United States, grocery stores still cannot justify making the investment in digital price tags, says Patrick C. Fitzpatrick, president of Atlanta Retail Consulting. “If the payback was advantageous, you’d see them everywhere.”
Stores are eager, however, to find an affordable way to reduce price-related errors. Mr. Fitzpatrick says that when grocery store managers conduct “price integrity audits” and compare price labels on the shelves with the prices in the store computer, paper labels are only 95 percent to 96 percent accurate.
“If you make 10,000 price changes and you have 1,000 stores, you have 10 million instances,” says Chris Donnelly, a managing director of Accenture who specializes in retail consulting. “Even if you get the right label in the right place 99 percent of the time, that leaves 100,000 misplaced labels.”
Addressing this problem helps make the case for digital signs that labor savings alone can’t, Mr. Donnelly says. Another advantage is the tags’ ability to provide multiple screens of product information. He gives an example: grocery store customers who have a gluten allergy could press a button and quickly see a symbol that shows whether gluten is in a particular product.
SO far, the only company in the United States that has adopted Altierre’s technology is (Click green) Kohl’s, the department store chain. Last month, it completed installation of digital signs in its stores. It uses a large-format LCD screen that sits atop, say, a rack of clothes or on a countertop in the jewelry department, showing a description and a sale price. This allows the store to offer a discount without having to affix new price labels. A Kohl’s spokeswoman declined to say how many digital signs the company uses or how much labor they save. Nor would she comment about the legibility of the text on the LCD screen. In one Kohl’s store, I found the LCD signs impossible to read from an angle.
Mr. Saxena of Altierre says the LCD displays at Kohl’s serve a limited purpose, providing prices once a customer is drawn to a particular item. Attracting the customer is the responsibility of colorful paper signs that accompany each of the LCD rectangles. These call out “Sale” or other messages and can easily be seen from far away.
Digital tags look best when they remain small and are modest in their ambitions, like in a grocery store, where they are spared the burden of trying to be the visual equal of color on paper. Seeing thousands of them on shelves seems rather strange at first glance. But not so much at the second. After the third, paper price tags look as quaint as a rotary-dial telephone.
Source: NYT & Randall Stross is an author based in Silicon Valley and a professor of business at San Jose State University
__________________________________________________
Digital Tags Help Ensure the Price Is Right
Date: February , 2013
By Randall Stross, professor of business at San Jose State University
Some decades ago, a grocery store’s aisles were often filled with “chunk-a-chunk-a” sounds, as clerks stamped prices to the tops of cans and boxes before putting them on shelves. It was a labor-intensive operation, but it did result in a price being affixed to most every item in the store.
Then bar codes and computerized cash registers arrived. In most stores, prices were posted on shelves but not on the items themselves.
I’ve always trusted that the system works well — and I’ve tapped my foot impatiently when a shopper ahead of me slowed the checkout process by closely watching the prices that came up, as if the scanner might have recorded the wrong product code. What I hadn’t realized was that there is valid reason to be vigilant. The potential problems originate on the shelves, in the form of the shelf tags, which may or may not match the current price in a store’s computer.
A typical grocery store puts 5,000 items on sale in a week and removes sale prices from another 5,000. That creates an abundance of opportunities for mismatches when workers print out the new price labels in a back room, then hunt for the proper place on the shelf to attach them.
This has left store technology in an incomplete state: mostly but not entirely computerized. The next step is to go completely paperless by putting small, battery-powered digital price tags on the shelves. Price changes can then be received wirelessly from the store’s network, ensuring that the price displayed on the shelf and the one called up at the checkout counter are the same.
Altierre, a digital tag and sensor maker based in San Jose, Calif., has raised more than $80 million from investors and spent 10 years developing the technology for digital tags and the wireless networks they require. It asserts that outfitting a store with 20,000 to 25,000 tags, each costing about $5, would produce labor savings that would pay back the investment in two to two-and-a-half years.
The tags can provide multiple screens of information. To reduce power consumption, Altierre uses black-on-gray liquid crystal displays, the same type used in digital watches and pocket calculators. The most generous thing that can be said about this type of display is that its legibility is satisfactory.
At Altierre’s headquarters, a full-size mock grocery store is set up with its tags installed on the shelves. There, I was surprised to find that the LCD’s legibility problems didn’t seem so significant: shoppers stand close to the shelves anyway. On some shelves, Altierre showed off an improved tag, at a higher price, that uses E Ink technology. Its text is noticeably crisper than that of an ordinary LCD tag.
I asked Sunit Saxena, Altierre’s chief executive, why grocery stores haven’t leapt at the chance to save themselves money by installing the tags. “They’re treading carefully because the fear is, they’ll put 30,000 of these in a store where people are used to seeing paper and it will be a drastic change,” he said. “They worry that their sales will drop.”
Digital sign technology is hardly new. In France, customers are accustomed to digital signs in grocery stores, where an LCD tag with limited display capacity has been on shelves for about 10 years, says Michel Itié, an I.T. consultant. It shows only the price and the price per weight, so it requires a separate paper tag to show an item’s name.
Many French hypermarkets, which combine grocery stores and department stores, also use the tags. Mr. Itié is working with a company that is installing Altierre’s technology for the hypermarket chain E.Leclerc, which has installed 300,000 new LCD tags in 10 stores and plans to deploy a total of two million tags by year-end.
In the United States, grocery stores still cannot justify making the investment in digital price tags, says Patrick C. Fitzpatrick, president of Atlanta Retail Consulting. “If the payback was advantageous, you’d see them everywhere.”
Stores are eager, however, to find an affordable way to reduce price-related errors. Mr. Fitzpatrick says that when grocery store managers conduct “price integrity audits” and compare price labels on the shelves with the prices in the store computer, paper labels are only 95 percent to 96 percent accurate.
“If you make 10,000 price changes and you have 1,000 stores, you have 10 million instances,” says Chris Donnelly, a managing director of Accenture who specializes in retail consulting. “Even if you get the right label in the right place 99 percent of the time, that leaves 100,000 misplaced labels.”
Addressing this problem helps make the case for digital signs that labor savings alone can’t, Mr. Donnelly says. Another advantage is the tags’ ability to provide multiple screens of product information. He gives an example: grocery store customers who have a gluten allergy could press a button and quickly see a symbol that shows whether gluten is in a particular product.
SO far, the only company in the United States that has adopted Altierre’s technology is (Click green) Kohl’s, the department store chain. Last month, it completed installation of digital signs in its stores. It uses a large-format LCD screen that sits atop, say, a rack of clothes or on a countertop in the jewelry department, showing a description and a sale price. This allows the store to offer a discount without having to affix new price labels. A Kohl’s spokeswoman declined to say how many digital signs the company uses or how much labor they save. Nor would she comment about the legibility of the text on the LCD screen. In one Kohl’s store, I found the LCD signs impossible to read from an angle.
Mr. Saxena of Altierre says the LCD displays at Kohl’s serve a limited purpose, providing prices once a customer is drawn to a particular item. Attracting the customer is the responsibility of colorful paper signs that accompany each of the LCD rectangles. These call out “Sale” or other messages and can easily be seen from far away.
Digital tags look best when they remain small and are modest in their ambitions, like in a grocery store, where they are spared the burden of trying to be the visual equal of color on paper. Seeing thousands of them on shelves seems rather strange at first glance. But not so much at the second. After the third, paper price tags look as quaint as a rotary-dial telephone.
Source: NYT & Randall Stross is an author based in Silicon Valley and a professor of business at San Jose State University
__________________________________________________
Doctors Who Don’t Speak Out
Click green for further info
THE note sent by a doctor to several executives at Johnson & Johnson was blunt: an artificial hip sold by the company was so poorly designed that the company should slow its marketing until it understood why patients were getting hurt.
The doctor, who also worked as a consultant to Johnson & Johnson, wrote the note nearly two years before the company recalled the device in 2010. And it was far from the only early warning those executives got from doctors who were paid consultants. Still, the company’s DePuy orthopedic unit plowed ahead, and those consultants never sounded a public alarm to other doctors, who kept implanting the device.
The memos have recently emerged during the trial of the first of more than 10,000 patient lawsuits brought against Johnson & Johnson over the hip implant device, the Articular Surface Replacement, or A.S.R. The company has insisted that it acted responsibly in determining when to halt its sale. But plaintiffs’ lawyers have offered a portrait of executives who put profits ahead of patients, even scuttling a plan to fix the implant because it cost too much.
It might not be surprising to find that executives acted to protect a company’s bottom line. Still, the Johnson & Johnson episode is also illuminating a broader medical issue: while experts say that doctors have an ethical obligation to warn their peers about bad drugs or medical devices, they often do not do so.
“Questioning the status quo in medicine is not easy,” said Dr. Harlan Krumholz, a professor at Yale School of Medicine.
Physicians may remain silent for a variety of reasons, he and other experts said. They may fear that speaking out could get them sued or believe that a product problem was an anomaly or their fault.
Doctors also have an aversion to reporting. For instance, while the Food and Drug Administration relies on physicians to help monitor product safety by alerting the agency to adverse patient reactions, doctors usually do not make such filings, saying they are too busy for the paperwork.
“The standard in the medical community is not to report,” said Dr. Robert Hauser, a cardiologist who, along with a colleague, warned other doctors in 2005 about a defective heart implant.
There is another reason doctors may choose to remain silent, experts say: their financial ties to a drug or device maker.
For years, such consulting payments have raised concerns about the impact of money on a doctor’s decision about which drugs to prescribe or how to interpret research findings. Money can also shift a physician’s sense of loyalty, said George Loewenstein, a professor at Carnegie Mellon University who has studied medical conflict-of-interest policies. “If someone has been paying you or employing you, it is very difficult to blow the whistle,” said Professor Loewenstein, who teaches economics and psychology. “It offends our sense of loyalty.”
Dr. Krumholz said he also believed that such loyalties were between a doctor and a company’s executives, rather than with a company or its brand. Over time, a physician may come to see his relationships with those officials in terms of friendship, while companies see an influential doctor as an asset who helps develop products and boost sales.
For a consultant, breaking those ties can carry a cost. For example, when Dr. Lawrence D. Dorr, an orthopedic specialist, warned fellow surgeons in an open letter in 2008 that a hip implant made by Zimmer Holdings was flawed, he became the subject of a whisper campaign that questioned his skills as a surgeon.
“The first thing that a company does is to put out a campaign that a surgeon does not know how to operate,” said Dr. Dorr, who was a consultant to Zimmer when he wrote the letter. “It hurt my practice for a year.”
TRADITIONALLY, doctors have brought problems to the attention of colleagues by conducting research and publishing their findings in a medical journal. The advantage of that system helps ensure the credibility of study data and protects a researcher from random attack, said Dr. David Blumenthal, the president of the Commonwealth Fund, a group that studies health policy issues.
But getting a study published can take a year or two; some Johnson & Johnson consultants did publish studies about the hip’s flaws, but they largely appeared after it had been recalled.
Dr. Blumenthal said there was probably a need for more immediate ways for doctors to share their concerns, like forums supported by professional medical organizations. Another approach would be to have companies hire doctors as consultants whose sole concern was product safety, Professor Loewenstein said.
The results of not speaking out are playing out in a Los Angeles courtroom, where the first Johnson & Johnson hip case is unfolding. In the years before the implant’s recall, a British physician, Dr. Antoni Nargol, and a colleague were among those who tried to alert surgeons to the problem.
But the silence of other doctors apparently gave company executives the upper hand; in meetings with Dr. Nargol, they said that he seemed to be the only doctor having trouble.
He said recently, “They told me there were no other problems.”
Click green for further info
Source:
Barry Meier is a reporter who covers business and medicine for The New York Times.
________________________________________________
W a r n i n g
Save The American Family - STAF, Inc. is NOT endorsing the services of
Fisher Investments, the company providing the information
you can download by clicking the proper green spot below
You click and do this on your own risk
The link below is provided only as a service to get the information
What you do with that information is fully your own private matter and you do it on your own risk
Click here - IT'S FREE!
Get your FREE copy of
The 15-Minute Retirement Plan - How to Avoid Running Out of Money When You Need It Most
Written by Forbes columnist and leading market forecaster Ken Fisher's firm, it's loaded with practical information you can use to help meet your personal financial goals.
CLICK HERE TO DOWNLOAD YOUR COPY.
No cost and no obligation beyond completing a short request form and survey.
In this must read guide you will learn our views on:
This offer contains timely information (this is placed 2013 - see that your copy is up-to-date)
Fisher Investments | 13100 Skyline Blvd. | Woodside, CA 94062 | 1-800-587-5506 | [email protected]
Your privacy is extremely important to us. Click here to view our Privacy Policy.
Investments in securities involve the risk of loss.
Copyright © 2003-2013 Fisher Investments. All rights reserved.
Before you contact Fisher Investments see above the
W a r n i n g
by STAF, Inc.
_______________________________________________________
Save The American Family - STAF, Inc. is NOT endorsing the services of
Fisher Investments, the company providing the information
you can download by clicking the proper green spot below
You click and do this on your own risk
The link below is provided only as a service to get the information
What you do with that information is fully your own private matter and you do it on your own risk
Click here - IT'S FREE!
Get your FREE copy of
The 15-Minute Retirement Plan - How to Avoid Running Out of Money When You Need It Most
Written by Forbes columnist and leading market forecaster Ken Fisher's firm, it's loaded with practical information you can use to help meet your personal financial goals.
CLICK HERE TO DOWNLOAD YOUR COPY.
No cost and no obligation beyond completing a short request form and survey.
In this must read guide you will learn our views on:
- The truth about how long your nest egg will last. (It's worth requesting your free report for this information alone!)
- Why it is vital to prepare for a long retirement.
- How inflation can impact your retirement plan.
- How much of an inheritance you'll be able to leave to your heirs...and much more!
This offer contains timely information (this is placed 2013 - see that your copy is up-to-date)
Fisher Investments | 13100 Skyline Blvd. | Woodside, CA 94062 | 1-800-587-5506 | [email protected]
Your privacy is extremely important to us. Click here to view our Privacy Policy.
Investments in securities involve the risk of loss.
Copyright © 2003-2013 Fisher Investments. All rights reserved.
Before you contact Fisher Investments see above the
W a r n i n g
by STAF, Inc.
_______________________________________________________
DO NOT START INVESTING BEFORE
YOU HAVE TAKEN THESE THREE STEPS
(1) you have studied well both articles below &
(2) studied all their links information & (3) studied all additional article links
Article 1 below: I Had No Savings at 40, but I Retired Well by 60
Article 2 below: What Is a Certified Financial Adviser - 15 Types & Credentials
______________________________________
YOU HAVE TAKEN THESE THREE STEPS
(1) you have studied well both articles below &
(2) studied all their links information & (3) studied all additional article links
Article 1 below: I Had No Savings at 40, but I Retired Well by 60
Article 2 below: What Is a Certified Financial Adviser - 15 Types & Credentials
______________________________________
A Trader’s Crash Landing
This is an entertaining and cautionary tale, well worth your time
I can imagine parents out there who might give it to children pondering Wall Street careers
Of course, should it excite rather than frighten your budding Bud Fox,
you might consider urging an alternative career path
However, with real passion and honesty you can succeed in everything, also in Wall Street
Click green for further info
Remember Bud Fox, the callow, young go-getter portrayed by Charlie Sheen in the 1987 movie “Wall Street”? Ever wonder how Bud’s career would have gone had he lasted another 10 years or so? Frankly, me neither.
But I suspect that things might have turned out almost as badly as they did for Turney Duff, a callow, young hedge fund trader who writes of his own noteworthy flameout in a bracing new Wall Street memoir called “The Buy Side” (Crown Business, 320 pages).
Mr. Duff’s tale calls to mind books like “Bright Lights, Big City,” by Jay McInerney, and especially “Liar’s Poker,” by Michael Lewis — stories of wide-eyed newcomers confronted by the temptations of moneyed New York. As literature, it doesn’t rise to the same class. As spectacle, it easily trumps both.
Mr. Duff makes millions, pays brand-name rappers to perform at his birthday party and dates a glamorous singer. But instead of riding into the sunset, he ends up retreating to sumptuous hotel suites where he inhales piles of cocaine, swills Scotch and watches pornographic movies. By himself.
Along the way, by his own admission, Mr. Duff becomes a caricature of the arrogant young Wall Streeter that so much of America loves to hate. If “The Buy Side” is remembered for any single line, it will be the remark that Mr. Duff says he uttered one evening upon confronting a lengthy queue outside a downtown Manhattan nightclub. Barging past the bouncers, he announces: “I don’t stand in lines. I snort them.” He and his trading pals think the joke so hilarious that they later emblazon it on souvenir T-shirts.
A middle-class kid from Maine, Mr. Duff began his career in 1994, in the early years of the hedge fund era, when he arrived in New York as a fresh-faced journalism graduate from Ohio University. Unable to land a job in writing or anything else, he reaches out to an uncle on Wall Street, who arranges interviews with several of the big firms. Mr. Duff aces the one at Morgan Stanley by recapping the previous evening’s episode of “Melrose Place,” the interviewer’s favorite television show. Hey, so much for that diploma.
One of the book’s strengths is Mr. Duff’s self-awareness. He realizes what he became. At Morgan, where he spent five years as a desk assistant, he knew little about Wall Street and learned even less about investing, acknowledging that he was too lazy to read research. Where he thrived was after the closing bell, when he proved adept at staging office parties and leading his peers — and a few higher-ups — through the assorted watering holes he frequented.
His light-bulb moment comes one evening when he successfully introduces a group of pretty girls to a senior trader. “I realize I’m in my element,” he writes. “I feel in total control and at ease. Only in looking back can I see how seminal this moment is. I would never be able to stand out at my job. There I’m out-experienced, out-connected and out-degreed. But here, with a glass in hand, I have as good a chance as any to move and shake.”
Mr. Duff puts his social skills to good use when, unable to secure an actual trading job at Morgan, he moves to an up-and-coming hedge fund, the Galleon Group — the same Galleon Group that was eviscerated in Wall Street’s continuing insider-trading scandals.
As a “buy side” trader executing transactions for senior portfolio managers, he is a conduit to the “sell side” traders at the big Wall Street firms who actually carry out his trades. Mr. Duff’s decisions on how and where to allocate his trades make him of crucial importance to the sell-side traders, who earn commissions on them.
It is Mr. Duff’s portrait of how sell-side traders ardently romance their buy-side counterparts that is probably the book’s most memorable contribution to Wall Street literature. He takes everything they offer: booze, dinners, Super Bowl tickets, private jets to Las Vegas weekends, parties in South Beach, lots of cocaine and, while at Galleon, scads of tips that move stocks. One of his mentors, a trader named David Slaine, ended up cooperating with the government’s Galleon investigation, but the scandal proves peripheral to the book.
WHAT stays with you is the portrait of a young man who seemingly never met a temptation he could deny.
For a time, Mr. Duff rides high, earning million-dollar bonus checks, renting a TriBeCa triplex with drop-dead Hudson River views and eventually adding a girlfriend, a Long Island manse and a beloved daughter. But the drugs soon take hold, and his long downward spiral grows uglier at every turn. After two stays in rehabilitation facilities, he loses the trading job he took after leaving Galleon, then his relationship and the real estate. The financial crisis does the rest, and today, Mr. Duff says, he tries to make a living writing from a tiny apartment in Long Island City, Queens.
Mr. Duff proves a fine wordsmith; his prose is smooth, lean and rhythmic. Where the book misfires — badly — is when he tries to plumb the existential side of things, or to employ literary artifice. There is one cringe-worthy chapter about his girlfriend, where he begins every few paragraphs with a letter, “I,” then “I L,” and so on, which of course ends up spelling out “I LOVE YOU.” It made me want to throw the book across the room.
Almost as bad is his “Bud Fox” moment, the obligatory episode in these lost-in-Manhattan memoirs when the protagonist must replicate that memorable scene from Wall Street when Charlie Sheen, having sacrificed himself to Gordon Gekko and the gods of capitalism, stares out at the Manhattan skyline and asks, plaintively, “Who am I?”
Mr. Duff’s moment comes the morning after his 34th birthday party, when he wakes on the roof deck of his triplex, fires up a marijuana cigarette and realizes how hollow all his newfound wealth and party-hardy friends make him feel. “Why,” he wonders, “do I feel so empty?” My bet was all that cocaine; whatever the reason, I didn’t much care. I just wanted to smack the guy.
That said, this is an entertaining and cautionary tale, well worth your time. I can imagine parents out there who might give it to children pondering Wall Street careers. Of course, should it excite rather than frighten your budding Bud Fox, you might consider urging an alternative career path.
However, with real passion and honesty you can succeed in everything, also in Wall Street.
Click green for further info
Source: NYT
___________________
This is an entertaining and cautionary tale, well worth your time
I can imagine parents out there who might give it to children pondering Wall Street careers
Of course, should it excite rather than frighten your budding Bud Fox,
you might consider urging an alternative career path
However, with real passion and honesty you can succeed in everything, also in Wall Street
Click green for further info
Remember Bud Fox, the callow, young go-getter portrayed by Charlie Sheen in the 1987 movie “Wall Street”? Ever wonder how Bud’s career would have gone had he lasted another 10 years or so? Frankly, me neither.
But I suspect that things might have turned out almost as badly as they did for Turney Duff, a callow, young hedge fund trader who writes of his own noteworthy flameout in a bracing new Wall Street memoir called “The Buy Side” (Crown Business, 320 pages).
Mr. Duff’s tale calls to mind books like “Bright Lights, Big City,” by Jay McInerney, and especially “Liar’s Poker,” by Michael Lewis — stories of wide-eyed newcomers confronted by the temptations of moneyed New York. As literature, it doesn’t rise to the same class. As spectacle, it easily trumps both.
Mr. Duff makes millions, pays brand-name rappers to perform at his birthday party and dates a glamorous singer. But instead of riding into the sunset, he ends up retreating to sumptuous hotel suites where he inhales piles of cocaine, swills Scotch and watches pornographic movies. By himself.
Along the way, by his own admission, Mr. Duff becomes a caricature of the arrogant young Wall Streeter that so much of America loves to hate. If “The Buy Side” is remembered for any single line, it will be the remark that Mr. Duff says he uttered one evening upon confronting a lengthy queue outside a downtown Manhattan nightclub. Barging past the bouncers, he announces: “I don’t stand in lines. I snort them.” He and his trading pals think the joke so hilarious that they later emblazon it on souvenir T-shirts.
A middle-class kid from Maine, Mr. Duff began his career in 1994, in the early years of the hedge fund era, when he arrived in New York as a fresh-faced journalism graduate from Ohio University. Unable to land a job in writing or anything else, he reaches out to an uncle on Wall Street, who arranges interviews with several of the big firms. Mr. Duff aces the one at Morgan Stanley by recapping the previous evening’s episode of “Melrose Place,” the interviewer’s favorite television show. Hey, so much for that diploma.
One of the book’s strengths is Mr. Duff’s self-awareness. He realizes what he became. At Morgan, where he spent five years as a desk assistant, he knew little about Wall Street and learned even less about investing, acknowledging that he was too lazy to read research. Where he thrived was after the closing bell, when he proved adept at staging office parties and leading his peers — and a few higher-ups — through the assorted watering holes he frequented.
His light-bulb moment comes one evening when he successfully introduces a group of pretty girls to a senior trader. “I realize I’m in my element,” he writes. “I feel in total control and at ease. Only in looking back can I see how seminal this moment is. I would never be able to stand out at my job. There I’m out-experienced, out-connected and out-degreed. But here, with a glass in hand, I have as good a chance as any to move and shake.”
Mr. Duff puts his social skills to good use when, unable to secure an actual trading job at Morgan, he moves to an up-and-coming hedge fund, the Galleon Group — the same Galleon Group that was eviscerated in Wall Street’s continuing insider-trading scandals.
As a “buy side” trader executing transactions for senior portfolio managers, he is a conduit to the “sell side” traders at the big Wall Street firms who actually carry out his trades. Mr. Duff’s decisions on how and where to allocate his trades make him of crucial importance to the sell-side traders, who earn commissions on them.
It is Mr. Duff’s portrait of how sell-side traders ardently romance their buy-side counterparts that is probably the book’s most memorable contribution to Wall Street literature. He takes everything they offer: booze, dinners, Super Bowl tickets, private jets to Las Vegas weekends, parties in South Beach, lots of cocaine and, while at Galleon, scads of tips that move stocks. One of his mentors, a trader named David Slaine, ended up cooperating with the government’s Galleon investigation, but the scandal proves peripheral to the book.
WHAT stays with you is the portrait of a young man who seemingly never met a temptation he could deny.
For a time, Mr. Duff rides high, earning million-dollar bonus checks, renting a TriBeCa triplex with drop-dead Hudson River views and eventually adding a girlfriend, a Long Island manse and a beloved daughter. But the drugs soon take hold, and his long downward spiral grows uglier at every turn. After two stays in rehabilitation facilities, he loses the trading job he took after leaving Galleon, then his relationship and the real estate. The financial crisis does the rest, and today, Mr. Duff says, he tries to make a living writing from a tiny apartment in Long Island City, Queens.
Mr. Duff proves a fine wordsmith; his prose is smooth, lean and rhythmic. Where the book misfires — badly — is when he tries to plumb the existential side of things, or to employ literary artifice. There is one cringe-worthy chapter about his girlfriend, where he begins every few paragraphs with a letter, “I,” then “I L,” and so on, which of course ends up spelling out “I LOVE YOU.” It made me want to throw the book across the room.
Almost as bad is his “Bud Fox” moment, the obligatory episode in these lost-in-Manhattan memoirs when the protagonist must replicate that memorable scene from Wall Street when Charlie Sheen, having sacrificed himself to Gordon Gekko and the gods of capitalism, stares out at the Manhattan skyline and asks, plaintively, “Who am I?”
Mr. Duff’s moment comes the morning after his 34th birthday party, when he wakes on the roof deck of his triplex, fires up a marijuana cigarette and realizes how hollow all his newfound wealth and party-hardy friends make him feel. “Why,” he wonders, “do I feel so empty?” My bet was all that cocaine; whatever the reason, I didn’t much care. I just wanted to smack the guy.
That said, this is an entertaining and cautionary tale, well worth your time. I can imagine parents out there who might give it to children pondering Wall Street careers. Of course, should it excite rather than frighten your budding Bud Fox, you might consider urging an alternative career path.
However, with real passion and honesty you can succeed in everything, also in Wall Street.
Click green for further info
Source: NYT
___________________
Article 1 below
I Had No Savings at 40, but I Retired Well by 60
&
Article 2 below
What Is a Certified Financial Adviser - 15 Types & Credential
These 2 articles & the detailed advice how to with whom,
will inspire you to start saving and investing for your better future
Before you start, (1) find a competent Certified Investment Counselor of a suitable type for your needs (not just any adviser), and (2) create with that counselor a plan for your situation no matter what your age.
There is a plan for every situation. All you need to start is below.
Article 2 below you must study, analyze & comprehend in a full manner - seek counseling to understand it if necessary. Remember a good piece of advice: "Multiple counselors bring success" (The Bible).
Listen to many, draw conclusions when you feel you are strong enough in the knowledge.
Do NOT rush to your decision, sleep on it, think of it a few days.
Practice your learning with an additional counselor (free, no fee - see below).
Another old advice says "Listen to others but decide yourself". It is a good way to behave.
DO NOT START INVESTING before you understand fully = 100 % what you are doing, what your investment counselor tells you and why. Interview, check the background and track record AND ask to prove that your chosen Investmenet Counselor/Adviser has a certification "forcing" him/her to look what is GOOD for you and not what you could buy.
Use as much as you can a FREE, volunteer counselor to teach you the principles - not necessarily the investment itself.
If the free counselor is a REAL expert and qualified (base on the Article 2 information below) then you may decide to work with him. BUT: make arrangement then to have him getting paid 10 - 15 % of your net invesment income for his competent advice.
LAST BUT not least: contact STAF, Inc. - we can probably confirm your choice of professional help competent or incompetent for you. STAF, Inc. is a not-for-profit organization and expects volunteer donation for its services.
Look for free business advisers in these 2 sources. Youl find connections (nationwide) in SCORR = Service Corps of Retired Executives
(1) click green: SCORE Association - Wikipedia, the free encyclopediaen.wikipedia.org/wiki/SCORE_Association
From Wikipedia, the free encyclopedia ... Service Corps of Retired Executives, but is now recognized as SCORE, "Counselors to ... formed, the organization expanded its services to offer workshops and seminars on a variety of business topics.
(2) click green: Free Small Business Advice | How-to Resources | Tools | Templates ...www.score.org/
Score.org. Counselors to America's Small Business ... Get Free Local Mentoring. Connect with a local SCORE mentor to get free small business advice. Addres
A Certified Counselor HAS to guide you in what is GOOD for you and for your situation,
the other advisers counsel you mostly to invest in anything you could. There is a big difference.
Study well both related articles below - they can turn you into a millionaire
I Had No Savings at 40, but I Retired Well by 60
&
Article 2 below
What Is a Certified Financial Adviser - 15 Types & Credential
These 2 articles & the detailed advice how to with whom,
will inspire you to start saving and investing for your better future
Before you start, (1) find a competent Certified Investment Counselor of a suitable type for your needs (not just any adviser), and (2) create with that counselor a plan for your situation no matter what your age.
There is a plan for every situation. All you need to start is below.
Article 2 below you must study, analyze & comprehend in a full manner - seek counseling to understand it if necessary. Remember a good piece of advice: "Multiple counselors bring success" (The Bible).
Listen to many, draw conclusions when you feel you are strong enough in the knowledge.
Do NOT rush to your decision, sleep on it, think of it a few days.
Practice your learning with an additional counselor (free, no fee - see below).
Another old advice says "Listen to others but decide yourself". It is a good way to behave.
DO NOT START INVESTING before you understand fully = 100 % what you are doing, what your investment counselor tells you and why. Interview, check the background and track record AND ask to prove that your chosen Investmenet Counselor/Adviser has a certification "forcing" him/her to look what is GOOD for you and not what you could buy.
Use as much as you can a FREE, volunteer counselor to teach you the principles - not necessarily the investment itself.
If the free counselor is a REAL expert and qualified (base on the Article 2 information below) then you may decide to work with him. BUT: make arrangement then to have him getting paid 10 - 15 % of your net invesment income for his competent advice.
LAST BUT not least: contact STAF, Inc. - we can probably confirm your choice of professional help competent or incompetent for you. STAF, Inc. is a not-for-profit organization and expects volunteer donation for its services.
Look for free business advisers in these 2 sources. Youl find connections (nationwide) in SCORR = Service Corps of Retired Executives
(1) click green: SCORE Association - Wikipedia, the free encyclopediaen.wikipedia.org/wiki/SCORE_Association
From Wikipedia, the free encyclopedia ... Service Corps of Retired Executives, but is now recognized as SCORE, "Counselors to ... formed, the organization expanded its services to offer workshops and seminars on a variety of business topics.
(2) click green: Free Small Business Advice | How-to Resources | Tools | Templates ...www.score.org/
Score.org. Counselors to America's Small Business ... Get Free Local Mentoring. Connect with a local SCORE mentor to get free small business advice. Addres
A Certified Counselor HAS to guide you in what is GOOD for you and for your situation,
the other advisers counsel you mostly to invest in anything you could. There is a big difference.
Study well both related articles below - they can turn you into a millionaire
Article 1
This article is an example of someone who started at the age of 40 when still unmarried (married later).
You may be married and you could be in any age. With certain techniques it is never be too late to reach
a net-millionaire status and then live only on the income coming from that built-up investment capital.
I Had No Savings at 40, but I Retired by 60
I was living in Los Angeles. Had a great job at 40 and was not putting one penny away in savings. I was spending money faster than I was making it, living the single life. I knew every bar and restaurant along Hollywood Boulevard, and bartenders and waitresses knew me by name.
Now I'm living a comfortable retirement. What turned me around?
Reality. I noticed my co-workers and friends moving on with their lives. While I was stuck in a small apartment, they were getting married, buying homes and establishing a life beyond the nightclub. I knew I had to get serious and start saving.
I tore up all of my 13 credit cards
At the time I owed over $30,000 in credit card bills and my interest was over 19% on each card. Each card had a limit of $10,000. I cut them all up and started using a debit card.
I got on a budget
I created a budget. I paid off several cards in two years and reduced my expenses and saved over $900 a month. My income was $40,000 a year I was 40 which was a net of around $2,500 month. However, I charged everything. When I tore up my credit cards I put myself on strict budget: rent $440 per month, car note $275, and credit card $400 a month. I took all the extra cash and paid off my lowest balance credit card first, then second. I also put over 20% of my gross into the 401(k) and profit sharing programs and stock options at work.
I took advantage of my company's profit sharing and 401(k) options
Before I was 40, I never put any money away into our company's saving programs. I started putting the highest percentage allowable of my salary into the company's profit sharing and 401(k) program. Working for ABM (American Building Maintenance) I was also able to purchase stock at an employee discount rate of 20%, so I added that to my nest egg.
I purchased rental property
At 40, I was able to purchase my first rental property in Pennsylvania for $8,000. With my wife we paid cash for the house. As an old Victorian home split into three apartments it grosses over $1,500 a month. Within a few years, I built our rental income to over $85,000 a year including selling a few properties at a profit.
I married well
Before I turned 40 I had never been married, but meeting my wife was my best decision ever. My wife is thrifty and our combined incomes were well over $100,000 a year. With her spendthrift abilities we were able to pay off all of our credit card debts.
Being married to the right person with the same mindset has been my best investment by far.
We hired a financial advisor
We hired an expert to look at our plans for retiring when we were in our mid-fifties. She calculated our money and life goals, living expenses, health plans, and our level of risk. Her advice helped us build our stock and other investment income to prepare for retirement.
We were moderately aggressive investors and with her advice -- along with our international equities and other investments -- were able to build up a very good nest egg.
We downsized
In 2006, we downsized and sold our home in Pasadena, Calif. along with a few of our rental properties and moved to a less expensive area in the Republic of Panama. Between the current market and our pension, dividends, and rental income of about $70,000 per year, we are now retired and living comfortably within our means, with expenses that total only $34,000 per year.
*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.
This article is an example of someone who started at the age of 40 when still unmarried (married later).
You may be married and you could be in any age. With certain techniques it is never be too late to reach
a net-millionaire status and then live only on the income coming from that built-up investment capital.
I Had No Savings at 40, but I Retired by 60
I was living in Los Angeles. Had a great job at 40 and was not putting one penny away in savings. I was spending money faster than I was making it, living the single life. I knew every bar and restaurant along Hollywood Boulevard, and bartenders and waitresses knew me by name.
Now I'm living a comfortable retirement. What turned me around?
Reality. I noticed my co-workers and friends moving on with their lives. While I was stuck in a small apartment, they were getting married, buying homes and establishing a life beyond the nightclub. I knew I had to get serious and start saving.
I tore up all of my 13 credit cards
At the time I owed over $30,000 in credit card bills and my interest was over 19% on each card. Each card had a limit of $10,000. I cut them all up and started using a debit card.
I got on a budget
I created a budget. I paid off several cards in two years and reduced my expenses and saved over $900 a month. My income was $40,000 a year I was 40 which was a net of around $2,500 month. However, I charged everything. When I tore up my credit cards I put myself on strict budget: rent $440 per month, car note $275, and credit card $400 a month. I took all the extra cash and paid off my lowest balance credit card first, then second. I also put over 20% of my gross into the 401(k) and profit sharing programs and stock options at work.
I took advantage of my company's profit sharing and 401(k) options
Before I was 40, I never put any money away into our company's saving programs. I started putting the highest percentage allowable of my salary into the company's profit sharing and 401(k) program. Working for ABM (American Building Maintenance) I was also able to purchase stock at an employee discount rate of 20%, so I added that to my nest egg.
I purchased rental property
At 40, I was able to purchase my first rental property in Pennsylvania for $8,000. With my wife we paid cash for the house. As an old Victorian home split into three apartments it grosses over $1,500 a month. Within a few years, I built our rental income to over $85,000 a year including selling a few properties at a profit.
I married well
Before I turned 40 I had never been married, but meeting my wife was my best decision ever. My wife is thrifty and our combined incomes were well over $100,000 a year. With her spendthrift abilities we were able to pay off all of our credit card debts.
Being married to the right person with the same mindset has been my best investment by far.
We hired a financial advisor
We hired an expert to look at our plans for retiring when we were in our mid-fifties. She calculated our money and life goals, living expenses, health plans, and our level of risk. Her advice helped us build our stock and other investment income to prepare for retirement.
We were moderately aggressive investors and with her advice -- along with our international equities and other investments -- were able to build up a very good nest egg.
We downsized
In 2006, we downsized and sold our home in Pasadena, Calif. along with a few of our rental properties and moved to a less expensive area in the Republic of Panama. Between the current market and our pension, dividends, and rental income of about $70,000 per year, we are now retired and living comfortably within our means, with expenses that total only $34,000 per year.
*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.
Article 2
What Is a Certified Financial Advisor
15 Types & Credentials
Read more: http://www.moneycrashers.com/certified-financial-advisor-types/#ixzz2KXDk5IT4
Since prehistoric times, men have adorned themselves in paint, animal skins, and feathers to impress, intimidate, and influence their fellow humans. While people no longer wear such accoutrements, many, particularly those employed within the financial industry, continue to enhance their status by appending alphabetic symbols to their names, the psychic totems of a modern world. Of course, the value of such acronym symbols depends upon the recognition and understanding of their meaning by the viewer.
Just as ancient shamans guided our ancestors through the mysteries of the natural world, modern financial advisors seek to guide prospective investors through the complex and often dangerous world of modern personal finance. Some provide well-meaning, informed information, while others lead the sheep to the slaughter, so to speak. Understanding these common acronyms will help you identify competent investment advisors and distinguish true professionals from those who would merely have you believe they are.
Common Financial Credentials & DesignationsUnfortunately, the size of the market, the lack of liability of advisors for the results of their advice, the difficulty of confirming past performance, and insufficient regulatory supervision continue to attract unscrupulous people who often hide behind the facade of a “professional” credential. Many, but not all, advisors have professional designations attesting to their qualifications. However, the lack or presence of a title is not by itself sufficient reason to discard or select an advisor.
If possible, you should review the resume or biography of each prospective advisor – either via printed collateral material they provide or on a personal or company website – and review their expertise in light of your needs.
The following designations and explanations will help you understand what each acronym or title means, but should not be considered as evidence that the advisor is either competent or suited to your needs.
1. IAR (Investment Advisor Representative)
While this legal designation may be the easiest to acquire, requiring the successful passage of the Series 65 exam and the payment of a fee to the Securities and Exchange Commission (SEC), most recipients are former stockbrokers, insurance agents, or commercial bankers with extensive experience and other securities licenses, such as the Series 7. They are subject to the regulations of the SEC.
2. RIA (Registered Investment Advisor)
Technically, this designation refers to the firm with which an investment advisor representative is associated – though it may be used to refer to an individual who is technically an IAR.
3. IA (Investment Advisor) and FIA (Financial Investment Advisor)
These are slang acronyms that have no official meaning or standing with any accreditation body, but may be used by someone who is licensed as an IAR.
4. CFP (Certified Financial Planner)
CFP, a designation conferred by the Certified Financial Planner Board of Standards, Inc., has become increasingly popular in recent years, particularly by those who provide fee-only advisory services to individuals or sell financial products which are frequently coordinated with other components of personal finance. Certification is rigorous; it involves a lengthy education requirement and follows the successful passage of multiple exams completed over a two-day period dealing with personal finance subjects, including investments, insurance, and estate planning. Candidates are required to possess a bachelor’s degree and three years of relevant experience, and must adhere to a code of ethics.
5. CFS (Certified Fund Specialist) or CFMC (Chartered Mutual Fund Counselor)
Professionals who earn the CFS title have completed a portion of the CFP program and focus on assisting clients with setting up investment portfolios for retirement and estate planning. However, a bachelor’s degree is not required. A CFS is sometimes referred to as a Chartered Mutual Fund Counselor (CMFC).
6. CTFA (Certified Trust and Financial Advisor)
The American Bankers Association confers CTFA certifications to trust and wealth management professionals who offer fee-based services. To qualify for CTFA certification, individuals must meet specific levels of experience (depending on their level of education), pass a comprehensive exam, and agree to abide by a code of ethics.
7. CLU (Chartered Life Underwriter)
The CLU is a designation for life insurance agents bestowed by the American College. It requires three years of business experience (two if the candidate holds an undergraduate degree), passage of specialized tests across a range of life insurance topics, and adherence to an industry code of ethics.
8. REBC (Registered Employee Benefits Consultant) and RHU (Registered Health Underwriter)
These designations are also bestowed by the American College to insurance agents. Candidates must have three years of business experience (two if they hold an undergraduate degree), pass a series of exams, and adhere to an industry code of ethics.
9. ChFC (Chartered Financial Consultant)
The ChFC is a financial planning designation primarily for the insurance industry, and is also awarded by the American College. Not nearly as difficult to attain as the CFP, it does address a range of financial planning topics and requires the passage of multiple exams. Candidates must possess three years of business experience (two if they hold an undergraduate degree) and abide by a code of ethics.
10. CPA (Certified Public Accountant)
The CPA designation is granted by individual state boards of the American Institute of Certified Public Accountants, and is considered to have the most rigorous requirements of any professional designation, which vary by state. CPAs assume personal liability for their work as accountants, auditors, and tax advisors.
11. PFS (Personal Financial Specialist)
A graduate of the American Institute of CPAs Personal Financial Planning program allows CPAs to demonstrate their knowledge and expertise in personal financial planning. Only certified public accountants can receive the PFS designation. However, the personal liability they assume as accountants does not extend to the recommendations they make regarding investments.
12. PFA (Personal Financial Advisor)
This is a new designation created by the National Association of Personal Financial Advisors, a competitor of the Certified Financial Board of Standards, Inc. which issues the CFP designation. The PFA is for fee-only planners who have at least five years experience and have passed a series of exams to qualify for the title.
13. RR (Registered Representative)
This is the basic legal title given by the SEC to those who have passed the Series 7 licensing exam and are regulated by the Financial Industry Regulatory Authority (FINRA). Anyone who sells securities must carry the Series 7 license.
14. CFA (Chartered Financial Analyst)
Considered the most exclusive and most difficult title to achieve, the CFA designation requires multiple monitored exams, working as an investment professional for a minimum of four years, and committing to a code of ethics and standards of professional conduct. This title is bestowed by the CFA Institute, founded in 1959. However, it is unlikely that an individual investor would deal with a CFA. CFAs are generally research analysts employed by investment banks, mutual fund companies, and securities firms. They typically specialize in a particular industry and the companies operating within that industry.
15. CIC (Chartered Investment Counselor)
In 1975, the Investment Advisor Association (IAA) working with the Institute of Chartered Financial Analysts created the title of chartered investment counselor. This recognizes the special qualifications of persons employed by IAA member firms whose primary duties are to manage investment portfolios or provide counseling to such managers. Candidates for the CIC designation must hold the CFA designation, have a minimum of five years experience in performing investment counseling and portfolio management responsibilities, be employed by an IAA member firm, provide work and character references, endorse the IAA’s standards of practice, and provide professional, ethical information.
Most credible advisors will have one or more of these designations, depending upon their experience and the specific components of personal finance with which they work. However, there are new designations and accrediting organizations that pop up from time to time, some with no other intent than to defraud the advisor seeking the designation, and some with the intent to confuse and even deceive potential clients – especially those 55 years of age and older.
Picking Your Advisor
The vast majority of financial advisors are trustworthy, ethical, and understand their fiduciary duties to their clients. Despite such examples as Bernie Madoff and Anthony Fields, hundreds of millions of dollars of investment transactions occur every day in the United States to the satisfaction of both buyers and sellers.
The risk of a financial advisor is not that he or she will intentionally steal your money, but will lose it through misunderstanding your investment needs, carelessness, or simple ineptness. For these reasons, it’s important to do your own due diligence to determine which advisor can best address your goals.
1. Understand Your Own Financial Needs
You are unlikely to be successful if you do not have a goal in mind with which to measure your progress. Are you interested in advice to plan your estate, invest your savings, or protect your property against risk? Most people have a variety of financial needs, not all of which can be addressed at the same time, and some that may even be opposing.
Before you select an advisor to help you, first identify and prioritize your goals. By clearly expressing your needs, including the amount of your investments, the expected return on the investments, the amount of risk you are willing to assume, and the time frame with which you are working, you can better see whether the prospective advisor is the right person to help you. Your advisor’s commitment to your success should be as solid as your willingness to trust his or her advice.
2. Check Credentials
It is amazing how often the average person is willing to simply accept a paper document or personal statement as proof of accomplishment. While most advisors are honest, it’s always best to be safe. If your prospective advisor has an industry designation, verify this with the issuing authority. Confirm the training that he or she received and, while you’re investigating, ask about any complaints which the authority may have received about the advisor.
3. Interview Your Candidates
Working with an advisor is akin to taking lion training lessons from someone standing outside the cage: The risks are all yours. If the advice is bad, the lion eats you, and the advisor finds another client.
While a personal meeting doesn’t guarantee an accurate assessment, it can allow you to form a more thorough impression than what the Internet and a phone conversation can provide. A person using an online dating service would not marry his or her matched partner without a face-to-face meeting. Nor should you turn over your financial future to a virtual stranger without testing your online perceptions with a face-to-face encounter.
Final WordWhen choosing a financial advisor, remember that acronyms, designations, and titles are just a collection of letters and words. While their presence can guide your research, they will not replace it.
If you are interested in using a financial advisor, the best place to begin your search is with your employer’s human resources department. Many companies offer employees a wealth of insurance and investment options ranging from health insurance to mutual funds in 401k plans, and they retain professional advisors to help their employees make the most suitable choices. In many cases, the companies will subsidize the cost of the advisors if there is a fee. Friends and business colleagues can also be good sources for referrals, many of whom have previously sought financial counseling, estate planning, or investment advice.
Your choice of an advisor should be made upon the solid, verifiable recommendations of past and current clients and your sense that he or she understands you, your needs, and your limits.
What has been your experience with financial advisors and titles?
Source:
Categories: Investing, Money Management
Michael Lewis
Michael R. Lewis is a retired corporate executive and entrepreneur. During his 40+ year career, Lewis created and sold ten different companies ranging from oil exploration to healthcare software. He has also been a Registered Investment Adviser with the SEC, a Principal of one of the larger management consulting firms in the country, and a Senior Vice President of the largest not-for-profit health insurer in the United States.
Learn more About Money Crashers - including co-founders Andrew Schrage and Gyutae Park.
Related Articles- study these articles below
If the link has expired search the internet with the same title
Read more: http://www.moneycrashers.com/certified-financial-advisor-types/#ixzz2KX4k0vb5
DO NOT START INVESTING BEFORE
YOU HAVE TAKEN THESE THREE STEPS
(1) you have studied well both articles above &
(2) studied all their links information & (3) studied all additional article links
______________________________________
What Is a Certified Financial Advisor
15 Types & Credentials
Read more: http://www.moneycrashers.com/certified-financial-advisor-types/#ixzz2KXDk5IT4
Since prehistoric times, men have adorned themselves in paint, animal skins, and feathers to impress, intimidate, and influence their fellow humans. While people no longer wear such accoutrements, many, particularly those employed within the financial industry, continue to enhance their status by appending alphabetic symbols to their names, the psychic totems of a modern world. Of course, the value of such acronym symbols depends upon the recognition and understanding of their meaning by the viewer.
Just as ancient shamans guided our ancestors through the mysteries of the natural world, modern financial advisors seek to guide prospective investors through the complex and often dangerous world of modern personal finance. Some provide well-meaning, informed information, while others lead the sheep to the slaughter, so to speak. Understanding these common acronyms will help you identify competent investment advisors and distinguish true professionals from those who would merely have you believe they are.
Common Financial Credentials & DesignationsUnfortunately, the size of the market, the lack of liability of advisors for the results of their advice, the difficulty of confirming past performance, and insufficient regulatory supervision continue to attract unscrupulous people who often hide behind the facade of a “professional” credential. Many, but not all, advisors have professional designations attesting to their qualifications. However, the lack or presence of a title is not by itself sufficient reason to discard or select an advisor.
If possible, you should review the resume or biography of each prospective advisor – either via printed collateral material they provide or on a personal or company website – and review their expertise in light of your needs.
The following designations and explanations will help you understand what each acronym or title means, but should not be considered as evidence that the advisor is either competent or suited to your needs.
1. IAR (Investment Advisor Representative)
While this legal designation may be the easiest to acquire, requiring the successful passage of the Series 65 exam and the payment of a fee to the Securities and Exchange Commission (SEC), most recipients are former stockbrokers, insurance agents, or commercial bankers with extensive experience and other securities licenses, such as the Series 7. They are subject to the regulations of the SEC.
2. RIA (Registered Investment Advisor)
Technically, this designation refers to the firm with which an investment advisor representative is associated – though it may be used to refer to an individual who is technically an IAR.
3. IA (Investment Advisor) and FIA (Financial Investment Advisor)
These are slang acronyms that have no official meaning or standing with any accreditation body, but may be used by someone who is licensed as an IAR.
4. CFP (Certified Financial Planner)
CFP, a designation conferred by the Certified Financial Planner Board of Standards, Inc., has become increasingly popular in recent years, particularly by those who provide fee-only advisory services to individuals or sell financial products which are frequently coordinated with other components of personal finance. Certification is rigorous; it involves a lengthy education requirement and follows the successful passage of multiple exams completed over a two-day period dealing with personal finance subjects, including investments, insurance, and estate planning. Candidates are required to possess a bachelor’s degree and three years of relevant experience, and must adhere to a code of ethics.
5. CFS (Certified Fund Specialist) or CFMC (Chartered Mutual Fund Counselor)
Professionals who earn the CFS title have completed a portion of the CFP program and focus on assisting clients with setting up investment portfolios for retirement and estate planning. However, a bachelor’s degree is not required. A CFS is sometimes referred to as a Chartered Mutual Fund Counselor (CMFC).
6. CTFA (Certified Trust and Financial Advisor)
The American Bankers Association confers CTFA certifications to trust and wealth management professionals who offer fee-based services. To qualify for CTFA certification, individuals must meet specific levels of experience (depending on their level of education), pass a comprehensive exam, and agree to abide by a code of ethics.
7. CLU (Chartered Life Underwriter)
The CLU is a designation for life insurance agents bestowed by the American College. It requires three years of business experience (two if the candidate holds an undergraduate degree), passage of specialized tests across a range of life insurance topics, and adherence to an industry code of ethics.
8. REBC (Registered Employee Benefits Consultant) and RHU (Registered Health Underwriter)
These designations are also bestowed by the American College to insurance agents. Candidates must have three years of business experience (two if they hold an undergraduate degree), pass a series of exams, and adhere to an industry code of ethics.
9. ChFC (Chartered Financial Consultant)
The ChFC is a financial planning designation primarily for the insurance industry, and is also awarded by the American College. Not nearly as difficult to attain as the CFP, it does address a range of financial planning topics and requires the passage of multiple exams. Candidates must possess three years of business experience (two if they hold an undergraduate degree) and abide by a code of ethics.
10. CPA (Certified Public Accountant)
The CPA designation is granted by individual state boards of the American Institute of Certified Public Accountants, and is considered to have the most rigorous requirements of any professional designation, which vary by state. CPAs assume personal liability for their work as accountants, auditors, and tax advisors.
11. PFS (Personal Financial Specialist)
A graduate of the American Institute of CPAs Personal Financial Planning program allows CPAs to demonstrate their knowledge and expertise in personal financial planning. Only certified public accountants can receive the PFS designation. However, the personal liability they assume as accountants does not extend to the recommendations they make regarding investments.
12. PFA (Personal Financial Advisor)
This is a new designation created by the National Association of Personal Financial Advisors, a competitor of the Certified Financial Board of Standards, Inc. which issues the CFP designation. The PFA is for fee-only planners who have at least five years experience and have passed a series of exams to qualify for the title.
13. RR (Registered Representative)
This is the basic legal title given by the SEC to those who have passed the Series 7 licensing exam and are regulated by the Financial Industry Regulatory Authority (FINRA). Anyone who sells securities must carry the Series 7 license.
14. CFA (Chartered Financial Analyst)
Considered the most exclusive and most difficult title to achieve, the CFA designation requires multiple monitored exams, working as an investment professional for a minimum of four years, and committing to a code of ethics and standards of professional conduct. This title is bestowed by the CFA Institute, founded in 1959. However, it is unlikely that an individual investor would deal with a CFA. CFAs are generally research analysts employed by investment banks, mutual fund companies, and securities firms. They typically specialize in a particular industry and the companies operating within that industry.
15. CIC (Chartered Investment Counselor)
In 1975, the Investment Advisor Association (IAA) working with the Institute of Chartered Financial Analysts created the title of chartered investment counselor. This recognizes the special qualifications of persons employed by IAA member firms whose primary duties are to manage investment portfolios or provide counseling to such managers. Candidates for the CIC designation must hold the CFA designation, have a minimum of five years experience in performing investment counseling and portfolio management responsibilities, be employed by an IAA member firm, provide work and character references, endorse the IAA’s standards of practice, and provide professional, ethical information.
Most credible advisors will have one or more of these designations, depending upon their experience and the specific components of personal finance with which they work. However, there are new designations and accrediting organizations that pop up from time to time, some with no other intent than to defraud the advisor seeking the designation, and some with the intent to confuse and even deceive potential clients – especially those 55 years of age and older.
Picking Your Advisor
The vast majority of financial advisors are trustworthy, ethical, and understand their fiduciary duties to their clients. Despite such examples as Bernie Madoff and Anthony Fields, hundreds of millions of dollars of investment transactions occur every day in the United States to the satisfaction of both buyers and sellers.
The risk of a financial advisor is not that he or she will intentionally steal your money, but will lose it through misunderstanding your investment needs, carelessness, or simple ineptness. For these reasons, it’s important to do your own due diligence to determine which advisor can best address your goals.
1. Understand Your Own Financial Needs
You are unlikely to be successful if you do not have a goal in mind with which to measure your progress. Are you interested in advice to plan your estate, invest your savings, or protect your property against risk? Most people have a variety of financial needs, not all of which can be addressed at the same time, and some that may even be opposing.
Before you select an advisor to help you, first identify and prioritize your goals. By clearly expressing your needs, including the amount of your investments, the expected return on the investments, the amount of risk you are willing to assume, and the time frame with which you are working, you can better see whether the prospective advisor is the right person to help you. Your advisor’s commitment to your success should be as solid as your willingness to trust his or her advice.
2. Check Credentials
It is amazing how often the average person is willing to simply accept a paper document or personal statement as proof of accomplishment. While most advisors are honest, it’s always best to be safe. If your prospective advisor has an industry designation, verify this with the issuing authority. Confirm the training that he or she received and, while you’re investigating, ask about any complaints which the authority may have received about the advisor.
3. Interview Your Candidates
Working with an advisor is akin to taking lion training lessons from someone standing outside the cage: The risks are all yours. If the advice is bad, the lion eats you, and the advisor finds another client.
While a personal meeting doesn’t guarantee an accurate assessment, it can allow you to form a more thorough impression than what the Internet and a phone conversation can provide. A person using an online dating service would not marry his or her matched partner without a face-to-face meeting. Nor should you turn over your financial future to a virtual stranger without testing your online perceptions with a face-to-face encounter.
Final WordWhen choosing a financial advisor, remember that acronyms, designations, and titles are just a collection of letters and words. While their presence can guide your research, they will not replace it.
If you are interested in using a financial advisor, the best place to begin your search is with your employer’s human resources department. Many companies offer employees a wealth of insurance and investment options ranging from health insurance to mutual funds in 401k plans, and they retain professional advisors to help their employees make the most suitable choices. In many cases, the companies will subsidize the cost of the advisors if there is a fee. Friends and business colleagues can also be good sources for referrals, many of whom have previously sought financial counseling, estate planning, or investment advice.
Your choice of an advisor should be made upon the solid, verifiable recommendations of past and current clients and your sense that he or she understands you, your needs, and your limits.
What has been your experience with financial advisors and titles?
Source:
Categories: Investing, Money Management
Michael Lewis
Michael R. Lewis is a retired corporate executive and entrepreneur. During his 40+ year career, Lewis created and sold ten different companies ranging from oil exploration to healthcare software. He has also been a Registered Investment Adviser with the SEC, a Principal of one of the larger management consulting firms in the country, and a Senior Vice President of the largest not-for-profit health insurer in the United States.
Learn more About Money Crashers - including co-founders Andrew Schrage and Gyutae Park.
Related Articles- study these articles below
If the link has expired search the internet with the same title
- Certified Financial Planner Certification – How to Become a CFP
- Chartered Financial Consultant (ChFC) – Requirements, ChFC vs CFP
- How to Become a Financial Advisor – Career Challenges & Rewards
- Certified Employee Benefits Specialist (CEBS) Certification – Designation Requirements
- How to Find & Choose a Financial Advisor – 10 Questions to Ask Yourself First
- Chartered Life Underwriter (CLU) – Insurance Designation Requirements
Read more: http://www.moneycrashers.com/certified-financial-advisor-types/#ixzz2KX4k0vb5
DO NOT START INVESTING BEFORE
YOU HAVE TAKEN THESE THREE STEPS
(1) you have studied well both articles above &
(2) studied all their links information & (3) studied all additional article links
______________________________________
The ABCs of Investors' DNA
Is your investing style bred in the bone?
DNA – Deoxyribonucleic acid is a molecule that encodes the genetic instructions used in the development and functioning of all known living organisms and many viruses.
click: Wikipedia
Some people become value investors. Some might be born that way.
Consider Benjamin Graham click: Benjamin Graham, Warren Buffett's mentor and the author of "Security Analysis" click: Security Analysis and "The Intelligent Investor" click: The Intelligent Investor:
Graham's widowed mother was a small-time speculator; she was wiped out during the Panic of 1907
click: Panic of 1907 , when he was 13 years old.
The Panic of 1907 – also known as the 1907 Bankers' Panic or Knickerbocker Crisis click: Knickerbocker
– was a United States financial crisis that took place when the New York Stock Exchange fell almost 50% from its peak the previous year. click: Wikipedia
Graham never forgot the "humiliating" moment in his childhood when his mother sent him to cash a check and the bank teller asked the manager if Mrs. Graham was "good for five dollars."
Graham grew up to favor companies so universally despised by investors that the stocks were, as he liked to say, "worth more dead than alive." He resoundingly beat the market over his multidecade investing career.
Or take the late Sir John Templeton click: John Templeton, who grew up the son of a country lawyer in Winchester, Tenn. Templeton's father also was a speculator, trading cotton futures. He arrived home one day and told his young sons, "Boys, we've lost it all; we're ruined." Templeton worked odd jobs to scrounge his way through college and graduate school.
In 1939, at age 27, Templeton told his broker to buy him $100 worth of every listed U.S. stock trading for $1 a share or less; he quadrupled his money in four years.
"People are always asking me where the [investing] outlook is good, but that's the wrong question," Templeton once said. "The right question is: Where is the outlook most miserable?"
Their experiences might have shaped Graham and Templeton to favor cheap "value" stocks over fast-moving "growth" stocks. But that preference might also have been encoded in their genes.
In a speech at Babson College in 2010, the renowned value investor Seth Klarman remarked that research on fruit flies showed that most of them will swarm toward a light—but that a small minority appear to be genetically programmed to stay away from it.
Mr. Klarman, president of the Boston-based Baupost Group, which manages $26 billion in hedge-fund assets, jokingly called these flies "tiny contrarians," the insect equivalents of "deep value investors."
He went on to speculate that most people might possess "a dominant gene" for chasing hot performance and overhyped assets, while only a minority have "the recessive value gene" that confers a patient preference for whatever is battered and unpopular.
Mr. Klarman told me this past week that he still holds the same view.
click: A new study finds that many investors may in fact have a genetic predisposition to hunt for bargains in the stock market—although the environment you grew up in also powerfully shapes the kind of investor you become.
In the study, three economists— Henrik Cronqvist and Frank Yu of China Europe International Business School in Shanghai and Stephan Siegel of the University of Washington—examined the genetic makeup and investment portfolios of 35,000 twins in Sweden.
click: Value versus Growth Investing: Why Do Different Investors Have
Identical twins share 100% of their DNA, while fraternal twins share about the same amount as brothers and sisters.
The researchers compared the similarity of the portfolios held by identical twins and by fraternal twins. That enabled the economists to estimate the extent to which the same combinations of genes were associated with similar portfolios.
The analysis shows that the average stock held by these investors traded at a price/earnings ratio of 23 times. Only a 10th of the investors—call them "deep-value hunters"—held stocks with an average P/E of 11.6 or lower.
One quarter of all the investors—hard-core growth seekers—held stocks trading at an average of 28.6 times earnings or higher.
The study's findings are relatively precise because its sample of investors is large and because Swedish tax law required complete disclosure of individual investors' holdings until recently.
According to the study, up to 24% of the differences in the degree to which investors favor value or growth stocks can be explained by click: variations in their genetic code.
It appears that favoring cheap value stocks or fast-moving growth stocks isn't just a preference; "it is at least partly an innate tendency," says Prof. Siegel.
Environmental influences also help explain the "tilt" toward value or growth investing, the researchers found. For example, if the economy was in a severe recession when an investor was between the ages of 18 and 25, or the investor's parents were relatively poor, he is more likely to prefer investing in cheap stocks.
Genoeconomists, who study such stuff, haven't yet identified the specific variations that might work as "value genes."
click: Genoeconomics: Is Our Financial Future In Our Chromosomes?www.science20.com.
But the new findings suggest that you should ask financial advisers and investment managers: What adversity have you had to overcome in your life? And what does being poor mean to you?
After all, a financial adviser or investment manager who has never overcome a serious obstacle might not have what it takes to hold on to cheap stocks when they get a lot cheaper in a hurry. A value investor who can't withstand pain isn't a value investor at all.
click: Value versus Growth Investing: Why Do Different Investors Have ...papers.ssrn.com/sol3/papers.cfm?abstract_id...Social Science Research...
by H Cronqvist - 2013 - Related articles
Nov 7, 2013 - Value versus Growth Investing: Why Do Different Investors Have Different Styles? ... explain an investor's style, i.e., the value versus growthorientation of ... Cronqvist, Henrik and Siegel, Stephan and Yu, Frank, Value versus ...
Is your investing style bred in the bone?
DNA – Deoxyribonucleic acid is a molecule that encodes the genetic instructions used in the development and functioning of all known living organisms and many viruses.
click: Wikipedia
Some people become value investors. Some might be born that way.
Consider Benjamin Graham click: Benjamin Graham, Warren Buffett's mentor and the author of "Security Analysis" click: Security Analysis and "The Intelligent Investor" click: The Intelligent Investor:
Graham's widowed mother was a small-time speculator; she was wiped out during the Panic of 1907
click: Panic of 1907 , when he was 13 years old.
The Panic of 1907 – also known as the 1907 Bankers' Panic or Knickerbocker Crisis click: Knickerbocker
– was a United States financial crisis that took place when the New York Stock Exchange fell almost 50% from its peak the previous year. click: Wikipedia
Graham never forgot the "humiliating" moment in his childhood when his mother sent him to cash a check and the bank teller asked the manager if Mrs. Graham was "good for five dollars."
Graham grew up to favor companies so universally despised by investors that the stocks were, as he liked to say, "worth more dead than alive." He resoundingly beat the market over his multidecade investing career.
Or take the late Sir John Templeton click: John Templeton, who grew up the son of a country lawyer in Winchester, Tenn. Templeton's father also was a speculator, trading cotton futures. He arrived home one day and told his young sons, "Boys, we've lost it all; we're ruined." Templeton worked odd jobs to scrounge his way through college and graduate school.
In 1939, at age 27, Templeton told his broker to buy him $100 worth of every listed U.S. stock trading for $1 a share or less; he quadrupled his money in four years.
"People are always asking me where the [investing] outlook is good, but that's the wrong question," Templeton once said. "The right question is: Where is the outlook most miserable?"
Their experiences might have shaped Graham and Templeton to favor cheap "value" stocks over fast-moving "growth" stocks. But that preference might also have been encoded in their genes.
In a speech at Babson College in 2010, the renowned value investor Seth Klarman remarked that research on fruit flies showed that most of them will swarm toward a light—but that a small minority appear to be genetically programmed to stay away from it.
Mr. Klarman, president of the Boston-based Baupost Group, which manages $26 billion in hedge-fund assets, jokingly called these flies "tiny contrarians," the insect equivalents of "deep value investors."
He went on to speculate that most people might possess "a dominant gene" for chasing hot performance and overhyped assets, while only a minority have "the recessive value gene" that confers a patient preference for whatever is battered and unpopular.
Mr. Klarman told me this past week that he still holds the same view.
click: A new study finds that many investors may in fact have a genetic predisposition to hunt for bargains in the stock market—although the environment you grew up in also powerfully shapes the kind of investor you become.
In the study, three economists— Henrik Cronqvist and Frank Yu of China Europe International Business School in Shanghai and Stephan Siegel of the University of Washington—examined the genetic makeup and investment portfolios of 35,000 twins in Sweden.
click: Value versus Growth Investing: Why Do Different Investors Have
Identical twins share 100% of their DNA, while fraternal twins share about the same amount as brothers and sisters.
The researchers compared the similarity of the portfolios held by identical twins and by fraternal twins. That enabled the economists to estimate the extent to which the same combinations of genes were associated with similar portfolios.
The analysis shows that the average stock held by these investors traded at a price/earnings ratio of 23 times. Only a 10th of the investors—call them "deep-value hunters"—held stocks with an average P/E of 11.6 or lower.
One quarter of all the investors—hard-core growth seekers—held stocks trading at an average of 28.6 times earnings or higher.
The study's findings are relatively precise because its sample of investors is large and because Swedish tax law required complete disclosure of individual investors' holdings until recently.
According to the study, up to 24% of the differences in the degree to which investors favor value or growth stocks can be explained by click: variations in their genetic code.
It appears that favoring cheap value stocks or fast-moving growth stocks isn't just a preference; "it is at least partly an innate tendency," says Prof. Siegel.
Environmental influences also help explain the "tilt" toward value or growth investing, the researchers found. For example, if the economy was in a severe recession when an investor was between the ages of 18 and 25, or the investor's parents were relatively poor, he is more likely to prefer investing in cheap stocks.
Genoeconomists, who study such stuff, haven't yet identified the specific variations that might work as "value genes."
click: Genoeconomics: Is Our Financial Future In Our Chromosomes?www.science20.com.
But the new findings suggest that you should ask financial advisers and investment managers: What adversity have you had to overcome in your life? And what does being poor mean to you?
After all, a financial adviser or investment manager who has never overcome a serious obstacle might not have what it takes to hold on to cheap stocks when they get a lot cheaper in a hurry. A value investor who can't withstand pain isn't a value investor at all.
click: Value versus Growth Investing: Why Do Different Investors Have ...papers.ssrn.com/sol3/papers.cfm?abstract_id...Social Science Research...
by H Cronqvist - 2013 - Related articles
Nov 7, 2013 - Value versus Growth Investing: Why Do Different Investors Have Different Styles? ... explain an investor's style, i.e., the value versus growthorientation of ... Cronqvist, Henrik and Siegel, Stephan and Yu, Frank, Value versus ...
- ______________________________________________________________
Study this Typo Cost article
The loss can happen to anyone any time
A Typo Cost This Woman a Fortune
How a typo cost one woman $40,000
Sally Donaldson recalls the sickening moment
she realized she'd lost two years' pay
Why she can't fix it
________
It was a small mistake but one that cost British hairdresser and mother of two "Sally Donaldson" thousands of dollars.
More on Yahoo! Bank Security Group Warns of Website Attacks
According to The Guardian, in October 2012, Donaldson (not her real name) experienced a sickening, gut-wrenching moment when she discovered that over the course of two years, each time she had transferred her monthly paycheck of $1,500 from her HSBC account to the joint one she shares with her husband at Nationwide building society, she had accidentally been placing the money in a total stranger's account. After two years, the amount she had transferred was roughly $40,000.
More on Yahoo! Shine: 12 Money Mistakes Almost Everyone Makes
"It wasn't until October 2012 that I discovered the £1,000 was not showing on our joint account's monthly statement. Having moved over to paperless statements in 2010, I had been checking that my wages were leaving my business account held with HSBC at the end of every month. However, to my horror, I now saw they had never arrived in our joint Nationwide account. Scrolling back, the last time my wage appeared on our statement was May 2010," says Donaldson in The Guardian. "I frantically checked my numbers for the bill payment scheme I had set up with HSBC and could see that, on setting it up, I was one digit out … the money has been going to another Nationwide account holder for the past two years, amounting to £26,650!"
"The payment was set up clearly to my name, my sort code but with one account number digit being incorrect…..Phone calls to Nationwide that night, many tears and numerous subsequent calls and letters, have left us with just £1,000 returned and a complete blank of information from Nationwide," she says.
It may be difficult for Donaldson to get her money back. According to The Guardian, the recipient refuses to return the money and the bank cannot reveal his or her identity due to data protection rules. What's more, British law dictates that when money goes into the wrong hands, it can be withdrawn without gaining permission first for up to six years after it's wrongfully transferred. But in Donaldson's case, the recipient had withdrawn the money through ATMs so there is nothing they can do. Shine attempted to contact Nationwide for comment but emails were not returned.
"People have become so dependent on technology that they've developed a blind trust in computers," says Manisha Thakor, CEO of MoneyZen Wealth Management. "But technology isn't perfect; when you consider the sheer volume of transfers that banks make every day, it's actually very easy for an error to occur. People have a personal responsibility to take ownership of their finances." Here's how to avoid making a similar mistake:
Communicate: It seems unlikely that Donaldson, who was supporting herself on a hairdresser's salary, could overlook the fact that her family's bank account wasn't as flush as it was supposed to be but according to Thakor, many couples don't communicate enough about finances. "What's most troubling about this story is that it occurred between a husband and wife," says Thakor. "It was a very personal transaction and would have been easy for Donaldson to check in with her husband and ask if he received the funds." Yes, a simple, "Hey did you get that huge money transfer I sent you?" over dinner could have prevented the problem from escalating. Even if one person is better at managing money—which is so often the case between couples— staying in the loop about bill paying and money transfers is crucial.
Read in reverse: When you're double checking the number you typed in, read it again but this time backwards. "By reading from the last number to the first, you'll avoid scanning on autopilot," says Thakor. "This process forces your brain to stay alert while you read so you're more likely to catch typos."
Keep a paper trail: No doubt mailed statements can often seem like pesky junk mail but having physical proof of all your transactions is hugely important, especially if you're not the one at fault. "You may have typed the wrong account number but what if you didn't?" says Thakor. "Even if the bank made the mistake, you'd have no proof of innocence if you don't have it on paper." If you don't want to opt for mailed statements, take a screen shot of what you typed in and print it out for your files.
More Click green
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Dealing With Doctors Who Take Only Cash
Date: November 23, 2012
Click green for further info
A FEW weeks ago, my wife and I were at our wits’ end: our 4-month-old daughter wouldn’t sleep for more than an hour at a time at night. We had consulted books and seen our pediatrician, but nothing was working. So my wife called a pediatrician who specializes in babies who struggle with sleep problems.
The next day, he drove an hour from Brooklyn to our house. He then spent an hour and a half talking to us and examining our daughter in her nursery. He prescribed some medicine for her and suggested some changes to my wife’s diet. Within two days, our baby was sleeping through the night and we were all feeling better.
The only catch was this pediatrician did not accept insurance. He had taken our credit card information before his visit and given us a form to submit to our insurance company as he left, saying insurance usually paid a portion of his fee, which was $650.
A couple of weeks later, our insurance company said it wouldn’t pay anything. Here’s how the company figured it: First, it said a fair price for our doctor’s fee was $285, about 60 percent less, because that was the going rate for our town. Then, it said the lower fee was not enough to meet our out-of-network deductible.
While we were none too happy with the insurance company, we remained impressed by the doctor: he had made our baby better and was compensated for it, all the while avoiding the hassle of dealing with insurance.
Last year, I wrote about doctors who catered only to the richest of the rich and charged accordingly. But after my experience, I became interested in doctors for the average person who take only cash. What pushes a doctor to go this route, often called concierge medicine? And how hard is it to make a living?
As to why doctors decide to switch to a concierge practice, the answer is almost always frustration.
“About four years ago, one insurance company was driving me crazy saying I had to fax documents to show I had done a visit,” said Stanford Owen, an internal medical doctor in Gulfport, Miss. “At 2 a.m., I woke up and said, ‘This is it.’ ”
Dr. Owen stopped accepting all insurance and now charges his 1,000 patients $38 a month.
“When I decided to abandon insurance, I didn’t want to lose my patient base and make it unaffordable,” he said. “I have everything from waitresses and shrimpers to international businessmen. It’s a concierge model, but it’s also the personal doctor model.”
Dr. Owen, who once had three nurses and 10 examining rooms, said it was now just him and a receptionist. He has become obsessed with keeping overhead low, but he said that, for the first time since the 1990s, his income was going up.
At the other end of the spectrum is David Edelson, who runs a practice called HealthBridge in Great Neck, N.Y. In addition to five doctors, the practice has a full fitness center and provides the services of a personal trainer, nutritionist, acupuncturist, sleep expert and stress-management consultant.
“The current model for primary care is broken,” Dr. Edelson told me. “Either I can go down with the ship, sell my practice to a hospital or take my practice in the wrong direction. Or I can develop a better mousetrap, which is more time dealing with patients and their care.”
Dr. Edelson has reduced his own practice to 300 patients, from more than 3,000. Of those, 250 pay $1,800 a year for concierge services and 50 others receive scholarships. He estimated that from the combination of the membership fee for the extra services and what gets billed to insurance for typical care, he will make $600,000, and more of that will end up in his pocket.
“We’re bringing in the same fees but we’re reducing our overhead,” he said. Fewer patients means fewer medical assistants, receptionists and staff members to deal with insurance.
But of the five doctors in the practice, he is the only one to go fully concierge. Another, William Klein, is testing the model, with 15 percent of his patients in the concierge program. Dr. Klein said he was hedging his bets because he was not sure what the new federal health care law would mean for primary care physicians.
Weren’t some patients getting shortchanged by this hybrid model? He said he saw no difference in care.
“It’s like paying for first class and not coach,” Dr. Klein said. “Everyone is getting to the same destination, but some people have a better seat.”
This approach to medicine is not without risks for the doctors and downsides for patients.
The biggest concern for a doctor is running afoul of insurance regulations that prevent doctors from billing twice for the same service — for the care, which is submitted to the insurance company, and for the concierge fee, if the fee doesn’t cover something extra. Some insurance companies also bar doctors from offering concierge services.
David Hilgers, chairman of the law firm Brown McCarroll, said the risk to a doctor with a practice dependent on Medicarereimbursements was particularly acute.
“Medicare will not allow you to charge a patient in addition to what the government pays,” Mr. Hilgers said. “There is a risk of losing your practice and your license and being penalized by the federal government for doing so.”
He said a doctor in the past could justify the concierge fees by saying he was charging for an annual physical, which Medicare did not cover. But now, annual physicals are covered, so concierge doctors have be careful how they word contracts with patients if they plan to bill Medicare, he said. Any fee would have to be for services Medicare does not cover — unless the doctor opted out of all insurance.
Dr. Edelson said he was aware of this. He said the concierge fee and the insurance reimbursements were two different streams of income, one for membership in HealthBridge and the other for traditional medical services.
The other issue is quality of care. All the doctors I spoke with said that they had switched to a fee-for-service model for three reasons: to preserve their incomes, to avoid the administrative hassles of insurance and to provide better care.
Harry
Greenspun, a medical doctor and a senior adviser at the Deloitte Center for Health Solutions, said that while the concierge model was certainly heavy on service, there was no correlation between that and the quality of care. “In a lot of these concierge practices where you’re getting all these services, we may find out that the quality of care isn’t higher,” he said. “It could be the emperor has no clothes.”
As a former chief medical officer for Dell and Northrop Grumman, Dr. Greenspun said he had had several “executive physicals,” the long and intense exams many of these concierge practices promote. “As a physician, I know the quality of care is not better,” he said. “It’s the bathrobe and slippers. I know I’ve received a whole lot of unnecessary tests.”
And, of course, going the concierge route just is not an option for many doctors.
Robert Lahita, chairman of medicine at Newark Beth Israel Medical Center, said he understood why primary care physicians and internists would consider switching to a concierge practice: their reimbursement rates are the lowest among doctors, and the time it takes them to handle administrative work is essentially uncompensated.
But Dr. Lahita, who specializes in treating rheumatoid arthritis, lupus and other autoimmune diseases, said the concierge model was not right for specialists, who charge substantially higher fees.
“The vast majority of patients I see have very little money and are very, very sick,” he said. “It would be unconscionable for me to take cash. I’d limit my practice, and it wouldn’t be wise.”
He said frustrated primary care physicians have other options, like becoming a doctor in a hospital or selling their practice to a larger group that will handle the administrative issues.
Other health care experts suggested that the benefits of concierge medicine had been romanticized. “It may not be the panacea a physician is looking for,” said Steven M. Harris, a partner at the law firm McDonald Hopkins. “Certain physicians are attracted to the retainer payments and perhaps lose sight of the responsibilities that go hand and hand with a concierge practice. There are significant demands on the physicians’ time.”
Dr. Owen says he is happy and feels that he is practicing family medicine the way his father and grandfather did. “Primary care is the least pay, the most work and the most responsibility,” he said. “Under this model, you can make a good living. You won’t get rich, but neither did the doctors in the 1960s.
Source: NYT
_____________________________________________
Date: November 23, 2012
Click green for further info
A FEW weeks ago, my wife and I were at our wits’ end: our 4-month-old daughter wouldn’t sleep for more than an hour at a time at night. We had consulted books and seen our pediatrician, but nothing was working. So my wife called a pediatrician who specializes in babies who struggle with sleep problems.
The next day, he drove an hour from Brooklyn to our house. He then spent an hour and a half talking to us and examining our daughter in her nursery. He prescribed some medicine for her and suggested some changes to my wife’s diet. Within two days, our baby was sleeping through the night and we were all feeling better.
The only catch was this pediatrician did not accept insurance. He had taken our credit card information before his visit and given us a form to submit to our insurance company as he left, saying insurance usually paid a portion of his fee, which was $650.
A couple of weeks later, our insurance company said it wouldn’t pay anything. Here’s how the company figured it: First, it said a fair price for our doctor’s fee was $285, about 60 percent less, because that was the going rate for our town. Then, it said the lower fee was not enough to meet our out-of-network deductible.
While we were none too happy with the insurance company, we remained impressed by the doctor: he had made our baby better and was compensated for it, all the while avoiding the hassle of dealing with insurance.
Last year, I wrote about doctors who catered only to the richest of the rich and charged accordingly. But after my experience, I became interested in doctors for the average person who take only cash. What pushes a doctor to go this route, often called concierge medicine? And how hard is it to make a living?
As to why doctors decide to switch to a concierge practice, the answer is almost always frustration.
“About four years ago, one insurance company was driving me crazy saying I had to fax documents to show I had done a visit,” said Stanford Owen, an internal medical doctor in Gulfport, Miss. “At 2 a.m., I woke up and said, ‘This is it.’ ”
Dr. Owen stopped accepting all insurance and now charges his 1,000 patients $38 a month.
“When I decided to abandon insurance, I didn’t want to lose my patient base and make it unaffordable,” he said. “I have everything from waitresses and shrimpers to international businessmen. It’s a concierge model, but it’s also the personal doctor model.”
Dr. Owen, who once had three nurses and 10 examining rooms, said it was now just him and a receptionist. He has become obsessed with keeping overhead low, but he said that, for the first time since the 1990s, his income was going up.
At the other end of the spectrum is David Edelson, who runs a practice called HealthBridge in Great Neck, N.Y. In addition to five doctors, the practice has a full fitness center and provides the services of a personal trainer, nutritionist, acupuncturist, sleep expert and stress-management consultant.
“The current model for primary care is broken,” Dr. Edelson told me. “Either I can go down with the ship, sell my practice to a hospital or take my practice in the wrong direction. Or I can develop a better mousetrap, which is more time dealing with patients and their care.”
Dr. Edelson has reduced his own practice to 300 patients, from more than 3,000. Of those, 250 pay $1,800 a year for concierge services and 50 others receive scholarships. He estimated that from the combination of the membership fee for the extra services and what gets billed to insurance for typical care, he will make $600,000, and more of that will end up in his pocket.
“We’re bringing in the same fees but we’re reducing our overhead,” he said. Fewer patients means fewer medical assistants, receptionists and staff members to deal with insurance.
But of the five doctors in the practice, he is the only one to go fully concierge. Another, William Klein, is testing the model, with 15 percent of his patients in the concierge program. Dr. Klein said he was hedging his bets because he was not sure what the new federal health care law would mean for primary care physicians.
Weren’t some patients getting shortchanged by this hybrid model? He said he saw no difference in care.
“It’s like paying for first class and not coach,” Dr. Klein said. “Everyone is getting to the same destination, but some people have a better seat.”
This approach to medicine is not without risks for the doctors and downsides for patients.
The biggest concern for a doctor is running afoul of insurance regulations that prevent doctors from billing twice for the same service — for the care, which is submitted to the insurance company, and for the concierge fee, if the fee doesn’t cover something extra. Some insurance companies also bar doctors from offering concierge services.
David Hilgers, chairman of the law firm Brown McCarroll, said the risk to a doctor with a practice dependent on Medicarereimbursements was particularly acute.
“Medicare will not allow you to charge a patient in addition to what the government pays,” Mr. Hilgers said. “There is a risk of losing your practice and your license and being penalized by the federal government for doing so.”
He said a doctor in the past could justify the concierge fees by saying he was charging for an annual physical, which Medicare did not cover. But now, annual physicals are covered, so concierge doctors have be careful how they word contracts with patients if they plan to bill Medicare, he said. Any fee would have to be for services Medicare does not cover — unless the doctor opted out of all insurance.
Dr. Edelson said he was aware of this. He said the concierge fee and the insurance reimbursements were two different streams of income, one for membership in HealthBridge and the other for traditional medical services.
The other issue is quality of care. All the doctors I spoke with said that they had switched to a fee-for-service model for three reasons: to preserve their incomes, to avoid the administrative hassles of insurance and to provide better care.
Harry
Greenspun, a medical doctor and a senior adviser at the Deloitte Center for Health Solutions, said that while the concierge model was certainly heavy on service, there was no correlation between that and the quality of care. “In a lot of these concierge practices where you’re getting all these services, we may find out that the quality of care isn’t higher,” he said. “It could be the emperor has no clothes.”
As a former chief medical officer for Dell and Northrop Grumman, Dr. Greenspun said he had had several “executive physicals,” the long and intense exams many of these concierge practices promote. “As a physician, I know the quality of care is not better,” he said. “It’s the bathrobe and slippers. I know I’ve received a whole lot of unnecessary tests.”
And, of course, going the concierge route just is not an option for many doctors.
Robert Lahita, chairman of medicine at Newark Beth Israel Medical Center, said he understood why primary care physicians and internists would consider switching to a concierge practice: their reimbursement rates are the lowest among doctors, and the time it takes them to handle administrative work is essentially uncompensated.
But Dr. Lahita, who specializes in treating rheumatoid arthritis, lupus and other autoimmune diseases, said the concierge model was not right for specialists, who charge substantially higher fees.
“The vast majority of patients I see have very little money and are very, very sick,” he said. “It would be unconscionable for me to take cash. I’d limit my practice, and it wouldn’t be wise.”
He said frustrated primary care physicians have other options, like becoming a doctor in a hospital or selling their practice to a larger group that will handle the administrative issues.
Other health care experts suggested that the benefits of concierge medicine had been romanticized. “It may not be the panacea a physician is looking for,” said Steven M. Harris, a partner at the law firm McDonald Hopkins. “Certain physicians are attracted to the retainer payments and perhaps lose sight of the responsibilities that go hand and hand with a concierge practice. There are significant demands on the physicians’ time.”
Dr. Owen says he is happy and feels that he is practicing family medicine the way his father and grandfather did. “Primary care is the least pay, the most work and the most responsibility,” he said. “Under this model, you can make a good living. You won’t get rich, but neither did the doctors in the 1960s.
Source: NYT
_____________________________________________
Casino slot machines with new tricks to take your money
I’m Losing Money. So Why Do I Feel So Good?
This article is about the tricks relating to the new casino slot machines
You'll benefit from knowing the new information
By RANDALL STROSS, Professor of business at San Jose State University
Click green for further information
STEP into a casino and chances are good that slot machines are filling much of the space, as far as the eye can see. That dominant presence reflects the preference of many customers for machine gambling over human-mediated table games. Not surprisingly, electronic game machines contribute a clear majority of casino revenue in the states that permit them.
What may not be so evident is how a shift in casino gambling to screen-based games contributes to gambling addiction. It’s a story that would fill a book — and just such a book has arrived: “Addiction by Design: Machine Gambling in Las Vegas” by Natasha Dow Schüll, an associate professor in the Program in Science, Technology and Society at M.I.T. The book offers a history of digital technology in casino gambling and shows how it grabs hold of players in ways never before available to equipment makers.
Professor Schüll, a cultural anthropologist, spent considerable time in Las Vegas casinos as part of her research. She met players who told her how they sought to enter a mindless state, a “zone,” in which all else is obliterated, and to stay there as long as possible.
“You aren’t really there — you’re with the machine and that’s all you’re with,” one subject said, describing the zone “where nothing else matters.”
This isn’t the only place where gamblers can reach such a state of mind. It’s also known to occur at table games and at the racetrack. But casino machines arguably supply the most immersive, distraction-free gambling experience.
Speed is one design element of modern gambling machines that helps preserve that zone. When the machines’ gear-driven handles were replaced by electronic push-buttons, the number of games that could be played in an hour doubled. On today’s video slots, played with credit cards instead of coins, players can complete a game in as little as three seconds. There is virtually no pause between plays, and virtually no opportunity to process what has just transpired.
In an interview, Professor Schüll expressed skepticism that players were making careful choices to keep playing each time they pressed the button. “It’s not just those who are vulnerable to addiction,” she said. “I don’t think any human being sitting there, two hours in, playing 1,200 games an hour, can be described as ‘making decisions.’ ”
The random-number generator at the heart of the electronic slot machines is neither visible nor well understood by many players. Some machines allow players to choose the exact moment when the reels stop spinning, but a sense of control is illusory. The outcome is determined when the reels start spinning and has absolutely nothing to do with what the player does or does not do.
Kevin A. Harrigan, a research associate professor at the University of Waterloo in Ontario, Canada, has examined how electronic machines cause players to think that they’ve almost won — when they haven’t.
Multi-line slot machines, for example, invite players to bet on different pay lines at the same time. These can be more addictive than an older, single-line slot machine, which has just one pay line, because they produce not just clear wins and clear losses but also “false wins,” in which players receive less than they’ve bet.
In a typical multi-line slot setup, a player can bet on up to 20 different pay lines in a single game. If a player wins on 9 of the 20 lines, resulting in a net loss, the machine still celebrates the occasion with sound and video effects.
“It’s brilliant,” Professor Harrigan says. “I’m not a gambler myself, but I was playing ‘Money Storm’ in our lab and ‘won’ — nine lines were flashing — and it was cognitively difficult to appreciate that I had actually lost.”
THE American Gaming Association, the industry trade group, maintains that compulsive gambling on slot machines should be attributed to the psychological makeup of the players.
“Some people have difficulty gambling responsibly, as others are prone to use credit cards irresponsibly, or to drive cars recklessly,” the group said in a white paper in 2010. “The problem is not in the products they abuse, but with the individuals.”
The group says slot machines haven’t created more cases of pathological gambling as the number of machines has increased. It cites surveys that say the prevalence of such behavior has remained approximately the same over time.
But Jon E. Grant, a professor of psychiatry at the University of Chicago, says these surveys may not be fully current and may not reflect the full extent of problem gambling. “The gambling problems of the people who are coming in for treatment, or who we see in our research, appear to be more severe than they were 10 or 15 years ago,” he says, and the popularity of multi-line slot machines is one reason.
Addiction specialists are concerned that the near-wins and false wins served up by digital gambling technology set off the same reward mechanism in the brain that is activated by actually winning a game.
In 2010, aiming to counteract this effect, the Queensland government in Australia (click green) enacted regulations that forbid display of a congratulatory message after a false win.
That’s a small improvement. An even better solution would be for machines to clearly label a loss as a loss.
Click green for further information
Source:
NYT & Randall Stross is an author based in Silicon Valley and a professor of business at San Jose State University.
See the Foxwoods Casino article next below
_____________________
I’m Losing Money. So Why Do I Feel So Good?
This article is about the tricks relating to the new casino slot machines
You'll benefit from knowing the new information
By RANDALL STROSS, Professor of business at San Jose State University
Click green for further information
STEP into a casino and chances are good that slot machines are filling much of the space, as far as the eye can see. That dominant presence reflects the preference of many customers for machine gambling over human-mediated table games. Not surprisingly, electronic game machines contribute a clear majority of casino revenue in the states that permit them.
What may not be so evident is how a shift in casino gambling to screen-based games contributes to gambling addiction. It’s a story that would fill a book — and just such a book has arrived: “Addiction by Design: Machine Gambling in Las Vegas” by Natasha Dow Schüll, an associate professor in the Program in Science, Technology and Society at M.I.T. The book offers a history of digital technology in casino gambling and shows how it grabs hold of players in ways never before available to equipment makers.
Professor Schüll, a cultural anthropologist, spent considerable time in Las Vegas casinos as part of her research. She met players who told her how they sought to enter a mindless state, a “zone,” in which all else is obliterated, and to stay there as long as possible.
“You aren’t really there — you’re with the machine and that’s all you’re with,” one subject said, describing the zone “where nothing else matters.”
This isn’t the only place where gamblers can reach such a state of mind. It’s also known to occur at table games and at the racetrack. But casino machines arguably supply the most immersive, distraction-free gambling experience.
Speed is one design element of modern gambling machines that helps preserve that zone. When the machines’ gear-driven handles were replaced by electronic push-buttons, the number of games that could be played in an hour doubled. On today’s video slots, played with credit cards instead of coins, players can complete a game in as little as three seconds. There is virtually no pause between plays, and virtually no opportunity to process what has just transpired.
In an interview, Professor Schüll expressed skepticism that players were making careful choices to keep playing each time they pressed the button. “It’s not just those who are vulnerable to addiction,” she said. “I don’t think any human being sitting there, two hours in, playing 1,200 games an hour, can be described as ‘making decisions.’ ”
The random-number generator at the heart of the electronic slot machines is neither visible nor well understood by many players. Some machines allow players to choose the exact moment when the reels stop spinning, but a sense of control is illusory. The outcome is determined when the reels start spinning and has absolutely nothing to do with what the player does or does not do.
Kevin A. Harrigan, a research associate professor at the University of Waterloo in Ontario, Canada, has examined how electronic machines cause players to think that they’ve almost won — when they haven’t.
Multi-line slot machines, for example, invite players to bet on different pay lines at the same time. These can be more addictive than an older, single-line slot machine, which has just one pay line, because they produce not just clear wins and clear losses but also “false wins,” in which players receive less than they’ve bet.
In a typical multi-line slot setup, a player can bet on up to 20 different pay lines in a single game. If a player wins on 9 of the 20 lines, resulting in a net loss, the machine still celebrates the occasion with sound and video effects.
“It’s brilliant,” Professor Harrigan says. “I’m not a gambler myself, but I was playing ‘Money Storm’ in our lab and ‘won’ — nine lines were flashing — and it was cognitively difficult to appreciate that I had actually lost.”
THE American Gaming Association, the industry trade group, maintains that compulsive gambling on slot machines should be attributed to the psychological makeup of the players.
“Some people have difficulty gambling responsibly, as others are prone to use credit cards irresponsibly, or to drive cars recklessly,” the group said in a white paper in 2010. “The problem is not in the products they abuse, but with the individuals.”
The group says slot machines haven’t created more cases of pathological gambling as the number of machines has increased. It cites surveys that say the prevalence of such behavior has remained approximately the same over time.
But Jon E. Grant, a professor of psychiatry at the University of Chicago, says these surveys may not be fully current and may not reflect the full extent of problem gambling. “The gambling problems of the people who are coming in for treatment, or who we see in our research, appear to be more severe than they were 10 or 15 years ago,” he says, and the popularity of multi-line slot machines is one reason.
Addiction specialists are concerned that the near-wins and false wins served up by digital gambling technology set off the same reward mechanism in the brain that is activated by actually winning a game.
In 2010, aiming to counteract this effect, the Queensland government in Australia (click green) enacted regulations that forbid display of a congratulatory message after a false win.
That’s a small improvement. An even better solution would be for machines to clearly label a loss as a loss.
Click green for further information
Source:
NYT & Randall Stross is an author based in Silicon Valley and a professor of business at San Jose State University.
See the Foxwoods Casino article next below
_____________________
See also the article above - it is about casino slot machines -
you'll benefit from knowing the new information
Above: Casino slot machines with new tricks to take your money
It is the largest casino in the Western Hemisphere
_______
Foxwoods Casino Is Fighting for Its Life
Date: March 14, 2012
Nearly everything about the Foxwoods Resort Casino is improbable, beginning with its scale. It is the largest casino in the Western Hemisphere — a gigantic, labyrinthine wonderland set down in a cedar forest and swamp in an otherwise sleepy corner of southeastern Connecticut. Forty thousand patrons pack into Foxwoods on weekend days. The place has 6,300 slot machines. Ten thousand employees. If you include everything — hotel space, bars and restaurants, theaters and ballrooms, spa, bowling alley — Foxwoods measures about 6.7 million square feet, more than the Pentagon.
The owner of this enterprise is the Mashantucket Pequot Tribal Nation. Once powerful and even feared, the Pequots were nearly extinguished in one day — in fact, in just one hour — when English colonists and their Indian allies attacked and torched the main Pequot village near Mystic in the spring of 1637. The survivors were sold into slavery or given over to neighboring tribes. The colonists even barred the use of the Pequot name, “in order to cut off the remembrance of them from the earth,” as the leader of the raiding party later wrote.
In the early 1970s, just one resident remained on a Pequot reservation in Ledyard, now the site of Foxwoods — an elderly woman named Elizabeth George. Her grandson was Richard Hayward (known as Skip), a pipe welder and a former short-order cook with an audacious vision, innate political skills and a flair for dealmaking. Through his efforts, the tribe won federal recognition in 1983. In 1986, it opened a high-stakes bingo hall. Full-blown casino gambling came to Foxwoods in 1992 and in the two decades since has produced not millions but billions of dollars of revenue. Not surprisingly, the casino and its largess rejuvenated the tribe, whose population is now about 900. (Members trace their bloodlines to 11 Pequot families counted in a 1900 census.)
These days the tribe is dealing with the latest improbability in its turbulent history: financial havoc. The casino is underwater, like a five-bedroom Spanish colonial in a Nevada subdivision. The Pequots misjudged the market, borrowed too much and expanded unwisely. Foxwoods’s debt is on a scale befitting the size of the property — $2.3 billion.
It would be easy to look at what has occurred at Foxwoods and think, Here are people who fell into money and didn’t know how to handle it. Which happens to be true. But how the casino reached this point, and the challenges its owners and operators now confront, is part of a much larger story — one involving the gradual relaxation of moral prohibitions against gambling, a desperate search for new revenue by state governments and the proliferation of new casinos across America. Casino gambling has become a commodity, available within a day’s drive to the vast majority of U.S. residents. Some in the industry talk of there being an oversupply, as if their product were lumber or soybeans.
Foxwoods has had its own in-state competition since 1996 from the Mohegan Sun, which lies just west, across the Thames River. Owned by the Mohegan Tribe, it is a more modest property, though only by comparison — Mohegan is the second-largest casino in the hemisphere. In October, a casino opened at the Aqueduct racetrack in Queens with 4,500 slot machines, and Gov. Andrew Cuomo is pushing an expansion plan for the site that includes a hotel and what would be the nation’s largest convention center. And lawmakers in Massachusetts recently voted to issue licenses for a slots parlor and three full resort casinos — an especially ominous development for the Connecticut casinos, which draw about 30 percent of their clientele from Massachusetts, because many gamblers are ruled by what is known in the business as the law of gravity. They stop where the pull is the strongest, which is usually the nearest casino.
Scott Butera is Foxwoods’s chief executive, its seventh since 2007. Some of the Pequots call him Eagle, for Eagle Eyes, because he notices everything, whether it’s an error in a financial document or a slight stain in a carpet. Some also refer to the tall, gaunt Butera as Woody, after the character in the “Toy Story” movies. Butera, who is 45, has managed troubled casino operations for Donald Trump and Carl Icahn, so he is accustomed to difficult bosses and jobs. In the industry, he is known as a turnaround artist. “My wife keeps telling me to get out of the restructuring business,” he said recently as we sat in his spacious office across from the Grand Pequot Tower, one of several high-rises in the Foxwoods complex. “It just sucks you dry.”
This job is Butera’s most complex yet. The initial lender to Foxwoods was Genting, a Malaysian conglomerate, but the tribe is now indebted to an enormous tangle of banks and bondholders. The fact that Foxwoods is on sovereign tribal land complicates everything. It means the lenders cannot foreclose and take control of the gambling operation but also that Foxwoods probably doesn’t qualify for Chapter 11 — a conundrum that Butera described as “sort of like being stuck in no man’s land” and one that financial backers of Indian casinos apparently did not foresee until Foxwoods tanked. “We have six layers of creditors and, within each layer, 20 to 40 institutions,” Butera told me.“It’s unbelievable. What you have to do is convince them that $2.3 billion of debt is not worth $2.3 billion. And it’s not. Our junior debt was trading at 5 cents on the dollar. So you want to come to a place where even though the lenders are getting a haircut on the face value, they know they’re getting an incredible lift on what it’s actually worth. That’s the magic.”
Butera’s interactions with the Pequots, his bosses, involve a different kind of magic — something more like family therapy. The tribe built new housing, a child-development center, ballfields and tennis courts, a spacious community building with a health club and an indoor-outdoor pool; just about everything on the reservation, which lies “across the swamp” from the casino, as tribal members put it, is faced in exquisitely crafted stone. The pièce de résistance was a $225 million museum to commemorate the Pequots’ tragic history and stunning resurrection.
The costliest regular expenditures were the annual dividends of at least $100,000 given to each adult member of the tribe. Cumulatively, they amounted to as much as $500 million over nearly two decades. They were called incentive payments, though for many they were actually disincentives to work. Children began getting the disbursements when they turned 18. Luxury automobiles abounded. The payments stopped just before Butera arrived in late 2010, and more Pequots have been going to work at Foxwoods. “You had this big moneymaking enterprise with a limited amount of mouths to feed,” Butera said. “But everything’s about austerity now. It’s no different than what a family would do. You’ve got to get rid of the cable TV. You’ve got to get rid of the Cadillac. You’re not going to go out to eat anymore.”
Butera and I set off on a walk around Foxwoods’s gambling floors and hotel and retail spaces, a tour he takes a couple of times a day. He was limping, though not as badly as before recent hip-replacement surgery. He had put off the operation as long as he could but decided that the leader of such a struggling venture should not look as if each step he takes may be his last. “Have you been up to the Paragon?” he asked me, referring to a rooftop restaurant and casino designed for high rollers. “We have like 15 kinds of Brazilian wood in there. It’s just insane.” He said he had seen plans for future improvements, all based on expectations that the money would never stop flowing. “Incredible, creative stuff,” he said. “Water parks. Monorails. Indoor skiing. It was going to be Disneyland under a glass roof.”
The glamour and sexiness of casinos can be highly overrated. Depending on your mood (and how much you’ve had to drink), Las Vegas can be alluring, weirdly fascinating or just disgusting. Foxwoods, under any circumstances, is not really sexy. It’s New England. The furniture in the hotel rooms is big and overstuffed and makes you think about curling up and reading a book. (A renovation to modernize them is under way.) Some of the retail space in the vast corridors between its four large casinos is meant to look like a flea market. In one of these hallways, a brick facade has a sign that says “Town Hall” and is meant to evoke . . . well, it’s not clear. Perhaps a polling place for the New Hampshire primary.
Foxwoods planned to close at 2 a.m. after its grand opening on Feb. 15, 1992, but hundreds of gamblers remained inside, so the lights stayed on, the dealers kept dealing and ever since — through hurricanes, blizzards and national crises — it has remained open every minute of every day. The region was starved for gambling. Located halfway between New York City and Boston, Foxwoods expanded as quickly as it could build, adding casino space and hotel rooms with little regard for cost or coherence.
In 2006, the tribe began construction on a new tower, the MGM Grand at Foxwoods. The project is what finally sent Foxwoods into a financial tailspin. By the time it opened in 2008 — with 800 hotel rooms, 1,400 slot machines and a 4,000-seat theater — the recession had hit and was deepening. “I can understand the mind-set at the time that behemoth was coming out of the ground,” Rodney Butler, who was elected chairman of the Pequot tribe in 2009, said when I visited his office. “The human spirit wants to believe that everyone is entrepreneurial. And it’s fun to do, right? You figure you had one great success, you can have more. That’s the American way.”
It was not just entrepreneurial zeal that caused the Pequots to overreach. “Every consultant, every analyst and every banker on the planet encouraged us to keep getting bigger,” Butler said. “If it wasn’t for that, I’d say, Jeez, maybe we’re just idiots. But these were smart people. Then we opened the doors at the MGM Grand, and five months later, Lehman crashes and the world falls apart.”
Some people erroneously address Butler as Chief, a ceremonial and spiritual position that the Pequots have not filled for decades. If you didn’t know his background, you might assume he is a light-skinned African-American. The 11 family lines include strains of many other ethnicities, and most Pequots are a mix of several. Some just look white. (In “Hitting the Jackpot,” published in 2003, Brett D. Fromson documents a history of racial tension in the tribe that deepened with the building of Foxwoods and the money it produced.) Butler, 35, played football at the University of Connecticut, earned a degree in finance and serves on the board of the local United Way. He is analytical and low-key, a contrast to Skip Hayward, the tribal leader who cut the deals that built Foxwoods in a joint called Mr. Pizza and held court late into the night at local bars.
I told Butler that I found the Pequot Museum impressive. “You don’t think it’s a little over the top?” he said. Well, yes, but the exhibits make clear, in a way a casino never could, that the Pequots were a significant people whose reach once extended across much of southern New England. In the raid that nearly wiped out the Pequots, the Mohegans were among the colonists’ primary allies. “And now we’ve got dueling casinos,” Butler said. “This year will be the 375th anniversary of the year they rallied against us with the colonists. There’s still some bad blood over that, a little animosity, but mostly, we recognize them as our cousins, and we work well together.”
The Pequots, even with their substantial political clout in Connecticut, may not have been able to keep the Mohegans out of the casino market. But they never really mobilized against them. “They thought the cluster of casinos would bring more business,” Butera told me. “It didn’t work out that way. Would we be better off if Mohegan wasn’t here? Yeah, but they’re not going away.”
The Mohegan Sun enjoys several advantages, starting with its location. It is just off an exit on I-395, while Foxwoods is a 20-minute ride down a winding two-lane road. Mohegan has a younger clientele and a hipper vibe. When you enter its main hotel lobby, you notice right away that the lighting is better and the music more current. The idea behind Foxwoods’s new MGM Grand Tower was to add an element of glitz and to create an ambience — right down to the revealing outfits of the servers in the casino — that might attract some of Mohegan’s younger patrons.
Mohegan is smaller, but in recent years it has generated more revenue. The Mohegans own a second casino, in the Pocono Mountains in Pennsylvania, and are expected to compete for a license in Massachusetts. (Foxwoods won a license to build a casino in Philadelphia, but its financial problems prompted the state’s gaming control board to revoke it in 2010.) The Mohegan Sun has struggled recently, too, and the tribe is seeking to restructure its debt, but the casino’s problems are not considered as deep, and its management has been more stable and nimble. Speaking to a gathering of financial analysts in 2009, Mitchell Etess, the Mohegan Sun’s C.E.O., said, “We’ve been very cautious, especially lately, to make sure everybody realizes we’re not Foxwoods.”
Casinos came to Nevada in 1931 and were not legalized anywhere else in the U.S. for nearly five decades, an indication of how many Americans regarded gambling as squarely within the realm of vice and sin. In 1978, casinos opened in a second location, Atlantic City. It is not coincidental that the seaside resort was already a fallen place, poor and crime-ridden and hanging on to its one unique attraction, the annual Miss America Pageant.
You can still hear echoes of a time when gambling was widely considered wicked. When Rodney Butler raised the prospect of dropping the gambling age in Connecticut from 21 to 18 and allowing liquor sales until 4 a.m., The Hartford Courant’s editorial page objected, writing, “Why not just open a brothel?”
Resistance to gambling, however, has been overwhelmed by the need for new sources of public revenue in an era when it has become nearly impossible, at any level of government, to raise taxes or even to let temporary tax cuts expire. A kind of self-perpetuating momentum fuels gambling’s growth: the more states that legalize it, the more politicians in states that haven’t done so argue that if their citizens are going to throw money into slot machines, they might as well do it at home. “Those people would lose that money anyway,” Ed Rendell, the voluble former governor of Pennsylvania, said in a tense appearance on “60 Minutes” last year. Teeth clenched, he continued, “You’re simpletons, you’re idiots if you don’t get that.”
Butera reacts to the debates over gambling with a sense of amusement. “Few governors or senators or House members want to say, ‘I absolutely love having casinos in my market,’ ” he said. “It’s more like: ‘We can manage this. And here’s what we’ll do. We’ll put it in the right place, it won’t impact our society too much and we’ll make some money.’ ”
Casino gambling exists in 36 states. Congress passed the Indian Gaming Regulatory Act in 1988, and around 450 Indian casinos now dot the American landscape. Some are no more than trailers on barren, remote land, but several are large resort casinos near major population centers.
Connecticut’s agreement, or compact, with the Pequots permits various table games at Foxwoods, including blackjack, poker and roulette, along with lesser-known games of chance like chuck-a-luck, pan game, money-wheels and bouncing ball. The main action at Foxwoods and everywhere in the U.S. casino market, though, is slots, which in most casinos account for at least 70 percent of gambling revenues. Foxwoods agreed to pay the state 25 percent of the “hold” from slot machines — the money that gamblers put in and is not returned to them in winnings. While casino opponents in Connecticut have attributed increased traffic, crime and gambling addiction to Foxwoods and Mohegan, those problems would have to be breathtakingly deep and costly to equal the dollars that have flowed to the state.
In January, Mohegan’s hold from its slots was $52 million; Foxwoods’s was $46 million. Connecticut’s share from both came to $24.8 million. Over the last two decades, the monthly payments have added about $6 billion to the state treasury. About half of that is estimated to have come from out-of-state residents, the majority of them from Massachusetts and New York. “Some states weren’t paying attention — they just thought Indian casinos were going to be big bingo halls,” Clyde W. Barrow, director of the Center for Policy Analysis at the University of Massachusetts, Dartmouth, and an expert on the New England casino market, told me. “Connecticut was ahead of the game. They understood the potential.”
Non-Indian gambling operations, known as commercial casinos, have multiplied in every region of the country: from the stolid Midwest, where Iowa alone has 17 commercial casinos, to Mississippi’s Gulf Coast, which has become a mini-Las Vegas, to the mid-Atlantic region, the latest boom market. A proposed $1 billion casino in Maryland has attracted powerful business and political support. It would be on the banks of the Potomac, about 10 miles south of the White House.
Most people probably would not guess which state reaps the most revenue from its casinos. It is Pennsylvania, which in 2010 collected $1.3 billion from slots and table-game revenues. The state had just 10 casinos, but Rendell negotiated an agreement that requires them to turn over 55 percent of the hold from their slots to the state — an advantageous deal for the public and one that showed other states what casino owners will tolerate to gain entry into a market. “It is considered a privilege to be in this industry, and we pay for that privilege in very high taxes,” Frank Fahrenkopf, the president of the American Gaming Association, told me when I visited his office in Washington.
The silver-haired Fahrenkopf, a chairman of the Republican National Committee in the Reagan years, is known as an adroit Washington player, the type who can make light of his high status while also fully inhabiting it. He showed me what he called his “I love me” wall, pictures of him with other important people. “Everybody in Washington has to have one,” he said. “That’s me with Helmut and Margaret,” he said of one picture, signaling his first-name relationships with Helmut Kohl and Margaret Thatcher.
The A.G.A. represents only commercial casinos, 566 of them in 22 states. An economic impact study commissioned by the organization last year counted $34.6 billion in nationwide gambling revenues in 2010. That represents money that individuals bet, lost and left behind in casinos. According to the study, casinos supported 820,000 jobs, created $125 billion in spending and accounted for close to 1 percent of the U.S. gross-domestic product. (Those figures come from only commercial casinos. Foxwoods, Mohegan and other Indian casinos were not included.) “I know there are people who hate this industry and who are always going to hate this industry,” Fahrenkopf said. “If you look at polling, it’s a solid 15 percent, and the other 85 percent are O.K. with it. But you see the contribution we make, in terms of jobs, and the taxes we pay. We’re proud of that.”
The name of the organization Fahrenkopf leads, the American Gaming Association, drops the “b” and the “l” from “gambling.” In fact, no one in the casino business says “gambling.” They are in the business of “gaming” — an enterprise that could not exist without euphemisms and various legal workarounds. There are, for example, the so-called riverboat casinos that get around prohibitions against gambling on land; most of the boats never leave the shoreline. Some Midwest casinos are plopped down in shallow water in concrete basins and are known as “boats in a moat.”
The racino, a more recent innovation, is a slots parlor built at an existing horse-racing track — ground already touched and therefore tainted by gambling. In February, I took the A train from Midtown Manhattan to South Ozone Park in Queens, where a racino has been joined to the century-old Aqueduct racetrack. It is called the Resorts World Casino New York City and is owned by a subsidiary of the Genting Group, the corporation that financed the construction of Foxwoods. Even on a Monday afternoon, thousands of people — white, black, Asian and Hispanic, drawn from the great melting pot of Queens and nearby boroughs and suburbs — were playing the slot machines. Except technically they weren’t slots, but video lottery terminals, or V.L.T.’s.
What’s a V.L.T.? It’s a slot machine.
Under New York state law, however, slots are illegal. With a V.L.T., the result of each play is determined by a central computer and not by circuitry within the machine itself, as is the case with slot machines. That somehow makes it legal. Most gamblers wouldn’t notice a difference, and no one I talked to inside Aqueduct, not even people who worked there, had ever heard of a V.L.T.
Governor Cuomo wants New York to change its state constitution to permit Las Vegas-style gambling with table games, live dealers and slot machines that can be called slot machines. His pitch is based on the prospect of gaining new revenues for the state — and overturning the hypocrisy of the current system. “In a perfect world, there would be no casinos,” he told the editorial board of The Syracuse Post-Standard in February. Referring to New York’s “hodgepodge” of Indian casinos and state-sanctioned racinos, he said: “We have 29,000 gambling machines in this state, more than Atlantic City. . . . You have gaming! You’re just in denial of the reality.”
A casino floor can seem like a throwback to a time decades ago when personal habits were judged less harshly and physical fitness was not considered such a virtue. “Sometimes, it’s a beautiful day out, and you think to yourself, Oh, God, nobody’s going to come in here,” Scott Butera told me in one of our conversations. “But they do. Our crowd wants to sit in front of a slot machine, smoke a cigarette and drink. They’re not going water skiing out at Mystic Seaport.”
A substantial number of casino patrons have mobility issues, and you see a lot of wheelchairs. People who work on casino floors take pride in getting to know their regular customers, the names of their children and grandchildren and even their health issues. “You look around here, and 45 is young,” Butera said as we walked between rows of slots at Foxwoods.
The slot machines themselves, in the cartoonish and often hilarious political incorrectness of their imagery, hark back to some other era — for example, crudely drawn geishas, Asian “emperors” and a “bandito” in a game called More Chilis that would embarrass the proprietor of the lowest-end Tex-Mex joint you can imagine. At the casino industry’s big annual convention in Las Vegas, which is in part a trade show for slots manufacturers, a machine called Girls Day Out included a leather purse and a purple cocktail dress among its spinning icons. The featured icons in its companion game, Guys Night, were things meant to get men excited: dancing girls, cigars, overstuffed hamburgers. The big new rollout at the show was a “Ghostbusters” slot machine, a homage to the 1984 movie. The game’s audio played a section of dialogue from the movie, which seemed like a sly insertion of the designers’ dark humor: “We’d like to get a sample of your brain tissue.”
Foxwoods does have table games, including blackjack and poker. Most casinos of any size court big players, those who will risk hundreds of thousands or even millions of dollars. High rollers are brought in by private jet and helicopter, installed in sumptuous suites with butler service and sometimes granted specially tailored rules on their game of choice. In some cases, casinos will even agree in advance to discount losses: if a player comes in with, say, a $1 million bankroll and loses it all, $200,000 will be returned.
The table games pose some risk for casinos. When I was at Foxwoods, the casino had just been “beaten,” as Butera put it, for close to $1 million by a blackjack player. “It happens,” he said.
Butera told me about another blackjack player who had recently beaten several Atlantic City casinos for more than $15 million. According to published reports, the player, a Pennsylvania businessman named Don Johnson, won $5.8 million at the Tropicana in just 12 hours. The word in the industry was that Johnson benefited from his own solid strategy, a run of great luck and rules that were tilted too much in his direction. He apparently was allowed to bet relatively small amounts when the deck was not in his favor, and up to $100,000 on a single hand when it was. (Also, under typical casino rules, if a blackjack player is dealt two aces, he can split those aces and play two hands, but if he gets another on the next deal, he can’t split again. Johnson was allowed to split aces a third and even a fourth time.)
The lesson that Butera and others on his management team drew was that the Atlantic City casinos had negotiated away too much of their house advantage, something they said was common at Foxwoods under previous management teams. Butera told me that he has instructed those under him to “just say no and let a guy walk down the street and play somewhere else” rather than agree to rules that shave off too much of the casino’s advantage. We were on the gambling floor, and Butera was focused, as he often is, on his dealers. He wants them to be friendly and to “root for the player to win” but to keep the game brisk. “The more hands a player is dealt, the better it is for us,” he said. Butera, who has an M.B.A. from N.Y.U., invoked a gambling term — “vig,” short for “vigorish,” meaning the house’s cut of the action. “The math is the math,” he said. “Over time, we’ll make our vig.”
At the annual Global Gaming Expo in Las Vegas last October, I listened as A. K. Singh, a mathematician and professor of gaming at the University of Nevada, Las Vegas, advised a roomful of casino executives that they could probably increase the hold on their slot machines by a percentage point or two without losing business. He said that some academic literature suggested that skilled slots players would notice, but he disagreed. “What is a skilled player?” he said with a laugh. “There is no skill.”
The difference between table games and slot machines is that slots are entirely predictable. They’re like A.T.M.’s, but in reverse — programmed to take money from players, usually about 9 cents of every dollar wagered, while producing frequent near misses, the illusion that a big jackpot was at hand if only, say, just one more overstuffed burger had landed on the pay line. The lower the house’s hold on a slot machine — and the higher the number of small payouts — the longer a player’s T.O.D. (time on device). It’s a fine balance. Casinos want customers to lose their money, but not so rapidly that they’ll feel the whole experience was a bummer and not want to return.
The gaming confab, known as G2E, offers a sort of crash course in the state of the industry. “We have the power to control luck,” Michael Meczka, a veteran casino marketing consultant from Los Angeles, said at another session. But much of the rest of his presentation was about the uncertainty gripping the business, what casinos cannot control. His remarks, in fact, were a bit grim — they reminded me of the despair you hear in the newspaper business over the advanced age of the core customers and the fear that younger people do not like the product enough to replace them.
Millions of younger Americans who like to gamble are playing online poker, hosted on offshore sites. They may never become casino habitués. So at the same time that brick-and-mortar casinos are proliferating, the demographics may be working against the industry. The A.G.A. is lobbying for legalization of online poker in the United States and for strict regulation of it — a rare case of an industry’s seeking regulation. The strategy would likely put those who already own casinos in a favored position in the new online world.
The big buzzword in the business right now is “cannibalization.” It refers, in this context, to casinos’ gobbling up one anothers’ customers, which for some of them may be the only route to survival. Fahrenkopf, the A.G.A. president, said he was not worried. “What about Starbucks?” he said as I sat in his Washington office. “A block east of here, a block west, a block north is a Starbucks. How much is too much? The market will decide.”
Las Vegas, still the anchor of the gambling industry in the U.S., was battered by the recession, and its revenues from gambling still lag far behind 2007 levels. The city’s recovery could be hurt by a building boom in big Indian casinos in California — and, over time, by new properties in New York, Massachusetts and other Northeast states. The biggest winner in Las Vegas in recent years has been Sheldon Adelson, chairman of the company that owns the Venetian, but what has made him one of the wealthiest men in the world is not his U.S. holdings but his ownership of hugely profitable casinos in the Chinese territory of Macao. (Adelson has been in the news recently because he and his wife have contributed more than $10 million to support Newt Gingrich’s presidential campaign.)
Farhrenkopf acknowledged that when the market does decide, it can have adverse consequences — in Atlantic City, for example, where casino revenue is down 37 percent since 2006 and the city’s future as a gambling mecca is very much in doubt. Rooms at hotel casinos have been going for as little as $19 a night. At least four casinos have been in bankruptcy, and people are no longer crowding onto buses to head south down the Atlantic City Expressway. “The Pennsylvania casinos are killing Atlantic City,” he said. “That’s where the Philadelphia market used to go, but now they can stay home.”
It’s that specter — once-loyal players who disappear — that Foxwoods must worry about. At the Las Vegas conference, Meczka said that when people in the industry tell him they want new customers, his response is: “There aren’t any new customers out there. Gaming is an aged community. . . . Anyone who has ever wanted to try a casino has tried a casino.” In other words, the market is not expanding — only the venues meant to cater to a finite number of gamblers.
When I toured Foxwoods with Christopher O’Connell, the vice president for hotel operations, we looked at some of the back-room operations: a call center, where about 130 people, divided among three shifts, book reservations and answer other inquiries; a corridor with a long line of lockers, where dealers store their personal belongings; cafeterias that serve about 5,000 meals a day to employees. In better economic times, these might seem like lower-level service-industry jobs. In the current climate, they just looked like jobs.
O’Connell grew up in Ledyard, Conn., and was a basketball star at Ledyard High. “There was no reason to ever go to this side of town,” he told me. “It was a swamp, that’s all, and a reservation, but there was hardly anything on the reservation.” He has worked there for most of his adult life. “I’m interested to see what happens with Aqueduct,” he said. “They don’t have table games yet, but everyone figures they will. With Massachusetts, it’s only a matter of time before they get casinos. It’s scary from my perspective.”
When Butera showed me around the property, it was clear that much about it irritates him. The restaurant choices, for starters. “You want a steak, we’ll give you a steak,” he said. “You want a doughnut, you can have that. We just don’t have much in between. We need a Yard House, an Applebee’s, a T. G. I. Friday’s, a Cheesecake Factory.” He noted the absence of a seafood restaurant. “We’re in New England, and we don’t have a fish house?” We walked by some of the flea-market-like retail. “All this honky-tonk has to go,” he said.
What encourages Butera is the immensity of the property and the richness of what has already been built. “I mean, you look at this place, the money that’s in the ground, nobody could afford to do that now. But the good news is it’s already here. We’ve got it. The business needs to evolve, but the foundation that exists is unbelievable.”
A successful turnaround artist does more than negotiate favorable terms with lenders. He must tell a story. He elucidates what went wrong in the past and how it will be better in the future. It can help to be blunt about previous management, even harsh — like a defense lawyer pleading for a new trial for his client on the basis that the previous attorney was incompetent. Butera brought in an almost entirely new management team, including people he knew from Las Vegas and Atlantic City. It wasn’t easy to attract them, because everyone had to relocate — and to an entity perceived as failing. “There was poor management here for an extended period of time,” Butera told me. “So we needed to make a lot of changes.”
Revenues have continued to fall at Foxwoods, as they have for the last half-dozen years. But lately, the casino’s profits have been increasing. “We changed our focus to profitability,” Butera said, which sounds a little like something out of a story in The Onion. (The previous focus was on unprofitability?) But what he meant was that Foxwoods had stopped chasing unproductive customers — table-game players whose perks added up to more than their losses — just to increase traffic.
On Feb. 15, the 20th anniversary of casino gambling at Foxwoods, Butera and Rodney Butler, chairman of the Mashantucket Pequot Tribal Nation, proposed a broader plan for how the business would go forward. In one way, it was a return to the past. Foxwoods will expand. But this time, in a different way. It will not be adding gambling capacity. Instead, the plan is to build a 300,000-square-foot retail center, including 75 outlet stores, between the new MGM Grand Tower and the rest of Foxwoods. The area is currently dead space, a long walk for a lot of people who don’t enjoy walking.
Luxury outlet malls are considered a good mix with casinos, because the core customer is the same as a typical slots player: a middle-aged woman with money to spend. “It’s going to be a fabulous tenant roster,” Butera said. “If you’re a retailer, what’s your biggest concern? You’re going to open the store, and nobody’s going to come. We’ve got 40,000 people here every Saturday wanting to do something and not wanting to go anywhere else. They’re captive.”
But of course, nothing is really as profitable as the casino end of a resort casino. No goods or services, in a traditional sense, are exchanged. People come through the door for the experience of risking — and usually losing — their money. Gambling, like professional sports, is entertainment — but without the multimillion-dollar salaries for the performers. And no pro sports franchise generates cash hour by hour, day after day, like a big thriving casino.
By the beginning of this year, Butera and the tribe were close to an agreement with their lenders, though the details will still take months to finalize. The $2.3 billion debt is expected to be reduced to about $1.7 billion, but with lower interest rates that will ensure financial flexibility for Foxwoods.
The plan for the outlet mall was a signal to lenders that two decades of grandiosity at Foxwoods have come to an end. Foxwoods had been an early mover, built to stand astride a huge geographic area — much like the Pequot tribe once dominated a big swath of New England. But as the casino business in America has expanded, Foxwoods’s piece of it has become smaller and will continue to shrink.
“You can’t fight the tide,” Butera said as we sat in his office. He brought up the example of Atlantic City. The State of New Jersey is likely to reap less money from its tables and slots — just as Connecticut and other states that have come to rely on gambling will see their share decrease as others get into the market. But he believes individual casinos with a good plan can survive. “It’s the exact same thing here,” Butera said. “We can still have a great business. We just can’t have the same business we used to have.”
Source: New York Time Magazine
Michael Sokolove is a contributing writer for the New York Times magazine.
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Foxwoods Casino Is Fighting for Its Life
Date: March 14, 2012
Nearly everything about the Foxwoods Resort Casino is improbable, beginning with its scale. It is the largest casino in the Western Hemisphere — a gigantic, labyrinthine wonderland set down in a cedar forest and swamp in an otherwise sleepy corner of southeastern Connecticut. Forty thousand patrons pack into Foxwoods on weekend days. The place has 6,300 slot machines. Ten thousand employees. If you include everything — hotel space, bars and restaurants, theaters and ballrooms, spa, bowling alley — Foxwoods measures about 6.7 million square feet, more than the Pentagon.
The owner of this enterprise is the Mashantucket Pequot Tribal Nation. Once powerful and even feared, the Pequots were nearly extinguished in one day — in fact, in just one hour — when English colonists and their Indian allies attacked and torched the main Pequot village near Mystic in the spring of 1637. The survivors were sold into slavery or given over to neighboring tribes. The colonists even barred the use of the Pequot name, “in order to cut off the remembrance of them from the earth,” as the leader of the raiding party later wrote.
In the early 1970s, just one resident remained on a Pequot reservation in Ledyard, now the site of Foxwoods — an elderly woman named Elizabeth George. Her grandson was Richard Hayward (known as Skip), a pipe welder and a former short-order cook with an audacious vision, innate political skills and a flair for dealmaking. Through his efforts, the tribe won federal recognition in 1983. In 1986, it opened a high-stakes bingo hall. Full-blown casino gambling came to Foxwoods in 1992 and in the two decades since has produced not millions but billions of dollars of revenue. Not surprisingly, the casino and its largess rejuvenated the tribe, whose population is now about 900. (Members trace their bloodlines to 11 Pequot families counted in a 1900 census.)
These days the tribe is dealing with the latest improbability in its turbulent history: financial havoc. The casino is underwater, like a five-bedroom Spanish colonial in a Nevada subdivision. The Pequots misjudged the market, borrowed too much and expanded unwisely. Foxwoods’s debt is on a scale befitting the size of the property — $2.3 billion.
It would be easy to look at what has occurred at Foxwoods and think, Here are people who fell into money and didn’t know how to handle it. Which happens to be true. But how the casino reached this point, and the challenges its owners and operators now confront, is part of a much larger story — one involving the gradual relaxation of moral prohibitions against gambling, a desperate search for new revenue by state governments and the proliferation of new casinos across America. Casino gambling has become a commodity, available within a day’s drive to the vast majority of U.S. residents. Some in the industry talk of there being an oversupply, as if their product were lumber or soybeans.
Foxwoods has had its own in-state competition since 1996 from the Mohegan Sun, which lies just west, across the Thames River. Owned by the Mohegan Tribe, it is a more modest property, though only by comparison — Mohegan is the second-largest casino in the hemisphere. In October, a casino opened at the Aqueduct racetrack in Queens with 4,500 slot machines, and Gov. Andrew Cuomo is pushing an expansion plan for the site that includes a hotel and what would be the nation’s largest convention center. And lawmakers in Massachusetts recently voted to issue licenses for a slots parlor and three full resort casinos — an especially ominous development for the Connecticut casinos, which draw about 30 percent of their clientele from Massachusetts, because many gamblers are ruled by what is known in the business as the law of gravity. They stop where the pull is the strongest, which is usually the nearest casino.
Scott Butera is Foxwoods’s chief executive, its seventh since 2007. Some of the Pequots call him Eagle, for Eagle Eyes, because he notices everything, whether it’s an error in a financial document or a slight stain in a carpet. Some also refer to the tall, gaunt Butera as Woody, after the character in the “Toy Story” movies. Butera, who is 45, has managed troubled casino operations for Donald Trump and Carl Icahn, so he is accustomed to difficult bosses and jobs. In the industry, he is known as a turnaround artist. “My wife keeps telling me to get out of the restructuring business,” he said recently as we sat in his spacious office across from the Grand Pequot Tower, one of several high-rises in the Foxwoods complex. “It just sucks you dry.”
This job is Butera’s most complex yet. The initial lender to Foxwoods was Genting, a Malaysian conglomerate, but the tribe is now indebted to an enormous tangle of banks and bondholders. The fact that Foxwoods is on sovereign tribal land complicates everything. It means the lenders cannot foreclose and take control of the gambling operation but also that Foxwoods probably doesn’t qualify for Chapter 11 — a conundrum that Butera described as “sort of like being stuck in no man’s land” and one that financial backers of Indian casinos apparently did not foresee until Foxwoods tanked. “We have six layers of creditors and, within each layer, 20 to 40 institutions,” Butera told me.“It’s unbelievable. What you have to do is convince them that $2.3 billion of debt is not worth $2.3 billion. And it’s not. Our junior debt was trading at 5 cents on the dollar. So you want to come to a place where even though the lenders are getting a haircut on the face value, they know they’re getting an incredible lift on what it’s actually worth. That’s the magic.”
Butera’s interactions with the Pequots, his bosses, involve a different kind of magic — something more like family therapy. The tribe built new housing, a child-development center, ballfields and tennis courts, a spacious community building with a health club and an indoor-outdoor pool; just about everything on the reservation, which lies “across the swamp” from the casino, as tribal members put it, is faced in exquisitely crafted stone. The pièce de résistance was a $225 million museum to commemorate the Pequots’ tragic history and stunning resurrection.
The costliest regular expenditures were the annual dividends of at least $100,000 given to each adult member of the tribe. Cumulatively, they amounted to as much as $500 million over nearly two decades. They were called incentive payments, though for many they were actually disincentives to work. Children began getting the disbursements when they turned 18. Luxury automobiles abounded. The payments stopped just before Butera arrived in late 2010, and more Pequots have been going to work at Foxwoods. “You had this big moneymaking enterprise with a limited amount of mouths to feed,” Butera said. “But everything’s about austerity now. It’s no different than what a family would do. You’ve got to get rid of the cable TV. You’ve got to get rid of the Cadillac. You’re not going to go out to eat anymore.”
Butera and I set off on a walk around Foxwoods’s gambling floors and hotel and retail spaces, a tour he takes a couple of times a day. He was limping, though not as badly as before recent hip-replacement surgery. He had put off the operation as long as he could but decided that the leader of such a struggling venture should not look as if each step he takes may be his last. “Have you been up to the Paragon?” he asked me, referring to a rooftop restaurant and casino designed for high rollers. “We have like 15 kinds of Brazilian wood in there. It’s just insane.” He said he had seen plans for future improvements, all based on expectations that the money would never stop flowing. “Incredible, creative stuff,” he said. “Water parks. Monorails. Indoor skiing. It was going to be Disneyland under a glass roof.”
The glamour and sexiness of casinos can be highly overrated. Depending on your mood (and how much you’ve had to drink), Las Vegas can be alluring, weirdly fascinating or just disgusting. Foxwoods, under any circumstances, is not really sexy. It’s New England. The furniture in the hotel rooms is big and overstuffed and makes you think about curling up and reading a book. (A renovation to modernize them is under way.) Some of the retail space in the vast corridors between its four large casinos is meant to look like a flea market. In one of these hallways, a brick facade has a sign that says “Town Hall” and is meant to evoke . . . well, it’s not clear. Perhaps a polling place for the New Hampshire primary.
Foxwoods planned to close at 2 a.m. after its grand opening on Feb. 15, 1992, but hundreds of gamblers remained inside, so the lights stayed on, the dealers kept dealing and ever since — through hurricanes, blizzards and national crises — it has remained open every minute of every day. The region was starved for gambling. Located halfway between New York City and Boston, Foxwoods expanded as quickly as it could build, adding casino space and hotel rooms with little regard for cost or coherence.
In 2006, the tribe began construction on a new tower, the MGM Grand at Foxwoods. The project is what finally sent Foxwoods into a financial tailspin. By the time it opened in 2008 — with 800 hotel rooms, 1,400 slot machines and a 4,000-seat theater — the recession had hit and was deepening. “I can understand the mind-set at the time that behemoth was coming out of the ground,” Rodney Butler, who was elected chairman of the Pequot tribe in 2009, said when I visited his office. “The human spirit wants to believe that everyone is entrepreneurial. And it’s fun to do, right? You figure you had one great success, you can have more. That’s the American way.”
It was not just entrepreneurial zeal that caused the Pequots to overreach. “Every consultant, every analyst and every banker on the planet encouraged us to keep getting bigger,” Butler said. “If it wasn’t for that, I’d say, Jeez, maybe we’re just idiots. But these were smart people. Then we opened the doors at the MGM Grand, and five months later, Lehman crashes and the world falls apart.”
Some people erroneously address Butler as Chief, a ceremonial and spiritual position that the Pequots have not filled for decades. If you didn’t know his background, you might assume he is a light-skinned African-American. The 11 family lines include strains of many other ethnicities, and most Pequots are a mix of several. Some just look white. (In “Hitting the Jackpot,” published in 2003, Brett D. Fromson documents a history of racial tension in the tribe that deepened with the building of Foxwoods and the money it produced.) Butler, 35, played football at the University of Connecticut, earned a degree in finance and serves on the board of the local United Way. He is analytical and low-key, a contrast to Skip Hayward, the tribal leader who cut the deals that built Foxwoods in a joint called Mr. Pizza and held court late into the night at local bars.
I told Butler that I found the Pequot Museum impressive. “You don’t think it’s a little over the top?” he said. Well, yes, but the exhibits make clear, in a way a casino never could, that the Pequots were a significant people whose reach once extended across much of southern New England. In the raid that nearly wiped out the Pequots, the Mohegans were among the colonists’ primary allies. “And now we’ve got dueling casinos,” Butler said. “This year will be the 375th anniversary of the year they rallied against us with the colonists. There’s still some bad blood over that, a little animosity, but mostly, we recognize them as our cousins, and we work well together.”
The Pequots, even with their substantial political clout in Connecticut, may not have been able to keep the Mohegans out of the casino market. But they never really mobilized against them. “They thought the cluster of casinos would bring more business,” Butera told me. “It didn’t work out that way. Would we be better off if Mohegan wasn’t here? Yeah, but they’re not going away.”
The Mohegan Sun enjoys several advantages, starting with its location. It is just off an exit on I-395, while Foxwoods is a 20-minute ride down a winding two-lane road. Mohegan has a younger clientele and a hipper vibe. When you enter its main hotel lobby, you notice right away that the lighting is better and the music more current. The idea behind Foxwoods’s new MGM Grand Tower was to add an element of glitz and to create an ambience — right down to the revealing outfits of the servers in the casino — that might attract some of Mohegan’s younger patrons.
Mohegan is smaller, but in recent years it has generated more revenue. The Mohegans own a second casino, in the Pocono Mountains in Pennsylvania, and are expected to compete for a license in Massachusetts. (Foxwoods won a license to build a casino in Philadelphia, but its financial problems prompted the state’s gaming control board to revoke it in 2010.) The Mohegan Sun has struggled recently, too, and the tribe is seeking to restructure its debt, but the casino’s problems are not considered as deep, and its management has been more stable and nimble. Speaking to a gathering of financial analysts in 2009, Mitchell Etess, the Mohegan Sun’s C.E.O., said, “We’ve been very cautious, especially lately, to make sure everybody realizes we’re not Foxwoods.”
Casinos came to Nevada in 1931 and were not legalized anywhere else in the U.S. for nearly five decades, an indication of how many Americans regarded gambling as squarely within the realm of vice and sin. In 1978, casinos opened in a second location, Atlantic City. It is not coincidental that the seaside resort was already a fallen place, poor and crime-ridden and hanging on to its one unique attraction, the annual Miss America Pageant.
You can still hear echoes of a time when gambling was widely considered wicked. When Rodney Butler raised the prospect of dropping the gambling age in Connecticut from 21 to 18 and allowing liquor sales until 4 a.m., The Hartford Courant’s editorial page objected, writing, “Why not just open a brothel?”
Resistance to gambling, however, has been overwhelmed by the need for new sources of public revenue in an era when it has become nearly impossible, at any level of government, to raise taxes or even to let temporary tax cuts expire. A kind of self-perpetuating momentum fuels gambling’s growth: the more states that legalize it, the more politicians in states that haven’t done so argue that if their citizens are going to throw money into slot machines, they might as well do it at home. “Those people would lose that money anyway,” Ed Rendell, the voluble former governor of Pennsylvania, said in a tense appearance on “60 Minutes” last year. Teeth clenched, he continued, “You’re simpletons, you’re idiots if you don’t get that.”
Butera reacts to the debates over gambling with a sense of amusement. “Few governors or senators or House members want to say, ‘I absolutely love having casinos in my market,’ ” he said. “It’s more like: ‘We can manage this. And here’s what we’ll do. We’ll put it in the right place, it won’t impact our society too much and we’ll make some money.’ ”
Casino gambling exists in 36 states. Congress passed the Indian Gaming Regulatory Act in 1988, and around 450 Indian casinos now dot the American landscape. Some are no more than trailers on barren, remote land, but several are large resort casinos near major population centers.
Connecticut’s agreement, or compact, with the Pequots permits various table games at Foxwoods, including blackjack, poker and roulette, along with lesser-known games of chance like chuck-a-luck, pan game, money-wheels and bouncing ball. The main action at Foxwoods and everywhere in the U.S. casino market, though, is slots, which in most casinos account for at least 70 percent of gambling revenues. Foxwoods agreed to pay the state 25 percent of the “hold” from slot machines — the money that gamblers put in and is not returned to them in winnings. While casino opponents in Connecticut have attributed increased traffic, crime and gambling addiction to Foxwoods and Mohegan, those problems would have to be breathtakingly deep and costly to equal the dollars that have flowed to the state.
In January, Mohegan’s hold from its slots was $52 million; Foxwoods’s was $46 million. Connecticut’s share from both came to $24.8 million. Over the last two decades, the monthly payments have added about $6 billion to the state treasury. About half of that is estimated to have come from out-of-state residents, the majority of them from Massachusetts and New York. “Some states weren’t paying attention — they just thought Indian casinos were going to be big bingo halls,” Clyde W. Barrow, director of the Center for Policy Analysis at the University of Massachusetts, Dartmouth, and an expert on the New England casino market, told me. “Connecticut was ahead of the game. They understood the potential.”
Non-Indian gambling operations, known as commercial casinos, have multiplied in every region of the country: from the stolid Midwest, where Iowa alone has 17 commercial casinos, to Mississippi’s Gulf Coast, which has become a mini-Las Vegas, to the mid-Atlantic region, the latest boom market. A proposed $1 billion casino in Maryland has attracted powerful business and political support. It would be on the banks of the Potomac, about 10 miles south of the White House.
Most people probably would not guess which state reaps the most revenue from its casinos. It is Pennsylvania, which in 2010 collected $1.3 billion from slots and table-game revenues. The state had just 10 casinos, but Rendell negotiated an agreement that requires them to turn over 55 percent of the hold from their slots to the state — an advantageous deal for the public and one that showed other states what casino owners will tolerate to gain entry into a market. “It is considered a privilege to be in this industry, and we pay for that privilege in very high taxes,” Frank Fahrenkopf, the president of the American Gaming Association, told me when I visited his office in Washington.
The silver-haired Fahrenkopf, a chairman of the Republican National Committee in the Reagan years, is known as an adroit Washington player, the type who can make light of his high status while also fully inhabiting it. He showed me what he called his “I love me” wall, pictures of him with other important people. “Everybody in Washington has to have one,” he said. “That’s me with Helmut and Margaret,” he said of one picture, signaling his first-name relationships with Helmut Kohl and Margaret Thatcher.
The A.G.A. represents only commercial casinos, 566 of them in 22 states. An economic impact study commissioned by the organization last year counted $34.6 billion in nationwide gambling revenues in 2010. That represents money that individuals bet, lost and left behind in casinos. According to the study, casinos supported 820,000 jobs, created $125 billion in spending and accounted for close to 1 percent of the U.S. gross-domestic product. (Those figures come from only commercial casinos. Foxwoods, Mohegan and other Indian casinos were not included.) “I know there are people who hate this industry and who are always going to hate this industry,” Fahrenkopf said. “If you look at polling, it’s a solid 15 percent, and the other 85 percent are O.K. with it. But you see the contribution we make, in terms of jobs, and the taxes we pay. We’re proud of that.”
The name of the organization Fahrenkopf leads, the American Gaming Association, drops the “b” and the “l” from “gambling.” In fact, no one in the casino business says “gambling.” They are in the business of “gaming” — an enterprise that could not exist without euphemisms and various legal workarounds. There are, for example, the so-called riverboat casinos that get around prohibitions against gambling on land; most of the boats never leave the shoreline. Some Midwest casinos are plopped down in shallow water in concrete basins and are known as “boats in a moat.”
The racino, a more recent innovation, is a slots parlor built at an existing horse-racing track — ground already touched and therefore tainted by gambling. In February, I took the A train from Midtown Manhattan to South Ozone Park in Queens, where a racino has been joined to the century-old Aqueduct racetrack. It is called the Resorts World Casino New York City and is owned by a subsidiary of the Genting Group, the corporation that financed the construction of Foxwoods. Even on a Monday afternoon, thousands of people — white, black, Asian and Hispanic, drawn from the great melting pot of Queens and nearby boroughs and suburbs — were playing the slot machines. Except technically they weren’t slots, but video lottery terminals, or V.L.T.’s.
What’s a V.L.T.? It’s a slot machine.
Under New York state law, however, slots are illegal. With a V.L.T., the result of each play is determined by a central computer and not by circuitry within the machine itself, as is the case with slot machines. That somehow makes it legal. Most gamblers wouldn’t notice a difference, and no one I talked to inside Aqueduct, not even people who worked there, had ever heard of a V.L.T.
Governor Cuomo wants New York to change its state constitution to permit Las Vegas-style gambling with table games, live dealers and slot machines that can be called slot machines. His pitch is based on the prospect of gaining new revenues for the state — and overturning the hypocrisy of the current system. “In a perfect world, there would be no casinos,” he told the editorial board of The Syracuse Post-Standard in February. Referring to New York’s “hodgepodge” of Indian casinos and state-sanctioned racinos, he said: “We have 29,000 gambling machines in this state, more than Atlantic City. . . . You have gaming! You’re just in denial of the reality.”
A casino floor can seem like a throwback to a time decades ago when personal habits were judged less harshly and physical fitness was not considered such a virtue. “Sometimes, it’s a beautiful day out, and you think to yourself, Oh, God, nobody’s going to come in here,” Scott Butera told me in one of our conversations. “But they do. Our crowd wants to sit in front of a slot machine, smoke a cigarette and drink. They’re not going water skiing out at Mystic Seaport.”
A substantial number of casino patrons have mobility issues, and you see a lot of wheelchairs. People who work on casino floors take pride in getting to know their regular customers, the names of their children and grandchildren and even their health issues. “You look around here, and 45 is young,” Butera said as we walked between rows of slots at Foxwoods.
The slot machines themselves, in the cartoonish and often hilarious political incorrectness of their imagery, hark back to some other era — for example, crudely drawn geishas, Asian “emperors” and a “bandito” in a game called More Chilis that would embarrass the proprietor of the lowest-end Tex-Mex joint you can imagine. At the casino industry’s big annual convention in Las Vegas, which is in part a trade show for slots manufacturers, a machine called Girls Day Out included a leather purse and a purple cocktail dress among its spinning icons. The featured icons in its companion game, Guys Night, were things meant to get men excited: dancing girls, cigars, overstuffed hamburgers. The big new rollout at the show was a “Ghostbusters” slot machine, a homage to the 1984 movie. The game’s audio played a section of dialogue from the movie, which seemed like a sly insertion of the designers’ dark humor: “We’d like to get a sample of your brain tissue.”
Foxwoods does have table games, including blackjack and poker. Most casinos of any size court big players, those who will risk hundreds of thousands or even millions of dollars. High rollers are brought in by private jet and helicopter, installed in sumptuous suites with butler service and sometimes granted specially tailored rules on their game of choice. In some cases, casinos will even agree in advance to discount losses: if a player comes in with, say, a $1 million bankroll and loses it all, $200,000 will be returned.
The table games pose some risk for casinos. When I was at Foxwoods, the casino had just been “beaten,” as Butera put it, for close to $1 million by a blackjack player. “It happens,” he said.
Butera told me about another blackjack player who had recently beaten several Atlantic City casinos for more than $15 million. According to published reports, the player, a Pennsylvania businessman named Don Johnson, won $5.8 million at the Tropicana in just 12 hours. The word in the industry was that Johnson benefited from his own solid strategy, a run of great luck and rules that were tilted too much in his direction. He apparently was allowed to bet relatively small amounts when the deck was not in his favor, and up to $100,000 on a single hand when it was. (Also, under typical casino rules, if a blackjack player is dealt two aces, he can split those aces and play two hands, but if he gets another on the next deal, he can’t split again. Johnson was allowed to split aces a third and even a fourth time.)
The lesson that Butera and others on his management team drew was that the Atlantic City casinos had negotiated away too much of their house advantage, something they said was common at Foxwoods under previous management teams. Butera told me that he has instructed those under him to “just say no and let a guy walk down the street and play somewhere else” rather than agree to rules that shave off too much of the casino’s advantage. We were on the gambling floor, and Butera was focused, as he often is, on his dealers. He wants them to be friendly and to “root for the player to win” but to keep the game brisk. “The more hands a player is dealt, the better it is for us,” he said. Butera, who has an M.B.A. from N.Y.U., invoked a gambling term — “vig,” short for “vigorish,” meaning the house’s cut of the action. “The math is the math,” he said. “Over time, we’ll make our vig.”
At the annual Global Gaming Expo in Las Vegas last October, I listened as A. K. Singh, a mathematician and professor of gaming at the University of Nevada, Las Vegas, advised a roomful of casino executives that they could probably increase the hold on their slot machines by a percentage point or two without losing business. He said that some academic literature suggested that skilled slots players would notice, but he disagreed. “What is a skilled player?” he said with a laugh. “There is no skill.”
The difference between table games and slot machines is that slots are entirely predictable. They’re like A.T.M.’s, but in reverse — programmed to take money from players, usually about 9 cents of every dollar wagered, while producing frequent near misses, the illusion that a big jackpot was at hand if only, say, just one more overstuffed burger had landed on the pay line. The lower the house’s hold on a slot machine — and the higher the number of small payouts — the longer a player’s T.O.D. (time on device). It’s a fine balance. Casinos want customers to lose their money, but not so rapidly that they’ll feel the whole experience was a bummer and not want to return.
The gaming confab, known as G2E, offers a sort of crash course in the state of the industry. “We have the power to control luck,” Michael Meczka, a veteran casino marketing consultant from Los Angeles, said at another session. But much of the rest of his presentation was about the uncertainty gripping the business, what casinos cannot control. His remarks, in fact, were a bit grim — they reminded me of the despair you hear in the newspaper business over the advanced age of the core customers and the fear that younger people do not like the product enough to replace them.
Millions of younger Americans who like to gamble are playing online poker, hosted on offshore sites. They may never become casino habitués. So at the same time that brick-and-mortar casinos are proliferating, the demographics may be working against the industry. The A.G.A. is lobbying for legalization of online poker in the United States and for strict regulation of it — a rare case of an industry’s seeking regulation. The strategy would likely put those who already own casinos in a favored position in the new online world.
The big buzzword in the business right now is “cannibalization.” It refers, in this context, to casinos’ gobbling up one anothers’ customers, which for some of them may be the only route to survival. Fahrenkopf, the A.G.A. president, said he was not worried. “What about Starbucks?” he said as I sat in his Washington office. “A block east of here, a block west, a block north is a Starbucks. How much is too much? The market will decide.”
Las Vegas, still the anchor of the gambling industry in the U.S., was battered by the recession, and its revenues from gambling still lag far behind 2007 levels. The city’s recovery could be hurt by a building boom in big Indian casinos in California — and, over time, by new properties in New York, Massachusetts and other Northeast states. The biggest winner in Las Vegas in recent years has been Sheldon Adelson, chairman of the company that owns the Venetian, but what has made him one of the wealthiest men in the world is not his U.S. holdings but his ownership of hugely profitable casinos in the Chinese territory of Macao. (Adelson has been in the news recently because he and his wife have contributed more than $10 million to support Newt Gingrich’s presidential campaign.)
Farhrenkopf acknowledged that when the market does decide, it can have adverse consequences — in Atlantic City, for example, where casino revenue is down 37 percent since 2006 and the city’s future as a gambling mecca is very much in doubt. Rooms at hotel casinos have been going for as little as $19 a night. At least four casinos have been in bankruptcy, and people are no longer crowding onto buses to head south down the Atlantic City Expressway. “The Pennsylvania casinos are killing Atlantic City,” he said. “That’s where the Philadelphia market used to go, but now they can stay home.”
It’s that specter — once-loyal players who disappear — that Foxwoods must worry about. At the Las Vegas conference, Meczka said that when people in the industry tell him they want new customers, his response is: “There aren’t any new customers out there. Gaming is an aged community. . . . Anyone who has ever wanted to try a casino has tried a casino.” In other words, the market is not expanding — only the venues meant to cater to a finite number of gamblers.
When I toured Foxwoods with Christopher O’Connell, the vice president for hotel operations, we looked at some of the back-room operations: a call center, where about 130 people, divided among three shifts, book reservations and answer other inquiries; a corridor with a long line of lockers, where dealers store their personal belongings; cafeterias that serve about 5,000 meals a day to employees. In better economic times, these might seem like lower-level service-industry jobs. In the current climate, they just looked like jobs.
O’Connell grew up in Ledyard, Conn., and was a basketball star at Ledyard High. “There was no reason to ever go to this side of town,” he told me. “It was a swamp, that’s all, and a reservation, but there was hardly anything on the reservation.” He has worked there for most of his adult life. “I’m interested to see what happens with Aqueduct,” he said. “They don’t have table games yet, but everyone figures they will. With Massachusetts, it’s only a matter of time before they get casinos. It’s scary from my perspective.”
When Butera showed me around the property, it was clear that much about it irritates him. The restaurant choices, for starters. “You want a steak, we’ll give you a steak,” he said. “You want a doughnut, you can have that. We just don’t have much in between. We need a Yard House, an Applebee’s, a T. G. I. Friday’s, a Cheesecake Factory.” He noted the absence of a seafood restaurant. “We’re in New England, and we don’t have a fish house?” We walked by some of the flea-market-like retail. “All this honky-tonk has to go,” he said.
What encourages Butera is the immensity of the property and the richness of what has already been built. “I mean, you look at this place, the money that’s in the ground, nobody could afford to do that now. But the good news is it’s already here. We’ve got it. The business needs to evolve, but the foundation that exists is unbelievable.”
A successful turnaround artist does more than negotiate favorable terms with lenders. He must tell a story. He elucidates what went wrong in the past and how it will be better in the future. It can help to be blunt about previous management, even harsh — like a defense lawyer pleading for a new trial for his client on the basis that the previous attorney was incompetent. Butera brought in an almost entirely new management team, including people he knew from Las Vegas and Atlantic City. It wasn’t easy to attract them, because everyone had to relocate — and to an entity perceived as failing. “There was poor management here for an extended period of time,” Butera told me. “So we needed to make a lot of changes.”
Revenues have continued to fall at Foxwoods, as they have for the last half-dozen years. But lately, the casino’s profits have been increasing. “We changed our focus to profitability,” Butera said, which sounds a little like something out of a story in The Onion. (The previous focus was on unprofitability?) But what he meant was that Foxwoods had stopped chasing unproductive customers — table-game players whose perks added up to more than their losses — just to increase traffic.
On Feb. 15, the 20th anniversary of casino gambling at Foxwoods, Butera and Rodney Butler, chairman of the Mashantucket Pequot Tribal Nation, proposed a broader plan for how the business would go forward. In one way, it was a return to the past. Foxwoods will expand. But this time, in a different way. It will not be adding gambling capacity. Instead, the plan is to build a 300,000-square-foot retail center, including 75 outlet stores, between the new MGM Grand Tower and the rest of Foxwoods. The area is currently dead space, a long walk for a lot of people who don’t enjoy walking.
Luxury outlet malls are considered a good mix with casinos, because the core customer is the same as a typical slots player: a middle-aged woman with money to spend. “It’s going to be a fabulous tenant roster,” Butera said. “If you’re a retailer, what’s your biggest concern? You’re going to open the store, and nobody’s going to come. We’ve got 40,000 people here every Saturday wanting to do something and not wanting to go anywhere else. They’re captive.”
But of course, nothing is really as profitable as the casino end of a resort casino. No goods or services, in a traditional sense, are exchanged. People come through the door for the experience of risking — and usually losing — their money. Gambling, like professional sports, is entertainment — but without the multimillion-dollar salaries for the performers. And no pro sports franchise generates cash hour by hour, day after day, like a big thriving casino.
By the beginning of this year, Butera and the tribe were close to an agreement with their lenders, though the details will still take months to finalize. The $2.3 billion debt is expected to be reduced to about $1.7 billion, but with lower interest rates that will ensure financial flexibility for Foxwoods.
The plan for the outlet mall was a signal to lenders that two decades of grandiosity at Foxwoods have come to an end. Foxwoods had been an early mover, built to stand astride a huge geographic area — much like the Pequot tribe once dominated a big swath of New England. But as the casino business in America has expanded, Foxwoods’s piece of it has become smaller and will continue to shrink.
“You can’t fight the tide,” Butera said as we sat in his office. He brought up the example of Atlantic City. The State of New Jersey is likely to reap less money from its tables and slots — just as Connecticut and other states that have come to rely on gambling will see their share decrease as others get into the market. But he believes individual casinos with a good plan can survive. “It’s the exact same thing here,” Butera said. “We can still have a great business. We just can’t have the same business we used to have.”
Source: New York Time Magazine
Michael Sokolove is a contributing writer for the New York Times magazine.
_________________________________________________________
Florida hit by "tsunami" of tax identity fraud
Necessary information for every taxpayer
MIAMI - Bruce Parton was only a few weeks from retirement after 30 years as a mail carrier in sunny Florida.
He never lived to fulfill his retirement plan of moving back to a quiet life in the Catskill mountains of New York, not far from where he grew up on Long Island.
Instead, he was gunned down on his daily mail route in December 2010 by members of an identity theft ring who stole his master key as part of a scheme to claim fraudulent tax refunds.
Using stolen names and Social Security numbers, criminals are filing phony electronic tax forms to claim refunds, exploiting a slow-moving federal bureaucracy to collect the money before victims, or the Internal Revenue Service, discover the fraud.
Parton was a victim of what officials say has ballooned into a massive, and dangerous, illegal industry that could cost the nation $21 billion over the next five years, according to the U.S. Treasury Department.
While that is a relatively small sum compared to the $1.1 trillion collected from individual tax payers in the last fiscal year, the crime has been growing by leaps and bounds in the last three years.
"We are on the top of a national trend that is causing a hemorrhage of tax dollars," said Wifredo Ferrer, United States Attorney for south Florida. "It's a tsunami of fraud."
While the IRS says it has detected cases in every state except North Dakota and West Virginia, the fraud's epicenter is Florida, and it is mostly concentrated in Miami and Tampa.
Miami has 46 times the per-capita rate of false tax refund claims than the rest of the country, and 70 times the national average in dollar terms, Ferrer told Reuters.
"For whatever reason, we always tend to lead the nation when it comes to fraud," he said, noting that his office has been battling massive Medicare fraud in recent years that has since spread to other parts of the country.
Florida's high proportion of older residents, who can be more vulnerable to fraud, may be one reason for the high levels of fraud in the state.
Nationwide, the number of cases of tax identity theft detected by authorities sky-rocketed to more than 1.2 million cases in 2012 from only 48,000 in 2008, according to the Treasury Department.
The real number of phony tax filings is likely much higher as the fraud is hard to track, according to a November General Accountability Office report.
GANG LINKS
The tax ID theft problem is particularly troubling as, unlike Medicare fraud, it is associated with violent crime and armed gangs.
Tampa police first detected it in 2010 when officers discovered wanted street criminals engaged in tax fraud. "They were holed up in hotels with laptops churning out tax claims," said congresswoman Kathy Castor, who represents the area and is pressing the IRS to get tougher on the fraud.
When agents raided a Howard Johnson in East Tampa in late 2010, they found suspects smoking marijuana and four laptop computers being used to file fraudulent tax returns on Turbo Tax, the tax preparation software, according to police records.
The suspects had lists of personal information containing more than 1,000 names and confidential personal information, multiple re-loadable debit cards, and records of numerous financial transactions. The investigation revealed that the suspects had been camped out in the hotel room for more than a week filing claims.
Tax identity fraudsters are apparently drawn by the ease of the crime, officials say.
"The scheme is very basic, it works virtually the same in almost every case," said Ferrer. "All they need is your name and the tax ID number."
Armed with that information a refund claim can be filed electronically, making up other details on the form, including addresses, employer data, income and deductions.
Criminals obtain the vital numbers using various tactics, often by bribing office workers with access to personnel files inside companies, as well as large public institutions such as hospitals and schools, according to prosecutors.
Last summer a hacker stole 3.8 million unencrypted tax records from the South Carolina Department of Revenue in what is believed to be the largest security breach of a U.S. tax agency. Authorities say they do not know the hacker's motive.
One North Miami man, Rodney Saint Fleur, was charged last year with using the LexisNexis research service account at the law firm where he worked to access names and Social Security numbers of 26,000 people as part of an identity theft scheme, according to court documents.
Victims in Florida have varied from hospital patients, to Holocaust survivors at an elderly Jewish community center, as well as active duty military serving overseas.
In December, a former U.S. Marine from North Miami was sentenced to nearly five years in prison for stealing the identities of more than 40 fellow Marines stationed at Camp Leatherneck in Afghanistan as part of a plot to claim $54,000 in fraudulent income-tax refunds.
In Parton's case the criminals were after his master key that gives postal workers access to mail drop-off boxes and apartment mailboxes. He was shot twice in the chest by a gunman as part of a plot to steal identities in people's mail for tax refund fraud.
The gunman, Pikerson Mentor, 31, was sentenced last month to life plus 42 years.
More than 600 people turned up for Parton's funeral, including postal workers and people who got to know him on his route. "He had been doing that mail route for 10 years and he always had a smile for everyone," said his daughter, Nina Parton.
The criminals stay under the radar using identities of the elderly or the very young, who are unlikely to be filing for earned income, as well as the deceased. They typically claim small refunds, around $3,000, but use multiple identities, with payments often made to pre-paid debit cards.
FIGHTING BACK
The IRS said last week it is intensifying a crackdown on identify theft, with 3,000 agents devoted to tackling the problem, double the number assigned in 2011.
The number of IRS criminal investigations into identity theft more than tripled in the year to September 2012, and it was on pace to double again this year, acting IRS Commissioner Steven Miller told reporters.
The tax collection agency prevented $20 billion in attempted tax refund fraud in fiscal year 2012, up from $14 billion a year earlier, he said.
"It's one of the biggest challenges that faces the IRS today," Miller said. "We're doing much better on all fronts but we have much more to do."
Despite the increase in investigations, the agency still had a backlog of 300,000 cases of people waiting for legitimate refunds after they were victims of fraud. It takes an average of six months to resolve a case, Miller said.
"The IRS have put a lot of resources on it, but they always seem to be behind the curve," said Keith Fogg, a tax professor at Villanova University School of Law.
Electronic filing, which now accounts for 80 percent of returns and was introduced to speed up delivery of refunds, has made the system more vulnerable to fraud.
The IRS is seeking to speed up the loading of data from W-2 payroll forms issued at the beginning of the tax season, a time lapse which gives fraudsters a window of opportunity to file using false data.
The IRS is also looking for ways to authenticate the identity of tax filers at the time of filing to pre-empt fraud, as well as working with the Social Security Administration to limit access to a registry of social security data of deceased tax payers, the so-called "Death Master File", a frequent target of fraud.
"We will not be prosecuting our way out of this. That's not going to be the answer. We're going to have to make it more and more difficult for criminals to profit from this behavior," said Miller. "If they're not successful they will move onto something else."
Source: Reuters News
___________________________________________________________________
Necessary information for every taxpayer
MIAMI - Bruce Parton was only a few weeks from retirement after 30 years as a mail carrier in sunny Florida.
He never lived to fulfill his retirement plan of moving back to a quiet life in the Catskill mountains of New York, not far from where he grew up on Long Island.
Instead, he was gunned down on his daily mail route in December 2010 by members of an identity theft ring who stole his master key as part of a scheme to claim fraudulent tax refunds.
Using stolen names and Social Security numbers, criminals are filing phony electronic tax forms to claim refunds, exploiting a slow-moving federal bureaucracy to collect the money before victims, or the Internal Revenue Service, discover the fraud.
Parton was a victim of what officials say has ballooned into a massive, and dangerous, illegal industry that could cost the nation $21 billion over the next five years, according to the U.S. Treasury Department.
While that is a relatively small sum compared to the $1.1 trillion collected from individual tax payers in the last fiscal year, the crime has been growing by leaps and bounds in the last three years.
"We are on the top of a national trend that is causing a hemorrhage of tax dollars," said Wifredo Ferrer, United States Attorney for south Florida. "It's a tsunami of fraud."
While the IRS says it has detected cases in every state except North Dakota and West Virginia, the fraud's epicenter is Florida, and it is mostly concentrated in Miami and Tampa.
Miami has 46 times the per-capita rate of false tax refund claims than the rest of the country, and 70 times the national average in dollar terms, Ferrer told Reuters.
"For whatever reason, we always tend to lead the nation when it comes to fraud," he said, noting that his office has been battling massive Medicare fraud in recent years that has since spread to other parts of the country.
Florida's high proportion of older residents, who can be more vulnerable to fraud, may be one reason for the high levels of fraud in the state.
Nationwide, the number of cases of tax identity theft detected by authorities sky-rocketed to more than 1.2 million cases in 2012 from only 48,000 in 2008, according to the Treasury Department.
The real number of phony tax filings is likely much higher as the fraud is hard to track, according to a November General Accountability Office report.
GANG LINKS
The tax ID theft problem is particularly troubling as, unlike Medicare fraud, it is associated with violent crime and armed gangs.
Tampa police first detected it in 2010 when officers discovered wanted street criminals engaged in tax fraud. "They were holed up in hotels with laptops churning out tax claims," said congresswoman Kathy Castor, who represents the area and is pressing the IRS to get tougher on the fraud.
When agents raided a Howard Johnson in East Tampa in late 2010, they found suspects smoking marijuana and four laptop computers being used to file fraudulent tax returns on Turbo Tax, the tax preparation software, according to police records.
The suspects had lists of personal information containing more than 1,000 names and confidential personal information, multiple re-loadable debit cards, and records of numerous financial transactions. The investigation revealed that the suspects had been camped out in the hotel room for more than a week filing claims.
Tax identity fraudsters are apparently drawn by the ease of the crime, officials say.
"The scheme is very basic, it works virtually the same in almost every case," said Ferrer. "All they need is your name and the tax ID number."
Armed with that information a refund claim can be filed electronically, making up other details on the form, including addresses, employer data, income and deductions.
Criminals obtain the vital numbers using various tactics, often by bribing office workers with access to personnel files inside companies, as well as large public institutions such as hospitals and schools, according to prosecutors.
Last summer a hacker stole 3.8 million unencrypted tax records from the South Carolina Department of Revenue in what is believed to be the largest security breach of a U.S. tax agency. Authorities say they do not know the hacker's motive.
One North Miami man, Rodney Saint Fleur, was charged last year with using the LexisNexis research service account at the law firm where he worked to access names and Social Security numbers of 26,000 people as part of an identity theft scheme, according to court documents.
Victims in Florida have varied from hospital patients, to Holocaust survivors at an elderly Jewish community center, as well as active duty military serving overseas.
In December, a former U.S. Marine from North Miami was sentenced to nearly five years in prison for stealing the identities of more than 40 fellow Marines stationed at Camp Leatherneck in Afghanistan as part of a plot to claim $54,000 in fraudulent income-tax refunds.
In Parton's case the criminals were after his master key that gives postal workers access to mail drop-off boxes and apartment mailboxes. He was shot twice in the chest by a gunman as part of a plot to steal identities in people's mail for tax refund fraud.
The gunman, Pikerson Mentor, 31, was sentenced last month to life plus 42 years.
More than 600 people turned up for Parton's funeral, including postal workers and people who got to know him on his route. "He had been doing that mail route for 10 years and he always had a smile for everyone," said his daughter, Nina Parton.
The criminals stay under the radar using identities of the elderly or the very young, who are unlikely to be filing for earned income, as well as the deceased. They typically claim small refunds, around $3,000, but use multiple identities, with payments often made to pre-paid debit cards.
FIGHTING BACK
The IRS said last week it is intensifying a crackdown on identify theft, with 3,000 agents devoted to tackling the problem, double the number assigned in 2011.
The number of IRS criminal investigations into identity theft more than tripled in the year to September 2012, and it was on pace to double again this year, acting IRS Commissioner Steven Miller told reporters.
The tax collection agency prevented $20 billion in attempted tax refund fraud in fiscal year 2012, up from $14 billion a year earlier, he said.
"It's one of the biggest challenges that faces the IRS today," Miller said. "We're doing much better on all fronts but we have much more to do."
Despite the increase in investigations, the agency still had a backlog of 300,000 cases of people waiting for legitimate refunds after they were victims of fraud. It takes an average of six months to resolve a case, Miller said.
"The IRS have put a lot of resources on it, but they always seem to be behind the curve," said Keith Fogg, a tax professor at Villanova University School of Law.
Electronic filing, which now accounts for 80 percent of returns and was introduced to speed up delivery of refunds, has made the system more vulnerable to fraud.
The IRS is seeking to speed up the loading of data from W-2 payroll forms issued at the beginning of the tax season, a time lapse which gives fraudsters a window of opportunity to file using false data.
The IRS is also looking for ways to authenticate the identity of tax filers at the time of filing to pre-empt fraud, as well as working with the Social Security Administration to limit access to a registry of social security data of deceased tax payers, the so-called "Death Master File", a frequent target of fraud.
"We will not be prosecuting our way out of this. That's not going to be the answer. We're going to have to make it more and more difficult for criminals to profit from this behavior," said Miller. "If they're not successful they will move onto something else."
Source: Reuters News
___________________________________________________________________
For April 2013 tax filing
See the warning close to the beginning of this tab
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for that year's information
For April 2013 tax filing
Click green: Don't make these tax-filing mistakes
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See the warning close to the beginning of this tab
This advice article is replaced every year
for that year's information
For April 2013 tax filing
Click green: Don't make these tax-filing mistakes
In case the link is expired, the article is in full just below
Online Matchmaker for Tax Preparers and Clients
Date: February 2012
Click green for further info
The traditional way to find a tax preparer is to ask your friends and family for a recommendation. But what if you don't want to go the word-of-mouth route -- and risk ending up with your eccentric second cousin doing your taxes (or your ignorant but well-meaning friend's idea of a good accountant)?
Glen Ross, an accountant on Long Island, thinks he has the answer: A new Web site that aims to match taxpayers with preparers online.
The site is Prosado.com. Mr. Ross concedes that it doesn't really mean anything, although he says it is derived, sort of, from the root of the words for "to bid,'' in Latin. It has signed up about 400 tax preparers in more than 40 states and is seeking consumers who need their tax returns prepared.
Mr. Ross said he noticed that over the last year or two, the number of inquiries he received from clients who had located him online was increasing. It seemed to him as though consumers were ready to consider new ways of finding tax preparers other than through the traditional word-of-mouth.
Here's how it works. You register at Prosado, which requires giving your name and e-mail address and choosing a password. (You don't have to provide any financial details until you accept a bid and communicate with the preparer.) You designate what sort of criteria you're seeking in a preparer, like an advanced accounting degree, years of experience, etc. You can also indicate if you prefer someone who has offices close to you.
(Mr. Ross says the idea is that the selection shouldn't always be based on the lowest bid but rather on whether the preparer is best-suited to your requirements.)
Then you go down a checklist and mark what type tax-related documents you have, whether you've made any charitable contributions, etc. Based on that information -- say, you have a W-2 (wages), two 1099s (miscellaneous income), a dividend statement and form for mortgage interest -- participating preparers submit bids for your business.
Preparers pay $500 to register with Prosado and must have an I.R.S.-issued "preparer tax-identification number," or P.T.I.N. (Mr. Ross notes that the recent requirement that all tax preparers receive a P.T.I.N. is being challenged in court, but Prosado is maintaining the criteria for its participating preparers.) Preparers also must indicate if they're independent or affiliated with a tax-preparation franchise.
Once you select a bid, Prosado charges your credit card and holds the payment until you and your preparer sign off that the work has been completed to everyone's satisfaction.
You have two days after accepting a bid to contact the preparer and do a bit of due diligence (you get two extra days, for a total of four, if the preparer is new and doesn't have any client ratings listed on the site). If you decide you're not comfortable, you can cancel for a refund, less a fee of $15.
This is the first tax season Prosado has been available. About 20 request for bids have been submitted, but Mr. Ross notes that it's still early in the tax season.
Would you be comfortable working with a tax preparer you met online?
Source: NYT
_____________________________________________
Cheating on Taxes Is Not Cool,
Say Most (87 %) Americans
Date: February 2013
Only 11 % think it's OK to cheat, either a little or as much as possible
Article 1 of 2
Click green for further info
Americans may make plenty of jokes about cheating on their taxes, but a new survey finds that in reality most don't think it's OK to rob the tax man. Or at least, that's what they're telling the IRS Oversight Board.
The 2012 Taxpayer Attitude Survey (next below as the article 2 of 2), released by the independent oversight board, finds that 87 percent of Americans don't think it's OK to cheat on your taxes. That's a three percentage point increase from last year.
Only 11 percent think it's OK to cheat, either a little or as much as possible.
Perhaps more surprising, 95 percent of Americans said their personal integrity influences them to report their taxes honestly, an 8 percentage point increase from five years earlier.
About 63 percent said they are influenced by fear of an audit, while 70 percent are motivated by third-party information that could show them to be a tax cheat.
The IRS Oversight Board, an independent body created by Congress in 1998 to oversee the Internal Revenue Service's actions, completed its annual survey of 1,500 Americans last August and September. The survey has a 3.1 percent margin of error.
If they're going to pay their taxes honestly, most Americans seem to think everyone else should, too.
The survey found that more than 90 percent of Americans think it's important that the IRS ensures that low- and high-income taxpayers, small businesses and corporations honestly pay their taxes, too.
Those results appear to show that Americans have come to feel more strongly in recent years that everyone should pay their fair share of taxes, and the IRS should vigorously enforce tax laws.
The results come as many Americans are either getting ready to file their 2012 income tax returns, or already have done so.
They also follow a bruising battle in Washington over the so-called fiscal cliff, a series of tax hikes and spending cuts that were scheduled to take effect until Congress reached a last-minute deal.
The fiscal cliff agreement raised taxes for wealthy Americans earning $400,000 or more and allowed taxes on capital gains and dividends to go up. It also ended a payroll tax holiday, meaning that most Americans are seeing more of their paycheck going to the tax man for Social Security and other entitlements this year.
Source: The 2012 Taxpayer Attitude Survey (see below, next article, Article 1 of 2)
A full copy of IRS Oversight Board 2012 Taxpayer Attitude Survey can be found at the Board’s website at www.irsoversightboard.treas.gov.
___________________________________________________________________
Tax filing
Don't You Dare Deduct These Expenses! - BUT .....
Every tax-filing season, the great quest by filers is to find the most tax deductions. But there are some deductions you should steer clear of.
If you claim these wrong write-offs, you'll deduct expenses that don't meet Internal Revenue Service guidelines.
And that means you'll end up spending time with a tax auditor and paying more in taxes, penalties and interest.
Bankrate doesn't want that to happen to you, so we've put together this list of expenses you might be tempted to claim. Don't you dare!
But don't get too upset. We've also provided some related tax breaks that do pass IRS muster and will lower your tax bill.
Don't deduct homeowners insurance, but ...
The hazard policy you bought to cover damage from fires, tornadoes, hurricanes, winter storms and other disasters, as well as for more-routine mishaps, offers peace of mind. What it doesn't provide is a tax deduction for the insurance premiums.
But if you meet some tax law guidelines, you can deduct private mortgage insurance, or PMI on your 2012 tax return. PMI is the insurance your lender requires you to buy if you don't put down a big enough down payment. PMI premiums are deductible as an itemized expense (it goes on Schedule A with your mortgage interest claim) as long as the mortgage insurance policy was issued in 2007 or later. This tax deduction is in effect through 2013.
You also must meet income requirements. If your adjusted gross income is $100,000 or less (or $50,000 and you're married and filing separately), your full PMI premium amount is deductible. If you make between $100,001 and $109,000, the amount of PMI that you can deduct is reduced. And if your income is more than $109,000 ($54,500 married filing separately), you can't deduct PMI at all.
You can figure your allowable PMI deduction using the work sheet in the Schedule A instructions.
Don't deduct a telephone land line, but ...
You can't deduct the cost of your main home telephone land line, even if you primarily use that phone for your business. The IRS says that the first hard-wired phone line in your home is considered a nondeductible personal expense.
But you can deduct as a business expense the cost of business-related long distance charges on that phone.
If you are an employee, they would be claimed as an unreimbursed business expense on Schedule A.
If you are self-employed, you would count the phone calls as an expense on your Schedule C or C-EZ.
And if you install a second telephone land line specifically for your business, its full cost is deductible.
Don't deduct commuting costs, but ...
The cost of getting to and from your workplace is never deductible. Taking public transportation or driving to work is a personal expense, regardless of how far your home is from your office.
And no, you can't deduct commuting expenses even if you work during the commute.
But you might be able to deduct some commuting costs if you work at two places in one day, whether or not for the same employer. In this case, you can deduct the expense of getting from one workplace to the other.
You also can deduct some expenses related to other work-related travel, such as visits to clients (current and potential) and out-of-office business meetings.
If you're self-employed, these expenses would go on your Schedule C or C-EZ.
If you're an employee, travel costs must be claimed as unreimbursed business expenses. As such, your business and other miscellaneous itemized expenses must exceed 2 percent of your adjusted gross income.
Whatever your business travel situation, be sure to keep good records.
You also could encourage your employer to establish a commuter savings account program. This employee transportation fringe benefit lets workers use pretax dollars to purchase mass-transit passes and pay for parking near work.
Don't deduct your pet, but ...
Yes, your dog or cat is a family member. And yes, some insurance companies now include coverage for Fido or Fluffy in auto policies.
But your affection for your pet or an insurer's willingness to pay for some of your domesticated animal's care doesn't carry any weight with the IRS. So don't dare try claiming your pet as a dependent. Yes, it has been done. And yes, it is disallowed by the IRS when the furry facts are revealed.
You can, however, deduct as itemized medical expenses the costs of buying, training and maintaining a guide dog or other service animal to assist a visually impaired or hearing-impaired person, or a person with other physical disabilities.
Don't deduct Social Security taxes, but ...
You lose a lot of income each payday to Federal Insurance Contributions Act, or FICA, taxes, the money withheld from your checks to pay for your future Social Security benefits. The debate as to whether Social Security will be around when you retire is still raging. But one thing is sure: Don't even think about trying to deduct these taxes.
But if you overpaid this tax, you can get a credit for your Social Security overwithholding. There is a limit on how much FICA taxes can be contributed each year. The tax is withheld on up to the Social Security earnings base, which is adjusted annually for inflation, and which for 2012 is $110,100 and for 2013 is $113,700.
If you had multiple jobs and your combined earnings exceeded the wage base, you probably had too much FICA withheld. You can claim the excess Social Security tax as a credit when you file your tax return.
Don't deduct plastic surgery, but ...
If you simply are following your inner Joan Rivers, the IRS definitely won't let you deduct the costs of your nips and tucks.
The IRS specifically says you generally cannot include in deductible medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis) and liposuction.
But if a surgery is medically prescribed, for instance, a nose job to treat respiratory issues, and you just happen to like the look of your new sniffer, then that's OK. The doctor's decision makes it a medical deduction.
The IRS says: "You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma or a disfiguring disease."
Remember, all your medical expenses, including any allowable plastic surgeries, must come to more than 7.5 percent of your adjusted gross income on your 2012 Schedule A before you can claim them. For the 2013 tax year, the medical deduction threshold is 10 percent of your AGI.
Don't deduct dry cleaning, but ...
Looking sharp at work rests totally on your shoulders. A recent U.S. Tax Court ruling reaffirmed this tax law when the judge disallowed a television anchorwoman's deductions for tens of thousands of dollars in clothing she bought to wear on air.
But you can deduct the cost of dry cleaning or laundry of business uniforms. Under the tax code, that means attire you can't wear anywhere else, although with the ways some folks dress today, that designation could be hard to nail down.
When an outfit is "not suitable for everyday use," the IRS says the costs of upkeep for the apparel can be claimed as an unreimbursed business expense on Schedule A.
Also deductible are the cleaning charges for nonprofit uniforms, for example, an outfit required of hospital volunteers or Boy Scout or Girl Scout troop leaders. Here the costs of the uniform and its maintenance would count as charitable deductions, also claimed on Schedule A.
Don't deduct time for volunteer services, but ...
Your time is valuable, but that doesn't matter to the IRS when it comes to volunteering at a charity.
You can't claim the value of your wages for the hours spent helping out at your favorite nonprofit. Neither can you count as a deduction the value of a project you created, such as a poster that you, a graphic artist, designed for the charity.
But you can deduct other costs associated with your charity work. This includes your mileage in connection with the group's work, which can be claimed on Schedule A at the rate of 14 cents per mile.
You also can claim as a charitable deduction unreimbursed out-of-pocket expenses.
As with all things tax, keep good records. Track your charitable travel and hang on to the receipts for the poster board and special markers you bought just for the nonprofit's poster project.
Don't deduct OTC medication, but ...
Headache and cold treatments from your neighborhood pharmacy shelves have never been tax deductible. There was some confusion here because for a while, the IRS allowed owners of medical flexible spending accounts, or FSAs, to use money in those pretax accounts to pay for over-the-counter drugs.
That option ended when 2011 began. Now you must get a doctor's prescription for OTC medications before the purchase can be reimbursed with FSA funds.
But you still can deduct diagnostic tests, such as store-bought tests for pregnancy and diabetic blood sugar levels.
And the IRS says moms get a tax deduction on breast-feeding supplies, including pumps and bottles, because, like obstetric care, "they are for the purpose of affecting a structure or function of the body of the lactating woman."
Don't deduct kids' overnight camp costs, but ...
When school lets out for the summer, working parents face a child care dilemma: what to do with the youngsters while Mom and Dad are at the office.
Some families send the kids off to summer camp. That's a great experience for the kiddos and eases, at least temporarily, parental child care concerns.
But sleep-away camps, in the summer or any other time of the year, are not tax deductible.
However, if you decide instead to keep the kids at home and simply send them to day camp during the hours you're working, that expense could qualify as a claim for the child and dependent care credit.
If your care costs are for one child, you can count up to $3,000 of care expenses each year toward the credit. The expense amount is doubled for the cost of caring for two or more dependents.
Your actual tax credit can be up to 35 percent of your qualifying expenses, depending upon your income. And while that might not seem like a large percentage, remember that since it's a credit, you get to use it to offset your tax bill dollar for dollar.
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Don't You Dare Deduct These Expenses! - BUT .....
Every tax-filing season, the great quest by filers is to find the most tax deductions. But there are some deductions you should steer clear of.
If you claim these wrong write-offs, you'll deduct expenses that don't meet Internal Revenue Service guidelines.
And that means you'll end up spending time with a tax auditor and paying more in taxes, penalties and interest.
Bankrate doesn't want that to happen to you, so we've put together this list of expenses you might be tempted to claim. Don't you dare!
But don't get too upset. We've also provided some related tax breaks that do pass IRS muster and will lower your tax bill.
Don't deduct homeowners insurance, but ...
The hazard policy you bought to cover damage from fires, tornadoes, hurricanes, winter storms and other disasters, as well as for more-routine mishaps, offers peace of mind. What it doesn't provide is a tax deduction for the insurance premiums.
But if you meet some tax law guidelines, you can deduct private mortgage insurance, or PMI on your 2012 tax return. PMI is the insurance your lender requires you to buy if you don't put down a big enough down payment. PMI premiums are deductible as an itemized expense (it goes on Schedule A with your mortgage interest claim) as long as the mortgage insurance policy was issued in 2007 or later. This tax deduction is in effect through 2013.
You also must meet income requirements. If your adjusted gross income is $100,000 or less (or $50,000 and you're married and filing separately), your full PMI premium amount is deductible. If you make between $100,001 and $109,000, the amount of PMI that you can deduct is reduced. And if your income is more than $109,000 ($54,500 married filing separately), you can't deduct PMI at all.
You can figure your allowable PMI deduction using the work sheet in the Schedule A instructions.
Don't deduct a telephone land line, but ...
You can't deduct the cost of your main home telephone land line, even if you primarily use that phone for your business. The IRS says that the first hard-wired phone line in your home is considered a nondeductible personal expense.
But you can deduct as a business expense the cost of business-related long distance charges on that phone.
If you are an employee, they would be claimed as an unreimbursed business expense on Schedule A.
If you are self-employed, you would count the phone calls as an expense on your Schedule C or C-EZ.
And if you install a second telephone land line specifically for your business, its full cost is deductible.
Don't deduct commuting costs, but ...
The cost of getting to and from your workplace is never deductible. Taking public transportation or driving to work is a personal expense, regardless of how far your home is from your office.
And no, you can't deduct commuting expenses even if you work during the commute.
But you might be able to deduct some commuting costs if you work at two places in one day, whether or not for the same employer. In this case, you can deduct the expense of getting from one workplace to the other.
You also can deduct some expenses related to other work-related travel, such as visits to clients (current and potential) and out-of-office business meetings.
If you're self-employed, these expenses would go on your Schedule C or C-EZ.
If you're an employee, travel costs must be claimed as unreimbursed business expenses. As such, your business and other miscellaneous itemized expenses must exceed 2 percent of your adjusted gross income.
Whatever your business travel situation, be sure to keep good records.
You also could encourage your employer to establish a commuter savings account program. This employee transportation fringe benefit lets workers use pretax dollars to purchase mass-transit passes and pay for parking near work.
Don't deduct your pet, but ...
Yes, your dog or cat is a family member. And yes, some insurance companies now include coverage for Fido or Fluffy in auto policies.
But your affection for your pet or an insurer's willingness to pay for some of your domesticated animal's care doesn't carry any weight with the IRS. So don't dare try claiming your pet as a dependent. Yes, it has been done. And yes, it is disallowed by the IRS when the furry facts are revealed.
You can, however, deduct as itemized medical expenses the costs of buying, training and maintaining a guide dog or other service animal to assist a visually impaired or hearing-impaired person, or a person with other physical disabilities.
Don't deduct Social Security taxes, but ...
You lose a lot of income each payday to Federal Insurance Contributions Act, or FICA, taxes, the money withheld from your checks to pay for your future Social Security benefits. The debate as to whether Social Security will be around when you retire is still raging. But one thing is sure: Don't even think about trying to deduct these taxes.
But if you overpaid this tax, you can get a credit for your Social Security overwithholding. There is a limit on how much FICA taxes can be contributed each year. The tax is withheld on up to the Social Security earnings base, which is adjusted annually for inflation, and which for 2012 is $110,100 and for 2013 is $113,700.
If you had multiple jobs and your combined earnings exceeded the wage base, you probably had too much FICA withheld. You can claim the excess Social Security tax as a credit when you file your tax return.
Don't deduct plastic surgery, but ...
If you simply are following your inner Joan Rivers, the IRS definitely won't let you deduct the costs of your nips and tucks.
The IRS specifically says you generally cannot include in deductible medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis) and liposuction.
But if a surgery is medically prescribed, for instance, a nose job to treat respiratory issues, and you just happen to like the look of your new sniffer, then that's OK. The doctor's decision makes it a medical deduction.
The IRS says: "You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma or a disfiguring disease."
Remember, all your medical expenses, including any allowable plastic surgeries, must come to more than 7.5 percent of your adjusted gross income on your 2012 Schedule A before you can claim them. For the 2013 tax year, the medical deduction threshold is 10 percent of your AGI.
Don't deduct dry cleaning, but ...
Looking sharp at work rests totally on your shoulders. A recent U.S. Tax Court ruling reaffirmed this tax law when the judge disallowed a television anchorwoman's deductions for tens of thousands of dollars in clothing she bought to wear on air.
But you can deduct the cost of dry cleaning or laundry of business uniforms. Under the tax code, that means attire you can't wear anywhere else, although with the ways some folks dress today, that designation could be hard to nail down.
When an outfit is "not suitable for everyday use," the IRS says the costs of upkeep for the apparel can be claimed as an unreimbursed business expense on Schedule A.
Also deductible are the cleaning charges for nonprofit uniforms, for example, an outfit required of hospital volunteers or Boy Scout or Girl Scout troop leaders. Here the costs of the uniform and its maintenance would count as charitable deductions, also claimed on Schedule A.
Don't deduct time for volunteer services, but ...
Your time is valuable, but that doesn't matter to the IRS when it comes to volunteering at a charity.
You can't claim the value of your wages for the hours spent helping out at your favorite nonprofit. Neither can you count as a deduction the value of a project you created, such as a poster that you, a graphic artist, designed for the charity.
But you can deduct other costs associated with your charity work. This includes your mileage in connection with the group's work, which can be claimed on Schedule A at the rate of 14 cents per mile.
You also can claim as a charitable deduction unreimbursed out-of-pocket expenses.
As with all things tax, keep good records. Track your charitable travel and hang on to the receipts for the poster board and special markers you bought just for the nonprofit's poster project.
Don't deduct OTC medication, but ...
Headache and cold treatments from your neighborhood pharmacy shelves have never been tax deductible. There was some confusion here because for a while, the IRS allowed owners of medical flexible spending accounts, or FSAs, to use money in those pretax accounts to pay for over-the-counter drugs.
That option ended when 2011 began. Now you must get a doctor's prescription for OTC medications before the purchase can be reimbursed with FSA funds.
But you still can deduct diagnostic tests, such as store-bought tests for pregnancy and diabetic blood sugar levels.
And the IRS says moms get a tax deduction on breast-feeding supplies, including pumps and bottles, because, like obstetric care, "they are for the purpose of affecting a structure or function of the body of the lactating woman."
Don't deduct kids' overnight camp costs, but ...
When school lets out for the summer, working parents face a child care dilemma: what to do with the youngsters while Mom and Dad are at the office.
Some families send the kids off to summer camp. That's a great experience for the kiddos and eases, at least temporarily, parental child care concerns.
But sleep-away camps, in the summer or any other time of the year, are not tax deductible.
However, if you decide instead to keep the kids at home and simply send them to day camp during the hours you're working, that expense could qualify as a claim for the child and dependent care credit.
If your care costs are for one child, you can count up to $3,000 of care expenses each year toward the credit. The expense amount is doubled for the cost of caring for two or more dependents.
Your actual tax credit can be up to 35 percent of your qualifying expenses, depending upon your income. And while that might not seem like a large percentage, remember that since it's a credit, you get to use it to offset your tax bill dollar for dollar.
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- Standard deduction amounts Source: Bankrate.com ______________________________________________________________________________
IRS Oversight Board Releases 2012 Taxpayer Attitude Survey
Personal Integrity Still Drives Taxpayer Compliance
Tolerance for Cheating on Taxes Shrinks to Low Level
Article 2 of 2
For immediate release
February 26, 2013
Media contact:
Joelle Jordan 202-288-3241
(February 26, 2013) Personal integrity continued to be the foremost influence on taxpayer compliance, according to the IRS Oversight Board 2012 Taxpayer Attitude Survey. Based on a survey of the general public, 95 percent stated that personal integrity had a great deal or somewhat of an influence on whether they report and pay their taxes honestly, compared to 70 percent for third party information reporting to the IRS, and 63 percent for fear of an audit.
Moreover, 87 percent of those surveyed said that it was not at all acceptable to cheat on your taxes – a three percentage point increase over the previous year. Meanwhile, the general public’s tolerance for tax cheating a little here and there or as much as possible dropped to 11 percent, one of the lowest levels ever recorded in the Board’s annual survey which has been conducted since 2002.
“Personal integrity is at the core of our self-assessment tax system,” said Board Chairman Paul Cherecwich, Jr. “The overwhelming majority of American taxpayers play by the rules and expect everyone else to do the same. They don’t tolerate cheating by taxpayers regardless of income, and 96 percent of those surveyed agreed that it was every American’s civic duty to pay his or her fair share of taxes,” he observed.
Overall taxpayer (i.e., the general public’s) satisfaction with interactions with the IRS remained unchanged from last year, with 76 percent reporting they were “very and somewhat satisfied;” however the share who stated they were “very satisfied” grew in 2012 to 41 percent – tying the highest level ever recorded in a Board survey.“ I believe these positive customer service findings are a tribute to the men and women of the IRS,” said the Board Chair. “In spite of budget cuts that have diminished their ranks, IRS employees continue to strive to provide quality service to taxpayers, whether it’s answering a taxpayer’s account question or helping taxpayers navigate a complex tax code. The Board commends them for their dedication and hard work,” Mr. Cherecwich concluded.
The survey also found that 67 percent of respondents supported extra funding for the IRS to assist taxpayers over the phone and in person. This is the highest level ever measured since the Board began asking the question in 2004. There was also pubic recognition of IRS representatives, the IRS website, and paid tax professionals as valuable sources of tax information and advice—with 87 percent or more of the respondents identifying these three sources as very or somewhat valuable sources.
Taxpayer preferences for service channels are also evolving, according to the Board’s survey. While the extent to which taxpayers say they are likely to use the IRS toll-free telephone service and Taxpayer Assistance Center (walk-in) offices has remained generally stable since 2003, there has been general growth in taxpayers’ likely use of more technology-based services, such as those offered over the IRS website. For example, the 2012 survey results indicated that 86 percent of the public stated they were likely to visit the IRS website, up from 72 percent in 2003.
“The 2012 survey confirmed much of what the IRS Oversight Board has heard this past year from taxpayers, practitioners, and IRS employees. There is a growing appetite for more web-based, self-serve options,” observed Board Chair Cherecwich. In addition, the survey also found that 93 percent of the public believes it is very or somewhat important that paid return preparers meet standards of competency to enter the tax preparation business, which includes 77 percent who said it was very important. “Given the important financial and legal implications of filing an accurate tax return coupled with taxpayer reliance on paid return preparers, the vast majority of taxpayers want these preparers to meet competency standards,” concluded Mr. Cherecwich.
A full copy of IRS Oversight Board 2012 Taxpayer Attitude Survey can be found at the Board’s website at www.irsoversightboard.treas.gov.
________________________________
10 Sweet, Often-Overlooked Tax Breaks
Plenty of needed information for your tax return to save your money
Click green for further info
Bankrate.com – date info: Feb 15, 2013
The goal of every taxpayer is to make sure the Internal Revenue Service gets as little as possible. For that to happen, you need to take every tax deduction, credit or other income adjustment you can.
Here are 10 tax breaks -- some for itemizers only, others that any filer can claim -- that often get overlooked but could save you some tax dollars.
1. Additional charitable gifts
Everyone remembers to count the monetary gifts they make to their favorite charities. But expenses incurred while doing charitable work often aren't counted on tax returns.
You can't deduct the value of your time spent volunteering, but if you buy supplies for a group, the cost of that material is deductible. Similarly, if you wear a uniform in doing your good deeds, for example as a hospital volunteer or youth group leader, the costs of that apparel and any cleaning bills also can be counted as charitable donations.
So can the use of your vehicle for charitable purposes, such as delivering meals to the homebound in your community or taking the Boy Scouts or Girls Scouts troop on an outing. The IRS will let you deduct that travel at 14 cents per mile.
2. Moving expenses
Most taxpayers know they can write off many moving expenses when they (1) relocate to take another job. But what about your (2) first job? Yes, the IRS allows this write-off then, too. A recent college graduate who gets a first job at a distance from where he or she has been living is eligible for this tax break.
3. Job hunting costs
While college students can't deduct the costs of hunting for that new job across the country, already-employed workers can. Costs associated with looking for a new job in your present occupation, including fees for resume preparation and employment of outplacement agencies, are deductible as long as you itemize. The one downside here is that these costs, along with other miscellaneous itemized expenses, must exceed 2 percent of your adjusted gross income before they produce any tax savings. But the phone calls, employment agency fees and resume printing costs might be enough to get you over that income threshold.
4. Military reservists' travel expenses
Members of the military reserve forces and National Guard who travel more than 100 miles and stay overnight for the training exercises can deduct related expenses. This includes the cost of lodging and half the cost of meals. If you drive to the training, be sure to track your miles. You can deduct them on your 2012 return at 55.5 cents per mile, along with any parking or toll fees for driving your own car. You get this deduction whether or not you itemize, but you will have to fill out Form 2106.
5. Child, and more, care credit
Millions of parents claim the child and dependent care credit each year to help cover the costs of after-school day care while Mom and Dad work. But some parents overlook claiming the tax credit for child care costs during the summer. This tax break also applies to summer day camp costs. The key here is that the camp is a day-only getaway that supervises the child while the parents work. You can't claim overnight camp costs.
Remember, too, the dual nature of the credit's name: child and dependent. If you have an adult dependent who needs care so that you can work, those expenses can be claimed under this tax credit.
6. Mortgage refinance points
When you buy a house, you get to deduct the points paid on the loan on your tax return for that year of purchase. But if you refinance your home loan, you might be able to deduct those points, too, as long as you use refinanced mortgage proceeds to improve your principal residence.
7. Many medical costs
Taxpayers who itemize deductions know how difficult it often is to reach the 7.5 percent of adjusted gross income threshold required before you can claim any medical expenses. It might be easier to clear that earnings hurdle if you look at miscellaneous medical costs. Some of these include travel expenses to and from medical treatments, insurance premiums you pay for from already-taxed income and even alcohol- or drug-abuse treatments.
These added medical expenses will be even more valuable on your 2013 tax return. Beginning this tax year, a health care reform act provision now requires you have medical expenses of more than 10 percent of your adjusted gross income before you can deduct them.
Self-employed taxpayers who are not covered by any other employer-paid plan, for example, one carried by a spouse, can deduct 100 percent of health insurance premiums as an adjustment to income in the section at the bottom of Page 1 of Form 1040.
8. Retirement tax savings
The retirement savings contribution credit was created to give moderate- and low-income taxpayers an incentive to save. When you contribute to a retirement account, either an individual retirement account (traditional or Roth) or a workplace plan, you can get a tax savings for up to 50 percent of the first $2,000 you put into such accounts. This means you get a $1,000 tax credit, which is a tax break that directly reduces dollar for dollar any tax you owe.
9. Educational expenses
The Internal Revenue Code offers many tax-saving options for individuals who want to further their education. The tuition and fees deduction can help you take up to $4,000 off your taxable income and is available without having to itemize.
The lifetime learning credit could provide some students (or their parents) up to a $2,000 credit.
Don't forget the American opportunity tax credit, which offers a dollar-for-dollar tax break of up to $2,500. This education tax break was created as part of the 2009 stimulus package as a short-term replacement for the Hope tax credit, and was extended through tax year 2017 as part of the American Taxpayer Relief Act of 2012, also known as the "fiscal cliff" tax bill.
10. Energy-efficient home improvements
Generous tax breaks for for energy-efficient home improvements expired at the end of 2010, but some homeowners still might be able to pocket a tax credit of up to $500 on their 2012 and 2013 returns, again thanks to a provision in the fiscal cliff bill, for a few common residential energy upgrades.
The bad news is that the tax credit is just a third of what was previously available. You also now must pay attention to specific spending limits, such as $150 for high-efficiency furnaces and boilers, $300 for air conditioners and heat pumps and $200 for replacement windows. And the overall $500 tax credit cap applies to anyone who received any previous energy tax credit since Jan. 1, 2005.
But if you qualify, the tax break is a tax credit, giving you a dollar-for-dollar reduction of your tax bill. And when it comes to taxes, every dollar saved helps.
Source:
More From Bankrate.com
Search for mortgage, home equity, savings, auto and credit card rates.
Click green for further info
___________________________________________________________________________
Plenty of needed information for your tax return to save your money
Click green for further info
Bankrate.com – date info: Feb 15, 2013
The goal of every taxpayer is to make sure the Internal Revenue Service gets as little as possible. For that to happen, you need to take every tax deduction, credit or other income adjustment you can.
Here are 10 tax breaks -- some for itemizers only, others that any filer can claim -- that often get overlooked but could save you some tax dollars.
1. Additional charitable gifts
Everyone remembers to count the monetary gifts they make to their favorite charities. But expenses incurred while doing charitable work often aren't counted on tax returns.
You can't deduct the value of your time spent volunteering, but if you buy supplies for a group, the cost of that material is deductible. Similarly, if you wear a uniform in doing your good deeds, for example as a hospital volunteer or youth group leader, the costs of that apparel and any cleaning bills also can be counted as charitable donations.
So can the use of your vehicle for charitable purposes, such as delivering meals to the homebound in your community or taking the Boy Scouts or Girls Scouts troop on an outing. The IRS will let you deduct that travel at 14 cents per mile.
2. Moving expenses
Most taxpayers know they can write off many moving expenses when they (1) relocate to take another job. But what about your (2) first job? Yes, the IRS allows this write-off then, too. A recent college graduate who gets a first job at a distance from where he or she has been living is eligible for this tax break.
3. Job hunting costs
While college students can't deduct the costs of hunting for that new job across the country, already-employed workers can. Costs associated with looking for a new job in your present occupation, including fees for resume preparation and employment of outplacement agencies, are deductible as long as you itemize. The one downside here is that these costs, along with other miscellaneous itemized expenses, must exceed 2 percent of your adjusted gross income before they produce any tax savings. But the phone calls, employment agency fees and resume printing costs might be enough to get you over that income threshold.
4. Military reservists' travel expenses
Members of the military reserve forces and National Guard who travel more than 100 miles and stay overnight for the training exercises can deduct related expenses. This includes the cost of lodging and half the cost of meals. If you drive to the training, be sure to track your miles. You can deduct them on your 2012 return at 55.5 cents per mile, along with any parking or toll fees for driving your own car. You get this deduction whether or not you itemize, but you will have to fill out Form 2106.
5. Child, and more, care credit
Millions of parents claim the child and dependent care credit each year to help cover the costs of after-school day care while Mom and Dad work. But some parents overlook claiming the tax credit for child care costs during the summer. This tax break also applies to summer day camp costs. The key here is that the camp is a day-only getaway that supervises the child while the parents work. You can't claim overnight camp costs.
Remember, too, the dual nature of the credit's name: child and dependent. If you have an adult dependent who needs care so that you can work, those expenses can be claimed under this tax credit.
6. Mortgage refinance points
When you buy a house, you get to deduct the points paid on the loan on your tax return for that year of purchase. But if you refinance your home loan, you might be able to deduct those points, too, as long as you use refinanced mortgage proceeds to improve your principal residence.
7. Many medical costs
Taxpayers who itemize deductions know how difficult it often is to reach the 7.5 percent of adjusted gross income threshold required before you can claim any medical expenses. It might be easier to clear that earnings hurdle if you look at miscellaneous medical costs. Some of these include travel expenses to and from medical treatments, insurance premiums you pay for from already-taxed income and even alcohol- or drug-abuse treatments.
These added medical expenses will be even more valuable on your 2013 tax return. Beginning this tax year, a health care reform act provision now requires you have medical expenses of more than 10 percent of your adjusted gross income before you can deduct them.
Self-employed taxpayers who are not covered by any other employer-paid plan, for example, one carried by a spouse, can deduct 100 percent of health insurance premiums as an adjustment to income in the section at the bottom of Page 1 of Form 1040.
8. Retirement tax savings
The retirement savings contribution credit was created to give moderate- and low-income taxpayers an incentive to save. When you contribute to a retirement account, either an individual retirement account (traditional or Roth) or a workplace plan, you can get a tax savings for up to 50 percent of the first $2,000 you put into such accounts. This means you get a $1,000 tax credit, which is a tax break that directly reduces dollar for dollar any tax you owe.
9. Educational expenses
The Internal Revenue Code offers many tax-saving options for individuals who want to further their education. The tuition and fees deduction can help you take up to $4,000 off your taxable income and is available without having to itemize.
The lifetime learning credit could provide some students (or their parents) up to a $2,000 credit.
Don't forget the American opportunity tax credit, which offers a dollar-for-dollar tax break of up to $2,500. This education tax break was created as part of the 2009 stimulus package as a short-term replacement for the Hope tax credit, and was extended through tax year 2017 as part of the American Taxpayer Relief Act of 2012, also known as the "fiscal cliff" tax bill.
10. Energy-efficient home improvements
Generous tax breaks for for energy-efficient home improvements expired at the end of 2010, but some homeowners still might be able to pocket a tax credit of up to $500 on their 2012 and 2013 returns, again thanks to a provision in the fiscal cliff bill, for a few common residential energy upgrades.
The bad news is that the tax credit is just a third of what was previously available. You also now must pay attention to specific spending limits, such as $150 for high-efficiency furnaces and boilers, $300 for air conditioners and heat pumps and $200 for replacement windows. And the overall $500 tax credit cap applies to anyone who received any previous energy tax credit since Jan. 1, 2005.
But if you qualify, the tax break is a tax credit, giving you a dollar-for-dollar reduction of your tax bill. And when it comes to taxes, every dollar saved helps.
Source:
More From Bankrate.com
Search for mortgage, home equity, savings, auto and credit card rates.
Click green for further info
___________________________________________________________________________
One generous $7,500 tax credit has turned into an IRS minefield for many people
Avoid These 10 Common Tax-Filing Mistakes
Avoid These 10 Common Tax-Filing Mistakes
Thanks to tax preparation software, more of us are making fewer mistakes on our annual tax returns. But still, just one slip in entering information on your computer could end up costing you, either in the form of a larger tax bill or a smaller refund.
And even if a mistake -- either on your computer or paper forms -- doesn't cost you cash, it could delay the receipt of any refund you're expecting.
To get exactly what you should from the Internal Revenue Service, as quickly as possible, look out for these tax-filing pitfalls. A few are new, thanks to recent law changes. Others are perennial problems taxpayers face each filing season. With a little care, you can avoid them all.
1. Pay your Roth conversion taxes
A lot of taxpayers have taken advantage of the tax law change that now allows anyone, regardless of income, to convert a traditional individual retirement account to a Roth IRA. But if you made such a change in 2010 when this conversion was first allowed, you have a tax task to take care of on your 2012 return. A special provision allowed individuals who moved their money into a Roth IRA in 2010 to spread the taxes due on converted amounts equally over the 2011 and 2012 tax years. The first half of those conversion taxes was due with your 2011 tax return. Make sure you pay the rest of the taxes with your 2012 return.
2. Homebuyer tax credit complications
Since its creation, the first-time homebuyer credit went through significant changes. It started as a $7,500 interest-free loan from Uncle Sam, changed into a true tax credit of up to $8,000 for a first-time buyer and added a $6,500 tax credit for a previous homeowner moving up to another house.
All the revisions to eligible buyer guidelines, purchase time frames, income thresholds, home price restrictions and payback requirements are a tax-filing minefield. If you're not careful, a mistake here could end up costing you the credit or at least slowing down the processing of your return.
If you're paying back the original $7,500 tax credit, the IRS has made the repayment process a bit simpler by eliminating in many cases the requirement that taxpayers file Form 5405. Now some individuals who are repaying the credit can just write the repayment amount they are including with their taxes directly on Form 1040.
3. Math miscalculations
The most common error on tax returns, year after year, is bad math. Mistakes in arithmetic or in transferring figures from one schedule to another will get you an immediate correction notice. Math mistakes also can reduce your tax refund or result in you owing more tax than you thought.
Using a tax software program to file your return can help reduce math errors. The built-in calculators do the work for you, adding, subtracting and inserting numbers on additional forms as needed. But you still have to make sure your initial numbers are correct. Entering $3,500 when the real figure is $5,300 makes a lot of tax difference. Getting the numbers right is crucial because you can be sure the IRS will be double-checking numerical entries against its copies of your tax statements (W-2, 1099s and the like). When IRS examiners find a discrepancy, they'll definitely let you know and, in many cases, will correct your mistake and refigure your taxes for you. Don't give them the chance. Make sure your math entries are right.
4. Direct deposit dangers
Taxpayers can have a refund directly deposited into multiple bank accounts. This option is a great way to save your refund money, but the more numbers you enter on a tax form, the more chances you have to enter them incorrectly. And a wrong account or routing number could cause you to lose your refund entirely.
You can divide your refund into three accounts by filing Form 8888 along with your individual return. It's not a difficult document to complete, but if you put in wrong account numbers, your refund could end up in someone else's account or be sent back to the IRS. Either way, you might not be able to retrieve your refund because there is no IRS procedure for replacing lost electronically transferred funds.
Incorrect account numbers aren't just a problem when a refund is split multiple ways. Even if your refund is going to just one account, make very sure you enter your account and bank routing numbers correctly.
5. Additional income, additional filing work
Did you have a side job this year? If so, as a contractor you probably received a Form 1099-MISC detailing the extra earnings.
What about savings and investment accounts? For these, you should have received Form 1099-INT and Form 1099 DIV statements.
In each 1099 instance, the IRS knows precisely how much extra money, either as wages or unearned investment income, you made as soon as you did, thanks to the copies of your 1099 forms that went to the tax agency.
If you forget to include any of these earnings on your return, the IRS examiners will let you know you owe taxes on it, too. And depending on when your oversight is discovered, you also could owe penalties and interest on the unreported earnings.
6. Filing status errors
Make sure you choose the correct filing status for your situation. You have five options, and each could make a difference in your ultimate tax bill.
If this is the first tax-filing season you've been divorced and you now are a single parent, head-of-household probably will be more beneficial. And you're still married, but you and your spouse are thinking about filing separate tax returns? That works in some cases, but not all.
Make sure you know what each tax-filing status entails, and choose the one that best fits your personal and tax situation.
7. Social Security number oversights
Because the IRS stopped putting taxpayer Social Security numbers on tax package labels in response to privacy concerns, some taxpayers forget to write in their identification numbers. Your tax ID number is crucial because there are so many transactions -- income statements, savings account interest, retirement plan contributions -- keyed to this number.
The nine-digit sequence also is vital to claim several tax credits, such as the child tax and additional child tax credits as well as ones for educational expenses and dependent care costs.
And make sure the names associated with the Social Security numbers match Social Security Administration records. A difference here also will cause the IRS to kick out or slow down your return.
8. Complete charitable contributions
Did you give to charitable groups last year? All types of donations, from cash to cars, could be valuable tax deductions, so make sure you count them all when you file. Be sure to follow the donation tax rules, the most important being that you give to a qualified organization -- that is, one that has tax-exempt status with the IRS. Also be careful when calculating any gifts of clothing and household items. Tax law now requires that these donations be in good or better condition or the deduction is disallowed.
9. Signature required
Sign and date your return. The IRS won't process it if it's missing a John Hancock, and that means on e-filed returns, too. Taxpayers filing electronically must sign the return electronically using a personal identification number, or PIN. To verify your identity, you'll have to provide the PIN you used last year or your adjusted gross income from your previous year's tax return.
Your tax software should walk you through the e-signature process, but if you're still mailing your return, don't be in such a hurry that you stuff your 1040 in the preaddressed IRS envelope without signing it. And if it's a joint filing, you and your spouse must sign.
10. Missing the deadline
Don't miss the impending April 15 tax deadline. If you owe the IRS and that's the reason you're thinking of not filing, that's a bad idea. If you don't file a return, you'll face even stiffer penalties. So send in the paperwork, pay what you cann and talk with the IRS or your tax professional about the next steps.
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Click green titles fo further information
And even if a mistake -- either on your computer or paper forms -- doesn't cost you cash, it could delay the receipt of any refund you're expecting.
To get exactly what you should from the Internal Revenue Service, as quickly as possible, look out for these tax-filing pitfalls. A few are new, thanks to recent law changes. Others are perennial problems taxpayers face each filing season. With a little care, you can avoid them all.
1. Pay your Roth conversion taxes
A lot of taxpayers have taken advantage of the tax law change that now allows anyone, regardless of income, to convert a traditional individual retirement account to a Roth IRA. But if you made such a change in 2010 when this conversion was first allowed, you have a tax task to take care of on your 2012 return. A special provision allowed individuals who moved their money into a Roth IRA in 2010 to spread the taxes due on converted amounts equally over the 2011 and 2012 tax years. The first half of those conversion taxes was due with your 2011 tax return. Make sure you pay the rest of the taxes with your 2012 return.
2. Homebuyer tax credit complications
Since its creation, the first-time homebuyer credit went through significant changes. It started as a $7,500 interest-free loan from Uncle Sam, changed into a true tax credit of up to $8,000 for a first-time buyer and added a $6,500 tax credit for a previous homeowner moving up to another house.
All the revisions to eligible buyer guidelines, purchase time frames, income thresholds, home price restrictions and payback requirements are a tax-filing minefield. If you're not careful, a mistake here could end up costing you the credit or at least slowing down the processing of your return.
If you're paying back the original $7,500 tax credit, the IRS has made the repayment process a bit simpler by eliminating in many cases the requirement that taxpayers file Form 5405. Now some individuals who are repaying the credit can just write the repayment amount they are including with their taxes directly on Form 1040.
3. Math miscalculations
The most common error on tax returns, year after year, is bad math. Mistakes in arithmetic or in transferring figures from one schedule to another will get you an immediate correction notice. Math mistakes also can reduce your tax refund or result in you owing more tax than you thought.
Using a tax software program to file your return can help reduce math errors. The built-in calculators do the work for you, adding, subtracting and inserting numbers on additional forms as needed. But you still have to make sure your initial numbers are correct. Entering $3,500 when the real figure is $5,300 makes a lot of tax difference. Getting the numbers right is crucial because you can be sure the IRS will be double-checking numerical entries against its copies of your tax statements (W-2, 1099s and the like). When IRS examiners find a discrepancy, they'll definitely let you know and, in many cases, will correct your mistake and refigure your taxes for you. Don't give them the chance. Make sure your math entries are right.
4. Direct deposit dangers
Taxpayers can have a refund directly deposited into multiple bank accounts. This option is a great way to save your refund money, but the more numbers you enter on a tax form, the more chances you have to enter them incorrectly. And a wrong account or routing number could cause you to lose your refund entirely.
You can divide your refund into three accounts by filing Form 8888 along with your individual return. It's not a difficult document to complete, but if you put in wrong account numbers, your refund could end up in someone else's account or be sent back to the IRS. Either way, you might not be able to retrieve your refund because there is no IRS procedure for replacing lost electronically transferred funds.
Incorrect account numbers aren't just a problem when a refund is split multiple ways. Even if your refund is going to just one account, make very sure you enter your account and bank routing numbers correctly.
5. Additional income, additional filing work
Did you have a side job this year? If so, as a contractor you probably received a Form 1099-MISC detailing the extra earnings.
What about savings and investment accounts? For these, you should have received Form 1099-INT and Form 1099 DIV statements.
In each 1099 instance, the IRS knows precisely how much extra money, either as wages or unearned investment income, you made as soon as you did, thanks to the copies of your 1099 forms that went to the tax agency.
If you forget to include any of these earnings on your return, the IRS examiners will let you know you owe taxes on it, too. And depending on when your oversight is discovered, you also could owe penalties and interest on the unreported earnings.
6. Filing status errors
Make sure you choose the correct filing status for your situation. You have five options, and each could make a difference in your ultimate tax bill.
If this is the first tax-filing season you've been divorced and you now are a single parent, head-of-household probably will be more beneficial. And you're still married, but you and your spouse are thinking about filing separate tax returns? That works in some cases, but not all.
Make sure you know what each tax-filing status entails, and choose the one that best fits your personal and tax situation.
7. Social Security number oversights
Because the IRS stopped putting taxpayer Social Security numbers on tax package labels in response to privacy concerns, some taxpayers forget to write in their identification numbers. Your tax ID number is crucial because there are so many transactions -- income statements, savings account interest, retirement plan contributions -- keyed to this number.
The nine-digit sequence also is vital to claim several tax credits, such as the child tax and additional child tax credits as well as ones for educational expenses and dependent care costs.
And make sure the names associated with the Social Security numbers match Social Security Administration records. A difference here also will cause the IRS to kick out or slow down your return.
8. Complete charitable contributions
Did you give to charitable groups last year? All types of donations, from cash to cars, could be valuable tax deductions, so make sure you count them all when you file. Be sure to follow the donation tax rules, the most important being that you give to a qualified organization -- that is, one that has tax-exempt status with the IRS. Also be careful when calculating any gifts of clothing and household items. Tax law now requires that these donations be in good or better condition or the deduction is disallowed.
9. Signature required
Sign and date your return. The IRS won't process it if it's missing a John Hancock, and that means on e-filed returns, too. Taxpayers filing electronically must sign the return electronically using a personal identification number, or PIN. To verify your identity, you'll have to provide the PIN you used last year or your adjusted gross income from your previous year's tax return.
Your tax software should walk you through the e-signature process, but if you're still mailing your return, don't be in such a hurry that you stuff your 1040 in the preaddressed IRS envelope without signing it. And if it's a joint filing, you and your spouse must sign.
10. Missing the deadline
Don't miss the impending April 15 tax deadline. If you owe the IRS and that's the reason you're thinking of not filing, that's a bad idea. If you don't file a return, you'll face even stiffer penalties. So send in the paperwork, pay what you cann and talk with the IRS or your tax professional about the next steps.
More From Bankrate.com
Click green titles fo further information
- States with no income tax
- Choosing tax filing status
- The tax joys of parenthood
Below Click on a state
to get a summary of the income, personal
& sales taxes levied there
States with NO income tax
State tax rates: February 2013
Alabama --- Illinois --- Montana --- Rhode Island --- Alaska --- Indiana ---Nebraska
South Carolina --- Arizona --- Iowa --- Nevada --- South Dakota --- Arkansas
Kansas --- New Hampshire ---Tennessee --- California --- Kentucky --- New Jersey Texas --- Colorado --- Louisiana --- New Mexico --- Utah --- Connecticut --- Maine New York --- Vermont --- Delaware --- Maryland --- North Carolina --- Virginia Florida --- Massachusetts --- North Dakota --- Washington --- Georgia --- Michigan Ohio --- Washington, D.C. --- Hawaii --- Minnesota --- Oklahoma --- West Virginia Idaho --- Mississippi --- Oregon --- Wisconsin --- Missouri --- Pennsylvania Wyoming
Read more: http://www.bankrate.com/finance/taxes/check-taxes-in-your-state.aspx#ixzz2KFKYzEYR
Follow us: @Bankrate on Twitter | Bankrate on Facebook
______________________________________________________________
to get a summary of the income, personal
& sales taxes levied there
States with NO income tax
State tax rates: February 2013
Alabama --- Illinois --- Montana --- Rhode Island --- Alaska --- Indiana ---Nebraska
South Carolina --- Arizona --- Iowa --- Nevada --- South Dakota --- Arkansas
Kansas --- New Hampshire ---Tennessee --- California --- Kentucky --- New Jersey Texas --- Colorado --- Louisiana --- New Mexico --- Utah --- Connecticut --- Maine New York --- Vermont --- Delaware --- Maryland --- North Carolina --- Virginia Florida --- Massachusetts --- North Dakota --- Washington --- Georgia --- Michigan Ohio --- Washington, D.C. --- Hawaii --- Minnesota --- Oklahoma --- West Virginia Idaho --- Mississippi --- Oregon --- Wisconsin --- Missouri --- Pennsylvania Wyoming
Read more: http://www.bankrate.com/finance/taxes/check-taxes-in-your-state.aspx#ixzz2KFKYzEYR
Follow us: @Bankrate on Twitter | Bankrate on Facebook
______________________________________________________________
Filing status makes a difference in tax bill
Choosing tax filing status
See the warning close to the beginning of this tab
WARNING
Tax, financial, investment or related information is provided by STAF, Inc. only as your starting point details.
Always consult a competent tax attorney, tax accountant or other competent tax professional.
The information in this article is provided at your own risk.
STAF, Inc. cannot guarantee the information being valid for your situation.
STAF, Inc. is not responsible for any mistakes you may make in your filing.
What's your tax filing status? It may sound like a simple question, but the correct answer could make a difference in your tax bill.
What you ultimately have to pay the Internal Revenue Service rests in large part on your tax filing status. There are five official choices, and the one you pick also determines whether you can take certain tax deductions or exemptions that could lower your final tax bill.
In some cases, your status can even be the deciding factor in whether you have to file at all. So picking the right one when you file is crucial.
1. Single: This applies to never-married, unmarried and divorced taxpayers. You are considered single for the whole year if you were legally single on the last day of the year.
2. Married filing jointly: In this case, as with the single status, you are considered married for the whole tax year as long as you were married on the last day of the tax year. And regardless of what your state says about marriage for same-sex couples, federal law -- and therefore the IRS for tax purposes -- considers only a legal union between a man and woman as a marriage.
When you file jointly, husband and wife report all their income on one Form 1040. Both filers may be held responsible for any tax (or subsequent penalty and interest) due. This is the case even if only one spouse earned all the income. On the plus side, the married-filing-jointly option does offer some tax credits that are not available under other filing statuses.
3. Married filing separately: Here couples segregate their income, deductions and exemptions and file two individual returns. This might be advisable in cases where, for example, one spouse had large medical expenses. Because these costs must exceed a percentage of the filer's income before they are deductible, using only the eligible spouse's earnings by filing separately might make that deduction threshold more attainable.
In most cases, however, couples find they will generally pay more combined tax on separate returns than they would on a joint return. In some cases, at least one spouse's tax rate ends up higher than it would have been under a joint filing. Also, when a husband and wife file separate returns, they lose some tax credits and deductions they could have taken if they'd filed jointly.
Unless you are required to file separately, you should figure your tax on a joint return and on separate returns. This way you can make sure you are using the method that results in the lowest combined tax.
__________________________________________________
Choosing tax filing status
See the warning close to the beginning of this tab
WARNING
Tax, financial, investment or related information is provided by STAF, Inc. only as your starting point details.
Always consult a competent tax attorney, tax accountant or other competent tax professional.
The information in this article is provided at your own risk.
STAF, Inc. cannot guarantee the information being valid for your situation.
STAF, Inc. is not responsible for any mistakes you may make in your filing.
What's your tax filing status? It may sound like a simple question, but the correct answer could make a difference in your tax bill.
What you ultimately have to pay the Internal Revenue Service rests in large part on your tax filing status. There are five official choices, and the one you pick also determines whether you can take certain tax deductions or exemptions that could lower your final tax bill.
In some cases, your status can even be the deciding factor in whether you have to file at all. So picking the right one when you file is crucial.
1. Single: This applies to never-married, unmarried and divorced taxpayers. You are considered single for the whole year if you were legally single on the last day of the year.
2. Married filing jointly: In this case, as with the single status, you are considered married for the whole tax year as long as you were married on the last day of the tax year. And regardless of what your state says about marriage for same-sex couples, federal law -- and therefore the IRS for tax purposes -- considers only a legal union between a man and woman as a marriage.
When you file jointly, husband and wife report all their income on one Form 1040. Both filers may be held responsible for any tax (or subsequent penalty and interest) due. This is the case even if only one spouse earned all the income. On the plus side, the married-filing-jointly option does offer some tax credits that are not available under other filing statuses.
3. Married filing separately: Here couples segregate their income, deductions and exemptions and file two individual returns. This might be advisable in cases where, for example, one spouse had large medical expenses. Because these costs must exceed a percentage of the filer's income before they are deductible, using only the eligible spouse's earnings by filing separately might make that deduction threshold more attainable.
In most cases, however, couples find they will generally pay more combined tax on separate returns than they would on a joint return. In some cases, at least one spouse's tax rate ends up higher than it would have been under a joint filing. Also, when a husband and wife file separate returns, they lose some tax credits and deductions they could have taken if they'd filed jointly.
Unless you are required to file separately, you should figure your tax on a joint return and on separate returns. This way you can make sure you are using the method that results in the lowest combined tax.
__________________________________________________
Detailed information everyone of us needs and most do not know
Disputing a Charge on Your Credit Card
Date info: January 25, 2013
This article info is more important than you realize = please study & apply as necessary
If you have ever disputed a charge with your debit or credit card company, you know what a potent weapon this type of complaint can be.
The card issuer generally takes your word against the merchant or service provider at the outset, restores the money to your bank account temporarily or issues a credit and then goes about its investigation. It essentially demands that the merchant or service provider who supposedly did you wrong prove that it did no wrong at all.
But if you have never wielded this power tool of consumerism, there are a few things you should know first. The cat and mouse game that goes on behind the scenes can be tilted much more — or much less — in your favor, depending on which charges you dispute and how you go about disputing them.
Chances are you will need to use the dispute process sooner or later. We live in a world where you often cannot use cash to buy cocktails on an airplane and any individual can attach a card reader to a smartphone and accept card payments from anyone else. Mistakes will inevitably be made.
Meanwhile, all sorts of online businesses depend on recurring subscription revenue. Mistakes will inevitably be made again. Oops, we somehow forgot to honor your request to cancel your subscription. Oops, we forgot again. Oh, but now it will take until the next billing cycle. Sorry!
You have had the legal right to correct these mistakes ever since 1975, when the Fair Credit Billing Act went into effect. The law dictates that there be a process by which you can question unauthorized charges, billing errors and transactions involving goods or services you never received or merchants did not deliver in the way they were supposed to.
This creates problems for merchants. Plenty of people pretend that they never received products that were supposed to arrive by mail and then dispute the charge, hoping their card company won’t be able to figure out that they are liars and thieves.
Even legitimate beefs or misunderstandings create many problems. In the 12 months ending Sept. 30, 2012, Visa processed $2.07 trillion in transactions in the United States. While cardholders disputed just 0.037 percent of that amount, that adds up to $765.9 million in transactions under review. According to MasterCard, 0.05 percent of its transactions worldwide are subjects of dispute, so its card issuers will probably deal with over 15 million questionable charges this year. Several million of these disputes involve outright fraud, though none of the card networks would break out the exact percentages. Avivah Litan, an analyst at Gartner, estimates that 20 percent of disputes involve fraud.
The rest require a lot of manual labor. Every time someone initiates a dispute, the bank that issued the card must look into it. Someone has to contact the merchant and wait for a reply that may include a receipt or other documentation.
Merchants must carve out time to respond to each dispute. They also pay one-time fees for the privilege and may end up paying higher overall fees to accept cards if disputes are too frequent. Or they just get cut off from accepting cards altogether.
The true cost per dispute to the banks of all of this back and forth ranges from $10 to $40, according to a 2010 estimate by the consultants at First Annapolis. Given that cost, according to Scott Reaser, a principal there, many banks will simply absorb the disputed charge on a consumer’s bill and never contact the merchant if it is below a certain threshold.
That number will differ for every bank, though it probably averages around $25. Some large retailers, it turns out, have similar strategies, according to a 2009 Government Accountability Office report. So even if the bank contacts a merchant about the dispute, the merchant may allow the customer to win the dispute without bothering to investigate the complaint. The report did not say what the threshold was, and the G.A.O. is not permitted to identify the retailers it spoke to.
It is tempting to conclude that you can get away with disputing any old thing under $25 and not have to worry about tangling with the merchant again. But given that frequent disputes can lead to higher costs down the road, some merchants vow to fight every one.
Or they have consultants who make them fight as a condition of offering their assistance. That’s how Monica Eaton-Cardone, the co-founder of Chargebacks911.com, works with her merchant clients to help them keep their dispute rates down and get out (or stay out) of trouble with the companies that control their ability to accept cards.
Why does she operate that way? The answer begins with her own painful experience in the direct response business, selling things to people who sometimes didn’t like what they received in the mail or didn’t realize they had signed up for a recurring service with regular bills.
Faced with the threat of losing her ability to accept cards if the number of disputes didn’t decline, she realized there was a very basic problem with the process: she concluded that over 70 percent of the people disputing charges with their bank never called her, the merchant, to complain first.
“When you go to a bank’s Web site and you see a button that says, ‘Dispute This Transaction,’ it doesn’t say that this is going to hurt the merchant and could actually increase the costs of buying a service from this business,” she said. “It just tells you that there’s a quick and easy way to cancel your subscription right here. And you can get a refund! If you don’t want to pay your whole bill, just click on this button.”
She is not blaming consumers. They are just doing what their banks prompt them to do. “But not fighting back is sending the wrong message to consumers and card companies,” she said. “Letting the dispute go tells them that this is a sure way to get a no-questions-asked refund.”
It is unclear how effective this campaign has been, and you could be forgiven for thinking that the dispute process is something of a free-for-all. After all, some service providers resort to outright intimidation to keep their dispute numbers low.
The proprietors at Enchanted Attire, an online clothing retailer, wish to inform you that “you agree not to file a credit card or debit card chargeback with regard to any purchase” and that “in the event that a chargeback is placed or threatened on a purchase, we also reserve the right to report the incident for inclusion in chargeback abuser database(s) of our choosing.” Oh, and by the way, “being listed on such databases may make it more difficult or even impossible for you to use (any of) your credit card(s) on future purchases with us or other merchants.”
Movers have been known to do this, too.This violates Visa’s and MasterCard’s rules, for starters, and none of the experts I spoke with this week knew of anyone keeping a database for this purpose that merchants could contribute to and that other merchants could gain access to. No one from Enchanted Attire returned my messages to shed light on this.
It shouldn’t take threats to keep us in line, though. Jim Van Dyke, chief executive of Javelin Strategy and Research, suggests a simple framework for people who want to wield the dispute weapon and bask in its power but not be totally obnoxious about it.
“The consumer owes the merchant one tangible shot, one wholehearted best effort to make things right,” he said. “But if they breach their commitment, then the consumer should simply escalate it and say goodbye to that merchant.”
MORE IN YOUR MONEY
Click green title below and study the article - interesting, beneficial info
Wealth Matters: What the Small Player Can Expect When Using a Lobbyist
Source: NYT
________________________________________________________
Factual details relating to the U.S. health/sickness care system
- important information -
We Can Be Healthy and Rich
Opinion
by Ezekiel J. Emanuel
An oncologist*), a former White House adviser,
a vice provost at the University of Pennsylvania
*) oncologist is a medical doctor who specializes in the diagnosis and treatment of cancer
Just about everyone agrees that health care in America is too expensive, and that something must be done to control the rising costs. Except for one group: hospitals and the unions representing hospital workers.
They believe that controlling health care costs will hurt the economy and increase unemployment. They point out that hospitals are among the largest employers in many communities and that, unlike other employers, they are adding jobs at a good clip.
But the truth is that bending the health care cost curve will actually spur the economy forward. According to the Council of Economic Advisers, reducing health care cost increases by just 1 percentage point every year would lead to a 4 percent increase in G.D.P. by 2030. In today's dollars, that would mean an extra $600 billion for our economy and an extra $7,000 for the average family.
In some ways, it's easy to sympathize with the hospitals' worries: their concern is that competition in the new insurance exchanges and other changes catalyzed by the Affordable Care Act will result in lower premiums. To stay profitable, insurance companies will have to pressure hospitals to reduce their rates. And since 60 percent of an average hospital's costs are labor, employees will be laid off and wages cut. At a time when hospital support jobs pay about 10 percent more and typically come with more generous benefits than comparable jobs in other industries, it's understandable that health care employees are resistant.
But this line of reasoning is misguided. First, cost control is not the same thing as cost reduction. The financial goal of reforms like reducing hospital re-admissions and hospital-acquired infections and encouraging competition among insurance companies is to stem the rate of growth in health care spending. We spent about $2.8 trillion on health care last year, and the system wastes approximately $700 billion annually, but no one is proposing that these expenditures decline to even $2.6 trillion. Cost control is simply about staving off the date when health care spending exceeds $4 trillion.
In addition, even if hospitals had to restructure their operations to deliver care more efficiently, it wouldn't necessarily mean fewer health care workers over all - any decline in hospital jobs would probably mean an increase in other health-related jobs like home health aides.
Where the opponents of cost control really go wrong is on the macroeconomics. Layoffs in the health care industry would increase unemployment and lower wages, they argue, thereby reducing consumer spending and hurting the economy. But both liberal and conservative economists agree that ever rising health care spending is a huge drag on the economy. As one of the Heritage Foundation's fellows wrote: "If Americans could attain the current level of health for a lower total cost, the resources saved could be used for some other beneficial purpose, and U.S. economic well-being would undoubtedly improve."
There is a good parallel in the agriculture industry. The introduction of tractors with internal combustion engines in the early 20th century caused unemployment among farm workers, but it also increased productivity and made food cheaper. In 1920, about 40 percent of an American family's income went to purchasing food. Today the average family spends approximately 10 percent of its income on food, which means more disposable income to spend on other rewarding items - education, appliances, smartphones, computers - and more jobs in these industries.
Health care will follow a related path. Savings won't just disappear. They'll go into other purchases, often ones that are more valuable, like higher education or rapid transit, creating construction jobs while making our commutes easier. Small businesses, if they don't have to cover ever increasing insurance costs, could instead pay higher wages and hire more workers. The estimated reduction in health care premiums because of the Affordable Care Act will mean that in 2019 average families will pay about $2,000 less than they would have without cost control, freeing up money for purchases or retirement.
Some people may argue that they would take a lower G.D.P. and slower growth if it meant that we were healthier. But this, too, is wrong. There is no link between how much we spend and how healthy we are. Many other countries, including Australia, France and Germany, spend less but perform better on many health care measures. It's true even for different regions in the United States: there is no link between higher spending and better health.
It's clear that, far from creating unemployment and hurting the economy, the more we can control health care costs, the more Americans will prosper. Ultimately, however, this debate should be irrelevant. Health care is about keeping people healthy or fixing them up when they get sick. It is not a jobs program.
Source: The New York Times
___________________________________________________
- important information -
We Can Be Healthy and Rich
Opinion
by Ezekiel J. Emanuel
An oncologist*), a former White House adviser,
a vice provost at the University of Pennsylvania
*) oncologist is a medical doctor who specializes in the diagnosis and treatment of cancer
Just about everyone agrees that health care in America is too expensive, and that something must be done to control the rising costs. Except for one group: hospitals and the unions representing hospital workers.
They believe that controlling health care costs will hurt the economy and increase unemployment. They point out that hospitals are among the largest employers in many communities and that, unlike other employers, they are adding jobs at a good clip.
But the truth is that bending the health care cost curve will actually spur the economy forward. According to the Council of Economic Advisers, reducing health care cost increases by just 1 percentage point every year would lead to a 4 percent increase in G.D.P. by 2030. In today's dollars, that would mean an extra $600 billion for our economy and an extra $7,000 for the average family.
In some ways, it's easy to sympathize with the hospitals' worries: their concern is that competition in the new insurance exchanges and other changes catalyzed by the Affordable Care Act will result in lower premiums. To stay profitable, insurance companies will have to pressure hospitals to reduce their rates. And since 60 percent of an average hospital's costs are labor, employees will be laid off and wages cut. At a time when hospital support jobs pay about 10 percent more and typically come with more generous benefits than comparable jobs in other industries, it's understandable that health care employees are resistant.
But this line of reasoning is misguided. First, cost control is not the same thing as cost reduction. The financial goal of reforms like reducing hospital re-admissions and hospital-acquired infections and encouraging competition among insurance companies is to stem the rate of growth in health care spending. We spent about $2.8 trillion on health care last year, and the system wastes approximately $700 billion annually, but no one is proposing that these expenditures decline to even $2.6 trillion. Cost control is simply about staving off the date when health care spending exceeds $4 trillion.
In addition, even if hospitals had to restructure their operations to deliver care more efficiently, it wouldn't necessarily mean fewer health care workers over all - any decline in hospital jobs would probably mean an increase in other health-related jobs like home health aides.
Where the opponents of cost control really go wrong is on the macroeconomics. Layoffs in the health care industry would increase unemployment and lower wages, they argue, thereby reducing consumer spending and hurting the economy. But both liberal and conservative economists agree that ever rising health care spending is a huge drag on the economy. As one of the Heritage Foundation's fellows wrote: "If Americans could attain the current level of health for a lower total cost, the resources saved could be used for some other beneficial purpose, and U.S. economic well-being would undoubtedly improve."
There is a good parallel in the agriculture industry. The introduction of tractors with internal combustion engines in the early 20th century caused unemployment among farm workers, but it also increased productivity and made food cheaper. In 1920, about 40 percent of an American family's income went to purchasing food. Today the average family spends approximately 10 percent of its income on food, which means more disposable income to spend on other rewarding items - education, appliances, smartphones, computers - and more jobs in these industries.
Health care will follow a related path. Savings won't just disappear. They'll go into other purchases, often ones that are more valuable, like higher education or rapid transit, creating construction jobs while making our commutes easier. Small businesses, if they don't have to cover ever increasing insurance costs, could instead pay higher wages and hire more workers. The estimated reduction in health care premiums because of the Affordable Care Act will mean that in 2019 average families will pay about $2,000 less than they would have without cost control, freeing up money for purchases or retirement.
Some people may argue that they would take a lower G.D.P. and slower growth if it meant that we were healthier. But this, too, is wrong. There is no link between how much we spend and how healthy we are. Many other countries, including Australia, France and Germany, spend less but perform better on many health care measures. It's true even for different regions in the United States: there is no link between higher spending and better health.
It's clear that, far from creating unemployment and hurting the economy, the more we can control health care costs, the more Americans will prosper. Ultimately, however, this debate should be irrelevant. Health care is about keeping people healthy or fixing them up when they get sick. It is not a jobs program.
Source: The New York Times
___________________________________________________
Social Security - Retirement
Contacts - Online Tools - Detailed Information
See the warning close to the beginning of this tab
Several detailed articles below
_______________________
Contacts - Online Tools - Detailed Information
See the warning close to the beginning of this tab
Several detailed articles below
_______________________
Wondering When to Take Social Security
When should you start Social Security?
Date: 2/2013
Most people ought to wait longer, but the real answer depends on when you'll need the money.
Below in this article is a sample calculation to show the difference in annual income from Social Security benefits at age 65 versus age 70 - based on the
This is a fun easy calculator - I encourage you to try it
Social Security Quick Calculator
Note: If you do choose to wait be sure to remember that you MUST sign up for Medicare at 65. Medicare sign-up is one of the most important issues that need to be addressed by those delaying Social Security until age 70.
Every day thousands of boomers are thinking, wondering and talking about when they should begin taking their Social Security benefit. It seems that social security is on everyone's mind.
There are different points of view on this, but the decision is actually an easy one to make. Your answer can be found in yet another question, when do you really need the money to support your living expenses?
The longer you wait the more you will receive each year
I am a strong advocate for working longer and waiting until you are 70-plus to begin collecting your Social Security. In most cases the primary reason to wait to collect your benefits is the receiving of a higher annual income that will better support your living expenses on your retirement journey.
Your personal journey of total retirement may be a long one, 30 years or more. During those years the income that you will need annually to support your lifestyle and living expenses will become much more important to you than collecting your benefits early.
I want it now, I could die tomorrow
On taking Social Security earlier than age 70, the argument I sometimes hear is: “I want my money now, I could die tomorrow. I don't want to wait.”
OK. But, consider this, you may not die soon. Increased longevity is a major issue for boomers. Medical science and our knowledge of living healthier lifestyles through exercise and diet are contributing to the increase in our life spans. You just might be one of the many that will be very much alive for the next 30-plus years. If you are, then you will most likely be needing and wanting as much annual income as possible. For many people Social Security will contribute a substantial portion of their on-going income requirement.
Let your income requirements lead the way
I recommend that you let your lifestyle requirements govern this decision. Here is what I mean by that: if you are financially comfortable and don't need the social security benefit right now to support your income needs then you can afford to wait. If you are unsure take a look at the article titled, “12 steps to jump start your retirement plan.”
Here is a sample calculation to show the difference in annual income from Social Security benefits at age 65 versus age 70. I used the Social Security Quick Calculator. This is a fun easy calculator. I encourage you to try it.
I entered the following information: $125,000 as the last year's income and retiring at age 65, this showed a social security benefit of $26,112 per year ($2176 x 12 months). The calculation for waiting until age 70 showed a total of $39,216 in an annual benefit ($3,268 x 12 months). The difference is $13,104 of spendable income annually. That is a substantial amount of money to add to your on-going annual retirement income, don't you think?
If you are healthy and enjoy your work and can continue working until age 70 or in some cases longer, then you will maximize your social security benefit . There is a vast amount of research that supports the premise that if you enjoy your work and you continue to work, you will be healthier, happier and live longer.
Enjoy the process. Make it fun. Let me know what you plan on doing.
Note: If you do choose to wait be sure to remember that you MUST sign up for Medicare at 65.
Medicare sign-up is one of the most important issues that need to be addressed by those delaying Social Security until age 70.
There is an exception: if you work for a company that has more than 20 employees. However, that health plan just might require that you apply for Medicare so be sure to check this out for yourself.
- Smart online tools from Social Security ______________________________________________________
10 Things Everyone Should Know About Social Security
Nearly every working American pays into the Social Security program, but not everyone understands the benefits they qualify for due to their contributions. And most workers will no longer get paper statements that explain how much they have paid into the system and what benefits they are likely to receive in retirement. Here are 10 things everyone should know about Social Security:
You contribute 6.2 percent of your income. Workers pay 6.2 percent of their earnings into the Social Security system, up to $113,700 in 2013. Employers pay a matching 6.2 percent for each worker. Self-employed workers must contribute 12.4 percent of their income annually.
How your benefit is calculated. Social Security payments are calculated based on your 35 highest-earning years in the workforce, and are also adjusted for inflation. If you don't have 35 years of earnings, zeros are averaged in for the years you didn't pay into Social Security.
Your full retirement age. You can collect the full amount of Social Security you have earned at what the Social Security Administration calls your full retirement age, which varies based on your birth year. The full retirement age used to be 65 for people born in 1937 or earlier. But the full retirement age was gradually increased in two-month increments from 65 and two months for people born in 1938 to 65 and 10 months for those born in 1942. The full retirement age is 66 for baby boomers born between 1943 and 1954. It's scheduled to further increase from 66 and two months for Americans born in 1955 to 66 and 10 months for people born in 1959. And the full retirement age is 67 for everyone born in 1960 or later. Workers who begin receiving Social Security benefits before their full retirement age will receive reduced payments for the rest of their lives.
You get bigger checks if you delay claiming. You can increase your Social Security checks by delaying when you sign up for Social Security. For example, people born in 1943 or later will get 8 percent larger payments for each year they delay claiming after their full retirement age, up until age 70. After age 70, there is no additional benefit to delaying claiming Social Security. "If you're going to err, err on taking in later," says William Reichenstein, a Baylor University professor and principal of Social Security Solutions. "The risk of running out of money in your lifetime is obviously greatest if one or both of you live a long time, and if that's the case, then it pays to wait. You can't outlive the Social Security benefit."
Married couples have additional claiming options. Married couples are entitled to claim Social Security based on their own work record, or payments worth up to 50 percent of the higher earner's benefit. And when one spouse dies, the surviving spouse will receive an amount equal to the higher earner's benefit. "The higher earner should base his benefits decision on the age he would be when the second spouse dies," says Reichenstein. "What would probably be the best strategy is for him to wait until he turns 70 because after the death of the first spouse, the survivor keeps the higher benefits." Ex-spouses are also eligible for Social Security benefits if the marriage lasted at least 10 years.
Couples who have reached their full retirement age can even claim spousal payments, and then later switch to payments based on their own work record, which will then be higher due to delayed claiming. "The spouse with the higher salary can file and suspend and the other could receive 50 percent of that one's benefit for four years and then still get the delayed retirement credit," says Jim Blankenship, a certified financial planner for Blankenship Financial Planning in New Berlin, Ill., and author of A Social Security Owner's Manual.
[Read: 12 Ways to Increase Your Social Security Payments.]
Payments are adjusted for inflation. Social Security payments are adjusted each year to keep up with inflation, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. Since automatic cost-of-living adjustments were added to Social Security in 1975, they have ranged from 14.3 percent in 1980 to zero in 2010 and 2011.
Insurance benefits for younger people. Social Security isn't just for retirees. Working-age people who become disabled and are no longer able to work can qualify for Social Security payments. And when a worker dies, his or her spouse and children are often eligible for monthly payments.
Electronic payments are now required. Your Social Security check probably won't come via mail. New Social Security recipients have been required to select an electronic payment option since May 2011, and approximately 93 percent of Social Security and Supplemental Security Income payments are already directly deposited into a bank or credit union account or loaded onto a prepaid debit card. "It costs the government and ultimately taxpayers a little over a dollar for paper checks and about 10 cents for each electronic transaction," says Walt Henderson, director of the electronic fund transfer strategy division at the Treasury Department.
You can view your Social Security statement online. The Social Security Administration has stopped mailing paper Social Security statements to most workers to cut costs. If you want to view your complete earnings history, taxes paid into the system, and get a personalized estimate of your expected payments, you'll need to create a Social Security online account and log in to view your statement. It's a good idea to periodically check your statement to make sure your information is being recorded correctly and to make decisions about when to claim Social Security. "I recommend that everyone get in the habit of checking their online statement each year, around their birthday, for example," says Michael Astrue, the former Commissioner of Social Security. You can also now sign up to receive benefits, change your direct-deposit information, and access a benefit verification letter online.
[Read: Social Security Statements Now Available Online.]
The trust fund has a projected deficit. The assets in the Social Security trust funds are expected to be exhausted in 2033, according to the Social Security Board of Trustees' annual report. After that, incoming tax revenue will provide enough income to pay out about three-quarters of promised benefits. "If nothing else is done, certainly payments would be reduced dramatically to just what the tax rolls were bringing in each year, but we can always increase the Social Security tax," says Blankenship. Possible changes that might correct the problem include tax increases, benefit cuts, or a combination of the two approaches. The trustees found that an immediate payroll tax increase of about 1.3 percent for workers and employers or an immediate benefit reduction of 16.2 percent would both correct the projected deficit and restore the program to solvency for the next 75 years.
More From US News & World Report (click green below or search the net with the article title)
- 10 Places to Retire on Social Security Alone
- What Older Workers Don't Know About Social Security
- How to Increase Your Social Security Checks _______________________________________________________________________________
This article below has partially similar info as is above
-
However, this has much additional info - study & apply
6 Ways to Get the Most
Out of Social Security
Necessary info - study this & apply
Quotation "Knowledge is no power - only applied knowledge is power
(Dr. Christian, STAF, Inc.)
By far the most important factor in how much you collect from Social Security
is not how much you earn
but
(1) the later you start collecting your social security benefits the more you will get every month
(2) how long you stick around to collect benefits
The best way to maximize Social Security is
(1) to work to your later years & (2) to eat right, go to the gym, get your annual checkup
and in every other way take care of yourself
so you can continue to collect that monthly benefit through your 70s, 80s, 90s & longer
Click all green for further info
Social Security took a cut out of every paycheck we ever earned, and the money was used to pay benefits to our grandparents, parents and older siblings. Now, finally, it's our turn, and it's only natural that we want our benefits, too. Yet the rules for collecting Social Security are incredibly complicated, and vary depending on your marital status, how long you worked, where you worked and when you retire.
Meanwhile, we hear dire predictions that Social Security is running out of funds, benefits will be cut and eligibility rules may change. Nobody knows what the long-term future holds, but under the current program, which is not likely to change much in the near term, there are six proven strategies to make the most out of the program:
1. Work a long time. Social Security says it figures your benefit by calculating "your average indexed monthly earnings during the 35 years in which you earned the most." So, obviously, one way to maximize your benefit is to put in a full career, working for at least 35 years. Maybe that seems like a long time, but look at it this way: If you retire at full retirement age (66 for most of us), you can still get the maximum benefit even if you didn't start your career until you were 31, or if you began working at age 21 and took off 10 years to raise children.
2. Don't retire early. Workers are eligible to start taking Social Security benefits at age 62, but the amount you receive at 62 is discounted by about 25 percent.
Also, if you start Social Security before full retirement age (66 for most of us) and you earn more than $14,160 per year, the government starts temporarily withholding your benefits.
Conversely, if you work beyond full retirement age (= 66 for most of us), you receive a bonus of approximately 7 percent a year, up to age 70. There's no extra benefit to working past age 70.
3. Have a good job. Social Security sets a maximum amount of salary that is subject to the payroll tax, currently $113,700 per year, which is the same amount of earnings it will credit toward your benefit. This amount is adjusted for inflation. The maximum amount in 2000 was $76,200, and in 1990 is was $51,300. This is easier said than done, but the way to maximize your benefit is to earn the maximum amount set by Social Security throughout your career. If you were earning at least $51,300 in 1990, $76,200 in 2000 and $113,700 today, you're eligible to collect the maximum benefit from Social Security.
3. Don't retire early. Workers are eligible to start taking Social Security benefits at age 62, but the amount you receive at 62 is discounted by about 25 percent. Also, if you start Social Security before full retirement age, and you earn more than $14,160 per year, the government starts temporarily withholding your benefits. Conversely, if you work beyond full retirement age, you receive a bonus of approximately 7 percent a year, up to age 70. There's no extra benefit to working past age 70.
4. Don't earn too much in retirement. If you're married and file a joint tax return, yourSocial Security benefits are not taxed if your combined income falls below $32,000. Half is taxed if your income is between $32,000 and $44,000, and 85 percent of your benefits are taxed if your income exceeds $44,000. If you had a good career and didn't retire early, you'll likely be subject to the 85 percent rule. Don't get upset; that's the one progressive aspect of Social Security. But there is one way around it: don't get married. Two singles can earn up to $50,000, instead of $32,000, before their benefits are subject to federal income tax.
5. Live in a tax friendly state when retired. There's not much you can do to avoid federal taxes unless you take a vow of poverty, but you can do something about state tax. Most states do not levy income tax on Social Security benefits, including retirement havens like Florida, Arizona and the Carolinas. But about a dozen states do exact income tax on your Social Security benefits, including red states like Kansas and Utah as well as blue states like Connecticut and Vermont.
6. Stay in good health. By far the most important factor in how much you collect from Social Security is not how much you earned, but how long you stick around to collect benefits. You can work all your life, but if you die the day after you retire, all is lost. The best way to maximize Social Security is to eat right, walk in the parks & in the pure nature, go to the gym - personal trained can guide you to grow your muscles which will help in our strength & good health (our muscles will get smaller as we age), get your annual checkup and in every other way take care of yourself so you can continue to collect that monthly benefit through your 70s, 80s and 90s.
Source:
Tom Sightings is a former publishing executive who was eased into early retirement in his mid-50s. He lives in the New York area and blogs at Sightings at 60, where he covers health, finance, retirement, and other concerns of baby boomers who realize that somehow they have grown up.
More From US News & World Report (if the link has expired search the web with the title)
- 10 Things Everyone Should Know About Social Security
- 12 Ways to Increase Your Social Security Payments
- 10 Places to Retire on Social Security Alone _____________________________________________________________________________
Social Security Benefits And Divorce
How Will A Divorce Affect Your Social Security Benefits?
Click green for further info
How much of a benefit can you receive? At most, your benefit will be 50% of what your ex-spouse would receive at their full retirement age, if this amount is larger than what you could receive based on your own work record.
1. If You Are Divorced – Your Social Security Benefits
If you are divorced, but your marriage lasted 10 years or longer, you can receive benefits on your ex-spouse's record (even if he or she has remarried).
You must also meet the following criteria:
- You are currently unmarried.
- You are at least age 62.
If you collect benefits based on your ex-spouse’s record, it will not reduce or affect their benefit in any way.
If your ex-spouse has not applied for retirement benefits, but can qualify for them, you may still apply as long as you meet the other criteria, and have been divorced for at least two years.
2. Benefits For Your Divorced Spouse
If you are divorced, your ex-spouse can receive benefits based on your record (even if you have remarried), if they meet the criteria in the section above.
The benefit that your ex-spouse is entitled to receive based on your work record must be greater than the benefit he or she would receive based on their own work record.
Numerous ex-spouses may be entitled to receive benefits based on your record, if you were married to each for at least ten years. If they collect benefits based on your record, it will not affect your benefit.
If you have not applied for retirement benefits, but can qualify for them, your ex-spouse can receive benefits on your record if you have been divorced for at least two years.
3. If You Are the Worker's Surviving Divorced Spouse
If your ex-spouse is deceased, there are a few exceptions to the criteria in the sections above:
- If you remarry after age 60, and your ex-spouse is deceased, you may still be eligible for a benefit under their record.
- If your ex-spouse is deceased, you may apply for benefits based on their record at age 60.
- The only exception to the ten year length-of-marriage rule occurs if your ex-spouse is deceased, and you are caring for a disabled child, or child under the age of 16, who is also a child of theirs, who is receiving social security benefits based on their record.
4. When Do Spouse’s and Divorced Spouse’s Social Security Benefits End?
This section of the social security website provides detailed criteria on all of the potential scenarios that could cause a spouse’s or divorced spouse’s social security benefits to end.
Of course it also spells out the exceptions to those scenarios, and often, even though the spouse benefit may end, you may simultaneously become eligible for a widow or widower’s benefit.
5. When Are You Entitled To A Divorced Spouse’s Social Security Benefit
You must be age 62. (If your ex-spouse is deceased, you may be eligible at age 60.)
Your ex- spouse must be entitled to receive social security benefits, but if they have not applied for retirement benefits, but can qualify for them, you may still apply on their earnings record as long as you meet the other eligibility criteria, and have been divorced for at least two years.
Source: Internet & About.com
Related Articles click green (if the link has expired search the web with the title)
- 10 Social Security Facts About Benefits For An Ex-Spouse
- Restricted Application for Social Security Benefits
- When to Take Social Security for Married Couples - 5 Factors To Consider
- How Divorce Will Impact Your Social Security Benefits
- Key Differences Between Social Security Survivor Benefits and Social Securi... __________________________________________________________________________
Smart online tools from Social Security
Date: Jan. 29, 2013
By Andy Landis
About Andy Landis, founder of Thinking Retirement, is an author, speaker, and consultant specializing in Social Security, Medicare, and life planning for retirement. His books include Social Security, The Inside Story and When I Retire. He can be contacted through his website, andylandis.biz.
Andy's latest posts
- Social Security teetering on the ‘debt cliff’
- How to get organized for retirement
- Yes, Virginia, there really is retirement
Too many of us are in the dark on the cornerstone of our retirement security, Social Security. Ignorance or misinformation can easily create costly retirement mistakes.
Social Security has upgraded its online tools to shed light on the dark mysteries of Social Security. The tools are worth a look whether you're still working, ready to retire, or already getting Social Security.
For future retirees:
- This is a must: sign up for a personal "My Social Security" account atwww.ssa.gov/myaccount/ . Then you can review your SSA earnings record for accuracy and view estimates of your future Social Security payments, anytime. Estimates cover retirement, disability, and survivor benefits. You can also view the amount of Social Security and Medicare taxes you've paid over the years. Most workers no longer receive a Social Security statement in the mail, so My Social Security is your information conduit.
- Explore SSA's online calculators for more-detailed benefit estimates. The simplest one is at www.ssa.gov/estimator/ . Or, if you're a true numbers connoisseur, check out the variety of calculators atwww.ssa.gov/OACT/anypia/index.html . With the online calculators you can try out various future scenarios like early or partial retirement. That's a big advantage over the My Social Security statement that assumes a fixed, "work until this age" format. There are even specialized calculators if you're eligible for a pension from non-FICA-taxed work atwww.ssa.gov/retire2/anyPiaWepjs04.htm .
- Get a guided tour of retirement planning at SSA's Retirement Planner atwww.ssa.gov/retire2/ . It offers a menu of articles and links on a variety of topics.
- Learn more about any Social Security topic atwww.ssa.gov/pubs/ . There you'll find SSA publications covering everything from cradle (Social Security numbers) to grave (survivor benefits) and everything in between (like earning Social Security credits).
- You can apply online for Social Security retirement benefits by going to www.ssa.govand clicking on the "Retirement" tab.
- Others can also apply online for spouse or disability payments.
- You can apply online for Medicare, or for extra help paying for your Medicare prescription drug costs. Go to www.ssa.gov and click on the "Medicare" tab.
- At www.medicare.gov , you can explore Medicare supplement insurance, Medicare Part C Advantage plans, and Medicare Part D drug plans. You can even enroll online for Part C or Part D insurance.
You too should sign up for a personal account atwww.ssa.gov/myaccount/ . New capabilities allow you to:
- Print out proof of Social Security or Medicare benefits. These can be used as proof of income for loans, mortgages, or other government benefits, and to prove health insurance enrollment. This will save time compared with waiting on the phone or in an SSA office, and reduce SSA's 9 million manual verifications per year.
- Check your personal information and payment history.
- Change your address.
- Start or change your direct deposit data.
- Even without a My Social Security account, you can request a replacement Medicare card.
You don't need to be in the dark any more. Brighten your Social Security smarts with SSA's online tools. Links to these services and more can be found at www.ssa.gov/onlineservices/ .
______________________________________________
What's Your Retirement Number?
The quick-and-dirty formulas are meant to motivate you to save more
Click green for further info
Imagine planning for a vacation you'll be taking some 20, 30 or even 40 years from now. You don't know where it will be, how much it will cost or how long it will last, but you're tasked with saving a chunk of every paycheck toward that trip until the day you embark on it. You're not even sure how much to save or when you have saved enough. Crazy, huh?
Welcome to the world of retirement planning, in which everyone younger than retirement age is expected to anticipate future expenses, figure out the amount that will cover those costs throughout old age, and save like mad until they hit the magic number. Unlike previous generations, for whom employers did some of the saving in the form of pensions, current and future generations must sock away most or all of the savings themselves.
Click: 5 Costly Retirement Surprises
Not surprisingly, researchers, financial institutions and financial planners offer to help you set that amount, from multiples of final salary to percentages pegged to your preretirement income. But no one formula fits every person or life stage, says Steve Utkus, director of the Center for Retirement Research at Vanguard. "The further away you are from retirement age, the more uncertain the model."
Still, retirement formulas do help you focus on what you need to do, says Chuck Yanikoski, who developed RetirementWorks II, a financial-planning tool for people near or in retirement. Retirement benchmarks also keep you from overshooting or undershooting the mark. "A lot of people are stressed who don't need to be, and others are cheerfully heading into disaster," says Yanikoski. "Either way, you're better off knowing where you are."
Calculate your target
No matter what your age, you should have at least some idea of how much income you'll need in order to maintain your standard of living once you're out of the workforce. Retirement analysts generally set the number at 70% to 85% of preretirement household income. That's not because you'll be expected to skimp in your old age, but rather because some costs, such as payroll taxes, money set aside for retirement saving and work expenses, will disappear and others, such as your income taxes, could drop.
To keep it simple, Fidelity arrives at the 85% replacement rate by multiplying your final salary by eight. The calculation includes Social Security but doesn't factor in dual incomes; it assumes you'll retire at 67 and spend down your nest egg over 25 years. Fidelity also gives you savings mileposts: Save one times salary at age 35, three times salary at 45 and five times salary at 55. "The idea is to give people a rule of thumb so they know whether they're on track while they have time to make adjustments," says Jeanne Thompson, a Fidelity vice-president.
Click: 10 Things You Must Know About Traditional IRAs
Aon Hewitt, which provides bookkeeping services for 401(k) plans, sets a benchmark of 11 times final salary, and others use still other criteria. But the precise number isn't as important as the overall message. "These are all just calls to action to be an aggressive saver," says Utkus. "If you've only saved five times your salary and Fidelity or Vanguard says seven, you know to get on the stick."
If the quick-and-dirty formulas aren't precise enough for you, you'll have to do some fancy footwork. Arriving at a realistic figure to generate 70% to 85% of your preretirement income requires projecting how much your savings will earn before and during retirement, how old you'll be when you retire, the rate at which you'll withdraw your savings, and how much income you'll get from other resources, such as pensions and Social Security. If you're married, you need to calculate joint income and expenses as well as post-retirement distribution strategies. "We're all making assumptions and guesses about the future," says Rob Reiskytl, partner for retirement consulting at Aon Hewitt.
One obvious unknown is how long you'll live and, therefore, how long your money will have to last.
Men who make it to 65 can expect to live to 82, on average, and 65-year-old women can expect to live until age 85, according to the Society of Actuaries. Health, education and family history play a role in your own life expectancy (to see how, use the calculator at www.livingto100.com), but no one can predict the date of your demise. Unless your health or family history indicates otherwise, set the age in the low-to-mid nineties or even higher, advises Michael Kitces, a partner at Pinnacle Advisory Group, a wealth-management firm in Columbia, Md.
For an easy but somewhat more precise approach to figuring your nest egg, Kitces suggests multiplying your estimated preretirement household living expenses by 25, after subtracting whatever amount you'd get from Social Security and pensions. This calculation assumes you'll withdraw 4% in the first year you retire and adjust that figure annually for inflation—an amount some planners consider low enough to keep you from running out of money even if you live to your mid nineties. For instance, if you plan to live on $5,000 a month ($60,000 a year) in retirement and anticipate $3,500 a month in Social Security benefits for yourself and your spouse (including spousal benefits), your net amount is $1,500 a month ($18,000 a year) and your rule-of-thumb savings would be $18,000 times 25, or $450,000.
Click: 10 Least Tax-Friendly States for Retirees
You can get an estimate of your Social Security benefits by using the calculator at www.ssa.gov. For a look at how the variables affect your retirement-savings goal, see the retirement calculator at Kiplinger.com. Get an idea of how much to save at www.choosetosave.org by using the Ballpark Estimate in the worksheet or the interactive version.
Reassess the numbers
Relying on broad savings benchmarks is fine for most of your working life, but "as you get closer to retirement, you need to have a plan that takes into account the unique characteristics of your finances," says Dan Keady, director of financial planning at TIAA-CREF. Five years out, he says, "look at what you're actually planning."
You might be surprised to find that you're in better shape than you thought. For instance, if you're on target to pay off your mortgage by the time you retire, you may not need 80% of your income to maintain your standard of living or, if you live in a high-cost area and plan to move to a cheaper one, "maybe a 60% replacement rate is fine," says Keady. Health, travel plans, housing arrangements and marital status all play a role in how your money holds up. Meanwhile, as you age, your expenses are likely to go down: A 2012 report by the Employee Benefit Research Institute shows that household expenditures fall 19% by age 75 compared with age 65, 34% by age 85, and 52% by age 95.
In any event, by the time you're 60 or older, you should have a handle on the savings and income you'll be working with, says Yanikoski. "You've been dealt all your cards. From now on, the issue is how you play them." You could decide to reduce housing expenses—say, by moving to a less expensive home. Now is also the time to consider whether it makes sense to invest some of your savings in an annuity for lifetime income. If your savings look skimpy, plan to work longer.
As for your standard of living, "we're trying to set guidelines that expect the same lifestyle," says Reiskytl. "But in reality, you may have to back off a bit." Cutting expenses doesn't necessarily mean you'll have to change your standard of living dramatically, he says. "When you talk to retirees and ask them how it's going, they typically say it's fine. Behind the scenes, they may be making adjustments to live within their means."
Click for further info
_____________________________________________________
12 Questions to Jump-start Your Retirement Plan
Year after year, surveys consistently show that the number one concern for most people is not having enough money to maintain their lifestyle during retirement.
Current statistics show that three out of five people will not!
Why is this the case? We all know that someday we will be retiring. Most people fantasize about what they might do when they are no longer required to work. We dream about our retirement plan ideas and chat with our family and friends about how we will spend our retirement days.
Once we hit age 50, retirement becomes a focal point that is looming ahead of us. So why is it that most people will not be financially prepared to live a comfortable life and maintain their lifestyle for 20 to 40 years?
The answer to that question is twofold: lack of planning and not making retirement savings a priority. Most people spend more time planning a vacation than they do planning for their retirement.
Just for fun, let's do a comparison:
Here is some of the vacation planning questions everyone asks themselves: Where and when are we going? How will we get there? Where will we stay and how much is it going to cost? Should we get insurance coverage to cover our trip just in case we have to cancel? Have we saved enough money to cover our vacation expenses?
If people planned their vacations like most plan for retirement, it might sound like this:
OK, honey, it's time for our dream vacation! Pack the bags — well, I'm not sure what we will need to wear since I don't know where we are going — just improvise, bring some cash and the credit cards. We'll go to an airport and take the first plane we can catch. We'll stay in the best hotel we can find once we get to our destination, we will rent a luxury car, we will eat at the best restaurants and we will stay until our money runs out. Oh, I hope the dogs are OK?
Sounds a little crazy don't you think?
The obvious difference between these two approaches is planning. Whether planning for a fabulous vacation or for retirement, planning is the key. It keeps you out of trouble and reduces your risk of disappointment, discomfort and excess expenses.
To make retirement more than just a dream, here are a few planning questions to get you started:
The quick-and-dirty formulas are meant to motivate you to save more
Click green for further info
Imagine planning for a vacation you'll be taking some 20, 30 or even 40 years from now. You don't know where it will be, how much it will cost or how long it will last, but you're tasked with saving a chunk of every paycheck toward that trip until the day you embark on it. You're not even sure how much to save or when you have saved enough. Crazy, huh?
Welcome to the world of retirement planning, in which everyone younger than retirement age is expected to anticipate future expenses, figure out the amount that will cover those costs throughout old age, and save like mad until they hit the magic number. Unlike previous generations, for whom employers did some of the saving in the form of pensions, current and future generations must sock away most or all of the savings themselves.
Click: 5 Costly Retirement Surprises
Not surprisingly, researchers, financial institutions and financial planners offer to help you set that amount, from multiples of final salary to percentages pegged to your preretirement income. But no one formula fits every person or life stage, says Steve Utkus, director of the Center for Retirement Research at Vanguard. "The further away you are from retirement age, the more uncertain the model."
Still, retirement formulas do help you focus on what you need to do, says Chuck Yanikoski, who developed RetirementWorks II, a financial-planning tool for people near or in retirement. Retirement benchmarks also keep you from overshooting or undershooting the mark. "A lot of people are stressed who don't need to be, and others are cheerfully heading into disaster," says Yanikoski. "Either way, you're better off knowing where you are."
Calculate your target
No matter what your age, you should have at least some idea of how much income you'll need in order to maintain your standard of living once you're out of the workforce. Retirement analysts generally set the number at 70% to 85% of preretirement household income. That's not because you'll be expected to skimp in your old age, but rather because some costs, such as payroll taxes, money set aside for retirement saving and work expenses, will disappear and others, such as your income taxes, could drop.
To keep it simple, Fidelity arrives at the 85% replacement rate by multiplying your final salary by eight. The calculation includes Social Security but doesn't factor in dual incomes; it assumes you'll retire at 67 and spend down your nest egg over 25 years. Fidelity also gives you savings mileposts: Save one times salary at age 35, three times salary at 45 and five times salary at 55. "The idea is to give people a rule of thumb so they know whether they're on track while they have time to make adjustments," says Jeanne Thompson, a Fidelity vice-president.
Click: 10 Things You Must Know About Traditional IRAs
Aon Hewitt, which provides bookkeeping services for 401(k) plans, sets a benchmark of 11 times final salary, and others use still other criteria. But the precise number isn't as important as the overall message. "These are all just calls to action to be an aggressive saver," says Utkus. "If you've only saved five times your salary and Fidelity or Vanguard says seven, you know to get on the stick."
If the quick-and-dirty formulas aren't precise enough for you, you'll have to do some fancy footwork. Arriving at a realistic figure to generate 70% to 85% of your preretirement income requires projecting how much your savings will earn before and during retirement, how old you'll be when you retire, the rate at which you'll withdraw your savings, and how much income you'll get from other resources, such as pensions and Social Security. If you're married, you need to calculate joint income and expenses as well as post-retirement distribution strategies. "We're all making assumptions and guesses about the future," says Rob Reiskytl, partner for retirement consulting at Aon Hewitt.
One obvious unknown is how long you'll live and, therefore, how long your money will have to last.
Men who make it to 65 can expect to live to 82, on average, and 65-year-old women can expect to live until age 85, according to the Society of Actuaries. Health, education and family history play a role in your own life expectancy (to see how, use the calculator at www.livingto100.com), but no one can predict the date of your demise. Unless your health or family history indicates otherwise, set the age in the low-to-mid nineties or even higher, advises Michael Kitces, a partner at Pinnacle Advisory Group, a wealth-management firm in Columbia, Md.
For an easy but somewhat more precise approach to figuring your nest egg, Kitces suggests multiplying your estimated preretirement household living expenses by 25, after subtracting whatever amount you'd get from Social Security and pensions. This calculation assumes you'll withdraw 4% in the first year you retire and adjust that figure annually for inflation—an amount some planners consider low enough to keep you from running out of money even if you live to your mid nineties. For instance, if you plan to live on $5,000 a month ($60,000 a year) in retirement and anticipate $3,500 a month in Social Security benefits for yourself and your spouse (including spousal benefits), your net amount is $1,500 a month ($18,000 a year) and your rule-of-thumb savings would be $18,000 times 25, or $450,000.
Click: 10 Least Tax-Friendly States for Retirees
You can get an estimate of your Social Security benefits by using the calculator at www.ssa.gov. For a look at how the variables affect your retirement-savings goal, see the retirement calculator at Kiplinger.com. Get an idea of how much to save at www.choosetosave.org by using the Ballpark Estimate in the worksheet or the interactive version.
Reassess the numbers
Relying on broad savings benchmarks is fine for most of your working life, but "as you get closer to retirement, you need to have a plan that takes into account the unique characteristics of your finances," says Dan Keady, director of financial planning at TIAA-CREF. Five years out, he says, "look at what you're actually planning."
You might be surprised to find that you're in better shape than you thought. For instance, if you're on target to pay off your mortgage by the time you retire, you may not need 80% of your income to maintain your standard of living or, if you live in a high-cost area and plan to move to a cheaper one, "maybe a 60% replacement rate is fine," says Keady. Health, travel plans, housing arrangements and marital status all play a role in how your money holds up. Meanwhile, as you age, your expenses are likely to go down: A 2012 report by the Employee Benefit Research Institute shows that household expenditures fall 19% by age 75 compared with age 65, 34% by age 85, and 52% by age 95.
In any event, by the time you're 60 or older, you should have a handle on the savings and income you'll be working with, says Yanikoski. "You've been dealt all your cards. From now on, the issue is how you play them." You could decide to reduce housing expenses—say, by moving to a less expensive home. Now is also the time to consider whether it makes sense to invest some of your savings in an annuity for lifetime income. If your savings look skimpy, plan to work longer.
As for your standard of living, "we're trying to set guidelines that expect the same lifestyle," says Reiskytl. "But in reality, you may have to back off a bit." Cutting expenses doesn't necessarily mean you'll have to change your standard of living dramatically, he says. "When you talk to retirees and ask them how it's going, they typically say it's fine. Behind the scenes, they may be making adjustments to live within their means."
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- The 10 Most Tax-Friendly States for Retirees
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- 8 Great Places to Retire Abroad
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12 Questions to Jump-start Your Retirement Plan
Year after year, surveys consistently show that the number one concern for most people is not having enough money to maintain their lifestyle during retirement.
Current statistics show that three out of five people will not!
Why is this the case? We all know that someday we will be retiring. Most people fantasize about what they might do when they are no longer required to work. We dream about our retirement plan ideas and chat with our family and friends about how we will spend our retirement days.
Once we hit age 50, retirement becomes a focal point that is looming ahead of us. So why is it that most people will not be financially prepared to live a comfortable life and maintain their lifestyle for 20 to 40 years?
The answer to that question is twofold: lack of planning and not making retirement savings a priority. Most people spend more time planning a vacation than they do planning for their retirement.
Just for fun, let's do a comparison:
Here is some of the vacation planning questions everyone asks themselves: Where and when are we going? How will we get there? Where will we stay and how much is it going to cost? Should we get insurance coverage to cover our trip just in case we have to cancel? Have we saved enough money to cover our vacation expenses?
If people planned their vacations like most plan for retirement, it might sound like this:
OK, honey, it's time for our dream vacation! Pack the bags — well, I'm not sure what we will need to wear since I don't know where we are going — just improvise, bring some cash and the credit cards. We'll go to an airport and take the first plane we can catch. We'll stay in the best hotel we can find once we get to our destination, we will rent a luxury car, we will eat at the best restaurants and we will stay until our money runs out. Oh, I hope the dogs are OK?
Sounds a little crazy don't you think?
The obvious difference between these two approaches is planning. Whether planning for a fabulous vacation or for retirement, planning is the key. It keeps you out of trouble and reduces your risk of disappointment, discomfort and excess expenses.
To make retirement more than just a dream, here are a few planning questions to get you started:
- What is your target retirement date or will you need to work more years to accumulate more money?
- Are you planning for 1 or 2 people?
- What is the exact cost of your monthly on-going living expenses?
- What are your special interests and what costs are involved?
- Where do you plan on living?
- Are there health issues to consider?
- What rate of return on your investments can you expect?
- Do you plan on earning income during retirement doing consulting or pursuing an income generating hobby?
- What is the amount of Social Security you will be receiving?
- What is the total amount of all retirement dollars saved?
- How do you plan on allocating that money to last your lifetime?
- What amount of money did you put aside for your emergency fund Next below is a 2nd article with similar topic - compare the 2 articles _______________________________________________________________________________
Yes, it can be overwhelming! Putting off creating the actual retirement plan and just socking money away and hoping for the best investment returns will not serve you in the long run. When you the start your planning process, take it step by step. If you find that there will be a shortfall in needed income you still have time to do something about it.
You are approaching a special time in your life. Enjoy your journey. Approach your planning like your future well being depends on it because it does.
Get the help and guidance you need to go through this process so you will not end up as part of the dream statistic.
Here is a 2nd article about the same topic as the one just above
but provided by a different source - compare these 2 articles
Most people know a thing or two about retirement
Stan Hinden, by contrast, knows 12
That should come as no surprise given that Hinden has recently published the fourth edition of his book,
“How to Retire Happy: The 12 Most Important Decisions You Must Make Before You Retire.”
STAF, Inc. recommends you'll buy his book and study & apply its information well
According to Hinden, who is 86 and wrote the “Retirement Journal” column in The Washington Post for years after he retired as a financial writer in 1996, there are 12 important decisions that you must make before you retire. And in his book, he details those decisions. In an interview, he boiled those decisions down to the essence of the matter. Learn more about the book.
Are you ready to retire?
Among the questions that you must contemplate is whether you are ready to retire. According to Hinden, there are three good reasons to retire. One, the time is right; two, you have more compelling things to do; and three, your job is changing. There are also three good reasons not to retire: One, your work is your identity; two, you will miss the people you work with; and three, you want to stay in the loop.
Click green to play: Fine-tune your 401(k)
If you plan to retire in five years or less it may be time to adjust your investing strategy.
MarketWatch's Andrea Coombes discusses tips on how to improve your 401(k) plan.
Click green to play: How to protect your retirement
Annuities in a low-interest-rate world
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Retire here, not there: California
10 things your 401(k) plan won't tell you
In the current economic environment, however, Hinden said, more and more people might be ready to retire but not able. “People aren't feeling comfortable about retiring,” said Hinden, who was born in the same year Charles Lindbergh first flew across the Atlantic Ocean. “So the answer to the question ‘Are you ready to retire?’ is ‘I’d like to, but I don’t know if I can.’ That is been a change since I wrote the first edition of the book in the retirement scene.”
Instead of retiring outright or only working, Hinden said he sees older Americans now doing both: retiring and working. And to him—and he’s living proof—that’s a good a way to enjoy the best of two worlds. (Hinden, besides updating his book, also writes a weekly column for AARP called the Social Security Mailbox. Read that column.)
Can you afford to retire?
To be fair, in the current economic environment, Hinden said the question of retirement is less about whether you are ready and more about whether you can afford to retire. And one of the key questions to answer about whether you can afford to retire is a rather simple one: Will your income in retirement be greater than your expenses? Of course, there’s more to it than that. But that’s the essence of it.
“When you approach retirement, you really have to sit down and look at your financial situation and try to estimate what your income will be and what your expenses will be,” he said. “It seems to be more and more people will find that their expenses may be more than their income.”
There are, of course, ways to increase your income and lower your expenses. But there are some hard truths to consider as well. One, retirement includes living mostly on a fixed income without the benefit of salary increases as there were during one’s working years. And two, retirement includes expenses that aren't fixed: health-care costs and taxes tend to rise often faster than inflation.
Among the many things you can do to increase your income, according to Hinden, is use the power of time and compounding. He recommends saving and investing as much as you can as earlier as you can in employer-sponsored and other types of retirement accounts, including Roth IRAs and Roth 401(k)s.
Another issue that plagues current retirees has to do with the zero-interest-rate world. It’s becoming increasingly difficult for older Americans to generate income without having to put their assets at risk in the stock and bond markets. “It hasn’t been easy” finding safe investments, he said.
When should you apply for Social Security?
One way to increase your income in retirement, according to Hinden, is to delay taking Social Security till age 70, if you can afford it. That is especially so in this low-interest-rate environment and the benefits of this tactic, the delayed retirement credit. (Your Social Security benefit will increase 8% per year for every year you delay taking it after full retirement age.) Read Retirement Planner: Delayed Retirement Credits.
Thus, delaying taking Social Security accomplishes two things, he said. One, you’ll get the largest possible Social Security benefit. Plus, widows and widowers will get the largest possible survivors benefit. Read Survivors Benefits.
“If you can afford it, the better decision is to wait,” said Hinden.
To be sure, deciding when to apply for Social Security is very much a personal decision. And the numbers seem to suggest that most take Social Security either at full retirement age or sooner. In fact, some 74% of the 35.6 million retired workers received reduced benefits because of entitlement before full retirement age, according to a recent government report. Read Annual Statistical Supplement to the Social Security Bulletin, 2012.
“It was obvious in the past, and even more so now, that people take Social Security early for two reasons,” he said. “One, they need the money. And two, people may be afraid they won’t live long enough to get as much as they think they would like to get.”
If, however, you have enough money or income from other sources, from work or from your portfolio, to carry you from normal retirement age till age 70, then it is a good deal to delay taking Social Security, he said. “I live in a place where there are at least a dozen people who are 99 or 100-plus years old,” he said, suggesting that delaying Social Security could make a big difference if you happen to live that long. “If this is a good bet, then the odds are growing in favor of taking your Social Security later.”
Hinden also noted that the widow’s survivors benefit “will be much, much better” if her husband has waited at least until full retirement age to collect Social Security. “One of the main reasons for poverty among aged widows is the fact that their Social Security is so low,” he said. “And the reason it is so low is because their husbands took their benefits at age 62.”
How should you take your pension?
Another decision some retirees have to make concerns their pensions and whether to take a lump sum, or monthly payments based on a single life or on a joint-and-survivor basis. In his case, Hinden said, he took his pension as monthly payments based on his life. But now, with the benefit of hindsight, he would have chosen the joint-and-survivor annuity, the option where the monthly payment is reduced but doesn’t end if he predeceases his wife, Sara. “At the time, I had a fair amount of life insurance,” he said. “But then one day I sat down and did some arithmetic and began to realize that I made the wrong decision. The arithmetic I did was to figure out what income we were getting as a couple and then figuring out what income Sara would get as a single person, as a widow, after I died. And without the pension, she would not have done very well. It was pretty clear that if I done that arithmetic before I retired I would have made a different pension decision.”
Often, he said, we don’t realize the repercussions of making the wrong decision until it is too late.
“The one theme that I’ve been trying to stress in the book all this time is that, as Sara frequently told me, preparation is next to Godliness,” Hinden said. “And she was right. These decisions are coming up. There are many things that you have to learn about retirement. Start learning them now. Start thinking about what you need to know and that will help you a great deal when you finally retire.”
In fact, he said, he wrote his book to help people learn all the things that he should have known before he retired.
What should you do with the money in your company savings plan?
Among the many things that you need to know is what to do with the money in your employer-sponsored retirement plan, after you retire or leave your company. According to Hinden, the best option typically is to roll over your IRA. He also suggested that workers consider not investing in their company’s stock inside in their retirement plans or keep it to a small percentage.
When do you have to take money out of your IRA?
When it comes to taking money out of your IRAs and other retirement accounts, Hinden offered this advice: “My advice would be to avoid a bad case of ‘brain sprain.’” Hinden said those who are faced with the deciding when and how to take money from their IRA should work with a financial adviser or CPA who is familiar with IRA distribution rules. “It’s not a hard calculation to make if you understand the tables and how they work but they are complicated,” he said. “I can remember the first time I did it I wrote a column asking why retirement had to be such hard work.”
How should you invest during retirement?
As for investing in retirement, Hinden said, the trick is to strike a balance between investing for growth and investing for safety. Hinden said he “got caught in the tech bubble” and in retrospect he wishes he had been more conservative with his investment portfolio. And in general, given the vagaries of the market, he recommends that retirees be more conservative than aggressive with their investments. “I’m not in favor of putting everything in bonds,” he said. “You still need stocks. You still need growth and protection against inflation. But you have to do it carefully. There is a price to being in the market. And no matter how well diversified you are, it may not matter.”
What should you do about health insurance?
Hinden also recommends that retirees purchase, if able, Medigap insurance—given the increase in health-care costs, the expenses that Medicare doesn’t cover, and the potential that health-care costs could ruin one’s retirement. “Medigap is very important,” he said. “I’ve always had it since I went on Medicare, and I wouldn’t give it up. I think it is absolutely essential that people have Medigap insurance if they are on Medicare.”
Visit the government’s website, Medigap Policy Search, to learn more about Medigap policies.
Hinden also expressed concerns over efforts to make “Medigap more expensive and more difficult to use.” Policy makers suggest that if Medigap policies cover less of beneficiaries’ costs, some seniors will be less likely to overuse Medicare-covered health care services.
What should you do to prepare for an illness that requires long-term care?
Hinden also recommends that Americans, if they can afford it, purchase long-term care insurance. “And if they can’t afford it, they should figure out a way to afford it,” he said.
Hinden, in this case, speaks from personal experience. His wife Sara, who became afflicted by Alzheimer’s disease in 2007 and now resides in an assisted living facility, has benefited from a long-term care insurance policy Hinden purchased some years ago. “That long-term care insurance policy has been a Godsend to her,” he said. “It doesn’t cover a whole lot, but it is enough to really make a difference.”
Where do you want to live after you retire?
As many know, most Americans prefer to age in place. And the same can be said of Hinden. After raising his family, he and his wife moved to a retirement community and stayed there for many years. After his wife developed dementia, they moved to a senior residence where they could access more health-care support. Today, his wife lives in an assisted living house and he continues to live in the senior residence.
How should you arrange your estate to save on taxes and avoid probate?
According to Hinden, death is not only an emotional event, but also a legal event and a taxable one. And a favorable outcome depends on advance planning, getting good advice, and carefully assembling your financial records and documents.
How can you age successfully?
Hinden said the key to aging successful is a matter of three things. One is to exercise, particularly walking, on a regular basis, two is diet, to eat well, and three is to retain your social contacts. “You need to continue to be part of groups or clubs, to be in touch with people.” he said. “It’s extremely important to be in touch with people. Nobody ought to become a couch potato in retirement. Retirement can be a great experience.”
Robert Powell is editor of Retirement Weekly, published by MarketWatch.
Click: Learn more about Retirement Weekly here.
Robert Powell is a MarketWatch Retirement columnist. He has been a journalist covering personal finance issues for more than 20 years.
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Reasons Retirees Should Be Flocking To Tennessee
Beneficial information - study & apply
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Most workers would probably rather retire in Naples than Nashville.But maybe it's time to give Tennessee a chance. Nashville is shaping up to be the country's newest boomtown and Tennessee was just listed as the No. 1 state to retire in by Bankrate.com.
These days it seems like a new retirement list comes out every week, always with another state ranking supreme.
So we decided to chat with Chris Kahn, a research and statistics analyst for Bankrate, to find out exactly what sets Tennessee a cut above the rest.
A low cost of living: Most of today's workers share a common retirement fear –– outliving their money. That's why cost of living is of the utmost importance when picking a place to live long-term. "You should not plan as if you're going on vacation," Kahn said. "You should plan as if you're going to be paying the bills for the next 10, 20 years." Bankrate found Tennessee's cost of living to be the second lowest in the country, just behind Oklahoma.
Taxes: Taxes are enemy no. 1 to retirees, since many will wind up living on a fixed income. Tennessee carries the third-lowest tax burden out of all 50 states and Washington D.C. The state is noted for having no income tax. But beware the 6% tax on interest and dividend income (capital gains are exempt). The state's sales tax rate is 7 % . State inheritance tax laws only allow tax-free transfers to a spouse.
Access to medical care: Even with Medicare benefits, a 65-year-old couple could need nearly $400,000 to cover out-of-pocket health care costs during retirement, according to research by the Employee Benefit Research Institute. That means picking a retirement spot with affordable medical care is crucial. Tennesseans spend about $6,411 per capita on health care, below the national average of $6,815. Inpatient hospital care is about $1,462 a day versus the national average of $1,910, according to the Kaiser Foundation.
Average temperature: Who wants to spend their golden years digging their car out of the snow and worrying about a Nor'easter? Tennessee is one of the sunnier states in the country. The state ranked 15th nationwide for its temperatures, meaning its weather is moderate most of the year, Kahn said.
Crime: Seniors are one of the most vulnerable age groups for crime, and unfortunately, prevention isn't Tennessee's strong suit. The state ranked No. 47 out of all states for the highest levels of property crime and violent crime per capita, Kahn said. "The crime rate is very high compared to the rest of the country," he said. However, as with all states, crime rates typically fall the farther a person moves away from metropolitan areas.
The bottom line: Whether you're months or decades away from retiring, everyone's priorities for picking their final destination will vary, whether it's being close to a coastline or being close to family.
"A lot of folks, when they're deciding where to go, they have their dream place — but it's not necessarily the cheapest or (the place) with the lowest taxes," Kahn said. "It’s fine to keep having those dreams, but be sure to be informed before you go."
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Took Social Security too early? Undo it!
Date: 2/2013
Looking for personal help after studying the SS articles?
Contact (1) a competent counselor, e.g. the author of this article.
The link below. OR: (2) use a competent SS lawyer.
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Evaluate M. Andy Landis' professional services when you contact him.
(Click) The RetireMentors Retirement advice from experts in the business
By Andy Landis
About Andy Landis: founder of Thinking Retirement, is an author, speaker, and consultant specializing in Social Security, Medicare, and life planning for retirement. His books include Social Security, The Inside Story and When I Retire. He can be contacted through his website,andylandis.biz.
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You never meant to file early for Social Security, but then you lost your job and had to. Or you always planned to file early, and later wished you hadn't.
In either case, you're regretting the reduction in your Social Security payment. The payment if you file at age 62: 75% of what you would get by filing at Full Retirement Age (currently 66).
Guess what: there are three ways to "undo" that reduction and get you closer to the 100% you would have gotten by filing at age 66. These are little-know exceptions to what most people — even some experts — think is a permanent, lifetime reduction.
Exception 1: Withdraw your claim, and start over.
Anytime during the first 12 months you're on Social Security, you can withdraw your claim and repay all payments received — with no interest charged. Then you're treated as if you never filed at all. You could immediately refile for Social Security, and get a higher payment because you're a year older. Or you could postpone refiling until a higher age and get an even higher payment.
For example, say you filed at 62 because you needed the money. You get a 75% Social Security payment. Then you receive a windfall — a new job, an inheritance, or what-have-you — and you wish you hadn't taken the early, reduced Social Security.
You could withdraw your claim and repay the payments received, up to 12 months after filing. Poof, it's like you never filed that claim at 62. You could immediately refile, and you'd get an 80% payment because now you're 63. Or you could wait until age 66 for a 100% payment, or wait all the way to 70 for a 132% payment.
Withdrawal is available only in the first 12 months of Social Security, and only once per lifetime. Click here for SSA's description.
Exception 2: Get a job, get an ARF = "Adjustment to the Reduction Factor,” (See below)
You're probably aware that if you're under 66 and you earn over the threshold amount ($14,640 in 2012; $15,120 in 2013), some or all of your Social Security payments will be withheld. But did you know that you'll eventually get credit back for any payments you miss out on?
For example, say you filed at 62 because you lost your job. Your payment will be at the 75% level, to account for 48 early payments before 66. Six months later, hallelujah! You land a well-paying job. The downside is that your earnings are so high, all your Social Security checks are withheld from then on.
When you turn 66, two important changes occur. First, your Social Security payments restart, because your earnings no longer count against you at 66. Second, the payments will be at the 96% level, not your old 75% level. That's because you've automatically received an "Adjustment to the Reduction Factor,” or ARF. Basically, your early filing reduction — previously 48 months — is downsized to the 6 months you actually received payment. It's like you filed just 6 months ago.
You'll receive an ARF for every month your Social Security is withheld due to work. It's automatic when you reach Full Retirement Age. It's described at here. .
Exception 3: Suspend your payments, get a raise.
You may have heard of "file and suspend" as a strategy to maximize Social Security payments for couples. But did you know that you can suspend your payments anytime from age 66 to 70, even if you've gotten Social Security for years? While the payments are suspended, they're growing in the background at 8% per year.
For example, say you filed at 62 because you needed the money. You receive 75% payments for the next four years, and normally that would be your ongoing payment amount, too. But now you have some retirement money and expect a long life, and you wish your payments were 100%, not 75%. You could suspend your payments at 66, potentially all the way to age 70. With four years of growth at 8% per year, your payments are at the 99% level when they restart at 70. OK, you haven't quite gotten back to 100%, but you're awfully close.
Any worker can suspend his or her retirement payments from Full Retirement Age (currently 66) to age 70 to get higher future payments.Suspension is described here .
The bottom line: early Social Security payments are reduced, but not necessarily forever. You can use these three exceptions to "undo" or minimize the reduction.
As always, this article is informational only. Only SSA can make official decisions on your payments
SSA = The United States Social Security Administration
_______________________________________________
Where Not to Die - Estate Taxes Are Different
Date: February, 2013
Think you don’t have to worry about estate taxes
because of the new generous federal estate tax law?
Not so, for families in 21 states and the District of Columbia where separate state levies are still a big concern. “For the vast majority of people who are wealthy, the fear factor of the federal estate tax is gone, but many still need to focus on state estate and inheritance taxes,” says Martin Shenkman, an estate lawyer in Paramus, N.J.
More from Forbes: (click green) Interactive Map: The States With State Death Taxes For 2013
What makes this extra tricky is that state estate and inheritance taxes have been in constant flux over the last decade. And it’s not just the list of states that has been changing, but in some states, the level at which the tax kicks in has been changing (both up and down). So it’s important to stay on top of this to avoid a surprise tax bill.
Thanks to the fiscal cliff tax deal (the American Taxpayer Relief Act), the federal estate tax exemption of a generous $5 million per person, indexed for inflation, is now permanent. So for 2013, up to $5.25 million of an individual’s estate will be exempt from federal estate tax, with a 40% tax rate applied to any excess over the exemption amount.
By contrast, states with estate taxes typically exempt $1 million or less per estate from their tax and impose a top rate of 16%. New York, for example, sets its exemption at $1 million. So the estate of a person dying in New York with $5.25 million would owe no federal tax, but would owe New York $420,800, calculates Donald Hamburg, an estate lawyer with Golenbock Eisenman in New York City.
Six states levy only an inheritance tax, with the rate depending on the relationship of the heir to the deceased and the taxes kicking in, in some cases, on the first dollar of bequest. Two states, Maryland and New Jersey, impose both. Maryland, for example, imposes an estate tax of up to 16% above a $1 million exemption, and a 10% inheritance tax on every dollar left to a niece, nephew, friend or partner, but no inheritance tax on money left to children, grandchildren, parents or siblings. (Any estate tax owed is reduced by the inheritance tax paid.) As in the federal system, bequests to a spouse are tax-free.
More from Forbes: (click green) Four Ways To Beat State Death Taxes
Lately, the trend is towards eliminating state estate taxes, or at least lessening the tax bite by increasing the amount exempt from the tax. Ohio no longer has an estate tax, effective Jan. 1, 2013 (Republican Gov. John Kasich signed the repeal law in 2011). Delaware falls off the list effective July 1, 2013 when its current temporary estate tax expires. Indiana’s inheritance tax is repealed effective Jan. 1, 2022 (Republican Gov. Mitch Daniels signed the repeal law last year).
Meanwhile in Indiana the amount that is exempt from the state inheritance tax is going up each year, from $1.25 million this year, to $2 million in 2014 and $5 million in 2015. Other states are upping their exemption amounts this year too. Maine’s exemption doubles to $2 million this year (as part of Republican Gov. Paul LePage’s budget). Rhode Island’s exemption goes up to $910,725 this year, up from $859,350 in 2 012 as it’s indexed for inflation.
Connecticut is the only state going in the other direction recently. In 2011, Connecticut lowered the amount it exempts from its tax from $3.5 million to $2 million per estate, retroactive to Jan. 1, 2011. And Illinois is the most recent state to implement an estate tax—it resurrected an estate tax in 2011 with a $2 million exemption—now $4 million as of Jan. 1, 2013.
The next state to watch out for is North Carolina. Newly elected Rep. Governor Pat McCrory made abolishing the state estate tax one of his campaign promises: “North Carolina is now the only state in the Southeast with the death tax. This tax unfairly punishes those who would inherit their loved one’s possessions or business, forcing some families to sell off a small business or family farm just to pay the tax. As governor, [I] will fight to eliminate the death tax for North Carolinians.”
More from Forbes: (click green) A Guide To Understanding The Fiscal Cliff
Could more states add stand-alone estate taxes? A technical provision of the federal estate tax law includes a deduction for state tax paid—instead of the pre-2001 state death tax credit, which allowed states to share in the estate tax revenue the feds collected. For states that were hoping for a return to that revenue sharing, it’s possible that they will consider adding stand-alone taxes, according to James Walschlager, a research analyst at tax publisher CCH, a Wolters Kluwer business.
In the meantime, check out the interactive map showing state estate and inheritance taxes for 2013. Hover over each state to see the dollar amount exempt from taxes and the top rate.
Click green for further info:
- Interactive Map: The States With State Death Taxes For 2013
- 10 Reasons To Convert To A Roth IRA
- Retirement Planning For Late-Starter ________________________________________________________________________________
Tax Time Is ID Theft Time
When The Internal Revenue Service begins accepting tax returns, sending thousands of individual taxpayers and tax professionals to their computers to fill out forms and then e-file them.
You, however, are an electronic tax-filing holdout. You've heard the reports about all the tax-related identity theft. So you're still sending Uncle Sam your tax data on paper.
You might want to reconsider.
Yes, tax-time identity theft is a growing problem. A Government Accountability Office, or GAO, investigation last fall found that as of Sept. 30, 2012, the IRS had identified almost 642,000 incidents of identity theft.
Worse, according to the GAO, the IRS does not know the full extent of tax-filing ID theft. While the agency keeps count of the occurrences it discovers, it does not estimate the number of identity theft cases that go undetected.
Worst, the ID thieves are getting away with it. Unless the IRS pursues a criminal investigation, says the GAO, the feds generally do not know the real identity of the thieves.
But while the identity thieves do e-file fraudulent returns using stolen information from real taxpayers, the security breach that allowed them to get the info generally doesn't come from the e-filing system.
"For the most part, there is not substantially more risk for e-filing," says Denis G. Kelly, president of IDCuffs.com, an identity theft prevention and protection company. "In fact, when the check-clearing process was changed from physical checks to digital checks, the percentage of fraud decreased. The consensus for this decrease is the number of eyes that see checks in the process was significantly reduced."
So those thieving eyes get your tax and personal financial information from other sources and then use it to file a fake tax return in your name, usually tweaking the numbers to get a large refund.
And you, the taxpayer whose ID has been stolen, don't find out about it until you file your own 1040 and are told by the IRS that they already sent you your refund.
Jay Foley, a partner at ID Theft Info Source in San Diego, says a major problem is where a taxpayer's personal data is stored.
Reports of former tax preparation firm employees stealing client data is not uncommon, says Foley. "If I were an identity thief, I'd find a CPA office, steal a copy of his files and dummy up tax returns and shoot them through before his clients file. Tax thieves will shoot off a thousand returns. If they only get 200 back as fraudulent refunds, that's great. That's still 200 more than they had to begin with."
So what can you do to prevent tax-related identity theft? The same thing, say security experts at TrustedID, that you do at nontax time:
Go ahead and e-file, and soon.
"An argument could be made that e-filing actually decreases the rate of tax identity theft," says Kelly, in part because it reduces the number of possible criminals who handle your return and see your personal data.
Plus, says Kelly, "the absolute best tactic to prevent a criminal from stealing your tax refund is to file before them."
________________________________________________________
When The Internal Revenue Service begins accepting tax returns, sending thousands of individual taxpayers and tax professionals to their computers to fill out forms and then e-file them.
You, however, are an electronic tax-filing holdout. You've heard the reports about all the tax-related identity theft. So you're still sending Uncle Sam your tax data on paper.
You might want to reconsider.
Yes, tax-time identity theft is a growing problem. A Government Accountability Office, or GAO, investigation last fall found that as of Sept. 30, 2012, the IRS had identified almost 642,000 incidents of identity theft.
Worse, according to the GAO, the IRS does not know the full extent of tax-filing ID theft. While the agency keeps count of the occurrences it discovers, it does not estimate the number of identity theft cases that go undetected.
Worst, the ID thieves are getting away with it. Unless the IRS pursues a criminal investigation, says the GAO, the feds generally do not know the real identity of the thieves.
But while the identity thieves do e-file fraudulent returns using stolen information from real taxpayers, the security breach that allowed them to get the info generally doesn't come from the e-filing system.
"For the most part, there is not substantially more risk for e-filing," says Denis G. Kelly, president of IDCuffs.com, an identity theft prevention and protection company. "In fact, when the check-clearing process was changed from physical checks to digital checks, the percentage of fraud decreased. The consensus for this decrease is the number of eyes that see checks in the process was significantly reduced."
So those thieving eyes get your tax and personal financial information from other sources and then use it to file a fake tax return in your name, usually tweaking the numbers to get a large refund.
And you, the taxpayer whose ID has been stolen, don't find out about it until you file your own 1040 and are told by the IRS that they already sent you your refund.
Jay Foley, a partner at ID Theft Info Source in San Diego, says a major problem is where a taxpayer's personal data is stored.
Reports of former tax preparation firm employees stealing client data is not uncommon, says Foley. "If I were an identity thief, I'd find a CPA office, steal a copy of his files and dummy up tax returns and shoot them through before his clients file. Tax thieves will shoot off a thousand returns. If they only get 200 back as fraudulent refunds, that's great. That's still 200 more than they had to begin with."
So what can you do to prevent tax-related identity theft? The same thing, say security experts at TrustedID, that you do at nontax time:
- Don't talk to strangers. File your taxes with a reputable tax professional or use legitimate tax prep software programs.
- Don't fall for phishing schemes. The IRS does not initiate communications with taxpayers via email or phone. So that urgent email message about a possible refund is probably a scam.
- Do update your computer spyware and firewall. If you do open a malicious email, it could protect you from malware designed to steal your personal information.
Go ahead and e-file, and soon.
"An argument could be made that e-filing actually decreases the rate of tax identity theft," says Kelly, in part because it reduces the number of possible criminals who handle your return and see your personal data.
Plus, says Kelly, "the absolute best tactic to prevent a criminal from stealing your tax refund is to file before them."
________________________________________________________
Americans Rip Up Retirement Plans
Nearly Two-Thirds of Those Between 45 and 60 Plan Delays,
a Steep Rise From Two Years Ago
The Wall Street Journal - February 2013
The American workplace is about to get grayer.
Nearly two-thirds of Americans between the ages of 45 and 60 say they plan to delay retirement, according to a report to be released Friday by the Conference Board. That was a steep jump from just two years earlier, when the group found that 42% of respondents expected to put off retirement.
The increase was driven by the financial losses, layoffs and income stagnation sustained during the last few years of recession and recovery, said Gad Levanon, director of macroeconomic research at the organization and a co-author of the report, which is based on a 2012 survey of 15,000 individuals.
Matt Stern, 51 years old, a former analyst at a Manhattan hedge fund, met with a financial planner in December, days before he was laid off and the fund announced its imminent liquidation. At the meeting, the planner projected that Mr. Stern could retire at age 62. But now, with his assets down 10% to 20% from their 2008 peak, he is looking for a job and retooling his expectations for retirement.
"I might have to prioritize income over whatever calls to me on other levels," such as travel or being involved in nonprofit organizations, Mr. Stern said.
The labor force has been getting older for decades for reasons that range from longer life spans and better health to companies' replacement of defined-benefit pensions with higher-risk 401(k) plans.
But the stark increase in workers expecting to stay on the job—now 62%—was a surprise, Mr. Levanon said. After all, the stock market has largely earned back its losses, home prices are rising, and the unemployment rate is creeping down, all of which suggests workers should be feeling more secure.
Many middle-aged Americans, though, drew down their savings during those lean years and now find that leaving the work force on their original timeline is no longer viable, he said.
They are also facing low interest rates, an uncertain future for Social Security, and a lower likelihood of receiving employer health insurance after retirement.
The uptick may be good news for some industries—notably utilities and power companies—that face disruptive skills shortages when older workers retire.
However, senior employees can be expensive for companies, both in salary and health-care costs.
In addition, amid anemic economic growth, these workers may block the pipeline for younger employees trying to advance their careers.
In the long run, that concern is misplaced, said Kevin Cahill, an economist at the Sloan Center on Aging and Work at Boston College.
"Keeping older Americans in the work force is a good thing," he said. "Those workers have more financial security, employers have a larger labor pool to draw from, and we have more people to produce goods and services. There may be bumps like the recent contraction in the labor market, but we need to look beyond the short term."
Ultimately, many workers will still retire on schedule, Mr. Levanon added. Research shows that intentions don't necessarily align with reality, and people often end up retiring as they had expected because of health reasons, job losses or simply a miscalculation of their own desires.
Source: Wall Street Journal 2013
______________________________________________
Nearly Two-Thirds of Those Between 45 and 60 Plan Delays,
a Steep Rise From Two Years Ago
The Wall Street Journal - February 2013
The American workplace is about to get grayer.
Nearly two-thirds of Americans between the ages of 45 and 60 say they plan to delay retirement, according to a report to be released Friday by the Conference Board. That was a steep jump from just two years earlier, when the group found that 42% of respondents expected to put off retirement.
The increase was driven by the financial losses, layoffs and income stagnation sustained during the last few years of recession and recovery, said Gad Levanon, director of macroeconomic research at the organization and a co-author of the report, which is based on a 2012 survey of 15,000 individuals.
Matt Stern, 51 years old, a former analyst at a Manhattan hedge fund, met with a financial planner in December, days before he was laid off and the fund announced its imminent liquidation. At the meeting, the planner projected that Mr. Stern could retire at age 62. But now, with his assets down 10% to 20% from their 2008 peak, he is looking for a job and retooling his expectations for retirement.
"I might have to prioritize income over whatever calls to me on other levels," such as travel or being involved in nonprofit organizations, Mr. Stern said.
The labor force has been getting older for decades for reasons that range from longer life spans and better health to companies' replacement of defined-benefit pensions with higher-risk 401(k) plans.
But the stark increase in workers expecting to stay on the job—now 62%—was a surprise, Mr. Levanon said. After all, the stock market has largely earned back its losses, home prices are rising, and the unemployment rate is creeping down, all of which suggests workers should be feeling more secure.
Many middle-aged Americans, though, drew down their savings during those lean years and now find that leaving the work force on their original timeline is no longer viable, he said.
They are also facing low interest rates, an uncertain future for Social Security, and a lower likelihood of receiving employer health insurance after retirement.
The uptick may be good news for some industries—notably utilities and power companies—that face disruptive skills shortages when older workers retire.
However, senior employees can be expensive for companies, both in salary and health-care costs.
In addition, amid anemic economic growth, these workers may block the pipeline for younger employees trying to advance their careers.
In the long run, that concern is misplaced, said Kevin Cahill, an economist at the Sloan Center on Aging and Work at Boston College.
"Keeping older Americans in the work force is a good thing," he said. "Those workers have more financial security, employers have a larger labor pool to draw from, and we have more people to produce goods and services. There may be bumps like the recent contraction in the labor market, but we need to look beyond the short term."
Ultimately, many workers will still retire on schedule, Mr. Levanon added. Research shows that intentions don't necessarily align with reality, and people often end up retiring as they had expected because of health reasons, job losses or simply a miscalculation of their own desires.
Source: Wall Street Journal 2013
______________________________________________
$58 Billion Unclaimed:
Is Some of it Yours?
One unclaimed pension fund is worth a whopping $704,621, according to a U.S. agency
Date: January 2013
By CNNMoney.com
Millions of Americans are missing out on billions in forgotten cash.
Currently, states, federal agencies and other organizations collectively hold more than $58 billion in unclaimed cash and benefits. That's roughly $186 for every U.S. resident. The unclaimed property comes from a variety of sources, including abandoned bank accounts and stock holdings, unclaimed life insurance payouts and forgotten pension benefits.
Some people are owed serious cash. Last year, a Connecticut resident claimed $32.8 million, proceeds from the sale of nearly 1.3 million shares of stock. The recipient of the funds requested to remain anonymous and no further details were provided.
More than $300 million in pension benefits is currently owed to some 38,000 people, according to the Pension Benefit Guaranty Corp. The unclaimed benefits currently range from 12 cents to a whopping $704,621, with an average benefit of $9,100. Benefits may go unclaimed because an employee is unaware they had accrued retirement benefits at a previous employer, the agency said.
However, the majority of the forgotten funds -- roughly $41.7 billion -- are held by the states, according to the National Association of Unclaimed Property Administrators.
Under varying state laws, financial institutions and other companies are required to turn over any funds considered "abandoned," including uncashed paychecks, forgotten bank account balances, unclaimed refunds, insurance payouts and contents of safe deposit boxes. They have found some pretty unusual items like diamonds, bottles of liquor and sardines. Property is usually considered abandoned after the holder of the account or property has had no activity or contact with the owner for several years.
The states then try to find the owner through websites, newspaper ads and booths at events like state fairs. But every year, the vast majority of unclaimed funds remain in state coffers, where the cash can be used to fund government operations. Although the states are careful to note that the owner's claim to the property will always remain valid.
"The money belongs to the owner in perpetuity. Even if the owner dies, then their heirs could come back and claim it," said Carolyn Atkinson, West Virginia's deputy treasurer for unclaimed property and a past president of National Association of Unclaimed Property Administrators.
Florida's chief financial officer announced this month that the state had received 61,271 new unclaimed property accounts worth more than $25 million as part of a settlement with insurance company AIG (AIG). The settlement is one of several reached last year with major insurers, including MetLife (MET), Prudential (PRU) and Nationwide after regulators in 20 states audited the methods they used to locate life insurance beneficiaries after a policyholder's death.
The state auditors found that many insurers would use the Social Security Administration's Death Master File to cancel annuity payments to clients who passed away, but not to start issuing payments to their beneficiaries. In some cases, companies would continue collecting premium payments from the policy's value for years after the insured's death, depleting the cash reserves down to zero.
Through the settlements, those balances are being reinstated and remitted to the states. But in many cases, beneficiaries remain unaware of their policy claim and many of their current addresses are unknown, making it hard for the funds to be connected with their rightful owner.
"Once it goes to the state, it's unlikely that the rightful owner will be found," said Mark Paolillo, a Massachusetts-based accountant and Ryan LLC's abandoned and unclaimed property practice leader.
Are you owed money? Here's where you can find out.
MORE FROM
Is Some of it Yours?
One unclaimed pension fund is worth a whopping $704,621, according to a U.S. agency
Date: January 2013
By CNNMoney.com
Millions of Americans are missing out on billions in forgotten cash.
Currently, states, federal agencies and other organizations collectively hold more than $58 billion in unclaimed cash and benefits. That's roughly $186 for every U.S. resident. The unclaimed property comes from a variety of sources, including abandoned bank accounts and stock holdings, unclaimed life insurance payouts and forgotten pension benefits.
Some people are owed serious cash. Last year, a Connecticut resident claimed $32.8 million, proceeds from the sale of nearly 1.3 million shares of stock. The recipient of the funds requested to remain anonymous and no further details were provided.
More than $300 million in pension benefits is currently owed to some 38,000 people, according to the Pension Benefit Guaranty Corp. The unclaimed benefits currently range from 12 cents to a whopping $704,621, with an average benefit of $9,100. Benefits may go unclaimed because an employee is unaware they had accrued retirement benefits at a previous employer, the agency said.
However, the majority of the forgotten funds -- roughly $41.7 billion -- are held by the states, according to the National Association of Unclaimed Property Administrators.
Under varying state laws, financial institutions and other companies are required to turn over any funds considered "abandoned," including uncashed paychecks, forgotten bank account balances, unclaimed refunds, insurance payouts and contents of safe deposit boxes. They have found some pretty unusual items like diamonds, bottles of liquor and sardines. Property is usually considered abandoned after the holder of the account or property has had no activity or contact with the owner for several years.
The states then try to find the owner through websites, newspaper ads and booths at events like state fairs. But every year, the vast majority of unclaimed funds remain in state coffers, where the cash can be used to fund government operations. Although the states are careful to note that the owner's claim to the property will always remain valid.
"The money belongs to the owner in perpetuity. Even if the owner dies, then their heirs could come back and claim it," said Carolyn Atkinson, West Virginia's deputy treasurer for unclaimed property and a past president of National Association of Unclaimed Property Administrators.
Florida's chief financial officer announced this month that the state had received 61,271 new unclaimed property accounts worth more than $25 million as part of a settlement with insurance company AIG (AIG). The settlement is one of several reached last year with major insurers, including MetLife (MET), Prudential (PRU) and Nationwide after regulators in 20 states audited the methods they used to locate life insurance beneficiaries after a policyholder's death.
The state auditors found that many insurers would use the Social Security Administration's Death Master File to cancel annuity payments to clients who passed away, but not to start issuing payments to their beneficiaries. In some cases, companies would continue collecting premium payments from the policy's value for years after the insured's death, depleting the cash reserves down to zero.
Through the settlements, those balances are being reinstated and remitted to the states. But in many cases, beneficiaries remain unaware of their policy claim and many of their current addresses are unknown, making it hard for the funds to be connected with their rightful owner.
"Once it goes to the state, it's unlikely that the rightful owner will be found," said Mark Paolillo, a Massachusetts-based accountant and Ryan LLC's abandoned and unclaimed property practice leader.
Are you owed money? Here's where you can find out.
- State-held unclaimed property: Visit NAUPA's unclaimed.org for a map with links to each state's program.
- Life insurance: For benefits not held by the state, check the insurer's site directly. For example, MetLife has an online search.
- Pensions: For Pension Benefit Guaranty Corp. benefits, visit the agency's online search directory.
- U.S. savings bonds: More than 45 million matured savings bonds, worth nearly $16 billion, remain unredeemed, according to the U.S. Department of the Treasury. To search the database, visit treasuryhunt.gov.
- Tax refunds: In 2011, the Internal Revenue Service said it had $153.3 million in tax refund checks that were undeliverable. To make sure you've received your checks, visit the IRS'sWhere's my refund? tool.
- Overbid proceeds: If a foreclosed home or tax lien for delinquent taxes is sold at auction for a price above the money owed, the former property owner is owed the so-called "overbid proceeds," which are typically held at the country level. But, counties typically send notifications about the funds to the foreclosed address, so many people remain unaware of the extra cash, according to Mary Pitman, author of "The Little Book of Missing Money." These funds are different than other unclaimed funds in that the property owner's claim in some counties only last a few years. Contact the county clerk to find out which local agency holds the funds.
MORE FROM
Man finds (valuable) whale vomit*) on English beach
He makes more than $50,000 from the find
Another man in South Australia made $300,000
*) it may be coming out from the other end, states a specialist from The National Geographic News (see below)
Just because something's gross doesn't mean it isn't valuable. Case in point: Whale vomit (or...).
A man taking his dog for a walk on the beach came across a pile of (maybe! hopefully!) whale regurgitation. Now he could stand to make more than $50,000 from the find.
Who would pay tens of thousands of dollars for whale excrement? The perfume industry, of course. The substance, while foul smelling when it first hits land, becomes much more pleasant as it dries in the sun—and can be used to help prolong the scent of perfume.
According to the BBC, Ken Wilman's dog began sniffing the substance (known as ambergris) while walking on Morecambe beach in England. Wilman went to investigate, picked up the stone-like object, gave it a whiff and then dropped it like a bad habit. Wilman told the BBC: "When I picked it up and smelled it, I put it back down again and I thought 'urgh.'"
Wilman left the beach, but something about his stinky discovery stayed in his mind. He did a little research at home and figured out that it was likely ambergris. He then went back to the beach and retrieved the seven-pound object. A French dealer has already offered more than $50,000.
While these sorts of finds are rare, they do occur. Last year, an 8-year-old boy found a one-pound piece of ambergris that was expected to bring in up to $63,000. And in 2006, a man in South Australia found a whopping 32.5-pound piece of ambergris. Estimated value: $300,000.
If only cat hairballs had the same market value.
What's Ambergris?
Click green for further info
By Johnna Rizzo National Geographic News
Published August 30, 2012
Sperm whales eject an intestinal slurry called ambergris into the ocean, where the substance hardens as it bobs along. Eventually it gets collected along shores—most often as sheer happenstance, as in the case of eight-year-old Charlie Naysmith in the U.K. a few days ago.
Walking along the beach in Dorset with his dad, the boy found what looked to be a very odd rock. He and his dad used Google to help identify it as ambergris. Weighing more than a pound, it is said to be worth up to U.S. $63,000.
The value of ambergris lies in its role in the fragrance industry. High-end perfumes from houses such as Chanel and Lanvin take advantage of the ability of ambergris to fix scent to human skin.
The smell of ambergris itself varies from piece to piece, ranging from earthy to musky to sweet. If a perfume house's "nose"—the person responsible for choosing scents—likes the aroma, the ambergris can be worth thousands an ounce.
Though it is illegal to use ambergris in perfumes in the U.S. because of the sperm whale's endangered status, foreign markets, especially French, remain strong. (Learn secrets of whale evolution in National Geographic magazine.)
Scientists still don't know for sure the exact origins of ambergris. They do know that when sperm whales have a stomach or throat irritant, often a squid beak, they cover it in a greasy substance and cast it out.
(Rare Pictures: Giant Squid Eaten by Sperm Whale.)
It was once thought the ambergris was ejected by mouth. As of now, the argument seems to be weighted toward the back end of the whale.
Johnna Rizzo is a Departments editor for National Geographic magazine and the author of the nonfiction children's book Oceans. More of her writing on ambergris will appear in the magazine's October 2012 issue (search the web for it).
__________________________________
By Johnna Rizzo National Geographic News
Published August 30, 2012
Sperm whales eject an intestinal slurry called ambergris into the ocean, where the substance hardens as it bobs along. Eventually it gets collected along shores—most often as sheer happenstance, as in the case of eight-year-old Charlie Naysmith in the U.K. a few days ago.
Walking along the beach in Dorset with his dad, the boy found what looked to be a very odd rock. He and his dad used Google to help identify it as ambergris. Weighing more than a pound, it is said to be worth up to U.S. $63,000.
The value of ambergris lies in its role in the fragrance industry. High-end perfumes from houses such as Chanel and Lanvin take advantage of the ability of ambergris to fix scent to human skin.
The smell of ambergris itself varies from piece to piece, ranging from earthy to musky to sweet. If a perfume house's "nose"—the person responsible for choosing scents—likes the aroma, the ambergris can be worth thousands an ounce.
Though it is illegal to use ambergris in perfumes in the U.S. because of the sperm whale's endangered status, foreign markets, especially French, remain strong. (Learn secrets of whale evolution in National Geographic magazine.)
Scientists still don't know for sure the exact origins of ambergris. They do know that when sperm whales have a stomach or throat irritant, often a squid beak, they cover it in a greasy substance and cast it out.
(Rare Pictures: Giant Squid Eaten by Sperm Whale.)
It was once thought the ambergris was ejected by mouth. As of now, the argument seems to be weighted toward the back end of the whale.
Johnna Rizzo is a Departments editor for National Geographic magazine and the author of the nonfiction children's book Oceans. More of her writing on ambergris will appear in the magazine's October 2012 issue (search the web for it).
__________________________________
January 25, 2013
What the Small Player Can Expect
When Using a Lobbyist
Date: January 25, 2013
IF there is one thing most small-business owners have in common, it is that they have far less ability than big corporations to affect what happens to them politically.
Few small-business owners — the kind of people who accumulate wealth through a service or manufacturing business and are working at it every day — have the deep pockets of a major corporation. Consider what Amgen, the world’s largest biotechnology company, did to help win an exemption in the so-called fiscal cliff bill to extend its patent on a profitable dialysis drug for two more years at a great cost toMedicare. It sent its 74 lobbyists in Washington to meet with — and direct contributions to — a host of politicians who worked in its favor.
But even if small businesses can’t buy the kind of influence that a huge company like Amgen can, that does not mean they cannot buy influence at all. Still, as in other aspects of life, you get what you pay for.
Entrepreneurs would want to hire a lobbyist for a fairly straightforward reason: they have an issue they want addressed or changed and they have reached the point where they feel they need to act. What is more difficult is acting on that impulse effectively, knowing it could cost a lot of money.
Lawrence E. Scherer, a founder of State and Broadway, a lobbying firm in New York, said a typical retainer for a small-business client would be around $5,000 a month, but the assignment could last for a year or more. Suri Kasirer, once an aide to former Gov. Mario Cuomo of New York and president of Kasirer Consulting, said her typical retainer was $10,000 to $20,000 a month, with a three-month minimum.
“For small-business owners, the idea of having a lobbyist interact with a government is so novel and so out of their scope that $5,000 a month could seem daunting,” Mr. Scherer said. “But as government has more issues in front of it, it could be a cheap date.”
People who have success lobbying state and local governments — since the federal government is beyond the budget of individuals — tend to fall into three categories: they want something changed, they want something new or they want access.
Avik Kabessa, chief executive of Carmel Car and Limousine Service in New York City, said he became part of a group of livery car owners in 2008 that lobbied the state to establish a workers’ compensation fund for livery drivers and to repeal a sales tax on livery fares.
He said it took a year and a half for the lobbying effort to work. The costs were split among members of the group, called the Livery Round Table. (Livery companies fall between higher-end black car and limousine services and city taxis.)
“I wish we had the expertise, knowledge and contacts to have been able to do this ourselves,” he said. “But just as you would go to a doctor when you’re sick, you go to a lobbyist for your legislative affairs.”
Ms. Kasirer is working on a similar case with a group of small-business owners who do not often work well together. She is representing seven expediters — companies that are paid by contractors and developers to get various building permits in New York City. She said new rules could end their business.
“We were approached by a few of them, and we said, ‘Let’s get as many of them together as we could,’ ” she said. “They realized that ultimately they could be put out of business, or their business could be so severely handicapped that they would have to lay off people.”
For small-business owners, forming an ad hoc group and putting aside any competitive business interest to get something greater for their industry is important. So, too, is having the patience and the willingness to accept something short of their goal and then go back for more.
Domenic Rom, a senior vice president at Technicolor, a postproduction company for film and television, became part of a group of similar companies that wanted to lobby for a tax credit. While New York offered tax credits for shooting a film or television show in the state, it did not offer similar credits to the postproduction part of the industry, which includes editing, sound design and adding computer-generated effects.
Mr. Rom said the 14 companies created the Post New York Alliance and each paid $5,000 in dues. They began lobbying in 2009, working with Mr. Scherer. By the next year, they received a 10 percent tax credit for postproduction work.
He said it did little to increase the number of films and shows coming to New York, so the next year they went back to the Legislature. “We said thank you so much for the 10 percent,” Mr. Rom said. “We said it wasn’t really moving the needle. We said 30 percent would be better.”
When that was approved, 19 new projects worth some $30 million came to New York to do postproduction work, he said.
“People have to understand that the Legislature is an incrementalist institution,” Mr. Scherer said. “It takes time to move your initiative forward.”
That patience is certainly needed for someone trying to sell a product or service to a government agency. “There’s a huge market opportunity for lobbyists in New Jersey to work with clients who have a product or service that they want to sell, whether it’s solar, information technology, engineering services,” Dale J. Florio, managing partner at Princeton Public Affairs Group in Trenton, said. “You name it, counties are buying it.”
Small-business owners become stymied, he said, by not knowing where to turn or how to distinguish themselves from other businesses doing similar work.
Betty Crea Davidson is in this position now. She is trying to raise awareness of a software program she developed based on a difficult and costly technique to treat autism that she used with her son. She has turned to a lobbying firm to get her company, Apex Spectrum Guide, in front of state departments of education.
“We don’t know what door to knock on,” she said. But the lobbying fees, she said, were a cost of doing business and an investment in her company.
While a small-business owner is going to have the best chance of success on the local and state level, some will naturally fail and be out a lot of money.
Lobbyists said business owners had to be prepared to ask themselves what they were trying to accomplish and then be ready to put in a lot of effort.
“You want more than a meeting,” Ms. Kasirer said. “You want the correction. You want the contract. You need the next step.”
She said business owners needed to ask themselves a series of tough questions: What are legislators going to be interested in? How are you going to make the case that this makes sense? How does government benefit? Who loses? Are more people going to be paying taxes if this gets done?
Then comes the effort the business owner has to put in. “A lot of times, a small business thinks they have you on retainer and they don’t have to do any more,” Mr. Florio said. “They have to be an equal marketing partner. They have to do more to make it a success.”
And lest anyone forget, lobbying is a business, with its share of false prophets. “The less scrupulous could give you a lot of hope and not much else,” Mr. Florio said. “It’s clearly buyer beware when you look into the market for retaining a lobbying firm. It helps to understand local politics.”
MORE IN YOUR MONEY Bucks Blog: Wielding Influence, Even if You're Small
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Stocks That Popped in 2012
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Stocks that would have made you a bundle
The year's best-performing stock almost quadrupled its investors' money
Sectors that did well
STAF, Inc. has a list of reliable companies to manage your investment for a low or reasonable fee
Contact STAF, Inc. via an email to request for info
Related linksBy Rebecca Stropoli | The Exchange
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2012 was a year complete with mixed economic data, "QE infinity" actions from the Federal Reserve, ever-present euro zone worries, a "Wall Street is rigged" sentimentality and, of course, the continuing "fiscal cliff" soap opera. But for all the uncertainty that reigned amid the signs of a continuing -- if maddeningly sluggish -- economic recovery, the market overall saw some pretty solid returns. So far for 2012, the Dow Jones Industrial Average is up around 5%, the S&P 500 11% and the Nasdaq 15%. There has been some late-year loss due to "cliff" fears, and this may accelerate as we near 2013 with no budget deal yet sealed. But this seems like a good time to take a look at some of the stocks that have performed particularly well this past year.
For this exercise, Yahoo! Finance chose to go with the S&P 1,500 index, which includes the S&P 500 index of large cap stocks along with the MidCap 400 and SmallCap 600. Naturally, the smaller the market cap of a company is, the easier it is for its stock to record triple-digit gains. And the number one stock on our list is indeed that of a small-cap company, Headwaters Inc. (HW), a building-products outfit that started the year at just $2.18 a share and is now trading at $8.43. That makes for a rather eye-popping 273% to the upside, year-to-date. So if you, as an investor, had bought 1,000 shares in January, you would have paid just $2,180 and now you'd be sitting on $8,430 -- a profit of $6,250. Owning even thousands of shares of such a small stock wouldn't exactly see you through retirement, as owning a similar amount of the infinitely more expensive Apple (AAPL) surely would. (Note: Apple is up 26% year to date). But a profit of close to 300% is still a tidy one indeed.
[Related link: The Market in 2012 Stocks Up, Economy Sideways]
Headwaters isn't the only name on the S&P 1,500 top 10 that is related to the building and housing industry, which gave us some of the more positive data to point to this year. Investors in 2012 certainly seemed ready to bet that this data was signaling a real recovery and the housing bottom had at long last arrived -- even though there is inarguably a long, long way to go before we are even near where we were at the height of the boom. Lumber Liquidators (LL), which manufactures hardwood floors, is up an impressive 190%, while home-constructor PulteGroup Inc. (PHM) is up 187% and homebuilder M/I Homes (MHO) is up 168%. Of all of these, you'd be able to cash in the most with 1,000 shares of Lumber Liquidators, which is trading at $51 a share with a market cap of $1.42 billion.
Now, whether or not these stocks truly have legs -- recovery or no -- is a subject for debate; as Yahoo! Finance's own Michael Santoli told his Twitter audience recently, "Homebuilders enjoy no brand loyalty, have hardly [any control of] their costs. Housing sector upturn is real, [this] doesn't make builders good companies." Still, there's no denying that homebuilding and supply stocks were profitable for investors in 2012, and for some, that is good enough.
Healthcare is another sector that saw some upside this year; two healthcare companies grace our top 10 list, with Regeneron Pharmaceuticals (REGN) up 212% and staffing service AMN Healthcare (AHS) up 157%. Regeneron, with a $16.3 billion market cap, trades for the most by far of any other top 10 S&P 1,500 stocks, with shares at $173.04. You could have snagged 100 shares of REGN for $5,643 back in January and now you'd be sitting on $17,304; that's a pretty nice take of $11,661 for zero effort throughout the year.
[Related link: The Top-Searched Tickers of 2012]
Regarding the run-up in healthcare stocks in 2012, some experts have cited the Obamacare effect -- or even the anti-Obamacare effect. For instance, biotechs such as Regeneron are NOT affected by the Affordable Care Act; therefore, investors in such companies can focus more on the science of drug development -- and the profits they can bring -- and less on the political implications of healthcare insurance. The industry also saw a healthy surge in job growth this year, adding an average of 26,000 jobs per month, according to the Bureau of Labor Statistics. But as the new rules are rolled out, this sector as a whole, including managed-care and hospital stocks, could see some real volatility.
Sprint (S) is the lone telecommunications company on this list -- trading now at just $5.50 a share after starting the year at a mere $2.31, the stock is much cheaper than any of its competitors, including Verizon (VZ) and AT&T (T). At record lows, the stock was seen by some experts in 2012 as a good discount buy, despite its many challenges -- including billions of dollars in losses over the past seven years -- and the fact that it is a very distant third to Verizon and AT&T as far as customer base goes. Ahead for the company: the road to approval -- or not -- of its $2.1 billion takeover bid for crucial partner Clearwire Corp. (CLWR).
With a strong recent earnings performance and outlook, along with rising guest volume and higher rental revenues, timeshare company Marriott Vacations Worldwide (VAC) has been another big performer in 2012, with shares up 135% year-to-date.
And 3D Systems Corp. (DDD) has capitalized on the surging popularity -- and heightened buzz -- of 3D printing to come in at number two on our list, with a boost of 260% year-to-date.
And the natural gas boom of 2012 likely helped boost Exterran Holdings (EXH), a provider of services and equipment for oil and natural-gas production, 135%.
Below please see our full chart of the top 10 percentage gainers on the S&P 1,500, courtesy of FactSet (as of market close December 24). Do you own any of these -- or do you just wish you did?
TickerNamePriceYTD Chg
HWHeadwaters Inc.$8.3273%DDD3D Systems Corp.$51.9260%REGNRegeneron Pharmaceuticals Inc.$173.04212%LLLumber Liquidators Holdings Inc.$51.31190%PHMPulteGroup Inc.$18.15187%MHOM/I Homes Inc.$25.74168%AHSAMN Healthcare Services Inc.$11.42157%EXHExterran Holdings Inc.$21.46135%SSprint Nextel Corp.$5.5135%VACMarriott Vacations Worldwide Corp.$40.33135%
Related Quotes:HW 8.08 -0.41 (-4.83%)DDD 48.94 -2.91 (-5.61%)REGN 164.475 -5.53 (-3.26%)LL 49.82 -1.51 (-2.94%)PHM 17.40 -0.39 (-2.19%)MHO 24.28 -1.02 (-4.03%)AHS 11.26 -0.27 (-2.34%)EXH 20.89 -0.46 (-2.15%)S 5.575 0.01 (+0.27%)VAC 39.27 0.70 (+1.81%)^GSPC 1,412.83 -7.00 (-0.49%)^DJI 13,055.40 -59.19 (-0.45%)^IXIC 2,973.86 -16.30 (-0.55%)
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See the article below for stocks that went down
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See the article above for stocks that went up
9 Stocks Hammered in 2012
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The executives at some U.S. companies are glad 2012 is over. These are the firms that went off the rails, leading to large share-price losses.
For this story, we looked at the nine biggest share-price losers among U.S.-based companies with market values of at least $2 billion as of Dec. 28, using data from Fidelity.com. These companies had share-price drops of 44 percent to 78 percent.
Groupon Inc (GRPN) -78 Percent
The daily deals company has been listed for a little more than a year, and it has been a challenge, losing the most value of any company we looked at on a percentage basis. The Securities and Exchange Commission questioned the company's accounting practices, which led Groupon revise its revenue. The stock for the daily deals site continued to plunge after the company decided to retain its young CEO, Andrew Mason. The company is working to expand beyond online coupons, which has seen a host of competitors move into the space, stuffing consumer e-mail boxes with offers.
Hillshire Brands Co. (HSH) -70.6 Percent
The food manufacturing company, formerly known as Sara Lee Corp., decided the best way to revive the brand was to rename itself after its slumping nameplate, Hillshire Farms. The company spun-off its coffee and tea business and launched a revamp of the newly named Hillshire Brands. But that largely failed to impress investors. According to the Wall Street Journal, the company's meat business has seen a decline over the years from "a mix of price increases to cover commodity costs, stale product packaging and a heavy focus on cost-cutting." CEO Sean Connolly is attempting a turnaround by focusing on new products, and backing them with more marketing and advertising.
Apollo Group Inc. (APOL) -62 Percent
The Phoenix-based for-profit higher education firm, which runs the University of Phoenix, has been hit hard by slumping enrollment and more regulation, especially in federal student loans that have loaded many students with far more debt than they are able to repay. According to Zacks, an investment research firm, earnings fell at the company after enrollment at the group's flagship school dropped. The University of Phoenix announced that it will start more than 100 new partnerships with community colleges in 2013 to boost enrollment.
Alpha Natural Resources (ANR) -52 Percent
The largest coal mining company in North America swallowed a lot of debt after purchasing Massey Energy for $7.1 billion in cash and stock in 2011. Analysts at Morningstar expect the company to be impacted by its "hefty debt load" for years to come.
Best Buy Co. Inc (BBY) -50 Percent
The electronics company has been battered trying to compete in a low profit margin business where consumers are all too happy to "showroom" them by looking the goods over in stores, then buying cheaper online. Earlier this year, the company announced plans to trim stores and lay off employees and then CEO Brian Dunn stepped down after allegedly having an inappropriate relationship with an employee. Best Buy founder Richard Schulze has proposed a $24-to-$26 a share takeover, but no offer has materialized.
Marvell Technology Group (MRVL) -48 Percent
This chip maker lost a patent suit brought by Carnegie Mellon University, which won a $1.17 billion award by a federal jury. The jury found that Marvell sold semiconductors using technology developed at the school, but paid no license fees. The patents covered technology that boosts the accuracy with which hard drive circuits read data from magnetic disks. Marvell unsuccessfully claimed that the technology had been in use before the college applied for its patents. An appeal is planned.
Herbalife LTD (HLF) -54 Percent
Multi-level marketer Herbalife has been under attack from investor William Ackman, founder of Pershing Square Capital Management LP, who claims the nutritional-supplement maker operates as a "pyramid scheme." The company says Ackman has made a "malicious attack on Herbalife's business model based largely on outdated, distorted and inaccurate information." Ackman is a well-known short-seller, who makes money by betting a company's share price will decline. Herbalife has set a meeting for Jan. 10 with investors and analysts where executives will offer a "comprehensive response to investor questions on its business model."
JC Penney Co. (JCP) -45 Percent
Things couldn't have been much worse for the department store retailer this year, which grappled with an earnings, sales and share price rout after its move to cut the coupons and sales and offer everyday low prices floundered. It turns out that shoppers like the gimmicks, and store sales swooned. New CEO Ron Johnson has overhauled merchandise, the appearance of its stores and pricing. The strategy may be working as the shares picked up toward year end and Oppenheimer analysts Brian Nagel and Rupesh Parikh reaffirmed a "Buy" rating on the firm last week, writing that traffic in stores in the weekend before Christmas was strong.
Hewlett-Packard Co. (HPQ) -44 percent
CEO Meg Whitman is struggling to turn the company around as PC sales decline and the acquisition of software firm Autonomy caused a write-down of $8.8 billion because of alleged accounting improprieties. But the company's woes aside, H-P took in more than $125 billion in the past year, second only to Apple Corp., and many analysts believe the sell-off has been overdone.
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Source:
ABC News
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9 Stocks Hammered in 2012
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The executives at some U.S. companies are glad 2012 is over. These are the firms that went off the rails, leading to large share-price losses.
For this story, we looked at the nine biggest share-price losers among U.S.-based companies with market values of at least $2 billion as of Dec. 28, using data from Fidelity.com. These companies had share-price drops of 44 percent to 78 percent.
Groupon Inc (GRPN) -78 Percent
The daily deals company has been listed for a little more than a year, and it has been a challenge, losing the most value of any company we looked at on a percentage basis. The Securities and Exchange Commission questioned the company's accounting practices, which led Groupon revise its revenue. The stock for the daily deals site continued to plunge after the company decided to retain its young CEO, Andrew Mason. The company is working to expand beyond online coupons, which has seen a host of competitors move into the space, stuffing consumer e-mail boxes with offers.
Hillshire Brands Co. (HSH) -70.6 Percent
The food manufacturing company, formerly known as Sara Lee Corp., decided the best way to revive the brand was to rename itself after its slumping nameplate, Hillshire Farms. The company spun-off its coffee and tea business and launched a revamp of the newly named Hillshire Brands. But that largely failed to impress investors. According to the Wall Street Journal, the company's meat business has seen a decline over the years from "a mix of price increases to cover commodity costs, stale product packaging and a heavy focus on cost-cutting." CEO Sean Connolly is attempting a turnaround by focusing on new products, and backing them with more marketing and advertising.
Apollo Group Inc. (APOL) -62 Percent
The Phoenix-based for-profit higher education firm, which runs the University of Phoenix, has been hit hard by slumping enrollment and more regulation, especially in federal student loans that have loaded many students with far more debt than they are able to repay. According to Zacks, an investment research firm, earnings fell at the company after enrollment at the group's flagship school dropped. The University of Phoenix announced that it will start more than 100 new partnerships with community colleges in 2013 to boost enrollment.
Alpha Natural Resources (ANR) -52 Percent
The largest coal mining company in North America swallowed a lot of debt after purchasing Massey Energy for $7.1 billion in cash and stock in 2011. Analysts at Morningstar expect the company to be impacted by its "hefty debt load" for years to come.
Best Buy Co. Inc (BBY) -50 Percent
The electronics company has been battered trying to compete in a low profit margin business where consumers are all too happy to "showroom" them by looking the goods over in stores, then buying cheaper online. Earlier this year, the company announced plans to trim stores and lay off employees and then CEO Brian Dunn stepped down after allegedly having an inappropriate relationship with an employee. Best Buy founder Richard Schulze has proposed a $24-to-$26 a share takeover, but no offer has materialized.
Marvell Technology Group (MRVL) -48 Percent
This chip maker lost a patent suit brought by Carnegie Mellon University, which won a $1.17 billion award by a federal jury. The jury found that Marvell sold semiconductors using technology developed at the school, but paid no license fees. The patents covered technology that boosts the accuracy with which hard drive circuits read data from magnetic disks. Marvell unsuccessfully claimed that the technology had been in use before the college applied for its patents. An appeal is planned.
Herbalife LTD (HLF) -54 Percent
Multi-level marketer Herbalife has been under attack from investor William Ackman, founder of Pershing Square Capital Management LP, who claims the nutritional-supplement maker operates as a "pyramid scheme." The company says Ackman has made a "malicious attack on Herbalife's business model based largely on outdated, distorted and inaccurate information." Ackman is a well-known short-seller, who makes money by betting a company's share price will decline. Herbalife has set a meeting for Jan. 10 with investors and analysts where executives will offer a "comprehensive response to investor questions on its business model."
JC Penney Co. (JCP) -45 Percent
Things couldn't have been much worse for the department store retailer this year, which grappled with an earnings, sales and share price rout after its move to cut the coupons and sales and offer everyday low prices floundered. It turns out that shoppers like the gimmicks, and store sales swooned. New CEO Ron Johnson has overhauled merchandise, the appearance of its stores and pricing. The strategy may be working as the shares picked up toward year end and Oppenheimer analysts Brian Nagel and Rupesh Parikh reaffirmed a "Buy" rating on the firm last week, writing that traffic in stores in the weekend before Christmas was strong.
Hewlett-Packard Co. (HPQ) -44 percent
CEO Meg Whitman is struggling to turn the company around as PC sales decline and the acquisition of software firm Autonomy caused a write-down of $8.8 billion because of alleged accounting improprieties. But the company's woes aside, H-P took in more than $125 billion in the past year, second only to Apple Corp., and many analysts believe the sell-off has been overdone.
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Source:
ABC News
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There’s more than meets the eye to the big legal settlements you’ve been reading
about involving some of the nation’s biggest banks
THE numbers seem eye-popping. So many billions here for supposed mortgage
abuses, so many billions there for questionable foreclosures
Actually, there’s less than meets the eye
Paying the Price, but Often Deducting It
Date: January 12, 2013
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THE numbers seem eye-popping. So many billions here for supposed mortgage abuses, so many billions there for questionable foreclosures.
But there’s more than meets the eye to the big legal settlements you’ve been reading about involving some of the nation’s biggest banks.
Actually, there’s less than meets the eye.
The dollar signs are big, but they aren’t as big as they look, at least for the banks. That’s because some or all of these payments will probably be tax-deductible. The banks can claim them as business expenses. Taxpayers, therefore, will likely lighten the banks’ loads.
There is nothing new about corporations reaping tax benefits from payments made to remedy wrongdoing. Every so often, though, the topic stirs outrage. After the Gulf of Mexico oil spill, for example, BP received a $10 billion tax windfall by writing off $37.2 billion in cleanup expenses.
With multibillion-dollar mortgage settlements making headlines this year and last, the question has come to the fore again. Why should taxpayers subsidize corporations that are paying to right sometimes egregious wrongs? That is a particularly weighty question, given the urgent need for tax revenue to offset the ballooning federal budget deficit.
Under federal law, money paid to settle a company’s actual or potential liability for a civil or criminal penalty is not deductible. But, this being taxes, the issue is complicated. As Robert W. Wood, a tax lawyer, said in a 2009 Tax Notes article, “The tax deduction for business expenses is broad enough to include most settlements and judgments.”
In an interview last week, Mr. Wood, who is also the author of “Taxation of Damage Awards and Settlement Payments,” said the test for deductibility boils down to whether the payment is a penalty or is meant to be remedial. “I don’t know the specifics on these mortgage settlements,” he said, “but if any of the lenders are putting a bunch of money into a pot that goes to help people, yes, I would assume that everybody will deduct that.”
Nevertheless, the deductibility test is not always clear. And companies naturally push hard for these tax benefits when they negotiate settlements with the government.
Unfortunately, the government rarely specifies what the tax treatment of a settlement should be, leaving enforcement to the Internal Revenue Service. One exception is the Securities and Exchange Commission. Since 2003, it has barred companies from deducting settlement costs as a business expense.
Senator Charles Grassley, the Iowa Republican who is a senior member of the Senate Finance Committee, has been critical of favorable tax treatments of settlements. I asked him last week about the issue as it relates to mortgage settlements.
“You can be sure the Wall Street banks consider tax consequences in negotiations and the government should, too,” he said. “Any portion of a settlement that’s intended to be a penalty should include language clarifying it isn’t deductible. Otherwise, the government’s punishment will have less sting than intended.”
IT is to be expected that corporations, like any taxpayers, will do what they can to reduce their tax bills. And a 2005 report from the Government Accountability Office suggests that tax benefits in settlements are prevalent. Examining more than $1 billion in settlements made by 34 companies, the G.A.O. found that 20 had deducted some or all of the money from their tax bills.
But as Mr. Grassley suggested, the government can take deductibility off the table as an option. And occasionally it does. For example, a Justice Department spokesman said that there would be no deductibility of the $500 million penalty and fine portion of the settlement reached with UBS last month in regards to manipulation of interest rates.
Certainly, a settlement’s punitive effect is lessened by any tax sweeteners it generates. Perhaps that’s why it is rarely clear from the public announcements that some or all of the settlement amounts will be deductible.
Consider last week’s settlement between the government and large mortgage servicers over foreclosure abuses. Wells Fargo said in its news release that the bank would pay $766 million in cash and contribute $1.2 billion to foreclosure-prevention activities. But are those after-tax or pretax numbers? No mention was made, and a spokeswoman declined to comment other than to say that Wells Fargo “is a compliant taxpayer” that fulfills all its tax obligations.
Or consider the recent settlements over soured mortgages reached by Bank of America and Fannie Mae and Freddie Mac. These are almost certainly tax-deductible, Mr. Wood said, because these are probably considered deals between private parties, even though taxpayers own Fannie and Freddie.
So the deal announced last week by Bank of America to pay Fannie Mae $10.3 billion for a mortgage-related settlement, as well as the $2.62 billion in cash paid by the bank to Fannie and Freddie Mac in late 2010, probably generated, or will generate, significant tax benefits through deductions for the bank. A Bank of America spokesman declined to comment.
Phineas Baxandall, senior analyst for tax and budget policy at the United States Public Interest Research Group, a consumer-oriented nonprofit, and Ryan Pierannunzi, a tax and budget associate there, explored this issue in a report published last week.
The report, titled “Subsidizing Bad Behavior,” details the history of the practice and suggests that government agencies should follow the S.E.C.’s lead and disallow deductibility in settlements. Barring that, the authors said, regulators should disclose only the after-tax amounts of settlements, so that people understand how much money is really being paid.
In an interview last week, Mr. Baxandall noted that government agencies might not want to do that. “From the agencies’ point of view, unless the public or someone is pressuring them to do otherwise, they want a big number to tout,” he said. “Tax deductibility allows them to come out with a bigger number.”
CONGRESS has tried to change this setup. In 2003, Mr. Grassley and two other senators introduced the Government Settlement Transparency Act.
It would have required that payments made by companies acknowledging actual or potential violations of a law would not be tax-deductible. The legislation never passed.
Bills have also been introduced in Congress that would bar deductibility on punitive damage awards arranged among private parties. Those have died, too. Past administrations have supported this idea, and the Obama administration has a proposal in its 2013 budget stating that no deduction would be allowed in such a circumstance. That proposal also states that when an existing insurance policy covered the payment of punitive damages, the amount paid would be considered income to the insured person.
Not a bad idea.
As settlements for corporate misdeeds pile up, perhaps it will get some traction.
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Source: NYT
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In Investing, No Need for Sudden Death
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“AMERICA loves a winner,” Gen. George S. Patton Jr. told the troops in 1944, and he was surely right. The general also declared, “America will not tolerate a loser.” He was wrong on that one, but how could he have known about the Mets?
Frank Deford, the sportswriter, has drawn another conclusion about our national preferences: Americans don’t like losing, but what we really can’t stomach is a tie.
In a tongue-in-cheek radio commentary, he noted the oft-repeated observation that “a tie is like kissing your sister,” adding that “if there is one thing the red states and blue states can agree on, it is that.”
In 1996, college football eliminated ties, and the National Hockey League banished them in 2004. Ties are still frequent in soccer — but that may explain why that beautiful game is more beloved abroad than in the United States. Our distaste for ties, Mr. Deford says, “is one thing that sets us sons of liberty apart from most of the rest of the world.”
Playing for a tie may go against the grain of most American sports, but it should be central in investing. That’s because a core finding of modern finance theory is that we don’t need to beat the market. In fact, for most of us, once we’ve decided how much risk we want to bear, a better approach is aiming to tie — or match — the market return.
That’s the message of William J. Bernstein, an investment adviser and author, most recently, of the e-book, “Skating Where the Puck Was.”Periodically, Mr. Bernstein says, some investment manager discovers a way to generate outsize returns. Whether the favored asset class is Internet shares or gold bullion or oil futures or mortgage-backed securities, the new market-beater isn’t likely to last.
“As soon as one gets discovered, it’s already gone,” he writes. Matching the market is the best that most of us should hope to do.
Much the same insight appears in new research by two finance professors, R. David McLean of the University of Alberta and the Massachusetts Institute of Technology, and Jeffrey Pontiff of Boston College. The professors analyzed 82 academic studies that came up with ways of outperforming the market.
In their paper, they found that as soon as these methods were published, their efficacy began to decay, probably because other investors soon copied them. The paper, available online, is titled “Does Academic Research Destroy Stock Return Predictability?”
In an interview, Professor McLean said, “After publication of a paper about an investing strategy, on average, the performance of that strategy decayed by 35 percent.”
The professors didn’t assess the actual costs of putting any of these strategies into effect, but it’s likely that the costs outweigh the benefits for individual investors. “I doubt that it would make sense for most people to try them at home,” Professor McLean said.
And Professor Pontiff added, “I tell my own students that the core of their own personal investments probably ought to be a low-cost index fund that mirrors the market.”
IN his e-book, Mr. Bernstein acknowledges that some talented people do manage to beat the market, at least for a while. Some move ahead of the pack by discerning opportunities on a new financial frontier. But such vision is rare and such opportunities are fleeting. “It does happen, and people try to copy them, and that’s the problem,” he said in an interview.
In his book, he cites the late Sir John Templeton, who started a mutual fund, Templeton Growth, that was among the first in the United States to invest extensively abroad. In 1970, Mr. Bernstein says, Japanese stocks constituted 60 percent of the fund, and it performed splendidly. But as other foreign investors bought Japanese shares, and as global market performance became more correlated, that outperformance faded, Mr. Bernstein says. (Mr. Templeton was adept enough to shift the fund’s focus and find other opportunities.)
Similarly, Mr. Bernstein says, David Swensen, manager of the Yale endowment, took the “radical” step in the 1980s of moving more than half of the endowment’s assets into alternative asset classes like hedge funds, private equity, real estate and commodity futures.
Mr. Swensen was way ahead of most investors, and his strategy worked brilliantly, Mr. Bernstein writes. From July 1987 to June 2007, Mr. Swensen’s annualized return was 15.6 percent, Mr. Bernstein says, 4.8 percentage points higher than the Standard & Poor’s 500-stock index. “Better yet, along the way, the endowment experienced considerably less volatility,” the author adds.
Mr. Swensen’s unusually strong record inspired copycats. The Yale model spread throughout university endowments and public and corporate pension funds, and nearly everyone tried to beat the performance of everyone else. The results were all too predictable, Mr. Bernstein says.
“As a dismal but useful rule, most good investment ideas eventually get run into the ground,” he writes. Lately, the performance of university endowments, including Yale’s, has been less impressive. Over the three- and five-year periods that ended in mid-2011, he says, a simple balanced index fund portfolio, 60 percent in stocks and 40 percent in bonds, beat the average university endowment. And putting money in the balanced index fund requires no skill and minimal fees.
The alternative approach — trying to duplicate the experience of a pioneer — is where Mr. Bernstein’s book title comes in. Copying exceptional strategies is like “skating where the puck was,” he says. As Wayne Gretzky, the hockey great, was taught by his father back when the N.H.L. still had ties, it’s better to skate where the puck will be.
That’s hard to do, though, and very risky. Mr. Bernstein, a retired neurologist based in Portland, Ore., says it’s better to play for a tie by assessing how much risk you are able to bear, allocating the assets in your portfolio carefully and using low-cost index funds to match the market’s returns.
Professor McLean adds that even if you identify a market anomaly that suggests a profitable strategy — overweighting small-cap value stocks, for example — you might use low-cost index funds in that category to exploit it. Match the performance of these market sectors, he says. You don’t need to take on extra risk by trying to beat them.
That’s why the metaphor for this approach may come from soccer, after all: sometimes the smartest strategy is just playing for a tie.
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Source: NYT
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Man Squatting in $2.5M Mansion
Attempts 'Adverse Possession'
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The neighbor of a Florida man invoking an obscure real estate law to stake a claim to an empty $2.5 million mansion said he believes that the man is a pawn in a attempt to cash in on the empty property.
Andre "Loki" Barbosa has lived in the five-bedroom Boca Raton, Fla., waterside property since July, and police have reportedly been unable to remove him. The Brazilian national, 23, who reportedly refers to himself as "Loki Boy," cites Florida's "adverse possession" law in which a party may acquire title from another by openly occupying their land and paying real property tax for at least seven years.
The house is listed as being owned by Bank of America as of July 2012, and that an adverse possession was filed in July.
After Bank of America foreclosed on the property last year, the Palm Beach County Property Appraiser's Office was notified that Barbosa would be moving in, according to the South Florida Sun-Sentinel.
The Sun-Sentinel reported that he posted a notice in the front window of the house naming him as a "living beneficiary to the Divine Estate being superior of commerce and usury."
On Facebook, a man named Andre Barbosa calls the property "Templo de Kamisamar."
A neighbor of the Boca property, who asked not be named, told ABCNews.com that he entered the empty home just before Christmas to find four people inside, one of who said the group is establishing an embassy for their mission, and that families would be moving in and out of the property. Barbosa was also among them.
Police were called Dec. 26 to the home but did not remove Barbosa, according to the Sentinel. Barbosa reportedly presented authorities with the adverse possession paperwork at the time.
The neighbor said he believes that Barbosa is a"patsy."
"This young guy is caught up in this thing," the neighbor said. "I think it's going on on a bigger scale."
Bank of America responded to ABCNews.com, saying that it is in communication with the Boca Raton police department regarding concerns at the house.
"There is a certain legal process we are required by law to follow and we have filed the appropriate action. The bank is taking this situation seriously and we will work diligently to resolve this matter," the bank said in a statement.
Barbosa could not be reached for comment.
The Florida Department of revenue even posts the form to establish adverse possession on its website, but it is not the equivalent of a lease.
The neighbor says that although the lights have been turned on at the house, the water has not, adding that this makes it clear it is not a permanent residence. The neighbor also says that the form posted in the window is "total gibberish," which indicated that the house is an embassy, and that those who enter must present two forms of identification, and respect the rights of its indigenous people.
"I think it's a group of people that see an opportunity to get some money from the bank," the neighbor said. "If they're going to hold the house ransom, then the bank is going to have to go through an eviction process.
"They're taking advantage of banks, where the right hand doesn't know where the left hand is. They can't clap."
Comments from the public:
(1) It's Bank of America... Get the INS involved and check their immigration status...
You can't "adversy possess" anything while you're being deported.
(2) People beware of ridiculous laws. In most states, if you have a house guest and they won't leave, you have to go through an eviction process to get them out. In most states, if you have empty property and you go in and find someone living there, you have to go through an eviction process to get them out. Truth. Ridiculous, but true.
(3) ONLY IN AMERICA, too bad that people here illegally are allowed to stay. Did you know if you want to move to Mexico you have to prove a sizeable monthly income to stay? They don't want you there if you cant afford to take care of yourself, DUH. Of course, this man might be a citizen....it doesn't say........I wonder why?
(4) It may not be as clear cut as you think. We inherited a house in Staten Island. While we were in the process of selling the "squatters" moved in. My buyer went to occupy the home and they would not let him in. I told the buyer to go to the police. They would only take a complaint from the owner. I called from Texas and was told the complaint had to be made in person. I flew to New York and went to the police. They said I needed to go to the city marshal and file the complaint. The marshal said he would go to the address and notice the squatter to leave. If they did not leave I would get permission to sue them...takes about $5000 and 2 years to complete the process. I said I was going to the house and personally evict them. I was told I would be arrested. The home belonged to the squatters until I proved differently. We went to the home and the squatters said if I would go back to Texas they would leave. A few days later my buyer returned and they told him to sue as they knew the law and it would take two years to evict them. I had a friend in Queens who told me all along to let him handle it. Now was the time. I called "Johnny S." on a Monday afternoon. Tuesday morning he called to tell my buyer to move in. He loaded the Caddy limo...the black one with Jersey plates...with a half dozen teamsters. The squatters would not open the door. He kicked it down and chased the %^&#@ into the attic. Guns were pulled. Leave you live. Anyone here when the painter shows up in the morning is a dead %^&*& #%&*@$. He went by early Tuesday and they were gone. I got to sell my house. The "boys" would not exist if they did not provide for the needs of their friends.
____________________________________________
Attempts 'Adverse Possession'
Click green for further info
The neighbor of a Florida man invoking an obscure real estate law to stake a claim to an empty $2.5 million mansion said he believes that the man is a pawn in a attempt to cash in on the empty property.
Andre "Loki" Barbosa has lived in the five-bedroom Boca Raton, Fla., waterside property since July, and police have reportedly been unable to remove him. The Brazilian national, 23, who reportedly refers to himself as "Loki Boy," cites Florida's "adverse possession" law in which a party may acquire title from another by openly occupying their land and paying real property tax for at least seven years.
The house is listed as being owned by Bank of America as of July 2012, and that an adverse possession was filed in July.
After Bank of America foreclosed on the property last year, the Palm Beach County Property Appraiser's Office was notified that Barbosa would be moving in, according to the South Florida Sun-Sentinel.
The Sun-Sentinel reported that he posted a notice in the front window of the house naming him as a "living beneficiary to the Divine Estate being superior of commerce and usury."
On Facebook, a man named Andre Barbosa calls the property "Templo de Kamisamar."
A neighbor of the Boca property, who asked not be named, told ABCNews.com that he entered the empty home just before Christmas to find four people inside, one of who said the group is establishing an embassy for their mission, and that families would be moving in and out of the property. Barbosa was also among them.
Police were called Dec. 26 to the home but did not remove Barbosa, according to the Sentinel. Barbosa reportedly presented authorities with the adverse possession paperwork at the time.
The neighbor said he believes that Barbosa is a"patsy."
"This young guy is caught up in this thing," the neighbor said. "I think it's going on on a bigger scale."
Bank of America responded to ABCNews.com, saying that it is in communication with the Boca Raton police department regarding concerns at the house.
"There is a certain legal process we are required by law to follow and we have filed the appropriate action. The bank is taking this situation seriously and we will work diligently to resolve this matter," the bank said in a statement.
Barbosa could not be reached for comment.
The Florida Department of revenue even posts the form to establish adverse possession on its website, but it is not the equivalent of a lease.
The neighbor says that although the lights have been turned on at the house, the water has not, adding that this makes it clear it is not a permanent residence. The neighbor also says that the form posted in the window is "total gibberish," which indicated that the house is an embassy, and that those who enter must present two forms of identification, and respect the rights of its indigenous people.
"I think it's a group of people that see an opportunity to get some money from the bank," the neighbor said. "If they're going to hold the house ransom, then the bank is going to have to go through an eviction process.
"They're taking advantage of banks, where the right hand doesn't know where the left hand is. They can't clap."
Comments from the public:
(1) It's Bank of America... Get the INS involved and check their immigration status...
You can't "adversy possess" anything while you're being deported.
(2) People beware of ridiculous laws. In most states, if you have a house guest and they won't leave, you have to go through an eviction process to get them out. In most states, if you have empty property and you go in and find someone living there, you have to go through an eviction process to get them out. Truth. Ridiculous, but true.
(3) ONLY IN AMERICA, too bad that people here illegally are allowed to stay. Did you know if you want to move to Mexico you have to prove a sizeable monthly income to stay? They don't want you there if you cant afford to take care of yourself, DUH. Of course, this man might be a citizen....it doesn't say........I wonder why?
(4) It may not be as clear cut as you think. We inherited a house in Staten Island. While we were in the process of selling the "squatters" moved in. My buyer went to occupy the home and they would not let him in. I told the buyer to go to the police. They would only take a complaint from the owner. I called from Texas and was told the complaint had to be made in person. I flew to New York and went to the police. They said I needed to go to the city marshal and file the complaint. The marshal said he would go to the address and notice the squatter to leave. If they did not leave I would get permission to sue them...takes about $5000 and 2 years to complete the process. I said I was going to the house and personally evict them. I was told I would be arrested. The home belonged to the squatters until I proved differently. We went to the home and the squatters said if I would go back to Texas they would leave. A few days later my buyer returned and they told him to sue as they knew the law and it would take two years to evict them. I had a friend in Queens who told me all along to let him handle it. Now was the time. I called "Johnny S." on a Monday afternoon. Tuesday morning he called to tell my buyer to move in. He loaded the Caddy limo...the black one with Jersey plates...with a half dozen teamsters. The squatters would not open the door. He kicked it down and chased the %^&#@ into the attic. Guns were pulled. Leave you live. Anyone here when the painter shows up in the morning is a dead %^&*& #%&*@$. He went by early Tuesday and they were gone. I got to sell my house. The "boys" would not exist if they did not provide for the needs of their friends.
____________________________________________
SERIOUS WARNING
Protect your credit properly
This article below shows how this can affect also your credit - in case your ID info is stolen and used
Consult your accountant, lawyer (who knows the facts), or search the web
and take action before it gets too late - protect your credit properly
ID theft is one of the biggest "industries" worldwide
ID theft can happen anytime to anyone
Prisoners rake in millions from tax fraud
Just because they're already behind bars doesn't mean they aren't making out like bandits
Prisoner tax fraud has ballooned in recent years. In 2010, more than 91,000 inmate returns claimed $758 million in fraudulent refunds, a new audit from the Treasury Inspector General for Tax Administration finds. That's more than double the previous year.
While the IRS stopped the vast majority of fraudulent refunds from actually getting into the hands of prisoners, $35 million still slipped through the cracks.
"There is no limit to what the criminal mind is capable of," said Thomas Cooke, professor of accounting and business law at Georgetown University. "Identity theft is all too common today and filing a return with fraudulent data is all too easy."
The number of fraudulent prisoner tax returns continued to increase in 2011 and 2012, although the IRS has yet to put a number on bogus refunds.
Little to lose: Filing fake tax returns is a tempting way for prisoners to get some easy cash -- especially when they see how lucrative it has been for other inmates.
"The information is easily available to these individuals, [and] the crime can be committed with limited materials," said Raul Vargas, fraud operations manager at IDentity Theft 911.
Some prisoners use stolen identities, often from other inmates. Others use their own information but inflate their income and claim large amounts of tax withheld to cash in on big refunds
Click: Victim of identity theft? Expect a long wait for your tax refund
Since most prisons monitor inmate correspondences and flag outgoing prisoner tax documents for the IRS, inmates often get help from the outside -- presumably by offering a cut of whatever refund is received, according to an IRS presentation for the American Correctional Association Conference.
Missouri inmate Kevin Dunham pleaded guilty last year to claiming $139,644 in fraudulent refunds for himself and his fellow prisoners -- $54,814 of which was received. Dunham prepared false tax returns for inmates using a typewriter and sent the returns to the inmates' families, who then mailed them to the IRS. Refunds were shared between those involved, and the roughly $200 to $300 cut Dunham received from each return was paid to his mother, who deposited some of it in his prison account.
Another inmate pleaded guilty this week to filing seven fraudulent tax returns, claiming refunds totaling $3.5 million. He falsely reported that he had earned significant wages and had tax withheld from a nonexistent company called Safety Shoes & More, Inc. He received nearly $3 million from the IRS due to the scheme.
Larry Levine, who served more than 10 years at a number of different federal prisons for charges that include securities fraud and narcotics trafficking, said inmates found annual reports in the library from big corporations that listed federal tax identification numbers and claimed they worked for them on 1040 forms. They picked companies big enough that they figured it would take the IRS a long time to verify their claims. The forms were then mailed to family members and forwarded along to the IRS, said Levine, who now provides litigation support to federal inmates through his company, Wall Street Prison Consultants.
Other prisoners have claimed wages from companies that recently filed for bankruptcy, since these wages can be harder for the IRS to confirm, according to the Treasury inspector general. Some prisoner tax fraud has also been linked to organized crime rings that likely teach the prisoners how to commit these crimes before they're incarcerated, said Vargas.
Stopping the fraud: One of the biggest challenges of stopping fraud is that not all prisoner refund claims can be automatically denied. Inmates who work within the prison, are on a work release program, earn investment income or worked for part of the year before being incarcerated are often legitimately owed refunds.
To ensure that refunds aren't ending up in the wrong hands, TIGTA has previously suggested that the IRS wait to issue refunds until it receives third-party confirmation like W2s.
TIGTA said the IRS could also stop more fraud by Improving the accuracy of its Prisoner File -- which contains information like inmate names, wages and Social Security numbers that it collects from prisons. The inspector general found that about 500,000 of these files, or 18%, are potentially inaccurate or missing information.
Not all prisons reported prisoners, some inmates were listed under prisons that have been closed, and other facilities reported having only one prisoner, TIGTA reported. The Federal Bureau of Prisons, however, said it regularly provides inmate data to the IRS to help it prevent fraud.
The IRS said collecting accurate data has been a challenge, but new laws are likely to help.
"Tax refund fraud perpetrated by prisoners constitutes a serious threat to the integrity of the United States tax system, and the IRS is firmly committed to identifying and stopping it at the earliest possible opportunity," Peggy Bogadi, commissioner of the IRS Wage and Investment Division, wrote in a letter included in the report.
Click green for further info
Protect your credit properly
This article below shows how this can affect also your credit - in case your ID info is stolen and used
Consult your accountant, lawyer (who knows the facts), or search the web
and take action before it gets too late - protect your credit properly
ID theft is one of the biggest "industries" worldwide
ID theft can happen anytime to anyone
Prisoners rake in millions from tax fraud
Just because they're already behind bars doesn't mean they aren't making out like bandits
Prisoner tax fraud has ballooned in recent years. In 2010, more than 91,000 inmate returns claimed $758 million in fraudulent refunds, a new audit from the Treasury Inspector General for Tax Administration finds. That's more than double the previous year.
While the IRS stopped the vast majority of fraudulent refunds from actually getting into the hands of prisoners, $35 million still slipped through the cracks.
"There is no limit to what the criminal mind is capable of," said Thomas Cooke, professor of accounting and business law at Georgetown University. "Identity theft is all too common today and filing a return with fraudulent data is all too easy."
The number of fraudulent prisoner tax returns continued to increase in 2011 and 2012, although the IRS has yet to put a number on bogus refunds.
Little to lose: Filing fake tax returns is a tempting way for prisoners to get some easy cash -- especially when they see how lucrative it has been for other inmates.
"The information is easily available to these individuals, [and] the crime can be committed with limited materials," said Raul Vargas, fraud operations manager at IDentity Theft 911.
Some prisoners use stolen identities, often from other inmates. Others use their own information but inflate their income and claim large amounts of tax withheld to cash in on big refunds
Click: Victim of identity theft? Expect a long wait for your tax refund
Since most prisons monitor inmate correspondences and flag outgoing prisoner tax documents for the IRS, inmates often get help from the outside -- presumably by offering a cut of whatever refund is received, according to an IRS presentation for the American Correctional Association Conference.
Missouri inmate Kevin Dunham pleaded guilty last year to claiming $139,644 in fraudulent refunds for himself and his fellow prisoners -- $54,814 of which was received. Dunham prepared false tax returns for inmates using a typewriter and sent the returns to the inmates' families, who then mailed them to the IRS. Refunds were shared between those involved, and the roughly $200 to $300 cut Dunham received from each return was paid to his mother, who deposited some of it in his prison account.
Another inmate pleaded guilty this week to filing seven fraudulent tax returns, claiming refunds totaling $3.5 million. He falsely reported that he had earned significant wages and had tax withheld from a nonexistent company called Safety Shoes & More, Inc. He received nearly $3 million from the IRS due to the scheme.
Larry Levine, who served more than 10 years at a number of different federal prisons for charges that include securities fraud and narcotics trafficking, said inmates found annual reports in the library from big corporations that listed federal tax identification numbers and claimed they worked for them on 1040 forms. They picked companies big enough that they figured it would take the IRS a long time to verify their claims. The forms were then mailed to family members and forwarded along to the IRS, said Levine, who now provides litigation support to federal inmates through his company, Wall Street Prison Consultants.
Other prisoners have claimed wages from companies that recently filed for bankruptcy, since these wages can be harder for the IRS to confirm, according to the Treasury inspector general. Some prisoner tax fraud has also been linked to organized crime rings that likely teach the prisoners how to commit these crimes before they're incarcerated, said Vargas.
Stopping the fraud: One of the biggest challenges of stopping fraud is that not all prisoner refund claims can be automatically denied. Inmates who work within the prison, are on a work release program, earn investment income or worked for part of the year before being incarcerated are often legitimately owed refunds.
To ensure that refunds aren't ending up in the wrong hands, TIGTA has previously suggested that the IRS wait to issue refunds until it receives third-party confirmation like W2s.
TIGTA said the IRS could also stop more fraud by Improving the accuracy of its Prisoner File -- which contains information like inmate names, wages and Social Security numbers that it collects from prisons. The inspector general found that about 500,000 of these files, or 18%, are potentially inaccurate or missing information.
Not all prisons reported prisoners, some inmates were listed under prisons that have been closed, and other facilities reported having only one prisoner, TIGTA reported. The Federal Bureau of Prisons, however, said it regularly provides inmate data to the IRS to help it prevent fraud.
The IRS said collecting accurate data has been a challenge, but new laws are likely to help.
"Tax refund fraud perpetrated by prisoners constitutes a serious threat to the integrity of the United States tax system, and the IRS is firmly committed to identifying and stopping it at the earliest possible opportunity," Peggy Bogadi, commissioner of the IRS Wage and Investment Division, wrote in a letter included in the report.
Click green for further info
- Victim of identity theft? Expect a long wait for your tax refund
- Source: CNNMoney.com _______________________________________________________________________________
FCC wants to lower sky-high prison phone call rates
First Published: December 28, 2012
FCC = Federal Communications Commission
www.fcc.com
Click green for further info
In the age of free phone calls and Skype, one group of people is still paying exorbitant rates for talk time: prisoners.
The bill for a typical 15 minute state-to-state call tops $16 in some areas. That's because most prisons offer exclusive deals to phone service providers in exchange for astronomical commissions. The Federal Communications Commission labeled interstate inmate calling services (ICS) a government-sponsored "monopoly."
The FCC wants it broken up. On 1/18/13, the agency opened for public comment its proposed rules to lower interstate prison phone call rates. Its plans include the establishment of an interstate rate benchmark, caps on rates and the end of exclusivity agreements.
The fees providers pay to prisons add 43% on average to the cost of a call, the FCC estimated. As a result, prisoners pay far less for interstate calls in the small handful of states that do not charge commissions. New York, for instance, has banned commissions, and its average per-minute rates are as low as 5 cents per minute -- the lowest of all states' rates. Colorado's ICS, which does charge commissions to its payphone vendors, is the nation's most expensive, at 89 cents per minute.
On top of per-minute rates, most ICS operators charge prisoners call-initiation fees, which vary from 50 cents to $3.95 per call.
Related story: Dinosaur smuggler faces 17 years in prison
Prison calling services differ from typical payphones in some crucial ways. They can block inmates from making calls to certain people, including judges or witnesses. They can't dial 800 or 900 numbers, and phone conversations can be monitored. If a prisoner is repeatedly making a call to the same number, for instance, corrections officers might listen in or record future calls. The systems also periodically notify the recipient that the call is being placed from a jail.
All those features -- and the personnel needed to manage the systems -- make prison systems more costly to operate than regular payphones. But the wide disparity in ICS rates suggests that some operators are going overboard.
Interstate calls make up only a small subset of phone calls from prisons, the FCC noted. They tend to be the most expensive, though, and any steps to reign in their costs would "be effective in helping lower the cost of contact between inmates and their families," the commission said in its report.
That could end up saving federal and state governments money over time. A recent study from the Government Accountability Office found that contact with family "aids an inmate's success when returning to the community" and lowers the chances that a prisoner will end up back in jail.
The FCC proposal comes more than a decade after a U.S. District Court dismissed a class action lawsuit initiated by Martha Wright of Washington, who claimed that she paid $1,000 a year to cover the costs of her grandson's phone calls from various state prisons. The judge in the case referred Wright to the FCC, which she contacted nine years ago.
One FCC commissioner acknowledged the horrendous turnaround time, saying in a written statement that Wright "could not have expected to wait longer for action on her petition than it took the prison system to release her grandson."
The public has 60 days to comment, and the commission has 90 days to respond.
Click green for further info
Source: NEW YORK (CNNMoney)
First Published: December 28, 2012
____________________________________________________________
Inspirational Business Story
Bronner Brothers:
Beauty Care is a Recession Proof Business
Click green for further info
Bronner Bros, Inc.www.bronnerbros.com/
It's the World Famous Bronner Bros where we are celebrating over 60 years of creative hair.
International Hair Shows - Retail Products - Contact BB - History
What started in the back of a station wagon 65 years ago with little money and no access to capital has now blossomed into a booming business that attracts more than 70,000 trade show attendees and more than $20 million in annual product sales.
It’s Bronner Brothers, a beauty bonanza, founded by Nathaniel Bronner Sr, who believed that the industry was recession proof because women would take care of their hair no matter what the economic conditions.
On a whim during his paper route in the 1940s, Bronner Sr. brought along some of his sister’s beauty products and discovered that customers paid him a whole lot more to look good. He and his brother founded the company, which today produces the largest trade show in Georgia and manufactures hair care products for African Americans that can be found on retail shelves across the country.
Related Link: Brother's Dying Wish Turns Into a Family Business
It’s now run by his four sons, each of whom handles various aspects of the business which includes their famous trade show attended by beauticians and barbers who compete in a hair battle royale for a $25,000 grand prize for the wildest hair style. The hair show also features a fantasy competition where stylists create out of this world hairdos.
While the show creates buzz the business is built on their popular retail brands including Pump It Up and Super Grow, and products like carrot oil and mayonnaise and honey crème hair dressing.
But with all the sizzle and style, this versatile family business started under the most modest of circumstances.
“It's not easy starting a business today, but it was much tougher for my father,” says Nathaniel Bronner Jr., Executive Vice President of the company. “They were people of color. They didn’t have much money. Prejudice was very high at that particular time. You couldn’t really borrow money from banks. “
Related Link: Brothers Buy House as Teens, Now Real Estate Superstars
Even so, Nathaniel Jr., “When I talked with my father, he had a load of challenges but never had any problems. He only had challenges.”
And even though the company continues to grow, innovation remains both a priority and a challenge—and the Bronner Brothers tackle it by combining their history and heritage, while tapping today’s youth.
“Statistically, 80% of all new products that hit the grocery store will be gone in five years. This is by the big companies,” Nathaniel Jr. “With our new product launches, we brought in very, very young people, who were in tune with the pulse of things, with what people wanted.”
Just like their dad, these brothers continue to bet on women’s commitment to good grooming.
“Regardless of what the economy does, women are going to take care of their hair. They just are,” says Nathaniel Jr.. “They're not going to have a bad day just because the economy is down.”
____________________________________________________
Bronner Brothers:
Beauty Care is a Recession Proof Business
Click green for further info
Bronner Bros, Inc.www.bronnerbros.com/
It's the World Famous Bronner Bros where we are celebrating over 60 years of creative hair.
International Hair Shows - Retail Products - Contact BB - History
What started in the back of a station wagon 65 years ago with little money and no access to capital has now blossomed into a booming business that attracts more than 70,000 trade show attendees and more than $20 million in annual product sales.
It’s Bronner Brothers, a beauty bonanza, founded by Nathaniel Bronner Sr, who believed that the industry was recession proof because women would take care of their hair no matter what the economic conditions.
On a whim during his paper route in the 1940s, Bronner Sr. brought along some of his sister’s beauty products and discovered that customers paid him a whole lot more to look good. He and his brother founded the company, which today produces the largest trade show in Georgia and manufactures hair care products for African Americans that can be found on retail shelves across the country.
Related Link: Brother's Dying Wish Turns Into a Family Business
It’s now run by his four sons, each of whom handles various aspects of the business which includes their famous trade show attended by beauticians and barbers who compete in a hair battle royale for a $25,000 grand prize for the wildest hair style. The hair show also features a fantasy competition where stylists create out of this world hairdos.
While the show creates buzz the business is built on their popular retail brands including Pump It Up and Super Grow, and products like carrot oil and mayonnaise and honey crème hair dressing.
But with all the sizzle and style, this versatile family business started under the most modest of circumstances.
“It's not easy starting a business today, but it was much tougher for my father,” says Nathaniel Bronner Jr., Executive Vice President of the company. “They were people of color. They didn’t have much money. Prejudice was very high at that particular time. You couldn’t really borrow money from banks. “
Related Link: Brothers Buy House as Teens, Now Real Estate Superstars
Even so, Nathaniel Jr., “When I talked with my father, he had a load of challenges but never had any problems. He only had challenges.”
And even though the company continues to grow, innovation remains both a priority and a challenge—and the Bronner Brothers tackle it by combining their history and heritage, while tapping today’s youth.
“Statistically, 80% of all new products that hit the grocery store will be gone in five years. This is by the big companies,” Nathaniel Jr. “With our new product launches, we brought in very, very young people, who were in tune with the pulse of things, with what people wanted.”
Just like their dad, these brothers continue to bet on women’s commitment to good grooming.
“Regardless of what the economy does, women are going to take care of their hair. They just are,” says Nathaniel Jr.. “They're not going to have a bad day just because the economy is down.”
____________________________________________________
Best Companies to Work For
By Fortune
Rank: 1 Google
Previous rank: 1
2011 revenue ($ millions): $37,905
What makes it so great?
The Internet juggernaut takes the Best Companies crown for the fourth time, and not just for the 100,000 hours of free massages it doled out in 2012. New this year are three wellness centers and a seven-acre sports complex, which includes a roller hockey rink; courts for basketball, bocce, and shuffle ball; and horseshoe pits.
Headquarters: Mountain View, CA
Website: www.google.com
SAS
Courtesy: SAS - Rank: 2
Statistical Analysis System - not the airline
Previous rank: 3
2011 revenue ($ millions): $2,725
What makes it so great?
Statistical Analysis System - not the airline
With two artists in residence on staff, the perk-friendly, privately held data analytics firm takes creativity seriously. One employee cites SAS's "creative anarchy" as conducive to innovation. New this year: an organic farm for SAS's four cafeterias.
Headquarters: Cary, NC
Website: www.sas.com
CHG Healthcare Services
Courtesy: CHG Healthcare Services Rank: 3
Previous rank: 9
2011 revenue ($ millions): $620
What makes it so great?
Employees of this medical staffing firm compete in talent shows, trivia contests, and activities like a Dress As Your Favorite President competition. Extra paid time off is given to sales teams that meet their goals. New this year: two on-site health centers.
Headquarters: Salt Lake City, UT
Website: www.chghealthcare.com
The Boston Consulting Group
Courtesy: The Boston Consulting Group Rank: 4
Previous rank: 2
2011 revenue ($ millions): $3,550
What makes it so great?
The elite management consulting firm maintains work-life balance by issuing a "red zone report" to flag when individuals are working too many long weeks. New consultants can delay their start date by six months and receive $10,000 to volunteer at a nonprofit.
Headquarters: Boston, MA
Website: www.bcg.com
Wegmans Food Markets
Courtesy: Wegmans Rank: 5
Previous rank: 4
2011 revenue ($ millions): $6,335
What makes it so great?
Turnover is an exceptionally low 3.6% at the Northeastern grocery chain, which lets employees reward one another with gift cards for good service. Many workers like it there so much they bring in relatives—one in five employees are related.
Headquarters: Rochester, NY
Website: www.wegmans.com
NetApp
Courtesy: NetApp Rank: 6
Previous rank: 6
2011 revenue ($ millions): $6,233
What makes it so great?
Employees at the data storage company often get a chance to receive special recognition. Vice chairman Tom Mendoza asks managers to notify him when they "catch someone doing something right," and then calls 10 to 20 employees every day to thank them.
Headquarters: Sunnyvale, CA
Website: www.netapp.com
Hilcorp Energy Company
Courtesy: Hilcorp Energy Rank: 7
Previous rank: N.A.
2011 revenue ($ millions): N.A.
What makes it so great?
This oil and gas driller, a newcomer to the list, promised staff in 2010 that if the company doubles its production rate and reserves by 2015, every employee will get a check for $100,000. An earlier, met goal rewarded 400 employees with $50,000 toward a new car.
Headquarters: Houston, TX
Website: www.hilcorp.com
Edward Jones
Courtesy: Edward Jones Rank: 8
Previous rank: 5
2011 revenue ($ millions): $4,577
What makes it so great?
The privately held securities firm maintains some 11,000 small offices and a close-knit culture with regular regional gatherings for ice skating, fishing tournaments, and more. Forty-four percent of new hires come from employee referrals.
Headquarters: St. Louis, MO
Website: www.edwardjones.com
Ultimate Software
Courtesy: Ultimate Software Rank: 9
Previous rank: 25
2011 revenue ($ millions): $269
What makes it so great?
The developer of people-management software—customers include Google, Quicken Loans, and the New York Yankees—covers 100% of health care premiums for employees and dependents and treats workers to a free vacation every two years.
Headquarters: Weston, FL
Website: www.ultimatesoftware.com/
Camden Property Trust (not in New Jersey) this is in Houston, TX
Camden in NJ is one of the poorest & most violent towns in NJ & in the U.S.
Courtesy: Camden Property Trust Rank: 10
Previous rank: 7
2011 revenue ($ millions): $655
What makes it so great?
Good times are built into the business at apartment-manager Camden, whose founders are known for practical jokes and impersonations. Other benefits include discounted rentals for employees and a 401(k) that matches at least 50% for up to 7% of pay.
Headquarters: Houston, TX
Website: www.camdenliving.com
Click this green here for the full list of Best Companies to Work For.
More from Fortune:
Click all green below & above for further info
VP Al Gore
Post-vice presidential life has been very good to Al Gore
Al Gore's staggering personal fortune
With the sale of Current TV, the former vice president's wealth
now rivals that of Mitt Romney.
Forbes report
Related links
Al Gore's staggering personal fortune
With the sale of Current TV, the former vice president's wealth
now rivals that of Mitt Romney
Forbes report
Thanks to the $500 million sale of his liberal news station Current TV to Al Jazeera this month, Gore now has a personal fortune of $300 million, Forbes magazine estimates. That puts him ahead of Republican presidential contender Mitt Romney, whose estimated $230 million left him vulnerable to charges that he was out of touch with the common man.
The financial publication ascribes Gore's wealth to a series of savvy investments that substantially multiplied the $2 million he listed as assets when he ran and lost the presidential race to George W. Bush in 2000.
From his reported 20 percent share of Current, Gore will receive a $100 million pre-tax payday. But that's not the only evidence of his golden touch. Forbes notes that Gore holds more than $35 million in stock and options through his work as a board member of Apple and could have received a hefty compensation package from his stint as a senior adviser on environmental issues to Google, which started before the search giant went public.
Also filling Gore's coffers was his work in financial services companies like Metropolitan West Financial and his position in Generation Investment Management, which he co-founded with former Goldman Sachs executive David Blood. That company handles some $7 billion in assets, Forbes reports.
Not everyone is happy about Gore's newfound mega-wealth. On CNN's site, media watchdog Howard Kurtz questioned the former vice president's decision to sell his company to a news organization like Al Jazeera that has financial ties to the government of Qatar.
"The marketplace will decide its fate," Kurtz opined. "But there is something unsettling about Gore making off with such a big payday from a government-subsidized channel after making such bad television. Nice work if you can get it."
Related Articles:
Al Jazeera Completes Purchase of Current TV
Al Gore: Obama Might Have Gotten Too High Before Debate (Video)
'Mad Men' Characters: Mitt Romney's Dad a 'Clown,' Charlton Heston Had Great Weed
Click green for further info
________________________________________________
Beaches, bombs and gangsters - Corsica's dilemma*)
Date: January 2013
AJACCIO, Corsica (AP) — The bombs exploded across hundreds of miles of Corsican coastline, gutting two dozen villas nearly simultaneously on some of Europe's most beautiful — and valuable — land. Elsewhere on the same French island off the Mediterranean coast, a young man was shot to death in his car, his stepson wounded beside him.
The night of violence in early December epitomized the problems of Napoleon's native island today: Organized crime is gaining ground, spreading beyond the usual vices on the mainland to real estate, tourism and politics back home. And separatists, who extinguished themselves in a spasm of deadly infighting in the late 1990s, have come back with a vengeance, as they wage a desperate battle to prevent mob-dominated mass tourism from dooming their dreams of self-rule.
Corsican coastal land prices have risen as much as five times in as many years, and the number of tourists also has shot up as a once-exclusive haven for the wealthy and their yachts and private vacation homes became a destination for cruise ships and budget flights. Corsican mobsters — infamous in mainland France and the United States for their ties to gambling, nightclubs and drugs — saw a killing to be made back home.
Gang warfare over Corsican spoils and the separatist bombing campaign have created a climate of lawlessness, although the combatants have been careful not to turn the violence on the tourists themselves.
"The state has completely failed," said Dominique Bianchi, a former nationalist leader who recently stepped down as mayor of the southern village of Villanova. "In this world, there's only one thing that counts: how to divide the loot."
Shaken by the bombings, and the recent assassinations of a defense lawyer and community leader, the Paris government is making new promises to clean things up on an island where separatist sentiment has simmered ever since France officially took charge in 1769. Corsica has emerged as a jewel of French mass tourism only recently: More than 4.2 million tourists visited the island last year, compared to 2.4 million in 1992. The 2013 Tour de France, the world's premier cycling competition, will begin here — adding to the sense that Corsica has joined the big leagues as a top travel destination.
Complicating the challenge for France is what mainland officials describe as a code of silence — known as "omerta" — that also runs through areas of mafia-plagued southern Italy. Locals say it's fear, not omerta, that keeps people silent.
Of the 85 gangland killings and attempted assassinations in Corsica in the past eight years, only one case — a plot against a former nationalist turned president of Corsica's biggest soccer team — has ended in conviction.
Both the mob violence and the bombings claimed by militant nationalists have the same root, Corsicans say: the land.
Three-quarters of the coastline is untouched, the beaches and Mediterranean views achingly empty of a human presence just a 90-minute flight from Paris — as developers were scared off by gangland warfare and separatist militancy. "Where else could you go and have this kind of virgin land? It doesn't exist anymore," said Dominique Yvon, who is part of an anti-corruption group on Corsica.
Through the 1990s, the island was rocked by more than 1,000 separatist bombings of vacation homes and construction sites. For mainstream investors, France's Cote d'Azur, much more stable despite its own mob presence, was the place to be.
Then the separatists imploded in the late 1990s. And organized crime came home, seeing an opening to make new profits laundering drug money, much of it during three decades of heroin sales in theUnited States — spearheading the so-called "French Connection" drug ring — and on the Cote d'Azur, according to Thierry Colombie, who has written a book about the Corsican mob.
Most of the tourists who stayed overnight on the island in 2012 stayed in villas, many of them suspected of links to mob money, that popped up on the coastline when the bombing wave of the 1980s and 1990s finally ended. The number of cruise ship day visitors has also risen from 298,000 in 2001 to 1.1 million in 2011; they spend money in stores, restaurants and clubs before returning to their ships.
Each summer, the population of Corsica doubles from its 300,000 residents. Visitors pay a premium for ocean views and spend money in restaurants and nightclubs. They fly in by plane or sail into harbors like Ajaccio, outfitted for yachts and cruise ships. They come despite a murder rate about eight times higher than the rest of France, largely thanks to the fact that no tourists have been killed in Corsican gangland or separatist violence.
For most of the 20th century, the French government's driving focus was on ending nationalist sentiment, even as Corsica's problem with feeding the global criminal underworld grew. The "French Connection" brought hundreds of millions of dollars worth of heroin into the United States. And Corsican mobsters dominated the gambling and prostitution houses of Paris.
When the latest wave of gangland killings started, in 2006, the French government looked the other way, hoping the criminals would implode the way the nationalists had.
Then, at the end of 2012, when score-settling reached beyond established criminals to Corsica's mainstream political class, the government began to pay serious attention. First, a prominent defense lawyer was killed as he made his usual stop at a gas station on his way to work in Ajaccio. Next, a former nationalist with a uniquely powerful post as head of the chamber of commerce was shot as he closed up shop.
As president of the chamber of commerce, Jacques Nacer was in charge of the air- and seaports that are the island's link to the outside world, and the government money that keeps both up and running. Authorities have not said why they think he was gunned down, beyond noting that it was a professional killing.
More than 15 years ago, the chamber's president used the airport as a helicopter base for drug running between Africa and Europe. His successor was convicted in a fraud scheme involving government contracts.
The slain defense lawyer, Antoine Sollacaro, was best known for representing the nationalist who killed the island's highest ranking official, prefect Claude Erignac, in 1998. Police have offered no theories on his death, beyond noting that it had the same professional hallmarks as all of Corsica's gangland murders.
These killings finally caught the attention of France's top security and justice officials, who stood before the cameras to vow that this time, things would be different. "In Corsica, those who give the orders are known. Everyone knows and no one speaks," said French Interior Minister Manuel Valls.
Of course they don't speak, counters Raphael Vallet, a police investigator in Corsica. Most people can offer only rumors, and those who might know more can't look to the state's shield in France — which, unlike Italy and the United States, has no robust witness protection program for mobster turncoats.
"If you're dealing with someone who is capable of killing you at any moment and we say 'we can't protect you,' would you talk?" said Vallet. "Corsicans are no less brave than anyone else."
The Corsican city of Ajaccio was the birthplace of Napoleon Bonaparte, who left the island as a youth after deciding that greatness couldn't be attained there. Many others have made similar bets about their future on an island with few resources beyond its natural beauty. Among them, a preferred path has been criminal empire.
French government policy was — and remains — that Corsica is an integral part of the nation. Islanders, meanwhile, call the rest of France "the continent" and proudly speak their own Italian-inflected language that the Paris government once tried unsuccessfully to wipe out.
The bombings of Dec. 7 struck at 31 villas, all of them with absentee homeowners away on "the continent."
The nationalist FLNC, which announced its resurrection in a theatrical news conference in July complete with masks and guns, claimed responsibility on Dec. 19 and denied any collusion withorganized crime, saying gangsters had "prospered in the shadow of the French state for decades."
The explosions appeared to have no links to the hit on the young man, whose death is believed to be the latest professional killing to go unsolved.
Bianchi, the former mayor, was once jailed for his links to the group and has since publicly renounced violence. But he, like many Corsicans, couldn't bring himself to condemn the bombings in a place they consider their homeland.
"Even if I don't approve, I understand. I understand because in the current climate of Corsica, where there is enormous land speculation, there is a revolt," he said. "We don't want their country ... to become a place just for rich retirees in the next 10 or 15 years. We don't want it to become another Cote d'Azur."
(Cote d'Azur = French part of Riviera, often known in English as the French Riviera, is the Mediterranean coastline of the southeast corner of France, also including the sovereign state of Monaco. (Click: Wikipedia)
*) Dilemma 1. A situation that requires a choice between options that are or seem equally unfavorable or mutually exclusive. [Late Latin, from Greek dilemma, ambiguous proposition : di-, two + lemma (= proposition)2. Usage Problem A problem that seems to defy a satisfactory solution.]
3. Logic An argument that presents two alternatives, each of which has the same consequence
A dilemma is a situation in which a choice must be made between alternative courses of action or argument.
Although citational (= authoritative source ) evidence attests to widespread use of the term meaning simply "problem" or "predicament" and involving no issue of choice, 58 percent of the Usage Panel in our 1999 survey rejected the sentence Historically, race has been the great dilemma of democracy. · It is sometimes claimed that because the di- in dilemma comes from a Greek prefix meaning "two," the word should be used only when exactly two choices are involved. Nevertheless, 64 percent of the Usage Panel in our 1988 survey accepted its use for choices among three or more options.
Source: Associated Press - AP
This is for your private use, only
Can be used for educational purposes
_______________________________________________________
13 Ways to Get More Social Security
Important information - study & apply
Quotation: "Knowledge is no power - only applied knowledge is power"
Dr. Christian, STAF, Inc. President
The average monthly Social Security benefit for a retiree in 2013 is estimated at $1,261, according to the Social Security Administration. That’s just $15,132 a year – hardly enough to live on.
Hopefully when you reach retirement, you’ll have a nice nest egg to offset hurdles like vanishing pensions and unpredictable stock-market returns. But either way, there are certain actions you can take today to boost your Social Security payments during retirement – and they can add up to thousands of extra dollars in your golden years.
Here are 13 things you can think about today to increase your Social Security payments during retirement:
1. Work at least 35 years
Social Security benefits are calculated based on your 35 highest-earning working years. If you work fewer years, you’ll have years with zero income averaged in – which will lower your payout.
2. Ask for a raise
If you experience a jump in salary, you’ll likely boost your future earning potential and may see an increase in your Social Security payments down the road – since as we just explained, Social Security takes into account the 35 top-earning years of your career.
3. Take a second job
The same logic applies: If you earn more each year, you’ll likely increase the amount you get in Social Security when you retire.
4. Wait until full retirement age to claim Social Security
You can begin collecting Social Security benefits as early as age 62, but you might not want to: Your benefit will be reduced by 25 percent for life. To get your full payment, wait until you reach full retirement age – currently 66 for anyone born between 1943 and 1954. For those born between 1955 and 1959, the age gradually rises toward 67. For those born in 1960, it’s 67.
5. Better yet: Wait until age 70
If you can afford to wait until age 70 to claim Social Security benefits, it’ll pay off. Thanks to what the Social Security Administration calls “delayed retirement credits,” benefits increase 8 percent each year you delay tapping into Social Security – up till age 70. So waiting until you reach 70 means about a third more income for life.
When considering this strategy, it’s particularly beneficial for the higher-earning spouse in a marriage to hold out until age 70 to increase the total benefits the couple will receive throughout their lifetime. In the event that the spouse with the higher benefit passes away, the surviving spouse will receive the higher payment.
If you took benefits early and regret the move, it might not be too late to fix it. You may be able to repay all the benefits you received so far and restart them at a higher level based on your age. But this policy isn’t as flexible as it used to be: For more details, check out this page on the SSA site.
6. Use online tools
If you’re unsure about the best time to claim benefits based on your individual budget, health, life expectancy, or other factors, use online resources to help you decide. A good place to start is SocialSecurity.gov/MyStatement, where you’ll get your personalized statement. This estimates what your benefits will be at age 62, at full retirement age, or at age 70.
Once you get estimates for both you and, if applicable, your spouse, there are other online tools that compare your benefits under various scenarios to help you determine the best claiming strategy. Consider AARP’s Social Security Benefits Calculator or Analyze Now’s “Strategic Social Security Planner.”
7. Claim spousal benefits
If you’re married, you have a choice: You can either take the benefit based on your work history, or half your spouse’s benefit. So if your spouse earned a lot more than you did, and has a higher benefit as a result, compare and see which will pay the most.
You can also claim Social Security benefits based on an ex-spouse’s work record if you were married for at least 10 years. Doing so doesn’t reduce their check or otherwise impact them. In fact, they’ll never know you applied.
8. Taking early retirement? Beware of outside income
If you start taking benefits before reaching your full retirement age, employment elsewhere can reduce your Social Security checks.
For example, say you started taking Social Security in 2012 at age 62 and your full retirement age is 66. For 2012, your benefit would be reduced by $1 for every $2 you earned in gross wages or net self-employment income above $14,640.
If 2012 was the year you reached full retirement age, you could have earned up to $38,880 prior to the month you turned 66. More than that and your benefit would be reduced by $1 for every $3 you earned.
After you reach full retirement age, you get your full benefit no matter how much you earn.
9. Claim twice
A dual-income retired couple may be able to claim spousal benefits, then later switch to payments based on their own work record. This could make sense if waiting until a later age would result in higher benefits.
For example, say the husband is 66 and the wife is 62. If the husband files for benefits, the wife could opt for half her husband’s benefit, while still earning money and letting her benefit grow. When she turns 70, she could drop the spousal benefit and file for benefits based on her own work record.
There are lots of strategies like this to maximize Social Security. As you approach retirement age, be sure and do lots of reading. This article from Kiplinger is a good example.
10. Benefits for your kids
When you start collecting Social Security benefits, unmarried dependent children under age 18 may qualify to receive benefits worth up to half of your full retirement benefit amount. This can include a biological child, adopted child, stepchild, or dependent grandchild. They may also get benefits if they’re 18-19 years old and a full-time student (no higher than grade 12) or 18 or older with adisability that began before age 22.
11. Plan ahead for taxes
If the sum of your adjusted gross income, nontaxable interest, and half your 2012 Social Security benefits exceeds $34,000 ($44,000 for couples), up to 85 percent of your benefits may be taxable. You can minimize this expense by using certain tax-saving moves, such as investing in annuities that allow you to earn interest that isn’t taxed until you withdraw it.
12. Do your due diligence
Always read your Social Security statements (either received as paper statements in the mail or online at SocialSecurity.gov/MyStatement) to be sure everything has been reported correctly. Although inaccuracies are uncommon, some scenarios lend themselves to a greater chance of error – such as a name change your employer failed to update on company records.
13. Clear your debts
Your Social Security benefits are protected from most debt collections, but they can be taken to collect unpaid federal taxes, federal student loan balances, and child support or alimony. Clearing these debts will leave your Social Security benefits untouched.
Important information - study & apply
Quotation: "Knowledge is no power - only applied knowledge is power"
Dr. Christian, STAF, Inc. President
The average monthly Social Security benefit for a retiree in 2013 is estimated at $1,261, according to the Social Security Administration. That’s just $15,132 a year – hardly enough to live on.
Hopefully when you reach retirement, you’ll have a nice nest egg to offset hurdles like vanishing pensions and unpredictable stock-market returns. But either way, there are certain actions you can take today to boost your Social Security payments during retirement – and they can add up to thousands of extra dollars in your golden years.
Here are 13 things you can think about today to increase your Social Security payments during retirement:
1. Work at least 35 years
Social Security benefits are calculated based on your 35 highest-earning working years. If you work fewer years, you’ll have years with zero income averaged in – which will lower your payout.
2. Ask for a raise
If you experience a jump in salary, you’ll likely boost your future earning potential and may see an increase in your Social Security payments down the road – since as we just explained, Social Security takes into account the 35 top-earning years of your career.
3. Take a second job
The same logic applies: If you earn more each year, you’ll likely increase the amount you get in Social Security when you retire.
4. Wait until full retirement age to claim Social Security
You can begin collecting Social Security benefits as early as age 62, but you might not want to: Your benefit will be reduced by 25 percent for life. To get your full payment, wait until you reach full retirement age – currently 66 for anyone born between 1943 and 1954. For those born between 1955 and 1959, the age gradually rises toward 67. For those born in 1960, it’s 67.
5. Better yet: Wait until age 70
If you can afford to wait until age 70 to claim Social Security benefits, it’ll pay off. Thanks to what the Social Security Administration calls “delayed retirement credits,” benefits increase 8 percent each year you delay tapping into Social Security – up till age 70. So waiting until you reach 70 means about a third more income for life.
When considering this strategy, it’s particularly beneficial for the higher-earning spouse in a marriage to hold out until age 70 to increase the total benefits the couple will receive throughout their lifetime. In the event that the spouse with the higher benefit passes away, the surviving spouse will receive the higher payment.
If you took benefits early and regret the move, it might not be too late to fix it. You may be able to repay all the benefits you received so far and restart them at a higher level based on your age. But this policy isn’t as flexible as it used to be: For more details, check out this page on the SSA site.
6. Use online tools
If you’re unsure about the best time to claim benefits based on your individual budget, health, life expectancy, or other factors, use online resources to help you decide. A good place to start is SocialSecurity.gov/MyStatement, where you’ll get your personalized statement. This estimates what your benefits will be at age 62, at full retirement age, or at age 70.
Once you get estimates for both you and, if applicable, your spouse, there are other online tools that compare your benefits under various scenarios to help you determine the best claiming strategy. Consider AARP’s Social Security Benefits Calculator or Analyze Now’s “Strategic Social Security Planner.”
7. Claim spousal benefits
If you’re married, you have a choice: You can either take the benefit based on your work history, or half your spouse’s benefit. So if your spouse earned a lot more than you did, and has a higher benefit as a result, compare and see which will pay the most.
You can also claim Social Security benefits based on an ex-spouse’s work record if you were married for at least 10 years. Doing so doesn’t reduce their check or otherwise impact them. In fact, they’ll never know you applied.
8. Taking early retirement? Beware of outside income
If you start taking benefits before reaching your full retirement age, employment elsewhere can reduce your Social Security checks.
For example, say you started taking Social Security in 2012 at age 62 and your full retirement age is 66. For 2012, your benefit would be reduced by $1 for every $2 you earned in gross wages or net self-employment income above $14,640.
If 2012 was the year you reached full retirement age, you could have earned up to $38,880 prior to the month you turned 66. More than that and your benefit would be reduced by $1 for every $3 you earned.
After you reach full retirement age, you get your full benefit no matter how much you earn.
9. Claim twice
A dual-income retired couple may be able to claim spousal benefits, then later switch to payments based on their own work record. This could make sense if waiting until a later age would result in higher benefits.
For example, say the husband is 66 and the wife is 62. If the husband files for benefits, the wife could opt for half her husband’s benefit, while still earning money and letting her benefit grow. When she turns 70, she could drop the spousal benefit and file for benefits based on her own work record.
There are lots of strategies like this to maximize Social Security. As you approach retirement age, be sure and do lots of reading. This article from Kiplinger is a good example.
10. Benefits for your kids
When you start collecting Social Security benefits, unmarried dependent children under age 18 may qualify to receive benefits worth up to half of your full retirement benefit amount. This can include a biological child, adopted child, stepchild, or dependent grandchild. They may also get benefits if they’re 18-19 years old and a full-time student (no higher than grade 12) or 18 or older with adisability that began before age 22.
11. Plan ahead for taxes
If the sum of your adjusted gross income, nontaxable interest, and half your 2012 Social Security benefits exceeds $34,000 ($44,000 for couples), up to 85 percent of your benefits may be taxable. You can minimize this expense by using certain tax-saving moves, such as investing in annuities that allow you to earn interest that isn’t taxed until you withdraw it.
12. Do your due diligence
Always read your Social Security statements (either received as paper statements in the mail or online at SocialSecurity.gov/MyStatement) to be sure everything has been reported correctly. Although inaccuracies are uncommon, some scenarios lend themselves to a greater chance of error – such as a name change your employer failed to update on company records.
13. Clear your debts
Your Social Security benefits are protected from most debt collections, but they can be taken to collect unpaid federal taxes, federal student loan balances, and child support or alimony. Clearing these debts will leave your Social Security benefits untouched.
- 8 Social Security Myths Exposed
- 8 Surprising Truths About Retirement
- 10 Money Mistakes That Can Ruin a Marriage Click green for further info Source: U.S. Social Service Administration ________________________________________________________________________________
Additional item to buy in bulk and save
See also the next article below how to safe much
Foreword from Dr. Christian von Christophers, Ph.D., N.D., STAF, Inc.'s founding President
STAF, Inc. has developed a new Healthy Lifestyle & Correct Nutrition Program meant for the U.S. gov. use as the solution to our rampant sickness level.
The program took over 25 years international work to create and the past 7 years alone to modify for the U.S. use.
The program will save billions every year for the U.S. government in sickness/health care costs, will save millions of lives, and ease much human suffering.
The program is also an automatic weight loss program, no calories to count, nothing extra to buy, nothing extra to pay - just follow the easy program instructions and prepare your own food in your kitchen in your own home.
All new recipes - delicious.
YOU WILL SAVE ENORMOUSLY - the saved money STAF, Inc. urges you to invest safely and become a millionaire
(not a joke - a fact).
You do NOT invest in STAF, Inc. - STAF, Inc. only guides you to connect with the 3 most reliable, trustworthy investment companies in the U.S. accepting clients from the U.S. and from anywhere worldwide.
SAVINGS IN FOOD COSTS ARE: We in STAF, Inc. have individually followed the new program. E.g. my, Dr. Christian's
EDIT- CONTINUE HERE
Warehouse-club staples, such as vats of mayonnaise and crates of toilet paper, aren’t the only products for which buying in bulk can translate into serious bargains.
We’ve discovered eight unexpected buy-in-bulk values. For people who need these items in mass quantities, the savings can be significant. Just remember: This strategy requires commitment. To snag the lower per-unit prices (all listed prices here exclude taxes and fees) and capture the full value of your purchase, you have to be willing to pay the larger upfront costs and use all of your supplies.
Happy bargain hunting!
(Photo: Thinkstock)
AIRLINE TICKETS
Sky-bound commuters and serial vacationers can save hundreds by buying plane-ticket packages.
JetBlue famously offered the "All You Can Jet" pass in 2009 and 2010, which allowed travelers to fly on as many trips as they could in a month for $599. This year, the discount airline targeted business travelers with Go Packs, ranging from $699 to $2,499, that included ten nonstop, one-way flights between certain airports from September 13 through December 19. JetBlue would not say for sure whether Go Packs will be offered again, but the ticket packages have proved popular with its customers.
MORE AT KIPLINGER
Other airlines have been hopping on the bulk bandwagon: Virgin America recently offered a three-flight package via flash-sale site Gilt City, and Cathay Pacific has offered an unlimited travel deal between Hong Kong and all its other Asian destinations. Recently, regional airline Cape Air offers books of ten one-way tickets on selected commuter routes for savings of up to 30% off. Some of the routes include New York City to Provincetown, Mass. (for $3,749); Hyannis to Nantucket ($609); Marion, Ill., to St. Louis ($457.50); Key West to Fort Myers ($1,199); and St. Thomas to San Juan ($949).
To keep an eye out for other plane-ticket packages, enlist some help from AirfareWatchdog.com. Sign up for alerts based on your selected departure city, and the Watchdog will let you know via e-mail when it finds a cheap flight or package of flights, even aboard smaller airlines that might not show up on bigger search engines, such as Kayak.com and Bing Travel.
(See more: January's best shopping deals)
(Photo: Thinkstock)MOBILE MINUTES
A chatty Cathy need not hold her tongue for savings. Avoid hefty overage charges by embracing your loquaciousness with an unlimited, low-cost, prepaid plan. Same goes for texting addicts and data suckers.
For example, Boost Mobile, one of Sprint's prepaid brands, offers unlimited minutes, texts and data for Android phones starting at $55 a month. (With its "shrinking payments" incentive, Boost lowers that monthly payment gradually as you make on-time payments -- to as little $40 for punctual Android users after 18 months.) For other unlimited options, check out our picks for the Best Smart Phone Plans for You.
(Photo: Thinkstock)GYM MEMBERSHIPS
You need a spotter anyway, so why not get a deal for multiple memberships while you're at it? Many gyms, including Bally Total Fitness and Washington Sports Club, periodically offer friends-and-family discounts if you sign up together or if current members recruit newbies.
For example, 24 Hour Fitnessrecently offered a deal for current members to add family to their membership for $30 a month per person with no initiation fee. Regular rates can range from $40 to $75 per month per person, depending on your location.
If your gym isn't currently advertising this kind of deal, ask about a discount anyway; membership costs may be negotiable. (See Master the Modern Art of Haggling for tips on talking your way to a better bargain.)
(Photo: Thinkstock)SEASON TICKETS
No surprise here, sports fans. If you're really invested in a team, buying tickets for the whole season all at once instead of game by game can be a big financial win.
And if the season heads into extra innings, you'll get first dibs on playoff tickets. For example, when the Washington Nationals extended their 2012 season (the first time since 1933 that D.C. sent a baseball team to the playoffs), season-ticket holders paid $50 each for postseason tickets that were going for triple that amount online, reports Liz Farmer, of the Washington Examiner.
Season-ticket deals can be found outside the sports arena, too. Many theaters, museums, aquariums, amusement parks and other venues offer discounted passes for frequent visitors.
(Photo: Thinkstock)FRUITS AND VEGETABLES
Get your fill of veggies every month straight from your local harvest at a healthy discount. You can find a community-supported agriculture (CSA) program in your area at LocalHarvest.org.
Subscribe for periodic packages of locally grown fruits, vegetables and other products with one upfront payment. For example,Seabreeze Organic Farm, in San Diego, Cal., offers four weekly or biweekly deliveries starting at $173 (plus the CSA membership fee). The regular-size package weighs about 12 to 17 pounds and includes four to five different fruits, eight to eleven different vegetables and a bouquet of flowers.
Andrea Muse, author of Buying in Bulk and founder of FrugallySustainable.com, estimates that you can save up to 50% off your grocery bill if you buy in bulk correctly. She recommends starting small so that you can work the quantities into your cooking routine and storage space. And she suggests finding other people to invest in a share with you to split the costs and the bounty.
(Photo: Thinkstock)PRESCRIPTIONS
If you're coping with a chronic condition, you shouldn't have to suffer the high costs of medications, too. You might already know that you can save by ordering a 90-day supply from a mail-order pharmacy instead of getting a 30-day refill. But you may not realize that your neighborhood pharmacy can probably bag you the same bargain -- and with face-to-face interaction with your local pharmacist.Walmart pharmacies, for example, offer the already good deal of $4 for 30-day supplies of eligible generic drugs. But they do even better with 90-day supplies for just $10. (You can also get your orders delivered to you free.)
You'll see clear savings by ordering your contact lenses in bulk, too. At www.1800contacts.com, for example, a 30-pack of one-day Acuvue Moist lenses goes for $30, which would add up to $720 for the year if purchased singly. But the site recently offered a $60 discount if you order an annual supply of 24 boxes in one fell swoop. And if you'd rather see this deal at your own eye doctor's office, try asking him or her to match the mail-order price. Many optometrists are open to negotiation.
(Photo: iStockphoto)GIFT CARDS
For a great bulk deal on gift cards, you will have to head to a warehouse store, where you can buy multiple restaurant gift cards for less than face value. At Costco, you could pay just $80 for two $50 cards for eateries such as California Pizza Kitchen and McCormick & Schmick's.
You can also get discounted packs of movie tickets at warehouse stores. At BJ's, you can get four tickets to AMC, plus a small popcorn voucher, for $35. That movie-going experience for four adults in D.C. would cost about $53.
(Photo: Thinkstock)COLLEGE DEGREES
Hope kid sis doesn't mind a hand-me-down sorority sweater. If you can persuade your close-in-age kids to attend the same college, you might be able to cut back on some tuition costs. Many schools offer discounts for siblings in attendance at the same time.
If you have two children attend the George Washington University in Washington, D.C., for example, the younger sibling may apply for a GW Family Grant and pay half-tuition -- a huge discount considering GW's $45,735 price tag for 2012-2013. (Unfortunately, this sibling deal cannot be combined with any other scholarships or financial aid.) At Gonzaga University in Spokane, Wash., the family discount gets a second sibling 10% off tuition. And if a third sibling attends, that student would get 20% off (and our kudos to the parents).
Having multiple kids in college can also get you a break with college aid. With the Free Application for Federal Student Aid (FAFSA), if you qualify for need-based assistance, your family's expected contribution to college expenses would stay the same regardless of how many students you're covering. So, if your expected contribution is $60,000 total, and you have two children in college, then you'd be expected to pay $30,000 for each (with aid filling in the gaps); if you have three scholars enrolled, you'd pay $20,000 each. "It's kind of like you get two for the price of one," says Jodi Okun, financial aid specialist and founder of College Financial Aid Advisors.
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Source: Kiplinger
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HOW YOUR RESUME IS REALLY READ
THE MOST IMPORTANT WORDS IN YOUR RESUME
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The most important words on your resumé
Hiring managers — and sometimes a computer — scan for keywords when assessing your resumé. Find them
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4 Job Skills That No Longer Impress Recruiters
(1) Spanish, (2) Software Installation and Upgrade, (3) Legal Research, (4) Handling Mortgage Loans
Read below why
Source: PayScale.com
In today's competitive job market, it is important to develop skills that will make your resume stand out. But some of the job skills that might have moved your resume to the top of the pile a few years ago might not be worth as much today. Which skills are on the verge of becoming so last year?
According to online salary database, PayScale.com, the skills on this list have seen the biggest drop in market value over the last few years. "These skills are associated with jobs the Bureau of Labor Statistics predicts to have slow to no growth over the next 10 years," says Katie Bardaro, Director of Analytics at PayScale.com. "Often, to be successful in your career, you need to have multiple skills to set yourself apart," says Bardaro.
If the skill that tops your resume is on this list, it may be wise to invest time in developing other skills related to your career and industry.
Spanish
Spanish is the second most prominent language in the United States, after English. Additionally, over 35 million U.S. residents speak Spanish at home, according to census.gov. So why is this a dying job skill? Simply put, the commonality of Spanish makes it a resume dud. Furthermore, Spanish isn't a prominent language in business. If you would like to pad your resume with a language skill, consider learning Arabic, Japanese or Chinese.
Software Installation and Upgrade
In these technology-driven times, most workers have a basic understanding of computers and software. In fact, most software installation happens at the push of a button or, more often, is automated. Upgrades are often as simple as clicking a link and restarting your computer, something that has become second nature to many workers.
Legal Research
An abundance of underemployed law school grads makes this skill not as impressive as it used to be. If you want to compete with them, you may need to head back to law school yourself.
Handling Mortgage Loans
The collapse of the housing industry shook the faith of many and renters are on the rise. If this skill tops your resume, it might be wise to look for other ways to apply your knowledge of the mortgage loan business.
Source: All skill data provided by online salary database PayScale.com.
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7 Hot Jobs for $70K+
Search
Career Snapshots Career Mapping Advice
SEARCH
Career Advice » Salary & Benefits » Salary Information »
When it comes to planning for your financial future, securing a job in a growing industry might be your best bet. But, which jobs have the most promise for a $70K (or higher) payday?
According to online salary database, PayScale.com, industries on the rise include technology, engineering, and finance. "Jobs in these industries are 'hot' because they are in high-demand, rapidly growing fields, and are expected to experience positive growth, both in pay and job opportunities," says Katie Bardaro, Director of Analytics at PayScale.
Here are seven jobs that typically pay over $70,000, each with a predicted growth rate of over 14 percent, the average rate of all jobs as predicted by the Bureau of Labor Statistics.
Petroleum Geologist
Median Pay: $100,000
The oil and gas industry frequently appears in lists of industries that are thriving. A petroleum geologist plays a key role in finding oil, using various sciences to discover potential oil traps. A bachelor's degree is required, though some positions require candidates to have a master's degree in geology or petroleum engineering.
Find petroleum geologist jobs
Data Scientist, IT
Median Pay: $91,500
Big Data is technology's newest player and it's here to stay, Bardaro says. "In today's world, everyone wants to collect and analyze data to make their products and businesses more successful," she explains. A data scientist is required to spot trends in data, so this career might be a good fit for you if you are inquisitive, patient, and analytic. A bachelor's degree is required.
Find data scientist jobs
Management Consultant
Median Pay: $87,400
With the economy still in recovery from the Great Recession, businesses need to be strategic about their choices. A management consultant can help a business decide the best path of action to take when it comes to making decisions about growth, employees, and products. Ideally, a management consultant helps render businesses more successful. This job typically requires a bachelor's degree.
Find management consultant jobs
Portfolio Manager
Median Pay: $84,500
With the uncertainty of the economy, it's good to have a team of professionals overseeing portfolios, explains Bardaro. "Typically, portfolio managers work for a company, rather than an individual, managing financials to ensure they grow year over year, to make sure the boat doesn't sink," she says. This job typically requires a bachelor's degree.
Find portfolio manager jobs
Clinical Engineer, Medical Devices
Median Pay: $72,600
The demand for healthcare services rises with our increasing population. As baby boomers age, the need ultrasound machines, dialysis machines, and other medical devices will continue to multiply. A clinical engineer is responsible for responding to this need by making these devices smarter, more technologically advanced. This job requires a bachelor's degree.
Find clinical engineering jobs
Content Strategist
Median Pay: $72,100
If you are a creative thinker who understands how to make a brand appeal to a wide audience, you might be well-suited for a career as a content strategist. Bridget Quigg, content strategist at a Seattle, WA tech startup, enjoys a lot of variety in her career. "I love my job. It's creative almost 100 percent of the time. Infographics, whitepapers, articles, blog posts - I get to make all kinds of topics shine," says Quigg. Typically, a person in this career holds a bachelor's degree.
Find content strategist jobs
Android Software Developer
Median Pay: $70,500
Next time you are waiting on line at the coffee shop, look around and notice how many patrons are using their phones. "Smartphone usage is on the rise; mobile devices have become one of the main ways people consume media," says Bardaro. If you have ideas for great apps and an understanding of the Android operating system and software development, you might enjoy this career.
Find Android developer jobs
Source: All salary and education data provided by online salary database PayScale.com. Salaries listed are median, annual pay for workers with five to eight years of experience and include all bonuses, commissions or profit sharing. The projected growth rate is the Bureau of Labor Statistics' forecast of the percentage job growth between 2010 and 2020.
A simple, easy template
for a brief one-page resume
(title, if any) name, title (if any)
P.O. Box xxx
New York, NY 10001
(Cell) xxx-yyy-zzz
SUMMARY: Experienced sales professional with specialization in site selection, new lease negotiation, lease termination and restructure, acquisition and disposition of real estate. Independent, self-starter with strong organizational, management and interpersonal skills.
EXPERIENCE:
(name) XXXXX Realty Advisors, Inc, February 2010– Present
Principal/Sole Proprietor, town/city/village, NY zip.
- Advise corporate clients in all aspects of their real estate needs.
- Develop and implement tailored solutions for owners and end-user of office space.
- Negotiate, on behalf of landlords, end-users and investors, the acquisition and disposition of commercial real estate.
- Provide due diligence for private equity investors seeking distressed properties.
- Work with established client base from relationships developed over 20+ years in commercial and residential real estate field.
- New business development.
Cushman & Wakefield, Inc, October 1990 – February 2008
Associate Director-Brokerage, New York, 10019.
- Represented Fortune 500/1000 companies in the acquisition and disposition of their global real estate.
- Represented Landlords in the repositioning/lease-up of office property in the New York Tri-State area (NY/NJ/CT). Closed more than 2,000,000 square feet of office/in all asset classes.
- Developed partnerships with senior level executives to provide clients with the full complement of the services of Cushman & Wakefield. Services provided included transactional brokerage- agency and tenant representation, appraisal, and advisory/consulting.
New York Institute of Technology New York Campus. BA degree in Finance/Economics. Estimated Completion 2013.
SKILLS:
Proficient in Microsoft Office Suite and Windows 7. Real Estate specific software includes Argus, ProCalc, PROJECT, LseMod, ACT Contact Management, planEase.
LICENSES:
NY State Real Estate Broker
CHARITABLE ORGANIZATIONS:
1997 – Present: Volunteer – God’s Love We Deliver – Office Services, Kitchen Prep, Van Assistant
2003 – Present: Volunteer – Ovarian Cancer Research Fund - Annual fund raising
2009 - Present: Volunteer - Save The American Family, STAF, Inc., -not-for-profit-, New York, NY - web manager
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5 Questions You Should
Never Ask
in a Job Interview
Hiring managers and HR pros will often close out a job interview by asking an applicant if he or she has any questions themselves. This is a great opportunity to find out more about the job and the company's expectations, but you can't forget that the interviewer hasn't stopped judging YOU. Here are 5 questions that can make a bad impression on your interviewer, scuttling your chances for getting the job.
1. "When will I be promoted?:
This is one of the most common questions that applicants come up with, and it should be avoided, says Rebecca Woods, Vice President of Human Resources at Doherty Employer Services in Minneapolis. "It's inappropriate because it puts the cart before the horse." Instead of asking when the promotion will occur, Woods says a better approach is to ask what you would need to do to get a promotion.
2. "What's the salary for this position?"
Asking about salary and benefits in the first interview "always turns me off," says Norma Beasant, founder of Talento Human Resources Consulting and an HR consultant at the University of Minnesota. "I'm always disappointed when they ask this, especially in the first interview." Beasant says the first interview is more about selling yourself to the interviewer, and that questions about salary and benefits should really wait until a later interview.
3. "When can I expect a raise?"
Talking about compensation can be difficult, but asking about raises is not the way to go about it, Woods says. So many companies have frozen salaries and raises that it makes more sense to ask about the process to follow or what can be done to work up to higher compensation level. Talking about "expecting" a raise, Woods says, "shows a person is out of touch with reality."
4. "What sort of flextime options do you have?"
This kind of question can make it sound like you're interested in getting out of the office as much as possible. "When I hear this question, I'm wondering, are you interested in the job?" Beasant says. Many companies have many options for scheduling, but asking about it in the first interview is "not appropriate," Beasant says.
5. Any question that shows you haven't been listening.
Woods said she interviewed an applicant for a position that was 60 miles from the person's home. Woods told the applicant that the company was flexible about many things, but it did not offer telecommuting. "At the end of the interview, she asked if she would be able to work from home," Woods says. "Was she even listening? So some 'bad questions' can be more situational to the interview itself."
With the economy the way it is, employers are much more choosy and picky, Beasant says. Knowing the questions to avoid in an interview can help you stand out -- in a good way.
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Ten states raise minimum wage, rates up 10 to 35 cents/hourBy Tim Gaynor | Reuters
PHOENIX (Reuters) - Ten states kicked off the new year with a minimum wage rise of between 10 and 35 cents, modestly boosting the incomes of nearly 1 million low-paid workers.
The rises went into effect on Tuesday in Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont and Washington.
The increase will put an extra $190 to $510 per year into the pocket of the average minimum-wage worker, according to a study by the non-partisan National Employment Law Project, released last month.
Rhode Island's minimum wage hike followed a law signed by the state's independent governor,Lincoln Chafee, in June. The other states hiked their minimum wages in accordance with state laws requiring annual adjustments to keep pace with inflation, the study said.
"For a low-wage worker, these increases are a vital protection against rising costs. In states without indexing, inflation slowly erodes the value of minimum wage workers' pay," said David Cooper, an analyst with the nonpartisan Economic Policy Institute.
The increases ranged from 10 cents an hour in Missouri - where the minimum wage is $7.35 an hour as of January 1 - to 35 cents in Rhode Island, where the new minimum wage increased to $7.75.
The increase will boost pay for 995,000 low-paid workers. Around 855,000 workers are directly affected as the new rates exceed their previous hourly pay. Another 140,000 workers are set to receive an indirect raise as pay scales are adjusted upward to reflect the new minimum, according to the Institute.
As of January 1, 19 states plus the District of Columbia have minimum wage rates above the federal level of $7.25 per hour, which translates to just over $15,000 per year for a full-time minimum wage earner, the report said.
When the H.R. Office Leaves the Building
Dated: December 1, 2012
WHAT ever happened to the human resources department?
It used to be that H.R. was a single, physical place that workers could visit — to pick up a form, ask a question, seek advice, lodge a complaint. Now if a company still has a stand-alone H.R. office, it’s probably much smaller than it used to be. If workers need help, they may have to call an “800” number, consult a Web portal or use a software program.
The outsourcing of H.R. has accelerated over the last decade and will continue to do so, said Lisa Rowan, a research vice president at IDC, the market research firm. While some companies may entrust their H.R. needs to a single outside firm, it’s more common to parcel out functions to a range of outside providers, she said.
Outsourcing allows companies to offload work that isn’t part of their core business. It also saves money. But some H.R. experts are concerned that the trend has gone too far, to the point that employees are suffering in areas like training and career development, and that employers are losing crucial business opportunities.
If you look at the wide-ranging traditional duties of human resources, it’s no wonder that companies are seeking outside help. “H.R. is supposed to be responsible for finding, developing, retaining and training the best people,” Suzanne Lucas, author of a blog called the Evil HR Lady, said in an e-mail. It can also be responsible for benefits, compensation, employee and labor relations, business partners, data collection and legal issues.
Outsourcing firms can take up various tasks, from payroll to benefits to recruiting, to free up a client to focus on its strengths, said Don Weinstein, senior vice president for product management at ADP, a large H.R. outsourcing firm. The new health care reform legislation, for example, will have a big impact on employers, some of whom may be overwhelmed by its complexities. Firms like ADP have expertise in areas like this, and thus relieve a big burden, Mr. Weinstein said.
In the last 10 years, the focus of human resources has shifted toward legal compliance and data collection, said Ms. Lucas, who now lives in Switzerland but has 10 years of H.R. experience in the United States. At a company that doesn’t have the means to hire specialists, she said, outsourcing can allow it to “gain vast resources for a relatively small amount of money.”
Problems arise if outside vendors are concerned mainly with maximizing their income and lowering their costs, resulting in “low flexibility and poor service,” Ms. Lucas said. It’s in the best interest of employees at this kind of vendor “to provide as little service as possible,” she said. And at such a vendor’s call center, she said, “I don’t even have to care about morale at your site, because it doesn’t affect my day.”
(Mr. Weinstein asserted that ADP is able to maintain high-quality, individualized service through its call centers.)
MS. LUCAS said that if human-resources professionals work for the same company as the employees they serve, their interests are more closely aligned. If your performance is good, “the company will make more money,” she explained. “A better-performing company means a better bonus for me, a happier workplace, and fewer problems all around.”
But many internal H.R. functions have been “cut to the bone,” said Peter Cappelli, a management professor and director of the Center for Human Resources at the Wharton School of the University of Pennsylvania.
Therefore, the idea that companies will be more strategic about human resources after they outsource “requires some heroic assumptions,” said Professor Cappelli, author of “Why Good People Can’t Get Jobs.” Supervisors may be able to take over some important roles, but many of the people who were experts at recruiting, training and career development have been laid off, he said. So is it any surprise, he added, that companies complain that they can’t find good people?
“The world has moved toward self-service,” he said, and that puts the emphasis on technology, and on information over advice. Sometimes, he said, “there’s literally no one to talk to.”
Other times, there’s the call center. There, Ms. Lucas said, you may find someone who is reading from a script — and often that’s enough. But when your problem is complex, it can be hard or downright impossible to have it solved, she said.
“The best outsourcing leaves some competent H.R. staff as employees,” she said. “When the call center can’t answer a question, they can refer you to the in-house person. It saves money and still provides individualized expertise for employees.”
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If the link below is not connecting - search the web with the same title
(1) Overcome 3 Common Sales Objections
(2) How to Handle a Manipulative Employee
(3) Sell Like a Pro: 6 Easy Rules
If the link below is not connecting - search the web with the same title
(1) Overcome 3 Common Sales Objections
(2) How to Handle a Manipulative Employee
(3) Sell Like a Pro: 6 Easy Rules
__________________________________________________________
Ever wonder why some tax returns are eyeballed by the Internal Revenue Service
while most are ignored?
12 hot spots on your return that can
raise the chances of scrutiny by the IRS
The IRS audits only slightly more than 1% of all individual tax returns annually.
The agency doesn't have enough personnel and resources to examine each and every tax return filed during a year.
So the odds are pretty low that your return will be picked for review. And, of course, the only reason filers should worry about an audit is if they are fudging on their taxes.
However, the chances of being audited or otherwise hearing from the IRS increase depending upon various factors, including your income level, whether you omitted income, the types of deductions or losses you claimed, the business in which you're engaged and whether you own foreign assets. Math errors may draw IRS inquiry, but they'll rarely lead to a full-blown exam. Although there's no sure way to avoid an IRS audit, you should be aware of red flags that could increase your chances of drawing unwanted attention from the IRS.
Click: They Tried to Deduct What? 10 Unbelievable Tax Deductions
1. Making too much money
Although the overall individual audit rate is about 1.11%, the odds increase dramatically for higher-income filers. 2011 IRS statistics show that people with incomes of $200,000 or higher had an audit rate of 3.93%, or one out of slightly more than every 25 returns. Report $1 million or more of income? There's a one-in-eight chance your return will be audited. The audit rate drops significantly for filers making less than $200,000: Only 1.02% of such returns were audited during 2011, and the vast majority of these exams were conducted by mail. We're not saying you should try to make less money -- everyone wants to be a millionaire. Just understand that the more income shown on your return, the more likely it is that you'll be hearing from the IRS.
2. Failing to report all taxable income
The IRS gets copies of all 1099s and W-2s you receive, so make sure you report all required income on your return. IRS computers are pretty good at matching the numbers on the forms with the income shown on your return. A mismatch sends up a red flag and causes the IRS computers to spit out a bill. If you receive a 1099 showing income that isn't yours or listing incorrect income, get the issuer to file a correct form with the IRS.
3. Taking large charitable deductions
We all know that charitable contributions are a great write-off and help you feel all warm and fuzzy inside. However, if your charitable deductions are disproportionately large compared with your income, it raises a red flag. That's because IRS computers know what the average charitable donation is for folks at your income level. Also, if you don't get an appraisal for donations of valuable property, or if you fail to file Form 8283 for donations over $500, the chances of audit increase. And if you've donated a conservation easement to a charity, chances are good that you'll hear from the IRS. Be sure to keep all your supporting documents, including receipts for cash and property contributions made during the year, and abide by the documentation rules. And attach Form 8283 if required.
Click: 14 Extraordinary Tax Deductions
4. Claiming the home office deduction
Like Willie Sutton robbing banks (because that's where the money is), the IRS is drawn to returns that claim home office write-offs because it has found great success knocking down the deduction and driving up the amount of tax collected for the government. If you qualify, you can deduct a percentage of your rent, real estate taxes, utilities, phone bills, insurance and other costs that are properly allocated to the home office. That's a great deal. However, to take this write-off, you must use the space exclusively and regularly as your principal place of business. That makes it difficult to successfully claim a guest bedroom or children's playroom as a home office, even if you also use the space to do your work. "Exclusive use" means that a specific area of the home is used only for trade or business, not also for the family to watch TV at night. Don't be afraid to take the home office deduction if you're entitled to it. Risk of audit should not keep you from taking legitimate deductions. If you have it and can prove it, then use it.
5. Claiming rental losses
Normally, the passive loss rules prevent the deduction of rental real estate losses. But there are two important exceptions. If you actively participate in the renting of your property, you can deduct up to $25,000 of loss against your other income. But this $25,000 allowance phases out as adjusted gross income exceeds $100,000 and disappears entirely once your AGI reaches $150,000. A second exception applies to real estate professionals who spend more than 50% of their working hours and 750 or more hours each year materially participating in real estate as developers, brokers, landlords or the like. They can write off losses without limitation. But the IRS is scrutinizing rental real estate losses, especially those written off by taxpayers claiming to be real estate pros. The agency will check to see whether they worked the necessary hours, especially in cases of landlords whose day jobs are not in the real estate business. edit.
_______________________________________________
Ever wonder why some tax returns are eyeballed by the Internal Revenue Service
while most are ignored?
12 hot spots on your return that can
raise the chances of scrutiny by the IRS
The IRS audits only slightly more than 1% of all individual tax returns annually.
The agency doesn't have enough personnel and resources to examine each and every tax return filed during a year.
So the odds are pretty low that your return will be picked for review. And, of course, the only reason filers should worry about an audit is if they are fudging on their taxes.
However, the chances of being audited or otherwise hearing from the IRS increase depending upon various factors, including your income level, whether you omitted income, the types of deductions or losses you claimed, the business in which you're engaged and whether you own foreign assets. Math errors may draw IRS inquiry, but they'll rarely lead to a full-blown exam. Although there's no sure way to avoid an IRS audit, you should be aware of red flags that could increase your chances of drawing unwanted attention from the IRS.
Click: They Tried to Deduct What? 10 Unbelievable Tax Deductions
1. Making too much money
Although the overall individual audit rate is about 1.11%, the odds increase dramatically for higher-income filers. 2011 IRS statistics show that people with incomes of $200,000 or higher had an audit rate of 3.93%, or one out of slightly more than every 25 returns. Report $1 million or more of income? There's a one-in-eight chance your return will be audited. The audit rate drops significantly for filers making less than $200,000: Only 1.02% of such returns were audited during 2011, and the vast majority of these exams were conducted by mail. We're not saying you should try to make less money -- everyone wants to be a millionaire. Just understand that the more income shown on your return, the more likely it is that you'll be hearing from the IRS.
2. Failing to report all taxable income
The IRS gets copies of all 1099s and W-2s you receive, so make sure you report all required income on your return. IRS computers are pretty good at matching the numbers on the forms with the income shown on your return. A mismatch sends up a red flag and causes the IRS computers to spit out a bill. If you receive a 1099 showing income that isn't yours or listing incorrect income, get the issuer to file a correct form with the IRS.
3. Taking large charitable deductions
We all know that charitable contributions are a great write-off and help you feel all warm and fuzzy inside. However, if your charitable deductions are disproportionately large compared with your income, it raises a red flag. That's because IRS computers know what the average charitable donation is for folks at your income level. Also, if you don't get an appraisal for donations of valuable property, or if you fail to file Form 8283 for donations over $500, the chances of audit increase. And if you've donated a conservation easement to a charity, chances are good that you'll hear from the IRS. Be sure to keep all your supporting documents, including receipts for cash and property contributions made during the year, and abide by the documentation rules. And attach Form 8283 if required.
Click: 14 Extraordinary Tax Deductions
4. Claiming the home office deduction
Like Willie Sutton robbing banks (because that's where the money is), the IRS is drawn to returns that claim home office write-offs because it has found great success knocking down the deduction and driving up the amount of tax collected for the government. If you qualify, you can deduct a percentage of your rent, real estate taxes, utilities, phone bills, insurance and other costs that are properly allocated to the home office. That's a great deal. However, to take this write-off, you must use the space exclusively and regularly as your principal place of business. That makes it difficult to successfully claim a guest bedroom or children's playroom as a home office, even if you also use the space to do your work. "Exclusive use" means that a specific area of the home is used only for trade or business, not also for the family to watch TV at night. Don't be afraid to take the home office deduction if you're entitled to it. Risk of audit should not keep you from taking legitimate deductions. If you have it and can prove it, then use it.
5. Claiming rental losses
Normally, the passive loss rules prevent the deduction of rental real estate losses. But there are two important exceptions. If you actively participate in the renting of your property, you can deduct up to $25,000 of loss against your other income. But this $25,000 allowance phases out as adjusted gross income exceeds $100,000 and disappears entirely once your AGI reaches $150,000. A second exception applies to real estate professionals who spend more than 50% of their working hours and 750 or more hours each year materially participating in real estate as developers, brokers, landlords or the like. They can write off losses without limitation. But the IRS is scrutinizing rental real estate losses, especially those written off by taxpayers claiming to be real estate pros. The agency will check to see whether they worked the necessary hours, especially in cases of landlords whose day jobs are not in the real estate business. edit.
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For more matured job seekers
Do you want to go back to school to earn a degree that could help you impress employers?
If your goals include job offers upon graduation, you'll want to choose your major carefully
If you want to earn a college degree that will impress
employers, you might want to avoid these five majors
Do you want to go back to school to earn a degree that could help you impress employers?
If your goals include job offers upon graduation, you'll want to choose your major carefully, says Vicki Lynn, senior vice president of Universum, a global talent recruiting company that works with many Fortune 500 companies.
To help navigate the numerous options available today, we took a closer look at five degrees you may want to avoid, and five more employer-friendly options to consider instead.
(1)
Unwanted Degree #1 - Architecture -
Earning a bachelor's in architecture might impress a lot of people, but according to a 2012 study by the Georgetown University Center on Education and the Workforce, "Hard Times, College Majors, Unemployment and Earnings: Not All College Degrees Are Created Equal," it might not impress a lot of employers.
And that can be tough to take, says Lynn, since architecture is such an industry-specific major. "If there's not a job offer waiting when you graduate, then it can be very frustrating because it can be very hard to maneuver into another career path with this degree due to its narrow focus," says Lynn.
Perhaps that's the reason the "Hard Times" study found a (2013) 13.9 percent unemployment rate among recent architecture grads. The study's co-author, Dr. Anthony P. Carnevale, says this is due to the national collapse in the housing industry.
Click: Degree to Earn Instead: Business Administration
If you like the idea of pursuing the building industry, but want to keep your career options at a maximum, then a bachelor's degree in business administration could be a more employer-friendly choice. Recent general business grads had a respectable 7 percent unemployment rate, according to the "Hard Times" report.
So, why are employers after this degree? Because of its versatility. "Just about every client I talk to hires business majors," says Lynn. "They have so many opportunities. Pick an industry, any industry - pharmaceutical industry, banking, technology, energy industry, health care industry - they all hire business majors."
Click to Find the Right Business Administration Program Now.
If you were to choose business administration and management as a major, you'd likely get a solid foundation for directing and controlling an organization's activities, says the College Board, a nonprofit research organization that promotes higher education.
Related Degrees:
(2)
Unwanted Degree #2 - Philosophy or Religious Studies
Searching for the meaning of life as a philosophy or religious studies major is a noble endeavor, but unfortunately, it's not super exciting to employers.
"In my opinion, these degrees are not at all marketable," says Lynn, Sen. VP of Universum. "I don't even know what people do with these degrees to be honest. Unless they're willing to go all the way to a PhD in philosophy, for instance, their career paths are zero."
And while she does respect these studies, she advises students to at least minor in something such as business or economics.
As for the verdict from the "Hard Times" report? Not too inspiring. Philosophy and religious studies (2013) recent grads had a10.8 percent unemployment rate. CONTINUE
Click: Degree to Earn Instead: Elementary Education
Nothing says "the meaning of life" like the next generation. Yes, kids. So a bachelor's degree in elementary education could satisfy that hunger to find a deeper meaning in your studies. Recent grads in this field also had an impressively low 4.8 percent unemployment rate, according to the "Hard Times" study.
"We'll always need good teachers," says Lynn. "With the aging population, teachers are going to retire and we'll have to build the pipeline of new teachers." And who better than education grads to help fill in the need?
Click to Find the Right Education Program Now.
As an education major, the College Board says you'll learn how people learn and how to teach them. They say you're likely to take courses such as education in a multicultural society, education of the exceptional child, philosophy of education, and teaching methods.
Related Degrees:
Click:
Unwanted Degree #3 - Anthropology or Archeology
Interesting? Yes. Important? Definitely. Marketable? Not so much...
Lynn says a bachelor's degree in either anthropology or archeology is "totally limiting. Except for on a faculty or doing tours to the Parthenon, I don't know what you would actually do with this [degree]. Maybe there's some career in excavating or some other specialty, but I would assume the demand for these degrees is really small and shrinking."
Again, numbers from the "Hard Times" report seem to back that, (2013) with recent grads in these areas logging a 10.5 percent unemployment rate.
Degree to Earn Instead: Criminal Justice
If you still have that yearning to "dig" for the truth and like the idea investigating facts, a bachelor's degree in criminal justice is a more employer-friendly way to satisfy your curiosity.
It might satisfy employers a little more, too, at least according to the "Hard Times" study. It found that recent criminal justice grads had a 7.6 percent unemployment rate.
Click to Find the Right Criminal Justice Program Now.
As a criminal justice major, the College Board says you'll study everything from how terrorism affects society to the role of drug rehabilitation to every aspect of the law.
Related Degrees:
Unwanted Degree #4 - Area Ethnic or Civilization Studies
Quick, what exactly does a bachelor's degree in area ethnic or civilization studies help you pursue? Not sure? Chances are neither are most employers, says Lynn, and that could be a problem for landing a job.
"Some degrees have really bizarre names, and if you have one of those and you have to try to explain it to the recruiter or an employer, it's not helping you, so I would avoid them. These two fall into that category," she says.
Unfortunately, the data from the "Hard Times" report backed Lynn up, noting that recent grads in this field yielded a 10.1 percent unemployment rate.
Degree to Earn Instead: Psychology
If you're interested in studying people and the way they think, a good fit might be a bachelor's degree in psychology - a field in which recent grads had just a 7.6 percent unemployment rate, according to the "Hard Times" study.
"A lot of these graduates find jobs in health care institutions, senior citizen centers, or nursing homes," says Carnevale. He says that the aging baby boomer generation is driving growth in the health care industry, which is opening up opportunities for majors not usually associated with the industry, like psychology.
Click to Find the Right Psychology Program Now.
As a psychology major, the College Board says you might study such topics as the relationship between the body and mind, the roots of violence, and the way humans act and think.
Related Degrees:
Unwanted Degrees #5 - Information Systems
At first glance, a bachelor's degree in information systems might seem like a great fit for the "Information Age." And in truth, it might be. But it's also true, says Lynn, that this degree suffers from being related to - but not the same as - more sought-after degrees such as computer science.
"It's sort of the step child of technology degrees," says Lynn. "At least from my experience, it's kind of a mixture of the sciences, business, and maybe some humanities pulling together. So it suffers from 'What is it and what does it train you to do?'"
And looking at numbers from the "Hard Times" report, she may be onto something. This degree scored an 11.7 percent unemployment rate among recent grads.
Degree to Earn Instead: Computer Science
If you're into computers and how they can be used to help people, a bachelor's in computer science might be a better choice, especially if you want to be marketable to employers upon graduation, says Lynn.
"Computer science majors are getting all the attention," says Lynn. "So I think it is more clearly understood and offers more opportunities."
Again, the "Hard Times" report corroborates that, with recent computer science grads having just a 7.8 percent unemployment rate.
Click to Find the Right Computer Science Program Now
As for what the major involves, according to the College Board, computer science students would learn how to design computer programs as well as different programming languages.
Related Degrees:
To recap, here's a quick look at the five degrees you may want to avoid, and the five you may want to consider instead.
Degrees to Avoid (except if you know that one of these is your real life calling - this article relates mostly to adult workers who go back to College to find a job - based on those life situations this information is prepared)
- Architecture (except if you know that really is your real life calling - this article relates mostly to adult workers who go back to College to find a job)
- Philosophy or Religious Studies
- Anthropology or Archaeology
- Area Ethnic or Civilization Studies
- Information Systems
Degrees to Earn Instead
- Business Administration
- Elementary Education
- Criminal Justice
- Psychology
- Computer Science ________________________________________________________________________________
Popular Degree Programs For Adults
Are you considering going to college but fear you could be past your prime?
Click green for further info
Well, guess what? Having previous work - and life - experience might actually be in your favor while pursuing a college degree.
By taking what you already know and applying it to a new learning situation, you could put yourself in a position to reach new professional goals while meeting the demands of today's job market, says Andrea Karapas, associate director of the Alumni Career Counseling Center at Colorado State University.
"One of the biggest challenges that I see facing the nontraditional, adult college student is their own fear and a perceived notion that they won't be successful or that they won't fit in," Karapas says. "In actuality, [these] students bring a richness to the college classroom that doesn't exist otherwise. Older adults also have a stronger commitment and motivation to learn since they are at a point in their lives where they can see the payoff of their time in the classroom."
University of California-Irvine career consultant Christine Kelly agrees about the benefits of higher education for more mature students.
"Having a degree is going to open up more career possibilities," Kelly says. "If you are looking for career advancement or changing careers, you have to retool yourself."
If you're a seasoned professional wanting to earn a degree or add a new one to your resume, you're in luck. We talked to higher education experts to learn which degrees are the most popular among adult students and why.
Degree #1: Bachelor's in Health Care Administration
For adults with some experience in the health care profession - or those looking for a new experience - earning a degree in health care administration could be a popular option, according to Kelly.
Why It's Prime for Adults: "This is a good place for people like nurses, who have done the hands-on work and are looking for something different," Kelly says. As we get older, she adds, we're often looking to be challenged professionally.
Adults also might find the job stability associated with the health care industry a good reason to study in the field. The health care and social assistance industry's growth, according to the U.S. Department of Labor, will see 5.6 million new jobs added between 2010 and 2020.
Click Here to Find the Right Health Care Administration Program Now.
More About the Degree: A bachelor's program in health care administration, according to the College Board, the organization that administers the SAT exam, could teach you how to manage hospitals, nursing homes, and other health care facilities, while also teaching you about the laws affecting the health care industry, policy making, and financial management. Courses could also cover health care ethics, accounting, and statistics.
Potential Career: Ready to use your management skills to effect real and personal change in people's lives? With a bachelor's degree in health administration, you could pursue a career as a medical and health services manager, says the Department of Labor. And if you'd like an even higher-level view of the health care industry, a master's degree in public health, health services, long-term care administration, public administration, or business administration will qualify you for the role of administrator.
Degree #2: Master's in Business Administration (MBA)
Have you long held onto dreams of making a mark in the corporate world? If so, a master's degree in business administration (MBA) could help you hit your mark.
Why It's Prime for Adults: MBA programs provide an opportunity to take your career to new heights, which makes them popular among adults, says Kelly.
"I think most people do it because they want to advance their careers," Kelly says, "but others do it just because they want to learn something new." The versatility of an MBA program will appeal to adult students interested in a variety of business career opportunities, adds Kelly.
Click Here to Find the Right MBA Program Now.
More About the Degree: Kelly says MBA programs might require students to have some years of work experience, as well as a bachelor's degree, though not necessarily in business. She adds that during the program, students typically work on group-oriented projects, cases studies, and real-world business problems.
Courses commonly include finance, management, organizational behavior, and economics, reports the Princeton Review, a standardized test preparation and consulting firm.
Potential Career: The beauty of an MBA, claims Kelly, lies in its broad application: "You can pretty much work for any type of business because most of the skills are going to be highly transferable to a lot of different areas." Sounds enticing, yes? And for specific careers, such as financial analyst, the U.S. Department of Labor says employers often prefer candidates with an MBA or a master's degree in finance.
Degree #3: Master's in Psychology
We're human, and far from perfect. But some people in this crazy world truly need their heads examined. Well, what if you were the one doing the examining? Study psychology in a master's program and you could be.
Why It's Prime for Adults: The popularity of psychology among adults could be that they have a little more experience understanding what makes people tick. That experience could also help them tackle a major that's heavy on dealing with the mental aspects of human existence.
"You get to learn how to understand the world around you and get a more detailed understanding of why things are the way they are between people," Kelly says.
Plus, as a psychologist, you might get to help people enrich their lives, says Kelly: "For people that want to have an impact on helping others, this would give you the background to go into those kinds of professions."
Click Here to Find the Right Psychology Program Now.
More About the Degree: A master's degree program in psychology, according to the U.S. Department of Labor, may include courses like statistics, research design, and industrial-organizational psychology.
Potential Career: Helping one person is nice, but what about an entire company full of people? Industrial-organizational psychologists solve problems in the workplace by figuring out how employees can be happier and more productive on the job, according to the Department of Labor. A master's degree in psychology is required in order to pursue this career.
Degree #4: Bachelor's in Public Administration
If you're interested in learning more about public service and how it can affect the issues facing your community, a bachelor's degree in public administration might be a great fit.
Why It's Prime for Adults: For adults who want to effect real change, there might be no better place than public administration. This field of study provides people with the opportunity to give back to others after having established themselves.
"People I have seen going into this want to have an impact on a broader scale," Kelly says. "A lot of jobs are connected to government and are seen as stable employment. That's generally true, but a lot of times public administration is seen as having a broader societal impact."
Places where you could make an impact include nonprofit organizations, policy centers, and think tanks, according to Kelly.
Click Here to Find the Right Public Administration Program Now.
More About the Degree: A program in public administration could teach you how administrators work and endorse policy at state or federal levels, says the College Board. Courses typically cover grant writing, economic development, and community analysis.
Potential Career: Ready to give back to your community? It's time to put your money where your mouth is. A bachelor's degree in public administration could prepare you to pursue a career as a social or community service manager. The U.S. Department of Labor reports the degree - or one in a related field, such as social work or urban studies - is generally a minimum requirement.
Degree #5: Bachelor's in Network and System Administration
If you think today's computers are just for kids, think again. Adults who have an affinity for computer-related technology can study network and system administration at the bachelor's level.
Why It's Prime for Adults: Kelly says adults who want to turn their fascination with computers into a professional outlet could find studying network and system administration a recipe for success.
According to Kelly, a program in network and system administration "will use your critical thinking skills in mathematics and numbers and your organization skills to help you see the big picture of network systems."
Adults who study this major, Kelly says, also could realize the importance of staying ahead of the technological curve while brushing up their resumes. "Things change pretty quickly with computer technology, and you can get stale," Kelly says. "This (major) is the kind of refresher you might need."
Click Here to Find the Right Network Administration Program Now.
More About the Degree: Setting up computer systems, troubleshooting software and hardware, and exploring cutting-edge technology could be topics of study in a program in network and systems administration, according to the College Board.
Potential Career: Ready to take your passion for computers to a professional level? Earning a bachelor's degree in this major might be a good starting point for adults who want careers as network and computer systems administrators. The U.S. Department of Labor says "a bachelor's degree in fields related to computer or information science is most common."
Next Article: Careers for People Who Don't Like People »
___________________________________________________________
Are you considering going to college but fear you could be past your prime?
Click green for further info
Well, guess what? Having previous work - and life - experience might actually be in your favor while pursuing a college degree.
By taking what you already know and applying it to a new learning situation, you could put yourself in a position to reach new professional goals while meeting the demands of today's job market, says Andrea Karapas, associate director of the Alumni Career Counseling Center at Colorado State University.
"One of the biggest challenges that I see facing the nontraditional, adult college student is their own fear and a perceived notion that they won't be successful or that they won't fit in," Karapas says. "In actuality, [these] students bring a richness to the college classroom that doesn't exist otherwise. Older adults also have a stronger commitment and motivation to learn since they are at a point in their lives where they can see the payoff of their time in the classroom."
University of California-Irvine career consultant Christine Kelly agrees about the benefits of higher education for more mature students.
"Having a degree is going to open up more career possibilities," Kelly says. "If you are looking for career advancement or changing careers, you have to retool yourself."
If you're a seasoned professional wanting to earn a degree or add a new one to your resume, you're in luck. We talked to higher education experts to learn which degrees are the most popular among adult students and why.
Degree #1: Bachelor's in Health Care Administration
For adults with some experience in the health care profession - or those looking for a new experience - earning a degree in health care administration could be a popular option, according to Kelly.
Why It's Prime for Adults: "This is a good place for people like nurses, who have done the hands-on work and are looking for something different," Kelly says. As we get older, she adds, we're often looking to be challenged professionally.
Adults also might find the job stability associated with the health care industry a good reason to study in the field. The health care and social assistance industry's growth, according to the U.S. Department of Labor, will see 5.6 million new jobs added between 2010 and 2020.
Click Here to Find the Right Health Care Administration Program Now.
More About the Degree: A bachelor's program in health care administration, according to the College Board, the organization that administers the SAT exam, could teach you how to manage hospitals, nursing homes, and other health care facilities, while also teaching you about the laws affecting the health care industry, policy making, and financial management. Courses could also cover health care ethics, accounting, and statistics.
Potential Career: Ready to use your management skills to effect real and personal change in people's lives? With a bachelor's degree in health administration, you could pursue a career as a medical and health services manager, says the Department of Labor. And if you'd like an even higher-level view of the health care industry, a master's degree in public health, health services, long-term care administration, public administration, or business administration will qualify you for the role of administrator.
Degree #2: Master's in Business Administration (MBA)
Have you long held onto dreams of making a mark in the corporate world? If so, a master's degree in business administration (MBA) could help you hit your mark.
Why It's Prime for Adults: MBA programs provide an opportunity to take your career to new heights, which makes them popular among adults, says Kelly.
"I think most people do it because they want to advance their careers," Kelly says, "but others do it just because they want to learn something new." The versatility of an MBA program will appeal to adult students interested in a variety of business career opportunities, adds Kelly.
Click Here to Find the Right MBA Program Now.
More About the Degree: Kelly says MBA programs might require students to have some years of work experience, as well as a bachelor's degree, though not necessarily in business. She adds that during the program, students typically work on group-oriented projects, cases studies, and real-world business problems.
Courses commonly include finance, management, organizational behavior, and economics, reports the Princeton Review, a standardized test preparation and consulting firm.
Potential Career: The beauty of an MBA, claims Kelly, lies in its broad application: "You can pretty much work for any type of business because most of the skills are going to be highly transferable to a lot of different areas." Sounds enticing, yes? And for specific careers, such as financial analyst, the U.S. Department of Labor says employers often prefer candidates with an MBA or a master's degree in finance.
Degree #3: Master's in Psychology
We're human, and far from perfect. But some people in this crazy world truly need their heads examined. Well, what if you were the one doing the examining? Study psychology in a master's program and you could be.
Why It's Prime for Adults: The popularity of psychology among adults could be that they have a little more experience understanding what makes people tick. That experience could also help them tackle a major that's heavy on dealing with the mental aspects of human existence.
"You get to learn how to understand the world around you and get a more detailed understanding of why things are the way they are between people," Kelly says.
Plus, as a psychologist, you might get to help people enrich their lives, says Kelly: "For people that want to have an impact on helping others, this would give you the background to go into those kinds of professions."
Click Here to Find the Right Psychology Program Now.
More About the Degree: A master's degree program in psychology, according to the U.S. Department of Labor, may include courses like statistics, research design, and industrial-organizational psychology.
Potential Career: Helping one person is nice, but what about an entire company full of people? Industrial-organizational psychologists solve problems in the workplace by figuring out how employees can be happier and more productive on the job, according to the Department of Labor. A master's degree in psychology is required in order to pursue this career.
Degree #4: Bachelor's in Public Administration
If you're interested in learning more about public service and how it can affect the issues facing your community, a bachelor's degree in public administration might be a great fit.
Why It's Prime for Adults: For adults who want to effect real change, there might be no better place than public administration. This field of study provides people with the opportunity to give back to others after having established themselves.
"People I have seen going into this want to have an impact on a broader scale," Kelly says. "A lot of jobs are connected to government and are seen as stable employment. That's generally true, but a lot of times public administration is seen as having a broader societal impact."
Places where you could make an impact include nonprofit organizations, policy centers, and think tanks, according to Kelly.
Click Here to Find the Right Public Administration Program Now.
More About the Degree: A program in public administration could teach you how administrators work and endorse policy at state or federal levels, says the College Board. Courses typically cover grant writing, economic development, and community analysis.
Potential Career: Ready to give back to your community? It's time to put your money where your mouth is. A bachelor's degree in public administration could prepare you to pursue a career as a social or community service manager. The U.S. Department of Labor reports the degree - or one in a related field, such as social work or urban studies - is generally a minimum requirement.
Degree #5: Bachelor's in Network and System Administration
If you think today's computers are just for kids, think again. Adults who have an affinity for computer-related technology can study network and system administration at the bachelor's level.
Why It's Prime for Adults: Kelly says adults who want to turn their fascination with computers into a professional outlet could find studying network and system administration a recipe for success.
According to Kelly, a program in network and system administration "will use your critical thinking skills in mathematics and numbers and your organization skills to help you see the big picture of network systems."
Adults who study this major, Kelly says, also could realize the importance of staying ahead of the technological curve while brushing up their resumes. "Things change pretty quickly with computer technology, and you can get stale," Kelly says. "This (major) is the kind of refresher you might need."
Click Here to Find the Right Network Administration Program Now.
More About the Degree: Setting up computer systems, troubleshooting software and hardware, and exploring cutting-edge technology could be topics of study in a program in network and systems administration, according to the College Board.
Potential Career: Ready to take your passion for computers to a professional level? Earning a bachelor's degree in this major might be a good starting point for adults who want careers as network and computer systems administrators. The U.S. Department of Labor says "a bachelor's degree in fields related to computer or information science is most common."
Next Article: Careers for People Who Don't Like People »
___________________________________________________________
This article has several web connections to organizations finding jobs
for any age, including for people in midlife or older
Click green: (1) the WorkPlace, an agency in Bridgeport, Conn. (2) Encore.org (3) ReServe
A Switch at Midlife, to Make a Difference
12/9/12 - I CAN pinpoint the time in my career when I started to question what I was doing with my life.
It happened 12 years ago on Ipanema beach in Rio de Janeiro. I was enjoying my first vacation in nearly two years when a call came through on my cellphone. There was a crisis at work. My boss asked if I’d cut my trip short to take care of it. I said no, and that was it. I realized that my work as a corporate lawyer just didn’t matter to me anymore. After I hung up, I vowed to figure out a way to leave that job and do something more meaningful.
My reinvention wasn’t easy. After about two years, I weaned myself from the law and re-emerged as a journalist. It took a lot of work — classes, conferences, networking with writers and editors, learning from mentors 10 years my junior. In time I was getting regular assignments and writing for publications that included The New York Times. Even today, more than 10 years into my new career, I earn only two-thirds of what I was making in my last law job. But the trade-offs are worth it.
The subject of career reinvention was so fascinating to me that it’s become front and center in my current work. These days I’m working for Encore.org, a nonprofit that focuses on so-called encore careers. As people hit their 50th and 60th birthdays and realize they are far from done with work, millions are moving into new careers that combine making a living and a difference.
I’ve talked to hundreds of people who are part of this growing trend. People like Fred Weinberg, a retired New York State parole officer who now helps low-income patients navigate the health care system. And Nancy Burkhart, who started Earth Safe Finishes, a company that makes nontoxic paint, after her years of working in the arts and crafts industry convinced her that conventionally manufactured paints and varnishes were harming the environment.
The urge to shake up things at midlife even happens to those who have dedicated their lives to making a difference and may be experiencing burnout after 20 or 30 years on the job. I’ve met nonprofit leaders who told me they’re done with board meetings and budgets and are ready to work one-on-one to help people. And I’ve talked to teachers who are ready to leave the classroom and focus on education policy.
Transitions are harder when you feel old enough to be a parent to everyone else at the office. Age discrimination is real, but those who reinvent over 50 don’t let it get in the way. If they interview with organizations that don’t value experience, they move on. When they network, they recognize the importance of intergenerational relationships; they even tap their children’s LinkedIn contacts.
Many people over 50 need retraining or education to do the work they want to do. Some retool through classes at the local Y. Others enroll in certificate programs at community colleges to retrain for high-demand roles in nursing, caregiving or other health-related fields. Still others are like Priscilla Santiago, a laid-off forklift operator, who returned to college at 59 and ultimately found work at the WorkPlace, an agency in Bridgeport, Conn., helping others battered by the current economic slump.
New pathways are sprouting up for those seeking encore careers. ReServe, which placed Mr. Weinberg in his position with the Hospital for Special Surgery, matches people who are over 55 with part-time paid positions at nonprofits. Encore Fellowships, a program created by Encore.org, offers a transition to the nonprofit sector for professionals from the private sector interested in moving into mission-focused work. Even programs like Teach for America, known for recruiting recent graduates, are looking for those in midlife committed to fixing our country’s schools.
MOVING into new work often requires taking a financial hit, so good planning is crucial. According to research from the MetLife Foundation and Encore.org, the average midlife transition to socially motivated work takes about 18 months, during which most people don’t earn an income. Some spend more going back to school. In addition, it’s common to take a pay cut if you’re moving to a job more focused on mission than money.
As I inch closer to 50 myself, it’s impossible not to notice that some things aren’t what they used to be — my vision, the shine of my hair, my ability to remember names. Still, I’m convinced the one thing that doesn’t dim with age is the chance to change people’s lives for the better, even our own.
Marci Alboher is the author of the coming “Encore Career Handbook: How to Make a Living and a Difference in the Second Half of Life.”
Click green for further info
This article is for your private use, only
Source: NYT, 12/9/12
_________________________________________________________
for any age, including for people in midlife or older
Click green: (1) the WorkPlace, an agency in Bridgeport, Conn. (2) Encore.org (3) ReServe
A Switch at Midlife, to Make a Difference
12/9/12 - I CAN pinpoint the time in my career when I started to question what I was doing with my life.
It happened 12 years ago on Ipanema beach in Rio de Janeiro. I was enjoying my first vacation in nearly two years when a call came through on my cellphone. There was a crisis at work. My boss asked if I’d cut my trip short to take care of it. I said no, and that was it. I realized that my work as a corporate lawyer just didn’t matter to me anymore. After I hung up, I vowed to figure out a way to leave that job and do something more meaningful.
My reinvention wasn’t easy. After about two years, I weaned myself from the law and re-emerged as a journalist. It took a lot of work — classes, conferences, networking with writers and editors, learning from mentors 10 years my junior. In time I was getting regular assignments and writing for publications that included The New York Times. Even today, more than 10 years into my new career, I earn only two-thirds of what I was making in my last law job. But the trade-offs are worth it.
The subject of career reinvention was so fascinating to me that it’s become front and center in my current work. These days I’m working for Encore.org, a nonprofit that focuses on so-called encore careers. As people hit their 50th and 60th birthdays and realize they are far from done with work, millions are moving into new careers that combine making a living and a difference.
I’ve talked to hundreds of people who are part of this growing trend. People like Fred Weinberg, a retired New York State parole officer who now helps low-income patients navigate the health care system. And Nancy Burkhart, who started Earth Safe Finishes, a company that makes nontoxic paint, after her years of working in the arts and crafts industry convinced her that conventionally manufactured paints and varnishes were harming the environment.
The urge to shake up things at midlife even happens to those who have dedicated their lives to making a difference and may be experiencing burnout after 20 or 30 years on the job. I’ve met nonprofit leaders who told me they’re done with board meetings and budgets and are ready to work one-on-one to help people. And I’ve talked to teachers who are ready to leave the classroom and focus on education policy.
Transitions are harder when you feel old enough to be a parent to everyone else at the office. Age discrimination is real, but those who reinvent over 50 don’t let it get in the way. If they interview with organizations that don’t value experience, they move on. When they network, they recognize the importance of intergenerational relationships; they even tap their children’s LinkedIn contacts.
Many people over 50 need retraining or education to do the work they want to do. Some retool through classes at the local Y. Others enroll in certificate programs at community colleges to retrain for high-demand roles in nursing, caregiving or other health-related fields. Still others are like Priscilla Santiago, a laid-off forklift operator, who returned to college at 59 and ultimately found work at the WorkPlace, an agency in Bridgeport, Conn., helping others battered by the current economic slump.
New pathways are sprouting up for those seeking encore careers. ReServe, which placed Mr. Weinberg in his position with the Hospital for Special Surgery, matches people who are over 55 with part-time paid positions at nonprofits. Encore Fellowships, a program created by Encore.org, offers a transition to the nonprofit sector for professionals from the private sector interested in moving into mission-focused work. Even programs like Teach for America, known for recruiting recent graduates, are looking for those in midlife committed to fixing our country’s schools.
MOVING into new work often requires taking a financial hit, so good planning is crucial. According to research from the MetLife Foundation and Encore.org, the average midlife transition to socially motivated work takes about 18 months, during which most people don’t earn an income. Some spend more going back to school. In addition, it’s common to take a pay cut if you’re moving to a job more focused on mission than money.
As I inch closer to 50 myself, it’s impossible not to notice that some things aren’t what they used to be — my vision, the shine of my hair, my ability to remember names. Still, I’m convinced the one thing that doesn’t dim with age is the chance to change people’s lives for the better, even our own.
Marci Alboher is the author of the coming “Encore Career Handbook: How to Make a Living and a Difference in the Second Half of Life.”
Click green for further info
This article is for your private use, only
Source: NYT, 12/9/12
_________________________________________________________
For Poor, Leap to College Often Ends in a Hard Fall
December 2012
GALVESTON, Tex. — Angelica Gonzales marched through high school in Goth armor — black boots, chains and cargo pants — but undermined her pose of alienation with a place on the honor roll. She nicknamed herself after a metal band and vowed to become the first in her family to earn a college degree.
“I don’t want to work at Walmart” like her mother, she wrote to a school counselor.
Weekends and summers were devoted to a college-readiness program, where her best friends, Melissa O’Neal and Bianca Gonzalez, shared her drive to “get off the island” — escape the prospect of dead-end lives in luckless Galveston. Melissa, an eighth-grade valedictorian, seethed over her mother’s boyfriends and drinking, and Bianca’s bubbly innocence hid the trauma of her father’s death. They stuck together so much that a tutor called them the “triplets.”
Low-income strivers face uphill climbs, especially at Ball High School, where a third of the girls’ class failed to graduate on schedule. But by the time the triplets donned mortarboards in the class of 2008, their story seemed to validate the promise of education as the great equalizer.
Angelica, a daughter of a struggling Mexican immigrant, was headed to Emory University. Bianca enrolled in community college, and Melissa left for Texas State University, President Lyndon B. Johnson’s alma mater.
“It felt like we were taking off, from one life to another,” Melissa said. “It felt like, ‘Here we go!’ ”
Four years later, their story seems less like a tribute to upward mobility than a study of obstacles in an age of soaring economic inequality. Not one of them has a four-year degree. Only one is still studying full time, and two have crushing debts. Angelica, who left Emory owing more than $60,000, is a clerk in a Galveston furniture store.
Each showed the ability to do college work, even excel at it. But the need to earn money brought one set of strains, campus alienation brought others, and ties to boyfriends not in school added complications. With little guidance from family or school officials, college became a leap that they braved without a safety net.
The story of their lost footing is also the story of something larger — the growing role that education plays in preserving class divisions. Poor students have long trailed affluent peers in school performance, but from grade-school tests to college completion, the gaps are growing. With school success and earning prospects ever more entwined, the consequences carry far: education, a force meant to erode class barriers, appears to be fortifying them.
“Everyone wants to think of education as an equalizer — the place where upward mobility gets started,” said Greg J. Duncan, an economist at the University of California, Irvine. “But on virtually every measure we have, the gaps between high- and low-income kids are widening. It’s very disheartening.”
The growing role of class in academic success has taken experts by surprise since it follows decades of equal opportunity efforts and counters racial trends, where differences have narrowed. It adds to fears over recent evidence suggesting that low-income Americans have lower chances of upward mobility than counterparts in Canada and Western Europe.
Thirty years ago, there was a 31 percentage point difference between the share of prosperous and poor Americans who earned bachelor’s degrees, according to Martha J. Bailey and Susan M. Dynarski of the University of Michigan. Now the gap is 45 points.
While both groups improved their odds of finishing college, the affluent improved much more, widening their sizable lead.
Likely reasons include soaring incomes at the top and changes in family structure, which have left fewer low-income students with the support of two-parent homes. Neighborhoods have grown more segregated by class, leaving lower-income students increasingly concentrated in lower-quality schools. And even after accounting for financial aid, the costs of attending a public university have risen 60 percent in the past two decades. Many low-income students, feeling the need to help out at home, are deterred by the thought of years of lost wages and piles of debt.
In placing their hopes in education, the Galveston teenagers followed a tradition as old as the country itself. But if only the prosperous become educated — and only the educated prosper — the schoolhouse risks becoming just another place where the fortunate preserve their edge.
“It’s becoming increasingly unlikely that a low-income student, no matter how intrinsically bright, moves up the socioeconomic ladder,” said Sean Reardon, a sociologist at Stanford. “What we’re talking about is a threat to the American dream.”
High School
No one pictured the teenagers as even friends, much less triplets. Angelica hid behind dark eyeliner, Melissa’s moods turned on the drama at home, and Bianca, in the class behind, seemed even younger than she was. What they had in common was a college-prep program for low-income teenagers, Upward Bound, and trust in its counselor, Priscilla Gonzales Culver, whom everyone called “Miss G.”
Angelica was the product of a large Mexican-American family, which she sought both to honor and surpass. Her mother, Ana Gonzales, had crossed the border illegally as a child, gained citizenship and settled the clan in Galveston, where she ruled by force of will. She once grounded Angelica for a month for coming home a minute late. With hints of both respect and fear, Angelica never called her “Mom” — only “Mrs. Lady.”
Home was an apartment in a subdivided house, with relatives in the adjacent units. Family meals and family feuds went hand in hand. One of Angelica’s uncles bore scars from his days in a street gang. Her grandmother spoke little English. With a quirky mix of distance and devotion, Angelica studied German instead of Spanish and gave the fiesta celebrating her 15th birthday a Goth theme, with fairies and dragons on the tabletop globes. “Korn chick,” she fancifully called herself, after the dissonant metal band.
But school was all business. “Academics was where I shined,” she said. Her grandmother and aunts worked at Walmart alongside Mrs. Lady, and Angelica was rankled equally by how little money they made and how little respect they got. Upward Bound asked her to rank the importance of college on a scale of 1 to 10.
“10,” she wrote.
Melissa also wanted to get off the island — and more immediately out of her house. “When I was about 7, my mom began dating and hanging around a bunch of drunks,” she wrote on the Upward Bound application. For her mother, addiction to painkillers and severe depression followed. Her grandparents offered her one refuge, and school offered another.
“I like to learn — I’m weird,” she said.
By eighth grade, Melissa was at the top of her class and sampling a course at a private high school. She yearned to apply there but swore the opposite to her mother and grandparents. Protecting families from their own ambition is a skill many poor students learn. “I knew we didn’t have the money,” Melissa said. “I felt like I had no right to ask.”
New to Upward Bound, Melissa noticed that one student always ate alone and crowded in beside her. “She forced her friendship on me,” Angelica said.
Bianca joined the following year with a cheerfulness that disguised any trace of family tragedy. As the eldest of four siblings, she had spent the years since her father’s death as a backup mother. To Bianca, family meant everything.
She arrived just in time for the trip at the heart of triplets lore — the Upward Bound visit to Chicago. While they had known they wanted more than Galveston offered, somewhere between the Sears Tower and Northwestern University they glimpsed what it might be. The trip at once consecrated a friendship and defined it around shared goals.
“We wanted to do something better with our lives,” Angelica said.
Ball High was hard on goals. In addition to Bosco, a drug-sniffing dog profiled in the local paper, the campus had four safety officers to deter fights. A pepper spray incident in the girls’ senior year sent 50 students to the school nurse. Only 2 percent of Texas high schools were ranked “academically unacceptable.” Ball was among them.
Melissa now marvels at what a good parent her mother has become to her younger brother after she stopped drinking and was treated for her depression. But when she returned from the high school trip to Chicago, the conflicts grew so intense that Miss G. took her in one night. “I really put her through a lot,” said Melissa’s mother, Pam Craft. “Everything she did, she did on her own — I’m so proud of her.” Miss G.’s notes variously observed that “there are limited groceries,” “student is overwhelmed” and “she’s basically raising herself.”
While faulting her mother’s choices in men, Melissa made a troubling choice of her own with her ambitionless boyfriend. Among the many ways he let her down was getting another girl pregnant. Yet as many times as they broke up, they got back together again. “He is going to bring her down,” Miss G. warned.
Despite the turmoil, Melissa earned “commended” marks, the highest level, on half her state skills tests, edited the yearbook and published two opinion articles in the Galveston newspaper, one of them about her brother’s struggle with autism. Working three jobs, she missed so much school that she nearly failed to graduate, but she still finished in the top quarter of her class. It was never clear which would prevail — her habit of courting disaster or her talent for narrow escapes.
Returning from Chicago, Bianca jumped a grade, which allowed her to graduate with Melissa and Angelica.
Angelica kept making A’s on her way to a four-year grade-point average of 3.9. “Amazingly bright and dedicated,” one instructor wrote. A score of 1,240 on the math and reading portions of her SAT ranked her at the 84th percentile nationwide. When the German teacher suddenly quit, the school tapped her to finish teaching the first-year course.
Outside school, Angelica’s life revolved around her boyfriend, Fred Weaver, who was three years older and drove a yellow Sting Ray. Fred was devoted — too devoted, Mrs. Lady thought, and she warned Angelica not to let the relationship keep her from going to college. Fred’s father owned a local furniture store, and everyone could see that Fred’s dream was to run it with Angelica at his side.
Senior year raced by, with Miss G. doing her best to steer frightened and distracted students though the college selection process. Despite all the campus visits, choices were made without the intense supervision that many affluent students enjoy. Bianca, anchored to the island by family and an older boyfriend, chose community college. Melissa picked Texas State in San Marcos because “the application was easiest.”
Angelica had thought of little beyond Northwestern and was crestfallen when she was rejected. She had sent a last-minute application to a school in Atlanta that had e-mailed her. Only after getting in did she discover that she had achieved something special.
Emory cost nearly $50,000 that year, but it was one of a small tier of top schools that promised to meet the financial needs of any student good enough to be admitted. It had even started a program to relieve the neediest students of high debt burdens. “No one should have to give up their goals and dreams because financial challenges stand in the way,” its Web site says.
Plus an unseen campus a thousand miles away had an innate appeal. “How many times do you get the chance to completely reinvent yourself?” Angelica said.
Rich-Poor Gap Grows
If Melissa and Angelica felt that heading off to university set them apart from other low-income students, they were right. Fewer than 30 percent of students in the bottom quarter of incomes even enroll in a four-year school. And among that group, fewer than half graduate.
Income has always shaped academic success, but its importance is growing. Professor Reardon, the Stanford sociologist, examined a dozen reading and math tests dating back 25 years and found that the gap in scores of high- and low-income students has grown by 40 percent, even as the difference between blacks and whites has narrowed.
While race once predicted scores more than class, the opposite now holds. By eighth grade, white students surpass blacks by an average of three grade levels, while upper-income students are four grades ahead of low-income counterparts.
“The racial gaps are quite big, but the income gaps are bigger,” Professor Reardon said.
One explanation is simply that the rich have clearly gotten richer. A generation ago, families at the 90th percentile had five times the income of those at the 10th percentile. Now they have 10 times as much.
But as shop class gave way to computer labs, schools may have also changed in ways that make parental income and education more important. SAT coaches were once rare, even for families that could afford them. Now they are part of a vast college preparation industry.
Certainly as the payoff to education has grown — college graduates have greatly widened their earnings lead — affluent families have invested more in it. They have tripled the amount by which they outspend low-income families on enrichment activities like sports, music lessons and summer camps, according to Professor Duncan and Prof. Richard Murnane of Harvard.
In addition, upper-income parents, especially fathers, have increased their child-rearing time, while the presence of fathers in low-income homes has declined. Miss G. said there is a reason the triplets relied so heavily on boyfriends: “Their fathers weren’t there.”
Annette Lareau, a sociologist at the University of Pennsylvania, argues that the affluent also enjoy an advocacy edge: parents are quicker to intervene when their children need help, while low-income families often feel intimidated and defer to school officials, a problem that would trail Melissa and Angelica in their journey through college.
“Middle-class students get the sense the institution will respond to them,” Professor Lareau said. “Working-class and poor students don’t experience that. It makes them more vulnerable.”
Matthew M. Chingos of the Brookings Institution has found that low-income students finish college less often than affluent peers even when they outscore them on skills tests. Only 26 percent of eighth graders with below-average incomes but above-average scores go on to earn bachelor’s degrees, compared with 30 percent of students with subpar performances but more money.
“These are students who have already overcome significant obstacles to score above average on this test,” Mr. Chingos said. “To see how few earn college degrees is really disturbing.”
Triplets Start College
Melissa lasted at Texas State for all of two hours. As soon as she arrived, her car battery died, prompting a tearful call to Miss. G., who arranged a jump. Her dorm mates had parents to haul boxes and hover. Melissa unpacked alone. With four days left until classes began, she panicked and drove 200 miles back home.
For all the talk of getting away, her tattoo featured a local boast: she was “B.O.I.” — born on the island. Her grandparents ordered her back to school. “I really didn’t want to leave” the island, she said.
Midway through the semester she decided she had made a mistake by going to Texas State. She had picked the wrong time to leave home. She would move back to Galveston, join Bianca at community college and transfer to a four-year school later. But when she tried to return the financial aid to Texas State, she discovered it was too late. A long walk across the hilly campus led to an epiphany.
“I realized there was nothing in Galveston for me,” she said. “This is where I need to be.”
Angelica had a costlier setback. For an elite school, Emory enrolls an unusually large number of low-income students — 22 percent get Pell grants, compared with 11 percent at Harvard — and gives them unusually large aid packages. But Angelica had failed to complete all the financial aid forms.
Slow to consider Emory, she got a late start on the complex process and was delayed by questions about her father, whom she did not even know how to reach. Though Emory sent weekly e-mails — 17 of them, along with an invitation to a program for minority students — they went to a school account she had not learned to check. From the start, the wires were crossed.
As classes approached, she just got in the car with Mrs. Lady and Fred and drove 14 hours to Atlanta hoping to work things out. But by then Emory had distributed all of its aid. Even with federal loans and grants, Angelica was $40,000 short. The only way to enroll was to borrow from a bank.
Forty thousand dollars was an unfathomable sum. Angelica did not tell Mrs. Lady, to protect her from the worry. She needed a co-signer, and the only person she could ask was Fred. That would bind her future to her past, but she feared that if she tried to defer, she might not have a future — she might never make it back.
“I was like, ‘I don’t care what kind of debt it puts me in — I’ve got to get this done,”‘ she said.
Fred answered her request with his. They got engaged.
A few weeks later, Hurricane Ike hit Galveston, with Katrina-like consequences. About a sixth of the population never returned. Mrs. Lady lost her apartment and much of what she owned. Fred, consumed with rebuilding the store, reduced the modest sums he had promised to send Angelica.
Social life was awkward. She often felt she was the only one on campus without a credit card. Her roommate moved out, with no explanation. But one element of college appealed to Angelica and Melissa alike: the classes. Other debt-ridden students might wonder why the road to middle-class life passed through anthropology exams and lectures on art history. But Melissa was happy to ponder tribal life in Papua New Guinea and Angelica stepped off the 18-hour bus ride home and let slip an appreciative word about German film.
“My family said ‘O.K., now you go to some big fancy school,’ ” she said.
With A’s, B’s, C’s and D’s, her report card looked like alphabet soup. “I was ready for Galveston College — I wasn’t ready for Emory,” Angelica said. But she salvaged a 2.6 GPA and went home for the summer happy.
“I thought the hard part was over,” she said.
At the end of the summer, Angelica and Melissa marked their ascent as college women with the perfect road trip. Melissa had decided to become a speech therapist. Angelica would practice child psychology. Somewhere between the rainbow in Louisiana and the blues bar in Orlando, they talked of launching a practice to help poor children. Fortune smiled all week.
“We were where we should be and we had the world at our feet,” Melissa said.
Melissa
She returned to a campus that was starting to feel like home. She had a roommate she liked and a job she loved, as a clerk in a Disney store. But despite the feeling of deep change — or perhaps because of it — she got back together with her high-school boyfriend. “That was one of the stupidest things I’ve ever done,” she said.
In the middle of Melissa’s sophomore year they became engaged. He moved near the campus to live with her, and Melissa charged most of their expenses on her credit cards. He was enrolling in the Job Corps program, and they agreed they would pay down the bills together after he became an electrician.
Melissa hit an academic pothole — a C in a communications course, which kept her out of the competitive speech therapy program. But she decided to aim for graduate-school training, and her other grades soared, placing her on the dean’s list both semesters her junior year. When her mother made a rare campus visit, Melissa hurried to show her the prominent display on the student center wall.
“That was one of the proudest moments of my life,” Melissa said.
Just before her senior year, Melissa planned a trip to celebrate her 21st birthday. Preparing to leave, she discovered her money was missing. Only one person had her bank code. After finishing Job Corps, her boyfriend was jobless once again and acting odd — as if he were using drugs.
No one but Melissa was surprised. Although she returned the engagement ring, she could not return the $4,000 in credit card debt he had promised to help pay. With her finances and emotions in disarray, she started her senior year so depressed she hung up black curtains so she could sleep all day. She skipped class, doubled her work hours, and failed nearly every course.
“I started partying, and I was working all the time because I had this debt,” she said.
If the speed of her decline stands out, so does her lack of a safety net. It is easy to imagine a more affluent family stepping in with money or other support. Miss G. sent her the names of some campus therapists but Melissa did not call. She waited for an internal bungee cord to break the fall. She came within one F of losing her financial aid, then aced last summer’s classes.
She is now a fifth-year senior, on track to graduate next summer, and her new boyfriend is studying to be an engineer. At home, she had a way of finding the wrong people. “I haven’t found any wrong people out here,” she said.
With more than $44,000 in loans, she can expect to pay $250 a month for the next quarter century, on top of whatever she may borrow for graduate school. She hides the notices in a drawer and harbors no regrets. “Education — you can’t put a price on it,” she said. “No matter what happens in your life, they can’t take your education away.”
Bianca
Bianca missed the Florida road trip, though no one remembers why. She liked to talk of getting away, until it came time to go.
Among the perils that low-income students face is “under-matching,” choosing a close or familiar school instead of the best they can attend.
“The more selective the institution is, the more likely kids are to graduate,” said Mr. Chingos, the Brookings researcher. “There are higher expectations, more resources and more stigma to dropping out.”
Bianca was under-matched. She was living at home, dating her high-school boyfriend and taking classes at Galveston College. A semester on the honor roll only kept her from sensing the drift away from her plan to transfer to a four-year school.
Her grandfather’s cancer, and chemotherapy treatments, offered more reasons to stay. She had lived with him since her father had died. Leaving felt like betrayal. “I thought it was more important to be at home than to be selfish and be at school,” she said.
The idea that education can be “selfish” — a belief largely alien among the upper-middle class — is one poor students often confront, even if it remains unspoken. “Family is such a priority, especially when you’re a Hispanic female,” Miss G. said. “You’re afraid you’re going to hear, ‘You’re leaving us, you think you’re better.’ ”
In her second year of community college, Bianca was admitted to a state university a hundred miles away. Miss. G. and her mother urged her to go. Her mind raced with reasons to wait.
“I didn’t want to leave and have my grandfather die.”
“I had to help my mom.”
“I think I got burned out.”
Bianca stayed in Galveston, finished her associate degree, and now works as a beach-bar cashier and a spa receptionist. She still plans to get a bachelor’s degree, someday.
“I don’t think I was lazy. I think I was scared,” she said. In the meantime, “life happened.”
Angelica
After the financial aid disaster in her first year, Angelica met the next deadline and returned as a sophomore with significant support. Still, she sensed she was on shakier ground than other low-income students and never understood why. The answer is buried in the aid archives: Emory repeatedly inflated her family’s income without telling her.
Angelica reported that her mother made $35,000 a year and paid about half of that in rent. With her housing costs so high, Emory assumed the family had extra money and assigned Mrs. Lady an income of $51,000. But Mrs. Lady was not hiding money. She was paying inflated post-hurricane rent with the help of Federal disaster aid, a detail Angelica had inadvertently omitted.
By counting money the family did not have, Emory not only increased the amount it expected Angelica to pay in addition to her financial aid. It also disqualified her from most of the school’s touted program of debt relief. Under the Emory Advantage plan the school replaces loans with grants for families making less than $50,000 a year. Moving Angelica just over the threshold placed her in a less-generous tier and forced her to borrow an additional $15,000 before she could qualify. The mistake will add years to her repayment plan.
She discovered what had happened only recently, after allowing a reporter to review her file with Emory officials. “There was no other income coming in,” she said. “I can’t believe that they would do that and not say anything to us. That seems completely unfair.”
Emory officials said they had to rely on the information Angelica provided and that they will not make retroactive adjustments.
“The method that was used in her case was very standard methodology,” said J. Lynn Zimmerman, the senior vice provost who oversees financial aid. “I think that what’s unusual is that she really didn’t advocate for herself or ask for any kind of review. If she or her mother would have provided any additional information it would have triggered a conversation.”
Unaware she had any basis for complaint, Angelica found a campus job she loved, repairing library books. It was solitary and artistic work, and it attracted a small sisterhood of women who appreciated her grandmother’s tamales and her streak of purple hair. One day her boss, Julie Newton, overheard her excitedly talking about Hegel.
“She was an extremely intelligent woman and an unusual one,” she said.
Yet even as Angelica’s work hours grew, so did the rigor of her coursework. Meetings with faculty advisers were optional and Angelica did not consult hers. When it came time to declare a major, she had a B-plus average in the humanities and D’s in psychology. She chose psychology.
By the end of her second year, she felt exhausted and had grades to show it. Her long-distance love life was exhausted, too, and she briefly broke up with Fred. She went home for the summer to work at Target and dragged herself back to a troubled junior year.
She moved off campus to save money but found herself spending even more. “I would sit and debate whether I could buy a head of lettuce,” she said. Fred was no longer helping, and her relationship with him snapped. That he had backed a $40,000 loan only made the split harder. They had been together since she was 15.
“It was days of back and forth, crying,” she said.
This was no time to tackle Psychology 200, a course on research methods required of majors. The devotion of the professor, Nancy Bliwise, had earned her a campus teaching award. But her exacting standards and brusque manner left student opinion divided.
“Quite possibly the greatest professor at Emory,” wrote one contributor to the Web site Rate My Professor. Others found her “condescending,” “horribly disrespectful,” and “plain out mean.”
Midway through the semester, Angelica just stopped coming to class. Professor Bliwise called her in and found her despondent. “She was emotionless and that scared me,” the professor said in an interview. Angelica said she had to work too much to keep up, but could not drop the course without losing her full-time status and her aid. So she planned to take an “F.”
Alarmed, Professor Bliwise raised other options, then asked — empathetically, the professor thought — if Angelica had considered cheaper schools. She herself had worked her way through Cleveland State then earned a doctorate at the University of Chicago.
Angelica sat stone-faced, burning. All she could hear was someone saying she was too poor for Emory. “It was pretty clear if I couldn’t afford to be there, I shouldn’t waste her time,” she said.
That was the beginning of the end. Angelica failed that course and three others her junior year, as her upside-down circumstances left her cheating a $200,000 education for a $9-an-hour job. She was not one to make it easy, but Emory never found a way to intervene. “Is there a way to reach out to her?” Professor Bliwise asked in an e-mail to the dean’s office.
The dean’s office left messages. Angelica acknowledged that she was slow to respond but said she got no answer when she did. The school did an electronic key card check to verify whether she was still on campus. More professors expressed concerns. “Personal issues are interfering with her ability to concentrate,” one warned. Angelica contacted campus counseling but said all the appointments had been taken.
Emory can hardly be cast as indifferent to low-income students. It spends $94 million a year of its own money on financial aid and graduates its poorest students nearly as often as the rest. Its failure to reach Angelica may have come up short, but that is partly a measure of the sheer distance it was trying to bridge.
When Angelica finally found a way to express herself, she did so silently. Her final piece for a sculpture class was a papier-mâché baby, sprouting needles like a porcupine. No one could mistake the statement of her own vulnerability.
“It was a shocking piece,” said her professor, Linda Armstrong. “She had a way of using art to tap into her deepest emotions and feelings. I don’t think she understood how good she was.”
Angelica spent the next summer waiting for an expulsion letter that never came. Another missed deadline cost her several thousand dollars in aid in her senior year, and Emory mistakenly concluded that Mrs. Lady had made a $70,000 down payment on a house. (In describing the complicated transaction with a nonprofit group, Angelica failed to note that most of the money came from a program for first-time home buyers.) Emory officials said the mistake did not affect her aid, but the difference between the school’s costs and her package of loans and grants swelled to $12,000 — a sum she could not possibly meet.
She skipped more classes and worked longer hours.
“I felt, I’m going to be on academic probation anyway, I might as well work and pay my rent until they suspend me.”
Finally, Emory did — forcing her to take a semester away with the option of reapplying.
The tale could be cast as an elite school failing a needy student or a student unwilling to be helped, but neither explanation does justice to an issue as complicated as higher education and class.
“It’s a little of both,” said Joanne Brzinski, a dean who oversees academic advising. “We reached out to her, but she didn’t respond. I always fault myself when students don’t do as well as we’d like them to.”
“It’s such a sad story,” she added. “She had the ability.”
Ms. Newton, Angelica’s former supervisor at the library, wondered if her conflict went beyond money, to a fear of the very success she sought. “I wouldn’t go as far as to say she was committing self-sabotage, but the thought crossed my mind,” she said. “For someone so connected to family and Grandma and the tamales, I wondered if she feared that graduating would alienate her.”
A long bridge crosses the bay to Galveston Island. Angelica returned a year ago the way she had left, with Mrs. Lady and Fred at her side. She is $61,000 in debt, seeing Fred again, and making $8.50 an hour at his family’s furniture store. No one can tell whether she is settling down or gathering strength for another escape.
A dinner with Melissa and Bianca a while back offered the comfort of friends who demand no explanations. Melissa suggested they all enroll at Texas State. But Bianca does not know what to study, and Angelica said that she had gone too far to surrender all hopes of an Emory degree.
“I could have done some things better, and Emory could have done some things better,” she said. “But I don’t blame either one of us. Everyone knows life is unfair — being low-income puts you at a disadvantage. I just didn’t understand the extent of the obstacles I was going to have to overcome.”
Kitty Bennett contributed research.
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Six Careers For People Who Don't Like People
Not a people person? That shouldn't be a problem in these careers
Do you long for a job where you can work in peace and quiet, without people constantly bugging you?
If you're not a people person, don't feel like you have to pretend to be one to get a good job, says Nancy Ancowitz, a business communication coach and author of "Self-Promotion for Introverts®: The Quiet Guide to Getting Ahead."
"After all, who wants to interact with a waiter, salesperson, or doctor who would be happier playing the professional equivalent of Solitaire?" Ancowitz asks. "Not everyone thrives in a customer-facing role - particularly the customers you're facing if you're not a people person."
The good news is that you don't necessarily have to be a people person to thrive in every career.
Keep reading to learn about some great options for people who just want to be left alone.
Career #1 - Accountant
Are you happier focusing on spreadsheets and actually getting things done versus listening to coworkers or customers talking all day? Consider career options in accounting.
"As an accountant or auditor, concentrating on solitary tasks involving financial records, budgets, and tax code is far more important than being a social butterfly or showman," Ancowitz says.
In fact, accountants often spend their days organizing and maintaining financial records, according to the U.S. Department of Labor. You might also study your company's financial statements to make sure they're correct, or think about new ways for your company to reduce costs and improve profits.
Click to Find the Right Accounting Program Now.
Education Options: The Department of Labor says "most accountants and authors need at least a bachelor's degree in accounting or a related field."
Career #2 - Technical Writer
Wish you could be left alone with your thoughts a little more - and deal with people a little less? Consider pursuing a career as a technical writer and you just might get your wish.
"Many writers live a rich life inside their own heads," Ancowitz says. "Depending on what type of writing you do, your need to interact with the outside world may be more dependent on how well you stock your fridge than a burning need to 'party.'"
As a technical writer, for example, you might write instruction or operating manuals, says the U.S. Department of Labor. That could mean spending your days gathering and organizing technical information, and figuring out how to explain complicated products or processes so customers can understand them better.
Click to Find the Right Communications Program Now.
Education Options: According to the Department of Labor, a college degree is usually required. You might want to consider earning it in journalism, English, or communications, as these are degrees employers generally prefer, says the Department.
Career #3 - Graphic Designer
Do you dream of spending your days alone with your creativity, uninterrupted by noisy coworkers or customers? Consider pursuing a career as a graphic designer and your creativity might get to flow without interruption.
"The rest of the world mainly uses words to express themselves and visuals are an afterthought," Ancowitz says. "But for [graphic designers], visuals are your mother tongue and words may not flow so easily. You may enjoy lots of downtime so you can allow your creative thoughts to swirl around your head."
However, Ancowitz warns that some offices may come with coworkers that "may distract you from your creative process," so you'll want to pick and choose where you work wisely.
So what exactly do graphic designers do? According to the U.S. Department of Labor, they often need to figure out what clients need and how to best communicate their message visually. As part of the job, they might create logos or develop layouts for advertisements.
Click to Find the Right Graphic Design Program Now.
Education Options: The Department of Labor says graphic designers usually need a bachelor's degree in graphic design or a related field. The Department also notes that you'll need a good portfolio when it comes time to look for work - so make sure to focus on developing a strong body of work while you're in school.
Career #4 - Software Developer
Do you prefer the reliability of machines to the unpredictability of people? You might want to consider pursuing a career as a software engineer.
"A lot of your work will probably entail sitting for hours on end at your computer rather than sitting at meetings all day," Ancowitz says.
And if you really want a workspace you're comfortable with, you'll probably be thrilled with this bit of news: Many software developers are able to telecommute to work, says the U.S. Department of Labor. This could be perfect for people who don't like the distractions of a busy office.
In terms of what you'll be doing, the Department of Labor says that as a software engineer, you might spend your days designing applications or even testing your software to make sure it works correctly.
Click to Find the Right Computer Science Program Now.
Education Options: Software developers generally have a bachelor's degree in computer science, software engineering, or a related field - though a degree in math might also be okay for some employers, according to the Department.
Career #5 - Medical Laboratory Technician
Are you happiest when you know exactly what you need to do, following specific instructions to the letter? You might want to consider a career as a medical laboratory technician.
"Medical lab technicians often work with one patient at a time as well as behind-the-scenes," Ancowitz says. "This job may be appealing to you because it doesn't entail campaign speeches, back-to-back meetings, or nonstop schmoozing."
In fact, one of the things you might do as a medical lab technician working under the supervision of a medical laboratory technologist or laboratory manager is collect samples of body fluids, tissue, or other substances from patients - and then perform tests on them, says the U.S. Department of Labor.
Click to Find the Right Medical Laboratory Technician Program Now.
Education Options: You'll usually need a medical laboratory technician associate's degree or certificate to get started in this field, says the Department of Labor. Check and see if your state requires medical laboratory technicians to get licensed or certified as well.
Career #6 - Information Security Analyst
Do you like the idea of thwarting criminals before they can cause major damage - but don't want to deal with people face to face? Consider preparing to pursue a career as an information security analyst.
"This is another career that is great for those who like to remain behind the scenes," Ancowitz says. She notes that this could be perfect for someone who's "got the mind of a sleuth, the energy of a watchdog, and the patience and persistence to solve complex technical problems."
The U.S. Department of Labor says information security analysts can use firewalls and data encryption programs to protect their company's computer systems from cyber attacks. You may also spend a lot of time keeping up-to-date on the latest cyber attacks and new security technology.
Click to Find the Right Computer Science Program Now.
Education Options: The Department of Labor says information security analysts generally need a bachelor's degree in computer science, programming, or another computer-related field. The Department also notes that employers prefer analysts who've earned their master's in business administration (MBA) in information systems.
____________________________________
Not a people person? That shouldn't be a problem in these careers
Do you long for a job where you can work in peace and quiet, without people constantly bugging you?
If you're not a people person, don't feel like you have to pretend to be one to get a good job, says Nancy Ancowitz, a business communication coach and author of "Self-Promotion for Introverts®: The Quiet Guide to Getting Ahead."
"After all, who wants to interact with a waiter, salesperson, or doctor who would be happier playing the professional equivalent of Solitaire?" Ancowitz asks. "Not everyone thrives in a customer-facing role - particularly the customers you're facing if you're not a people person."
The good news is that you don't necessarily have to be a people person to thrive in every career.
Keep reading to learn about some great options for people who just want to be left alone.
Career #1 - Accountant
Are you happier focusing on spreadsheets and actually getting things done versus listening to coworkers or customers talking all day? Consider career options in accounting.
"As an accountant or auditor, concentrating on solitary tasks involving financial records, budgets, and tax code is far more important than being a social butterfly or showman," Ancowitz says.
In fact, accountants often spend their days organizing and maintaining financial records, according to the U.S. Department of Labor. You might also study your company's financial statements to make sure they're correct, or think about new ways for your company to reduce costs and improve profits.
Click to Find the Right Accounting Program Now.
Education Options: The Department of Labor says "most accountants and authors need at least a bachelor's degree in accounting or a related field."
Career #2 - Technical Writer
Wish you could be left alone with your thoughts a little more - and deal with people a little less? Consider pursuing a career as a technical writer and you just might get your wish.
"Many writers live a rich life inside their own heads," Ancowitz says. "Depending on what type of writing you do, your need to interact with the outside world may be more dependent on how well you stock your fridge than a burning need to 'party.'"
As a technical writer, for example, you might write instruction or operating manuals, says the U.S. Department of Labor. That could mean spending your days gathering and organizing technical information, and figuring out how to explain complicated products or processes so customers can understand them better.
Click to Find the Right Communications Program Now.
Education Options: According to the Department of Labor, a college degree is usually required. You might want to consider earning it in journalism, English, or communications, as these are degrees employers generally prefer, says the Department.
Career #3 - Graphic Designer
Do you dream of spending your days alone with your creativity, uninterrupted by noisy coworkers or customers? Consider pursuing a career as a graphic designer and your creativity might get to flow without interruption.
"The rest of the world mainly uses words to express themselves and visuals are an afterthought," Ancowitz says. "But for [graphic designers], visuals are your mother tongue and words may not flow so easily. You may enjoy lots of downtime so you can allow your creative thoughts to swirl around your head."
However, Ancowitz warns that some offices may come with coworkers that "may distract you from your creative process," so you'll want to pick and choose where you work wisely.
So what exactly do graphic designers do? According to the U.S. Department of Labor, they often need to figure out what clients need and how to best communicate their message visually. As part of the job, they might create logos or develop layouts for advertisements.
Click to Find the Right Graphic Design Program Now.
Education Options: The Department of Labor says graphic designers usually need a bachelor's degree in graphic design or a related field. The Department also notes that you'll need a good portfolio when it comes time to look for work - so make sure to focus on developing a strong body of work while you're in school.
Career #4 - Software Developer
Do you prefer the reliability of machines to the unpredictability of people? You might want to consider pursuing a career as a software engineer.
"A lot of your work will probably entail sitting for hours on end at your computer rather than sitting at meetings all day," Ancowitz says.
And if you really want a workspace you're comfortable with, you'll probably be thrilled with this bit of news: Many software developers are able to telecommute to work, says the U.S. Department of Labor. This could be perfect for people who don't like the distractions of a busy office.
In terms of what you'll be doing, the Department of Labor says that as a software engineer, you might spend your days designing applications or even testing your software to make sure it works correctly.
Click to Find the Right Computer Science Program Now.
Education Options: Software developers generally have a bachelor's degree in computer science, software engineering, or a related field - though a degree in math might also be okay for some employers, according to the Department.
Career #5 - Medical Laboratory Technician
Are you happiest when you know exactly what you need to do, following specific instructions to the letter? You might want to consider a career as a medical laboratory technician.
"Medical lab technicians often work with one patient at a time as well as behind-the-scenes," Ancowitz says. "This job may be appealing to you because it doesn't entail campaign speeches, back-to-back meetings, or nonstop schmoozing."
In fact, one of the things you might do as a medical lab technician working under the supervision of a medical laboratory technologist or laboratory manager is collect samples of body fluids, tissue, or other substances from patients - and then perform tests on them, says the U.S. Department of Labor.
Click to Find the Right Medical Laboratory Technician Program Now.
Education Options: You'll usually need a medical laboratory technician associate's degree or certificate to get started in this field, says the Department of Labor. Check and see if your state requires medical laboratory technicians to get licensed or certified as well.
Career #6 - Information Security Analyst
Do you like the idea of thwarting criminals before they can cause major damage - but don't want to deal with people face to face? Consider preparing to pursue a career as an information security analyst.
"This is another career that is great for those who like to remain behind the scenes," Ancowitz says. She notes that this could be perfect for someone who's "got the mind of a sleuth, the energy of a watchdog, and the patience and persistence to solve complex technical problems."
The U.S. Department of Labor says information security analysts can use firewalls and data encryption programs to protect their company's computer systems from cyber attacks. You may also spend a lot of time keeping up-to-date on the latest cyber attacks and new security technology.
Click to Find the Right Computer Science Program Now.
Education Options: The Department of Labor says information security analysts generally need a bachelor's degree in computer science, programming, or another computer-related field. The Department also notes that employers prefer analysts who've earned their master's in business administration (MBA) in information systems.
____________________________________
New Rage: Loan-Payoff Parties
When you pay off $127,482 in debt
Cherie and Brian Lowe went through years of frugality to retire massive student loans
Then came the fun part
Click green for further info
When Cherie and Brian Lowe of suburban Indianapolis threw a party last spring, 150 well-wishers came bearing casseroles.
This was no birthday or anniversary bash. Mr. Lowe, a lawyer, and Ms. Lowe, a stay-at-home mom, both 36 years old, were celebrating an accomplishment: paying off $127,482.30 in debt, mainly student loans.
Partygoers came from as far as 200 miles away. Some had never met the Lowes but followed their quest through a blog called Queen of Free. Guests won prizes such as personal-finance books, museum passes and homemade cleaning supplies. One friend sang "Sallie Mae Is Not My Lender" to the tune of Michael Jackson's "Billie Jean."
Americans are struggling with student loans like never before. Outstanding student-loan debt hit a record-high $956 billion in the third quarter, and 11% of student-loan balances were at least 90 days behind on payments, according to the Federal Reserve Bank of New York.
Some borrowers are fighting back, using a combination of extreme frugality and extra part-time jobs. And a few who win the battle by retiring their bills early are marking the triumph in style.
Ms. Lowe, through the blog she wrote during her family's four-year campaign to escape debt, repeatedly told family and friends: "When we're done, we're going to throw a party, and you're all invited," she recalls.
For some people, the anticipation of hosting a big bash is part of the motivation. Pinterest, a website that bills itself as an "online pin board," has a page of photos with decoration ideas for a student-loan payoff party being planned for March 2013. Another "pinner" posted a photo of what she calls the "perfect dessert for a 'Finally Paid off My Student Loans' party"—a watermelon fruit bowl carved as a shark, as in a loan shark.
Debates rage online over whether throwing such a party is celebrating or bragging. Some people who have sacrificed to wipe out their college loans worry that announcing their success could lead to requests for handouts.
In Manhattan, 31-year-old Sara Pereda is planning a party Jan. 25 to celebrate paying off about $37,000 in credit-card debt. She is still chipping away at $42,000 in student-loan debt but expects to pay that off within 18 months, she says.
Her party will be a charity fundraiser. She plans to buy drinks for friends at a bar for a few hours. In return, she is requesting $20 donations to YoungLives Harlem, a nonprofit group that works with teenage mothers.
She got the idea after realizing that the monthly amount she has been paying to shed her debt—roughly $2,200—would cover an open bar for about 70 people for at least a few hours.
Ms. Pereda says she got the student loans after moving back to her native Southern California to finish college, rather than staying at a Wisconsin school where she had a scholarship, so she could get work in the film industry. When she relocated to New York for a job with Miramax five years ago, she was making $45,000 a year, paying $1,300 a month in rent and about $330 a month for her student loans, on top of her credit-card payments.
In May 2009, Ms. Pereda quit using credit cards and started making payments of $700 a month after going through a "Good Cents" debt-reduction course offered by her church. The moment of truth was when she had to show all of her statements to the teachers, she says, and add up what she owed.
To make extra money, Ms. Pereda worked as a nanny on weekends for wealthy families in the Hamptons. She worked the front desk at her gym, which allowed her to ditch the $145-a-month fee. She hosted brunch at a restaurant, then worked as a cocktail server at a hotel lounge before learning how to tend bar. And she moved, slashing her rent by 60% to $490 a month.
Not everyone throws a bash to commemorate their freedom from student debt.
Joseph Mihalic, 29, paid off in just seven months about $90,000 in loans from attending Harvard Business School.
He attacked the debt by getting roommates to move in, selling a bicycle, motorcycle and second car, and starting a landscape business. He even cashed out his individual retirement account, paying a penalty to do so. He also sneaked a flask into bars rather than splurging on drinks, and took dates hiking rather than going out to eat.
A friend filmed him pushing a button on his computer to make the last loan payment. But there was no party. "I didn't have any money to throw one," Mr. Mihalic says.
The Lowes, the Indiana husband and wife, owed more than $80,000 combined on loans for law school for Mr. Lowe and undergraduate loans for both of them. When Mr. Lowe started applying for jobs, they were shocked to learn that starting pay at smaller firms "was less than what a teacher makes," she says. Still, they thought the more family-friendly working hours would be worth it.
Four years ago, they decided to tackle the debt head-on, she says. The student loans, which affected all of the family's other spending, were the toughest to shed.
Mr. Lowe took on two extra posts as an administrative law judge, working 12-hour days, often six days a week. They also scaled back their lifestyle dramatically. "The more success we got, the hungrier we got," Ms. Lowe says.
The Lowes quit giving each other gifts and limited their spending on their two daughters, who are 10 and 4, to three gifts apiece at Christmas: something to read, something to wear and one great toy. They went on no vacations, other than family visits and one trip to Disney World in Florida, a gift from Ms. Lowe's parents.
They quit eating at restaurants. There were no movies, and outings were limited to $10 and had to be budgeted. The daughters were limited to one extracurricular activity at a time.
In the past year, Ms. Lowe even started making her own laundry detergent. (The ingredients: one cup of Borax, one cup of washing soda and one cup of grated Ivory soap. Use one tablespoon per load.) She started to pull in a few hundred dollars from speaking engagements, and wrangled museum passes and other perks by blogging for the local convention bureau about things to do in Indianapolis.
The hardest parts of self-imposed frugality: not being able to donate to charity, give big gifts to her daughters' teachers or contribute as much to their church as they would have liked.
On March 28, they made the last student-loan payment. In May, they threw a party at their church. In lieu of gifts, they asked guests to clean out their change jars and donate their coins to Blood:Water Mission, a Nashville, Tenn., nonprofit group working to overcome the HIV/AIDS and water crises in Africa.
Rather than hiring a caterer, they made the party a "pitch-in," and everyone was asked to bring something sweet or salty to share. Ms. Lowe also scored $100 worth of fried chicken from a local cafeteria using credits from publicizing its deals on her blog.
With their debt gone, they now are turning to other goals: paying off their mortgage early, funding their kids' college without debt and saving for retirement.
Still, they can afford more ice cream and fresh herbs nowadays. "I've loosened up and gave us $25 extra a week in groceries," Ms. Lowe says. "We're living wild."
MORE FROM
Click green for further info
When you pay off $127,482 in debt
Cherie and Brian Lowe went through years of frugality to retire massive student loans
Then came the fun part
Click green for further info
When Cherie and Brian Lowe of suburban Indianapolis threw a party last spring, 150 well-wishers came bearing casseroles.
This was no birthday or anniversary bash. Mr. Lowe, a lawyer, and Ms. Lowe, a stay-at-home mom, both 36 years old, were celebrating an accomplishment: paying off $127,482.30 in debt, mainly student loans.
Partygoers came from as far as 200 miles away. Some had never met the Lowes but followed their quest through a blog called Queen of Free. Guests won prizes such as personal-finance books, museum passes and homemade cleaning supplies. One friend sang "Sallie Mae Is Not My Lender" to the tune of Michael Jackson's "Billie Jean."
Americans are struggling with student loans like never before. Outstanding student-loan debt hit a record-high $956 billion in the third quarter, and 11% of student-loan balances were at least 90 days behind on payments, according to the Federal Reserve Bank of New York.
Some borrowers are fighting back, using a combination of extreme frugality and extra part-time jobs. And a few who win the battle by retiring their bills early are marking the triumph in style.
Ms. Lowe, through the blog she wrote during her family's four-year campaign to escape debt, repeatedly told family and friends: "When we're done, we're going to throw a party, and you're all invited," she recalls.
For some people, the anticipation of hosting a big bash is part of the motivation. Pinterest, a website that bills itself as an "online pin board," has a page of photos with decoration ideas for a student-loan payoff party being planned for March 2013. Another "pinner" posted a photo of what she calls the "perfect dessert for a 'Finally Paid off My Student Loans' party"—a watermelon fruit bowl carved as a shark, as in a loan shark.
Debates rage online over whether throwing such a party is celebrating or bragging. Some people who have sacrificed to wipe out their college loans worry that announcing their success could lead to requests for handouts.
In Manhattan, 31-year-old Sara Pereda is planning a party Jan. 25 to celebrate paying off about $37,000 in credit-card debt. She is still chipping away at $42,000 in student-loan debt but expects to pay that off within 18 months, she says.
Her party will be a charity fundraiser. She plans to buy drinks for friends at a bar for a few hours. In return, she is requesting $20 donations to YoungLives Harlem, a nonprofit group that works with teenage mothers.
She got the idea after realizing that the monthly amount she has been paying to shed her debt—roughly $2,200—would cover an open bar for about 70 people for at least a few hours.
Ms. Pereda says she got the student loans after moving back to her native Southern California to finish college, rather than staying at a Wisconsin school where she had a scholarship, so she could get work in the film industry. When she relocated to New York for a job with Miramax five years ago, she was making $45,000 a year, paying $1,300 a month in rent and about $330 a month for her student loans, on top of her credit-card payments.
In May 2009, Ms. Pereda quit using credit cards and started making payments of $700 a month after going through a "Good Cents" debt-reduction course offered by her church. The moment of truth was when she had to show all of her statements to the teachers, she says, and add up what she owed.
To make extra money, Ms. Pereda worked as a nanny on weekends for wealthy families in the Hamptons. She worked the front desk at her gym, which allowed her to ditch the $145-a-month fee. She hosted brunch at a restaurant, then worked as a cocktail server at a hotel lounge before learning how to tend bar. And she moved, slashing her rent by 60% to $490 a month.
Not everyone throws a bash to commemorate their freedom from student debt.
Joseph Mihalic, 29, paid off in just seven months about $90,000 in loans from attending Harvard Business School.
He attacked the debt by getting roommates to move in, selling a bicycle, motorcycle and second car, and starting a landscape business. He even cashed out his individual retirement account, paying a penalty to do so. He also sneaked a flask into bars rather than splurging on drinks, and took dates hiking rather than going out to eat.
A friend filmed him pushing a button on his computer to make the last loan payment. But there was no party. "I didn't have any money to throw one," Mr. Mihalic says.
The Lowes, the Indiana husband and wife, owed more than $80,000 combined on loans for law school for Mr. Lowe and undergraduate loans for both of them. When Mr. Lowe started applying for jobs, they were shocked to learn that starting pay at smaller firms "was less than what a teacher makes," she says. Still, they thought the more family-friendly working hours would be worth it.
Four years ago, they decided to tackle the debt head-on, she says. The student loans, which affected all of the family's other spending, were the toughest to shed.
Mr. Lowe took on two extra posts as an administrative law judge, working 12-hour days, often six days a week. They also scaled back their lifestyle dramatically. "The more success we got, the hungrier we got," Ms. Lowe says.
The Lowes quit giving each other gifts and limited their spending on their two daughters, who are 10 and 4, to three gifts apiece at Christmas: something to read, something to wear and one great toy. They went on no vacations, other than family visits and one trip to Disney World in Florida, a gift from Ms. Lowe's parents.
They quit eating at restaurants. There were no movies, and outings were limited to $10 and had to be budgeted. The daughters were limited to one extracurricular activity at a time.
In the past year, Ms. Lowe even started making her own laundry detergent. (The ingredients: one cup of Borax, one cup of washing soda and one cup of grated Ivory soap. Use one tablespoon per load.) She started to pull in a few hundred dollars from speaking engagements, and wrangled museum passes and other perks by blogging for the local convention bureau about things to do in Indianapolis.
The hardest parts of self-imposed frugality: not being able to donate to charity, give big gifts to her daughters' teachers or contribute as much to their church as they would have liked.
On March 28, they made the last student-loan payment. In May, they threw a party at their church. In lieu of gifts, they asked guests to clean out their change jars and donate their coins to Blood:Water Mission, a Nashville, Tenn., nonprofit group working to overcome the HIV/AIDS and water crises in Africa.
Rather than hiring a caterer, they made the party a "pitch-in," and everyone was asked to bring something sweet or salty to share. Ms. Lowe also scored $100 worth of fried chicken from a local cafeteria using credits from publicizing its deals on her blog.
With their debt gone, they now are turning to other goals: paying off their mortgage early, funding their kids' college without debt and saving for retirement.
Still, they can afford more ice cream and fresh herbs nowadays. "I've loosened up and gave us $25 extra a week in groceries," Ms. Lowe says. "We're living wild."
MORE FROM
Click green for further info
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- Six Investment Moves to Make Now
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- Related links _______________________________________________________________________________
Unemployment May Increase Chances of Heart Attacks
Click green for further info
Unemployment hurts more than your wallet — it may damage your heart. That's according to a study linking joblessness with heart attacks in older workers.
The increased odds weren't huge, although multiple job losses posed as big a threat as smoking, high blood pressure and other conditions that are bad for the heart.
The researchers analyzed data on more than 13,000 men and women aged 51 to 75 taking part in an ongoing health and retirement survey partly sponsored by the National Institute on Aging. Since 1992, participants have been interviewed every two years about their employment and health.
The new analysis has several limitations. The data show periods of unemployment but don't indicate whether people were fired, laid off, out of work while switching jobs, or had voluntarily left a job. The researchers considered all of these situations "job losses," but it's likely the greatest risks for heart attacks were from being fired or laid off, said researcher Matthew Dupre, an assistant professor at Duke University and the lead author. Retirement was not considered unemployment
Sarah Burgard, a University of Michigan researcher who has studied the relationship between job loss and health, called the research solid but said it would be important to know the reason for the unemployment.
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"There probably are differences in consequences of job loss when it's voluntary or more or less expected" and when it comes as a sudden shock, said Burgard, who was not involved in the study.
The analysis appears in Monday's, 11/19/12, Archives of Internal Medicine. An editorial in the journal says the study adds to decades of research linking job loss with health effects and that research should now turn to examining how and why that happens.
Theories include that the stress of losing a job may trigger a heart attack in people with clogged arteries or heart disease; and that the unemployed lose health insurance and access to medical care that can help keep them healthy, Burgard said.
The analysis covers 1992-2010. Participants were mostly in their 50s at the study's beginning and were asked about their job history, and about employment status and recent heart attacks at subsequent interviews. People who'd had heart attacks before the study began were excluded.
Nearly 70 percent had at least one job loss, or period of unemployment after working at a job, and at least 10 percent had four or more before and/or during the study period.
There were 1,061 heart attacks during the study. Those with at least one job loss were 22 percent more likely to have a heart attack than those who never lost a job. Those with at least four job losses had a 60 percent higher risk than those with none. Men and women faced equal risks.
Even though the odds linked with job loss weren't huge, many participants already faced increased other risks for a heart attack because of obesity, high blood pressure or lack of exercise.
"Any significant additional risk is important," Dupre said.
Click green for further info
This article is for your private use, only
_______________________________________________________
The following article relates to jobs and interviews:
in some states
size discrimination is not illegal by law
Find out in your own state how the discrimination laws are in case you have any concerns
__________
‘Plus-Sized’ College Student, Ms. Jordan Ramos,
Claims Discrimination at Bar
Ramos approached the Human Rights Commission in Iowa City, but the organization told her
they could not do an investigation because size discrimination is not illegal by law, Ramos said.
Find out in your own state how the discrimination laws are in case you have any concerns.
A self-described “plus sized” college student who was told she was “obviously pregnant” and “not pretty enough” to dance on a platform in a bar in Iowa is claiming she was discriminated against by the bar’s bouncers. Jordan Ramos, a 21-year-old University of Iowa student said she went to Union Bar in Iowa City, Iowa
with her friends on March 3. She said she tried to get onto a platform where several of her friends were dancing, but was stopped by the bouncer, who said they were at capacity.
Ramos said she waited until a few girls left, and again tried to go up. She was stopped again, which she said prompted her to ask, “What is the difference between the other girls up there and myself?”
“There was only one difference: I am a plus-sized individual. The bouncer said ‘Look, you will never get up on this platform. Go back to the dance floor where you belong,’” Ramos told ABC News.
Ramos said a friend of hers tried to talk to the manager, but he refused to talk to her. The manager told them to leave, Ramos said. She sent the manager an email, which she says was never answered.
A social work professor at the University of Iowa told Ramos to return to the bar.
“She told my friends and I to go back and see if the same thing happens and to try to get them to say aloud ‘I am not allowing you up because of your size,’” Ramos said.
On April 14, Ramos returned to the Union Bar with a group of friends. Ramos’ friends, who she said are all thin, were able to get up on the platform easily. But Ramos was blocked from entering, she said.
Ramos asked the bouncer repeatedly why she could not dance on the platform.
“He said, ‘You’re not pretty enough and you’re pregnant.’ I said, ‘I can tell you with 100 percent certainty that I am not pregnant.’ He then looked at my stomach and said, ‘You obviously are.’ They knew I was not pregnant; it was there way of calling me fat without having to actually say it,” Ramos said.
Ramos approached the Human Rights Commission in Iowa City, but the organization told her they could not do an investigation because size discrimination is not illegal by law, Ramos said.
Union Bar did not immediately return a call for comment from ABC News.
This is for your private use, only
Source: abc News
___________________________________________________________
Next: 7 (seven) important articles
how to keep you head cool and keep your big money windfalls and live
happily ever after as a multi-millionaire
NOTICE: STAF, Inc. has also a program package for becoming
a multi-millionaire with starting only $50 a month
Contact STAF, Inc. by phone or via an email
(contact info - see: home page)
Article # 1 of 7
"How to keep your head cool, keep the Big Money Windfalls & stay as a multimillionaire for the rest of your life"
Winning B-I-G Money
Be Prepared NOW if a windfall brings you big money
Here a complete package of information
to start with and prepare yourself for a windfall
Knowledge and training are needed to keep your big money windfall of any kind
Three quotations by Dr. Christian (STAF, Inc. President):
"When you are prepared for a matter it will appear and you can grab it into your life"
"Preparedness is the key to a lasting life success"
"Preparedness is the paid fee on the life's toll road to riches"
When you are prepared HOW to keep your head COOL and manage wisely your big money, and how to avoid the destroying temptations, then the things you have trained yourself for in life will have a tendency to appear and become a reality for you.
Most big money winners are not prepared - then they lose all in a few years.
How to keep your your head cool and actions correct when a big lottery
winning or other big money winning comes to your life?
How to settle as a steady millionaire and not lose
everything as most winners do?
There are several types of big windfalls in addition to a Powerball, Big Game, Lotto or similar
Most common of them explained below
Save The American Family - STAF, Inc. has a complete package to guide you as a winner of big money.
(1) How to win the wrong temptations - (2) How to live as a multi-millionaire the rest of your life -
(3) How to leave big inheritance to your children or to your favorite not-for-profit or charity (if you have no children)
STEP ONE: Immediately when you get big money, contact STAF, Inc. by phone and via email and request a full training how to keep your money, how to multiply it year after year and how to keep your head cool long enough to settle as a real winner: as a multi-millionaire who never loses his millions yet lives large on the interest only based on correctly made investments.
The National Endowment for Financial Education cautions those who receive a financial windfall — whether from (1) lottery winnings, (2) divorce settlements, (3) cashed-out stock options or (4) family inheritances, (4) court settlements of all types, (5) other -- to plan for their psychological needs as well as their financial strategies. The Denver-based nonprofit estimates that
as many as 70 percent of people who land sudden windfalls lose that money within several years.
STAF, Inc.'s advice systems covers all these topics and guides to be a real winner = to stay wealthy for the rest of your life without any life-destroying troubles.
"Being able to manage your emotions before you do anything sudden is one of the biggest things," said endowment spokesman Paul Golden.
"If you've never had the comfort of financial security before, if you were really eking out a living from paycheck to paycheck, if you've never managed big money before, it can be really confusing.
There's this false belief that no matter what you do, you're never going to worry about money again."
_____________
Article # 2 of 7
"How to keep your head cool, keep the Big Money Windfalls & stay as a multimillionaire for the rest of your life"
Below an important article showing additional details what to do and what not to do as a lottery or other big money winner. STAF, Inc.'s training package covers many more areas necessary to keep your winnings, to keep your head cool, to know how and where to invest - the package will cover everything necessary for a big money winner to stay as the winner.
Big winners share lessons,
risks of Powerball winners
Past winners of mega-lottery drawings and financial planners have some more sound advice: Stick to a budget, invest wisely, learn to say no and be prepared to lose friends while riding an emotional roller-coaster of joy, anxiety, guilt and distrust.
"I had to adapt to this new life, "said Sandra Hayes, 52, a former child services social worker who split a $224 million Powerball jackpot with a dozen co-workers in 2006, collecting a lump sum she said was in excess of $6 million after taxes. "I had to endure the greed and the need that people have, trying to get you to release your money to them. That caused a lot of emotional pain. These are people who you've loved deep down, and they're turning into vampires trying to suck the life out of me."
The single mother kept her job with the state of Missouri for another month and immediately used her winnings to pay off an estimated $100,000 in student loans and a $70,000 mortgage. She spent a week in Hawaii and bought a new Lexus, but six years later still shops at discount stores and lives on a fixed income — albeit, at a higher monthly allowance than when she brought home paychecks of less than $500 a week.
"I know a lot of people who won the lottery and are broke today," she said. "If you're not disciplined, you will go broke. I don't care how much money you won, had and have now. Without discipline you will lose all you have." STAF, Inc.'s service line helps in all these matters. Apply the information and you will be wealthy as long you live.
Lottery agencies are keen to show off beaming prize-winners hugging oversize checks at celebratory news conferences, but the tales of big lottery winners who wind up in financial ruin, despair or both are increasingly common.
There's the two-time New Jersey lottery winner who squandered her $5.4 million fortune. A West Virginia man who won $315 million a decade ago on Christmas later said the windfall was to blame for his granddaughter's fatal drug overdose, his divorce, hundreds of lawsuits and an absence of true friends.
The National Endowment for Financial Education cautions those who receive a financial windfall — whether from lottery winnings, divorce settlements, cashed-out stock options or family inheritances — to plan for their psychological needs as well as their financial strategies. The Denver-based nonprofit estimates that as many as 70 percent of people who land sudden windfalls lose that money within several years. STAF, Inc. advice systems covers all these topics and guides to be a rel winner = to stay wealthy for the rest of your life without any life-destroying troubles.
"Being able to manage your emotions before you do anything sudden is one of the biggest things," said endowment spokesman Paul Golden. "If you've never had the comfort of financial security before, if you were really eking out a living from paycheck to paycheck, if you've never managed money before, it can be really confusing. There's this false belief that no matter what you do, you're never going to worry about money again."
David Gehle, who spent 20 years at a Nebraska meatpacking plant before he and seven ConAgra Foods co-workers won a $365 million Powerball jackpot in 2006, used some of his winnings to visit Australia, New Guinea and Vietnam. He left ConAgra three weeks after he won, and now spends his time woodworking and playing racquetball, tennis and golf.
But most of his winnings are invested, and the 59-year-old still lives in his native Lincoln. He waited for several years before buying a $450,000 home in a tidy neighborhood on the southern edge of town.
"My roots are in Nebraska, and I'm not all that much different now than I was before," Gehle said. "I'm pretty normal. I never was the kind of guy who went for big, expensive cars or anything like that. I just want something that runs."
In the first year after he won, Michael Terpstra would awaken many nights in a panic. Had he slept in? Was he late to work the night shift?
"At times I'd wake up and this would all seem like a dream," the 54-year-old said. "I'd have to walk around the house and tell myself, I did win. I'm not working anymore, and I do live here. I didn't get drunk, break into someone's house and go to sleep. This is where I'm supposed to be."
His new home is a roomy, two-story house in south Lincoln with a big-screen television and paintings of Jesus on the walls. He no longer uses alarm clocks and spends his days taking his 92-pound black lab, Rocco, on walks.
He was terrified when he first won, convinced that he would lose all of the money and have to return to work. So he lives carefully off the interest from conservative investments, with help from accountants and lawyers. He bought the new house and a truck, but struggles to name any extravagant purchases.
"I can't buy a super yacht. I can't buy a Gulfstream," he said. "Then again, I don't think I'd use either one, so why would I buy one?"
That said, some mega-winners still can't resist the lure of big jackpots, at least not the two-buck chances. On Tuesday, former ConAgra worker Dung Tran, a Vietnamese immigrant, walked into the same Lincoln U-Stop where he purchased the winning ticket six years ago and bought 22 more from the very employee who sold him the first prize-winner, said cashier Janice Mitzner.
"We joked about it," she said. "I told him, 'Wouldn't it be something if you won again?'"
Hayes is also hoping to strike rich again — she bought 10 tickets at a Dirt Cheap liquor store on her way home Tuesday while speaking with an Associated Press reporter. Unlike many big winners, she has kept a visible public profile instead of going underground, appearing on a 2007 reality TV show ("Million Dollar Christmas"), writing an online Life After the Lottery blog and self-publishing a short book, "How Winning the Lottery Changed My Life."
"When somebody wins big - in hundreds of millions, God bless them," she said. "They're going to need those blessings."
This article is for your private use, only
________________________________________
Article # 3 of 7
"How to keep your head cool, keep the Big Money Windfalls & stay as a multimillionaire for the rest of your life"
On the lighter side of the lottery winnings - the following article is from New York
if you believe in lightning striking twice
Recent New York City Lottery Winning Locations
2012
You might think again if you believe that getting your hands on a winning lottery ticket in New York City is all about having good luck. Of course, the luck of the draw has a lot to do with it, but finding a location that regularly sells big-money tickets could help you score a big win if you believe in lightning striking twice.
For instance, Empire Wine & Liquor Depot, located at 77C Richmond Hill Road in Staten Island, had a $86 million Mega Millions winner on July 3, 2012. Staten Island also produced a million-dollar winner on August 1, as a $1 million Powerball jackpot was won from the Hylan Family location on 2270 Hylan Blvd.
There are several New York City locations that (Click green: have a rich recent history of selling winning
(Click green: New York Lottery tickets, so your best bet may be to check out one of the following locations:
The Bronx
In the past 12 months, several Bronx locations produced New York lottery winners. Bronx New Way Corp., located on 111 East Kingsbridge Road, had a $5,000 winner on June 3, and Bartow Food Mart (1945 Bartow Ave.) had a $5,000 Win-4 winner on October 10. Just a few miles from the aforementioned locations, the Mobile station at 688 East Gunhill Road also produced a $5,000 Win-4 winner.
Upper East Side
Many New York City residents on the Upper East Side found success of late at their local convenience shops, as Thomas Newsstand II (1000 10th Ave.) had a $5,000 Win-4 winner on August 24, and Jasmine News #1 (185 Madison Ave.) produced a $2,500 New York lottery winner on July 28.
SoHo
SoHo had several big-money winners this year, including a $2,500 winning ticket on September 17 that came from New York SoHo Market (213 Sixth Ave.). Also in the SoHo area of New York City, Yankee Deli (647 11th St.) had a $2,500 Win-4 winner on October 29.
Source:
Eric Holden, a New York resident, is an avid New York Lottery player. He spends approximately $20 a week on lotto tickets.
This article is for your private use, only
Above referred to National Endowment for Financial Education - Wikipedia link below - search website for further links to that organization.
Save The American Family - STAF, Inc.'s website: www.staf1org.weebly.com (you are in that website now)
Be Prepared NOW if a windfall brings you big money
Here a complete package of information
to start with and prepare yourself for a windfall
Knowledge and training are needed to keep your big money windfall of any kind
Three quotations by Dr. Christian (STAF, Inc. President):
"When you are prepared for a matter it will appear and you can grab it into your life"
"Preparedness is the key to a lasting life success"
"Preparedness is the paid fee on the life's toll road to riches"
When you are prepared HOW to keep your head COOL and manage wisely your big money, and how to avoid the destroying temptations, then the things you have trained yourself for in life will have a tendency to appear and become a reality for you.
Most big money winners are not prepared - then they lose all in a few years.
How to keep your your head cool and actions correct when a big lottery
winning or other big money winning comes to your life?
How to settle as a steady millionaire and not lose
everything as most winners do?
There are several types of big windfalls in addition to a Powerball, Big Game, Lotto or similar
Most common of them explained below
Save The American Family - STAF, Inc. has a complete package to guide you as a winner of big money.
(1) How to win the wrong temptations - (2) How to live as a multi-millionaire the rest of your life -
(3) How to leave big inheritance to your children or to your favorite not-for-profit or charity (if you have no children)
STEP ONE: Immediately when you get big money, contact STAF, Inc. by phone and via email and request a full training how to keep your money, how to multiply it year after year and how to keep your head cool long enough to settle as a real winner: as a multi-millionaire who never loses his millions yet lives large on the interest only based on correctly made investments.
The National Endowment for Financial Education cautions those who receive a financial windfall — whether from (1) lottery winnings, (2) divorce settlements, (3) cashed-out stock options or (4) family inheritances, (4) court settlements of all types, (5) other -- to plan for their psychological needs as well as their financial strategies. The Denver-based nonprofit estimates that
as many as 70 percent of people who land sudden windfalls lose that money within several years.
STAF, Inc.'s advice systems covers all these topics and guides to be a real winner = to stay wealthy for the rest of your life without any life-destroying troubles.
"Being able to manage your emotions before you do anything sudden is one of the biggest things," said endowment spokesman Paul Golden.
"If you've never had the comfort of financial security before, if you were really eking out a living from paycheck to paycheck, if you've never managed big money before, it can be really confusing.
There's this false belief that no matter what you do, you're never going to worry about money again."
_____________
Article # 2 of 7
"How to keep your head cool, keep the Big Money Windfalls & stay as a multimillionaire for the rest of your life"
Below an important article showing additional details what to do and what not to do as a lottery or other big money winner. STAF, Inc.'s training package covers many more areas necessary to keep your winnings, to keep your head cool, to know how and where to invest - the package will cover everything necessary for a big money winner to stay as the winner.
Big winners share lessons,
risks of Powerball winners
- COLUMBIA, Mo. (AP) — So you just won the $500 million Powerball jackpot, the second highest in lottery history. Now what?
Past winners of mega-lottery drawings and financial planners have some more sound advice: Stick to a budget, invest wisely, learn to say no and be prepared to lose friends while riding an emotional roller-coaster of joy, anxiety, guilt and distrust.
"I had to adapt to this new life, "said Sandra Hayes, 52, a former child services social worker who split a $224 million Powerball jackpot with a dozen co-workers in 2006, collecting a lump sum she said was in excess of $6 million after taxes. "I had to endure the greed and the need that people have, trying to get you to release your money to them. That caused a lot of emotional pain. These are people who you've loved deep down, and they're turning into vampires trying to suck the life out of me."
The single mother kept her job with the state of Missouri for another month and immediately used her winnings to pay off an estimated $100,000 in student loans and a $70,000 mortgage. She spent a week in Hawaii and bought a new Lexus, but six years later still shops at discount stores and lives on a fixed income — albeit, at a higher monthly allowance than when she brought home paychecks of less than $500 a week.
"I know a lot of people who won the lottery and are broke today," she said. "If you're not disciplined, you will go broke. I don't care how much money you won, had and have now. Without discipline you will lose all you have." STAF, Inc.'s service line helps in all these matters. Apply the information and you will be wealthy as long you live.
Lottery agencies are keen to show off beaming prize-winners hugging oversize checks at celebratory news conferences, but the tales of big lottery winners who wind up in financial ruin, despair or both are increasingly common.
There's the two-time New Jersey lottery winner who squandered her $5.4 million fortune. A West Virginia man who won $315 million a decade ago on Christmas later said the windfall was to blame for his granddaughter's fatal drug overdose, his divorce, hundreds of lawsuits and an absence of true friends.
The National Endowment for Financial Education cautions those who receive a financial windfall — whether from lottery winnings, divorce settlements, cashed-out stock options or family inheritances — to plan for their psychological needs as well as their financial strategies. The Denver-based nonprofit estimates that as many as 70 percent of people who land sudden windfalls lose that money within several years. STAF, Inc. advice systems covers all these topics and guides to be a rel winner = to stay wealthy for the rest of your life without any life-destroying troubles.
"Being able to manage your emotions before you do anything sudden is one of the biggest things," said endowment spokesman Paul Golden. "If you've never had the comfort of financial security before, if you were really eking out a living from paycheck to paycheck, if you've never managed money before, it can be really confusing. There's this false belief that no matter what you do, you're never going to worry about money again."
David Gehle, who spent 20 years at a Nebraska meatpacking plant before he and seven ConAgra Foods co-workers won a $365 million Powerball jackpot in 2006, used some of his winnings to visit Australia, New Guinea and Vietnam. He left ConAgra three weeks after he won, and now spends his time woodworking and playing racquetball, tennis and golf.
But most of his winnings are invested, and the 59-year-old still lives in his native Lincoln. He waited for several years before buying a $450,000 home in a tidy neighborhood on the southern edge of town.
"My roots are in Nebraska, and I'm not all that much different now than I was before," Gehle said. "I'm pretty normal. I never was the kind of guy who went for big, expensive cars or anything like that. I just want something that runs."
In the first year after he won, Michael Terpstra would awaken many nights in a panic. Had he slept in? Was he late to work the night shift?
"At times I'd wake up and this would all seem like a dream," the 54-year-old said. "I'd have to walk around the house and tell myself, I did win. I'm not working anymore, and I do live here. I didn't get drunk, break into someone's house and go to sleep. This is where I'm supposed to be."
His new home is a roomy, two-story house in south Lincoln with a big-screen television and paintings of Jesus on the walls. He no longer uses alarm clocks and spends his days taking his 92-pound black lab, Rocco, on walks.
He was terrified when he first won, convinced that he would lose all of the money and have to return to work. So he lives carefully off the interest from conservative investments, with help from accountants and lawyers. He bought the new house and a truck, but struggles to name any extravagant purchases.
"I can't buy a super yacht. I can't buy a Gulfstream," he said. "Then again, I don't think I'd use either one, so why would I buy one?"
That said, some mega-winners still can't resist the lure of big jackpots, at least not the two-buck chances. On Tuesday, former ConAgra worker Dung Tran, a Vietnamese immigrant, walked into the same Lincoln U-Stop where he purchased the winning ticket six years ago and bought 22 more from the very employee who sold him the first prize-winner, said cashier Janice Mitzner.
"We joked about it," she said. "I told him, 'Wouldn't it be something if you won again?'"
Hayes is also hoping to strike rich again — she bought 10 tickets at a Dirt Cheap liquor store on her way home Tuesday while speaking with an Associated Press reporter. Unlike many big winners, she has kept a visible public profile instead of going underground, appearing on a 2007 reality TV show ("Million Dollar Christmas"), writing an online Life After the Lottery blog and self-publishing a short book, "How Winning the Lottery Changed My Life."
"When somebody wins big - in hundreds of millions, God bless them," she said. "They're going to need those blessings."
This article is for your private use, only
________________________________________
Article # 3 of 7
"How to keep your head cool, keep the Big Money Windfalls & stay as a multimillionaire for the rest of your life"
On the lighter side of the lottery winnings - the following article is from New York
if you believe in lightning striking twice
Recent New York City Lottery Winning Locations
2012
You might think again if you believe that getting your hands on a winning lottery ticket in New York City is all about having good luck. Of course, the luck of the draw has a lot to do with it, but finding a location that regularly sells big-money tickets could help you score a big win if you believe in lightning striking twice.
For instance, Empire Wine & Liquor Depot, located at 77C Richmond Hill Road in Staten Island, had a $86 million Mega Millions winner on July 3, 2012. Staten Island also produced a million-dollar winner on August 1, as a $1 million Powerball jackpot was won from the Hylan Family location on 2270 Hylan Blvd.
There are several New York City locations that (Click green: have a rich recent history of selling winning
(Click green: New York Lottery tickets, so your best bet may be to check out one of the following locations:
The Bronx
In the past 12 months, several Bronx locations produced New York lottery winners. Bronx New Way Corp., located on 111 East Kingsbridge Road, had a $5,000 winner on June 3, and Bartow Food Mart (1945 Bartow Ave.) had a $5,000 Win-4 winner on October 10. Just a few miles from the aforementioned locations, the Mobile station at 688 East Gunhill Road also produced a $5,000 Win-4 winner.
Upper East Side
Many New York City residents on the Upper East Side found success of late at their local convenience shops, as Thomas Newsstand II (1000 10th Ave.) had a $5,000 Win-4 winner on August 24, and Jasmine News #1 (185 Madison Ave.) produced a $2,500 New York lottery winner on July 28.
SoHo
SoHo had several big-money winners this year, including a $2,500 winning ticket on September 17 that came from New York SoHo Market (213 Sixth Ave.). Also in the SoHo area of New York City, Yankee Deli (647 11th St.) had a $2,500 Win-4 winner on October 29.
Source:
Eric Holden, a New York resident, is an avid New York Lottery player. He spends approximately $20 a week on lotto tickets.
This article is for your private use, only
Above referred to National Endowment for Financial Education - Wikipedia link below - search website for further links to that organization.
Save The American Family - STAF, Inc.'s website: www.staf1org.weebly.com (you are in that website now)
National Endowment for Financial Education - Wikipedia, the free ...en.wikipedia.org/wiki/National_Endowment_for_Financial_Education
The National Endowment for Financial Education (NEFE) is a private, non-profit foundation in the United States the purpose of which is to improve knowledge ...
_____________________________________________________________
Article # 4 of 7
"How to keep your head cool, keep the Big Money Windfalls & stay as a multimillionaire for the rest of your life"
Powerball Record: $587 million dollars
Winning Tickets Sold in 2 States for 2 Winners
Arizona and Missouri
See the report below
The Missouri winner couple - how are they doing 3 months later
- the report next below after this article
numbered as Article # 7 of 7
November 28/12/
Missouri Lottery official Susan Goedde confirmed to ABC News on Thursday, 11/29/12, that one of the winning tickets was purchased at a Trex Mart in Dearbord, Mo. The holder of the ticket has not come forward.
"If you buy Powerball tickets at this location, please find them and check them closely," said May Scheve Reardon, executive director of the Missouri Lottery in a statement.
"If you find you're holding the winning ticket, be sure you sign the back and put it in a safe place until you can take it to a Missouri Lottery office. You will also want to get some legal and financial advice before you claim."
The winning Arizona ticket was purchased at a Four Sons Food Store in Fountain Hills, Ariz., and was part of a $10 Quick Pick ticket, officials announced this afternoon. Arizona lottery officials said they had no information on that state's winner or winners.
The winning numbers for the jackpot were 5, 23, 16, 22 and 29. The Powerball was 6.
The jackpot swelled to $587.5 million, according to Lottery official Sue Dooley. The two winners will split the jackpot each getting $293.75 million. The cash payout is $192.5 million each.
An additional 8,924,123 players won smaller prizes, according to Powerball's website.
"There were 58 winners of $1 million and there were eight winners of $2 million. So a total of $74 million," said Chuck Strutt, Director of the Multi-State Lottery Association.
In Photos: click: Biggest Lotto Jackpot Winners
This is the 27th win for Missouri, ranking it second in the nation for lottery winners after Indiana, which has 38 wins. Arizona has had 10 Powerball jackpot wins in its history.
Players bought tickets at the rate of 131,000 every minute up until an hour before the deadline of 11 p.m. ET, according to lottery officials.
The jackpot had already rolled over 16 consecutive times without a winner. That fact, plus the doubling in price of a Powerball ticket, accounted for the unprecedented richness of the pot.
"Back in January, we moved Powerball from being a $1 game to $2," said Mary Neubauer, a spokeswoman at the game's headquarters in Iowa. "We thought at the time that this would mean bigger and faster-growing jackpots."
That proved true. The total, she said, began taking "huge jumps -- another $100 million since Saturday." It then jumped another $50 million.
The biggest Powerball pot on record until now -- $365 million -- was won in 2006 by eight Lincoln, Neb., co-workers. As the latest pot swelled, lottery officials said they began getting phone calls from all around the world.
"When it gets this big," said Neubauer, "we get inquiries from Canada and Europe from people wanting to know if they can buy a ticket. They ask if they can FedEx us the money."
The answer she has to give them, she said, is: "Sorry, no. You have to buy a ticket in a member state from a licensed retail location."
About 80 percent of players don't choose their own Powerball number, opting instead for a computer-generated one. Asked if there's anything a player can do to improve his or her odds of winning, Neubauer said there isn't -- apart from buying a ticket, of course.
Article # 5 of 7 The Odds of Winning
Lottery officials put
(1) the odds of winning this record Powerball pot at one in 175 million,
(2) meaning you'd have been 25 times more likely to win an Academy Award.
Skip Garibaldi, a professor of mathematics at Emory University in Atlanta,
provided additional perspective:
(3) You are three times more likely to die from a falling coconut, he said;
(4) seven times more likely to die from fireworks, "and
(5) way more likely to die from flesh-eating bacteria" (115 fatalities a year)
than you are to win the Powerball lottery
Segueing, then, from death to life, Garibaldi noted that even the best physicians, equipped with the most up-to-date equipment, can't predict the timing of a child's birth with much accuracy.
"But let's suppose," he said, "that your doctor managed to predict the day, the hour, the minute and the second your baby would be born." The doctor's uncanny prediction would be "at least 100 times" more likely than your winning.
Even though he knows the odds all too well, Garibaldi said he usually plays the lottery.
When it gets this big, I'll buy a couple of tickets," he said. "It's kind of exciting. You get this feeling of anticipation. You get to think about the fantasy."
So, did he buy two tickets this time?
"I couldn't," he told ABC News. "I'm in California" -- one of eight states that doesn't offer Powerball.
In case you were wondering, the next Saturday's Powerball jackpot is starting at $40 million.
ABC News Radio contributed to this report.
Click green above for further info
This article is for your private use, only
________________________________________________
"How to keep your head cool, keep the Big Money Windfalls & stay as a multimillionaire for the rest of your life"
Powerball Record: $587 million dollars
Winning Tickets Sold in 2 States for 2 Winners
Arizona and Missouri
See the report below
The Missouri winner couple - how are they doing 3 months later
- the report next below after this article
numbered as Article # 7 of 7
November 28/12/
Missouri Lottery official Susan Goedde confirmed to ABC News on Thursday, 11/29/12, that one of the winning tickets was purchased at a Trex Mart in Dearbord, Mo. The holder of the ticket has not come forward.
"If you buy Powerball tickets at this location, please find them and check them closely," said May Scheve Reardon, executive director of the Missouri Lottery in a statement.
"If you find you're holding the winning ticket, be sure you sign the back and put it in a safe place until you can take it to a Missouri Lottery office. You will also want to get some legal and financial advice before you claim."
The winning Arizona ticket was purchased at a Four Sons Food Store in Fountain Hills, Ariz., and was part of a $10 Quick Pick ticket, officials announced this afternoon. Arizona lottery officials said they had no information on that state's winner or winners.
The winning numbers for the jackpot were 5, 23, 16, 22 and 29. The Powerball was 6.
The jackpot swelled to $587.5 million, according to Lottery official Sue Dooley. The two winners will split the jackpot each getting $293.75 million. The cash payout is $192.5 million each.
An additional 8,924,123 players won smaller prizes, according to Powerball's website.
"There were 58 winners of $1 million and there were eight winners of $2 million. So a total of $74 million," said Chuck Strutt, Director of the Multi-State Lottery Association.
In Photos: click: Biggest Lotto Jackpot Winners
This is the 27th win for Missouri, ranking it second in the nation for lottery winners after Indiana, which has 38 wins. Arizona has had 10 Powerball jackpot wins in its history.
Players bought tickets at the rate of 131,000 every minute up until an hour before the deadline of 11 p.m. ET, according to lottery officials.
The jackpot had already rolled over 16 consecutive times without a winner. That fact, plus the doubling in price of a Powerball ticket, accounted for the unprecedented richness of the pot.
"Back in January, we moved Powerball from being a $1 game to $2," said Mary Neubauer, a spokeswoman at the game's headquarters in Iowa. "We thought at the time that this would mean bigger and faster-growing jackpots."
That proved true. The total, she said, began taking "huge jumps -- another $100 million since Saturday." It then jumped another $50 million.
The biggest Powerball pot on record until now -- $365 million -- was won in 2006 by eight Lincoln, Neb., co-workers. As the latest pot swelled, lottery officials said they began getting phone calls from all around the world.
"When it gets this big," said Neubauer, "we get inquiries from Canada and Europe from people wanting to know if they can buy a ticket. They ask if they can FedEx us the money."
The answer she has to give them, she said, is: "Sorry, no. You have to buy a ticket in a member state from a licensed retail location."
About 80 percent of players don't choose their own Powerball number, opting instead for a computer-generated one. Asked if there's anything a player can do to improve his or her odds of winning, Neubauer said there isn't -- apart from buying a ticket, of course.
Article # 5 of 7 The Odds of Winning
Lottery officials put
(1) the odds of winning this record Powerball pot at one in 175 million,
(2) meaning you'd have been 25 times more likely to win an Academy Award.
Skip Garibaldi, a professor of mathematics at Emory University in Atlanta,
provided additional perspective:
(3) You are three times more likely to die from a falling coconut, he said;
(4) seven times more likely to die from fireworks, "and
(5) way more likely to die from flesh-eating bacteria" (115 fatalities a year)
than you are to win the Powerball lottery
Segueing, then, from death to life, Garibaldi noted that even the best physicians, equipped with the most up-to-date equipment, can't predict the timing of a child's birth with much accuracy.
"But let's suppose," he said, "that your doctor managed to predict the day, the hour, the minute and the second your baby would be born." The doctor's uncanny prediction would be "at least 100 times" more likely than your winning.
Even though he knows the odds all too well, Garibaldi said he usually plays the lottery.
When it gets this big, I'll buy a couple of tickets," he said. "It's kind of exciting. You get this feeling of anticipation. You get to think about the fantasy."
So, did he buy two tickets this time?
"I couldn't," he told ABC News. "I'm in California" -- one of eight states that doesn't offer Powerball.
In case you were wondering, the next Saturday's Powerball jackpot is starting at $40 million.
ABC News Radio contributed to this report.
Click green above for further info
This article is for your private use, only
________________________________________________
Article # 6 of 7
Chicago lottery winner's death ruled a homicide
He won the lottery, but he was poisoned before cashing the check
Click above the green title line
CHICAGO (AP) — With no signs of trauma and nothing to raise suspicions, the sudden death of a Chicago man a day after he collected a large pile of lottery winnings was initially ruled a result of natural causes.
Nearly six months later, authorities have a mystery on their hands after medical examiners, responding to a relative's pleas, did an expanded screening and determined that Urooj Khan, 46, died shortly after ingesting a lethal dose of cyanide. The finding has triggered a homicide investigation, theChicago Police Department said.
"It's pretty unusual," said Cook County Medical Examiner Stephen Cina, commenting on the rarity of cyanide poisonings. "I've had one, maybe two cases out of 4,500 autopsies I've done."
In June, Khan, who owned a number of dry cleaners, stopped in at a 7-Eleven near his home in the West Rogers Park neighborhood on the city's North Side and bought a ticket for an instant lottery game.
He scratched off the ticket, then jumped up and down and repeatedly shouted, "I hit a million," Khan recalled days later during a ceremony in which Illinois Lottery officials presented him with an oversized check. He said he was so overjoyed he ran back into the store and tipped the clerk $100.
"Winning the lottery means everything to me," he said at the June 26 ceremony, also attended by his wife, Shabana Ansari; their daughter, Jasmeen Khan; and several friends. He said he would put some of his winnings into his businesses and donate some to a children's hospital.
Khan opted to take his winnings in a lump sum of just over $600,000. After taxes, the check, issued July 19 from the state Comptroller's Office, was about $425,000, said lottery spokesman Mike Lang.
Khan died a day later.
No signs of trauma were found during an external exam and no autopsy was done because, at the time, the Cook County Medical Examiner's Office didn't automatically perform them on those 45 and older unless the death was suspicious, Cina said. The cut-off has since been raised to age 50.
A basic toxicology screening for opiates, cocaine and carbon monoxide came back negative, and the death was ruled a result of the narrowing and hardening of coronary arteries.
But a relative came forward and asked authorities to look into the case further, Cina said. He refused to identify the relative.
"She (the morgue worker) then reopened the case and did more expansive toxicology, including all the major drugs of use, all the common prescription drugs and also included I believe strychnine and cyanide in there just in case something came up," Cina said. "And in fact cyanide came up in this case."
Chicago Police Department spokeswoman Melissa Stratton confirmed the department was now investigating the death and said detectives were working closely with the Medical Examiner's Office.
Source: AP
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Chicago lottery winner's death ruled a homicide
He won the lottery, but he was poisoned before cashing the check
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CHICAGO (AP) — With no signs of trauma and nothing to raise suspicions, the sudden death of a Chicago man a day after he collected a large pile of lottery winnings was initially ruled a result of natural causes.
Nearly six months later, authorities have a mystery on their hands after medical examiners, responding to a relative's pleas, did an expanded screening and determined that Urooj Khan, 46, died shortly after ingesting a lethal dose of cyanide. The finding has triggered a homicide investigation, theChicago Police Department said.
"It's pretty unusual," said Cook County Medical Examiner Stephen Cina, commenting on the rarity of cyanide poisonings. "I've had one, maybe two cases out of 4,500 autopsies I've done."
In June, Khan, who owned a number of dry cleaners, stopped in at a 7-Eleven near his home in the West Rogers Park neighborhood on the city's North Side and bought a ticket for an instant lottery game.
He scratched off the ticket, then jumped up and down and repeatedly shouted, "I hit a million," Khan recalled days later during a ceremony in which Illinois Lottery officials presented him with an oversized check. He said he was so overjoyed he ran back into the store and tipped the clerk $100.
"Winning the lottery means everything to me," he said at the June 26 ceremony, also attended by his wife, Shabana Ansari; their daughter, Jasmeen Khan; and several friends. He said he would put some of his winnings into his businesses and donate some to a children's hospital.
Khan opted to take his winnings in a lump sum of just over $600,000. After taxes, the check, issued July 19 from the state Comptroller's Office, was about $425,000, said lottery spokesman Mike Lang.
Khan died a day later.
No signs of trauma were found during an external exam and no autopsy was done because, at the time, the Cook County Medical Examiner's Office didn't automatically perform them on those 45 and older unless the death was suspicious, Cina said. The cut-off has since been raised to age 50.
A basic toxicology screening for opiates, cocaine and carbon monoxide came back negative, and the death was ruled a result of the narrowing and hardening of coronary arteries.
But a relative came forward and asked authorities to look into the case further, Cina said. He refused to identify the relative.
"She (the morgue worker) then reopened the case and did more expansive toxicology, including all the major drugs of use, all the common prescription drugs and also included I believe strychnine and cyanide in there just in case something came up," Cina said. "And in fact cyanide came up in this case."
Chicago Police Department spokeswoman Melissa Stratton confirmed the department was now investigating the death and said detectives were working closely with the Medical Examiner's Office.
Source: AP
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Article # 7 of 7
Missouri Powerball winners live modestly,
give back to hometown
Feb 23, 2013 (Reuters) - Three months after winning half of the biggest Powerball lottery jackpot in U.S. history, $587 million, Mark Hill still meets friends for morning coffee at a local convenience store.
And that Camaro sports car Hill considered buying with his winnings? He got a pick-up truck instead.
While some lottery winners fritter away their fortunes or meet tragic ends, not much has outwardly changed for Mark and Cindy Hill since they won half of a $587 million Powerball jackpot in November 2012. They netted $136.5 million in a lump-sum payment after taxes.
"They are very conservative people," said Walt Stubbs, a friend and former high school classmate of the Hills. "They are doing some really nice things for the community and they've taken care of their family."
The Hills are giving money to civic projects in Mark Hill's hometown of Camden Point, Missouri, and still live in nearby Dearborn, Missouri, as they did before winning the jackpot.
The Hills will pay for a new Camden Point fire station and ball field and gave the town more than $50,000 to buy land for a new sewage treatment plant that will eventually allow residents to give up individual septic tanks, Mayor Kevin Boydston said.
"I've said all along that these lottery winnings could not have gone to a better couple," Boydston said. "They are giving back to the community, just like they said they would."
Camden Point has fewer than 500 residents and is wedged into hills in a rural area about 30 miles north of Kansas City. Its downtown has a series of mostly empty brick buildings.
Stubbs, chief of the area's volunteer fire department, said the new station is planned to connect directly to main roads, a major improvement on the current fire hall, which does not have quick access to highways.
"It's a situation where if we had to do it ourselves, it would take 25 years," Stubbs said.
The winning couple graduated from North Platte High School in Dearborn and have donated to a scholarship fund at that school.
The Hills, in their early 50s, told reporters at a news conference after winning the lottery they would stay in the area and give a lot of the money away. Mark Hill quit his job as a mechanic. Cindy Hill was out of work at the time.
"I'm real proud of them," said Shirley Hill, Mark Hill's mother. "They have stayed grounded. That's their nature."
WINNING CAN BE A BURDEN
History is replete with lottery winners whose lives have gone sour after becoming rich.
The National Endowment for Financial Education cites research estimating that 70 percent of people who suddenly receive a large sum of money will lose it within a few years.
In 2002, Jack Whittaker - already a millionaire - won $315 million in a lottery in West Virginia. Just four years later he claimed to be broke. Whittaker gave away millions of dollars, but people also stole hundreds of thousands of dollars from him and he lost a granddaughter to a drug overdose.
Last year, Urooj Khan died just two months after winning $1 million in the Illinois lottery, from what initially appeared to be natural causes. Toxicology tests run at a relative's request found cyanide poisoning. Police are now investigating his death as a homicide.
Maintaining a stable life such as the Hills are attempting is difficult, said Don McNay, author of "Life Lessons from the Lottery" who has studied winners of big money for 30 years.
"They are beyond exception," McNay said.
Most ordinary people who come into large sums of money become victims of their own lack of financial savvy or discipline, McNay said. People also come under great pressure from friends, relatives and a host of others wanting money.
Missouri Lottery spokeswoman Susan Goedde said the vast majority of lottery winners from the state were "doing great" and if they were good money managers before, they would be after.
"Circumstances may change, they may not work any more and they have the freedom to travel," Goedde said. "But if they clipped coupons before winning the lottery, they will do it after winning."
__________________________________________
Missouri Powerball winners live modestly,
give back to hometown
Feb 23, 2013 (Reuters) - Three months after winning half of the biggest Powerball lottery jackpot in U.S. history, $587 million, Mark Hill still meets friends for morning coffee at a local convenience store.
And that Camaro sports car Hill considered buying with his winnings? He got a pick-up truck instead.
While some lottery winners fritter away their fortunes or meet tragic ends, not much has outwardly changed for Mark and Cindy Hill since they won half of a $587 million Powerball jackpot in November 2012. They netted $136.5 million in a lump-sum payment after taxes.
"They are very conservative people," said Walt Stubbs, a friend and former high school classmate of the Hills. "They are doing some really nice things for the community and they've taken care of their family."
The Hills are giving money to civic projects in Mark Hill's hometown of Camden Point, Missouri, and still live in nearby Dearborn, Missouri, as they did before winning the jackpot.
The Hills will pay for a new Camden Point fire station and ball field and gave the town more than $50,000 to buy land for a new sewage treatment plant that will eventually allow residents to give up individual septic tanks, Mayor Kevin Boydston said.
"I've said all along that these lottery winnings could not have gone to a better couple," Boydston said. "They are giving back to the community, just like they said they would."
Camden Point has fewer than 500 residents and is wedged into hills in a rural area about 30 miles north of Kansas City. Its downtown has a series of mostly empty brick buildings.
Stubbs, chief of the area's volunteer fire department, said the new station is planned to connect directly to main roads, a major improvement on the current fire hall, which does not have quick access to highways.
"It's a situation where if we had to do it ourselves, it would take 25 years," Stubbs said.
The winning couple graduated from North Platte High School in Dearborn and have donated to a scholarship fund at that school.
The Hills, in their early 50s, told reporters at a news conference after winning the lottery they would stay in the area and give a lot of the money away. Mark Hill quit his job as a mechanic. Cindy Hill was out of work at the time.
"I'm real proud of them," said Shirley Hill, Mark Hill's mother. "They have stayed grounded. That's their nature."
WINNING CAN BE A BURDEN
History is replete with lottery winners whose lives have gone sour after becoming rich.
The National Endowment for Financial Education cites research estimating that 70 percent of people who suddenly receive a large sum of money will lose it within a few years.
In 2002, Jack Whittaker - already a millionaire - won $315 million in a lottery in West Virginia. Just four years later he claimed to be broke. Whittaker gave away millions of dollars, but people also stole hundreds of thousands of dollars from him and he lost a granddaughter to a drug overdose.
Last year, Urooj Khan died just two months after winning $1 million in the Illinois lottery, from what initially appeared to be natural causes. Toxicology tests run at a relative's request found cyanide poisoning. Police are now investigating his death as a homicide.
Maintaining a stable life such as the Hills are attempting is difficult, said Don McNay, author of "Life Lessons from the Lottery" who has studied winners of big money for 30 years.
"They are beyond exception," McNay said.
Most ordinary people who come into large sums of money become victims of their own lack of financial savvy or discipline, McNay said. People also come under great pressure from friends, relatives and a host of others wanting money.
Missouri Lottery spokeswoman Susan Goedde said the vast majority of lottery winners from the state were "doing great" and if they were good money managers before, they would be after.
"Circumstances may change, they may not work any more and they have the freedom to travel," Goedde said. "But if they clipped coupons before winning the lottery, they will do it after winning."
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Careers For People Who Like To Work Alone
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If you're a loner looking for a career that suits your personality, consider one of these options.By Amy Chang
Does your idea of a perfect workday include more alone time and less interaction with clients and co-workers?
You aren't alone in preferring a more solo-based career.
In fact, "a significant portion of our working population prefers to work alone," says Pamela Slim, a business coach and author of "Escape From Cubicle Nation: From Corporate Prisoner to Thriving Entrepreneur."
Ready to find the right career fit for your loner personality? Check out these six options that could offer the alone time you desire.
Career #1 - Accountant (click green)
Think you'd prefer to spend more quality time with a calculator versus colleagues? Perhaps you should consider pursuing a career as an accountant.
According to the U.S. Department of Labor, accountants are often responsible for computing taxes, preparing tax returns, examining financial records, and improving profits.
Why it's fit for a loner: "Depending on the type of accounting, most of the work in this field is done independently," says Dani Babb, founder of the Babb Group, an online educational consulting firm.
In fact, "often accountants are left to crunch numbers or generate reports on their own, with independent deliverables that often are not team-based," says Babb.
(click green) Click to Find the Right Accounting Program School
Education options: Does this career sound like a good match for your solitary personality? Know this: Most accountants are required to have a bachelor's degree in accounting or a related field, according to the Department of Labor. Some employers prefer to hire candidates with a master's in accounting or business administration with an accounting concentration, adds the Department.
Career #2 - Software Developer (click green)
If you are a loner who enjoys spending one-on-one time with your computer, a career as a software developer may be a good fit for you.
Software developers are the geniuses designing computer programs and developing applications and systems that run on computers and other types of devices, according to the U.S. Department of Labor. Typical duties include designing and testing software to meet the needs of users and upgrading and performing software maintenance.
Why it's fit for a loner: According to Babb, "once code or development assignments are made, each programmer usually works independently on his or her component."
But developers won't always be alone. In fact, "software developers that work in companies often work with a team of developers," adds Babb.
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Education options: Think that this career fits your loner personality? According to the Department of Labor, software developers usually have a bachelor's degree in computer science, software engineering, or a related field. But for some positions, employers may prefer candidates with a master's degree.
Career #3 - Paralegal (click green)
Do you have an interest in the law and enjoy doing research on your own? Perhaps you should consider pursuing a career as a paralegal.
According to the U.S. Department of Labor, paralegals generally provide support to lawyers on a variety of tasks, including writing reports to help them prepare for trials, conducting research on laws and regulations, and updating case-related information in computer databases.
Why it's fit for a loner: "Much of what a paralegal does is researching and writing," says Babb. "While they may need to meet with clients or attorneys, documents and other filings paralegals create are usually done on their own."
Click to Find the Right Paralegal Studies Program.
Education options: Think this career might complement your desire to work independently?According to the Department of Labor, most paralegals have an associate's degree in paralegal studies. Or if you already have a bachelor's degree in another field, you could earn a certificate in paralegal studies.
Career #4 - Graphic Designer (click green)
Think you'd prefer spending more time interacting with images on your computer rather than collaborating with co-workers in an office? If so, a career as a graphic designer could be a good choice for you.
By creating visual concepts with computer software or by hand, graphic designers generally communicate ideas that enlighten or inspire consumers, according to the U.S. Department of Labor. With this combination of art and technology, they can develop graphics for logos and websites or create images for a product.
Why it's fit for a loner: According to Babb, "once the creative work begins, this is often a solo job."
But even if most of a graphic designer's work can be done independently from a home or office computer, keep in mind that a designer may face some interaction with clients. "Graphics designers need clients to survive, so they will be working with clients," notes Babb.
Click to Find the Right Graphic Design Program.
Education options: If you want to sharpen your artistic skills and pursue this career, keep in mind that a bachelor's degree in graphic design or a related field is usually required, according to the Department of Labor. Already have a bachelor's? Look into technical training in graphic design to qualify for most job requirements, says the Department.
Career #5 - Medical Records and Health Information Technician (click green)
Want to work in the health field but prefer a more behind-the-scenes position? A career as a medical records and health information technician could complement your desire to work alone.
How? As a medical records and health information technician, you could be responsible for organizing and maintaining data for clinical databases, reviewing patient records, and recording data electronically, according to the U.S. Department of Labor.
Why it's fit for a loner: "In many cases, medical records technicians are sitting in their offices or cubicles helping to organize and manage the vast amounts of information that is sent through health information systems," says Babb.
Just keep in mind that while these technicians will almost always work solo, they still have to be part of a larger team for bigger providers, adds Babb.
Click to Find the Right Health Information Technology Program School
Education options: Does this career offer the alone time you desire? According to the Department of Labor, medical records and health information technicians typically need a post-secondary certificate or an associate's degree in health information technology. In addition, most employers like to hire technicians with professional certification, such as Registered Health Information Technician (RHIT).
Career #6 - Computer Programmer (click title)
Looking for a tech-related career with plenty of alone time? A career as a computer programmer might be a good choice.
According to the U.S. Department of Labor, as a computer programmer you could write instructions (or code) that a computer can follow to perform specific tasks. Common duties include debugging programs, writing programs in different languages like Java or C++, and updating existing computer programs.
Why it's a good fit for a loner: Since writing code can be done anywhere, chances are a programmer might be able to work from home, notes the Department of Labor.
Just keep in mind that while a majority of a programmer's tasks can be done solo, programmers can't completely shut out the world. "Computer programmers need to be able to work on initiatives with other team members, but are most often free to code solo," says Babb.
Click to Find the Right Computer Science Program School
Education options: Want to get in on this loner- and tech-friendly career? According to the Department, most programmers earn a degree in computer science or a related field. And while a majority of programmers have a bachelor's degree, an associate's degree could be sufficient for some employers, adds the Department.
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Degrees That Are Great For Adult Students
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Find out how learning can be ageless, especially when it comes to these degrees.
It's never too late to learn something new. And for older adults looking for a change, going back to school may be a smart decision.
Why? Because "a return to school keeps older workers up-to-date and relevant," says Debra Davenport, founder and executive director of The Davenport Institute, a certified firm that advises on career and lifestyle changes.
In fact, community colleges are now creating or expanding campus programs to engage the 50 plus population in learning, training, or re-training. This is in large part thanks to the Plus 50 Initiative, a program created in 2008 by the American Association of Community Colleges.
And it makes sense that community colleges are targeting older students, with the number of students age 35 or older projected to grow 22 percent between 2008 and 2019, according to the National Center for Education Statistics.
What's driving older students back to school? "Many of the [older] students returning to community colleges are seeking skill updating," says Mary Sue Vickers, director of the Plus 50 Initiative.
Click to Find the Right Degree Program.
Vickers adds that older students may return because they've discovered they need to work longer given the recent recession, they lost a job, or they want to finish a degree program to remain competitive in the workplace.
But for older students, the hardest part about going back to school may be deciding what degree to pursue. However, Davenport says that popular career choices among her older clients include psychology, counseling, social work, nursing, consulting, coaching, and teaching, among many others.
So, if you're an older student who's contemplating a career change, consider these age-defying degrees:
Age-Defying Degree #1 - Business Administration (click title)
Worried you're not being seen as a valued worker? The Plus 50 Initiative's "Year One Evaluation Report" notes that a degree in business administration helps older students build his or her "human capital," or value in the workforce.
Common coursework in a business degree may include accounting, economics, business ethics and law, human resource management, and international management, among others, according to the College Board, an organization that administers academic aptitude tests.
Click to Find the Right Business Administration Program School
Related Career Paths: A bachelor's in business administration degree may lead to a career as a financial analyst, health care administrator, and human resources specialist, among others, according to the U.S. Department of Labor.
Age-Defying Degree #2 - Accounting (click title)
The numbers don't lie. Four of the eight initial participating community colleges in the Plus 50 Initiative had accounting included in their workforce programming.
Why the popularity? It might have something to the do with the fact that an accounting degree could teach older students how to prepare tax filings, evaluate a company's efficiency and profitability, and create and analyze balance sheets, notes the College Board.
Click to Find the Right Accounting Program.
Related Career Paths: An associate's degree in accounting could help older students prepare to pursue a career as a bookkeeping, accounting, or auditing clerk, according to the U.S. Department of Labor. A bachelor's degree in the field could prep students to pursue a career as an accountant, budget analyst, and more.
Age-Defying Degree #3 - Computer Science and Technology (click title)
It's never too late to learn new technologies. Of the Plus 50 Initiative's eight initial community colleges, five offered programs in the computer science and technology field.
With the growth of new technologies, from the iPad to Global Position System (GPS), it's no surprise that students - including older students - want to learn more about computer science and technology. And luckily, an IT degree often teaches students about web development, digital communication, and computer systems and architecture.
Click to Find the Right Computer Science and Technology Program
Related Career Paths: Computer programmer, computer systems analyst, and database administrator are just some of the careers you could prep to pursue with a bachelor's degree in computer science, notes the U.S. Department of Labor. In some cases, an associate's or master's degree in the field might be preferred.
Age-Defying Degree #4 - Psychology (click title)
Davenport says that older students are often drawn towards career changes in the psychology field. If you fall into this group, you might want to consider earning a degree in psychology, which could help you better understand and counsel people, among other things.
In fact, the College Board notes that "psychology majors study the way humans and animals act, feel, think, and learn," with help from commonly offered courses that include personality, social psychology, and abnormal psychology.
Click to Find the Right Psychology Program.
Related Career Paths: Depending on the degree level you pursue, a psychology degree could put you on a variety of career paths. For example, a bachelor's in psychology could help you prep to pursue a career as a social worker, while a master's in psychology could provide you with the skills to pursue a career as a school or career psychologist, according to the U.S. Department of Labor. You can be a private counselor in your own office.
Age-Defying Degree #5 - Pharmacy Technology (click title)
If you're an older worker who's concerned about the competition for jobs, consider earning a degree with potential to lead to a career with a high demand for employees. One such degree is pharmacy technology - and it's also a part of the programs offered by the Plus 50 Initiative.
In this degree field, students could study common topics like pharmacologic terms, drug identification, lab procedures, patient education, testing techniques, and more, according to the College Board.
Click to Find the Right Pharmacy Technology Program.
Related Career Paths: A certificate in pharmacy technology could help you prepare to pursue a career as a pharmacy technician, a field that is projected to have a 32 percent job growth between 2010 and 2020, according to the U.S. Department of Labor.
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Click the green title:
Flexible Degrees You Can Earn From Home »
With online education you can work on your degree on your schedule.
Is the thought of four years of college holding you back from pursuing a degree that could help in your pursuit of a satisfying and stable career?
Have you considered earning an online associate's degree which could take as little as two years instead?
Online degrees are a great option for busy individuals who need a flexible learning situation, says Velvet Miscione, a counselor at Coastline Community College in California. "It takes the classroom to the student," adds Miscione.
Think online education might be for you? Check out these five online associate's degree options.
Degree #1 - Associate's in Paralegal Studies (click title)
If you've always wanted to earn a legal degree but find the idea of spending years in classroom legal debates equivalent to a prison sentence, you might be better suited for an online associate's degree in paralegal studies.
In this online program, you'll likely study how to do much of the same work a lawyer does, from preparing legal arguments to drafting legal documents. It's a convenient option that could help prepare you to enter the paralegal job market.
Click to Find the Right Online Paralegal Studies Program Now
Paralegals seem a satisfied group, too, at least according to a 2011 CNN Money Best Jobs in America report. Using research from Money Magazine and Salary.com, the report ranked paralegals as the 14th best job based on the criteria of total compensation, expected job growth, and personal fulfillment and challenge.
Degree #2 - Associate's in Information Technology (IT)
Talk about a degree just begging to be completed online. Using the very technology that you'll be studying, you could complete this online IT associate's degree in as little as two years.
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"IT is a great associate's degree now because there's such a demand for it," says Miscione. "The number of IT jobs has increased in the last five to 10 years, whereas a lot of other fields have declined."
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This program could also keep you up-to-date with the ever-changing technologies, with courses often focusing on how information and computing systems support business, research, and communications needs.
Degree #3 - Associate's in Accounting (click title)Are you itching to crunch some numbers but not crazy about four plus years commuting back and forth to school? An online associate's degree in accounting could be a good option for you. This flexible online degree option could be completed from the comfort of your own home, and in as little as two years.
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You're likely to study such things as accounting and bookkeeping, mostly, to prepare you to keep business's financial records in order.
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And you may have your choice of industries for job opportunities, according to the U.S. Department of Labor, which reports that accountants "work in nearly all industries and at all levels of government."
Degree #4 -Associate's in Health Care Administration (click title)
If you're interested in pursuing a career in health care, an online associate's degree in health care administration could be right for you. A potentially good option for busy professionals, this flexible online degree could be completed in as little as two years, and covers courses like anatomy, diagnostic procedures, and recordkeeping.
Click to Find the Right Online Health Care Administration Program Now.
According to the U.S. Department of Labor, "Healthcare will generate 3.2 million new wage and salary jobs between 2008 and 2018, more than any other industry." The report goes on to say that most of those workers have jobs that require less than four years of college.
Degree #5 - Associate's in Business Administration (click title)
Are you looking for a flexible way to expand your business skills? Whether you want to advance in your current position, or pursue a new career in the dynamic business sector, an online associate's in business administration can help you reach your professional goals.
Click to Find the Right Online Business Administration Program Now.
This degree is valuable because it is so versatile and convenient, says Miscione. Without having to quit your current job, you're likely to get a broad education that touches on such things as budgets, communication skills, and leadership. It's a degree that can apply to most any company or industry.
Next Article: The Eight Most Popular Online Degrees » (CLICK THE TITLE)
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Are you thinking of going to school online
and wondering which degree to choose?
Five Smart Online Degree Picks
Why drive all the way to a classroom when you can earn an online degree at home? Read on for five smart picks.
Do you want to go back to school to earn a degree but aren't sure you have the time? Does work or family obligations make it hard to attend class at a specific place and time? You're not alone.
That's why more and more students are signing up for online programs that let them "attend" class from wherever and whenever it's convenient for them.
In fact, it's estimated that 35 to 40 percent of college students over the age of 25 will be attending school online by 2014, according to "Hot Programs and Hot Markets," a 2009 study by Eduventures, a higher education research and consulting firm.
Click to Find the Right Online Program Now.
Think logging in for class at nine p.m. or on a cloudy Saturday could work for you? Check out these five degrees you can earn from virtually anywhere, on any schedule.
Online Degree #1: Master's in Business Administration (MBA)
Whether you're interested in switching jobs or advancing in your current career, online MBA programs can offer you the flexibility to advance your education while still maintaining your personal and professional lives.
Perhaps that's why MBA students topped online master's programs with an estimated 117,000 enrollees, according to the Eduventures study. That made up a full 26 percent of all MBA students.
With an online MBA, you could sharpen your business skills by taking courses like finance, marketing, and management - whenever and wherever it's convenient for you.
Click to Find the Right Online MBA Program Now.
Potential Careers and Average Salaries*
Online Degree #2: Bachelor's in Education
Do you enjoy helping people understand certain concepts and topics? You could be a great fit for a bachelor’s degree in education, which is designed to develop skills needed to pursue teaching opportunities.
Best of all, an online bachelor's in education can be completed right in your home, which a record number of people are discovering. In their study, Eduventures traced a 22 percent increase in enrollment for this online degree from fall 2008 to fall 2009, making it one of the leaders of online options.
Education majors study how people learn and the best ways to teach, so you might encounter topics like educational psychology, school safety and health, and creating lesson plans and classroom activities. And who knows, you might even opt to teach online yourself someday.
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Potential Careers and Average Salaries*
Online Degree #3: Bachelor's in Criminal Justice
You still watch "Cops" reruns, don't you? Come on, you can admit it. And yes, "NYPD Blue" was one of the best shows of all time. If you agree, a degree in criminal justice may be for you.
But don't worry, thanks to the abundant online options, you won't have to quit your current job to pursue your criminal justice education. In fact, according to the 2009 Eduventures study, of all the students enrolled in criminal justice bachelor's programs, 27 percent did it online.
Criminal justice is a fascinating major, too, with coursework on everything from the law and public administration to psychology and sociology. You'll likely study such topics as how to combat domestic terrorism, how to deal with drug abuse, what punishments are cruel and unusual, and more.
Oh, and you'll probably never see "Cops" or "NYPD Blue" the same way again.
Click to Find the Right Online Criminal Justice Program Now.
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Online Degree #4: Bachelor's in Psychology
If you've ever wondered why people do the things they do, studying psychology could help you better understand the inner workings of human behavior.
People who are fascinated with the complexities of human thought and behavior might love the coursework of a psychology degree, which concentrates on the way we act, feel, think, and learn.
With this flexible degree option, you could study how to help people with problems that range from emotional, to mental, to biological, and more, all from the comfort of your own home.
And earning a psychology degree online has never been more popular, with nearly 26,000 enrollees as of fall 2009, a growth rate of almost 20 percent from the year before, according to the Eduventures study.
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Potential Careers and Average Salaries*
Online Degree #5: Bachelor's in Computer and Information Technology
It's hard to imagine a degree more geared to online education than one in computer and information technology (commonly referred to as IT). Think about it: the second you click the mouse to log-in, you're practicing skills in your area of interest - before you even study.
When you do study, you'll concentrate on more than just those mysterious digital boxes we call computers. You'll likely focus on how information and computing systems support business, research, and communications, and might have the option to specialize in exciting areas such as web design, gaming, or digital communication.
This broad educational base could lead to a promising career in many fields, especially now that more and more companies depend on computers and technology.
Click to Find the Right Online Computer and IT Program Now.
Potential Careers and Average Salaries*
*All potential career and average salary information comes from the U.S. Department of Labor using 2010 salary data.
Next Article: Higher Education Goes High-Tech »Click green for further info
Eduventures, a Boston-based research firm, ranked the top eight online bachelor's degrees in terms of enrollment in 2009.
Keep reading to see why these degrees are so popular.
#1 Online Degree - Business (Click the title)
Enrollment for online business - sometimes called business administration - degrees topped all others in 2009, according to Eduventures. Perhaps that's because this program generally helps students hone the same computer skills that are used in the business world.
You're also likely to get a chance to broaden your business horizons beyond a single zip code, according to David Eby, associate vice president at Southern New Hampshire University.
"This learning without boundaries is especially relevant for someone seeking a career in the global business marketplace," Eby says.
Start Your Online Business Administration Education - Find the Right School Now
#2 Online Degree - Computer and Information Technology (IT) (Click the title)
Looking to get into an area like online computer support, cyber security, or network administration? Consider earning your IT degree online.
IT finished second among online bachelor's degrees in 2009 enrollment, according to Eduventures.
While some IT students may be more comfortable than most when learning in an online environment, there are also career-specific reasons that could be driving the demand for this particular online degree, according to Sam Govea, executive dean of distance learning at Brookhaven College in Texas.
"The need to remain knowledgeable in as many IT programming areas as possible equals job security and marketability to potential employers," says Govea. .
(Click) Start Your Online IT Education - Find the Right School Now
#3 Online Degree - Criminal Justice (click)
Good guys and bad guys alike use the internet. Guess what? Online criminal justice students do too, and they're doing it in increasingly large numbers.
"Most of the students in our CJ program are adults with families looking for a career change, and online classes provide an opportunity for them to work on this new degree according to their schedule," Govea says.
In addition to flexibility, these programs can potentially prepare you to pursue a wide variety of careers, according to Eby.
"From prevention to enforcement to the legal process to terrorism and homeland security the online classroom affords individuals the opportunity to learn from experts around the country..." he says.
Start Your Online Criminal Justice Education - Find the Right School Now
#4 Online Degree - Nursing (click title)
While nursing may not be the first online bachelor's degree that springs to mind, it finished fourth overall in terms of enrollment in 2009, according to Eduventures.
Ana Donaldson, co-author of "Engaging The Online Learner," says that online nursing programs are helping meet the industry's growing demand for a trained workforce.
"This is a group of individuals who traditionally enjoy working collaboratively" and they "often thrive in an online setting," Donaldson says.
At Brookhaven College in Texas, Govea says that nursing is the school's number one requested program.
Start Your Online Nursing Education - Find the Right School Now
#5 Online Degree - Education (click title)
Want to stay current in education? Studying online is just one of many technology-driven changes that are revolutionizing the field.
If you move into a teaching career, you'll likely want to incorporate your own online tools and technology into your courses, whether you are teaching online or inside a classroom. By getting your degree online, you could study different approaches and techniques to do this.
"The future of education needs to be anchored in the integration of technology to foster effective learning," says Donaldson. "Online educational opportunities are meeting the learning styles of today's students who we have failed with yesterday's teaching methods."
Start Your Online Education - Find the Right School Now
#6 Online Degree - Health Care (click title)
If you're looking for a career-focused degree that you can earn online, health care may be your pick.
Not only is this a growing field, but the degree finished in at number six in terms of online enrollment, according to Eduventures' research.
The health care program is popular at Brookhaven College in Texas, says Govea, who uses a simple math equation to explain why. "The highest rate of pay + shortest degree = high enrollments," he says.
Generally speaking, studying health care could be a smart move to make. According to the U.S. Department of Labor, health care features 10 of the 20 fastest growing careers.
Start Your Online Health Care Education - Find the Right School Now
#7 Online Degree - Communications (click title)
Not long ago it was email...Now it's social media that is changing the way people communicate. Studying communications online is a natural way to immerse oneself in this rapidly evolving field.
While studying communications online, you'll likely be working independently and in small and large groups, utilizing tools like live video streaming, webcams, message boards, and email.
"Excellent communication skills are a critical qualifier for any job seeker," Eby says. "Online communication students gain real-world experience in communications, advertising, media, and public relations utilizing a wide variety of media."
"In an online classroom, students interact with professors and peers from around the globe, teaching them to communicate in a virtual environment," Eby says.
Start Your Online Communications Education - Find the Right School Now
#8 Online Degree - Psychology (click title)
Since people are spending more and more time online these days, it makes sense that psychology students may be trending in that direction too.
Psychology, after all, is the study of human behavior. Sound appealing? You're not alone.
Govea says that online psychology degree programs have exploded in the last ten years and he thinks that career changers in particular are helping drive demand. "Often, when individuals are forced to redefine themselves through a response to a reduction in force or early retirement, they will choose a career that provides them more personal satisfaction than the one they previously held," he says.
Eby, an associate VP at the Southern New Hampshire University, sees two major reasons why online psychology degree programs are so popular.
"First, they provide a broad foundation for a variety of careers," he says. "Second, they afford students the opportunity to purse a degree while allowing time for work and family."
Start Your Online Psychology Education - Find the Right School Now
Next Article: Five Smart Online Degree Picks
Click green for further info
This article is for your private use, only
_______________________________________________________
and wondering which degree to choose?
Five Smart Online Degree Picks
Why drive all the way to a classroom when you can earn an online degree at home? Read on for five smart picks.
Do you want to go back to school to earn a degree but aren't sure you have the time? Does work or family obligations make it hard to attend class at a specific place and time? You're not alone.
That's why more and more students are signing up for online programs that let them "attend" class from wherever and whenever it's convenient for them.
In fact, it's estimated that 35 to 40 percent of college students over the age of 25 will be attending school online by 2014, according to "Hot Programs and Hot Markets," a 2009 study by Eduventures, a higher education research and consulting firm.
Click to Find the Right Online Program Now.
Think logging in for class at nine p.m. or on a cloudy Saturday could work for you? Check out these five degrees you can earn from virtually anywhere, on any schedule.
Online Degree #1: Master's in Business Administration (MBA)
Whether you're interested in switching jobs or advancing in your current career, online MBA programs can offer you the flexibility to advance your education while still maintaining your personal and professional lives.
Perhaps that's why MBA students topped online master's programs with an estimated 117,000 enrollees, according to the Eduventures study. That made up a full 26 percent of all MBA students.
With an online MBA, you could sharpen your business skills by taking courses like finance, marketing, and management - whenever and wherever it's convenient for you.
Click to Find the Right Online MBA Program Now.
Potential Careers and Average Salaries*
- Human Resources Manager: $108,600
- General Operations Manager: $113,100
- Marketing Manager: $122,720
Online Degree #2: Bachelor's in Education
Do you enjoy helping people understand certain concepts and topics? You could be a great fit for a bachelor’s degree in education, which is designed to develop skills needed to pursue teaching opportunities.
Best of all, an online bachelor's in education can be completed right in your home, which a record number of people are discovering. In their study, Eduventures traced a 22 percent increase in enrollment for this online degree from fall 2008 to fall 2009, making it one of the leaders of online options.
Education majors study how people learn and the best ways to teach, so you might encounter topics like educational psychology, school safety and health, and creating lesson plans and classroom activities. And who knows, you might even opt to teach online yourself someday.
Click to Find the Right Online Education Program Now.
Potential Careers and Average Salaries*
- Kindergarten Teacher: $51,550
- Elementary School Teacher: $54,330
- Secondary School Teacher: $55,990
Online Degree #3: Bachelor's in Criminal Justice
You still watch "Cops" reruns, don't you? Come on, you can admit it. And yes, "NYPD Blue" was one of the best shows of all time. If you agree, a degree in criminal justice may be for you.
But don't worry, thanks to the abundant online options, you won't have to quit your current job to pursue your criminal justice education. In fact, according to the 2009 Eduventures study, of all the students enrolled in criminal justice bachelor's programs, 27 percent did it online.
Criminal justice is a fascinating major, too, with coursework on everything from the law and public administration to psychology and sociology. You'll likely study such topics as how to combat domestic terrorism, how to deal with drug abuse, what punishments are cruel and unusual, and more.
Oh, and you'll probably never see "Cops" or "NYPD Blue" the same way again.
Click to Find the Right Online Criminal Justice Program Now.
Potential Careers and Average Salaries*
- Correctional Officer or Jailer: $42,780
- Police or Sheriff Patrol Officer: $55,620
- Transit or Railroad Police Officer: $55,930
Online Degree #4: Bachelor's in Psychology
If you've ever wondered why people do the things they do, studying psychology could help you better understand the inner workings of human behavior.
People who are fascinated with the complexities of human thought and behavior might love the coursework of a psychology degree, which concentrates on the way we act, feel, think, and learn.
With this flexible degree option, you could study how to help people with problems that range from emotional, to mental, to biological, and more, all from the comfort of your own home.
And earning a psychology degree online has never been more popular, with nearly 26,000 enrollees as of fall 2009, a growth rate of almost 20 percent from the year before, according to the Eduventures study.
Click to Find the Right Online Psychology Program Now.
Potential Careers and Average Salaries*
- Probation Officer: $51,240
- Correctional Treatment Specialist: $51,240
- Social Worker: $52,270
Online Degree #5: Bachelor's in Computer and Information Technology
It's hard to imagine a degree more geared to online education than one in computer and information technology (commonly referred to as IT). Think about it: the second you click the mouse to log-in, you're practicing skills in your area of interest - before you even study.
When you do study, you'll concentrate on more than just those mysterious digital boxes we call computers. You'll likely focus on how information and computing systems support business, research, and communications, and might have the option to specialize in exciting areas such as web design, gaming, or digital communication.
This broad educational base could lead to a promising career in many fields, especially now that more and more companies depend on computers and technology.
Click to Find the Right Online Computer and IT Program Now.
Potential Careers and Average Salaries*
- Computer Programmer: $74,900
- Computer Systems Analyst: $81,250
- Software Developer, Applications: $90,410
*All potential career and average salary information comes from the U.S. Department of Labor using 2010 salary data.
Next Article: Higher Education Goes High-Tech »Click green for further info
Eduventures, a Boston-based research firm, ranked the top eight online bachelor's degrees in terms of enrollment in 2009.
Keep reading to see why these degrees are so popular.
#1 Online Degree - Business (Click the title)
Enrollment for online business - sometimes called business administration - degrees topped all others in 2009, according to Eduventures. Perhaps that's because this program generally helps students hone the same computer skills that are used in the business world.
You're also likely to get a chance to broaden your business horizons beyond a single zip code, according to David Eby, associate vice president at Southern New Hampshire University.
"This learning without boundaries is especially relevant for someone seeking a career in the global business marketplace," Eby says.
Start Your Online Business Administration Education - Find the Right School Now
#2 Online Degree - Computer and Information Technology (IT) (Click the title)
Looking to get into an area like online computer support, cyber security, or network administration? Consider earning your IT degree online.
IT finished second among online bachelor's degrees in 2009 enrollment, according to Eduventures.
While some IT students may be more comfortable than most when learning in an online environment, there are also career-specific reasons that could be driving the demand for this particular online degree, according to Sam Govea, executive dean of distance learning at Brookhaven College in Texas.
"The need to remain knowledgeable in as many IT programming areas as possible equals job security and marketability to potential employers," says Govea. .
(Click) Start Your Online IT Education - Find the Right School Now
#3 Online Degree - Criminal Justice (click)
Good guys and bad guys alike use the internet. Guess what? Online criminal justice students do too, and they're doing it in increasingly large numbers.
"Most of the students in our CJ program are adults with families looking for a career change, and online classes provide an opportunity for them to work on this new degree according to their schedule," Govea says.
In addition to flexibility, these programs can potentially prepare you to pursue a wide variety of careers, according to Eby.
"From prevention to enforcement to the legal process to terrorism and homeland security the online classroom affords individuals the opportunity to learn from experts around the country..." he says.
Start Your Online Criminal Justice Education - Find the Right School Now
#4 Online Degree - Nursing (click title)
While nursing may not be the first online bachelor's degree that springs to mind, it finished fourth overall in terms of enrollment in 2009, according to Eduventures.
Ana Donaldson, co-author of "Engaging The Online Learner," says that online nursing programs are helping meet the industry's growing demand for a trained workforce.
"This is a group of individuals who traditionally enjoy working collaboratively" and they "often thrive in an online setting," Donaldson says.
At Brookhaven College in Texas, Govea says that nursing is the school's number one requested program.
Start Your Online Nursing Education - Find the Right School Now
#5 Online Degree - Education (click title)
Want to stay current in education? Studying online is just one of many technology-driven changes that are revolutionizing the field.
If you move into a teaching career, you'll likely want to incorporate your own online tools and technology into your courses, whether you are teaching online or inside a classroom. By getting your degree online, you could study different approaches and techniques to do this.
"The future of education needs to be anchored in the integration of technology to foster effective learning," says Donaldson. "Online educational opportunities are meeting the learning styles of today's students who we have failed with yesterday's teaching methods."
Start Your Online Education - Find the Right School Now
#6 Online Degree - Health Care (click title)
If you're looking for a career-focused degree that you can earn online, health care may be your pick.
Not only is this a growing field, but the degree finished in at number six in terms of online enrollment, according to Eduventures' research.
The health care program is popular at Brookhaven College in Texas, says Govea, who uses a simple math equation to explain why. "The highest rate of pay + shortest degree = high enrollments," he says.
Generally speaking, studying health care could be a smart move to make. According to the U.S. Department of Labor, health care features 10 of the 20 fastest growing careers.
Start Your Online Health Care Education - Find the Right School Now
#7 Online Degree - Communications (click title)
Not long ago it was email...Now it's social media that is changing the way people communicate. Studying communications online is a natural way to immerse oneself in this rapidly evolving field.
While studying communications online, you'll likely be working independently and in small and large groups, utilizing tools like live video streaming, webcams, message boards, and email.
"Excellent communication skills are a critical qualifier for any job seeker," Eby says. "Online communication students gain real-world experience in communications, advertising, media, and public relations utilizing a wide variety of media."
"In an online classroom, students interact with professors and peers from around the globe, teaching them to communicate in a virtual environment," Eby says.
Start Your Online Communications Education - Find the Right School Now
#8 Online Degree - Psychology (click title)
Since people are spending more and more time online these days, it makes sense that psychology students may be trending in that direction too.
Psychology, after all, is the study of human behavior. Sound appealing? You're not alone.
Govea says that online psychology degree programs have exploded in the last ten years and he thinks that career changers in particular are helping drive demand. "Often, when individuals are forced to redefine themselves through a response to a reduction in force or early retirement, they will choose a career that provides them more personal satisfaction than the one they previously held," he says.
Eby, an associate VP at the Southern New Hampshire University, sees two major reasons why online psychology degree programs are so popular.
"First, they provide a broad foundation for a variety of careers," he says. "Second, they afford students the opportunity to purse a degree while allowing time for work and family."
Start Your Online Psychology Education - Find the Right School Now
Next Article: Five Smart Online Degree Picks
Click green for further info
This article is for your private use, only
_______________________________________________________
Five Smart Online Degree
Picks
Five Smart Online Degree Picks
Why drive all the way to a classroom when you can earn an online degree at home? Read on for five smart picks.
Do you want to go back to school to earn a degree but aren't sure you have the time? Does work or family obligations make it hard to attend class at a specific place and time? You're not alone.
That's why more and more students are signing up for online programs that let them "attend" class from wherever and whenever it's convenient for them.
In fact, it's estimated that 35 to 40 percent of college students over the age of 25 will be attending school online by 2014, according to "Hot Programs and Hot Markets," a 2009 study by Eduventures, a higher education research and consulting firm.
Click to Find the Right Online Program Now (click)
Think logging in for class at nine p.m. or on a cloudy Saturday could work for you? Check out these five degrees you can earn from virtually anywhere, on any schedule.
Online Degree #1: Master's in Business Administration (MBA) (click title)
Whether you're interested in switching jobs or advancing in your current career, online MBA programs can offer you the flexibility to advance your education while still maintaining your personal and professional lives.
Perhaps that's why MBA students topped online master's programs with an estimated 117,000 enrollees, according to the Eduventures study. That made up a full 26 percent of all MBA students.
With an online MBA, you could sharpen your business skills by taking courses like finance, marketing, and management - whenever and wherever it's convenient for you.
Click to Find the Right Online MBA Program Now.
Potential Careers and Average Salaries*
Online Degree #2: Bachelor's in Education
Do you enjoy helping people understand certain concepts and topics? You could be a great fit for a bachelor’s degree in education, which is designed to develop skills needed to pursue teaching opportunities.
Best of all, an online bachelor's in education can be completed right in your home, which a record number of people are discovering. In their study, Eduventures traced a 22 percent increase in enrollment for this online degree from fall 2008 to fall 2009, making it one of the leaders of online options.
Education majors study how people learn and the best ways to teach, so you might encounter topics like educational psychology, school safety and health, and creating lesson plans and classroom activities. And who knows, you might even opt to teach online yourself someday.
Click to Find the Right Online Education Program Now.
Potential Careers and Average Salaries*
Online Degree #3: Bachelor's in Criminal Justice
You still watch "Cops" reruns, don't you? Come on, you can admit it. And yes, "NYPD Blue" was one of the best shows of all time. If you agree, a degree in criminal justice may be for you.
But don't worry, thanks to the abundant online options, you won't have to quit your current job to pursue your criminal justice education. In fact, according to the 2009 Eduventures study, of all the students enrolled in criminal justice bachelor's programs, 27 percent did it online.
Criminal justice is a fascinating major, too, with coursework on everything from the law and public administration to psychology and sociology. You'll likely study such topics as how to combat domestic terrorism, how to deal with drug abuse, what punishments are cruel and unusual, and more.
Oh, and you'll probably never see "Cops" or "NYPD Blue" the same way again.
Click to Find the Right Online Criminal Justice Program Now.
Potential Careers and Average Salaries*
Online Degree #4: Bachelor's in Psychology
If you've ever wondered why people do the things they do, studying psychology could help you better understand the inner workings of human behavior.
People who are fascinated with the complexities of human thought and behavior might love the coursework of a psychology degree, which concentrates on the way we act, feel, think, and learn.
With this flexible degree option, you could study how to help people with problems that range from emotional, to mental, to biological, and more, all from the comfort of your own home.
And earning a psychology degree online has never been more popular, with nearly 26,000 enrollees as of fall 2009, a growth rate of almost 20 percent from the year before, according to the Eduventures study.
Click to Find the Right Online Psychology Program Now.
Potential Careers and Average Salaries*
Online Degree #5: Bachelor's in Computer and Information Technology
It's hard to imagine a degree more geared to online education than one in computer and information technology (commonly referred to as IT). Think about it: the second you click the mouse to log-in, you're practicing skills in your area of interest - before you even study.
When you do study, you'll concentrate on more than just those mysterious digital boxes we call computers. You'll likely focus on how information and computing systems support business, research, and communications, and might have the option to specialize in exciting areas such as web design, gaming, or digital communication.
This broad educational base could lead to a promising career in many fields, especially now that more and more companies depend on computers and technology.
Click to Find the Right Online Computer and IT Program Now.
Potential Careers and Average Salaries*
*All potential career and average salary information comes from the U.S. Department of Labor using 2010 salary data.
Next Article: Higher Education Goes High-Tech »
_______________________________________________________________
Picks
Five Smart Online Degree Picks
Why drive all the way to a classroom when you can earn an online degree at home? Read on for five smart picks.
Do you want to go back to school to earn a degree but aren't sure you have the time? Does work or family obligations make it hard to attend class at a specific place and time? You're not alone.
That's why more and more students are signing up for online programs that let them "attend" class from wherever and whenever it's convenient for them.
In fact, it's estimated that 35 to 40 percent of college students over the age of 25 will be attending school online by 2014, according to "Hot Programs and Hot Markets," a 2009 study by Eduventures, a higher education research and consulting firm.
Click to Find the Right Online Program Now (click)
Think logging in for class at nine p.m. or on a cloudy Saturday could work for you? Check out these five degrees you can earn from virtually anywhere, on any schedule.
Online Degree #1: Master's in Business Administration (MBA) (click title)
Whether you're interested in switching jobs or advancing in your current career, online MBA programs can offer you the flexibility to advance your education while still maintaining your personal and professional lives.
Perhaps that's why MBA students topped online master's programs with an estimated 117,000 enrollees, according to the Eduventures study. That made up a full 26 percent of all MBA students.
With an online MBA, you could sharpen your business skills by taking courses like finance, marketing, and management - whenever and wherever it's convenient for you.
Click to Find the Right Online MBA Program Now.
Potential Careers and Average Salaries*
- Human Resources Manager: $108,600
- General Operations Manager: $113,100
- Marketing Manager: $122,720
Online Degree #2: Bachelor's in Education
Do you enjoy helping people understand certain concepts and topics? You could be a great fit for a bachelor’s degree in education, which is designed to develop skills needed to pursue teaching opportunities.
Best of all, an online bachelor's in education can be completed right in your home, which a record number of people are discovering. In their study, Eduventures traced a 22 percent increase in enrollment for this online degree from fall 2008 to fall 2009, making it one of the leaders of online options.
Education majors study how people learn and the best ways to teach, so you might encounter topics like educational psychology, school safety and health, and creating lesson plans and classroom activities. And who knows, you might even opt to teach online yourself someday.
Click to Find the Right Online Education Program Now.
Potential Careers and Average Salaries*
- Kindergarten Teacher: $51,550
- Elementary School Teacher: $54,330
- Secondary School Teacher: $55,990
Online Degree #3: Bachelor's in Criminal Justice
You still watch "Cops" reruns, don't you? Come on, you can admit it. And yes, "NYPD Blue" was one of the best shows of all time. If you agree, a degree in criminal justice may be for you.
But don't worry, thanks to the abundant online options, you won't have to quit your current job to pursue your criminal justice education. In fact, according to the 2009 Eduventures study, of all the students enrolled in criminal justice bachelor's programs, 27 percent did it online.
Criminal justice is a fascinating major, too, with coursework on everything from the law and public administration to psychology and sociology. You'll likely study such topics as how to combat domestic terrorism, how to deal with drug abuse, what punishments are cruel and unusual, and more.
Oh, and you'll probably never see "Cops" or "NYPD Blue" the same way again.
Click to Find the Right Online Criminal Justice Program Now.
Potential Careers and Average Salaries*
- Correctional Officer or Jailer: $42,780
- Police or Sheriff Patrol Officer: $55,620
- Transit or Railroad Police Officer: $55,930
Online Degree #4: Bachelor's in Psychology
If you've ever wondered why people do the things they do, studying psychology could help you better understand the inner workings of human behavior.
People who are fascinated with the complexities of human thought and behavior might love the coursework of a psychology degree, which concentrates on the way we act, feel, think, and learn.
With this flexible degree option, you could study how to help people with problems that range from emotional, to mental, to biological, and more, all from the comfort of your own home.
And earning a psychology degree online has never been more popular, with nearly 26,000 enrollees as of fall 2009, a growth rate of almost 20 percent from the year before, according to the Eduventures study.
Click to Find the Right Online Psychology Program Now.
Potential Careers and Average Salaries*
- Probation Officer: $51,240
- Correctional Treatment Specialist: $51,240
- Social Worker: $52,270
Online Degree #5: Bachelor's in Computer and Information Technology
It's hard to imagine a degree more geared to online education than one in computer and information technology (commonly referred to as IT). Think about it: the second you click the mouse to log-in, you're practicing skills in your area of interest - before you even study.
When you do study, you'll concentrate on more than just those mysterious digital boxes we call computers. You'll likely focus on how information and computing systems support business, research, and communications, and might have the option to specialize in exciting areas such as web design, gaming, or digital communication.
This broad educational base could lead to a promising career in many fields, especially now that more and more companies depend on computers and technology.
Click to Find the Right Online Computer and IT Program Now.
Potential Careers and Average Salaries*
- Computer Programmer: $74,900
- Computer Systems Analyst: $81,250
- Software Developer, Applications: $90,410
*All potential career and average salary information comes from the U.S. Department of Labor using 2010 salary data.
Next Article: Higher Education Goes High-Tech »
_______________________________________________________________
Quotation
"Perseverance is a great element of success.
If you only knock long enough and loud enough at the gate, you are sure to wake up somebody."
– Henry Wadsworth Longfellow,
a beloved American poet of the 19th century, is best known for "The Song of Hiawatha" and "Evangeline." He was born in Maine in 1807. He knew Latin by the age of six, and when he taught at Bowdoin College, he wrote the textbooks himself. He courted his second wife while teaching at Harvard and frequently walked the several miles from Cambridge to Boston across the West Boston Bridge. The bridge that replaced it was named the Longfellow Bridge in his honor. He died in 1882.
(click the red topic)
Watch out
for the 15 most common scams
Phony companies and offers will steal not only your money, but also your identity - Beware 'free' trials
click green: See Stolen: True Tales of Identity Theft
___________________________________
Investing in Gold ?
Every investor deserves to know the truth about investing in gold
The cold factors below
revealed by a leading Harvard Economics Professor
_________________
THERE ISN’T A LOT OF GOLD
Date: July 27, 2013
Budging* (Just a Little)
on Investing in Gold
*) To budge is to move or change something a little
An example of budge is to get someone to alter their beliefs slightly
Another example of budge is get a large rock to move a tiny bit
_______
Trough out this website, STAF, Inc.'s editors give meaning to certain words or sayings
that may be unfamiliar to the speakers of English as their second language
________________________
THERE ISN’T A LOT OF GOLD
The World Gold Council estimates that all the gold ever mined amounts to 174,100 metric tons
If this supply were divided equally among the world’s population, it would work out to less than one ounce a person
Warren E. Buffett has a good way to illustrate how little gold there is. He has calculated that if all the gold in the world were made into a cube, its edge would be only 69 feet long. So the cube would fit comfortably within a baseball infield
_________
By N. GREGORY MANKIW - N. Gregory Mankiw is a professor of economics at Harvard
Click green for further info
A friend posed that question to me a few weeks ago, after watching gold’s wild ride over the last few years. The price of gold was less than $500 an ounce in 2005, but soared to more than $1,800 in 2011, before falling back to about $1,300 recently. He wasn’t sure what to make of it all.
My instinct was to say no. Like most economists I know, I am a pretty boring investor. I hold 60 percent stocks, 40 percent bonds, mostly in low-cost index funds. Whenever I see those TV commercials with some actor hawking gold coins, I roll my eyes. Hoarding gold seems akin to stocking up on canned beans and ammo as you wait for the apocalypse in your fallout shelter.
But I was also wary of imposing my gut instinct on my friend, who was looking for a more reasoned judgment. I knew that some investors saw gold as a key part of a portfolio. The author Harry Browne, the onetime Libertarian presidential candidate, recommended a permanent 25 percent allocation to gold. In 2012, the Federal Reserve reported that Richard Fisher, president of the Federal Reserve Bank of Dallas, had more than $1 million of gold in his personal portfolio.
So, before answering my friend’s question, I dived into the small academic literature on gold as a portfolio investment. Here is what I learned:
THERE ISN’T A LOT OF IT The World Gold Council estimates that all the gold ever mined amounts to 174,100 metric tons. If this supply were divided equally among the world’s population, it would work out to less than one ounce a person.
Warren E. Buffett has a good way to illustrate how little gold there is. He has calculated that if all the gold in the world were made into a cube, its edge would be only 69 feet long. So the cube would fit comfortably within a baseball infield.
Despite its small size, that cube would have substantial value. In a recent paper released by the National Bureau of Economic Research (N.B.E.R), Claude B. Erb and Campbell R. Harvey estimated that the value of gold makes up about 9 percent of the world’s market capitalization of stocks, bonds and gold. Much of the world’s gold, however, is out of the hands of private investors. About half of it is in the form of jewelry, and an additional 20 percent is held by central banks. This means that if you were to hold the available market portfolio, your asset allocation to gold would be about 2 percent.
ITS REAL RETURN IS SMALL Over the long run, gold’s price has outpaced overall prices as measured by the Consumer Price Index — but not by much. In another recent N.B.E.R. paper, the economists Robert J. Barro and Sanjay P. Misra reported that from 1836 to 2011, gold earned an average annual inflation-adjusted return of 1.1 percent. By contrast, they estimated long-term returns to be 1.0 percent for Treasury bills, 2.9 percent for long-term bonds and 7.4 percent for stocks.
Mr. Erb and Mr. Harvey presented a novel way of gauging gold’s return in the very long run: they compared what the Roman emperor Augustus paid his soldiers, measured in units of gold, to what we pay the military today.
They report remarkably little change over 2,000 years. The annual cost of one Roman legionary plus one Roman centurion was 40.9 ounces of gold. The annual cost of one United States Army private plus one Army captain has recently been 38.9 ounces of gold.
To be sure, military pay is a narrow measure, but this comparison offers some support for the view that, on average, gold should keep pace with wage inflation, which, thanks to productivity growth, runs slightly ahead of price inflation.
ITS PRICE IS HIGHLY VOLATILE*) Gold may offer an average return near that of Treasury bills, but its volatility is closer to that of the stock market.*) volatile = changeable - inconstant
That has been especially true since President Richard M. Nixon removed the last vestiges of the gold standard. Mr. Barro and Mr. Misra report that since 1975, the volatility of gold’s return, as measured by standard deviation, has been about 50 percent greater than the volatility of stocks.
Because gold is a small asset class with meager returns and high volatility, an investor may be tempted to avoid it altogether. But not so fast. One last fact may turn the tables.
IT MARCHES TO A DIFFERENT BEAT An important element of an investment portfolio is diversification, and here is where gold really shines — pun intended — because its price is largely uncorrelated with stocks and bonds. Despite gold’s volatility, adding a little to a standard portfolio can reduce its overall risk.
How far should an investor go? It’s hard to say, because optimal portfolios are so sensitive to expected returns on alternative assets, and expected returns are hard to measure precisely, even with a century or two of data. It is therefore not surprising that financial analysts reach widely varying conclusions.
In the end, I abandoned my initial aversion to holding gold. A small sliver, such as the 2 percent weight in the world market portfolio, now makes sense to me as part of a long-term investment strategy. And with several gold bullion exchange-traded funds now available, investing in gold is easy and can be done at low cost.
I will continue, however, to pass on the canned beans and ammo.
N. Gregory Mankiw is a professor of economics at Harvard.
Click green for further info
Source: Appeared first in The NYT
_____________________________________________
Watch out
for the 15 most common scams
Phony companies and offers will steal not only your money, but also your identity - Beware 'free' trials
- click green: How to prevent ID theft
- click green: Avoid getting 'skimmed'
- click green: Pick charities wisely
click green: See Stolen: True Tales of Identity Theft
___________________________________
Investing in Gold ?
Every investor deserves to know the truth about investing in gold
The cold factors below
revealed by a leading Harvard Economics Professor
_________________
THERE ISN’T A LOT OF GOLD
Date: July 27, 2013
Budging* (Just a Little)
on Investing in Gold
*) To budge is to move or change something a little
An example of budge is to get someone to alter their beliefs slightly
Another example of budge is get a large rock to move a tiny bit
_______
Trough out this website, STAF, Inc.'s editors give meaning to certain words or sayings
that may be unfamiliar to the speakers of English as their second language
________________________
THERE ISN’T A LOT OF GOLD
The World Gold Council estimates that all the gold ever mined amounts to 174,100 metric tons
If this supply were divided equally among the world’s population, it would work out to less than one ounce a person
Warren E. Buffett has a good way to illustrate how little gold there is. He has calculated that if all the gold in the world were made into a cube, its edge would be only 69 feet long. So the cube would fit comfortably within a baseball infield
_________
By N. GREGORY MANKIW - N. Gregory Mankiw is a professor of economics at Harvard
Click green for further info
A friend posed that question to me a few weeks ago, after watching gold’s wild ride over the last few years. The price of gold was less than $500 an ounce in 2005, but soared to more than $1,800 in 2011, before falling back to about $1,300 recently. He wasn’t sure what to make of it all.
My instinct was to say no. Like most economists I know, I am a pretty boring investor. I hold 60 percent stocks, 40 percent bonds, mostly in low-cost index funds. Whenever I see those TV commercials with some actor hawking gold coins, I roll my eyes. Hoarding gold seems akin to stocking up on canned beans and ammo as you wait for the apocalypse in your fallout shelter.
But I was also wary of imposing my gut instinct on my friend, who was looking for a more reasoned judgment. I knew that some investors saw gold as a key part of a portfolio. The author Harry Browne, the onetime Libertarian presidential candidate, recommended a permanent 25 percent allocation to gold. In 2012, the Federal Reserve reported that Richard Fisher, president of the Federal Reserve Bank of Dallas, had more than $1 million of gold in his personal portfolio.
So, before answering my friend’s question, I dived into the small academic literature on gold as a portfolio investment. Here is what I learned:
THERE ISN’T A LOT OF IT The World Gold Council estimates that all the gold ever mined amounts to 174,100 metric tons. If this supply were divided equally among the world’s population, it would work out to less than one ounce a person.
Warren E. Buffett has a good way to illustrate how little gold there is. He has calculated that if all the gold in the world were made into a cube, its edge would be only 69 feet long. So the cube would fit comfortably within a baseball infield.
Despite its small size, that cube would have substantial value. In a recent paper released by the National Bureau of Economic Research (N.B.E.R), Claude B. Erb and Campbell R. Harvey estimated that the value of gold makes up about 9 percent of the world’s market capitalization of stocks, bonds and gold. Much of the world’s gold, however, is out of the hands of private investors. About half of it is in the form of jewelry, and an additional 20 percent is held by central banks. This means that if you were to hold the available market portfolio, your asset allocation to gold would be about 2 percent.
ITS REAL RETURN IS SMALL Over the long run, gold’s price has outpaced overall prices as measured by the Consumer Price Index — but not by much. In another recent N.B.E.R. paper, the economists Robert J. Barro and Sanjay P. Misra reported that from 1836 to 2011, gold earned an average annual inflation-adjusted return of 1.1 percent. By contrast, they estimated long-term returns to be 1.0 percent for Treasury bills, 2.9 percent for long-term bonds and 7.4 percent for stocks.
Mr. Erb and Mr. Harvey presented a novel way of gauging gold’s return in the very long run: they compared what the Roman emperor Augustus paid his soldiers, measured in units of gold, to what we pay the military today.
They report remarkably little change over 2,000 years. The annual cost of one Roman legionary plus one Roman centurion was 40.9 ounces of gold. The annual cost of one United States Army private plus one Army captain has recently been 38.9 ounces of gold.
To be sure, military pay is a narrow measure, but this comparison offers some support for the view that, on average, gold should keep pace with wage inflation, which, thanks to productivity growth, runs slightly ahead of price inflation.
ITS PRICE IS HIGHLY VOLATILE*) Gold may offer an average return near that of Treasury bills, but its volatility is closer to that of the stock market.*) volatile = changeable - inconstant
That has been especially true since President Richard M. Nixon removed the last vestiges of the gold standard. Mr. Barro and Mr. Misra report that since 1975, the volatility of gold’s return, as measured by standard deviation, has been about 50 percent greater than the volatility of stocks.
Because gold is a small asset class with meager returns and high volatility, an investor may be tempted to avoid it altogether. But not so fast. One last fact may turn the tables.
IT MARCHES TO A DIFFERENT BEAT An important element of an investment portfolio is diversification, and here is where gold really shines — pun intended — because its price is largely uncorrelated with stocks and bonds. Despite gold’s volatility, adding a little to a standard portfolio can reduce its overall risk.
How far should an investor go? It’s hard to say, because optimal portfolios are so sensitive to expected returns on alternative assets, and expected returns are hard to measure precisely, even with a century or two of data. It is therefore not surprising that financial analysts reach widely varying conclusions.
In the end, I abandoned my initial aversion to holding gold. A small sliver, such as the 2 percent weight in the world market portfolio, now makes sense to me as part of a long-term investment strategy. And with several gold bullion exchange-traded funds now available, investing in gold is easy and can be done at low cost.
I will continue, however, to pass on the canned beans and ammo.
N. Gregory Mankiw is a professor of economics at Harvard.
Click green for further info
Source: Appeared first in The NYT
_____________________________________________
This article about scams & fraud is important for every age to know
Elderly man scammed for thousands,
kids’ lives threatened
This can happen to anyone, also to the younger people - study this to avoid scams & fraud
Educate your family members and relatives of any age
A whizbang in the insurance and financial worlds for decades, a spry retiree in Chicago was the last guy his children imagined they'd see snared in a money scam.
But in a mere month earlier this year the 80-year-old grandfather was conned out of an estimated $25,000.
"It might even be more," his oldest son said.
Once the victim's kids caught on, the scam got scarier.
"These people threatened to kill me on more than one occasion," the son said.
Still, they want their father's story told. To protect their identity, Yahoo News is not naming the elderly victim or his family.
"If it can happen to my dad, it can absolutely happen to anyone else," the son said.
Federal officials agree and are sounding the alarm. A government report released this month described elder financial exploitation as an "epidemic with society wide repercussions." While this type of fraud is woefully underreported and often overlooked, officials estimate that Americans 65 and older are taken for nearly $3 billion a year.
Elder fraud comes in all forms, including the lottery scam pulled on the Chicago widower. A Feb. 20 letter in the style of Publishers Clearing House sweepstakes informed the widower he'd won at least $5 million. To claim his prize, the letter said, he would need to send $3,000 to cover "insurance, shipping and handling for the safe delivery."
He complied, but the fraudsters kept calling back for more. Time and again, he'd go to neighborhood stores and wire money by the hundreds and thousands. In mid-March, one of his children paid a visit and spotted money transfer receipts scattered about.
Fraud letter sent to Chicago victim
"My dad became hush-hush and actually tried to hide stuff," the son told Yahoo News. "That was totally out of character for my dad. And he came up with a BS story that my brother did not believe."
His children alerted the Illinois attorney general, Publishers Clearing House and the financial institutions involved. MoneyGram and Western Union blocked the 80-year-old's accounts, but he continued to get calls from strangers in New York and Jamaica. His sons intercepted some of the calls, which turned threatening when the sons refused to put their father on the phone.
"They said they could see us through the window, that they were going to shoot us that afternoon," his son said.
The family and others familiar with the case believe the original fraudsters sold the victim's information on "smurf lists" so that other money launderers could contact him as well. One female caller told the son she was his father's girlfriend. Others knew personal details about the elderly man, like his dog's name.
"Anything to get through to my dad," said the son, who doubts his father will ever see justice or restitution. "They're good, they're organized and they are ruthless."
Chris Irving, assistant vice president of consumer and legal affairs at Publishers Clearing House, says imposters are a thorn in the company's side.
"Our efforts to get the criminals to stop using our name are numerous," Irving said. "And at the end of the day, perhaps the most effective deterrent is the comprehensive education we provide to consumers through many different programs that reminds them that if you have to pay to win, it is not a legitimate prize and it is certainly not from the real Publishers Clearing House."
[RELATED: Yellow pages scammers ordered to pay back $10M]
Nine months later, the man's children are still puzzled by how their financially astute father fell for the scam.
"My dad was and is still in denial," the son said. "He told the police that it was a very small amount, but we know he fibbed."
Shame and fear of losing their independence keeps elders from reporting such crimes, but Pamela Teaster, a gerontologist, says executive function is often the first sign of cognitive decline for seniors.
"That's where that sort of reasoning and dealing with numbers issue comes into play," said Teaster, who heads the University of Kentucky's Justice Center for Elders and Vulnerable Adults.
Criminal gangs are noticing the growing elder population in the United States.
"They have the nation's wealth," Teaster said. "That's where the money resides."
The Government Accountability Office recently called on the Federal Trade Commission, Justice Department, Health and Human Services and other federal agencies to step up efforts to combat elder financial exploitation.
"It calls for a more cohesive and deliberate approach government-wide that, at a minimum, identifies gaps in efforts nationwide, ensures that federal resources are effectively allocated, establishes federal agency responsibilities, and holds agencies accountable for meeting them," the GAO report concluded.
"Often the response has been disjointed," Sen. Richard Blumenthal, D-Conn, said in a speech at the inaugural meeting of the Elder Justice Coordinating Council in October. The new multiagency federal council is charged with creating a better road map for elder justice.
[RELATED: N.J. gay conversion therapy group sued for fraud]
Cases like the one in Chicago often fall through the cracks because of overlapping local, state and federal jurisdictions or limited resources for law enforcement. Privacy and antitrust laws complicate matters too.
Publishers Clearing House and money transfer companies already report fraud to the government. But Kim Garner, MoneyGram's senior vice president of global security, said more crime patterns could be identified if the FTC would allow for certain fraud details to be mutual across business and law enforcement networks.
"If we could come up with new ways of sharing information that doesn't violate antitrust or privacy laws, that would be a step in the right direction," said Garner, a former Secret Service agent.
Garner and her MoneyGram team already help police where they can, and are constantly updating their computer system to try and catch fraud before a transaction is complete.
"Because the bad guys get really good at the rules," she said.
No one knows that better than the Chicago victim and his family.
After their father was blocked from wiring money, the shysters convinced him to open new checking and savings accounts. The cons gained online access, but were stopped before they could play switcheroo with his money.
"God only knows what he might have lost," the son said.
Fraud resource links:
Click for each green title below
File a complaint with the FTC
MoneyGram's fraud prevention tips
FBI advice for senior citizens
Click green titles & other green areas for video and/or additional info
This ARTICLE IS FOR YOU PRIVATE USE, ONLY
_________________________________________
Elderly man scammed for thousands,
kids’ lives threatened
This can happen to anyone, also to the younger people - study this to avoid scams & fraud
Educate your family members and relatives of any age
A whizbang in the insurance and financial worlds for decades, a spry retiree in Chicago was the last guy his children imagined they'd see snared in a money scam.
But in a mere month earlier this year the 80-year-old grandfather was conned out of an estimated $25,000.
"It might even be more," his oldest son said.
Once the victim's kids caught on, the scam got scarier.
"These people threatened to kill me on more than one occasion," the son said.
Still, they want their father's story told. To protect their identity, Yahoo News is not naming the elderly victim or his family.
"If it can happen to my dad, it can absolutely happen to anyone else," the son said.
Federal officials agree and are sounding the alarm. A government report released this month described elder financial exploitation as an "epidemic with society wide repercussions." While this type of fraud is woefully underreported and often overlooked, officials estimate that Americans 65 and older are taken for nearly $3 billion a year.
Elder fraud comes in all forms, including the lottery scam pulled on the Chicago widower. A Feb. 20 letter in the style of Publishers Clearing House sweepstakes informed the widower he'd won at least $5 million. To claim his prize, the letter said, he would need to send $3,000 to cover "insurance, shipping and handling for the safe delivery."
He complied, but the fraudsters kept calling back for more. Time and again, he'd go to neighborhood stores and wire money by the hundreds and thousands. In mid-March, one of his children paid a visit and spotted money transfer receipts scattered about.
Fraud letter sent to Chicago victim
"My dad became hush-hush and actually tried to hide stuff," the son told Yahoo News. "That was totally out of character for my dad. And he came up with a BS story that my brother did not believe."
His children alerted the Illinois attorney general, Publishers Clearing House and the financial institutions involved. MoneyGram and Western Union blocked the 80-year-old's accounts, but he continued to get calls from strangers in New York and Jamaica. His sons intercepted some of the calls, which turned threatening when the sons refused to put their father on the phone.
"They said they could see us through the window, that they were going to shoot us that afternoon," his son said.
The family and others familiar with the case believe the original fraudsters sold the victim's information on "smurf lists" so that other money launderers could contact him as well. One female caller told the son she was his father's girlfriend. Others knew personal details about the elderly man, like his dog's name.
"Anything to get through to my dad," said the son, who doubts his father will ever see justice or restitution. "They're good, they're organized and they are ruthless."
Chris Irving, assistant vice president of consumer and legal affairs at Publishers Clearing House, says imposters are a thorn in the company's side.
"Our efforts to get the criminals to stop using our name are numerous," Irving said. "And at the end of the day, perhaps the most effective deterrent is the comprehensive education we provide to consumers through many different programs that reminds them that if you have to pay to win, it is not a legitimate prize and it is certainly not from the real Publishers Clearing House."
[RELATED: Yellow pages scammers ordered to pay back $10M]
Nine months later, the man's children are still puzzled by how their financially astute father fell for the scam.
"My dad was and is still in denial," the son said. "He told the police that it was a very small amount, but we know he fibbed."
Shame and fear of losing their independence keeps elders from reporting such crimes, but Pamela Teaster, a gerontologist, says executive function is often the first sign of cognitive decline for seniors.
"That's where that sort of reasoning and dealing with numbers issue comes into play," said Teaster, who heads the University of Kentucky's Justice Center for Elders and Vulnerable Adults.
Criminal gangs are noticing the growing elder population in the United States.
"They have the nation's wealth," Teaster said. "That's where the money resides."
The Government Accountability Office recently called on the Federal Trade Commission, Justice Department, Health and Human Services and other federal agencies to step up efforts to combat elder financial exploitation.
"It calls for a more cohesive and deliberate approach government-wide that, at a minimum, identifies gaps in efforts nationwide, ensures that federal resources are effectively allocated, establishes federal agency responsibilities, and holds agencies accountable for meeting them," the GAO report concluded.
"Often the response has been disjointed," Sen. Richard Blumenthal, D-Conn, said in a speech at the inaugural meeting of the Elder Justice Coordinating Council in October. The new multiagency federal council is charged with creating a better road map for elder justice.
[RELATED: N.J. gay conversion therapy group sued for fraud]
Cases like the one in Chicago often fall through the cracks because of overlapping local, state and federal jurisdictions or limited resources for law enforcement. Privacy and antitrust laws complicate matters too.
Publishers Clearing House and money transfer companies already report fraud to the government. But Kim Garner, MoneyGram's senior vice president of global security, said more crime patterns could be identified if the FTC would allow for certain fraud details to be mutual across business and law enforcement networks.
"If we could come up with new ways of sharing information that doesn't violate antitrust or privacy laws, that would be a step in the right direction," said Garner, a former Secret Service agent.
Garner and her MoneyGram team already help police where they can, and are constantly updating their computer system to try and catch fraud before a transaction is complete.
"Because the bad guys get really good at the rules," she said.
No one knows that better than the Chicago victim and his family.
After their father was blocked from wiring money, the shysters convinced him to open new checking and savings accounts. The cons gained online access, but were stopped before they could play switcheroo with his money.
"God only knows what he might have lost," the son said.
Fraud resource links:
Click for each green title below
File a complaint with the FTC
MoneyGram's fraud prevention tips
FBI advice for senior citizens
- Play Video Witness Becomes Victim After Attempting …
- MoneyGram agrees to settle scam cha … MoneyGram said in November 2012 that it has agreed to set up a $100 million compensation fund as part of a settlement
- Suspect Arrested After Allegedly Beating …
Click green titles & other green areas for video and/or additional info
This ARTICLE IS FOR YOU PRIVATE USE, ONLY
_________________________________________
What Women Want, Men Don't Give
What Men Want, Women Don't Give
When it comes to gifts, it's not the thought that counts. At least not in America's wealthiest households.
Two-thirds of affluent American women want gift cards. But less than a fifth of men will give it to them, according to a report from American Express Publishing and the Harrison Group out Thursday.
Instead, 70% of women are gifted clothing or jewelry.
A survey of 625 households that represent the top 10% of the nation's wage earners found a wide gap between what people want and what they will actually get.
Men should also lower their expectations. They want food and alcohol -- a third are hoping for gourmet foods and fine wine, and another third want gift cards. But women like to give none of those -- 30% are expected to give clothing, and another 15% books.
What wealthy shoppers are better suited for will be giving gifts to themselves.
Nearly half of women said they were extremely, or very likely, to buy themselves presents this holiday season. A third of men have similar intentions.
"Perhaps America is giving itself a bonus this year," said Jim Taylor, vice chairman of Harrison Group, in a statement.
Holiday retail sales are expected to increase 4.1% this year, according to estimates from the National Retail Federation. That's the most optimistic forecast from the group since the recession.
The American Express and Harrison Group survey found that gift giving will be down overall this year, but the top 10% will spend nearly 22% more on gifts this year than they did the previous year
Source: Yahoo news
This article is for your private use, only
____________________________________________
What Men Want, Women Don't Give
When it comes to gifts, it's not the thought that counts. At least not in America's wealthiest households.
Two-thirds of affluent American women want gift cards. But less than a fifth of men will give it to them, according to a report from American Express Publishing and the Harrison Group out Thursday.
Instead, 70% of women are gifted clothing or jewelry.
A survey of 625 households that represent the top 10% of the nation's wage earners found a wide gap between what people want and what they will actually get.
Men should also lower their expectations. They want food and alcohol -- a third are hoping for gourmet foods and fine wine, and another third want gift cards. But women like to give none of those -- 30% are expected to give clothing, and another 15% books.
What wealthy shoppers are better suited for will be giving gifts to themselves.
Nearly half of women said they were extremely, or very likely, to buy themselves presents this holiday season. A third of men have similar intentions.
"Perhaps America is giving itself a bonus this year," said Jim Taylor, vice chairman of Harrison Group, in a statement.
Holiday retail sales are expected to increase 4.1% this year, according to estimates from the National Retail Federation. That's the most optimistic forecast from the group since the recession.
The American Express and Harrison Group survey found that gift giving will be down overall this year, but the top 10% will spend nearly 22% more on gifts this year than they did the previous year
Source: Yahoo news
This article is for your private use, only
____________________________________________
Click the green areas for further information
Click the title $126 billion in net worth in one photo
Some of the wealthiest philanthropists in America gathered for this very special shoot.Oprah, Warren Buffett, Bon Jovi
Related links
Click: 'Secret' billionaire was hiding in plain sight
The fourth-richest woman in the United States managed to escape the spotlight for years.
Bloomberg News says:
The ability of Elaine and Piece Marshall to avoid publicity contrasted sharply with the ability of Pierce's father,
J. Howard Marshall, to attract it. He never did that better than in 1994, when, at the age of 89, he wed former stripper and Playboy model Anna Nicole Smith, 26, at the time. As J. Howard's wife, she became Elaine's mother-in-law.
Click the title $126 billion in net worth in one photo
Some of the wealthiest philanthropists in America gathered for this very special shoot.Oprah, Warren Buffett, Bon Jovi
Related links
- What ultrarich spend on (click)
- Billionaire's harsh advice (click)
- How wealthy got that way (click)
Click: 'Secret' billionaire was hiding in plain sight
The fourth-richest woman in the United States managed to escape the spotlight for years.
Bloomberg News says:
The ability of Elaine and Piece Marshall to avoid publicity contrasted sharply with the ability of Pierce's father,
J. Howard Marshall, to attract it. He never did that better than in 1994, when, at the age of 89, he wed former stripper and Playboy model Anna Nicole Smith, 26, at the time. As J. Howard's wife, she became Elaine's mother-in-law.
- _________________________________
Necessary information for all investing activities
Financial - Rule of 72
* A useful tool for your investment planning
A rule of thumb for (click green) exponential growth (LAT. exponere = to put forth) at a constant rate.
An approximation of the doubling time formula used in population growth, according to which the doubling time is roughly equal to 70 divided by the percent growth rate (using continuous compounding, the actual number would be about 69.3147181 or 100 times the natural logarithm of 2). In terms of money, since we use the annual effective interest rate (which is equivalent to annual compounding) for interest rates between 4% and 12% the number which gives the most accurate result is actually 72. Therefore, divide 72 by the percent interest rate to determine the approximate amount of time to double your money in an investment.
For example, at 8% interest, your money will double in approximately 9 years (72/8 = 9)
____________________________
ADDITIONAL BUSINESS RELATED INFORMATION
SEE - TAB: services, SUB-TAB: Successology® - Success for Life
Advice for How to Create a Business and
Other Topics
___________________________________________________
Financial - Rule of 72
* A useful tool for your investment planning
A rule of thumb for (click green) exponential growth (LAT. exponere = to put forth) at a constant rate.
An approximation of the doubling time formula used in population growth, according to which the doubling time is roughly equal to 70 divided by the percent growth rate (using continuous compounding, the actual number would be about 69.3147181 or 100 times the natural logarithm of 2). In terms of money, since we use the annual effective interest rate (which is equivalent to annual compounding) for interest rates between 4% and 12% the number which gives the most accurate result is actually 72. Therefore, divide 72 by the percent interest rate to determine the approximate amount of time to double your money in an investment.
For example, at 8% interest, your money will double in approximately 9 years (72/8 = 9)
____________________________
ADDITIONAL BUSINESS RELATED INFORMATION
SEE - TAB: services, SUB-TAB: Successology® - Success for Life
Advice for How to Create a Business and
Other Topics
___________________________________________________
October 28, 2012
The Perils of Feeding a Bloated Industry
Click green for further info
It is said the wheels of justice grind slowly, but should it really have taken more than five years for the Justice Department to discover that Countrywide Financial, the mortgage mania’s top creator of risky loans, dumped a load of that junk on Fannie Mae and Freddie Mac?
Last week, the Justice Department filed a civil suit against Countrywide and its acquirer, Bank of America, seeking to recover $1 billion in losses suffered by Fannie and Freddie, now taxpayer-owned, from 2007 to 2009. Preet Bharara, the United States attorney in Manhattan who brought the case, said Countrywide was accused of conduct “spectacularly brazen in scope.”
In case you’ve been away from Planet Earth these past five years, Countrywide was legendary for its toxic loans and aggressive sales tactics. And its close ties to Fannie Mae have long been detailed in public documents filed with the Securities and Exchange Commission. For example, Countrywide was Fannie Mae’s biggest supplier of mortgages, many of which were Countrywide’s famous “Fast and Easy” loans. As for subprime loans, in 2005 alone, Countrywide sold $12.5 billion worth of risky mortgages to Fannie Mae.
Still, if the Justice Department’s lawsuit keeps taxpayers focused on the high societal costs that financial institutions like Countrywide have inflicted, that is all to the good. This is especially true given the immensity of the financial services industry and the power it continues to wield.
It is worth remembering that the credit crisis and ensuing economic downturn followed a spectacular expansion in the financial business, compared with other industries. Assessing the nature of that growth and whether it has benefited society is the subject of powerful new research by David Scharfstein and Robin Greenwood, professors at Harvard Business School.
In their study, “The Growth of Modern Finance,” the professors delve into figures showing that the financial industry accounted for 7.9 percent of the nation’s gross domestic product in 2007, up from 2.8 percent in 1950 and 4.9 percent in 1980. Finance’s share of G.D.P. grew faster since 1980, they found, than it did in the previous three decades.
Other academics have tracked this meteoric rise and questioned its benefits. But Mr. Scharfstein and Mr. Greenwood go further, identifying specific corners of finance that contributed most to the growth. This lets them dig deeper into the broader impact of this trend — like who wins and who loses in the race.
One part of the industry that has contributed greatly to the rise, they found, is money management. Fees generated by asset managers, like those for mutual funds, hedge funds and private equity concerns, account for 36 percent of the growth in the financial sector’s share of the economy, the study concluded.
Driving that increase is the puzzling fact that asset management fees over all, typically charged as a percentage of the money overseen, have not fallen substantially. Much of the increase here, therefore, has to do with the rise in asset values, which generate higher fees for money managers even though the cost of providing their services does not increase. A soaring Dow Jones industrial average is very lucrative for these folks.
Yes, investors can cut expenses by buying low-cost mutual funds, like those mirroring stock indexes. But most active managers continue to levy the same percentage fee on assets that have risen in value significantly, generating big gains for themselves, the professors note.
Another factor has kept asset management fees aloft: the rise of alternative investments, like hedge funds and private equity funds. Their costs — around 2 percent a year, plus a percentage of profits — skew the average fees higher.
Professional money management has many societal benefits, Mr. Scharfstein is quick to note. It’s brought more liquidity to markets, financed more entrepreneurial ventures and cut costs of capital for many companies.
But the stubbornly high fees charged by these managers are a troubling transfer of wealth from savers to finance workers, Mr. Scharfstein added. Over time, these costs have huge impact on how well an investor will live in retirement. In other words, the few benefit at the expense of the many.
“Normally you would think that competition should drive down prices,” Mr. Scharfstein said in an interview. “But that doesn’t seem to be working except for index funds. Part of the answer must be a lack of sophistication on the part of individual investors. But many public pension funds and other large institutions, which are supposed to be sophisticated investors, pay high fees — in many cases for pretty lackluster performance.”
THE second major contributor to the ever-growing finance sector is the cost of household credit, mostly those costs associated with mortgages. Household credit costs, the professors reckon, have accounted for almost 40 percent of the increase in finance’s share of G.D.P. in recent years.
This is not surprising, given that household credit, mainly mortgages, ballooned from 48 percent of gross domestic product in 1980 to 99 percent in the credit boom, the study notes. This was largely a result of an expanded securitization market that enabled lenders to originate home loans and bundle them into securities for sale to Wall Street and then to investors.
But this process, while highly profitable to the sector, undermined financial stability, the professors argue. Participants failed to understand the risks, amplifying the panic when the market turned sour. And making household credit more available let borrowers pile on dangerous amounts of leverage, introducing more volatility into the system.
These are the social costs of the vast increase in this type of credit: The financial system became more complex and borrowers were imperiled. Over the last five years, we have witnessed millions of foreclosures, trillions in investment losses and an economic downturn we are still struggling to overcome.
“It’s probably good to be in a place where households can get access to credit,” Mr. Scharfstein said, “but the question is, at what cost?”
Fact is, we are still tallying it.
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Man "Cheats" Credit Score - ALL legally.
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Over 72 % (or more) in credit score reports have mistakes.
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WANT A MUCH BETTER CREDIT SCORE
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- no matter what's in your official Score report -
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Man "Cheats" Credit Score - ALL legally.
A more accurate title would be: "Man Beats A Negative Credit Score"
The laws are actually protecting you when you know how.
Start from this video - you'll get the "HOW".
Over 72 % (or more) in credit score reports have mistakes.
This is an organized plan how to improve your score, again: all legally.
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What's the easiest way to cheat on taxes?
Interviews with accountants reveal the many ways Americans try to outsmart the IRS.
Too many loopholes to count
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Cracking Your PIN Code: Easy as 1-2-3-4
What pin is safe and what unsafe?
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If you lost your ATM card on the street, how easy would it be for someone to correctly guess your PIN and proceed to clean out your savings account? Not long, according to data scientist, Nick Berry, founder of Data Genetics, a Seattle technology consultancy.
Berry analyzed passwords previously from released and exposed password tables and security breaches and filtered the results to just those that were exactly four digits long [0-9]. There are 10,000 possible combinations that the digits 0-9 can be arranged to form a four-digit code. Berry analyzed those to find which are the least and most predictable. He speculates that if users select a four-digit password for an online account or other web site, it's not a stretch to use the same number for their four-digit bank PIN codes.
What he found, he says, was a "staggering lack of imagination" when it comes to selecting passwords. Nearly 11% of the 3.4 million four-digit passwords he analyzed are 1234. The second most popular PIN in is 1111 (6% of passwords), followed by 0000 (2%). (Last year SplashData compiled a list of the most common numerical and word-based passwords and found that the "password" and "123456" topped the list.)
Berry says that a whopping 26.83% of all passwords could be guessed by attempting just 20 combinations of four-digit numbers (see first table). "It's amazing how predictable people are," he says.
We don't like hard-to-remember numbers and "no one thinks their wallet will get stolen," Berry says.
Days, months, years
Many of the commonly used passwords are, of course, dates: birthdays, anniversaries, the year you were born, etc. Indeed, using a year, starting with 19__ helps people remember their code, but it also increases its predictability, Berry says. His analysis shows that every single 19__ combination be found in the top 20% of the dataset.
"People use years, date of birth — it's a monumentally stupid thing to do because if you lose your wallet, your driver's license is in there. If someone finds it, they've got the date of birth on there. At least use a parent's date of birth [as a password]," says Berry.
Keyboard patterns
Somewhat intriguing was #22 on the most common password list: 2580. It seems random, but if you look at a telephone keypad (or ATM keypad) you'll see those numbers are straight down the middle — yet another sign we're uncreative and lazy password makers.
The least predictable password
The least-used PIN is 8068, Berry found, with just 25 occurrences in the 3.4 million set, which equates to 0.000744%. (See the second table for the least popular passwords.) Why this set of numbers? Berry guesses, "It's not repeating pattern, it's not a birthday, it's not the year Columbus discovered America, it's not 1776." At a certain point, these numbers at the bottom of the list are all kind of "the lowest of the low, they're all noise," he says.
A few other interesting tidbits from Berry:
-The most popular PIN code (1234) is more popular than the lowest 4,200 codes combined.
- People have even less imagination in choosing five-digit passwords — 28% use 12345.
- The fourth most popular seven-digit password is 8675309, the Tommy Tutone song.
-People love using couplets for their PINs: 4545, 1313, etc. And for some reason, they don't like using pairs of numbers that have larger numerical gaps between them. Combinations like 45 and 67 occur much more frequently than 29 and 37.
The 17th-most common 10-digit password is 3141592654 (for you non-math nerds, those are the first digits of Pi).
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Where did the mammoth US budget deficits come from?
Let's go back about a decade, when budget surpluses were predicted for the foreseeable future.
Somehow, the math went terribly wrong, by trillions of dollars. Here's an accounting of what happened.
9/29/12
By Peter Grier | Christian Science Monitor
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What’s the cause of the federal government’s huge budget deficits? That’s a question that is harder to answer in the particular than you might think. The general problem is obvious: Uncle Sam has been spending more money than he takes in. The specific reasons as to why this state of affairs exists are a mix of human decisions, economic circumstance, and the cumulative effect of time.
Context is important here. So let’s start with 2001. That year, theCongressional Budget Office looked out over the decade to come and saw ahead nothing but blue skies and black ink. It predicted that between 2001 and 2011 the US would run budget surpluses totaling $5.6 trillion.
That didn’t happen. Instead, the US racked up $6.1 trillion in deficits over that period. CBO’s prediction was a whopping $11.7 trillion off the mark. How did things go so wrong?
CBO has gone back and studied that, as it happens. In a paper published earlier this year, the group’s economists tried to pull out and compare the reasons for the multitrillion swing.
RECOMMENDED: Obama vs. Romney 101: 5 ways they differ on debt and deficits
One big problem was that CBO isn’t magical. Unblessed with the ability to predict the future, it didn’t accurately foresee the economic troubles of coming years, including the crash of the Great Recession. This meant that less tax money came in than anticipated. Overall, CBO says that about $3.3 trillion of its $11.7 prediction error can be attributed to “economic and technical changes” to projected revenues.
Then there were the tax cuts. President George W. Bush instigated most of these, but President Obama also pushed through Congress a payroll tax cut intended to pump money into a moribund economy. Tax cuts accounted for a further $2.8 trillion of the $11.7 trillion discrepancy. (Yes, the big kahuna here is Mr. Bush’s 2001 reduction in income-tax rates, which alone accounts for about $1.2 trillion in revenue foregone over the decade.)
Finally, there are the increases in outflows unpredicted by CBO. Between 2001 and 2011, increaseddiscretionary spending amounted to about $3 trillion. This category includes defense spending related to the wars in Iraq and Afghanistan, homeland security upgrades in the US, spending on food stamps and other hard-times safety net programs, and other general budget categories that are supposed to be approved annually by Congress.
Mandatory spending – a category that includes the Medicare prescription-drug program approved under Bush, the TARP bank bailout, and Mr. Obama’s economic stimulus package – went up by about $1.4 trillion during the period in question. (This type of outflow is called “mandatory” not because we had to do it, but because it results from formulas established by Congress instead of appropriated dollar totals.)
Charles Blahous, a former economic official in the Bush White House who is currently a Hoover Institution research fellow, has rolled all these numbers together into a simple pie chart. His answerto the question “where did the $11.7 trillion go?” is this: 27 percent went away due to projection inaccuracy; 24 percent went to tax cuts; and 49 percent can be accounted for by various forms of increased spending.
Yes, yes, but who’s to blame? It’s election season, after all, and accusations as to which party is responsible for most of this damage are as thick on the ground as October leaves after a windstorm. Asked why the debt has increased during his four years in office during a “60 Minutes” interview last week, Mr. Obama pointed a finger at his predecessor:
“Over the last four years, the deficit has gone up, but 90 percent of that is as a consequence of two wars that weren’t paid for, as a consequence of tax cuts that weren’t paid for, a prescription-drug plan that was not paid for, and then the worst economic crisis since the Great Depression.”
That answer is not accurate. Obama appeared to be talking about numbers that reflect the cumulative debt since 2001, not just his term. According to a White House-produced chart on the national debt, if you take the 10-year period of 2001 to 2011, Bush policies accounted for 55 percent of that figure. Obama-initiated policies such as the stimulus accounted for 11 percent, while the recession took care of the rest.
(The White House chart puts the total debt at $12.7 trillion, not $11.7 trillion, as does the CBO. The White House uses different underlying economic assumptions.)
But even that chart is something of an apples-to-mangoes comparison. Bush was president for eight years, and Obama for three. This is where the passage of time comes in – Bush’s tax cuts in particular had more time to accumulate and thus appear as a bigger part of the overall picture than the later-arriving Obama stimulus package.
Washington Post fact checker Glenn Kessler has looked at this in depth, and made his attempt at adding up who is responsible for the $1.3 trillion 2011 deficit alone. His rough estimate is that economic factors accounted for about 46 percent of this single-year shortfall, while Obama policies accounted for 44 percent, and Bush-era policies for about 10 percent.
Splitting up deficit causes by administration may be politically interesting. It’s possible, though, that it’s effectively pointless, in that it doesn’t lead to a better understanding of the choices that will confront US policymakers in years to come.
A more useful way of looking at things could be to reslice deficit numbers into cyclical and structural figures. The cyclical deficit is caused by stuff that varies from year to year, like food stamp spending, which is driven by unemployment. The structural deficit is welded into the structure of the federal budget like steel beams. It reflects chronic problems that only worsen, such as the rising cost of health care.
According to CBO, about $367 billion of the $1.3 trillion 2011 deficit was caused by cyclical stuff. Some $928 billion was structural. This is the part we really need to worry about, according to such budget watchdog groups as the Concord Coalition.
The most important of these structural factors should come as no surprise. They are the aging of the baby boom population, which will drive up the number of people enrolled in Social Security andMedicare; and the continued increase in health-care costs, which makes Medicare, Medicaid, and other government health-care programs more expensive on a per-person basis.
Population aging accounts for 64 percent of the cost growth of Social Security, Medicare, and Medicaid through 2035, according to a Concord Coalition analysis published earlier this year. Thirty-six percent is due to rising health-care costs.
“Borrowing our way through this is not a viable option because the rising cost of Social Security, Medicare and Medicaid is not a temporary blip. It gets bigger with time. Incurring permanently rising debt would result in staggering interest costs and ultimately a total debt burden that would crush the economy,” concludes the Concord Coalition analysis.
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9/29/12
By Peter Grier | Christian Science Monitor
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This article relates to the above article: U.S. Deficit
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Canadian Perspective
View From Canada:
Americans Don’t Get It, Yet
The U.S. Gigantic Deficits and mounting debt endanger the public good
By Brian Lee Crowley
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Twenty years ago Canadian politicians grasped the nettle of reform and sold the Canadian people on it. Those governments made tough decisions, the public loved them for it, and remain in their debt today.
Having just been in Washington talking about how Canada broke the back of its deficit, balanced its books, and thrived as a result, I can officially say that Americans just don’t get it. And not only do they not get it, they don’t even understand what it is they don’t get.
I am used to a “can do” attitude on the part of Americans, a belief that if problems are faced honestly and squarely, no obstacle is insurmountable. But all I heard was a long list of things that “can’t be done” and an even longer list of reasons why Canada’s success cannot be replicated south of the border.
No matter how you alter or iron it, the defeatist suit just doesn’t look right on the American physique.
As former Prime Minister Paul Martin and former Alberta and Saskatchewan finance ministers Stockwell Day and Janice MacKinnon and I all told them, their problem appears to them insoluble because they are thinking about it the wrong way.
The defeatist suit just doesn’t look right on the American physique.
They think deficits are a sideshow, and what everybody cares about is taxes, social programs, defense spending, and entitlements. Our reply: responsible political leaders have to shift that discussion because all of those things are themselves endangered by deficits and mounting debt.
As Martin so eloquently put it, Canadians came to understand that if they wanted to save health care, they had to cut everything, including health care, so that it could be put on a sustainable footing. And they had to do it when conditions, while bad, were not dire. You can’t wait because, eventually, the situation will worsen and the decisions as to what to cut will become more difficult.
Many Canadians do not realize the immense debt we owe to the generation of politicians in the 1990s: New Democrats in Saskatchewan, Tories in Alberta and Ontario, Liberals in Ottawa and British Columbia, and others elsewhere who grasped the nettle of reform and got out and sold Canadians on the idea that the deficit was a danger to all they held dear, and that sacrifice was necessary to preserve and protect so much that they valued.
Progress on the deficit in Canada only became possible when the parties ceased to treat it as a matter of partisan contention, but rather of vital national interest. That lesson is one Americans and their political class will one day have to shoulder.
Define as a national issue, the deficit therefore requires a national solution. Everyone contributed to the mess, and everyone will have to contribute to cleaning it up. In Canada, no programs were sacrosanct from spending cuts: not defense, nor transportation subsidies, nor social programs.
Some taxes went up, but reform had to fall most heavily on spending. Canadians learned when the GST (goods and services tax) was introduced that simply increasing revenue wouldn’t make the deficit go away, not least because politicians too often see new revenue as a reason to spend. Canada had a spending problem, not a revenue problem, and it required less spending to solve it.
All of the former finance ministers with me in Washington also agreed that it took a hard-nosed but thoughtful approach to cutting spending to win Canadians’ support. Every bit of spending was measured against objective yardsticks like protecting the central roles of government, value for money, and affordability.
And of course a simple, objective, easy-to-understand target caught the public imagination and focused everyone’s efforts. Canada as a nation became obsessed with getting the deficit to zero. Every budget season Canadians looked to see what progress had been made. And virtually every government followed Martin’s advice: set a tough target for progress each year, but make very certain you meet that target. Every time you fall short you damage your credibility and give ground to doubt and despair.
One day American politicians will understand all this, and when they do, they’ll get the most important lesson of all: every government that grasped the nettle of reform didn’t merely defeat the deficit, but enjoyed tremendous public support and was handily re-elected. They dished out tough medicine, but did it on the promise of the right kind of hope and change: a hope that was neither vague nor rhetorical, and a change that was both practical and immediate.
Almost 20 years later, Canadians still owe those politicians from the ’90s a debt of gratitude.
Brian Lee Crowley (twitter.com/brianleecrowley) is the managing director of the Macdonald-Laurier Institute, an independent nonpartisan public policy think tank in Ottawa: www.macdonaldlaurier.ca. Copyright Troy Media (troymedia.com).
Source: Epoc Times, 9/27/12
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October 28, 2012
By Robert H. Frank - an economics professor at the Johnson Graduate School of Management at Cornell University
When Low Taxes Don’t Help the Rich
AT first glance, money’s growing influence in politics appears impossible to challenge because of a powerful positive-feedback loop. Yet hope remains.
Robert H. Frank is an economics professor at the Johnson Graduate School of Management at Cornell University.
Although big-money donors are a diverse group, many of them want lower tax rates for themselves and less stringent regulations for their businesses — and they’ve been brilliantly effective in getting them. Their success has increased their incomes still further, allowing them to make even larger contributions and to demand even bigger favors. This vicious circle was strengthened considerably by the Supreme Court’s decision in the Citizens United case. And so, each year, the possibility of any new laws to curb money’s influence appears to recede.
But as the economist Herbert Stein once joked, “If something cannot go on forever, it will stop.” Eventually, the social and economic consequences of further growth in income inequality may become so severe that even the most generously financed candidates won’t prevail against reform-minded opponents.
Alternatively, extreme inequality might one day spawn a violent revolution, as has happened in many other countries. Such routes to change still seem distant, however, and are hardly something to hope for.
There is a more encouraging possibility: in time, wealthy political donors may become convinced that their contributions poorly serve even their own narrow interests.
Lower tax rates have affected these donors in two opposing ways. On the positive side, they have supported higher consumption in the private sector. But on the downside, the resulting budget deficits have reduced the quantity and quality of public services. Compelling evidence suggests that the negatives have been much larger, and the positives considerably smaller, than many donors have expected.
Through private schools, gated communities, personal aircraft and other adaptations, the wealthy have been insulated from many costs of a decaying public sphere. But ill effects remain. Declining quality of public schools, for example, makes it harder for businesses to recruit productive workers, and a shrinking middle class makes it harder to sell their products in volume.
Many other effects of budget deficits also cut across the income divide. First, consider two extreme examples: When a poorly maintained bridge collapses, rich drivers are no less likely to die than poor ones. And if cutbacks in the Energy Department’s program for locking down loosely guarded nuclear materials in the former Soviet Union one day enable terrorists to detonate a dirty bomb in Manhattan, hedge fund managers and their families will suffer along with everyone else.
But important, if less dramatic, losses occur often in real life, because the process of social framing often exaggerates the gains from private spending. When all families stage more elaborate celebrations for special occasions — weddings, for example — the main effect is simply to raise the bar that qualifies an event as special.
A RELATED distortion is easily seen in a thought experiment:
Let’s say that two societies differ only in their mixes of public and private spending. In one society, lower taxes on the wealthy allow them to drive very fine cars — say, $180,000 Bentleys. The streets and highways in this society, however, are riddled with foot-deep potholes.
In the other society, the wealthy pay higher taxes that support well-maintained roads, but drive $120,000 BMWs. Some car buffs will grumble, but for argument’s sake, let’s assume that all view the Bentley as the better car.
In which society would the wealthy be happier? Because product-quality improvements cost much more to achieve beyond some point, the absolute quality of a $180,000 car may be only slightly higher than one costing $120,000. And because not even the most sophisticated automotive suspensions can neutralize deep potholes, it’s little wonder that most people think the BMW drivers would be happier, not to mention safer.
That conclusion is reinforced by evidence that consumption standards are highly local. The BMW drivers in the second society don’t often mingle with the Bentley drivers in the first, and are thus unlikely to feel deprived for having less-expensive cars.
If the wealthy often overestimate the attractions of higher private spending, they’re also likely to overestimate the regulatory burden on their businesses. Compliance with regulations, of course, can be costly. And if only one company has to comply, its profits may indeed decline sharply. But regulation applies to all companies in an industry, which typically allows them to cover their costs by raising prices. So if regulation promotes a safer, cleaner environment whose benefits exceed those broadly shared costs, everyone — even a business owner — is ahead in the long run.
Because the market forces causing greater inequality are still playing out, the wealthy will continue to have more power to influence politics. So if donors stick to their strategy of supporting candidates who favor lower taxes and fewer regulations, they’re likely to prevail indefinitely.
REFORMERS castigate wealthy donors for supporting self-serving policies. But, instead, the reformers could call attention to evidence that the donors themselves would fare better, in purely practical terms, without the tax cuts and deregulation they’ve been promoting.
You needn’t be a cynical economist to believe that this second strategy has brighter prospects.
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The above article by Robert H. Frank - an economics professor at the Johnson Graduate School of Management at Cornell University.
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Thousands of U.S. Millionaires Collect Unemployment
Is this waste or does it make sense? What's your opinion? Before you decide, please study the whole article.
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October 2012
A new report shows that some 2,400 millionaires received unemployment insurance benefits during the economic downturn, a number that has caught the attention of politicians who funded extensions of benefits for up to 99 weeks as the economy crumbled.
In 2009, 2,362 millionaires received unemployment benefits, down from 2,840 the year prior, according to a study from the Congressional Research Service, a non-partisan arm of U.S. Congress that provides policy and legal analysis. Of the 2,362 more than 1,000 receiving unemployment benefits had a household adjusted gross income of $1.5 million in 2009.
The report titled "Receipt of Unemployment Insurance by Higher-Income Unemployed Workers" found that 0.02 percent of tax filers that received unemployment benefits in 2009 were millionaires. A total of $20.8 million in unemployment benefits went to this group.
"It sounds scandalous when you hear that millionaires are going to collect unemployment insurance," Bill Frenzel, guest scholar at the Brookings Institute and former Republican member of Congress, told ABC News. "On the other hand, millionaires get unemployed too and have made payments into the unemployment insurance."
In 2010, 4.6 million people were kept out of poverty due to unemployment benefits, according to the Center on the Budget and Policy Priorities.
Frenzel says if they made a million dollars in income the year prior, "they could probably stand being barred from unemployment this year."
And, apparently one member of Congress agrees.
"Sending millionaires unemployment checks is a case study in out-of-control spending. Providing welfare to the wealthy undermines the program for those who need it most while burdening future generations with senseless debt," Republican Senator Tom Coburn, M.D. of Oklahoma said in a statement to ABC News. Based on the report from the Senator's office, millionaires received $74 million in unemployment insurance from 2005 to 2009.
According to the Center on Budget and Policy Priorities, the average individual collects about $300 per week from unemployment compensation.
Early last year, Sen. Coburn introduced " Ending Unemployment to Jobless Millionaires Act of 2011," which is currently languishing in the House of Representatives, a bill which sought to halt payment of federal funds for unemployment compensation to individuals whose "resources in the preceding year" was $1 million or more.
But millionaires aren't the only individuals to benefit from unemployment benefits. A few other high-income brackets receive compensation from the government. More than 8,000 tax filers making $500,000 to $1,000,000 received unemployment benefit income in 2009 and more than 900,000 tax filers that made $100,000 to $500,000
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By Lyneka Little | ABC News
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MORTGAGES
Housing
Help for the Underemployed
Source:
The New York Times
By VICKIE ELMER
9/23/12
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ONE of the best ways for homeowners to cut costs is to refinance their mortgage, but qualifying for a new loan that would lower monthly payments can be difficult for those who are underemployed.
Besides earning less than they did in a previous job, these homeowners often have accumulated debt, and if they are living in an area where home values are depressed, they have the added burden of watching their home equity shrink. Both factors can adversely affect their ability to qualify for a refinancing.
Last month, eight million people worked part time involuntarily because their hours had been cut back or they couldn’t find full-time work, according to a recent report by the Bureau of Labor Statistics, which reported separately that of those who did find full-time work, one in five earned at least 20 percent less.
The “grave” condition of the job market led the Federal Reserve to announce recently that it would institute an economic stimulus planin which each month it will buy $40 billion in mortgage-backed securities.
Underemployed homeowners “want to refinance to make the mortgage more affordable,” said Martha Cedeno-Ross, a counselor with Neighborhood Housing Services in Waterbury, Conn., adding that many cannot meet lenders’ required debt-to-income ratios, because “they have so much credit-card debt or other liabilities.”
Total debts, including the mortgage and all other bills, usually cannot exceed 45 percent of total income, industry experts say.
Adding on a second part-time job just before beginning the application process won’t necessarily improve their situation, said Cari Sweet-Kristopolis, an assistant vice president of the Jersey Mortgage Corporation in Parsippany, because guidelines of government-sponsored agencies like Fannie Mae and Freddie Mac require borrowers to have held their second jobs for at least 12 months, and ideally 24, before refinancing or obtaining a home loan.
But, “being at your desk a year and getting a raise, absolutely it will help you,” Ms. Sweet-Kristopolis said.
What will also help is a change in the family income — say a spouse has found a higher-paying job or was promoted, or you inherited an annuity or another source of steady income. (Short-term sources like disability payments usually will not be counted in the income tally.)
Mrs. Cedeno-Ross suggests that homeowners pay down their credit-card balances before applying to refinance and also that they seek the help of a housing counselor approved by the Department of Housing and Urban Development.
Two federal programs that could be useful for refinancing are the HARP, or Home Affordable Refinance Program, which is intended to help financially troubled borrowers stay in their homes, and the Federal Housing Authority Streamlined Refinancing, which is available to people who have their loans through the Federal Housing Administration.
HARP was created to simplify refinancing and place homeowners in loans with less onerous terms; it generally focuses more on a borrower’s repayment history than income.
Some states, like Connecticut, also offer home refinancing programs for homeowners who are “underwater,” or owe more on their mortgages than their homes are worth.
“Some banks offer their own internal streamlining as well,” Mrs. Cedeno-Ross said.
She suggested that homeowners with financial problems keep their lenders abreast of their job situation.
They could also ask for a loan modification, which typically would lower the interest rate and may allow for any overdue payments to be added onto the loan’s balance, Mrs. Cedeno-Ross said.
“Know your options, understand your options,” she said, “then know what is going to be best for you.”
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10 ways to control
your home insurance cost
Home insurance costs seem to go up every year. But going without insurance is too risky.
So, we grit our teeth and pay the bill each year. Of course, we could competitively shop the policy every year, but that's onerous. It takes a lot of study to understand the difference between policies. Often it's easier to stay with the policy that has the appropriate coverage. And longer-term policyholders can earn discounts for longevity.
Here are 10 ways that you can control your home insurance costs
Increase deductibles Insurance isn't meant to cover the small stuff. Set deductibles as high as you can
afford. For example, a $150,000 house could have a $1500 or 1% deductible.
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Five proven ways to cut mortgage costs
Want to reduce your mortgage bills, then consider these surefire tips to help you cut your mortgage costs.
Let's not sugarcoat it: High mortgage costs can be a real pain in the butt.In fact, some 84 percent of homeowners say mortgage costs are a big concern for them and that "high interest rates, high payments, and taxes and escrow are the top three most frustrating issues regarding consumers' current mortgages," according to a September 2012 mortgage study conducted by Carlisle & Gallagher Consulting Group, a management and technology consulting firm.
The good news: There are ways to alleviate some of this financial stress.
Keep reading for some proven tips on how to cut your mortgage costs.
Tip #1 - Refinance Your Mortgage
What makes refinancing your mortgage a buck-saving option?
For starters, refinancing, which is the process of paying off your existing mortgage with a new one, could help you lower your monthly payments if you qualify for a lower interest rate.
Perhaps that's why Joffrey Long, president of Southwestern Mortgage in Granada Hills, California, says that refinancing is a viable option to help lower mortgage expenses.
"Any consumer, at any time, who has a mortgage and is paying interest should be aware of the opportunity to refinance," says Long, who is also the education chair for the California Mortgage Association.
And the opportunity to refinance could result in huge savings.
Where's the Proof? Consider this example from "A Consumer's Guide to Mortgage Refinancings" published by the Federal Reserve Board, which oversees national monetary policy and banks. It compares monthly payments on a 30-year fixed-rate loan of $200,000 at 5.5 percent and 6 percent:
Monthly payment @ 6 percent$1,199Monthly payment @ 5.5 percent$1,136The difference each month is$63Over 10 years, you will have saved$7,560That's a considerable amount of savings for just a .5 percent interest rate drop, isn't it? Now just imagine how big your savings would be if you could lower your interest rate by 1 or 2 percent.
However, it's good to keep in mind that refinancing is not for everyone, says Long, and that costs and long-term property plans are things to consider before taking this big step.
Tip #2 - Shop Around for a Super-Low Interest Rate
Whether you're perusing for your first home loan or thinking about refinancing your existing mortgage, shopping around is a key cost-cutter when it comes to your mortgage payments.
According to Long, shopping around is one of the most important ways for homeowners to cut mortgage costs, but unfortunately, some people overlook it because they're too comfortable with their current bank.
"There's a comfort level that people have with big banks," Long says, "and it makes sense because they've been with the bank for many years. But, it's a good idea to check with independent mortgage bankers and lenders to make sure that the rates you're receiving are indeed competitive."
Where's the Proof? "Shopping, comparing, and negotiating may save you thouers and banks, how will you truly know if the rates you're receiving are indeed the lowest?
Tip #3 - Take a Second Glance at Your Home Value
When the value of your property goes down, it's not the best news in the world. One upside, however, is that you may not have to pay as much in property taxes, and that could be great news.
And because property values fluctuate up and down depending on the real estate market, it's always a good idea to reassess your home's worth to make sure you're not paying more than you need to in property taxes.
In fact, "After several years without a reassessment, some properties will be over-assessed and some will be under-assessed," notes the New York State Department of Taxation and Finance's website. "This is because some properties will have increased in value, while others may have decreased or stayed the same. Without a reassessment, all of the properties will continue to pay the same amount of taxes."
That's why Long says reassessing your home is important. "If your home is assessed at more than it's worth, a reassessment could help reduce property taxes," he says.
Tip #4 - Give Your Credit Score a Healthy Boost
Oh, credit scores...they can make life amazing - or incredibly miserable. And when it comes to cutting your mortgage costs, a good credit score could be the difference between beautifully low or unpleasantly high payments.
Why? Because according to a consumer credit guide published by Federal Reserve Board, your credit score is used by lenders to evaluate how you handle your financial responsibilities. So, if you've been rather reckless with your finances, you'll likely have a lower credit score which is often reflected in a higher interest rate. Likewise, the higher your credit score, the lower your rate will be.
And this is precisely why raising your credit score is always a good idea.
"Whether you buy or refinance, raising credit does help decrease mortgage rates," says Long.
A good credit score can definitely work in your favor. However, Long warns that boosting your score is a long term proposition, so it may take awhile before you can reap the benefits of an improved score. "It's not just going to go up overnight, so by the time you've raised your credit score, the low rate you want may no longer exist."
Long recommends checking with your lender to find out what kind of score is necessary to qualify for the loans and rates you want - then figure out if the effort will be worth it.
Tip #5 - Make Extra Mortgage Payments
You're probably thinking this is a crazy and contradictory suggestion, but trust us - it's not.
No, this tip is geared towards people who may have a little extra money to spend and are looking to invest it wisely. In this case, by paying off their mortgage quickly.
In fact, doing so will reduce future interest costs and save you money, notes a 2011 consumer mortgage report by the Federal Deposit Insurance Corporation (FDIC), an agency designed to promote public confidence in banks.
"By adding a little more money to your monthly payment or sending all or part of your payment in sooner than you're scheduled to, you can repay your loan faster and cut your total interest costs by thousands of dollars over the life of the loan," said FDIC's associate director, Luke Brown, in the 2011 consumer report.
Where's the Proof? Let's say you had a $200,000, 30-year fixed-rate mortgage at 6 percent, with a monthly payment of $1,199. If you made just one extra payment a year (13 instead of 12), you could save $47,000 in interest and cut five years from your loan term, says Zillow in its report "7 easy ways to trim your mortgage costs."
Of course, before deciding to embark on this route, you should first determine if you have the funds necessary - and then some, says Long. He recommends having at least six months worth of household income saved up for emergencies before making any extra payments.
_______________________________________
10 Mortgage Misconceptions
Date: May 2013
Click green for further info
Mortgages are tricky and often hard to understand. Because most people only purchase a home every five to seven years, prospective home buyers understandably don’t spend a lot of time in the interim educating themselves about mortgages and the mortgage process.
With the real estate market picking up and mortgage rates prime for refinancing, Zillow has compiled a list of common mortgage misconceptions based off the results of the just released 2013 Mortgage IQ Survey.
Misconception No. 1: Your interest rate reflects the true cost of your mortgageYour annual percentage rate (APR) is actually the figure that represents the true cost of your mortgage. It is inclusive of your interest rate, points, mortgage insurance (when applicable) and other fees, including origination and underwriting fees. It does not include the cost of your homeowners insurance policy. The APR is typically higher than your interest rate because it incorporates the rate and the fees. In fact, when shopping for a mortgage, it is best to compare loans based on APR instead of the interest rate because it gives a better sense of the total cost over the life of the loan.
Misconception No. 2: Mortgage rates are only released once per dayMortgage rates for all types of mortgages can change frequently, sometimes dramatically, throughout the day. Because of the rapid changes in mortgage rates and a lender’s ability to control what is offered, it is important to shop around for the best rates. Getting multiple loan quotes is highly recommended.
Misconception No. 3: All lenders are required by law to charge the same fees for appraisals and credit reportsThere are no laws that require lenders to charge the same fees for services such as appraisals or credit reports. In fact, in order to make their loan quotes more competitive, some lenders may waive charges for such services. Conversely, some lenders may charge higher fees for these services, so it’s important to shop around.
Misconception No. 4: I must get my mortgage through the same lender I was pre-approved withA pre-approval is a conditional agreement that estimates the size of the home loan a lender would fund for you. It typically involves income verification and a credit check. However, you are under no obligation to proceed with the lender that gave you the pre-approval. Make sure you get at least three loan quotes before proceeding with a mortgage.
Misconception No. 5: You will almost always get the best mortgage interest rates at the bank where you have a checking accountWhile some banks do give their customers discounts, it’s unlikely your bank will offer the best interest rate available simply because you bank there. To get a competitive mortgage rate and terms, get quotes from multiple lenders either in person or online — including your bank — and pick the one that works best for you.
Misconception No. 6: When taking out a mortgage with your spouse, lenders will look at each of your credit reports equally when determining the interest rate you qualify forWhen applying jointly for a mortgage, lenders will pull your credit scores from each of the three major credit reporting agencies: Experian, Equifax and TransUnion. They’ll then take the middle score of each set and use the lower of the two to help determine your mortgage interest rate. This means that the least creditworthy borrower will have the greatest effect on your monthly payment. It does not matter who the primary or secondary borrowers are.
Misconception No. 7: You cannot get a home loan with less than a 5 percent down paymentIt is a common misconception that you need to put down 10 percent, 15 percent or even 20 percent on a home, especially in light of the recent housing crash. But with as little as 3.5 percent down, you can often obtain a mortgage through the Federal Housing Administration (FHA). FHA loans have become a popular loan option for those who may not have a large down payment or have blemishes in their credit history. FHA loans are available to everyone, not just first-time home buyers. (Find out more about the advantages and disadvantages of an FHA loan here.)
There are also alternative loan programs through other agencies, including the Department of Veterans Affairs (VA) and the United States Department of Agriculture (USDA). These loans also require little-to-no money down.
Misconception No. 8: If you go through a short sale or foreclosure, you must wait 7 years before getting another home loanIn most cases, to buy a home after a short sale, you’ll typically only need to wait 2-4 years depending on your down payment and the loan type you select. The waiting period after a foreclosure is longer: Typically you’ll need to wait 3-7 years before getting another home loan. Even if you can afford to get a mortgage right now, you’ll need to have a good credit score, which can be difficult to rebuild in just a few years. Unique circumstances can lead to different outcomes, so make sure to check with a lender or two.
Misconception No. 9: If you are underwater on your home loan, you are unable to refinanceIt is estimated that millions of homeowners who are underwater and current on their mortgage can refinance using one of two special government programs. The first, the Home Affordable Refinance Program (HARP), is available to homeowners who have a loan backed by Fannie Mae or Freddie Mac. The second program, FHA Streamline Refinance, has recently been modified to help homeowners with loans insured by the Federal Housing Administration (FHA). Both programs help homeowners refinance into lower interest rate loans and may help dramatically lower payments without very much cost to the borrower. Zillow Mortgage Marketplace is the only online mortgage marketplace where you can get loan quotes for HARP and FHA Streamline. As an added bonus, it is the largest mortgage marketplace where you can anonymously get loan quotes, meaning you don’t enter any personally identifiable information and therefore cannot get spammed and hounded by lenders who were sold you contact information. See if you may qualify.
Misconception No. 10: You can only refinance your home loan once every 12 monthsWith conforming loans backed by Fannie Mae or Freddie Mac (the vast majority of loans today), you can refinance as frequently as you’d like so long as you do not take cash out when you refinance and are just refinancing to lower the interest rate and/or term of your mortgage. The rule of thumb is to wait until the difference between your current interest rate and the available interest rate would save you enough money each month to cover the costs of refinancing in 2 years. The amount of time that you plan on being in the home should be considered, as well. In general, refinancing will be more financially beneficial the longer you are in the home.
Use the (click: refinance calculator to determine how long it will take to break even on the costs of refinancing.
If any of the misconceptions had your name written all over it, visit the Zillow Mortgage Marketplace Help Center, where you can brush up on everything mortgage before you refinance or purchase your next home. You can also take the Mortgage IQ Quiz for yourself, or send it to a friend who is in the market; they’ll thank you.
Related:
Home Affordable Refinance Program (HARP)
www.makinghomeaffordable.gov › ... › Programs › Lower Your Rates
HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process, ...
Click green for further info
Source: Zillow Mortgage Marketplace
_______________________________________________
Banks Find More Foreclosure Problems
Date: March 4, 2013
Click green for further info
Big banks discovered they wrongfully foreclosed on more than 700 military members during the housing crisis and seized homes from about two dozen other borrowers who were current on their mortgage payments, Jessica Silver-Greenberg and Ben Protess report in The New York Times. The banks — Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — found the foreclosures after regulators ordered them to examine mortgages as part of a multibillion-dollar federal settlement, according to people with direct knowledge of the findings.
“The analysis, which was turned over to regulators in recent days, provides the first detailed glimpse into the extent of wrongful foreclosures amid the collapse of the housing market,” Ms. Silver-Greenberg and Mr. Protess write. “While lenders previously acknowledged that they relied on faulty documents to push through foreclosures, the banks claimed borrowers were rarely evicted by mistake, including military personnel protected by federal law.” The new revelations “could provide fresh ammunition for Wall Street critics and prompt regulators to adopt a tougher stance.”
Banks had previously resolved claims of improper foreclosures on military members, but the problems have turned out to be more extensive than those cases indicated, raising questions about a deal that was finalized last week. “When regulators forced them to take a close look at their loans, JPMorgan, Wells Fargo and Bank of America, the largest loan servicers, each discovered about 200 military members whose homes were wrongfully foreclosed on in 2009 and 2010, according to the people with direct knowledge of the findings. Citigroup had at least 100 such foreclosures. The foreclosures violate the Servicemembers Civil Relief Act, a federal law requiring banks to obtain court orders before foreclosing on active-duty members.”
________________________________________________________________________
your home insurance cost
Home insurance costs seem to go up every year. But going without insurance is too risky.
So, we grit our teeth and pay the bill each year. Of course, we could competitively shop the policy every year, but that's onerous. It takes a lot of study to understand the difference between policies. Often it's easier to stay with the policy that has the appropriate coverage. And longer-term policyholders can earn discounts for longevity.
Here are 10 ways that you can control your home insurance costs
Increase deductibles Insurance isn't meant to cover the small stuff. Set deductibles as high as you can
afford. For example, a $150,000 house could have a $1500 or 1% deductible.
- Make improvements. Install a backup generator, a whole house surge protector, and smoke/CO2 detectors. Refit roof trusses with strapping.
Opt for hip roofs. Hip roofs offer the most slippery shape in high wind settings or storms. You don't want areas that can catch the wind and are prone to damage.
Locate intelligently. Stay away from flood prone areas. Look for brick or stone houses in high wind areas and wooden frame houses in earthquake-prone areas. Locate in communities with professional fire departments. Have your home inspected before purchase. Also check the Comprehensive Loss Underwriting Exchange report of your home before purchase to see insurance claim history.
Do you want to save on your home insurance costs? Click to compare rates now.
Don't make small claims. Frequent claims can drive up rates. Don't sweat the small stuff. Insurance is meant to protect from catastrophic loss.
Reinforce your home. Install storm shutters, reinforce the roof, retrofit older homes for earthquake resistance, and modernize heating, plumbing, electrical to reduce risk of fire and water damage.
Improve home security. Add smoke detectors, burglar alarms, and deadbolts.
Exclude land value. It's unlikely the land beneath your home will be stolen or burned in a fire. Insure the value of the home only.
Combine policies with one insurer. Most insurance companies offer discounts for multiple policy households. Combine home and auto insurance. Then buy an umbrella liability policy over both to optimize cost.
Eliminate unnecessary coverage. Don't buy coverage you don't need: earthquake coverage is unnecessary in most zones; don't schedule jewelry if it's inexpensive, etc.
Talk to your agent about other discounts. Sometimes there is a discount for good drivers, or retirees, or people with good credit ratings.
Conversely, be sure you have enough insurance. Don't be penny-wise and pound-foolish. Saving a few dollars a year will seem silly if you find out you've skimped on coverage that later costs you thousands. Be sure to read the policy and ask your agent a lot of questions so you understand what coverage you do and don't have.
Paying attention to your home insurance can ensure that you have the optimal coverage with the right risk/cost balance. That's smart.
Source: - Steve Odland, a Forbes contributor, was chairman and CEO of Office Depot and AutoZone. He's now an adjunct professor at Lynn University. _____________________________________________________________________________________
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Five proven ways to cut mortgage costs
Want to reduce your mortgage bills, then consider these surefire tips to help you cut your mortgage costs.
Let's not sugarcoat it: High mortgage costs can be a real pain in the butt.In fact, some 84 percent of homeowners say mortgage costs are a big concern for them and that "high interest rates, high payments, and taxes and escrow are the top three most frustrating issues regarding consumers' current mortgages," according to a September 2012 mortgage study conducted by Carlisle & Gallagher Consulting Group, a management and technology consulting firm.
The good news: There are ways to alleviate some of this financial stress.
Keep reading for some proven tips on how to cut your mortgage costs.
Tip #1 - Refinance Your Mortgage
What makes refinancing your mortgage a buck-saving option?
For starters, refinancing, which is the process of paying off your existing mortgage with a new one, could help you lower your monthly payments if you qualify for a lower interest rate.
Perhaps that's why Joffrey Long, president of Southwestern Mortgage in Granada Hills, California, says that refinancing is a viable option to help lower mortgage expenses.
"Any consumer, at any time, who has a mortgage and is paying interest should be aware of the opportunity to refinance," says Long, who is also the education chair for the California Mortgage Association.
And the opportunity to refinance could result in huge savings.
Where's the Proof? Consider this example from "A Consumer's Guide to Mortgage Refinancings" published by the Federal Reserve Board, which oversees national monetary policy and banks. It compares monthly payments on a 30-year fixed-rate loan of $200,000 at 5.5 percent and 6 percent:
Monthly payment @ 6 percent$1,199Monthly payment @ 5.5 percent$1,136The difference each month is$63Over 10 years, you will have saved$7,560That's a considerable amount of savings for just a .5 percent interest rate drop, isn't it? Now just imagine how big your savings would be if you could lower your interest rate by 1 or 2 percent.
However, it's good to keep in mind that refinancing is not for everyone, says Long, and that costs and long-term property plans are things to consider before taking this big step.
Tip #2 - Shop Around for a Super-Low Interest Rate
Whether you're perusing for your first home loan or thinking about refinancing your existing mortgage, shopping around is a key cost-cutter when it comes to your mortgage payments.
According to Long, shopping around is one of the most important ways for homeowners to cut mortgage costs, but unfortunately, some people overlook it because they're too comfortable with their current bank.
"There's a comfort level that people have with big banks," Long says, "and it makes sense because they've been with the bank for many years. But, it's a good idea to check with independent mortgage bankers and lenders to make sure that the rates you're receiving are indeed competitive."
Where's the Proof? "Shopping, comparing, and negotiating may save you thouers and banks, how will you truly know if the rates you're receiving are indeed the lowest?
Tip #3 - Take a Second Glance at Your Home Value
When the value of your property goes down, it's not the best news in the world. One upside, however, is that you may not have to pay as much in property taxes, and that could be great news.
And because property values fluctuate up and down depending on the real estate market, it's always a good idea to reassess your home's worth to make sure you're not paying more than you need to in property taxes.
In fact, "After several years without a reassessment, some properties will be over-assessed and some will be under-assessed," notes the New York State Department of Taxation and Finance's website. "This is because some properties will have increased in value, while others may have decreased or stayed the same. Without a reassessment, all of the properties will continue to pay the same amount of taxes."
That's why Long says reassessing your home is important. "If your home is assessed at more than it's worth, a reassessment could help reduce property taxes," he says.
Tip #4 - Give Your Credit Score a Healthy Boost
Oh, credit scores...they can make life amazing - or incredibly miserable. And when it comes to cutting your mortgage costs, a good credit score could be the difference between beautifully low or unpleasantly high payments.
Why? Because according to a consumer credit guide published by Federal Reserve Board, your credit score is used by lenders to evaluate how you handle your financial responsibilities. So, if you've been rather reckless with your finances, you'll likely have a lower credit score which is often reflected in a higher interest rate. Likewise, the higher your credit score, the lower your rate will be.
And this is precisely why raising your credit score is always a good idea.
"Whether you buy or refinance, raising credit does help decrease mortgage rates," says Long.
A good credit score can definitely work in your favor. However, Long warns that boosting your score is a long term proposition, so it may take awhile before you can reap the benefits of an improved score. "It's not just going to go up overnight, so by the time you've raised your credit score, the low rate you want may no longer exist."
Long recommends checking with your lender to find out what kind of score is necessary to qualify for the loans and rates you want - then figure out if the effort will be worth it.
Tip #5 - Make Extra Mortgage Payments
You're probably thinking this is a crazy and contradictory suggestion, but trust us - it's not.
No, this tip is geared towards people who may have a little extra money to spend and are looking to invest it wisely. In this case, by paying off their mortgage quickly.
In fact, doing so will reduce future interest costs and save you money, notes a 2011 consumer mortgage report by the Federal Deposit Insurance Corporation (FDIC), an agency designed to promote public confidence in banks.
"By adding a little more money to your monthly payment or sending all or part of your payment in sooner than you're scheduled to, you can repay your loan faster and cut your total interest costs by thousands of dollars over the life of the loan," said FDIC's associate director, Luke Brown, in the 2011 consumer report.
Where's the Proof? Let's say you had a $200,000, 30-year fixed-rate mortgage at 6 percent, with a monthly payment of $1,199. If you made just one extra payment a year (13 instead of 12), you could save $47,000 in interest and cut five years from your loan term, says Zillow in its report "7 easy ways to trim your mortgage costs."
Of course, before deciding to embark on this route, you should first determine if you have the funds necessary - and then some, says Long. He recommends having at least six months worth of household income saved up for emergencies before making any extra payments.
_______________________________________
10 Mortgage Misconceptions
Date: May 2013
Click green for further info
Mortgages are tricky and often hard to understand. Because most people only purchase a home every five to seven years, prospective home buyers understandably don’t spend a lot of time in the interim educating themselves about mortgages and the mortgage process.
With the real estate market picking up and mortgage rates prime for refinancing, Zillow has compiled a list of common mortgage misconceptions based off the results of the just released 2013 Mortgage IQ Survey.
Misconception No. 1: Your interest rate reflects the true cost of your mortgageYour annual percentage rate (APR) is actually the figure that represents the true cost of your mortgage. It is inclusive of your interest rate, points, mortgage insurance (when applicable) and other fees, including origination and underwriting fees. It does not include the cost of your homeowners insurance policy. The APR is typically higher than your interest rate because it incorporates the rate and the fees. In fact, when shopping for a mortgage, it is best to compare loans based on APR instead of the interest rate because it gives a better sense of the total cost over the life of the loan.
Misconception No. 2: Mortgage rates are only released once per dayMortgage rates for all types of mortgages can change frequently, sometimes dramatically, throughout the day. Because of the rapid changes in mortgage rates and a lender’s ability to control what is offered, it is important to shop around for the best rates. Getting multiple loan quotes is highly recommended.
Misconception No. 3: All lenders are required by law to charge the same fees for appraisals and credit reportsThere are no laws that require lenders to charge the same fees for services such as appraisals or credit reports. In fact, in order to make their loan quotes more competitive, some lenders may waive charges for such services. Conversely, some lenders may charge higher fees for these services, so it’s important to shop around.
Misconception No. 4: I must get my mortgage through the same lender I was pre-approved withA pre-approval is a conditional agreement that estimates the size of the home loan a lender would fund for you. It typically involves income verification and a credit check. However, you are under no obligation to proceed with the lender that gave you the pre-approval. Make sure you get at least three loan quotes before proceeding with a mortgage.
Misconception No. 5: You will almost always get the best mortgage interest rates at the bank where you have a checking accountWhile some banks do give their customers discounts, it’s unlikely your bank will offer the best interest rate available simply because you bank there. To get a competitive mortgage rate and terms, get quotes from multiple lenders either in person or online — including your bank — and pick the one that works best for you.
Misconception No. 6: When taking out a mortgage with your spouse, lenders will look at each of your credit reports equally when determining the interest rate you qualify forWhen applying jointly for a mortgage, lenders will pull your credit scores from each of the three major credit reporting agencies: Experian, Equifax and TransUnion. They’ll then take the middle score of each set and use the lower of the two to help determine your mortgage interest rate. This means that the least creditworthy borrower will have the greatest effect on your monthly payment. It does not matter who the primary or secondary borrowers are.
Misconception No. 7: You cannot get a home loan with less than a 5 percent down paymentIt is a common misconception that you need to put down 10 percent, 15 percent or even 20 percent on a home, especially in light of the recent housing crash. But with as little as 3.5 percent down, you can often obtain a mortgage through the Federal Housing Administration (FHA). FHA loans have become a popular loan option for those who may not have a large down payment or have blemishes in their credit history. FHA loans are available to everyone, not just first-time home buyers. (Find out more about the advantages and disadvantages of an FHA loan here.)
There are also alternative loan programs through other agencies, including the Department of Veterans Affairs (VA) and the United States Department of Agriculture (USDA). These loans also require little-to-no money down.
Misconception No. 8: If you go through a short sale or foreclosure, you must wait 7 years before getting another home loanIn most cases, to buy a home after a short sale, you’ll typically only need to wait 2-4 years depending on your down payment and the loan type you select. The waiting period after a foreclosure is longer: Typically you’ll need to wait 3-7 years before getting another home loan. Even if you can afford to get a mortgage right now, you’ll need to have a good credit score, which can be difficult to rebuild in just a few years. Unique circumstances can lead to different outcomes, so make sure to check with a lender or two.
Misconception No. 9: If you are underwater on your home loan, you are unable to refinanceIt is estimated that millions of homeowners who are underwater and current on their mortgage can refinance using one of two special government programs. The first, the Home Affordable Refinance Program (HARP), is available to homeowners who have a loan backed by Fannie Mae or Freddie Mac. The second program, FHA Streamline Refinance, has recently been modified to help homeowners with loans insured by the Federal Housing Administration (FHA). Both programs help homeowners refinance into lower interest rate loans and may help dramatically lower payments without very much cost to the borrower. Zillow Mortgage Marketplace is the only online mortgage marketplace where you can get loan quotes for HARP and FHA Streamline. As an added bonus, it is the largest mortgage marketplace where you can anonymously get loan quotes, meaning you don’t enter any personally identifiable information and therefore cannot get spammed and hounded by lenders who were sold you contact information. See if you may qualify.
Misconception No. 10: You can only refinance your home loan once every 12 monthsWith conforming loans backed by Fannie Mae or Freddie Mac (the vast majority of loans today), you can refinance as frequently as you’d like so long as you do not take cash out when you refinance and are just refinancing to lower the interest rate and/or term of your mortgage. The rule of thumb is to wait until the difference between your current interest rate and the available interest rate would save you enough money each month to cover the costs of refinancing in 2 years. The amount of time that you plan on being in the home should be considered, as well. In general, refinancing will be more financially beneficial the longer you are in the home.
Use the (click: refinance calculator to determine how long it will take to break even on the costs of refinancing.
If any of the misconceptions had your name written all over it, visit the Zillow Mortgage Marketplace Help Center, where you can brush up on everything mortgage before you refinance or purchase your next home. You can also take the Mortgage IQ Quiz for yourself, or send it to a friend who is in the market; they’ll thank you.
Related:
Home Affordable Refinance Program (HARP)
www.makinghomeaffordable.gov › ... › Programs › Lower Your Rates
HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process, ...
Click green for further info
Source: Zillow Mortgage Marketplace
_______________________________________________
Banks Find More Foreclosure Problems
Date: March 4, 2013
Click green for further info
Big banks discovered they wrongfully foreclosed on more than 700 military members during the housing crisis and seized homes from about two dozen other borrowers who were current on their mortgage payments, Jessica Silver-Greenberg and Ben Protess report in The New York Times. The banks — Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — found the foreclosures after regulators ordered them to examine mortgages as part of a multibillion-dollar federal settlement, according to people with direct knowledge of the findings.
“The analysis, which was turned over to regulators in recent days, provides the first detailed glimpse into the extent of wrongful foreclosures amid the collapse of the housing market,” Ms. Silver-Greenberg and Mr. Protess write. “While lenders previously acknowledged that they relied on faulty documents to push through foreclosures, the banks claimed borrowers were rarely evicted by mistake, including military personnel protected by federal law.” The new revelations “could provide fresh ammunition for Wall Street critics and prompt regulators to adopt a tougher stance.”
Banks had previously resolved claims of improper foreclosures on military members, but the problems have turned out to be more extensive than those cases indicated, raising questions about a deal that was finalized last week. “When regulators forced them to take a close look at their loans, JPMorgan, Wells Fargo and Bank of America, the largest loan servicers, each discovered about 200 military members whose homes were wrongfully foreclosed on in 2009 and 2010, according to the people with direct knowledge of the findings. Citigroup had at least 100 such foreclosures. The foreclosures violate the Servicemembers Civil Relief Act, a federal law requiring banks to obtain court orders before foreclosing on active-duty members.”
________________________________________________________________________
The return of interest-only mortgages
These loans promise low monthly payments, but plenty of risks
Date: March 1, 2013
Affluent borrowers are signing up for the same type of mortgage that pushed many homeowners into foreclosure just a few years ago.
Interest-only mortgages, in which borrowers pay interest but no principal during the first few years of the loan, are attracting buyers who like the lower monthly payments—and can divert the savings to income-generating investments.
Lenders say these borrowers are attracted to the loans’ low monthly payments, which can be 30% to 40% lower than regular mortgages. And with interest rates near record lows over the past year, these loans have become even cheaper.
Interest-only mortgages accounted for about 14% of private mortgage originations from January 2012 through October, according to the latest data from CoreLogic, a real-estate analytics firm. (Private loans are mostly held on lenders’ books rather than sold to government-backed agencies.)
National lender EverBank EVER -0.56% says interest-only loans make up 15% to 20% of all the private jumbo mortgages it originates. At Bank of New York Mellon’s BK -0.92% wealth-management group, applications for interest-only private jumbos increased nearly 50% so far this year compared with the same period in 2012. “This has been a very robust first quarter for us,” says Erin Gorman, national mortgage sales director with the group.
Other lenders are entering the market. For instance, in April, lender and servicer Stonegate Mortgage Corp., based in Indianapolis, will roll out interest-only private jumbos. Jim Cutillo, chief executive of Stonegate, says he expects many wealthy borrowers who would have applied for adjustable-rate mortgages (ARMs) to instead turn to interest-only jumbo loans, specifically those that have fixed rates.
Likely to spur demand are new mortgage rules announced earlier this year by the Consumer Financial Protection Bureau. Starting in 2014, lenders offering ARMs will have to evaluate borrowers based on their ability to pay a higher interest rate than the initial rate on the loan. As a result, some applicants will find that they qualify for a smaller mortgage. Cutillo says Stonegate’s interest-only mortgages will have a fixed rate for the duration of the loan, allowing home buyers to maintain borrowing power.
Click to Play
Chinese buyers snapping up U.S. real estateChinese buyers are pouring more money into the U.S. real-estate market. Angela Wong of Sotheby's tells the WSJ's Deborah Kan who these Chinese property buyers are and where their money is going.
Still, under the CFPB’s rules, lenders who continue to provide interest-only mortgages beginning next year could face greater liability in lawsuits filed by borrowers who fall into foreclosure. But lenders are playing down the risk, saying that they provide these loans only to affluent borrowers who have significant assets and are unlikely to fall behind on payments.
Most of these loans permit interest-only payments for the first 10 years, making them appealing to buyers who plan to sell their home within that period since they won’t have to pay principal toward the loan. On a 30-year $1 million mortgage with a 4.08% fixed rate—the average rate on private jumbos, according to mortgage info website HSH.commonthly interest-only payments come out to $3,400, compared with roughly $4,820 a month for interest and principal.
Separately, some affluent borrowers find these mortgages provide more flexibility. For instance, wealthy self-employed borrowers with seasonal fluctuations in their income, as well as individuals whose bonuses make up a large chunk of their income, often prefer interest-only mortgages because of their small monthly payments and the ability to make larger payments, if they prefer, when they have the extra funds, says Tom Wind, executive vice president of residential lending at EverBank.
The loans also have flexible payment options. Borrowers who want to prepay the principal can do so without incurring a penalty in most cases.
Still, these loans come with many risks. Borrowers won’t build equity in their homes with interest-only payments, and if home prices fall, they could end up owing more on the home than it’s worth. Here are a few other issues to consider.
More up front: Some lenders require larger down payments, which can be 30% or more, than they would with a regular mortgage.
Higher interest rates: Some lenders will charge higher rates, often ranging from 0.12 to 0.25 of a percentage point more, than they would with a mortgage that requires principal and interest to be paid monthly.
Liquidity needed: Most interest-only mortgages have adjustable rates, which means borrowers could see their monthly payments get bigger if rates begin to rise. Borrowers should consider whether they have enough liquid cash to manage sudden spikes in payments.
Click green for further info
Source: Internet news
_________________________________________________
These loans promise low monthly payments, but plenty of risks
Date: March 1, 2013
Affluent borrowers are signing up for the same type of mortgage that pushed many homeowners into foreclosure just a few years ago.
Interest-only mortgages, in which borrowers pay interest but no principal during the first few years of the loan, are attracting buyers who like the lower monthly payments—and can divert the savings to income-generating investments.
Lenders say these borrowers are attracted to the loans’ low monthly payments, which can be 30% to 40% lower than regular mortgages. And with interest rates near record lows over the past year, these loans have become even cheaper.
Interest-only mortgages accounted for about 14% of private mortgage originations from January 2012 through October, according to the latest data from CoreLogic, a real-estate analytics firm. (Private loans are mostly held on lenders’ books rather than sold to government-backed agencies.)
National lender EverBank EVER -0.56% says interest-only loans make up 15% to 20% of all the private jumbo mortgages it originates. At Bank of New York Mellon’s BK -0.92% wealth-management group, applications for interest-only private jumbos increased nearly 50% so far this year compared with the same period in 2012. “This has been a very robust first quarter for us,” says Erin Gorman, national mortgage sales director with the group.
Other lenders are entering the market. For instance, in April, lender and servicer Stonegate Mortgage Corp., based in Indianapolis, will roll out interest-only private jumbos. Jim Cutillo, chief executive of Stonegate, says he expects many wealthy borrowers who would have applied for adjustable-rate mortgages (ARMs) to instead turn to interest-only jumbo loans, specifically those that have fixed rates.
Likely to spur demand are new mortgage rules announced earlier this year by the Consumer Financial Protection Bureau. Starting in 2014, lenders offering ARMs will have to evaluate borrowers based on their ability to pay a higher interest rate than the initial rate on the loan. As a result, some applicants will find that they qualify for a smaller mortgage. Cutillo says Stonegate’s interest-only mortgages will have a fixed rate for the duration of the loan, allowing home buyers to maintain borrowing power.
Click to Play
Chinese buyers snapping up U.S. real estateChinese buyers are pouring more money into the U.S. real-estate market. Angela Wong of Sotheby's tells the WSJ's Deborah Kan who these Chinese property buyers are and where their money is going.
Still, under the CFPB’s rules, lenders who continue to provide interest-only mortgages beginning next year could face greater liability in lawsuits filed by borrowers who fall into foreclosure. But lenders are playing down the risk, saying that they provide these loans only to affluent borrowers who have significant assets and are unlikely to fall behind on payments.
Most of these loans permit interest-only payments for the first 10 years, making them appealing to buyers who plan to sell their home within that period since they won’t have to pay principal toward the loan. On a 30-year $1 million mortgage with a 4.08% fixed rate—the average rate on private jumbos, according to mortgage info website HSH.commonthly interest-only payments come out to $3,400, compared with roughly $4,820 a month for interest and principal.
Separately, some affluent borrowers find these mortgages provide more flexibility. For instance, wealthy self-employed borrowers with seasonal fluctuations in their income, as well as individuals whose bonuses make up a large chunk of their income, often prefer interest-only mortgages because of their small monthly payments and the ability to make larger payments, if they prefer, when they have the extra funds, says Tom Wind, executive vice president of residential lending at EverBank.
The loans also have flexible payment options. Borrowers who want to prepay the principal can do so without incurring a penalty in most cases.
Still, these loans come with many risks. Borrowers won’t build equity in their homes with interest-only payments, and if home prices fall, they could end up owing more on the home than it’s worth. Here are a few other issues to consider.
More up front: Some lenders require larger down payments, which can be 30% or more, than they would with a regular mortgage.
Higher interest rates: Some lenders will charge higher rates, often ranging from 0.12 to 0.25 of a percentage point more, than they would with a mortgage that requires principal and interest to be paid monthly.
Liquidity needed: Most interest-only mortgages have adjustable rates, which means borrowers could see their monthly payments get bigger if rates begin to rise. Borrowers should consider whether they have enough liquid cash to manage sudden spikes in payments.
Click green for further info
Source: Internet news
_________________________________________________
7 tips to renovating after a natural disaster
The bright side of a disaster -- renovating?
When your home is damaged from a natural disaster, there is some good news: You can make the changes you've always wanted to your home while strengthening it against future weather damage.
Finding the right contractor before you start renovating is key. "Don't just let the insurance company tell you who to use," says Jeff Ellis, vice president of First Call Construction in Grimes, Iowa. While the insurance company can suggest a contractor, "Make sure the contractor working on your home is the right contractor for you and not just who they pick."
Lucas McCurdy, of Coastal Reconstruction Group in Winter Park, Fla., recommends hiring a licensed reconstruction contractor instead of a new homebuilder or other general contractor. While all licensed contractors can properly renovate a home, a reconstruction contractor speaks the same language as the insurance adjustor, says McCurdy. This speeds up the process of getting payments approved and may get the homeowner a better settlement.
Some contractors even use the same computer program the insurance company uses so any paperwork is already insurance-ready. "If you have a contractor who can take the bull by the horns, you can minimize your loss time," says McCurdy.
Before you begin renovating your damaged home, pay attention to these seven tips.
When your home is damaged from a natural disaster, there is some good news: You can make the changes you've always wanted to your home while strengthening it against future weather damage.
Finding the right contractor before you start renovating is key. "Don't just let the insurance company tell you who to use," says Jeff Ellis, vice president of First Call Construction in Grimes, Iowa. While the insurance company can suggest a contractor, "Make sure the contractor working on your home is the right contractor for you and not just who they pick."
Lucas McCurdy, of Coastal Reconstruction Group in Winter Park, Fla., recommends hiring a licensed reconstruction contractor instead of a new homebuilder or other general contractor. While all licensed contractors can properly renovate a home, a reconstruction contractor speaks the same language as the insurance adjustor, says McCurdy. This speeds up the process of getting payments approved and may get the homeowner a better settlement.
Some contractors even use the same computer program the insurance company uses so any paperwork is already insurance-ready. "If you have a contractor who can take the bull by the horns, you can minimize your loss time," says McCurdy.
Before you begin renovating your damaged home, pay attention to these seven tips.
Repair the basement, for better
If your basement had moisture issues in the past, now's a good time to fix that problem if you're remodeling post-disaster. A basement specialist can suggest the best ways to maintain a moisture-free basement, which might include a combination of sump pumps, perimeter drainage tiles, a French drain and making sure water is pumped away from the home.
Costs vary depending on the drainage system and the house, but Ellis estimates that perimeter drainage tile alone can cost $8,000 to $10,000. It's more expensive because it's more work to install after the house is built, requiring a breaking up of the concrete around the house footings.
Make sure to pay attention to the land surrounding the basement when remodeling as well, especially if areas have been washed away. The outside grading is just as important as the drainage systems inside. "Make sure the grading slopes away from the house. Where the earth slopes toward the house, that causes problems," says Ellis.
While floodwater damage requires ripping out affected materials, such as drywall, insulation and flooring, it also requires deodorizing and bleaching anything left behind. Water damage from rainfall or a burst pipe is less of an issue, says Ellis. He recommends drying out the area using different types of sump systems and internal guttering systems.
Buy a generator
Generators can be a blessing when the power goes out during a storm. This is especially true for those with basements.
"Our beautiful finished basement took on 3 feet of water during (Hurricane) Irene -- not because of flooding, per se, but because the power outage caused the sump pumps to fail," says Stacie Dalrymple, a homeowner in Short Hills, N.J.
After Hurricane Irene blew past in 2011, Dalrymple wanted a hardwired generator to power the sump pumps and refrigerator but didn't have to time to install one before getting hit with a nor'easter two months later, leaving her house without power for eight days. "After that, we knew we wanted a whole house generator," she said.
While it wasn't cheap ($4,500 for a deluxe 20-kW unit and $5,500 for installation and gas-line work), her family was prepared when Superstorm Sandy knocked out their power -- this time for 12 days.
"I understand that these generators are prohibitively expensive for many people, but they are incredibly convenient and really a blessing in this part of the country, where we've had three major disasters involving power outages over the last (few years)," Dalrymple says.
Portable generators are less expensive, typically between $200 and $1,000, and can power the sump pump and other electrical needs during a disaster. But you'll need to manually hook it up and fill it with gas. "They cost much less money but require more active supervision and installation for each power outage," Dalrymple says.
Toughen up interior walls
If your home sustained water damage in a disaster, know that floodwater can carry contaminants, says Ellis. Not only do the affected materials need to be removed down to the framing, "The materials need to be deodorized, and you'll need to get an antimicrobial to kill the microbes."
For basements and areas where future water damage is possible, it's worth installing water-resistant materials. After taking on several feet of water in his basement after a storm, Boston homeowner David Bees replaced the fiberglass wall insulation, "which soaked up water like a sponge," with foam board made of extruded polystyrene, available at home improvement stores.
He replaced the drywall with cement board. "It's thin like drywall but held together with mesh imprinted into it. It won't absorb moisture like drywall, which has paper backing and is organic. There's nothing organic that could grow mold on the cement board," he says. McCurdy adds that while these types of materials are resistant to water and mold, everything has a time limit when it comes to water and mold damage.
For the baseboards, Bees used a polyvinyl chloride-based board, avoiding wood trim. "If it gets wet again, I might lose the carpet, but not the walls," he says. Bees finished it off with a waterproof paint.
Stomp out poor flooring
Not surprisingly, disasters involving water are detrimental to floors. Carpet absorbs water and is difficult to dry out. McCurdy says while it's sometimes possible to dry, clean and re-lay carpet, you'll still need a new carpet pad. For areas such as the basement, consider flooring materials that can better handle the wetness.
"Tile is a good option because it can withstand moisture," says Ellis. However, in a catastrophic disaster, McCurdy says even tile can be ruined if the water sits on it for days.
As for materials not recommended in moisture-prone areas? Carpet, hardwood and laminate top the list of items to stay away from. "They'll be damaged pretty significantly by water," says McCurdy.
Ellis says an option for homeowners with basement moisture problems is to raise the floor off the concrete with rubber feet, making a small channel below where moisture can run.
From the outside: Windows and exterior walls
After a storm, there may be significant damage to your windows and exterior walls. Not just from flying debris and tree limbs, but also from water and wind.
Most important is to ensure each window is installed, taped and sealed correctly, Ellis says. "If they're not taped correctly, the moisture gets behind the siding."
While any acceptable window should work for replacement, to be extra cautious, consider hurricane-rated or wind-rated windows and doors, says McCurdy. These are required in some of Florida's coastal areas. Know that all your new windows will also need to be installed according to city code.
Once you have the windows taken care of, look toward the exterior of the house. McCurdy says solid brick exteriors usually hold up well, though some people waterproof the bricks for extra protection. Brick isn't usually the choice for coastal homes, so what should people living in those areas use when remodeling?
You want something that isn't easily affected by wind, McCurdy says. Materials such as vinyl siding can be torn off easily and should be avoided if possible. A better bet would be using stucco or a product called HardiePlank, which offers siding specific to your climate and location. Exterior paint can also help divert wind-driven rain.
If constructed and maintained well, the exterior walls should withstand the rain.
Keep that roof from blowing away
If you're replacing your roof after a disaster, a qualified roofer can steer you toward the proper roofing materials for your area, says Ellis. When repairing a roof, make sure you get high-quality shingles that are in good condition. You must also make sure the roofer completes the flashing correctly, Ellis says. Flashing is where the roof meets a vertical structure, and water can get inside if it's not installed properly.
To make sure your roof has the best chance of surviving future storms, it pays to do some maintenance and add hurricane strapping if wind storms are a problem, says McCurdy. "With hurricanes, most of the damage comes from roof damage. If it blows your roof off, your whole house is exposed. Hurricane straps are designed to hold your roof on better."
Hurricane strapping involves a truss system. Clips and straps are tied in to the roof and house-framing system in the attic. McCurdy says you're mostly paying for labor, since the materials are inexpensive. Costs vary, but, "In comparison to the cost of a new roof, it's a fraction of that," says McCurdy.
Ellis adds that it's helpful is to check the roof annually, looking for curled shingles, hail damage and water leaks. He says one of his customers has a big leak now where a branch hit the roof. "They didn't know it was there," he says, and now the interior is rotting.
Take the time to do it right
It's worth the time and money to do the project properly with quality materials because it will last longer. "Do it right when you do it, and hopefully you won't have to redo it again," says Bees. "Use products that won't absorb water. It cost a little more for some of those materials, but I know going forward, I'm in a better place should I ever get water in my basement again."
After a disaster, good contractors will be booked up, and your renovation may not be high on the list. For Dalrymple, "It was six months before we had a functional basement again," she says. "Don't expect (the renovation) to happen fast, especially after a disaster, since all the contractors will be busy. But do keep in mind that it will get done, and there will be a time when it all seems like a distant memory."
While not common, consider interviewing restoration contractors ahead of time if you live in a storm-prone area. "People pick out their doctors and their Realtors ahead of time," says McCurdy. "Then when their house gets flooded, they have no idea what to do. They make a big decision on who to use based on Google or the Yellow Pages. Why not interview them now?"
_________________________________________________________________
The bright side of a disaster -- renovating?
When your home is damaged from a natural disaster, there is some good news: You can make the changes you've always wanted to your home while strengthening it against future weather damage.
Finding the right contractor before you start renovating is key. "Don't just let the insurance company tell you who to use," says Jeff Ellis, vice president of First Call Construction in Grimes, Iowa. While the insurance company can suggest a contractor, "Make sure the contractor working on your home is the right contractor for you and not just who they pick."
Lucas McCurdy, of Coastal Reconstruction Group in Winter Park, Fla., recommends hiring a licensed reconstruction contractor instead of a new homebuilder or other general contractor. While all licensed contractors can properly renovate a home, a reconstruction contractor speaks the same language as the insurance adjustor, says McCurdy. This speeds up the process of getting payments approved and may get the homeowner a better settlement.
Some contractors even use the same computer program the insurance company uses so any paperwork is already insurance-ready. "If you have a contractor who can take the bull by the horns, you can minimize your loss time," says McCurdy.
Before you begin renovating your damaged home, pay attention to these seven tips.
When your home is damaged from a natural disaster, there is some good news: You can make the changes you've always wanted to your home while strengthening it against future weather damage.
Finding the right contractor before you start renovating is key. "Don't just let the insurance company tell you who to use," says Jeff Ellis, vice president of First Call Construction in Grimes, Iowa. While the insurance company can suggest a contractor, "Make sure the contractor working on your home is the right contractor for you and not just who they pick."
Lucas McCurdy, of Coastal Reconstruction Group in Winter Park, Fla., recommends hiring a licensed reconstruction contractor instead of a new homebuilder or other general contractor. While all licensed contractors can properly renovate a home, a reconstruction contractor speaks the same language as the insurance adjustor, says McCurdy. This speeds up the process of getting payments approved and may get the homeowner a better settlement.
Some contractors even use the same computer program the insurance company uses so any paperwork is already insurance-ready. "If you have a contractor who can take the bull by the horns, you can minimize your loss time," says McCurdy.
Before you begin renovating your damaged home, pay attention to these seven tips.
Repair the basement, for better
If your basement had moisture issues in the past, now's a good time to fix that problem if you're remodeling post-disaster. A basement specialist can suggest the best ways to maintain a moisture-free basement, which might include a combination of sump pumps, perimeter drainage tiles, a French drain and making sure water is pumped away from the home.
Costs vary depending on the drainage system and the house, but Ellis estimates that perimeter drainage tile alone can cost $8,000 to $10,000. It's more expensive because it's more work to install after the house is built, requiring a breaking up of the concrete around the house footings.
Make sure to pay attention to the land surrounding the basement when remodeling as well, especially if areas have been washed away. The outside grading is just as important as the drainage systems inside. "Make sure the grading slopes away from the house. Where the earth slopes toward the house, that causes problems," says Ellis.
While floodwater damage requires ripping out affected materials, such as drywall, insulation and flooring, it also requires deodorizing and bleaching anything left behind. Water damage from rainfall or a burst pipe is less of an issue, says Ellis. He recommends drying out the area using different types of sump systems and internal guttering systems.
Buy a generator
Generators can be a blessing when the power goes out during a storm. This is especially true for those with basements.
"Our beautiful finished basement took on 3 feet of water during (Hurricane) Irene -- not because of flooding, per se, but because the power outage caused the sump pumps to fail," says Stacie Dalrymple, a homeowner in Short Hills, N.J.
After Hurricane Irene blew past in 2011, Dalrymple wanted a hardwired generator to power the sump pumps and refrigerator but didn't have to time to install one before getting hit with a nor'easter two months later, leaving her house without power for eight days. "After that, we knew we wanted a whole house generator," she said.
While it wasn't cheap ($4,500 for a deluxe 20-kW unit and $5,500 for installation and gas-line work), her family was prepared when Superstorm Sandy knocked out their power -- this time for 12 days.
"I understand that these generators are prohibitively expensive for many people, but they are incredibly convenient and really a blessing in this part of the country, where we've had three major disasters involving power outages over the last (few years)," Dalrymple says.
Portable generators are less expensive, typically between $200 and $1,000, and can power the sump pump and other electrical needs during a disaster. But you'll need to manually hook it up and fill it with gas. "They cost much less money but require more active supervision and installation for each power outage," Dalrymple says.
Toughen up interior walls
If your home sustained water damage in a disaster, know that floodwater can carry contaminants, says Ellis. Not only do the affected materials need to be removed down to the framing, "The materials need to be deodorized, and you'll need to get an antimicrobial to kill the microbes."
For basements and areas where future water damage is possible, it's worth installing water-resistant materials. After taking on several feet of water in his basement after a storm, Boston homeowner David Bees replaced the fiberglass wall insulation, "which soaked up water like a sponge," with foam board made of extruded polystyrene, available at home improvement stores.
He replaced the drywall with cement board. "It's thin like drywall but held together with mesh imprinted into it. It won't absorb moisture like drywall, which has paper backing and is organic. There's nothing organic that could grow mold on the cement board," he says. McCurdy adds that while these types of materials are resistant to water and mold, everything has a time limit when it comes to water and mold damage.
For the baseboards, Bees used a polyvinyl chloride-based board, avoiding wood trim. "If it gets wet again, I might lose the carpet, but not the walls," he says. Bees finished it off with a waterproof paint.
Stomp out poor flooring
Not surprisingly, disasters involving water are detrimental to floors. Carpet absorbs water and is difficult to dry out. McCurdy says while it's sometimes possible to dry, clean and re-lay carpet, you'll still need a new carpet pad. For areas such as the basement, consider flooring materials that can better handle the wetness.
"Tile is a good option because it can withstand moisture," says Ellis. However, in a catastrophic disaster, McCurdy says even tile can be ruined if the water sits on it for days.
As for materials not recommended in moisture-prone areas? Carpet, hardwood and laminate top the list of items to stay away from. "They'll be damaged pretty significantly by water," says McCurdy.
Ellis says an option for homeowners with basement moisture problems is to raise the floor off the concrete with rubber feet, making a small channel below where moisture can run.
From the outside: Windows and exterior walls
After a storm, there may be significant damage to your windows and exterior walls. Not just from flying debris and tree limbs, but also from water and wind.
Most important is to ensure each window is installed, taped and sealed correctly, Ellis says. "If they're not taped correctly, the moisture gets behind the siding."
While any acceptable window should work for replacement, to be extra cautious, consider hurricane-rated or wind-rated windows and doors, says McCurdy. These are required in some of Florida's coastal areas. Know that all your new windows will also need to be installed according to city code.
Once you have the windows taken care of, look toward the exterior of the house. McCurdy says solid brick exteriors usually hold up well, though some people waterproof the bricks for extra protection. Brick isn't usually the choice for coastal homes, so what should people living in those areas use when remodeling?
You want something that isn't easily affected by wind, McCurdy says. Materials such as vinyl siding can be torn off easily and should be avoided if possible. A better bet would be using stucco or a product called HardiePlank, which offers siding specific to your climate and location. Exterior paint can also help divert wind-driven rain.
If constructed and maintained well, the exterior walls should withstand the rain.
Keep that roof from blowing away
If you're replacing your roof after a disaster, a qualified roofer can steer you toward the proper roofing materials for your area, says Ellis. When repairing a roof, make sure you get high-quality shingles that are in good condition. You must also make sure the roofer completes the flashing correctly, Ellis says. Flashing is where the roof meets a vertical structure, and water can get inside if it's not installed properly.
To make sure your roof has the best chance of surviving future storms, it pays to do some maintenance and add hurricane strapping if wind storms are a problem, says McCurdy. "With hurricanes, most of the damage comes from roof damage. If it blows your roof off, your whole house is exposed. Hurricane straps are designed to hold your roof on better."
Hurricane strapping involves a truss system. Clips and straps are tied in to the roof and house-framing system in the attic. McCurdy says you're mostly paying for labor, since the materials are inexpensive. Costs vary, but, "In comparison to the cost of a new roof, it's a fraction of that," says McCurdy.
Ellis adds that it's helpful is to check the roof annually, looking for curled shingles, hail damage and water leaks. He says one of his customers has a big leak now where a branch hit the roof. "They didn't know it was there," he says, and now the interior is rotting.
Take the time to do it right
It's worth the time and money to do the project properly with quality materials because it will last longer. "Do it right when you do it, and hopefully you won't have to redo it again," says Bees. "Use products that won't absorb water. It cost a little more for some of those materials, but I know going forward, I'm in a better place should I ever get water in my basement again."
After a disaster, good contractors will be booked up, and your renovation may not be high on the list. For Dalrymple, "It was six months before we had a functional basement again," she says. "Don't expect (the renovation) to happen fast, especially after a disaster, since all the contractors will be busy. But do keep in mind that it will get done, and there will be a time when it all seems like a distant memory."
While not common, consider interviewing restoration contractors ahead of time if you live in a storm-prone area. "People pick out their doctors and their Realtors ahead of time," says McCurdy. "Then when their house gets flooded, they have no idea what to do. They make a big decision on who to use based on Google or the Yellow Pages. Why not interview them now?"
_________________________________________________________________
How to Stop a Home Invasion
When the Intruder Has Four Legs
(1) Raccoons, (2) birds, (3) squirrels, (4) skunks, (5) wild cats,
(6) mice, (7) rats - countryside: many more
A FEW weeks ago, around 3 a.m., we heard some glass knocked over downstairs. In a daze — and not wanting to get out of bed — I thought it was our cats fooling around. But my older son, who was closer to the action, raced upstairs shouting that a raccoon was sitting on the mantle.
It’s no mystery how the raccoon got in. We have a cat door leading to our basement, and the cats can go out the garage door during the day. At night, we close the garage door. The raccoon, being nocturnal, must have been sleeping in the basement and then found itself unable to get out of the garage. It opted for another exit — through the cat door and into our house.
Besides breaking some vases and candles, the raccoon also managed to turn on a burner on our stove.
Once we (O.K., my husband) went downstairs and turned on the lights, the creature ran into the basement and eventually outside.
But unable to sleep, my husband and I started researching ways to keep raccoons away. Ammonia. Mothballs. Cayenne pepper. Irish Spring soap. Motion-detection lights and loud music.
But as I later found out from Jim Horton, owner of QualityPro Pest and Wildlife Services in Tarrytown, N.Y., those options, if they work at all, are usually temporary.
“Raccoons will just kick the mothballs to the side,” he said. And if too much of some those homemade remedies are used — like the ammonia or mothballs — they can become toxic.
Wildlife experts say that how you address the problem depends on the extent of the invasion. If you have one scared animal running through the house, open the doors and hope it runs out, Mr. Horton said, adding that it can also help to close your blinds or curtains so the animal sees the light from the door and goes toward that.
Don’t try to pick it up. There’s a possibility of rabies, and also being attacked by a frightened animal.
“The worst thing you can do is chase it,” said Tina Toti, an animal lover in New Rochelle, N.Y. She will help anyone — friend or stranger — remove these types of animals from a house and take them away. She doesn’t charge, but asks that a donation be made to a local animal shelter.
(Full disclosure: I’ve used Ms. Toti to capture another errant raccoon in our basement. She discovered its paw was trapped in a broken glass jar and got it to a veterinarian. It is now happily recovering at a rehabilitation center.)
Ms. Toti has a few tips: “In my experience, skunks have a huge weakness for sweets. Marshmallows or jelly gumdrops do the trick. I have used a very long stick with one of those treats at the end of it and tapped them on the nose and slowly walked them out of the door.”
Squirrels and raccoons are trickier to get out. The best bet, said Ms. Toti, who told me she was vaccinated against rabies, is to call a professional. The longer the animal is in your house, the more damage it can cause, and the greater the potential that it can leave behind fleas, ticks and mites, she said. And don’t even mention feces.
If you don’t want the animal killed, and there is no reason to unless it is rabid, be sure to inquire what the trapper plans to do with it once it is caught.
But once the animal is gone, you need to figure out how it got into your house. My friend Veronica told me how, a few Christmases ago, she heard little nails on her downstairs floor.
Like me, she bravely sent her husband down to investigate. Things had been knocked askew, but there was no animal in sight. The next day, though, when they went to decorate the Christmas tree, a squirrel came racing down the branches.
It had come, as is common, through the chimney. So make sure that you have chimney caps and that they’re adequately protecting against wildlife.
And here’s some other advice from experts to keep out wayward animals:
¶ Don’t leave pet food and water outside.
¶ Use metal or durable plastic trash containers and secure lids with elastic cords.
¶ Stack firewood on a frame that keeps logs at least two feet above the ground.
¶ Trim branches that extend over your roof.
¶ Check exhaust fan openings, kitchen and bathroom vents and above gutters to see if they’re providing an opening for animals.
A lone raccoon or squirrel that takes a wrong turn into your living room is one thing. But too often, the problem is a family that’s nesting in the attic or eaves. And that’s a lot more troublesome.
“You need to understand the animal and how it uses the structure, how it can climb and when it is breeding,” said John Griffin, director of Humane Wildlife Services, which is part of the Humane Society of the United States. He works in the Washington area.
For example, he said, a raccoon can get in holes four inches across or even smaller — as long as it can squeeze its head through.
And it can cause enormous damage. “I’ve had people with summer homes, and the raccoons just tore the places apart in the winter,” Mr. Horton said.
Last year, he said he saw a big increase in flying squirrels — perhaps, he said, because of an acorn abundance. Flying squirrels are nocturnal; regular squirrels, the ones we see climbing trees outside, are not.
So if you hear scrambling above your head starting around 10 p.m., there’s a good bet it’s flying squirrels making a home in your attic, he said.
If this is happening, bring in a professional who can help figure out where the opening is and ensure that all the animals are evicted. You want to make sure that a mother isn’t separated from her babies (squirrel nesting season runs February to May and August to October) because the mother will do anything to get back in.
“A lot of damage comes from people who think they’ve solved the problem,” Mr. Griffin said.
For instance, if you have a bat invasion, you may think it’s resolved if you don’t hear them after awhile. But if the weather is getting colder, they might just be hibernating.
“You need to know the season and species,” he said.
Hiring a professional won’t be cheap. Mr. Horton said his services might run from $185 to $650, depending on the size of the job. It can get more expensive if he needs to seal up many holes.
“I’ve done bat work that can run in the thousands,” he said. “A bat only needs the size of a dime to get into.”
He traps the animals in cages and relocates them about five miles away.
For about $350, Mr. Griffin uses a different method known as evict and exclude. He finds out how the animal is getting in, then puts a one-way trap up against the hole. Once the animal is in the trap, it can only go out — not back in. He will also make sure to remove any babies or other family members inside.
While that may seem expensive, it’s cheaper than having the animals as long-term guests.
As for us, we haven’t seen a rogue raccoon around lately. No doubt they’ve been dissuaded by the fancy new cat door we put in. It can be opened only by a radio frequency signal emitted by tags on the cats’ collars.
There’s only one problem. The new door scares our cats. But that’s another column.
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Source: NYT
______________________________________________
Pa. Homeowner Sues Seller Over Home's Bloody Past
STAF, Inc.'s opinion & legal guidance:
(1) The potentially negative should be disclosed to the new buyer IF the buyer asks certain questions - all answers must be honest. All questions and answers must be put in writing and be notarized. Such a notarized document is necessary and must be done separately with the previous owner and with the real estate agent & the RE office. The document must state the transaction invalid based on the buyer's choice if some dishonest facts were given. In case of a lawsuit
the misleading answers can be sued as a fraud - legally a safer situation for the new buyer.
(2) Prepare the document with your Real Estate lawyer who in most cases can also notarize the document.
A Pennsylvania woman has appealed to the state Supreme Court in her suit against a home seller and real estate agent who failed to disclose that a murder-suicide had taken place in the home she purchased.
When Janet Milliken, 59, moved from California after her husband died, she had hoped to start a new life with her two teenage children in Pennsylvania near her family.
She bought a home in Thornton, Pa., for $610,000 in June 2007. She learned a few weeks after she moved in from a next-door neighbor that a murder-suicide had occurred the year before in her home.
She sued the seller and the real estate agent for fraud and misrepresentation, saying they made a "deliberate choice not to disclose the home's recent past," according to a court document.
The trial judge granted summary judgment in favor of the defendants, saying state law does not require agents to disclose such events.
Then in December 2012, a panel of the state appeals court affirmed that decision, though with a nearly split decision.
The matter dates back to Feb. 11. 2006, when a previous homeowner, Konstantinos Koumboulis, allegedly shot and killed his wife, then shot himself in the master bedroom.
Joseph and Kathleen Jacono had bought the home Oct. 31, 2006, knowing of the murder-suicide, for $450,000. They later sold it to Milliken, who wants the transaction rescinded and her money back.
Filing a petition to the Supreme Court of Pennsylvania last week with the hope of arguing the case further, the attorney for Milliken, Tim Rayne, said they "hope to have Pennsylvania recognize that having a horrific event occur within a property can be just as damaging and troubling to a future homeowner as a physical defect, or perhaps even more so."
"Having a gunshot murder-suicide committed within the home is much more devastating than having a small leak concealed by the previous homeowner," Rayne said. "Physical defects can be fixed. Troubling events that could and did occur in this home could never go away."
Rayne said sellers should be required to disclose troubling events "at least for some period of time."
Abraham Reich, the attorney for the Jaconos and their agent with Re/Max, said, "The majority, en banc [full-court] opinion of the Superior Court was well reasoned and consistent with years of industry practice in Pennsylvania.
"While the issue is interesting, the number of times it comes up does not warrant Supreme Court review," Reich said. "The Superior Court opinion provides guidance for any real estate transaction in the future and puts to rest the uncertainty of whether a seller has a duty to disclose a murder-suicide or any other type 'psychological damage.' In my opinion, the result is a good one."
Rayne said Milliken, 59, was "disturbed" when she learned of her home's history from a neighbor. "As she was struggling what and if to tell the kids," he said, her children's friends visited the home for Halloween and told the children about the murder-suicide.
"They were very upset upon learning about it and disturbed about the whole situation," Rayne said.
"They were dealing with the death of a father and husband and wanted to move closer to family, and then this happened to them," he said. "It was a tragedy all around."
Rayne said Milliken and her children are still living in the home. He said they would prefer to move out of the home but can't afford to do so without selling it.
"They feel that if they sold it, through good conscience they would have to disclose," Rayne said, "so it would negatively impact the value."
Source: ABC News
______________________________________________
STAF, Inc.'s opinion & legal guidance:
(1) The potentially negative should be disclosed to the new buyer IF the buyer asks certain questions - all answers must be honest. All questions and answers must be put in writing and be notarized. Such a notarized document is necessary and must be done separately with the previous owner and with the real estate agent & the RE office. The document must state the transaction invalid based on the buyer's choice if some dishonest facts were given. In case of a lawsuit
the misleading answers can be sued as a fraud - legally a safer situation for the new buyer.
(2) Prepare the document with your Real Estate lawyer who in most cases can also notarize the document.
A Pennsylvania woman has appealed to the state Supreme Court in her suit against a home seller and real estate agent who failed to disclose that a murder-suicide had taken place in the home she purchased.
When Janet Milliken, 59, moved from California after her husband died, she had hoped to start a new life with her two teenage children in Pennsylvania near her family.
She bought a home in Thornton, Pa., for $610,000 in June 2007. She learned a few weeks after she moved in from a next-door neighbor that a murder-suicide had occurred the year before in her home.
She sued the seller and the real estate agent for fraud and misrepresentation, saying they made a "deliberate choice not to disclose the home's recent past," according to a court document.
The trial judge granted summary judgment in favor of the defendants, saying state law does not require agents to disclose such events.
Then in December 2012, a panel of the state appeals court affirmed that decision, though with a nearly split decision.
The matter dates back to Feb. 11. 2006, when a previous homeowner, Konstantinos Koumboulis, allegedly shot and killed his wife, then shot himself in the master bedroom.
Joseph and Kathleen Jacono had bought the home Oct. 31, 2006, knowing of the murder-suicide, for $450,000. They later sold it to Milliken, who wants the transaction rescinded and her money back.
Filing a petition to the Supreme Court of Pennsylvania last week with the hope of arguing the case further, the attorney for Milliken, Tim Rayne, said they "hope to have Pennsylvania recognize that having a horrific event occur within a property can be just as damaging and troubling to a future homeowner as a physical defect, or perhaps even more so."
"Having a gunshot murder-suicide committed within the home is much more devastating than having a small leak concealed by the previous homeowner," Rayne said. "Physical defects can be fixed. Troubling events that could and did occur in this home could never go away."
Rayne said sellers should be required to disclose troubling events "at least for some period of time."
Abraham Reich, the attorney for the Jaconos and their agent with Re/Max, said, "The majority, en banc [full-court] opinion of the Superior Court was well reasoned and consistent with years of industry practice in Pennsylvania.
"While the issue is interesting, the number of times it comes up does not warrant Supreme Court review," Reich said. "The Superior Court opinion provides guidance for any real estate transaction in the future and puts to rest the uncertainty of whether a seller has a duty to disclose a murder-suicide or any other type 'psychological damage.' In my opinion, the result is a good one."
Rayne said Milliken, 59, was "disturbed" when she learned of her home's history from a neighbor. "As she was struggling what and if to tell the kids," he said, her children's friends visited the home for Halloween and told the children about the murder-suicide.
"They were very upset upon learning about it and disturbed about the whole situation," Rayne said.
"They were dealing with the death of a father and husband and wanted to move closer to family, and then this happened to them," he said. "It was a tragedy all around."
Rayne said Milliken and her children are still living in the home. He said they would prefer to move out of the home but can't afford to do so without selling it.
"They feel that if they sold it, through good conscience they would have to disclose," Rayne said, "so it would negatively impact the value."
Source: ABC News
______________________________________________
8 Great Places to Retire Abroad
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Retiring abroad can offer a host of advantages over buying a condo in Florida. Living expenses can be cheaper, cultural experiences richer and the lifestyle more satisfying. But picking the right place to retire for you can be tricky: Climate, cost of living, ease of traveling to the U.S. and access to adequate health care all need to be weighed.
We took those factors and others into account in making these picks. As part of our research, we consulted three experts on overseas retirement: Betsy Burlingame of ExpatExchange.com, Kathleen Peddicord of Liveandinvestoverseas.com and Jennifer Stevens of InternationalLiving.com. We also looked at International Living's Global Retirement Index, which ranks the 22 countries most popular with American retirees on eight categories ranging from entertainment options to infrastructure. Ecuador ranked highest overall on the index; the Dominican Republic came in 22nd. We focused primarily on the cost-of-living component of the index.
[More from Kiplinger: 5 Best U.S. Cities for Retirees]
The hypothetical monthly budgets we provide for a retired American couple include the cost of housing in a desirable neighborhood and monthly living expenses such as food, entertainment, utilities and local transportation. Actual costs will vary widely. Buying a sprawling villa vs. renting a small apartment will affect living expenses significantly, for example, as will eating out nightly vs. preparing most meals at home. We hope the hypothetical monthly budgets are useful as a starting point for your planning.
1. Medellin, Colombia
Population: 2.4 million
Climate: Springlike year-round, the average temperature is a pleasant 72 degrees Fahrenheit. Because the city is in the mountains, nights can be cool and humidity isn't an issue.
Proximity to major airport: Jose Maria Cordova airport is located 19 miles to the southeast of Medellin's city center, in Rionegro. There are nonstop flights to Miami and Fort Lauderdale, Fla.
Access to health care: Five of the top hospitals in Latin America are located in Medellin. Affordable, high-quality health care has made the city a popular destination for medical tourism. (Note: Medicare does not cover overseas medical care.)
Cost of living: Colombia tied for 16th (with the Dominican Republic) out of 22 countries in the cost-of-living component of International Living's Global Retirement Index. The top-ranked nation has the lowest living costs, while the 22nd-ranked nation has the highest. A retired American couple could live comfortably on $1,500 a month in Medellin. A small apartment in the center of the city costs about $75,000.
The draw: Much has changed in the 20 years since drug lord Pablo Escobar was killed by Colombian soldiers here. Today, Medellin is known more for its growing tourism industry and architectural renaissance than cartel violence. Parks, libraries and museums abound, thanks to a decade-long urban revitalization effort that's earned international acclaim, and a modern metro and tram system connects far-flung neighborhoods. Hometown artist Fernando Botero's corpulent sculptures adorn many of the European-influenced public spaces. Unlike other popular retirement spots in Latin America, Medellin isn't overrun with foreign expats, so real estate is still relatively affordable. On a final note, while Colombia's second-largest city is vastly safer than it was a decade ago, crime (including violent crime) is much more prevalent than in the U.S. American retirees should heed State Department warnings on travel and safety.
2. Dubrovnik, Croatia
Population: 42,615
Climate: Seasonal. Temperatures range from the mid 40s in January and February to the low 80s in June and July.
Proximity to major airport: Dubrovnik Airport is about ten miles from the city center in Cilipi. Expect to make one or two connections (possibly in Zagreb and then in a major European city) to reach the U.S.
Access to health care: General Hospital Dubrovnik, a full-service hospital, is located in the center of the city.
Cost of living: An American couple could live comfortably on $2,700 a month. Croatia wasn't ranked in the Global Retirement Index.
[More from Kiplinger: 6 Ways to Retire Without a Mortgage (Feb. 2013)]
The draw: Old World charm. Sandwiched between mountains and sea, Dubrovnik's geography is breathtaking. Those in search of culture, history, and architecture will find it in abundance in this medieval walled old town, which is home to a 14th-century monastery. Not only can retirees soak up all the history and attend cultural events such as the Dubrovnik Film Festival, they can also enjoy beaches and island-hop along the coast. A steady influx of tourists means you'll find at least some English spoken at shops and restaurants. Known as the "Pearl of the Adriatic," Dubrovnik is one of the pricier locales in Croatia, but it's affordable compared with better-known Mediterranean hot spots.
3. Salinas, Ecuador
Population: 34,719
Climate: Mild and dry. Temperatures average in the 70s during the day and fall into the low 60s at night. The mercury can climb into the 90s, but that happens about as rarely as it rains.
Proximity to major airport: It's about two hours by car or three hours by bus to Jose Joaquin de Olmedo International Airport in Guayaquil, Equador’s largest city. From there, you can fly nonstop to the U.S.
Access to health care: Just 20 minutes away by car are several clinics in La Libertad and Santa Elena. There's even a local doctor in Salinas, popular among expats, who makes house calls. The charge: $30 per visit. Retirees will find top-notch hospitals two hours away in Guayaquil.
Cost of living: Ecuador came in fourth — and number one for Latin America — on the Global Retirement Index for lowest cost of living. A retired American couple could live well on $1,500 a month.
The draw: Miami living without Miami prices. Jutting out into the Pacific, Salinas is Ecuador's largest coastal resort town, with great oceanfront condos, open markets and upscale restaurants. A jetty, home to the Salinas Yacht Club, separates trendy San Lorenzo Beach from the quieter Chipipe Beach. Retirees can live a high-end beach lifestyle on the cheap; this is one of the least-expensive beach resorts in Latin America. That explains the growing expat community. The $1,500-a-month budget for an American couple includes dinner out most nights.
4. George Town, Malaysia
Population: 740,200
Climate: Hot and humid. The average temperature is a muggy 80 degrees year round. Located in northwest Malaysia, George Town gets its fair share of rain, particularly in April and October.
Proximity to major airport: Penang International Airport is 11 miles south of George Town. At least one flight connection is required to reach the U.S.
Access to health care: Foreigners routinely travel to Malaysia for affordable, quality medical and dental services. There are several hospitals and clinics in and around George Town.
Cost of living: Malaysia came in third, behind only Thailand and the Philippines, in the Global Retirement Index in terms of lowest living costs. An American couple can get along extremely well on $1,500 a month.
The draw: British colonialism on the cheap. Over the past decade 19,488 foreigners, including 815 North Americans, have taken advantage of a program called Malaysia My Second Home, which offers retirement incentives such as long-term residency status and breaks on car imports and purchases. Applicants must meet strict financial requirements. But there is a charm and bustle to George Town, the capital of the Malaysian state of Penang. A Unesco World Heritage site, Malaysia's oldest city is known for its rich history but also for its street food and intriguing architecture. It's populated mainly by ethnic Chinese, but English is spoken, thanks to the country's historical tie to Britain
Population: 353,187
Climate: Mild year-round. Typical temperatures range from the mid 50s in winter to the high 70s in summer. July and August are the warmest months; January, the coolest.
Proximity to major airport: Bilbao Airport is located about seven miles north of the city center, or about 15 minutes by taxi. There are connecting flights to the U.S.
Access to health care: Bilbao has modern hospitals and clinics. There are numerous pharmacies, including some that are open 24 hours a day.
Cost of living: Spain isn't cheap, but it's cheaper since the real-estate market went bust. The nation tied for 12th place, alongside Brazil and Honduras, on the Global Retirement Index for lowest cost of living. An American couple could live comfortably on $3,500 a month.
[More from Kiplinger: 5 Costly Retirement Surprises]
The draw: Bilbao, located in the Basque region of northern Spain, is surrounded by forests and mountains. France and the Pyrenees lie due east. Bilbao is one of Spain's biggest cities and has undergone an urban rejuvenation. It's home to the Guggenheim Museum Bilbao, which with its titanium panels and striking architecture that draw tourists from around the world. There's an efficient, cheap public transportation system, along with miles of parks. The beach is less than an hour away. Bilbao is a draw for foodies as well as art lovers, thanks to the plethora of restaurants serving everything from traditional Basque dishes to innovative cuisine, such as molecular gastronomy. Whether ordering dinner or asking for directions, a little Spanish goes a long way, though many locals tied to the tourist trade will speak English.
6. Coronado, Panama
Population: Less than 10,000 (estimate)
Climate: Hot and dry year-round. The average temperature is 86 degrees.
Proximity to major airport: Tocumen International Airport serves Panama City, about an hour away from Coronado. There are nonstop flights to the U.S.
Access to health care: The San Fernando Clinic, which is affiliated with Panama City's San Fernando Hospital, is located in Coronado. Other affordable and well-regarded hospitals in Panama City are all about an hour's drive away.
Cost of living: Panama ranked seventh (in a tie with Portugal) in the Global Retirement Index for lowest cost of living. A retired American couple could live comfortably on $1,200 to $1,300 a month.
The draw: Easy luxurious living for expats. Located on the Pacific coast, not far from Panama's eponymous canal, Coronado, once the playground of wealthy Panamanians, is now home to many foreign retirees. English is widely spoken, and the U.S. dollar is widely accepted. The Coronado Country Club offers beach activities, fine accommodations and dining. U.S. retirees continue to flock to Panama because of its top-notch health care, dollar-based economy and a "pensionado" program that grants residency and other perks to financially qualified retirees.
7. Galway, Ireland
Population: 250,653
Climate: Rainy and cool. Temperatures range from the mid 40s to the high 60s, with rainfall pretty much year-round.
Proximity to major airport: For nonstop flights to the U.S., the best bet is Dublin, three-and-a-half hours from Galway by bus or three hours by train. A closer alternative is Shannon Airport, which is about two hours from Galway by bus.
Access to health care: Galway University Hospitals runs two local facilities, University Hospital Galway and Merlin Park University Hospital, in the city.
Cost of living: Ireland came in 19th out of 22 countries ranked on the Global Retirement Index for lowest cost of living. Only France, Italy and New Zealand have higher living costs. An American couple could live comfortably on $2,500 a month.
The draw: Bad luck of the Irish. Like Spain, Ireland has experienced a crushing housing bust. The good luck, for retirees at least, is that the dramatic drop in real estate prices has put Ireland within reach for those who otherwise couldn't afford retirement in Western Europe. Yes, the weather can be dreary, but Galway's pluses outweigh that minus. The city, located on the western coast of Ireland, is safe, welcoming and walkable. English is universal, of course, and many of the foods and traditions will be familiar to Americans. Expats will find beautiful beaches, verdant countryside and the cobblestone streets of a city center filled with restaurants, bars and shops. Galway is also known for its festivals, which celebrate everything from oysters to horse racing.
8. Tlaxcala, Mexico
Population: 89,795
Climate: Always mild. The high elevation keeps the city's average temperature at around 60 degrees. Summers are rainy, and winters are dry.
Proximity to major airport: Nonstop flights to the U.S. are available from international airports in Puebla (an hour away from Tlaxcala) and Mexico City (about two hours away).
Access to health care: There are multiple medical facilities within the city, and major hospitals can be found in Puebla and Mexico City.
Cost of living: Mexico ranked tenth in the Global Retirement Index for lowest cost of living. An American couple could live modestly on $1,500 a month and very comfortably on $2,500.
The draw: Undiscovered Mexico. Located in the mountains about two hours from Mexico City and an hour from Puebla, Tlaxcala has a much slower pace of life than its bustling neighbors. And unlike some other parts of Mexico, Tlaxcala hasn't been besieged by drug-related violence. The city retains its historical charm thanks to brightly painted colonial-era buildings. An architectural highlight is the large, tree-studded Plaza de la Constitucion, which features fountains, statues, 28 archways and colorful murals narrating the history of the state. Volcanoes dot the horizon, including Malintzin, one of the tallest in Mexico. While Tlaxcala attracts tourists, it hasn't been overrun by expats. That keeps prices in check but also means you'll find far fewer fellow American retirees as you would in, say, San Miguel de Allende.
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____________________________________________________________
12 Cities
Where You Can Buy a Foreclosed Home
for Half Price
By Mamta Badkar | Business Insider – Fri, Dec 14, 2012
Foreclosure related sales account for 19 percent of all home sales in the third quarter, according to RealtyTrac's latest foreclosure sales report. Across the country, there were 193,059 foreclosure sales in the third quarter, and they sold at a discount of 31.81 percent.
We drew on the report to highlight the 12 metros with foreclosure savings higher than 45 percent.
Atlanta (Maulim/Flickr)
1. Atlanta-Sandy Springs-Marietta, Georgia
Foreclosure savings: 45.64 percent
Avg. foreclosure sales price: $113,385
Number of sales: 10,286
1 in every 112 housing units received a foreclosure filing in the third quarter
2. Boston-Cambridge-Quincy, Massachusetts-New Hampshire
Foreclosure savings: 45.76 percent
Avg. foreclosure sales price: $231,388
Number of sales: 1,480
1 in every 447 housing units received a foreclosure filing in the third quarter
3. Toledo, Ohio
Foreclosure savings: 45.91 percent
Avg. foreclosure sales price: $64,072
Number of sales: 569
1 in every 140 housing units received a foreclosure filing in the third quarter
4. Springfield, Massachusetts
Foreclosure savings: 45.99 percent
Avg. foreclosure sales price: $115,409
Number of sales: 246
1 in every 369 housing units received a foreclosure filing in the third quarter
5. San Francisco-Oakland-Fremont, California
Foreclosure savings: 46.09 percent
Avg. foreclosure sales price: $350,160
Number of sales: 4,541
1 in every 178 housing units received a foreclosure filing in the third quarter
Milwaukee River (ifmuth/Flickr)6. Milwaukee-Waukesha-West Allis, Wisconsin
Foreclosure savings: 46.55 percent
Avg. foreclosure sales price: $111,225
Number of sales: 952
1 in every 215 housing units received a foreclosure filing in the third quarter
7. Columbus, Ohio
Foreclosure savings: 46.79 percent
Avg. foreclosure sales price: $99,846
Number of sales: 1,252
1 in every 182 housing units received a foreclosure filing in the third quarter
8. Memphis, Tennessee
Foreclosure savings: 47.82 percent
Avg. foreclosure sales price: $82,186
Number of sales: 574
1 in every 365 housing units received a foreclosure filing in the third quarter
9. Harrisburg-Carlisle, Pennyslvania
Foreclosure savings: 47.82 percent
Avg. foreclosure sales price: $88,681
Number of sales: 92
1 in every 481 housing units received a foreclosure filing in the third quarter
Chicago (mrzeon/Flickr)10. Chicago-Naperville-Joliet, IL-IN-WI
Foreclosure savings: 48.32 percent
Avg. foreclosure sales price: $139,650
Number of sales: 9,262
1 in every 98 housing units received a foreclosure filing in the third quarter
11. Cleveland-Elyria-Mentor, Ohio
Foreclosure savings: 49.95 percent
Avg. foreclosure sales price: $75,883
Number of sales: 1,406
1 in every 156 housing units received a foreclosure filing in the third quarter
12. Dayton, Ohio
Foreclosure savings: 52.13 percent
Avg. foreclosure sales price: $60,150
Number of sales: 650
1 in every 205 housing units received a foreclosure filing in the third quarter
Source: RealtyTrac
MORE FROM
Click green titles below for further info - if the connection time is expired, copy the title and google it
See the related article next below
_____________________________________________
Where You Can Buy a Foreclosed Home
for Half Price
By Mamta Badkar | Business Insider – Fri, Dec 14, 2012
Foreclosure related sales account for 19 percent of all home sales in the third quarter, according to RealtyTrac's latest foreclosure sales report. Across the country, there were 193,059 foreclosure sales in the third quarter, and they sold at a discount of 31.81 percent.
We drew on the report to highlight the 12 metros with foreclosure savings higher than 45 percent.
Atlanta (Maulim/Flickr)
1. Atlanta-Sandy Springs-Marietta, Georgia
Foreclosure savings: 45.64 percent
Avg. foreclosure sales price: $113,385
Number of sales: 10,286
1 in every 112 housing units received a foreclosure filing in the third quarter
2. Boston-Cambridge-Quincy, Massachusetts-New Hampshire
Foreclosure savings: 45.76 percent
Avg. foreclosure sales price: $231,388
Number of sales: 1,480
1 in every 447 housing units received a foreclosure filing in the third quarter
3. Toledo, Ohio
Foreclosure savings: 45.91 percent
Avg. foreclosure sales price: $64,072
Number of sales: 569
1 in every 140 housing units received a foreclosure filing in the third quarter
4. Springfield, Massachusetts
Foreclosure savings: 45.99 percent
Avg. foreclosure sales price: $115,409
Number of sales: 246
1 in every 369 housing units received a foreclosure filing in the third quarter
5. San Francisco-Oakland-Fremont, California
Foreclosure savings: 46.09 percent
Avg. foreclosure sales price: $350,160
Number of sales: 4,541
1 in every 178 housing units received a foreclosure filing in the third quarter
Milwaukee River (ifmuth/Flickr)6. Milwaukee-Waukesha-West Allis, Wisconsin
Foreclosure savings: 46.55 percent
Avg. foreclosure sales price: $111,225
Number of sales: 952
1 in every 215 housing units received a foreclosure filing in the third quarter
7. Columbus, Ohio
Foreclosure savings: 46.79 percent
Avg. foreclosure sales price: $99,846
Number of sales: 1,252
1 in every 182 housing units received a foreclosure filing in the third quarter
8. Memphis, Tennessee
Foreclosure savings: 47.82 percent
Avg. foreclosure sales price: $82,186
Number of sales: 574
1 in every 365 housing units received a foreclosure filing in the third quarter
9. Harrisburg-Carlisle, Pennyslvania
Foreclosure savings: 47.82 percent
Avg. foreclosure sales price: $88,681
Number of sales: 92
1 in every 481 housing units received a foreclosure filing in the third quarter
Chicago (mrzeon/Flickr)10. Chicago-Naperville-Joliet, IL-IN-WI
Foreclosure savings: 48.32 percent
Avg. foreclosure sales price: $139,650
Number of sales: 9,262
1 in every 98 housing units received a foreclosure filing in the third quarter
11. Cleveland-Elyria-Mentor, Ohio
Foreclosure savings: 49.95 percent
Avg. foreclosure sales price: $75,883
Number of sales: 1,406
1 in every 156 housing units received a foreclosure filing in the third quarter
12. Dayton, Ohio
Foreclosure savings: 52.13 percent
Avg. foreclosure sales price: $60,150
Number of sales: 650
1 in every 205 housing units received a foreclosure filing in the third quarter
Source: RealtyTrac
MORE FROM
Click green titles below for further info - if the connection time is expired, copy the title and google it
- 15 Best Housing Markets For The Next Five Years
- 12 Hottest Housing Markets In The World
- 17 Crazy Things That Only Happen In India
See the related article next below
_____________________________________________
Important money-saving article below
Study & Apply
Quotation "Knowledge is no power - only applied knowledge is power"
(Dr. Christian, STAF, Inc.'s founding President)
See the article next above
___________________
Five proven ways to cut mortgage costs
If you want to reduce your mortgage bills, then consider
these surefire tips to help you cut your mortgage costs
Let's not sugarcoat it: High mortgage costs can be a real pain in the butt.
In fact, some 84 percent of homeowners say mortgage costs are a big concern for them and that "high interest rates, high payments, and taxes and escrow are the top three most frustrating issues regarding consumers' current mortgages," according to a September 2012 mortgage study conducted by Carlisle & Gallagher Consulting Group, a management and technology consulting firm.
The good news: There are ways to alleviate some of this financial stress.
Keep reading for some proven tips on how to cut your mortgage costs.
Tip #1 - Refinance Your Mortgage
What makes refinancing your mortgage a buck-saving option?
For starters, refinancing, which is the process of paying off your existing mortgage with a new one, could help you lower your monthly payments if you qualify for a lower interest rate.
Perhaps that's why Joffrey Long, president of Southwestern Mortgage in Granada Hills, California, says that refinancing is a viable option to help lower mortgage expenses.
"Any consumer, at any time, who has a mortgage and is paying interest should be aware of the opportunity to refinance," says Long, who is also the education chair for the California Mortgage Association.
And the opportunity to refinance could result in huge savings.
Where's the Proof?
Consider this example from "A Consumer's Guide to Mortgage Refinancings" published by the Federal Reserve Board, which oversees national monetary policy and banks. It compares monthly payments on a 30-year fixed-rate loan of $200,000 at 5.5 percent and 6 percent:
Monthly payment @ 6 percent $1,199 Monthly payment @ 5.5 percent$1,136 The difference each month is$63
Over 10 years, you will have saved$7,560
That's a considerable amount of savings for just a .5 percent interest rate drop, isn't it? Now just imagine how big your savings would be if you could lower your interest rate by 1 or 2 percent.
However, it's good to keep in mind that refinancing is not for everyone, says Long, and that costs and long-term property plans are things to consider before taking this big step.
Tip #2 - Shop Around for a Super-Low Interest Rate
Whether you're perusing for your first home loan or thinking about refinancing your existing mortgage, shopping around is a key cost-cutter when it comes to your mortgage payments.
According to Long, shopping around is one of the most important ways for homeowners to cut mortgage costs, but unfortunately, some people overlook it because they're too comfortable with their current bank.
"There's a comfort level that people have with big banks," Long says, "and it makes sense because they've been with the bank for many years. But, it's a good idea to check with independent mortgage bankers and lenders to make sure that the rates you're receiving are indeed competitive."
Where's the Proof? "Shopping, comparing, and negotiating may save you thousands of dollars," says the Federal Reserve Board. Just think about it: If you don't compare rates from multiple lenders and banks, how will you truly know if the rates you're receiving are indeed the lowest?
Tip #3 - Take a Second Glance at Your Home Value
When the value of your property goes down, it's not the best news in the world. One upside, however, is that you may not have to pay as much in property taxes, and that could be great news.
And because property values fluctuate up and down depending on the real estate market, it's always a good idea to reassess your home's worth to make sure you're not paying more than you need to in property taxes.
In fact, "After several years without a reassessment, some properties will be over-assessed and some will be under-assessed," notes the New York State Department of Taxation and Finance's website. "This is because some properties will have increased in value, while others may have decreased or stayed the same. Without a reassessment, all of the properties will continue to pay the same amount of taxes."
That's why Long says reassessing your home is important. "If your home is assessed at more than it's worth, a reassessment could help reduce property taxes," he says.
Where's the Proof? Just consider this example from the New York State Department of Taxation and Finance:
Property A Property B Market value 20 years ago 100,000 Taxes 20 years ago$2,000
Market value today 300,000 150,000 Taxes today, after a reassessment$2,667 $1,333
So what's the big takeaway here? If you don't reassess your home value, you could be paying much more in mortgage costs than you have to.
Tip #4 - Give Your Credit Score a Healthy Boost
Oh, credit scores...they can make life amazing - or incredibly miserable. And when it comes to cutting your mortgage costs, a good credit score could be the difference between beautifully low or unpleasantly high payments.
Why? Because according to a consumer credit guide published by Federal Reserve Board, your credit score is used by lenders to evaluate how you handle your financial responsibilities. So, if you've been rather reckless with your finances, you'll likely have a lower credit score which is often reflected in a higher interest rate. Likewise, the higher your credit score, the lower your rate will be.
And this is precisely why raising your credit score is always a good idea.
"Whether you buy or refinance, raising credit does help decrease mortgage rates," says Long.
Where's the Proof? You don't have to look much further than this chart, which shows what kind of interest rates you could get - based on your credit score. The data is pulled by myFICO, a division of the Fair Isaac Corporation, with interest rates as of November 13, 2012.
FICO Score APR 760-8502.926 percent 700-7593.148 percent 680-6993.325 percent 660-6793.539 percent
640-6593.969 percent 620-6394.515 percent As you can see, a good credit score can definitely work in your favor. However, Long warns that boosting your score is a long term proposition, so it may take awhile before you can reap the benefits of an improved score. "It's not just going to go up overnight, so by the time you've raised your credit score, the low rate you want may no longer exist."
Long recommends checking with your lender to find out what kind of score is necessary to qualify for the loans and rates you want - then figure out if the effort will be worth it.
Tip #5 - Make Extra Mortgage Payments
You're probably thinking this is a crazy and contradictory suggestion, but trust us - it's not.
No, this tip is geared towards people who may have a little extra money to spend and are looking to invest it wisely.
In this case, by paying off their mortgage quickly.
In fact, doing so will reduce future interest costs and save you money, notes a 2011 consumer mortgage report by the Federal Deposit Insurance Corporation (FDIC), an agency designed to promote public confidence in banks.
"By adding a little more money to your monthly payment or sending all or part of your payment in sooner than you're scheduled to, you can repay your loan faster and cut your total interest costs by thousands of dollars over the life of the loan," said FDIC's associate director, Luke Brown, in the 2011 consumer report.
Where's the Proof? Let's say you had a $200,000, 30-year fixed-rate mortgage at 6 percent, with a monthly payment of $1,199. If you made just one extra payment a year (13 instead of 12), you could save $47,000 in interest and cut five years from your loan term, says Zillow in its report "7 easy ways to trim your mortgage costs."
Of course, before deciding to embark on this route, you should first determine if you have the funds necessary - and then some, says Long. He recommends having at least six months worth of household income saved up for emergencies before making any extra payments.
See the related article next above
_________________________________________
See the related article next below
________
Study & Apply
Quotation "Knowledge is no power - only applied knowledge is power"
(Dr. Christian, STAF, Inc.'s founding President)
See the article next above
___________________
Five proven ways to cut mortgage costs
If you want to reduce your mortgage bills, then consider
these surefire tips to help you cut your mortgage costs
Let's not sugarcoat it: High mortgage costs can be a real pain in the butt.
In fact, some 84 percent of homeowners say mortgage costs are a big concern for them and that "high interest rates, high payments, and taxes and escrow are the top three most frustrating issues regarding consumers' current mortgages," according to a September 2012 mortgage study conducted by Carlisle & Gallagher Consulting Group, a management and technology consulting firm.
The good news: There are ways to alleviate some of this financial stress.
Keep reading for some proven tips on how to cut your mortgage costs.
Tip #1 - Refinance Your Mortgage
What makes refinancing your mortgage a buck-saving option?
For starters, refinancing, which is the process of paying off your existing mortgage with a new one, could help you lower your monthly payments if you qualify for a lower interest rate.
Perhaps that's why Joffrey Long, president of Southwestern Mortgage in Granada Hills, California, says that refinancing is a viable option to help lower mortgage expenses.
"Any consumer, at any time, who has a mortgage and is paying interest should be aware of the opportunity to refinance," says Long, who is also the education chair for the California Mortgage Association.
And the opportunity to refinance could result in huge savings.
Where's the Proof?
Consider this example from "A Consumer's Guide to Mortgage Refinancings" published by the Federal Reserve Board, which oversees national monetary policy and banks. It compares monthly payments on a 30-year fixed-rate loan of $200,000 at 5.5 percent and 6 percent:
Monthly payment @ 6 percent $1,199 Monthly payment @ 5.5 percent$1,136 The difference each month is$63
Over 10 years, you will have saved$7,560
That's a considerable amount of savings for just a .5 percent interest rate drop, isn't it? Now just imagine how big your savings would be if you could lower your interest rate by 1 or 2 percent.
However, it's good to keep in mind that refinancing is not for everyone, says Long, and that costs and long-term property plans are things to consider before taking this big step.
Tip #2 - Shop Around for a Super-Low Interest Rate
Whether you're perusing for your first home loan or thinking about refinancing your existing mortgage, shopping around is a key cost-cutter when it comes to your mortgage payments.
According to Long, shopping around is one of the most important ways for homeowners to cut mortgage costs, but unfortunately, some people overlook it because they're too comfortable with their current bank.
"There's a comfort level that people have with big banks," Long says, "and it makes sense because they've been with the bank for many years. But, it's a good idea to check with independent mortgage bankers and lenders to make sure that the rates you're receiving are indeed competitive."
Where's the Proof? "Shopping, comparing, and negotiating may save you thousands of dollars," says the Federal Reserve Board. Just think about it: If you don't compare rates from multiple lenders and banks, how will you truly know if the rates you're receiving are indeed the lowest?
Tip #3 - Take a Second Glance at Your Home Value
When the value of your property goes down, it's not the best news in the world. One upside, however, is that you may not have to pay as much in property taxes, and that could be great news.
And because property values fluctuate up and down depending on the real estate market, it's always a good idea to reassess your home's worth to make sure you're not paying more than you need to in property taxes.
In fact, "After several years without a reassessment, some properties will be over-assessed and some will be under-assessed," notes the New York State Department of Taxation and Finance's website. "This is because some properties will have increased in value, while others may have decreased or stayed the same. Without a reassessment, all of the properties will continue to pay the same amount of taxes."
That's why Long says reassessing your home is important. "If your home is assessed at more than it's worth, a reassessment could help reduce property taxes," he says.
Where's the Proof? Just consider this example from the New York State Department of Taxation and Finance:
Property A Property B Market value 20 years ago 100,000 Taxes 20 years ago$2,000
Market value today 300,000 150,000 Taxes today, after a reassessment$2,667 $1,333
So what's the big takeaway here? If you don't reassess your home value, you could be paying much more in mortgage costs than you have to.
Tip #4 - Give Your Credit Score a Healthy Boost
Oh, credit scores...they can make life amazing - or incredibly miserable. And when it comes to cutting your mortgage costs, a good credit score could be the difference between beautifully low or unpleasantly high payments.
Why? Because according to a consumer credit guide published by Federal Reserve Board, your credit score is used by lenders to evaluate how you handle your financial responsibilities. So, if you've been rather reckless with your finances, you'll likely have a lower credit score which is often reflected in a higher interest rate. Likewise, the higher your credit score, the lower your rate will be.
And this is precisely why raising your credit score is always a good idea.
"Whether you buy or refinance, raising credit does help decrease mortgage rates," says Long.
Where's the Proof? You don't have to look much further than this chart, which shows what kind of interest rates you could get - based on your credit score. The data is pulled by myFICO, a division of the Fair Isaac Corporation, with interest rates as of November 13, 2012.
FICO Score APR 760-8502.926 percent 700-7593.148 percent 680-6993.325 percent 660-6793.539 percent
640-6593.969 percent 620-6394.515 percent As you can see, a good credit score can definitely work in your favor. However, Long warns that boosting your score is a long term proposition, so it may take awhile before you can reap the benefits of an improved score. "It's not just going to go up overnight, so by the time you've raised your credit score, the low rate you want may no longer exist."
Long recommends checking with your lender to find out what kind of score is necessary to qualify for the loans and rates you want - then figure out if the effort will be worth it.
Tip #5 - Make Extra Mortgage Payments
You're probably thinking this is a crazy and contradictory suggestion, but trust us - it's not.
No, this tip is geared towards people who may have a little extra money to spend and are looking to invest it wisely.
In this case, by paying off their mortgage quickly.
In fact, doing so will reduce future interest costs and save you money, notes a 2011 consumer mortgage report by the Federal Deposit Insurance Corporation (FDIC), an agency designed to promote public confidence in banks.
"By adding a little more money to your monthly payment or sending all or part of your payment in sooner than you're scheduled to, you can repay your loan faster and cut your total interest costs by thousands of dollars over the life of the loan," said FDIC's associate director, Luke Brown, in the 2011 consumer report.
Where's the Proof? Let's say you had a $200,000, 30-year fixed-rate mortgage at 6 percent, with a monthly payment of $1,199. If you made just one extra payment a year (13 instead of 12), you could save $47,000 in interest and cut five years from your loan term, says Zillow in its report "7 easy ways to trim your mortgage costs."
Of course, before deciding to embark on this route, you should first determine if you have the funds necessary - and then some, says Long. He recommends having at least six months worth of household income saved up for emergencies before making any extra payments.
See the related article next above
_________________________________________
See the related article next below
________
Real life story- we all can learn from this
Warning: This is not always the case as is in this story below.
Study today's facts properly and ask advice from several banks and University Economics Professors. The Economics Professor gladly answer you where you can find reliable info, to whom to contact. Sometime the Professor is a specialist.
Confirm that the answer giver is a up-to-date mortgage-knowledgeable person. Do not ask the mortgage loan brokers - because: "If you ask the barber if you need a hair cut - the barber is going to say "Yes, you need a haircut" - even though you would have only one hair growing"
My (unexpected) success refinancing
to a variable-rate mortgage
In August 1997 I purchased a small, 868-square-foot home for $52,999 with a fixed interest rate of 6.875 percent and no down payment, since I was a first-time homebuyer. I was so proud of my accomplishment. I had what many considered a low interest rate and a great payment of $475 a month; a beautiful 1.11-acre parcel of land; and a home residing off a private dirt road with a pond in front of me and the deep woods of Maine behind me. When I bought my home I was the happiest I had ever been in my life.
Then I got divorced.
I got to keep my home because it was in my name. I also got to keep $10,000 in other debts. That's when I decided to refinance.
In April 2004 I refinanced my home mortgage through a bank that I had been with for over 10 years. It was easy. The only expense to me was $200 for the appraisal of the home, which, lucky for me, had a new value of $92,000. I refinanced $78,000 over a 30-year term with closing costs built into the loan. I paid off my bills and banked $16,000 for home improvements. The interest rate was much lower at 5.25 percent. My payments went up slightly, but I got to walk out the door debt free.
There was a catch.
I had to refinance at a variable interest rate. The contract stated it would stay at the 5.25 rate for three consecutive years. Then, each April, starting on the fourth year it would change to a variable rate with a stipulation of not being able to go lower than or raise more than 2 percent of the current rate per year. The rate could also go no higher than 12 percent. I figured in three years I could refinance again at a lower fixed rate.
Three years came and went.
I was unable to refinance because my debt-to-income ratio was too high. In other words, although I had excellent credit, I owed too much compared to my income to be able to refinance again. I decided at that point I could stick it out one more year. What's the worst that could happen? It could go up to 7.25 percent?
April of the fourth year came and I received a letter from my bank regarding my mortgage. It stated that according to my contract I was now carrying a variable interest rate. With fingers crossed, I read the letter to find that my interest rate was changing -- but it wasn't going up; it was going down! In 2008 my home mortgage interest rate dropped to 4.25 percent. I was ecstatic!
My luck kept coming.
Due to the economy the interest rate on my mortgage kept getting better. Each year in April I would tell myself I could stick it out one more year with the variable rate on my loan. I figured it was once at 6.25 percent. If for some reason things got bad, I would refinance again but for now, I could use the time to pay down debts and eventually reach a debt-to-income ratio that would allow me to refinance. Last April, when my letter came in the mail, I opened it slowly and dreaded the contents inside. To my amazement my interest rate had dropped again, this time to a low 3.25 percent. It can't possibly get any better, I thought. It will either stay or go up next time for sure.
In April of this year my letter from the bank came to me with an interest rate of 3.125 percent. I have an incredibly low payment now of $500 a month that includes my homeowners insurance and taxes. You can't rent for that cheap anywhere in my area.
The last few years have been good to me financially. I have paid off over $12,000 in debt, completed numerous home improvements, and lowered my expenses to a meager six bills: mortgage, car payment, car insurance, electric, phone, and Internet. My debt ratio is considerably lower to the point that I have, in the last few months, acquired a credit card and have also been able to purchase a scooter to ride to work, which saves gallons of gas. I have some savings in the bank. I did stop by my bank last week to inquire about refinancing but lucky for me the loan officer shared with me she had just attended a big conference and her superiors don't foresee a rise in the interest rates until at least 2014. That's good news for me. I have chosen to keep my variable rate for a few more years rather than have to refinance.
See the WARNING and advice at the beginning of this article
_______________________________
Warning: This is not always the case as is in this story below.
Study today's facts properly and ask advice from several banks and University Economics Professors. The Economics Professor gladly answer you where you can find reliable info, to whom to contact. Sometime the Professor is a specialist.
Confirm that the answer giver is a up-to-date mortgage-knowledgeable person. Do not ask the mortgage loan brokers - because: "If you ask the barber if you need a hair cut - the barber is going to say "Yes, you need a haircut" - even though you would have only one hair growing"
My (unexpected) success refinancing
to a variable-rate mortgage
In August 1997 I purchased a small, 868-square-foot home for $52,999 with a fixed interest rate of 6.875 percent and no down payment, since I was a first-time homebuyer. I was so proud of my accomplishment. I had what many considered a low interest rate and a great payment of $475 a month; a beautiful 1.11-acre parcel of land; and a home residing off a private dirt road with a pond in front of me and the deep woods of Maine behind me. When I bought my home I was the happiest I had ever been in my life.
Then I got divorced.
I got to keep my home because it was in my name. I also got to keep $10,000 in other debts. That's when I decided to refinance.
In April 2004 I refinanced my home mortgage through a bank that I had been with for over 10 years. It was easy. The only expense to me was $200 for the appraisal of the home, which, lucky for me, had a new value of $92,000. I refinanced $78,000 over a 30-year term with closing costs built into the loan. I paid off my bills and banked $16,000 for home improvements. The interest rate was much lower at 5.25 percent. My payments went up slightly, but I got to walk out the door debt free.
There was a catch.
I had to refinance at a variable interest rate. The contract stated it would stay at the 5.25 rate for three consecutive years. Then, each April, starting on the fourth year it would change to a variable rate with a stipulation of not being able to go lower than or raise more than 2 percent of the current rate per year. The rate could also go no higher than 12 percent. I figured in three years I could refinance again at a lower fixed rate.
Three years came and went.
I was unable to refinance because my debt-to-income ratio was too high. In other words, although I had excellent credit, I owed too much compared to my income to be able to refinance again. I decided at that point I could stick it out one more year. What's the worst that could happen? It could go up to 7.25 percent?
April of the fourth year came and I received a letter from my bank regarding my mortgage. It stated that according to my contract I was now carrying a variable interest rate. With fingers crossed, I read the letter to find that my interest rate was changing -- but it wasn't going up; it was going down! In 2008 my home mortgage interest rate dropped to 4.25 percent. I was ecstatic!
My luck kept coming.
Due to the economy the interest rate on my mortgage kept getting better. Each year in April I would tell myself I could stick it out one more year with the variable rate on my loan. I figured it was once at 6.25 percent. If for some reason things got bad, I would refinance again but for now, I could use the time to pay down debts and eventually reach a debt-to-income ratio that would allow me to refinance. Last April, when my letter came in the mail, I opened it slowly and dreaded the contents inside. To my amazement my interest rate had dropped again, this time to a low 3.25 percent. It can't possibly get any better, I thought. It will either stay or go up next time for sure.
In April of this year my letter from the bank came to me with an interest rate of 3.125 percent. I have an incredibly low payment now of $500 a month that includes my homeowners insurance and taxes. You can't rent for that cheap anywhere in my area.
The last few years have been good to me financially. I have paid off over $12,000 in debt, completed numerous home improvements, and lowered my expenses to a meager six bills: mortgage, car payment, car insurance, electric, phone, and Internet. My debt ratio is considerably lower to the point that I have, in the last few months, acquired a credit card and have also been able to purchase a scooter to ride to work, which saves gallons of gas. I have some savings in the bank. I did stop by my bank last week to inquire about refinancing but lucky for me the loan officer shared with me she had just attended a big conference and her superiors don't foresee a rise in the interest rates until at least 2014. That's good news for me. I have chosen to keep my variable rate for a few more years rather than have to refinance.
See the WARNING and advice at the beginning of this article
_______________________________
The Formidable Co-op Approval Process
Date: December 2012
Click green for further info
Formidable: inspiring fear or respect through being impressively large, powerful, intense, or capable
"a formidable opponent". Synonyms: tremendous - redoubtable - dreadful - terrible
True: that's what Co-0p board of directors can be - think twice
Have a condo - gives you more freedom & puts the power in your hand
NO matter how wealthy you are, or how much money you spend on a co-op apartment in New York City, what you have to go through to get approved by the building’s board of directors is a level of scrutiny that no one is spared.
“I tell my clients that it’s the most gross invasion of your privacy you’ll ever experience,” said Douglas Heddings, the president of the Heddings Property Group. “But if you want to buy a co-op, there’s no getting around it.”
What began as a screening process to maintain social exclusivity is now justified as a way to ensure a building’s financial stability — and in fact, New York has had fewer foreclosures than other markets largely because co-ops will not accept buyers who bid on apartments they cannot afford.
Although many condominiums have a similar application process, the big difference is that co-ops can reject an applicant without giving a reason, forcing the seller to find someone else. If a condo rejects an applicant, the building must agree to buy the apartment on the same terms — an option that is seldom exercised, so the approval process is more of a formality.
Real estate agents and lawyers say rejections don’t happen often, because brokers generally vet buyers’ financial qualifications before submitting an offer and will advise buyers to avoid an application process that is unlikely to go well. But once you get to that stage, here’s what the typical board application package includes.
Application and Cover Letter
After your offer has been accepted, the building will send you an application asking for your current address and employment history as well as about your finances and any litigation you’ve been involved in. It will also list the documents you have to submit and include forms to sign, like a lead-based-paint disclosure form.
You’ll be expected to write a cover letter introducing yourself and explaining why you like the building. “Flattery will get you a long way,” Mr. Heddings said. “But it’s key not to be presumptuous. Present yourself as a prospective purchaser — don’t presume you’ll be approved.”
He also suggested organizing your package so that busy board members can quickly find the information they’re looking for.
Financial Statement
The most important part of your application is a financial statement summarizing assets, liabilities, income and expenses. This means information on bank and brokerage accounts, car loans, any mortgages, your salary and bonuses, the value of your art collection, tuition payments, child support, life insurance and whatever else your agent or lawyer will advise you to include.
You’ll need supporting documents for everything on your financial statement — like copies of pay stubs, art appraisals and retirement account statements — and the numbers must match everything on your summary. Honesty really is the best policy here; boards will scrutinize these figures.
Or as Ron Gitter, a Manhattan real estate lawyer, put it, “Stretching is good for yoga, but not for co-op applications.”
Most buildings also require two to three years’ income tax returns, including all schedules, and a copy of your mortgage application and commitment letter if you’re financing the purchase.
Reference Letters
Mr. Heddings suggests: two to four personal references vouching for your character as a friend and potential neighbor; two to four business references addressing your integrity in business dealings; and one to three financial references from an accountant, portfolio manager or bank representative vouching for your financial responsibility.
For the personal references, the writers should be encouraged to include details that give a sense of your interests and family life. “I like to have it somewhat personal — like, ‘We knew each other in college and were on the rowing team,’ or ‘We ski together every year,’ ” said Tim Desmond, a senior vice president of Stribling & Associates.
As often as possible, the references should talk about both people in a couple and be written by New Yorkers — as opposed to childhood friends in other cities. “If you’re living in New York and none of your letters are from New York,” Mr. Desmond said, “that sort of raises an eyebrow.”
Background Check
Besides poring over your application package, boards do their own research to find out whether you’re hiding anything that might make you an undesirable neighbor. The research typically includes credit and criminal-background checks.
“Some of the higher-end buildings are spending $3,000 an applicant,” said Michael Wolfe, president of Midboro Management, a property manager in Manhattan, “and they’re using an agency to dig through your background with a fine-tooth comb.”
He recommends disclosing any red flag — like a criminal conviction, lawsuit or bankruptcy — and explaining what happened, before a board has a chance to discover it independently. “Once you hide it,” Mr. Wolfe said, “the board thinks it’s worse than it is.”
Another tip is to run a social media check on yourself before you submit any offers, and delete, if you can, any family member’s dodgy digital tracks.
“You should have cleaned up your Facebook page and your kids’ Facebook pages when you started looking for an apartment,” said Teri Karush Rogers, editorial director at BrickUnderground.com, a New York real estate guide.
The Interview
Many buyers worry about meeting board members for an interview — the final stage of the application process — but getting to this point usually means you’ve gotten a green light.
“Very few boards ever interview anyone without the application being something they approve,” Mr. Wolfe said, adding that out of the roughly 350 transactions his company was involved in last year, fewer than 20 involved turndowns, and only one of those happened after a board interview.
Brokers say typical questions include: Will this be a primary residence? Who else will be living with you? Do you play any musical instruments? Do you entertain often? Do you plan on doing renovations? Do you have pets?
Ms. Rogers says that boards in most pet-friendly buildings don’t ask to meet pets, and that the best way to avoid this possibility is to submit reference letters for your pet, or a certificate from a class like the American Kennel Club’s Canine Good Citizen program.
Another commonly asked question is whether you are willing to serve on the co-op board. “If you’re applying to a very small co-op where they need active people,” Ms. Rogers said, unwillingness “could be a deal-breaker.”
Boards are not supposed to ask about marital status, race, religion or sexual orientation, which could open up a building to a discrimination lawsuit if you were turned down. Although there are ways that board members can sidle up to these topics, brokers and building managers say they are rarely employed.
“I find that over all, boards are very fair,” Mr. Wolfe said. “They’re not on a power trip. They want pleasant neighbors.”
Source: NYT - Dated: December 2012
This article is for your private use, only
except can be used for educational purposes
____________________________________________________
Necessary information for all investing activities
Financial - Rule of 72
* A useful tool for your investment planning
A rule of thumb for (click green) exponential growth (LAT. exponere = to put forth) at a constant rate.
An approximation of the doubling time formula used in population growth, according to which the doubling time is roughly equal to 70 divided by the percent growth rate (using continuous compounding, the actual number would be about 69.3147181 or 100 times the natural logarithm of 2). In terms of money, since we use the annual effective interest rate (which is equivalent to annual compounding) for interest rates between 4% and 12% the number which gives the most accurate result is actually 72. Therefore, divide 72 by the percent interest rate to determine the approximate amount of time to double your money in an investment.
For example, at 8% interest, your money will double in approximately 9 years (72/8 = 9)
____________________________
ADDITIONAL BUSINESS RELATED INFORMATION
SEE - TAB: services, SUB-TAB: Successology® - Success for Life
Advice for How to Create a Business and
Other Topics
___________________________________________________
Financial - Rule of 72
* A useful tool for your investment planning
A rule of thumb for (click green) exponential growth (LAT. exponere = to put forth) at a constant rate.
An approximation of the doubling time formula used in population growth, according to which the doubling time is roughly equal to 70 divided by the percent growth rate (using continuous compounding, the actual number would be about 69.3147181 or 100 times the natural logarithm of 2). In terms of money, since we use the annual effective interest rate (which is equivalent to annual compounding) for interest rates between 4% and 12% the number which gives the most accurate result is actually 72. Therefore, divide 72 by the percent interest rate to determine the approximate amount of time to double your money in an investment.
For example, at 8% interest, your money will double in approximately 9 years (72/8 = 9)
____________________________
ADDITIONAL BUSINESS RELATED INFORMATION
SEE - TAB: services, SUB-TAB: Successology® - Success for Life
Advice for How to Create a Business and
Other Topics
___________________________________________________
IMPORTANT INFO
Save on heating costs: De-draft your home now
Hunt down those annoying drafts of cold air to make your home cozier
and more energy efficient this winter
A chilly draft in your house won't just keep you from getting a good night's sleep, but it'll also wreak havoc on your utility bills. So, make sure to protect your beauty sleep - and your pocket book - by hunting down those drafts and stopping them in their tracks.
"Start with a general walk-through of your house on a windy day. Try to feel where the cold air is coming in," says Marie Leonard, author of the DIY book, Marie's Home Improvement Guide.
Once you've identified where the drafts are coming from, there are a variety of steps you can take to make your home a bit cozier.
Keep reading to learn more…
Tip #1 - Replace Your WindowsThis might be one of the biggest improvements you can make to a drafty house, especially if your home has older, single pane windows.
"Most of the older windows are single pane glass, which has no insulation factor at all," Leonard says. "And these older windows tend not to fit perfectly, so over time drafts come in."
And the advantage of replacing older, single pane windows with newer windows can be huge.
"Replacement windows these days are double pane, and they have a gas between the two panes which is an insulating factor," Leonard says. "If they're installed correctly and well, they fit perfectly and seal all the gaps in the wall - virtually eliminating drafts around the windows."
And while Leonard notes that most windows cost between $300 and $500 dollars, you'll likely recoup some of that money in savings on your utility bills, and your home will feel a lot cozier.
Sounds like a pretty good investment, right?
Tip #2 - Use Caulk To Fill All GapsUsing caulk to fill in gaps around windows and doors is another way to reduce drafts in your home.
"Permanent caulking, often called window and door caulk, goes around windows and doors where wood meets the wall, like the window or door frame," says Leonard. "Anywhere two different materials connect, a gap can form over time. When you caulk these gaps, you can stop drafts of cold air from leaking in."
Aside from doors and windows, you'll also want to check the gaps around the places where electrical or gas lines enter your house. Why? Because "If it's not a tight fit where these lines come through, air and wind can sneak in," Leonard says.
In addition to protecting your home from drafts, caulking your home's exterior will also help keep water from getting in and protect your walls from water damage.
Tip #3 - Install New DoorsJust like your windows, over time your doors might shift in their frames. When they don't fit correctly, drafts can get in around the edges.
In fact, the Department of Energy's (DOE) website notes that you should always inspect doors for air leaks.
"See if you can rattle them, since movement means possible air leaks," writes the DOE. "If you can see daylight around a door or window frame, then the door or window leaks."
As a solution, the DOE suggests you replace your old doors with new, "high-performance" ones.
"Technology has changed," Leonard says. "Exterior doors are built better these days. They have good insulation qualities."
And because a new door can cost up to $1200 including installation, according to Leonard, you'll probably want a professional to handle the installation.
"Hanging doors correctly is very challenging," Leonard warns. "It takes someone who knows what they're doing. Doors don't close easily unless they're hung correctly."
[Looking to make some home improvements? Click to find the right contractor now.]
Tip #4 - Weather-Strip Your Current Windows and DoorsIf replacing your door isn't possible right now and you can't stand the drafts coming through, it might be time to update your weather stripping.
This is usually some kind of foam or rubber strip that fits inside the door jamb. When the door closes, it presses against this strip, making an airtight seal to keep drafts from getting in.
"Weather stripping is a good way to get through another winter until you have money to replace a door," Leonard suggests. "Over time, weather stripping doesn't work as well as it used to. But it should be fairly simple to take out the old weather stripping and replace it with new weather stripping."
Another option is a plastic sheeting you stick over your window and window frame, often with double sided tape, and then blow a hair dryer over it. "The heat from the hair dryer shrinks the plastic, creating an invisible, draft-proof barrier," says Leonard. "But it's not weather proof, so make sure you put it on inside your house, not outside."
Installed correctly, weather stripping can go a long way in cutting down drafts around your home.
Tip #5 - Get An Energy AuditIf you've tried some of the suggestions above, but still feel those aggravating blasts of cold air, it might be time to call in the professionals and get a home energy audit.
"You can get a home inspection - a thermal imaging audit," Leonard says. "They'll come, fill your house up with hot air, and see where the hot air leaks out. For people struggling to figure out the problem and find their leaks, this is a great solution."
Not only will an energy audit help you locate your problem areas, but your auditors might suggest some priorities to fix that will help you save energy - and money.
"There are many programs available through state governments or energy companies that offer incentives or rebates to consumers to help them be more energy efficient," Leonard notes.
It's enough to make you feel warm all over.
Comments from the public:
(1) A window insulating kit is an inexpensive fix that can almost double the R value of windows in an older home.
(2) You're speaking of duct tape and visqueen? (STAF comment: Visqueen a type of polyethylene sheet used to cover areas in building construction and in making waterproof items)
.
Save on heating costs: De-draft your home now
Hunt down those annoying drafts of cold air to make your home cozier
and more energy efficient this winter
A chilly draft in your house won't just keep you from getting a good night's sleep, but it'll also wreak havoc on your utility bills. So, make sure to protect your beauty sleep - and your pocket book - by hunting down those drafts and stopping them in their tracks.
"Start with a general walk-through of your house on a windy day. Try to feel where the cold air is coming in," says Marie Leonard, author of the DIY book, Marie's Home Improvement Guide.
Once you've identified where the drafts are coming from, there are a variety of steps you can take to make your home a bit cozier.
Keep reading to learn more…
Tip #1 - Replace Your WindowsThis might be one of the biggest improvements you can make to a drafty house, especially if your home has older, single pane windows.
"Most of the older windows are single pane glass, which has no insulation factor at all," Leonard says. "And these older windows tend not to fit perfectly, so over time drafts come in."
And the advantage of replacing older, single pane windows with newer windows can be huge.
"Replacement windows these days are double pane, and they have a gas between the two panes which is an insulating factor," Leonard says. "If they're installed correctly and well, they fit perfectly and seal all the gaps in the wall - virtually eliminating drafts around the windows."
And while Leonard notes that most windows cost between $300 and $500 dollars, you'll likely recoup some of that money in savings on your utility bills, and your home will feel a lot cozier.
Sounds like a pretty good investment, right?
Tip #2 - Use Caulk To Fill All GapsUsing caulk to fill in gaps around windows and doors is another way to reduce drafts in your home.
"Permanent caulking, often called window and door caulk, goes around windows and doors where wood meets the wall, like the window or door frame," says Leonard. "Anywhere two different materials connect, a gap can form over time. When you caulk these gaps, you can stop drafts of cold air from leaking in."
Aside from doors and windows, you'll also want to check the gaps around the places where electrical or gas lines enter your house. Why? Because "If it's not a tight fit where these lines come through, air and wind can sneak in," Leonard says.
In addition to protecting your home from drafts, caulking your home's exterior will also help keep water from getting in and protect your walls from water damage.
Tip #3 - Install New DoorsJust like your windows, over time your doors might shift in their frames. When they don't fit correctly, drafts can get in around the edges.
In fact, the Department of Energy's (DOE) website notes that you should always inspect doors for air leaks.
"See if you can rattle them, since movement means possible air leaks," writes the DOE. "If you can see daylight around a door or window frame, then the door or window leaks."
As a solution, the DOE suggests you replace your old doors with new, "high-performance" ones.
"Technology has changed," Leonard says. "Exterior doors are built better these days. They have good insulation qualities."
And because a new door can cost up to $1200 including installation, according to Leonard, you'll probably want a professional to handle the installation.
"Hanging doors correctly is very challenging," Leonard warns. "It takes someone who knows what they're doing. Doors don't close easily unless they're hung correctly."
[Looking to make some home improvements? Click to find the right contractor now.]
Tip #4 - Weather-Strip Your Current Windows and DoorsIf replacing your door isn't possible right now and you can't stand the drafts coming through, it might be time to update your weather stripping.
This is usually some kind of foam or rubber strip that fits inside the door jamb. When the door closes, it presses against this strip, making an airtight seal to keep drafts from getting in.
"Weather stripping is a good way to get through another winter until you have money to replace a door," Leonard suggests. "Over time, weather stripping doesn't work as well as it used to. But it should be fairly simple to take out the old weather stripping and replace it with new weather stripping."
Another option is a plastic sheeting you stick over your window and window frame, often with double sided tape, and then blow a hair dryer over it. "The heat from the hair dryer shrinks the plastic, creating an invisible, draft-proof barrier," says Leonard. "But it's not weather proof, so make sure you put it on inside your house, not outside."
Installed correctly, weather stripping can go a long way in cutting down drafts around your home.
Tip #5 - Get An Energy AuditIf you've tried some of the suggestions above, but still feel those aggravating blasts of cold air, it might be time to call in the professionals and get a home energy audit.
"You can get a home inspection - a thermal imaging audit," Leonard says. "They'll come, fill your house up with hot air, and see where the hot air leaks out. For people struggling to figure out the problem and find their leaks, this is a great solution."
Not only will an energy audit help you locate your problem areas, but your auditors might suggest some priorities to fix that will help you save energy - and money.
"There are many programs available through state governments or energy companies that offer incentives or rebates to consumers to help them be more energy efficient," Leonard notes.
It's enough to make you feel warm all over.
Comments from the public:
(1) A window insulating kit is an inexpensive fix that can almost double the R value of windows in an older home.
(2) You're speaking of duct tape and visqueen? (STAF comment: Visqueen a type of polyethylene sheet used to cover areas in building construction and in making waterproof items)
.
(3) Check out the studies that they've done that say you have a 25-30 year payback on window re placement. I do energy audits myself and I never recommend windows, if they are not broken spend your money else were that will give you a better pay back. How about checking your old furnace? If you have an old draft hood furnce that's only 65% effecient you will have a 5-7 year pay back if you upgrade to at least a 90% effecient furnace. That means that you only get $0.65 to every $1 spent on heating.....NOT GOOD!
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________________________________________________________________________
Study the article above to create substantial savings in your home's utility bills
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Expensive remodeling costs you haven't planned for
Have you factored Murphy's Law into your remodeling budget?
Know how to prepare for these hidden costs before you start a project
Ten percent doesn't sound like much… that is, until a contractor is advising you to add it on to the four- or five-digit price of your remodeling project.
The reality of remodeling is that there are many unexpected costs you may never see coming.
"We usually recommend people add 10 to 20 percent onto the budget, because there are always unforeseen things," says Jeff Gorszczyk, certified remodeling project manager with Cook Remodeling & Custom Construction in Mesa, Ariz.
In fact, a survey on the "Top Five Remodeling Headaches" from Consumer Reports supports Gorszczyk's projection: Half of the respondents faced unexpected remodeling issues that cost hundreds to thousands of dollars, according to senior editor Daniel DiClerico.
But hiring a qualified contractor - and heeding their advice regarding budgeting and potential problems - will go a long way toward preparing yourself financially and emotionally for these unexpected budget-crushers.
[Looking for a good home contractor? Click here to find one in your area.]
"A good contractor can't see through walls," DiClerico says, but will know what to check for to help ensure there are no surprises down the line. "They will do the necessary poking-around to find out what's going on behind the walls before asking you to sign a contract," he says.
Want to see what's behind the curtain of your home remodel? Here are few of the most common-yet-unexpected expenses people run into on remodeling projects, and how to plan for them.
Unexpected Expense #1: Pest ControlIf only these walls could talk! Many unexpected remodeling costs come from issues that are concealed behind a home's walls and floors. In fact, insects and other pests that are drawn to the food and moisture found in kitchens and bathrooms may remain hidden behind walls, says Consumer Reports in an article titled "'If only I had known that before…' and other remodeling headaches."
That was the situation that blogger and retro-décor enthusiast Pam Kueber encountered during a renovation of her home office. Kueber, who blogs at RetroRenovation.com, uncovered a nest of carpenter ants within the walls, resulting in a $350 charge from the exterminator.
The good news is that some insects, like termites, do leave tell-tale trails that a good contractor should spot, DiClerico says. And even if your state doesn't require a pre-remodeling inspection, it might be smart to get one so that you know what costs you could incur.
Unexpected Expense #2: Rotten FlooringWhile unseen, slow-but-steady leaks from a toilet or shower can cause serious damage. Water can eventually rot the wood that supports everything in a room - creating not only a dangerous situation but a very unexpected remodeling expense.
This is what contractor Jim Casey, of Jim Casey Construction in Athens, Ga., experienced during a bathroom remodel. A previously undiscovered shower leak had rotted the floor joists underneath the shower. To provide the proper support, the entire floor and sub-floor had to be replaced - adding a significant amount to the cost of the project.
[Do you suspect something rotten in your remodel? Click here to find the right contractor for the job.]
Moral of the story? If you're remodeling a kitchen or bathroom, be sure to consider this scenario, as the damage can be widespread and costly, DiClerico says.
Unexpected Expense #3: Outdated WiringFor a remodeling project to pass electrical inspection, the wiring must be brought "up to code." This refers to compliance with the National Electrical Code (NEC), which most states and municipalities have adopted, according to the National Fire Protection Association.
But it's not always easy to tell if the wiring has been updated prior to beginning a remodeling project. While upgrades require a permit and must be reported to the county, that doesn't always happen, Gorszczyk says, so it's not always easy to know the age of a home's wiring. And once the contractor comes across outdated wiring, "We have to upgrade it or we're liable," he says.
This kind of project can quickly snowball into a major shock to your budget - if you aren't prepared. For an average-sized home, updating wiring will cost $3,500 to $8,000, according to the National Association of Realtors' HouseLogic's article titled "Do you need an electrical service upgrade?" Costs can also range as high as $20,000 if a home is particularly large or the wiring is difficult to access.
Unexpected Expense #4: Structural IssuesLike electrical upgrades, structural revisions made by a previous homeowner might not always appear in the property report that your contractor will pull prior to beginning work, DiClerico says. In some areas, renovations made to homes may even pre-date the local jurisdiction's documentation system.
This means it can be difficult to detect if weight-bearing walls and joists - which carry the serious load of supporting the overhead floors - have been compromised by moisture, or if drywall has been weakened by high humidity or a water leak, notes Granite Transformations, a granite countertop company in Miramar, Fla.
[Don't bring the house down during your remodel. Click here to find a home contractor who can help.]
Other unrecorded structural issues may not pose a threat to your safety, but they can endanger your budget.
In an article by the National Kitchen & Bath Association titled "What to Expect…When Expecting a New Kitchen or Bath: Part I," kitchen and bath designer Molly Erin McCabe recalls a project that uncovered an abandoned chimney in the wall where the light switches were to be installed. Because it wasn't cost-effective to remove the chimney, they moved the light switches, and likely incurred an additional charge for the plan change.
Unexpected Expense #5: Asbestos RemovalThe building blocks of homes built in the 1970s or earlier - insulation, flooring, wall materials - usually don't look much different from modern-day materials, but they may contain asbestos. And what you can't see could hurt your wallet, and even your health.
That's because disturbing these materials through remodeling can release fibers that have been found to increase your risk of developing lung disease, according to the U.S. Environmental Protection Agency. And unfortunately, the only way to know for certain if an older home has asbestos is to hire a licensed inspector to take a sample for testing.
If the asbestos material is in bad shape, a professional may need to seal or cover it, according to the EPA, and that comes with additional costs.
Unexpected Expense #6: Plumbing Update or RepairWhile many homeowners don't include new plumbing in their budget - opting to work around the existing system, it's usually cheaper to do any necessary repairs while the system is exposed during remodeling - and before any minor issues have developed into leaks or breaks that cause costly water damage.
That's why the National Association of Realtors, in the article "Do you need to replace your plumbing?", suggests checking for corrosion, discoloration, dimpling, stains, or flaking in the tubing. By checking before the work begins and including the cost in the budget, you might avoid the shock of this unexpected expense.
In addition, plumbing systems can be damaged by remodeling work, notes Conover Plumbing in Culver City, Calif. While this dilemma can't be anticipated, homeowners can plan ahead by knowing where the main water shut-off is located in order to minimize damage.
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For pictures: click green title and other green areas below - if the connection has expired,
put the title on internet search
Woman lives in 130-square-foot house
Ella Jenkins, 24, had never even picked up a saw before deciding to build her miniature cabin.
Cost only $16K
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- Shipping Containers to Become Condos
- in Detroit and nationwide - worldwide
- Click green for a picture: Enlarge Photo
Strong, durable and portable, shipping containers stack easily and link together like Legos. About 25 million of these 20-by-40 feet multicolored boxes move through U.S. container ports a year, hauling children's toys, flat-screen TVs, computers, car parts, sneakers and sweaters.
But so much travel takes its toll, and eventually the containers wear out and are retired. That's when architects and designers, especially those with a "green" bent, step in to turn these cast-off boxes into student housing in Amsterdam, artists' studios, emergency shelters, health clinics, office buildings.
Despite an oft-reported glut of unused cargo containers lying idle around U.S. ports and ship yards - estimates have ranged from 700,000 to 2 million - the Intermodal Steel Building Units and Container Homes Association puts the number closer to 12,000, including what's sold on Craigslist and eBay.
Joel Egan, co-founder of HyBrid Architecture in Seattle, which has built cottages and office buildings from shipping containers for close to a decade and coined the term " cargotecture" to describe this method of construction, warns that although containers can be bought for as little as $2,500, they shouldn't be seen as a low-cost housing solution.
"Ninety-five percent of the cost still remains," he says.
Here's a few recent North American projects - including the new condo complex - where the shipping container takes center stage:
Exceptional Green Living on Rosa Parks, Detroit: Container to Condo
This 20-unit, four-story condo complex consisting of 93 stacked cargo containers - the first U.S. multi-family residence to be built from these discarded vessels - has been in the works for four years. Tabled when the national real estate market shattered, the project is now scheduled to break ground early next year in midtown Detroit. The units will come rigged with ductless heating and air systems, tankless water heaters and other energy-saving systems. "We're putting money into these energy efficiencies so that the tenant has reduced energy costs," says Leslie Horn, CEO of Three Squared, the project's developer. "And we can build in less than half the time."
The Sunset Cargotecture House, Seattle: Home Sweet Container
Image Credit: Photo by Thomas J. Story, Sunset Publishing Corp.Built and designed by HyBrid Architecture as the Sunset magazine Idea House 2011, this 192-square-foot solar-powered backyard container cottage is not even half the size of a New York City studio apartment.
Still, it manages to pack in a galley kitchen and micro bathroom with a ceiling-mounted showerhead - the floor's redwood slats hide a drain - and can sleep up to four (a bed unfolds from the wall, a couch converts, another bed can be added). But given the close quarters, it's probably best if everyone's related.
Cinco Camp, Brewster County, Texas: Light on the Land
Image Credit: Hester + HardawayFive freestanding cargo containers lined up and cinched together on a 3,000-acre ranch in the rugged, rocky high desert mountains of West Texas reduce life to its basics: One container holds a living room; two house bedrooms and bathrooms; another a kitchen and eating area, while the last is for storage.
Minimal modification was the goal here. "It was more about the arrangement of the boxes. Most architects see those containers, and they want to manipulate them too much and cut them all up," says Mark Wellen, who designed Cinco Camp for Roger Black, a former Rolling Stone and New York Times art director who'd grown sick of the Hamptons.
Stripped of their paint and topped with large roof canopies for shade, each box sits off the ground on short stilts. "There's rattlesnakes, scorpions, spiders, all kinds of bugs," says Wellen. "We made a conscious effort to get it off the ground."
Weirdly enough, a major east-west railroad runs through this middle-of-nowhere terrain three to five times a day, its long, distant cars loaded with shipping containers, a regular reminder from where this home came.
The Box Office, Providence, R.I.: Lego Land
Image Credit: Nat ReaRust-tinted brown wasn't the look the Box Office designers were going for. This three-story, 12,000-square-foot complex, which sits like a child's Lego dome in a post-industrial section of Providence, is the largest office building in the United States made exclusively of cargo containers.
"The building is made of 140 tons of recycled steel, but it's very difficult for a green building to have an identity," says Peter Case, who developed and helped design the Box Office. "The bright paint, the solar panels on top get the message across that this is a green building."
Case abandoned plans for a conventional office complex when the economy faltered and instead bought 35 shipping containers. But, he says, with construction costs at $1.6 million, the containers didn't really save him money.
"A shipping container doesn't want to be a building," Case explains. "So you have to do quite a bit of gymnastics that cost money." But the Box Office is four times more energy efficient than a typical office building, and that's where Case says he'll see savings. "There's no way for air to come in or out of a shipping container," he says, "unless you want it to."
Muvbox, Montreal: Take a Break in a Crate
Image Credit: Courtesy of MuvboxAn art object by night and a snack cart by day, this pop-up lobster shack opened in the Old Port of Montreal two years ago. Motorized and illuminated by solar-powered batteries, Muvbox opens and closes in about 90 seconds - the side panels unfold to become terraces with table-seating.
The brainchild of Daniel Noiseaux, the design-obsessed restaurateur who brought wood-oven pizza to Montreal 31 years ago, Muvbox was inspired by the horse-drawn snack carts and old-style canteens of centuries past, and Adam Kalkin's Push Button House installation of 2006.
While Montreal was first, Muvboxes have since surfaced in Paris, Toronto and New York's Times Square, where the lobster frescoes yield to black-and-white stripes, and the menu changes from lobster to hot dogs and bagels. A movable feast indeed.
DeKalb Market, Brooklyn, N.Y.: A Portable Souk
Image Credit: Eddy ValanteA cluster of about 60 food and Etsy-style arts and clothing vendors operating out of shipping containers on a vacant Brooklyn lot, the DeKalb Market is no Dordoy Bazaar in Kyrgyzstan or Seven-Kilometer Market in Ukraine. The first U.S. container project of U.K.-based developer Urban Space - most famous for its Container City complexes in London - DeKalb dismantled in October to make way for a long-stalled housing-retail development as its planners continue to negotiate for a new location. Good thing those containers are so portable.
Aprisa Mexican Cuisine, Portland, Ore.: A Movable Taqueria
Image Credit: Courtesy of Kirk Lance
Having had two restaurants fail on him, Kirk Lance vowed if he ever opened another he'd have to be able to pick it up and move it if it started to backslide.
As he drove down the interstate in Oregon, where Lance had moved and had his eco-conscience raised, he noticed "giant yards … with hundreds, possibly thousands" of shipping containers stacked up and suddenly saw his next restaurant. He bought one of these cargo holders, for about $3,000.
"It was the culmination of sustainability and recycling and portability all coming together," Lance says. And then there's the romance of it: "This shipping container has traveled all over the world," says Lance. "It's shipped tons of who knows what, and for me it's kind of intriguing that it gets to have a second life."
Turning the retired cargo vessel into a taqueria wasn't that hard, says Lance. Cutting out windows, spraying in the foam insulation, "anybody with a little construction background can probably figure those things out," he says.
But getting the permits, the blueprints, the structural engineering reports through the state of Oregon took four years, and added "a ton" to the cost, Lance says. "What kept me going was if I could build one of these things and it works well, I could just copy the blueprints and build 100 of them," or pick up and move.
The Shipping Container House, Nederland, Colo.: Still 'Cargotecture'
Image Credit: Braden GunemTrue, the Shipping Container House is not all shipping containers, but by definition it's still cargotecture. The two containers that sandwich the main living area house an office and a bedroom in this 1,500-square-foot mountain home. Designed by Studio H:T in Boulder, Colo., for "a conscientious client who believes in living small and recycling," the solar-powered house can operate entirely off-grid.
Also Read
Click green for further info
This article is for your private use, only
__________________________________________________________
At the end of the article
How to apply disaster assistance
November 16, 2012 November 2012
The New York Times Important weather disaster related info
A Reprieve for Storm Victims
Sandy Hurricane
Click green for further info
At the end of the article
How to apply disaster assistance
November 2012
Homeowners may find out that your mortgage servicer is willing to ease some of the immediate financial burden.
November 2012
Both Fannie Mae and Freddie Mac — the mortgage finance giants that guarantee or own most residential mortgages — have authorized their servicers to grant a 90-day forbearance period to borrowers in federally declared disaster areas.
“The expectation is that your life has been disrupted and the house may have been damaged,” said Brad German, a spokesman for Freddie Mac, “or your place of employment may have been damaged and your job may be unavailable.”
Under forbearance, a lender agrees not to take action against a delinquent borrower. In turn, a borrower agrees to a payment plan that would bring the mortgage current within a set period of time.
Borrowers in disaster areas who expect they will have difficulty making their regular mortgage payments on time should contact their loanservicer to explain their circumstances. (Designated disaster areas can be found at fema.gov/disasters.)
Servicers have been authorized to grant the 90-day respite right over the phone.
“No documentation is needed in this moment of emergency,” Mr. German said. “The key point is to streamline the process from the servicers’ point of view so they can help more people.”
Borrowers who have had their mortgages modified under the Home Affordable Modification Program are also eligible for forbearance.
A mortgage reprieve will ease the financial burden on those who have had storm-related expenses like hotel and restaurant bills. It will also give borrowers who have suffered extensive property damage the time they need to “focus and think,” said Peter Elkowitz Jr., the chief executive of the Long Island Housing Partnership, a nonprofit affordable housing developer and provider of foreclosure counseling services.
“They have to decide, if they have the money to rebuild,” he said, “are they going to build in the same location, or are they going to move?”
After 90 days, the forbearance period may be extended up to a year, on a case-by-case basis. Servicers are to waive any late payment charges, and suspend the reporting of missed payments to national credit bureaus.
Even borrowers who were in foreclosure before the storm will get a breather. The agencies say they are suspending foreclosure sales and evictions for 90 days. The foreclosure suspension also applies to mortgages insured by the Federal Housing Administration.
Before borrowers contact their servicer for help, they should first try to determine who owns their loan. To find out if Fannie Mae owns your loan, go to knowyouroptions.com/loanlookup. The link for Freddie Mac is freddiemac.com/corporate/.
If homeowners lost their financial documents in the storm, or if they are still without power, they may not know where to start, Mr. Elkowitz noted. He advises people in this category to contact a counseling agency certified by the Department of Housing and Urban Development, which can then reach out on their behalf.
At the Long Island Housing Partnership, Mr. Elkowitz is expecting “a whole new group of people coming in, people who wouldn’t normally have been in a default situation.
“Now their house is destroyed,” he added. “They are trying to keep their job, and they have to look for a new place to live.”
His agency is helping borrowers whose homes were damaged, but not ruined, by flooding. Using emergency funds donated by Citibank, it will help homeowners in low- to moderate-income areas repair or replace water-damaged electrical systems, furnaces and water heaters.
Click green for further info
This article is for your private use, only
How to apply disaster assistance
November 2012
If you sustained losses or damage from Hurricane Sandy,
you may be eligible for disaster aid
For more information or to apply: www.DisasterAssistance.gov
You can call to apply: 1-800-621-FEMA (3362)
(FEMA = Federal Emergency Management Agency)
The TTY number is: 1-800-426-7585
For 711 or Video Relay Service call 1-800-621-FEMA (3362) Or apply on your smartphone at: m.fema
When you apply for disaster assistance, have all documents, all details, all facts available.
A TTY number is a phone number, people with impaired hearing or speech can dial to make calls using a TDD/TTY device, which consists of a keyboard and printer or video display, that connects by modem to a regular telephone. The TTY operator at the TTY number receives the caller's typed messages, phones the other party and relays the messages orally, then types the other party's responses to the caller to be read on the TDD/TTY. TTY may stand for Teleprinter, teletypewriter or Teletype, a typewriter paired with an electronic communication channel tty (Unix),
a Unix computer terminal Telecommunications device for the deaf or TDD, a teleprinter specifically designed for text communication over the public switched telephone network.
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Weather & Other Natural Disasters Claims Covered by Renters Insurance - Sandy and other disasters
If you live in an apartment or building affected by Sandy, you have likely heard by now that your personal renter's, co-op or condo insurance policy doesn't cover damage from storm-related flooding or (with very few exceptions*) your temporary housing expenses.
There are, however, several types of Sandy-related claims that insurers are paying, says NYC apartment insurance broker Jeff Schneider of Gotham Brokerage, which has assisted several hundred customers filing Sandy claims and fielded hundreds more phone calls from out-of-luck apartment dwellers, the majority inquiring about alternative housing coverage.
"They're coming in from everywhere--Brooklyn, Queens and Manhattan," says Schneider, whose Lower Manhattan office building, which sustained moderate flood damage, is located just across the street from a huge swathe of residential buildings affected by the storm, many still uninhabitable.
Schneider says these are the 4 Sandy-related claims NYC apartment dwellers are filing--and that insurers are paying--from most frequently filed to least:
1. Spoiled food: It seems that New Yorkers may cook more often than they are rumored to. Claims for referigerated or frozen food spoiled by power outtages top the list of recoverable Sandy-related claims filed so far by Gotham's apartment-dwelling customers.
And insurers are paying readily.
"We see a lot of people getting paid the $500 maximum," says Schneider, explaining that "most insurance companies have a $500 limit for that and a lower deductible, like $100."
Some insurers whose policies are a bit pricier will pay more.
"Chubb will cover $5,000 subject to a $250 decuctible," he says.
2. Water damage from shutoff-related flooding: After water shutoffs in hundreds of apartment buildings across the city, many residents apparently either forgot to turn off their faucets or turned the knobs the wrong way.
The result: Overflowing sinks and bathtubs causing water damage that extends 5, 10 or more floors below.
"Insurers are covering damage whether you are the one who left the water on, or you're a neighbor who was affected," says Schneider.
3. Burned-out computers & appliances "When power was restored in many buildings, there was a power surge. We are seeing many burned out computers as well as appliances ranging from refrigerators to and flat-screen tv's," says Schneider.
4. Wind-related damage "There have been very few wind-related claims in NYC to apartments," says Schneider.
Among them, he says, is a claim for a large pane of glass that fell from a West Village terrace to the street below. (Somewhat ironically, the pane of glass was meant to keep people from falling off the terrace.)
If your Sandy-related damage doesn't fit handily into one of the four categories above, you might be covered if you bought flood insurance at least 30 days before the storm hit; some flood-related damage would be covered, but not all--including, for instance, anything stored inside your basement.See this New York Times article for more info.
Another avenue to pursue is FEMA, which is making grants and loans available. For more information, go to http://www.disasterassistance.gov/.
--
*Your temporary housing claim may be covered if you purchased a more expensive policy which insures against loss of use on an "all-risk" basis, says Schneider, meaning that the burden is on the insurer to show why a claim is not covered.
"Since it is not clear in some buildings why an evacuation was ordered--water, wind, or public safety--or how water came in, we believe there are situations where some payments are being made for loss of use," says Schneider.
Related posts:
What now? A post-Sandy guide to your rights as a refugee renter or owner
Here's why you should file your Sandy insurance claims ASAP--and how to do it
About that flood insurance; city preps for second wave of temp housing crisis, and more
Rent Coach: Does my landlord have to rebuild my roofdeck?
Our experts give their best afterstorm advice, from why your trash chute smells that way, to property values, to that bathtub thing
Mortgage lenders demand last-minute post-Sandy inspections. Could buyers lose their deposits?
A displaced downtowner offers his two cents, to management and residents alike
If you live in an apartment or building affected by Sandy, you have likely heard by now that your personal renter's, co-op or condo insurance policy doesn't cover damage from storm-related flooding or (with very few exceptions*) your temporary housing expenses.
There are, however, several types of Sandy-related claims that insurers are paying, says NYC apartment insurance broker Jeff Schneider of Gotham Brokerage, which has assisted several hundred customers filing Sandy claims and fielded hundreds more phone calls from out-of-luck apartment dwellers, the majority inquiring about alternative housing coverage.
"They're coming in from everywhere--Brooklyn, Queens and Manhattan," says Schneider, whose Lower Manhattan office building, which sustained moderate flood damage, is located just across the street from a huge swathe of residential buildings affected by the storm, many still uninhabitable.
Schneider says these are the 4 Sandy-related claims NYC apartment dwellers are filing--and that insurers are paying--from most frequently filed to least:
1. Spoiled food: It seems that New Yorkers may cook more often than they are rumored to. Claims for referigerated or frozen food spoiled by power outtages top the list of recoverable Sandy-related claims filed so far by Gotham's apartment-dwelling customers.
And insurers are paying readily.
"We see a lot of people getting paid the $500 maximum," says Schneider, explaining that "most insurance companies have a $500 limit for that and a lower deductible, like $100."
Some insurers whose policies are a bit pricier will pay more.
"Chubb will cover $5,000 subject to a $250 decuctible," he says.
2. Water damage from shutoff-related flooding: After water shutoffs in hundreds of apartment buildings across the city, many residents apparently either forgot to turn off their faucets or turned the knobs the wrong way.
The result: Overflowing sinks and bathtubs causing water damage that extends 5, 10 or more floors below.
"Insurers are covering damage whether you are the one who left the water on, or you're a neighbor who was affected," says Schneider.
3. Burned-out computers & appliances "When power was restored in many buildings, there was a power surge. We are seeing many burned out computers as well as appliances ranging from refrigerators to and flat-screen tv's," says Schneider.
4. Wind-related damage "There have been very few wind-related claims in NYC to apartments," says Schneider.
Among them, he says, is a claim for a large pane of glass that fell from a West Village terrace to the street below. (Somewhat ironically, the pane of glass was meant to keep people from falling off the terrace.)
If your Sandy-related damage doesn't fit handily into one of the four categories above, you might be covered if you bought flood insurance at least 30 days before the storm hit; some flood-related damage would be covered, but not all--including, for instance, anything stored inside your basement.See this New York Times article for more info.
Another avenue to pursue is FEMA, which is making grants and loans available. For more information, go to http://www.disasterassistance.gov/.
--
*Your temporary housing claim may be covered if you purchased a more expensive policy which insures against loss of use on an "all-risk" basis, says Schneider, meaning that the burden is on the insurer to show why a claim is not covered.
"Since it is not clear in some buildings why an evacuation was ordered--water, wind, or public safety--or how water came in, we believe there are situations where some payments are being made for loss of use," says Schneider.
Related posts:
What now? A post-Sandy guide to your rights as a refugee renter or owner
Here's why you should file your Sandy insurance claims ASAP--and how to do it
About that flood insurance; city preps for second wave of temp housing crisis, and more
Rent Coach: Does my landlord have to rebuild my roofdeck?
Our experts give their best afterstorm advice, from why your trash chute smells that way, to property values, to that bathtub thing
Mortgage lenders demand last-minute post-Sandy inspections. Could buyers lose their deposits?
A displaced downtowner offers his two cents, to management and residents alike
Californians asked to end death penalty - to save money
Despite this topic being unrelated to mortgages & housing, this article is a good example to show
that in any financially or otherwise troubled housing matter there are legal options available.
Contact a competent lawyer for a consultation
The reason STAF, Inc.'s editors decided to place this article with legal information is to guide you
to realize that in any legal case the options to lengthen the process are real and may be helpful for
your and your family's future to get your life in good order to avoid unnecessary miseries.
This article has information of the trend in the U.S. relating to the death penalty and the legal processes the defense lawyers use. The more the public knows how our legal system works, the better for every individual. In any other legal matter, e.g. foreclosure process, and in every legal case, a competent lawyer can drag the case for years forward.
Those years may give you the time needed to organize your finances and other matters to avoid unnecessary losses and heavy suffering for you, your children, and for your whole family.
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- Death Penalty Information Center www.deathpenaltyinfo.org
A non-profit organization serving the media and the public with analysis and information on issues concerning capital punishment in the United States. Executions in the United States - State by State Execution - Innocence - Facts - Death row - Wikipedia, the free encyclopediaen.wikipedia.org/wiki/Death_row - Death row, in English speaking countries that have capital punishment, signifies the place, often a section of a prison, that houses individuals awaiting execution ... ____________________
Californians asked to end death penalty - to save money
Reuters
10/26/12
SAN QUENTIN STATE PRISON, California (Reuters) - Convicted murderer Douglas Stankewitz, who has spent more than three decades on death row, isn't pinning his hopes of survival on a referendum next month to abolish the death penalty in California - he knows that even if voters reject the measure, he may never be executed.
"They can't kill me because the system is messed up so bad,"Stankewitz, California's longest-serving death row inmate, told Reuters in an interview at San Quentin State Prison. "The death penalty is a joke."
Stankewitz, a 54-year-old who arrived on death row at age 20 for killing a woman during a drug- and alcohol-fueled carjacking, is one of 726 inmates on death row in California. The state hosts nearly a quarter of the nation's condemned prisoners but has executed none in the last six years.
A federal judge halted all California executions in 2006, saying a three-drug lethal injection protocol risked causing inmates too much pain and suffering before death. California revised its protocol, but executions have not resumed.
Public opinion in many states has been shifting away from the death penalty, with five states abolishing capital punishment over the past decade. Seventeen states and the District of Columbia do not allow the death penalty.
In California, proponents of repealing the death penalty are basing their campaign not so much on moral grounds, but rather on the question of cost. They say the system, with mandated appeals that can take decades, costs so much that the financially troubled state could save hundreds of millions of dollars by instead jailing the worst killers for life.
Polls show the referendum - one of 11 ballot measures facing Californians on the same day as the presidential election, November 6 - faces an uphill fight. A majority of Californians, 51 percent, oppose abolishing capital punishment, according to a September USC Dornsife/Los Angeles Times poll of 1,504 people. Just 38 percent backed repeal, while the rest were undecided.
State offices do not track specific costs associated with prosecuting and housing death row inmates, but a number of studies have shown the burden is high.
A 2011 study by Ninth Circuit Court of Appeals senior judge Arthur Alarcón and Paula Mitchell, an adjunct law professor at Loyola Law School, said the death penalty has cost the state roughly $4 billion since 1978, when California voted to reinstate it following a nationwide pause.
It called California's capital punishment system "the most expensive and least effective" in the nation.
An independent budget watchdog, the Legislative Analyst's Office, has said repealing the death penalty could initially save the state $100 million a year, later growing to $130 million a year.
"It is a failed public policy that wastes so much public money. And it is an illusion. We haven't had an execution in over six years," Jeanne Woodford, a former San Quentin warden and a leading advocate of death penalty repeal, told Reuters.
ENDLESS GAME
Death penalty costs are driven by mandated appeals and a shortage of public lawyers qualified to handle capital cases, which means inmates can wait decades to make their way through the system.
Condemned inmates wait an average of five years to be given lawyers for an automatic appeal to the California Supreme Court, which is mandated by state law, Woodford said, and then another 12 years for an attorney to handle an automatic federal habeas petition, which is a formal request for a federal court to examine the legality of the petitioner's imprisonment.
The California Supreme Court spends a third of its time on death penalty appeals alone, she said.
Stankewitz, who has been on death row for 34 years, is among 44 inmates who have spent three decades or longer waiting to die.
Convicted in 1978, Stankewitz had his conviction and sentence reversed by the state Supreme Court in 1982 because his mental competence to stand trial had not been evaluated. He was then re-tried and re-convicted by a Fresno County court in 1983.
That trial spurred another automatic appeal to California's top court, which in 1990 declined to alter his conviction or sentence, according to court records. His first federal habeas appeal was filed in 1994.
By his own count, Stankewitz has gone through roughly a dozen public defenders, whom he refers to disparagingly as "dump trucks," and court records show more than 600 motions, orders and rulings in his case since 1991.
His appeals have run the gamut from questions over his own mental competence to the competence of his previous legal counsel and procedural and evidentiary complaints.
"I'm caught up in this game. I don't like this game," Stankewitz said in an interview inside a cramped visiting cell that was locked from the outside, monitored by guards and separated from the main visiting area.
Of the state's hundreds of death row inmates, just 13 have exhausted their appeals and are awaiting execution.
By 2050, California is projected to have sent 740 more inmates to death row, and more than 500 death row inmates will have died of old age or other causes before they can be executed, Alarcón and Mitchell said in their study.
Twenty-one inmates have committed suicide on California's death row since 1978, and 57 have died of natural causes, prison officials said.
An independent commission said in 2008 that the state's death penalty system was dysfunctional and warned that, if nothing were done to reverse structural delays in the appointment of counsel and appeals, the application of capital punishment in California could be declared cruel and unusual punishment and, ultimately, struck down as unconstitutional.
It said that a system with life without parole as the top punishment would cost only $11.5 million a year, well under the $137 million it pegs as the annual cost of capital punishment. The Alarcón-Mitchell report puts the cost of having the death penalty at $144 million a year.
The California Department of Corrections and Rehabilitation said housing an inmate costs around $55,500 annually per prisoner. It does not break that down by sentence or crime.
HORRENDOUS CRIMES
Kent Scheidegger, legal director of the Criminal Justice Legal Foundation, said capital punishment costs could be alleviated if sentencing appeals were not mandated, reducing the time from sentencing to execution to five or six years.
"That would cost less than we are spending now, and less than to incarcerate them for life," said Scheidegger, a co-chair of the coalition to keep the death penalty.
Opponents of ending capital punishment, including San Bernardino District Attorney Michael Ramos, are concerned about the danger of mixing death row inmates with the general prison population, arguing that such serious offenders need the additional security measures that are standard on death row.
Family members of victims of death row inmates have spoken out on both sides of the issue.
Sandy Friend, for example, wrote a public petition arguing that execution was the only fitting punishment for the man who kidnapped, tortured, raped and killed her 8-year-old son, Michael Lyons, in 1996.
"I believe that the only justice for these horrendous crimes these individuals have committed is the death penalty," Friend said in a video produced by repeal opponents. Her son was abducted on his way home from school by a man with two prior sex offense convictions, Friend said, and was tortured for 10 hours.
The man convicted of Lyons' death, Robert Rhoades, was sent to death row in 1999. His appeals are ongoing.
SAME SCRIPT, DIFFERENT NAME
Stankewitz's defense attorneys have largely based their appeals on questions about his intellect and childhood abuse. He suffered alcohol exposure in the womb, was removed from his home at age 6 after his mother beat him and bounced between foster care facilities where he was severely troubled and abused, court documents show.
He was 19 when he and a group of friends carjacked Theresa Graybeal, 22, from a K-Mart parking lot in Modesto and drove across California's rural heartland to Fresno, roughly 100 miles away.
There, Graybeal was shot and killed. Her family members could not be reached for comment.
One of Stankewitz's companions, 14-year-old Billy Brown, implicated him as the shooter in exchange for immunity from prosecution, records show. Stankewitz says he was framed by Brown. A federal judge granted him a new penalty phase trial - one that considers punishment only, not guilt or innocence - in 2009, but that remains under appeal.
"We are a script. Every person on death row is the same script with a different name," Stankewitz said.
Source: Reuters
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Californians asked to end death penalty - to save money
This article is for your private use, only
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A must-to-study article
Dated: November 2012
California Horror Stories and the 3-Strikes Law
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Californians brought a close to a shameful period in the state’s history when they voted this month to soften the infamous “three strikes” sentencing law. The original law was approved by ballot initiative in 1994, not long after a parolee kidnapped and murdered a 12-year-old girl. It was sold to voters as a way of getting killers, rapists and child molesters off the streets for good.
As it turned out, three strikes created a cruel, Kafkaesque criminal justice system that lost all sense of proportion, doling out life sentences disproportionately to black defendants. Under the statute, the third offense that could result in a life sentence could be any number of low-level felony convictions, like stealing a jack from the back of a tow truck, shoplifting a pair of work gloves from a department store, pilfering small change from a parked car or passing a bad check. In addition to being unfairly punitive, the law drove up prison costs.
The revised law preserves the three-strikes concept, but it imposes a life sentence only when the third felony offense is serious or violent, as defined in state law. It also authorizes the courts to resentence thousands of people who were sent away for low-level third offenses and who present no danger to the public.
The resentencing process is shaping up as a kind of referendum on the state’s barbaric treatment of mentally ill defendants, who make up a substantial number of those with life sentences under the three-strikes rule. It is likely that many were too mentally impaired to assist their lawyers at the time of trial.
Mentally ill inmates are nearly always jailed for behaviors related to their illness. Nationally, they account for about one-sixth of the prison population. The ratio appears to be higher among three-strike lifers in California. According to a 2011 analysis of state data by Stanford Law School’s Three Strikes Project, nearly 40 percent of these inmates qualify as mentally ill and are receiving psychiatric services behind bars.
Even before the recent ballot initiative, the clinic’s law students had overturned the life sentences of 26 people, based on newly discovered evidence or inadequate assistance of counsel, as when defense lawyers failed to present evidence of a client’s mental illness.
Asked about the relationship of mental illness and three-strikes prosecutions, Michael Romano, director of the Stanford project, responded, “In my experience, every person who has been sentenced to life in prison for a nonserious, nonviolent crime like petty theft suffers from some kind of mental illness or impairment — from organic brain disorders, to schizophrenia, to mental retardation, to severe P.T.S.D.,” or post-traumatic stress disorder.
Nearly all had been abused as children, he pointed out. All had been homeless for extended periods, and many were illiterate. None had graduated from high school.
In other words, these were discarded people who could be made to bear the brunt of this brutal law without risk of public backlash. Among the more horrifying cases investigated by the Three Strikes Project is that of 55-year-old Dale Curtis Gaines, who suffers from both mental retardation and mental illness. He has never committed a violent crime, but is serving a life sentence for receiving stolen property. His first two strikes, daytime burglaries of empty homes during which he was unarmed, appear to have involved thefts valued at little more than pocket change.
According to court documents, Mr. Gaines’s early childhood was a nightmare, filled with the most savage forms of abuse. His grandmother, a primary care giver, is said to have beaten him when he urinated or defecated in bed — and forced him to eat his feces as punishment. Later, as often happens with mentally impaired adolescents, he began to skip school because he was ashamed that he could not keep up with his classmates. He was often homeless. While serving time for his second crime, he was diagnosed by the prison system itself as both mentally disabled and schizophrenic.
He was clearly too impaired to help with his defense, and at one point simply put a blanket over his head and declined to speak to a doctor who was questioning him. His ability to read is comparable to that of a kindergartner.
At the time of his third strike, for receiving stolen computer equipment, Mr. Gaines was getting Social Security and disability benefits because of mental illness and retardation. His mental health history, readily available in the prison record, would probably have been recognized as a mitigating factor and prevented him from being so harshly sentenced. But, according to court documents, his public defender presented no evidence about his disability.
In 2010, 12 years after Mr. Gaines was convicted, the prosecutor who handled the case but by then had left the district attorney’s office wrote to him in prison, expressing regret and offering help if he wished to appeal. The Stanford students also noticed his case and are now trying to free him.
Mr. Gaines’s story is not unique. And as more cases unfold in court, judges, lawyers and Californians should look back with shame at the injustice the state inflicted on a vulnerable population that often presented little or no danger to the public.
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Can be used for promoting health, safety & education
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The story behind, and within, the world’s thinnest house
Oct 19, 2012
Click green for pictures (the picture links may expires within certain time depending on the source)
Tiny house fits inside 5-foot alleyT
The newly completed Keret House narrows down to just two feet at its thinnest.See the slideshow
Related linksTiny house fits inside 5-foot alley
The newly completed Keret House narrows down to just two feet at its thinnest.See the slideshow
Related links
Tiny house fits inside 5-foot alley
The newly completed Keret House narrows down to just two feet at its thinnest.See the slideshow
Related linksSqueezed into a 5-foot Warsaw alley that actually narrows further to 3 feet, the home itself is just about 50 inches wide in front and scarcely more than 2 feet wide toward the back.
The home contains a "nearly double-size" bed, a kitchen, a toilet and shower, a "bean bag sofa" and a couple of tables, according to the Associated Press. As you can see from the rendering above, some of those descriptions seem a little generous. "Nearly double-size" sounds like code for a twin bed to us, and that "sofa" appears to stretch the definition, too. (Sorry, I haven't been able to obtain interior photographs, but click on either of the photos here to go to "The world's thinnest building in pictures," a slideshow with more exterior photos, construction photos, and renderings.)
The floor space adds up to just 46 square feet, theU.K. Daily Mail says, and presumably that's withthe remote-controlled entrance stairs drawn up into their flattened position. The sleeping area, which does double-duty as an office, must be accessed by wall-mounted ladder. The plumbing is apparently "boat-inspired," Arch Daily has reported, and electricity is from a neighboring building.
So is this "home" truly considered livable?
Well, yes and no.
Architect Jakub Szczesny of the Polish firm Centrala built this as a working studio for Israeli writer Etgar Keret, and other artists are expected to stay here as well. The Keret Home, as a sign on the front door declares it, is technically considered an art installation.
The PR agency representing the project told me that Keret will be "host" of the home for three years but "won't live there permanently. He will drop in from time to time, invite guests, create, etc."
Keret considers the home "kind of a memorial to my family," the AP reported. His parents survived the Holocaust in Nazi-occupied Poland, but their families were wiped out. In Tablet, a Jewish online magazine, Keret wrote about how his father managed: "During World War II, my dad, his parents, and some other people hid in a hole in the ground in a Polish town for almost 600 days. The hole was so small that they couldn't stand or lie down in it, only sit. When the Russians liberated the area, they had to carry my father and my grandparents out, because they couldn't move on their own."
Keret has just published a Tablet piece about the home, writing that "totally by accident," the home also happens to be "on the spot where a bridge had linked the small ghetto to the larger one":
"When my mother smuggled in food for her parents, she had to get past a barricade there, manned by Nazi soldiers. She knew that if she were caught carrying a loaf of bread, they'd kill her right there. And now, 72 years later, we'll have a home on that spot. A pushy little home: In the picture it looks almost as if history hadn't left room for it, but it still squeezed itself in, as if to say: A family once lived in this city. They're not here anymore, but everyone who walks past me will have to stop for a minute and look at my narrow, defiant body, look at the sign and remember that family's name."
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In STAF, Inc.'s scale 1-10 this "Raise the roof..." article next below is 9
- good, practical, winning, value-raising info
_________
The article next below "Raise the roof to add living space and home value"
has practical, valuable information - study it, plan, do it - what a difference
it will make in your living quality and in your house value
Advice given by an experienced residential architect. Use his services.
_________
- good, practical, winning, value-raising info
_________
The article next below "Raise the roof to add living space and home value"
has practical, valuable information - study it, plan, do it - what a difference
it will make in your living quality and in your house value
Advice given by an experienced residential architect. Use his services.
_________
Raise the roof to add living space -- and home value
By Richard Taylor – Oct 22, 2012 - Richard Taylor is a residential architect based in Dublin, Ohio.
Connect with him at http://www.rtastudio.com/index.htm. Click green for further info
At the end of this article,
the WIKIPEDIA LINK BELOW is important for you to study to know the building terminology
Click green for further info
If you think you need more space in your home, you might be thinking about adding to the back, to the side, or maybe even the front, if you have room.
How about raising the roof and adding a second floor?
Or maybe you have an older house with an uncomfortably low ceiling you’d like to make higher.
What about lifting up the roof and making the walls a little taller, or creating a “vaulted” ceiling?
Really? Can I do that? MORE:
Yep -- you can, but you’ve got to get everything just right. Here are some of the considerations if you want to go “up” instead of “out.”
Some homes are better suited than others
First find out what kind of roof structure you have, “stick” or “truss”. Generally, if you have space in your attic, you probably have stick framing. If not, you likely have truss framing.
A stick-framed roof with an attic has room to expand -- a dormer for example, might create the additional space you need. A truss-framed roof, on the other hand, doesn’t have any attic space to expand -- you’re probably going to have to raise a truss-framed roof to get more space.
And although almost any roof can be raised, the cost of raising a very large or complex roof may outweigh the benefits. From a feasibility standpoint, the best candidates for raising are gable roofs on smaller, simpler homes.
If that sounds like your house, read on.
Raising the ceiling height
Let’s say you want a taller ceiling -- could you simply hook up a crane, lift the existing roof structure, then make the walls a little taller and lower the roof back down?
You can, and you’ll be the sensation of the neighborhood when you do!
But there’s an important structural issue you need to address first: you can’t simply add a new wall (a knee wall) on top of the existing walls. Doing that creates a “hinge” between the new and existing walls -- and that’s a very unstable structure.
Instead, the walls have to be made taller from the bottom up. One way to do that is by installing new, taller wall studs alongside the existing studs. Another method is covering the existing wall and new knee wall with full-height plywood sheathing to eliminate the hinge.
Either way, you’ll need the help of a structural engineer to make it safe.
Adding a second floor
As long as we’ve got that crane on site, let’s take the roof up a little more -- enough to add an entire second floor.
Now we’re less concerned about the “hinge,” because we’re keeping the first floor walls the same height. We’re going to add a new floor structure on top of the walls, then add new second floor walls on that.
[Think you’re ready to find a home contractor? Click to compare rates now.]
Finally, we’ll build new second floor walls and lower that roof back down.
That’s not too complicated but we’ve created additional structural issues to resolve -- first is the additional load of the new second floor on the existing first-floor walls; can they handle it?
Second is the additional load on the foundation. Chances are it can easily take the extra weight, but you’ve got to have this professionally evaluated, too.
Making a vaulted ceiling
In situations like the ones above, it can make sense to lift a roof in one piece and replace it without much structural modification -- especially with a trussed roof.
But while a trussed roof can be raised, it can’t be modified to make a vaulted ceiling. You need to start with a stick roof to do that.
Exposing the underside of the sloped rafters is what creates the “vaulted” shape inside that you’re looking for, and that means removing the ceiling joists first.
That breaks the structural “triangle” that holds the roof together, and requires additional framing work to restore structural integrity.
A common solution is adding “collar ties,” which are similar to ceiling joists but a little higher up. A vaulted ceiling with collar ties usually has a large flat area above the sloped sides.
If you want the ceiling vaulted all the way to the top it gets a little more complex, and you’ll need a structural ridge beam.
The ridge beam is at the very top pointy part of the roof.
(Stop me if I’m getting too technical, OK?)
Other aspects you need to know
Raising a roof, adding a second floor, and creating a vaulted ceiling are all big projects. Big enough that your local building officials are probably going to ask you to bring the rest of the house “up to code”. That can add a lot of cost.
The additional space will also need to be heated and cooled -- which may require a larger HVAC system, or even an additional system.
Taller exterior walls almost need more insulation, drywall, and interior and exterior trim and finishes, which reminds me, don’t forget to raise your existing interior walls, too!
Do the right thing
Not every home is a good candidate for a roof-raising, but for the ones that are, it’s often a very cost-effective way to expand living space.
It’s also a sustainable move, since it reuses most of the existing walls and roof and keeps material out of the landfill.
Going “up” doesn’t increase the footprint of your house on the land, and usually makes a more compact, energy-efficient structure.
Save money, landfill space, and energy -- all under one roof.
MORE HOMES 1 - 3 of 3
The WIKIPEDIA LINK BELOW is important for you to study to know the building terminology
By Richard Taylor – Oct 22, 2012 - Richard Taylor is a residential architect based in Dublin, Ohio.
Connect with him at http://www.rtastudio.com/index.htm. Click green for further info
At the end of this article,
the WIKIPEDIA LINK BELOW is important for you to study to know the building terminology
Click green for further info
If you think you need more space in your home, you might be thinking about adding to the back, to the side, or maybe even the front, if you have room.
How about raising the roof and adding a second floor?
Or maybe you have an older house with an uncomfortably low ceiling you’d like to make higher.
What about lifting up the roof and making the walls a little taller, or creating a “vaulted” ceiling?
Really? Can I do that? MORE:
- » Save space by ditching the dining room
- » How to pick the right window style
- » Want an energy efficient home? Start with good design
Yep -- you can, but you’ve got to get everything just right. Here are some of the considerations if you want to go “up” instead of “out.”
Some homes are better suited than others
First find out what kind of roof structure you have, “stick” or “truss”. Generally, if you have space in your attic, you probably have stick framing. If not, you likely have truss framing.
A stick-framed roof with an attic has room to expand -- a dormer for example, might create the additional space you need. A truss-framed roof, on the other hand, doesn’t have any attic space to expand -- you’re probably going to have to raise a truss-framed roof to get more space.
And although almost any roof can be raised, the cost of raising a very large or complex roof may outweigh the benefits. From a feasibility standpoint, the best candidates for raising are gable roofs on smaller, simpler homes.
If that sounds like your house, read on.
Raising the ceiling height
Let’s say you want a taller ceiling -- could you simply hook up a crane, lift the existing roof structure, then make the walls a little taller and lower the roof back down?
You can, and you’ll be the sensation of the neighborhood when you do!
But there’s an important structural issue you need to address first: you can’t simply add a new wall (a knee wall) on top of the existing walls. Doing that creates a “hinge” between the new and existing walls -- and that’s a very unstable structure.
Instead, the walls have to be made taller from the bottom up. One way to do that is by installing new, taller wall studs alongside the existing studs. Another method is covering the existing wall and new knee wall with full-height plywood sheathing to eliminate the hinge.
Either way, you’ll need the help of a structural engineer to make it safe.
Adding a second floor
As long as we’ve got that crane on site, let’s take the roof up a little more -- enough to add an entire second floor.
Now we’re less concerned about the “hinge,” because we’re keeping the first floor walls the same height. We’re going to add a new floor structure on top of the walls, then add new second floor walls on that.
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Finally, we’ll build new second floor walls and lower that roof back down.
That’s not too complicated but we’ve created additional structural issues to resolve -- first is the additional load of the new second floor on the existing first-floor walls; can they handle it?
Second is the additional load on the foundation. Chances are it can easily take the extra weight, but you’ve got to have this professionally evaluated, too.
Making a vaulted ceiling
In situations like the ones above, it can make sense to lift a roof in one piece and replace it without much structural modification -- especially with a trussed roof.
But while a trussed roof can be raised, it can’t be modified to make a vaulted ceiling. You need to start with a stick roof to do that.
Exposing the underside of the sloped rafters is what creates the “vaulted” shape inside that you’re looking for, and that means removing the ceiling joists first.
That breaks the structural “triangle” that holds the roof together, and requires additional framing work to restore structural integrity.
A common solution is adding “collar ties,” which are similar to ceiling joists but a little higher up. A vaulted ceiling with collar ties usually has a large flat area above the sloped sides.
If you want the ceiling vaulted all the way to the top it gets a little more complex, and you’ll need a structural ridge beam.
The ridge beam is at the very top pointy part of the roof.
(Stop me if I’m getting too technical, OK?)
Other aspects you need to know
Raising a roof, adding a second floor, and creating a vaulted ceiling are all big projects. Big enough that your local building officials are probably going to ask you to bring the rest of the house “up to code”. That can add a lot of cost.
The additional space will also need to be heated and cooled -- which may require a larger HVAC system, or even an additional system.
Taller exterior walls almost need more insulation, drywall, and interior and exterior trim and finishes, which reminds me, don’t forget to raise your existing interior walls, too!
Do the right thing
Not every home is a good candidate for a roof-raising, but for the ones that are, it’s often a very cost-effective way to expand living space.
It’s also a sustainable move, since it reuses most of the existing walls and roof and keeps material out of the landfill.
Going “up” doesn’t increase the footprint of your house on the land, and usually makes a more compact, energy-efficient structure.
Save money, landfill space, and energy -- all under one roof.
MORE HOMES 1 - 3 of 3
- Mapping 12 of the Country's Endangered Historic …
With new waves of development, other buildings must fall, or so say developers. Preservationists, … Full Story . - 7 Great Places to Bunk at America's National …
- Design tips from a tiny Swedish apartment This article is for your private use, only Source: Richard Taylor is a residential architect based in Dublin, Ohio and is a contributor to Zillow Blog. Connect with him at http://www.rtastudio.com/index.htm.
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The WIKIPEDIA LINK BELOW is important for you to study to know the building terminology
This Wikipedia link below gives you technical information to fully know
the terminology used in the building process.
Click the link - study this Wikipedia info - a must to do
Framing (construction) - Wikipedia, the free encyclopediaen.wikipedia.org/wiki/Framing_(construction)
The technique is variously referred to colloquially in the building trades as stick andframe, stick and platform, or stick and box as the sticks (studs) give the ...
Walls - Balloon framing - Platform framing - Materials
____________________________________________________________________________
the terminology used in the building process.
Click the link - study this Wikipedia info - a must to do
Framing (construction) - Wikipedia, the free encyclopediaen.wikipedia.org/wiki/Framing_(construction)
The technique is variously referred to colloquially in the building trades as stick andframe, stick and platform, or stick and box as the sticks (studs) give the ...
Walls - Balloon framing - Platform framing - Materials
____________________________________________________________________________
How to spot hidden problems in older homes
Study also the next article below - important, related information
By Richard Taylor - Sep 26, 2012
Richard Taylor is a residential architect based in Dublin, Ohio and is a contributor to Zillow Blog. Connect with him at http://www.rtastudio.com/index.htm.
Click the green for further info
"Yikes!” “Uh-oh …”
The homeowner and I were watching our contractor remove deck boards that concealed an area of a foundation wall that we thought might have settled.
The homeowner had noticed a problem when the front door began to stick, and an unmistakable settling of the floor under the door had soon followed.
The contractor and I assumed that water had caused the foundation to settle, leading to a drop of the floor system – a relatively common problem in older homes that is sometimes easily stabilized and repaired.
Photo: ZillowAt this house, however, the problem looked much worse. A large section of the band board – a strip of lumber that surrounds the floor system – was completely rotted.
We’d expected some damage to the band since we were sure that water (the cause of the rotting) was the culprit in the foundation settling.
But here the foundation looked intact. It was the band itself that had collapsed, causing the floor system to drop several inches. Worse yet, the damage extended well into the floor joists.
Ugh. Which one of us was going to give the homeowner the bad news – her minor settling problem in the house she’d recently purchased was rapidly becoming a very expensive major repair?
Not aging gracefully
Problems in older homes are often well hidden. More often than not, serious damage doesn’t show any symptoms until the damage is significant and expensive.
There are clues, but even trained eyes sometimes have difficulty telling normal wear and tear from the signs of serious underlying problems.
Most old-home problems, however, have predictable causes and if you know where to look you can find hints that might lead you to discover concealed damage.
Find the problems early enough and you might be able to fix them relatively easily, or keep yourself from buying into unexpected expensive repairs.
H-2-Oh no!
Photo: ZillowWater is the number one cause of damage in all homes, especially older ones. Look for missing or damaged roof shingles, rotted or loose trim boards, and disconnected or plugged-up gutters and downspouts.
Problems with gutters and downspouts are the biggest cause of water damage – they must be cleaned and checked regularly.
If you’re looking to buy an older home, check the condition of the gutters and downspouts – they’re big clue to finding hidden water problems elsewhere in the house.
As the ground around a home settles naturally, it can slope in toward the house and begin directing water at the foundation wall. Modern waterproofing systems can delay the subsequent damage for a while, but older homes don’t have sophisticated waterproofing systems – if they have any at all. Many very old homes have porous stone foundations that have no ability to repel ground water.
Check the grade at the perimeter of the house – settling near the foundation may indicate water in the basement.
Plug it in
Photo: ZillowWhen your grandparents’ family gathered around the Philco radio in the 1930’s listening to the Jack Benny Show they weren’t putting much of a load on the house’s electrical system – the radio and a lamp or two may have been the only electrical appliances in the house.
But now there’s a TV in every bedroom; two or three computers; dozens of light fixtures; and a whole kitchen full of modern electrical conveniences.
The appliances have grown – has the electrical system kept pace?
Each fixture or appliance “draws” power from outside in the form of amps; the more fixtures, the more amperage required. If the fixtures need more amps than the electrical system is rated for, the system can overheat, spark, or fail entirely – all potential fire hazards.
Any home over 40 years old is a likely candidate for having an outdated electrical system. Check the electrical panel for the amperage rating – modern homes require at least 100 amps and many require much more. Older homes may have “fuse boxes” rated for 60 amps or less.
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Check any visible wiring to see if it’s made of aluminum, which is also considered a fire hazard and was discontinued decades ago.
Look around the house – are there lots of extension cords and plug adapters? Are there “burn marks” around some switches and outlets? Are there rooms without any outlets at all? Replacing an electrical system to remove safety risks or to bring the system up to current codes can be a very expensive project.
Home sweet (old) home
If you own an old house, keep up with the maintenance to prevent costly repairs. If you’re thinking about buying one, check carefully for the signs of hidden damage and unsafe conditions first – a little detective work might keep you from saying “Yikes!” one day.
___________________________________________
Study also the next article below - important information
______________________________________
_______________________________________________________________________
Important information when you buy an old, foreclosed,
or any house if someone lived/used it before
Mystery illness solved when family
discovers new home was a meth lab
Click green for further info
The foreclosed house for sale on the up-and-coming street pined for fresh paint and other fixes, but the Hankins family saw its potential.
Plus, at $36,000, the price was perfect for a young family trying to make ends meet in small-town Klamath Falls, Ore.
"We said, 'It needs a little bit of love, but it's got good bones,'" Jonathan Hankins recalled. "We just had no idea that those bones were poisonous."
Within days of moving in this past summer, Beth Hankins, an ER nurse, started experiencing breathing problems. Then Jonathan got migraine-like headaches and nosebleeds. By the third week, their 2-year-old son, Ezra, developed mouth sores.
"He couldn't even drink water without being in pain," said Jonathan, 32.
They were about to schedule doctor visits when a neighbor shared the bad news: 2427 Radcliffe was a former meth house.
The family ordered a $50 testing kit and had the lab expedite the results, which revealed a contamination level nearly 80 times above Oregon Heath Authority limits.
"Our walls were poisoning us," said Jonathan, who quickly moved his family to a rental home.
Buying a foreclosed house from government-sponsored Freddie Mac meant the family was informed about being responsible for detecting hazards like lead paint and asbestos, but there was no warning from real estate agents or Freddie Mac about drug activity.
Because it was being sold "as is," the couple decided to save their money and skip a traditional inspection, which would have noted superficial repairs but not the chemicals used to cook the highly addictive drug. "In the case of methamphetamine, it's an invisible toxin," Jonathan said.
Twenty-three states, including Oregon, have laws requiring sellers to disclose if a property was ever used as a clandestine drug lab. In the Hankins' case, Freddie Mac says it never knew the two-bedroom, one-bath home had a checkered past.
"We certainly empathize with the situation, but we had no prior information about the way the home had been used," Freddie Mac spokesman Brad German told Yahoo News. "If we had, of course, we would have disclosed it."
It's a Catch-22 that Joe Mazzuca of Meth Lab Cleanup, a national remediation and training company, predicts others could find themselves in. Based on national and state data, Mazzuca conservatively estimates there are 2.5 million meth-contaminated homes in the U.S. "The signs and indicators aren't always there," he said. "You don't always see the meth residue. It's extremely dangerous stuff."
His concern was echoed at a congressional hearing in August on the efforts to curb domestic methamphetamine production.
Drug czar Gil Kerlikowske, head of the president's Office of National Drug Control Policy, testified that "U.S. meth lab seizure has more than doubled between 2007 and 2010, and these labs pose a major threat to public safety and the environment."
Mazzuca said the problem "is off the charts. We average a call every three to five minutes." One of those recent calls came from Michigan, a state with no disclosure law, where a father unknowingly purchased a meth-contaminated home. "He just buried his 14-year-old daughter after living in it for two years," Mazzuca said. "I could tell you stories like that for days."
With or without disclosure laws, Mazzuca believes scores of home buyers are at risk because only one in 10 meth labs are busted. Other times, he said, information can fall through the cracks by the time a big bank or government agency gets past the red tape of selling a foreclosed home.
He advised anyone considering buying a foreclosure to do their due diligence. He suggested the following actions:
- Check the DEA's National Clandestine Laboratory Register.
- Talk to the property's neighbors.
- Contact the local health department and police for past issues.
- Buy a kit to test for chemicals.
"Consumers don't know about this problem, and a simple $50 test by them could have prevented all this," said Jonathan, who's now left to pay rent and a mortgage. "Thirty-six thousand may be a drop in the bucket to them, but it could ruin us financially."
He says his calls and emails to Freddie Mac have gone unanswered, so he turned to Change.org, a website that aims to promote social change by the use of online petitions.
There he posted his frustration with what he calls the agency's false promise.
"Freddie Mac advertises, 'Our qualifying homes come with a reviewed title, and a repaired living space making them easier to sell and improving home values in your territory. We sell our homes responsibly. Freddie Mac is committed to having the best property maintenance and sales standards in the country.' We had no reason to expect otherwise. Instead, they irresponsibly sold us a ticking time bomb of dangerous chemicals without even telling us."
Attorneys have told the Hankins that the "as-is" fine print leaves them few options.
Decontaminating a former meth lab can run anywhere from $5,000 to $150,000, according to experts. Jonathan says he's been quoted a clean up cost more than his house is worth.
"We're not really angry at [Freddie Mac], but we're shocked that this could happen to anyone in America," he said. "It's an opportunity for them to set a precedent for others in the mortgage industry."
Source: Yahoo News, 10/2/12Click green for further info
EXPLORE RELATED CONTENT 1 - 4 of 20
______________________________________________
Avoiding Student Loan Default
The federal student loan program
offers flexible payment plans
that are supposed to keep borrowers out of default
even when they have lost their jobs and can afford almost nothing in monthly payments.
But these programs will never serve their intended purpose until
the government does a better job
of getting out the word about them and makes them easier to use.
Use the programs - you can avoid negative information in your credit reports
and keep your good credit score.
Contact your College/University Financial Topics Counselor
or
Contact the U.S. Government's Student Loan Administrative office
Find the links on the internet or call your bank for contact info
________________
Avoiding Student Loan Default
Date: September 22, 2012
Source: NYT - Editorials
Click the green for further info
The federal student loan program offers flexible payment plans that are supposed to keep borrowers out of default even when they have lost their jobs and can afford almost nothing in monthly payments. But these programs will never serve their intended purpose until the government does a better job of getting out the word about them and makes them easier to use.
As The Times’s Andrew Martin reported this month, defaults on government-backed loans have exploded since the start of the recession. The number of people who have fallen at least 12 months behind in payments has risen by about a third over the last five years, which means that nearly one in every six borrowers with a loan balance is in default.
The amount of defaulted loans — about $76 billion — is said to be greater than the yearly tuition bill for all students at public two- and four-year colleges.
Many of those in default could benefit from a flexible payment plan or loan forgiveness. Instead, they end up with ruined credit histories and even higher loan balances through penalties, and become prey to debt collectors who can garnish their wages for the overdue amounts.
The dunning letters that borrowers receive are mostly intended to terrify them into paying as much as they can as quickly as possible; they often fail to explain that the borrowers can avoid default by signing up for more affordable payment plans. A recent report by the National Consumer Law Center included a survey of 40 people in default and found that nearly two-thirds of them did not recall being contacted before being declared in default. This means they never had a chance to avoid it by signing up for alternative plans.
One of these plans, called Income-Based Repayment, caps the required monthly payment at an affordable amount based on the borrower’s earnings and family size. Under this program, people who pay 15 percent of their discretionary incomes for up to 25 years have the rest of the loan forgiven. There is a similar kind of loan forgiveness program for borrowers who work full time in public service jobs for 10 years.
Critics have complained that the application for the Income-Based Repayment program is too complicated. Fortunately, the Department of Education plans to introduce a streamlined online application for the program this month. But the government should go a step further, automatically enrolling qualified borrowers — including people on public assistance or Social Security — while they are behind on payments, before they officially default.
The department is also completing regulations that will protect delinquents from being moved into payment plans that they cannot afford. But it will be difficult for collectors to administer the complex provisions laid out in federal law. The better option would be for the department to take the $1.4 billion it paid collection agencies and other groups last year and use it to establish a division that deals with delinquent debts and loan disputes.
The Internal Revenue Service took this approach with delinquent taxpayers a few years ago and found that it was a cost-effective way to get more people into compliance with the law.
The government should also broaden access to its loan rehabilitation program, which allows people in default to get back into compliance by making a specific number of payments and meeting certain conditions.
The federal student loan program is meant to give millions of Americans a chance at a college education, which can lift them up economically. That goal is undermined when crushing repayment burdens in hard times actually push many people to the very margins of society.
Click the green for further info
MORE IN OPINION (1 OF 23 ARTICLES) Op-Ed Contributor: When Growth Outpaces Happiness
Read More »
This article is for your private use, only
___________________________
Avoiding Student Loan Default
The federal student loan program
offers flexible payment plans
that are supposed to keep borrowers out of default
even when they have lost their jobs and can afford almost nothing in monthly payments.
But these programs will never serve their intended purpose until
the government does a better job
of getting out the word about them and makes them easier to use.
Use the programs - you can avoid negative information in your credit reports
and keep your good credit score.
Contact your College/University Financial Topics Counselor
or
Contact the U.S. Government's Student Loan Administrative office
Find the links on the internet or call your bank for contact info
________________
Avoiding Student Loan Default
Date: September 22, 2012
Source: NYT - Editorials
Click the green for further info
The federal student loan program offers flexible payment plans that are supposed to keep borrowers out of default even when they have lost their jobs and can afford almost nothing in monthly payments. But these programs will never serve their intended purpose until the government does a better job of getting out the word about them and makes them easier to use.
As The Times’s Andrew Martin reported this month, defaults on government-backed loans have exploded since the start of the recession. The number of people who have fallen at least 12 months behind in payments has risen by about a third over the last five years, which means that nearly one in every six borrowers with a loan balance is in default.
The amount of defaulted loans — about $76 billion — is said to be greater than the yearly tuition bill for all students at public two- and four-year colleges.
Many of those in default could benefit from a flexible payment plan or loan forgiveness. Instead, they end up with ruined credit histories and even higher loan balances through penalties, and become prey to debt collectors who can garnish their wages for the overdue amounts.
The dunning letters that borrowers receive are mostly intended to terrify them into paying as much as they can as quickly as possible; they often fail to explain that the borrowers can avoid default by signing up for more affordable payment plans. A recent report by the National Consumer Law Center included a survey of 40 people in default and found that nearly two-thirds of them did not recall being contacted before being declared in default. This means they never had a chance to avoid it by signing up for alternative plans.
One of these plans, called Income-Based Repayment, caps the required monthly payment at an affordable amount based on the borrower’s earnings and family size. Under this program, people who pay 15 percent of their discretionary incomes for up to 25 years have the rest of the loan forgiven. There is a similar kind of loan forgiveness program for borrowers who work full time in public service jobs for 10 years.
Critics have complained that the application for the Income-Based Repayment program is too complicated. Fortunately, the Department of Education plans to introduce a streamlined online application for the program this month. But the government should go a step further, automatically enrolling qualified borrowers — including people on public assistance or Social Security — while they are behind on payments, before they officially default.
The department is also completing regulations that will protect delinquents from being moved into payment plans that they cannot afford. But it will be difficult for collectors to administer the complex provisions laid out in federal law. The better option would be for the department to take the $1.4 billion it paid collection agencies and other groups last year and use it to establish a division that deals with delinquent debts and loan disputes.
The Internal Revenue Service took this approach with delinquent taxpayers a few years ago and found that it was a cost-effective way to get more people into compliance with the law.
The government should also broaden access to its loan rehabilitation program, which allows people in default to get back into compliance by making a specific number of payments and meeting certain conditions.
The federal student loan program is meant to give millions of Americans a chance at a college education, which can lift them up economically. That goal is undermined when crushing repayment burdens in hard times actually push many people to the very margins of society.
Click the green for further info
MORE IN OPINION (1 OF 23 ARTICLES) Op-Ed Contributor: When Growth Outpaces Happiness
Read More »
This article is for your private use, only
___________________________
Student Loan Programs in Crisis
Risk of defaults increasing
Date: February 19, 2013
Consumer Financial Protection Bureau:
Student loans have now surpassed credit cards as the largest source of unsecured consumer debt
Risk of defaults increasing
Date: February 19, 2013
Consumer Financial Protection Bureau:
Student loans have now surpassed credit cards as the largest source of unsecured consumer debt
Americans are borrowing, not frivolously, but to further their chances to land that perfect job and move up the corporate ladder. To have that dream come true, about 60 percent of the 20 million Americans enrolled annually at an American university take out a student loan, according to statistics collected and reported on the American Student Assistance (ASA) website.
“Since 1978 the cost of higher education has increased by over 900 percent, so many students find themselves taking out student loans to supplement these costs in hopes of landing a well-paying position post-graduation,” the My Student Loan Relief website states.
A student loan is often the first type of unsecured borrowing that allows an individual to establish a credit history, providing the ability to borrow for large purchases in the future, such as a home.
“Student loans have now surpassed credit cards as the largest source of unsecured consumer debt. Before the financial crisis, the private student loan market boomed, and many consumers borrowed significantly to pay for post secondary education expenses,” according to an Oct. 16, 2012, report published on the Consumer Financial Protection Bureau (CFPB) website.
Members of Congress Taking Out Student Loans
Student loans have been taken out by people from all walks of life, even members of Congress. As reported on 2011 financial disclosure forms, Congress members owed between $1.8 million and $4.3 million on student loans, according to a February report published on the website of the Center for Responsive Politics, a nonprofit, independent, and nonpartisan group.
Members of Congress took out student loans for themselves, their spouses, or their offspring. According to the Center for Responsive Politics, Rep. Raul Ruiz reported student loans amounting to “between $115,001 and $300,000.” Ruiz earned a degree at the University of California (UCLA), as well as a medical degree and two additional graduate degrees at Harvard University.
Among the top 10 of those members of Congress reporting student loan debt, Rep. James Bridenstine, Rep. John Carter, Rep. Grace Meng, and Rep. Tom Rooney, in addition to Ruiz, are listed. The report also details a long list of America’s politicians who reported student loans on their 2012 financial disclosure forms.
“The number of members of Congress with such [student loan] debt has climbed in the last several years. Disclosure reports filed in 2008 showed that only three senators and 27 House members had student loan debt the year before, totaling between $970,000 and $2.4 million,” the Center for Responsive Politics report states.
Student Debt in Numbers“Since 2007 the incidence of student debt has increased in nearly every demographic and economic category, as has the size of that debt,” according to a September 2012 report on the Pew Research Center website.
Student loans not yet paid in full are held by about 37 million former and current students. The data differs as to the dollar amount of these outstanding student loans, with the Federal Reserve Bank of New York (FRBNY) reporting $902 billion, according to ASA, and the CFPB reporting $1 trillion.
According to the Student Loan Debt Clock, on Feb. 11, 2013.the rolling total student debt in the United States amounted to $1.07 trillion.
The CFPB suggests that more than $150 billion of the $1 trillion student loans are considered private loans, as they were extended by banks, credit unions, nonprofit organizations, universities, and other private sector financial entities. Approximately $8 billion or 5.33 percent of these loans are in default and represent over 850,000 outstanding loans.
“Of the 37 million borrowers who have outstanding student loan balances, 14%, or about 5.4 million borrowers, have at least one past due student loan account,” according to the ASA website. Referencing FRBNY data, ASA states, “Of the $870B–$1T in outstanding student loan debt, approximately $85 billion is past due.”
Reasons for being past due on a student loan vary from dropping out of college, earning just enough for subsistence, being unemployed or underemployed, or being too deep into debt for other reasons.
“With the economic crisis facing the nation, many college graduates find themselves hardly able to land any position at all. … Approximately 14% default within the first 3 years of graduation, largely due to the fact that it has become so difficult to gain employment,” the My Student Loan Relief article suggests.
Lenders Worry About Student Loan Defaults“FICO’s quarterly survey of bank risk managers conducted in December 2012 found that nearly 60 percent of respondents expected delinquencies on student loans to increase over the next six months,” states FICO, a credit rating agency, in a Jan. 30 report published on its website.
The FICO study suggests that students have accumulated more debt than they had a decade ago and are more at risk than ever before of defaulting on their loans, given difficult economic times.
The student loan delinquency rate is growing. With the dollar amount of average student loans increasing by 58 percent between 2005 and 2012—from $17,233 to $27,253—the risk of default has become much greater. In comparison, total debt increased by just 16 percent during the same time period.
A FICO analysis of student loan default rates shows the composite of all outstanding student loans. Loans that originated before October 2005 had a 17 percent delinquency rate between October 2005 and October 2007, and those that originated before October 2010 had a 25.1 percent delinquency rate between October 2010 and October 2012, accounting for a percentage change of 47 percent.
In comparison, student loans that originated between October 2005 and October 2007 had a delinquency rate of 12.4 percent, and those that originated between October 2010 and October 2012 had a rate of 15.1 percent, accounting for a lower percentage change of 21.5 percent.
“Interestingly, most respondents [bank risk management professionals] expected delinquencies on every other type of consumer loan to hold steady or decrease, underscoring the highly targeted concern of lenders when it comes to student loans,” the FICO report states.
FICO suggests that over time, higher student loans have become riskier, but FICO’s scoring can capture such a problem, providing the lender with a tool to assess its willingness to take a risk.
Additionally, a student loan cannot be compared with a mortgage loan and thus would not affect the U.S. economy as drastically as the defaults of mortgage loans.
“A defaulted student loan is not likely to cause the same ripple effect as a foreclosure, given that the student loan industry does not contribute to the US economy to the same degree as the mortgage industry,” the FICO report suggests.
Cost of Default Too High“Upon signing your initial promissory note you are taking responsibility to repay the loan. In addition you are also agreeing to pay any collection costs on your debt should your loan be defaulted,” the My Student Loan Relief website warns.
Additional costs when defaulting on a student loan could increase the already outstanding loan and interest by as high as 24 percent.
“Collection costs are recalculated annually and the percentage rate is subject to change depending on variations with administrative costs, or whether your account is assigned to a collections agency or an attorney,” according to the My Student Loan Relief website.
Click - if the link is expired search the web with this title: Middle-Income Parents Weigh Rising College Costs
Source: The Federal Reserve Bank of New York (FRBNY)
_______________________________________________
“Since 1978 the cost of higher education has increased by over 900 percent, so many students find themselves taking out student loans to supplement these costs in hopes of landing a well-paying position post-graduation,” the My Student Loan Relief website states.
A student loan is often the first type of unsecured borrowing that allows an individual to establish a credit history, providing the ability to borrow for large purchases in the future, such as a home.
“Student loans have now surpassed credit cards as the largest source of unsecured consumer debt. Before the financial crisis, the private student loan market boomed, and many consumers borrowed significantly to pay for post secondary education expenses,” according to an Oct. 16, 2012, report published on the Consumer Financial Protection Bureau (CFPB) website.
Members of Congress Taking Out Student Loans
Student loans have been taken out by people from all walks of life, even members of Congress. As reported on 2011 financial disclosure forms, Congress members owed between $1.8 million and $4.3 million on student loans, according to a February report published on the website of the Center for Responsive Politics, a nonprofit, independent, and nonpartisan group.
Members of Congress took out student loans for themselves, their spouses, or their offspring. According to the Center for Responsive Politics, Rep. Raul Ruiz reported student loans amounting to “between $115,001 and $300,000.” Ruiz earned a degree at the University of California (UCLA), as well as a medical degree and two additional graduate degrees at Harvard University.
Among the top 10 of those members of Congress reporting student loan debt, Rep. James Bridenstine, Rep. John Carter, Rep. Grace Meng, and Rep. Tom Rooney, in addition to Ruiz, are listed. The report also details a long list of America’s politicians who reported student loans on their 2012 financial disclosure forms.
“The number of members of Congress with such [student loan] debt has climbed in the last several years. Disclosure reports filed in 2008 showed that only three senators and 27 House members had student loan debt the year before, totaling between $970,000 and $2.4 million,” the Center for Responsive Politics report states.
Student Debt in Numbers“Since 2007 the incidence of student debt has increased in nearly every demographic and economic category, as has the size of that debt,” according to a September 2012 report on the Pew Research Center website.
Student loans not yet paid in full are held by about 37 million former and current students. The data differs as to the dollar amount of these outstanding student loans, with the Federal Reserve Bank of New York (FRBNY) reporting $902 billion, according to ASA, and the CFPB reporting $1 trillion.
According to the Student Loan Debt Clock, on Feb. 11, 2013.the rolling total student debt in the United States amounted to $1.07 trillion.
The CFPB suggests that more than $150 billion of the $1 trillion student loans are considered private loans, as they were extended by banks, credit unions, nonprofit organizations, universities, and other private sector financial entities. Approximately $8 billion or 5.33 percent of these loans are in default and represent over 850,000 outstanding loans.
“Of the 37 million borrowers who have outstanding student loan balances, 14%, or about 5.4 million borrowers, have at least one past due student loan account,” according to the ASA website. Referencing FRBNY data, ASA states, “Of the $870B–$1T in outstanding student loan debt, approximately $85 billion is past due.”
Reasons for being past due on a student loan vary from dropping out of college, earning just enough for subsistence, being unemployed or underemployed, or being too deep into debt for other reasons.
“With the economic crisis facing the nation, many college graduates find themselves hardly able to land any position at all. … Approximately 14% default within the first 3 years of graduation, largely due to the fact that it has become so difficult to gain employment,” the My Student Loan Relief article suggests.
Lenders Worry About Student Loan Defaults“FICO’s quarterly survey of bank risk managers conducted in December 2012 found that nearly 60 percent of respondents expected delinquencies on student loans to increase over the next six months,” states FICO, a credit rating agency, in a Jan. 30 report published on its website.
The FICO study suggests that students have accumulated more debt than they had a decade ago and are more at risk than ever before of defaulting on their loans, given difficult economic times.
The student loan delinquency rate is growing. With the dollar amount of average student loans increasing by 58 percent between 2005 and 2012—from $17,233 to $27,253—the risk of default has become much greater. In comparison, total debt increased by just 16 percent during the same time period.
A FICO analysis of student loan default rates shows the composite of all outstanding student loans. Loans that originated before October 2005 had a 17 percent delinquency rate between October 2005 and October 2007, and those that originated before October 2010 had a 25.1 percent delinquency rate between October 2010 and October 2012, accounting for a percentage change of 47 percent.
In comparison, student loans that originated between October 2005 and October 2007 had a delinquency rate of 12.4 percent, and those that originated between October 2010 and October 2012 had a rate of 15.1 percent, accounting for a lower percentage change of 21.5 percent.
“Interestingly, most respondents [bank risk management professionals] expected delinquencies on every other type of consumer loan to hold steady or decrease, underscoring the highly targeted concern of lenders when it comes to student loans,” the FICO report states.
FICO suggests that over time, higher student loans have become riskier, but FICO’s scoring can capture such a problem, providing the lender with a tool to assess its willingness to take a risk.
Additionally, a student loan cannot be compared with a mortgage loan and thus would not affect the U.S. economy as drastically as the defaults of mortgage loans.
“A defaulted student loan is not likely to cause the same ripple effect as a foreclosure, given that the student loan industry does not contribute to the US economy to the same degree as the mortgage industry,” the FICO report suggests.
Cost of Default Too High“Upon signing your initial promissory note you are taking responsibility to repay the loan. In addition you are also agreeing to pay any collection costs on your debt should your loan be defaulted,” the My Student Loan Relief website warns.
Additional costs when defaulting on a student loan could increase the already outstanding loan and interest by as high as 24 percent.
“Collection costs are recalculated annually and the percentage rate is subject to change depending on variations with administrative costs, or whether your account is assigned to a collections agency or an attorney,” according to the My Student Loan Relief website.
Click - if the link is expired search the web with this title: Middle-Income Parents Weigh Rising College Costs
Source: The Federal Reserve Bank of New York (FRBNY)
_______________________________________________
Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy -
Study this article below: by Dr. Christian von Christophers, Ph.D., N.D., D.D., STAF, Inc.'s President
_______________
AVOID a bankruptcy
as much as you possibly can
Avoid it - do not do it, IF any other solutions exist
There is always another solution
- most likely a better solution -
Article 1 of 4: Introduction
By
Dr. Christian von Christophers, Ph.D., N.D., D.D.
STAF, Inc.'s President
October 2012
A bankruptcy will ruin your credit for 7 - 10 years. Your credit worthiness is your lifeline. When you are seeking a work position - your credit history may/will be checked. Many employers do not hire a person with a bankruptcy because it is, in their eyes and mind, a sign of an ignorant, irresponsible person. Sorry to say that but that is often the reality in the hiring process.
Sometimes a financial disaster & a bankruptcy is not caused by you but are the results of other people's wrong, dishonest, perhaps seriously fraudulent actions (e.g. an ID theft, etc.). An I.D. theft can happen to anyone - it is one of the largest crimes worldwide.
In such a fraud situation report the facts (with evidence) in writing to all major credit reporting companies.
For this purpose AND BEFORE you contact the credit report agencies, consult a competent credit-related lawyer. If you cannot afford a private lawyer, contact the "Legal Service" office - you get a free lawyer.
Confirm that the legal adviser is knowledgeable of credit laws and other laws relating to your situation.
Before seeing any lawyer in any matter for a consultation, always contact your area's Bar Association to check (1) the lawyer's specialty fields and also (2) that he/she is admitted to the local bar in good standing, plus (3) check if complaints of any kind, including ethics cases, have ever been filed against that lawyer.
In addition (in New York City 311) your state, city, town, village, charities, church, other organizations, may have other free, result-bringing service options.
It is a good idea to be a member in an organization providing lawyer services at a discounted rate. Most of them give a free initial consultation. However, be aware that no one really can check or prove how many minutes/hours your lawyer has worked in your case (after you have retained the lawyer). Some studies show that close to 50 % lawyers inflate their hours in their billion. Sorry to say that.
The organizations selling membership in the lawyer services have a membership fee. Study the internet for further info - then check in the related "Better Business Bureau" if any complaints against that service organization has been filed.
An excellent idea: you will get FREE legal consultation: if you are over 50, join the AARP (= American Association of Retired People). You do not have to be retired, only 50 or over by age. AARP's membership is the best value of any memberships. In 2012 yearly fee $16 dollars (and if you pay with a credit card it is only $11 per a year). With this membership fee the AARP gives the 2nd membership free to your spouse. Only one spouse has to be 50 or over, the second spouse can be of any legal age to be married.
In addition the AARP has an excellent website for all types of information. AARP is a powerful organization for improving the quality of life. STAF, Inc. does similar type of work as the AARP with the difference that STAF, Inc. has no age limit for its services or to its membership and to its publications. For one fee the AARP gives 2 membership - the 2nd one is free for your spouse. Both can use the membership card for discounts.
With this small AARP fee you get the (1) the worlds most distributed magazine free - very high quality (close to 50 millions in print - nationwide, worldwide distribution - the information in this magazine is valid for a worldwide use),
(2) a Bulletin full of valuable informati0n - very high quality. The publications are delivered to the members via the U.S. mail. Other benefits of the AARP membership are (3) discounts in hotels, traveling, stores, public services of many kinds, etc., (4) a free 45 min. legal consultation by phone or in the office by a lawyer in any area of law covering all the U.S. If you hire that lawyer you get a discounted rate for all services. If you do not like the lawyer you meet for a free consultation, you can choose as many to meet as you wish to meet to select someone you trust to get the results you want.
Avoid a bankruptcy - do something else. Have competent counseling (non-academic credit counselors are not always very competent) - talk to your lawyer. If you talk to a bankruptcy lawyer and ask whether you should or should not do bankruptcy, realize the fact in the next sentence.
If you ask a barber "Do I need a haircut?", the barber will say "Yes, you do need a haircut" (even though you would have only one hair hanging on your head) - the barber wants to make his money.
What do you think a bankruptcy lawyer is going to answer? A lawyer is like a "barber" in his field. The lawyer wants his fee from you - perhaps your last money. The bankruptcy lawyer is going to say : "Yes, let's do it - then all your problems are over and you can start a new life." The lawyer will say: "You need a bankruptcy - pay a retainer and I will handle all."
We at STSF, Inc. advice: do not do it - avoid bankruptcy - there are other options to solve ALL your problems - options that do NOT ruin your credit worthiness for 7 - 10 years. Even after this 7-10 years period you will in many hiring or credit seeking situations be asked "did you ever file for a bankruptcy" or "did you ever have a bankruptcy". The question may haunt you for the rest of your life not only the 7-10 years. Avoid a bankruptcy.
Avoid a bankruptcy - find another solution for your particular situation. There is always a better solution.
Call STAF, Inc. for advice after you have done all you can to find the best solution. Our counselors are not "barbers" - we are "saving the American families" - STAF, Inc.'s counselors will help you to find the correct solution for your situation.
If you go through the bankruptcy process you will most likely regret it as it will make you to "an outcast" more often than not. The employers will easily say "NO". Financial failure is considered as a unreliable character. In case you became a victim of fraud and have not caused yourself your financial disaster situation, create a package of clear written evidence and provide it to the potential employers and all other parties you need to prove that you are a reliable, honest, hard-working person - that you can be trusted. BUT: again, before you show your package to anyone: CONSULT YOUR COMPETENT LAWYER and have him verifying that the evidence material is acceptable. Better yet, and we are serious: become a AARP member and have 1 - 3 lawyers checking the same material and initially take also 1 - 3 free consultations provided by a competent lawyer. In smaller areas there may not be so many lawyer choices.
An old saying states "Multiple counselors bring good success".
Avoid a bankruptcy - WHAT IS THE BEST THING TO DO: call STAF, Inc., we are not barbers, we are helpers, helping every family and every person contacting us. We guide you to advisers who are not "barbers".
Before calling STAF, Inc., contact your local sources for guidance. In New York City call 311 (a toll-free call from any payphone) and ask to meet and talk to someone handling these issues. In other areas of the country or world contact your local public services for reliable 'non-barber' advice. By all means: Avoid a bankruptcy
Before you talk to any lawyer, to any counselor, to STAF, Inc.'s adviser, study the following information
click the green below - STILL: Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy -
Click both (1) and (2) greens below for further info
(1) Types of Bankruptcy
(2) Personal Finance
- Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy -
Study this article below: by Dr. Christian von Christophers, Ph.D., N.D., D.D., STAF, Inc.'s President
_______________
AVOID a bankruptcy
as much as you possibly can
Avoid it - do not do it, IF any other solutions exist
There is always another solution
- most likely a better solution -
Article 1 of 4: Introduction
By
Dr. Christian von Christophers, Ph.D., N.D., D.D.
STAF, Inc.'s President
October 2012
A bankruptcy will ruin your credit for 7 - 10 years. Your credit worthiness is your lifeline. When you are seeking a work position - your credit history may/will be checked. Many employers do not hire a person with a bankruptcy because it is, in their eyes and mind, a sign of an ignorant, irresponsible person. Sorry to say that but that is often the reality in the hiring process.
Sometimes a financial disaster & a bankruptcy is not caused by you but are the results of other people's wrong, dishonest, perhaps seriously fraudulent actions (e.g. an ID theft, etc.). An I.D. theft can happen to anyone - it is one of the largest crimes worldwide.
In such a fraud situation report the facts (with evidence) in writing to all major credit reporting companies.
For this purpose AND BEFORE you contact the credit report agencies, consult a competent credit-related lawyer. If you cannot afford a private lawyer, contact the "Legal Service" office - you get a free lawyer.
Confirm that the legal adviser is knowledgeable of credit laws and other laws relating to your situation.
Before seeing any lawyer in any matter for a consultation, always contact your area's Bar Association to check (1) the lawyer's specialty fields and also (2) that he/she is admitted to the local bar in good standing, plus (3) check if complaints of any kind, including ethics cases, have ever been filed against that lawyer.
In addition (in New York City 311) your state, city, town, village, charities, church, other organizations, may have other free, result-bringing service options.
It is a good idea to be a member in an organization providing lawyer services at a discounted rate. Most of them give a free initial consultation. However, be aware that no one really can check or prove how many minutes/hours your lawyer has worked in your case (after you have retained the lawyer). Some studies show that close to 50 % lawyers inflate their hours in their billion. Sorry to say that.
The organizations selling membership in the lawyer services have a membership fee. Study the internet for further info - then check in the related "Better Business Bureau" if any complaints against that service organization has been filed.
An excellent idea: you will get FREE legal consultation: if you are over 50, join the AARP (= American Association of Retired People). You do not have to be retired, only 50 or over by age. AARP's membership is the best value of any memberships. In 2012 yearly fee $16 dollars (and if you pay with a credit card it is only $11 per a year). With this membership fee the AARP gives the 2nd membership free to your spouse. Only one spouse has to be 50 or over, the second spouse can be of any legal age to be married.
In addition the AARP has an excellent website for all types of information. AARP is a powerful organization for improving the quality of life. STAF, Inc. does similar type of work as the AARP with the difference that STAF, Inc. has no age limit for its services or to its membership and to its publications. For one fee the AARP gives 2 membership - the 2nd one is free for your spouse. Both can use the membership card for discounts.
With this small AARP fee you get the (1) the worlds most distributed magazine free - very high quality (close to 50 millions in print - nationwide, worldwide distribution - the information in this magazine is valid for a worldwide use),
(2) a Bulletin full of valuable informati0n - very high quality. The publications are delivered to the members via the U.S. mail. Other benefits of the AARP membership are (3) discounts in hotels, traveling, stores, public services of many kinds, etc., (4) a free 45 min. legal consultation by phone or in the office by a lawyer in any area of law covering all the U.S. If you hire that lawyer you get a discounted rate for all services. If you do not like the lawyer you meet for a free consultation, you can choose as many to meet as you wish to meet to select someone you trust to get the results you want.
Avoid a bankruptcy - do something else. Have competent counseling (non-academic credit counselors are not always very competent) - talk to your lawyer. If you talk to a bankruptcy lawyer and ask whether you should or should not do bankruptcy, realize the fact in the next sentence.
If you ask a barber "Do I need a haircut?", the barber will say "Yes, you do need a haircut" (even though you would have only one hair hanging on your head) - the barber wants to make his money.
What do you think a bankruptcy lawyer is going to answer? A lawyer is like a "barber" in his field. The lawyer wants his fee from you - perhaps your last money. The bankruptcy lawyer is going to say : "Yes, let's do it - then all your problems are over and you can start a new life." The lawyer will say: "You need a bankruptcy - pay a retainer and I will handle all."
We at STSF, Inc. advice: do not do it - avoid bankruptcy - there are other options to solve ALL your problems - options that do NOT ruin your credit worthiness for 7 - 10 years. Even after this 7-10 years period you will in many hiring or credit seeking situations be asked "did you ever file for a bankruptcy" or "did you ever have a bankruptcy". The question may haunt you for the rest of your life not only the 7-10 years. Avoid a bankruptcy.
Avoid a bankruptcy - find another solution for your particular situation. There is always a better solution.
Call STAF, Inc. for advice after you have done all you can to find the best solution. Our counselors are not "barbers" - we are "saving the American families" - STAF, Inc.'s counselors will help you to find the correct solution for your situation.
If you go through the bankruptcy process you will most likely regret it as it will make you to "an outcast" more often than not. The employers will easily say "NO". Financial failure is considered as a unreliable character. In case you became a victim of fraud and have not caused yourself your financial disaster situation, create a package of clear written evidence and provide it to the potential employers and all other parties you need to prove that you are a reliable, honest, hard-working person - that you can be trusted. BUT: again, before you show your package to anyone: CONSULT YOUR COMPETENT LAWYER and have him verifying that the evidence material is acceptable. Better yet, and we are serious: become a AARP member and have 1 - 3 lawyers checking the same material and initially take also 1 - 3 free consultations provided by a competent lawyer. In smaller areas there may not be so many lawyer choices.
An old saying states "Multiple counselors bring good success".
Avoid a bankruptcy - WHAT IS THE BEST THING TO DO: call STAF, Inc., we are not barbers, we are helpers, helping every family and every person contacting us. We guide you to advisers who are not "barbers".
Before calling STAF, Inc., contact your local sources for guidance. In New York City call 311 (a toll-free call from any payphone) and ask to meet and talk to someone handling these issues. In other areas of the country or world contact your local public services for reliable 'non-barber' advice. By all means: Avoid a bankruptcy
Before you talk to any lawyer, to any counselor, to STAF, Inc.'s adviser, study the following information
click the green below - STILL: Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy -
Click both (1) and (2) greens below for further info
(1) Types of Bankruptcy
(2) Personal Finance
- Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy -
Article 2 of 4
Q: I'm in the process of filing bankruptcy. However, my husband receives Social Security and workers' compensation. My mother recently passed away, and we will be getting an inheritance of about $10,000. Will the court take the inheritance when we file bankruptcy?
A: You and your husband receive only Social Security income and his current workers' compensation income. If that is the only income in your household, then you and your husband should easily qualify for the income portion of a Chapter 7 bankruptcy. You do need to make sure you don't have too many assets.
This inheritance is definitely an asset. You need to be careful when dealing with it. At the time of filing bankruptcy, you must disclose whether you are expecting to receive an inheritance or whether you are the beneficiary of a trust that is being administered. Most of the time, people filing bankruptcy may know that one day they will receive a small or substantial inheritance; they just don't know when. It may be months or years before any money comes. This type of speculative information does not need to be listed in a bankruptcy.
In your case, you know that $10,000 is coming. If you filed your case today, you must disclose this money in your bankruptcy paperwork. Depending on the state in which you live and what assets you are allowed to protect, you may not be able to keep that money had you filed today.
Fortunately, you did not file yet. I say that it is fortunate because now you can spend that money on you and your household before filing. You did not receive hundreds of thousands of dollars, which would be hard to spend and ridiculous to waste. Here, you received a decent amount of money, but likely not enough to pay off your creditors.
An experienced bankruptcy attorney can discuss with you how to legally and reasonably spend this money. For example, you could use it to fund a retirement account or a life insurance policy. You may be able to use some of the money for a reliable, used vehicle. Or spend the money on rent, utilities, car repairs and auto insurance. These are some legal and reasonable ways to spend the money.
You can't just hide the money in a mattress, give it to a friend or family or pay back any loans you may have with friends or family. Those are impermissible actions prior to filing. You need to be able to account for how you spend the money.
I am sure that your family can use this money for a few necessary and reasonable expenses.
If you are not able to protect the money when you file, then use it wisely, keep track of how you spend it and then file bankruptcy when you have spent the money. Don't be ashamed of spending it on your family. Good luck.
Ask the adviserTo ask a question of the Bankruptcy Adviser, go to the "Ask the Experts" page and select "Bankruptcy" as the topic. Read more Bankruptcy Adviser columns and more stories about debt management.
Bankrate's content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy.
Source: Bankrate.com
Click green - if the link has expired search the web with the same title
Article 3 of 4
Can lender repossess my car in bankruptcy?
Q: I am behind on my car loan and other bills. I'm worried my car will be repossessed, and then I'll have no way to get to work and I'll get further behind in debt. Will filing for bankruptcy protect my car from repossession?
A: It's likely that bankruptcy will protect your car from repossession, but only if you stay current on your car loan payments. Filing a Chapter 13 bankruptcy would allow you to pay off the balance over three to five years.
When you file for Chapter 7 bankruptcy protection, most creditors are prohibited from trying to collect on your debt through something called an automatic stay.
Because of the automatic stay, the only way a lender can repossess your car is by getting the court's permission to do so. However, many lenders do request permission and have it granted by the court if you are behind on your payments.
You may still be able to avoid having your car repossessed by showing that you need it to get to work to pay off your debt, but you would need to renegotiate the terms of your car loan with your lender, catch up on the payments or possibly even buy the car for its fair market value.
Consult a bankruptcy attorney to discuss your options to help you decide when and if you should file.
Source: Bankrate.com
- Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy
_________________________________________________________________________________
Q: I'm in the process of filing bankruptcy. However, my husband receives Social Security and workers' compensation. My mother recently passed away, and we will be getting an inheritance of about $10,000. Will the court take the inheritance when we file bankruptcy?
A: You and your husband receive only Social Security income and his current workers' compensation income. If that is the only income in your household, then you and your husband should easily qualify for the income portion of a Chapter 7 bankruptcy. You do need to make sure you don't have too many assets.
This inheritance is definitely an asset. You need to be careful when dealing with it. At the time of filing bankruptcy, you must disclose whether you are expecting to receive an inheritance or whether you are the beneficiary of a trust that is being administered. Most of the time, people filing bankruptcy may know that one day they will receive a small or substantial inheritance; they just don't know when. It may be months or years before any money comes. This type of speculative information does not need to be listed in a bankruptcy.
In your case, you know that $10,000 is coming. If you filed your case today, you must disclose this money in your bankruptcy paperwork. Depending on the state in which you live and what assets you are allowed to protect, you may not be able to keep that money had you filed today.
Fortunately, you did not file yet. I say that it is fortunate because now you can spend that money on you and your household before filing. You did not receive hundreds of thousands of dollars, which would be hard to spend and ridiculous to waste. Here, you received a decent amount of money, but likely not enough to pay off your creditors.
An experienced bankruptcy attorney can discuss with you how to legally and reasonably spend this money. For example, you could use it to fund a retirement account or a life insurance policy. You may be able to use some of the money for a reliable, used vehicle. Or spend the money on rent, utilities, car repairs and auto insurance. These are some legal and reasonable ways to spend the money.
You can't just hide the money in a mattress, give it to a friend or family or pay back any loans you may have with friends or family. Those are impermissible actions prior to filing. You need to be able to account for how you spend the money.
I am sure that your family can use this money for a few necessary and reasonable expenses.
If you are not able to protect the money when you file, then use it wisely, keep track of how you spend it and then file bankruptcy when you have spent the money. Don't be ashamed of spending it on your family. Good luck.
Ask the adviserTo ask a question of the Bankruptcy Adviser, go to the "Ask the Experts" page and select "Bankruptcy" as the topic. Read more Bankruptcy Adviser columns and more stories about debt management.
Bankrate's content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy.
Source: Bankrate.com
Click green - if the link has expired search the web with the same title
- Can court force loan mod A loan modification is a process where the terms of a mortgage or any other loan are modified outside the original terms of the contract agreed to by the lender and borrower (i.e. mortgagor and mortgagee or a debtor in any debt). In general, any loan can be modified.
- Paying post-divorce debt
Article 3 of 4
Can lender repossess my car in bankruptcy?
Q: I am behind on my car loan and other bills. I'm worried my car will be repossessed, and then I'll have no way to get to work and I'll get further behind in debt. Will filing for bankruptcy protect my car from repossession?
A: It's likely that bankruptcy will protect your car from repossession, but only if you stay current on your car loan payments. Filing a Chapter 13 bankruptcy would allow you to pay off the balance over three to five years.
When you file for Chapter 7 bankruptcy protection, most creditors are prohibited from trying to collect on your debt through something called an automatic stay.
Because of the automatic stay, the only way a lender can repossess your car is by getting the court's permission to do so. However, many lenders do request permission and have it granted by the court if you are behind on your payments.
You may still be able to avoid having your car repossessed by showing that you need it to get to work to pay off your debt, but you would need to renegotiate the terms of your car loan with your lender, catch up on the payments or possibly even buy the car for its fair market value.
Consult a bankruptcy attorney to discuss your options to help you decide when and if you should file.
Source: Bankrate.com
- Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy
_________________________________________________________________________________
Article 4 of 4
Will divorce force me into bankruptcy?
Q: I could really use your help. I'm 50, I was recently divorced, and I walked away with nothing.
It's my fault, I did not plan accordingly. It gets worse: I lost my job, so I've been out of work for six months and living on credit. My credit score was once 780. Now, I'm afraid to look. I owe $25,000 from my credit cards and another $20,000 for my son's student loans. I also have a car payment. I'm in serious delinquency and have been dealing with the possibility of repossession, creditor calls, etc. I really feel my life is ruined. The good news is I will be starting a job In a few days.
So here's my question: Should I file for bankruptcy, proceed with debt settlement or find another debt program?
A: My first piece of advice is not to look back or ruminate on things you can't change. You'll be much better off focusing on your finances so you can enjoy your next 50 years.
You've already fixed one of your biggest problems: You've secured a job. Using credit to keep your head above water while you are looking can be a smart strategy provided you keep your minimum payments up to date while you are job hunting. This can protect your cash reserves while keeping your credit report clean during the job application process. It sounds like you ran out of credit before you got your new job. You have the job now, so let's get you fiscally fit again!
Hopefully your new job gives you the financial means to make some progress on your bills. And don't worry about getting credit again. You should be well on your way to improving your situation and becoming creditworthy in about two to three years. Remember, your credit report is a snapshot of your current financial life. Once you begin to improve your credit report, your credit score will follow.
I want you to start with a plan -- a comprehensive, customized, flexible plan. First, determine your fixed living expenses. Next, figure out what you need to pay to save your car from repossession. Then, find out what you need to pay to satisfy your other creditors.
To help you decide the best course of action, I recommend you contact a nonprofit credit counseling agency that's affiliated with either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. Your certified credit counselor will help you review your expenses, income and assets. After you have completed a thorough financial review, your counselor will make recommendations on how to proceed.
As long as you have enough income to pay what you owe, I wouldn't file for bankruptcy. It probably won't make the student loans go away. Settlements may work instead. But if you decide to go this route, do it yourself and be sure to get all settlement agreements in writing before you send your payment(s).
At 50, it is time to begin saving aggressively. My recommendation is to keep just enough money in your checking account to handle your living expenses. Then, use direct deposits to funnel all the rest of your income into savings and investment accounts. Roll your retirement funds into an IRA and begin looking at moderate to conservative investment strategies. Chances are it won't be the great investments you pick that will determine your retirement future, but the losers you avoid! Good luck!
Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy
_________________________________________________________________________________
Will divorce force me into bankruptcy?
Q: I could really use your help. I'm 50, I was recently divorced, and I walked away with nothing.
It's my fault, I did not plan accordingly. It gets worse: I lost my job, so I've been out of work for six months and living on credit. My credit score was once 780. Now, I'm afraid to look. I owe $25,000 from my credit cards and another $20,000 for my son's student loans. I also have a car payment. I'm in serious delinquency and have been dealing with the possibility of repossession, creditor calls, etc. I really feel my life is ruined. The good news is I will be starting a job In a few days.
So here's my question: Should I file for bankruptcy, proceed with debt settlement or find another debt program?
A: My first piece of advice is not to look back or ruminate on things you can't change. You'll be much better off focusing on your finances so you can enjoy your next 50 years.
You've already fixed one of your biggest problems: You've secured a job. Using credit to keep your head above water while you are looking can be a smart strategy provided you keep your minimum payments up to date while you are job hunting. This can protect your cash reserves while keeping your credit report clean during the job application process. It sounds like you ran out of credit before you got your new job. You have the job now, so let's get you fiscally fit again!
Hopefully your new job gives you the financial means to make some progress on your bills. And don't worry about getting credit again. You should be well on your way to improving your situation and becoming creditworthy in about two to three years. Remember, your credit report is a snapshot of your current financial life. Once you begin to improve your credit report, your credit score will follow.
I want you to start with a plan -- a comprehensive, customized, flexible plan. First, determine your fixed living expenses. Next, figure out what you need to pay to save your car from repossession. Then, find out what you need to pay to satisfy your other creditors.
To help you decide the best course of action, I recommend you contact a nonprofit credit counseling agency that's affiliated with either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. Your certified credit counselor will help you review your expenses, income and assets. After you have completed a thorough financial review, your counselor will make recommendations on how to proceed.
As long as you have enough income to pay what you owe, I wouldn't file for bankruptcy. It probably won't make the student loans go away. Settlements may work instead. But if you decide to go this route, do it yourself and be sure to get all settlement agreements in writing before you send your payment(s).
At 50, it is time to begin saving aggressively. My recommendation is to keep just enough money in your checking account to handle your living expenses. Then, use direct deposits to funnel all the rest of your income into savings and investment accounts. Roll your retirement funds into an IRA and begin looking at moderate to conservative investment strategies. Chances are it won't be the great investments you pick that will determine your retirement future, but the losers you avoid! Good luck!
Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy
_________________________________________________________________________________
Study carefully also the four articles above
by Dr. Christian von Christophers, Ph.D., N.D., D.D., STAF, Inc.'s President
_________
- Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy - Avoid a bankruptcy -
STAF, Inc.'s editors decided to place the bankruptcy information close to the top as in these times, 2012, the information may be useful. This is a fresh article, reported by The NYT, and shows how to avoid wrong decisions in today's situation.
How fast can one get a mortgage after bankruptcy - after one (1) or two (2) years - even though the bankruptcy stays in the credit report 7 - 10 years. Important information.
In case you need further guidance, contact STAF, Inc.'s counselors. Our contact info in the home page.
Life After Bankruptcy
By VICKIE ELMER
Original New York Times article on the internet - view its graphics details (not here)
Click the green areas for further information
EVERY month tens of thousands of people file for federal bankruptcy protection, mostly to wipe out debts and start anew.
Many of these filers mistakenly think that it will be many years before they can obtain a mortgage or refinance an existing home loan, if they ever can — perhaps because notice of a bankruptcy filing typically stays on a credit report for 7 to 10 years. In reality, they could become eligible in as little as one year, as long as they work diligently to improve their financial picture.
Mortgages guaranteed by the Federal Housing Administration are permitted one year after a consumer exits a Chapter 13 bankruptcy reorganization, which requires a repayment plan that is often a fraction of what is owed, and two years after the more common Chapter 7 liquidation, which discharges most or all debts. Conventional mortgage guidelines from Fannie Mae and Freddie Mac, meanwhile, call for a wait of two to four years.
“There’s a lot of other things that go into your ability to get approved” for a mortgage after a bankruptcy, said John Walsh, the president of Total Mortgage, a direct lender based in Milford, Conn.
The most important point, he and other industry experts say, is that consumers re-establish their credit and show that they can manage it responsibly. They can do this by paying rent and utility bills on time, or perhaps by obtaining a secured credit card, according to Mr. Walsh.
If a bankruptcy filing was the result of a one-time occurrence, like the death of a spouse, divorce or illness, the waiting period to apply for a mortgage may be reduced. Lenders will often want borrowers to write a hardship letter explaining their situation, backed by documentation like hospital bills or a court-approved divorce settlement. If the person has paid back 85 to 95 percent of his debts during the bankruptcy process, he will need to mention that in the letter as well, said Bruce Feinstein, a bankruptcy lawyer in Richmond Hill, Queens.
But examples of shortening the waiting period through hardship letters are “few and far between, and tough to get,” Mr. Walsh said.
Mr. Feinstein says he has seen a few clients qualify for a mortgage only two years after filing for Chapter 7, though generally borrowers can obtain a loan quicker after a Chapter 13 reorganization, because of the partial repayment of debts, he said.
As Mr. Walsh noted, “Chapter 13 is a little more responsible” way to go from the lenders’ perspective, so lender guidelines are a bit more lenient.
Almost 70 percent of personal bankruptcies are filed under Chapter 7, according to the American Bankruptcy Institute, a research organization. The institute data noted that last year there were 1.362 million personal bankruptcy filings nationwide, down from 1.53 million in 2010, and closer to the norm over the last 15 years. At the end of the first quarter of this year there were 311,975 filings, which is 5 percent less than the first quarter of 2011.
Rebuilding credit after a personal bankruptcy will take some work. Mr. Feinstein suggests that individuals maintain or take out one or two credit cards and routinely use them. “If the payment’s due on the first, make sure it’s paid by the 25th” of the previous month, he said.
A personal bankruptcy filing will have a larger impact on a credit score than any other credit issue, according to a July report by VantageScore, which provides credit scores to lenders. Filing for bankruptcy protection will reduce a credit score by 200 to 350 or more points, it said, compared with a decline of 80 to 170 points for a foreclosure. VantageScore’s scores range from 501 to 990.
For the larger rival FICO, bankruptcy could cut a credit score by 130 to 240 points.
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Source:
The NYT, Sunday 9/16/12
This article is for your private use, only
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I Was a Welfare Mother
Two articles next showing how the government aid in tough times builds life and is nothing to be ashamed of.
Both articles prove in a positive manner that social service help is helping our whole nation because it gives time to the
help-getting individual or family to build up his/her/their life, feed the children to avoid sicknesses (saves in our nation's sickness care costs) - a positive article worth of your time to study. When in a proper use, the social service help will help the temporarily suffering individuals become good taxpayers.
This article is in the tab: finances - this is about how to finance a family's life when the times a tough.
After this 2 articles is a related article from another country, India - it shows that the government's help is the only real
help capable of solving the suffering children's situation leading to a better future. It is a principle - The U.S. is not India and India is not U.S. The same principle is valid in every country : government's help is needed - philanthropy is not enough.
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In STAF, Inc.'s scale of 0-10 this is -9-
for its eye-opening positive information clarifying much misinformation
I Was a Welfare Mother
Opinion By LARKIN WARREN
Bethel, Conn.
Published: September 2012
I WAS a welfare mother, “dependent upon government,” as Mitt Romney so bluntly put it in a video that has gone viral. “My job is not to worry about those people,” he said. “I’ll never convince them that they should take personal responsibility and care for their lives.” But for me, applying for government benefits was exactly that — a way of taking responsibility for myself and my son during a difficult time in our lives. Those resources kept us going for four years. Anyone waiting for me to apologize shouldn’t hold his breath.
Almost 40 years ago, working two jobs, with an ex-husband who was doing little to help, I came home late one night to my parents’ house, where I was living at the time. My mother was sitting at the card table, furiously filling out forms. It was my application for readmission to college, and she’d done nearly everything. She said she’d write the essay, too, if I wouldn’t. You have to get back on track, she told me. I sat down with her and began writing.
And so, eight years after I’d flunked out, gotten pregnant, eloped, had a child, divorced and then fumbled my first few do-overs of jobs and relationships, I was readmitted to the University of New Hampshire as a full-time undergraduate. I received a Basic Educational Opportunity Grant, a work-study grant and the first in a series of college loans. I found an apartment — subsidized, Section 8 — about two miles from campus. Within days, I met other single-mom students. We’d each arrived there by a different route, some falling out of the middle class, others fighting to get up into it, but we shared the same goal: to make a better future.
By the end of the first semester, I knew that my savings and work-study earnings wouldn’t be enough. My parents could help a little, but at that point they had big life problems of their own. If I dropped to a part-time schedule, I’d lose my work-study job and grants; if I dropped out, I’d be back to zero, with student-loan debt. That’s when a friend suggested food stamps and A.F.D.C. — Aid to Families With Dependent Children.
Me, a welfare mother? I’d been earning paychecks since the seventh grade. My parents were Great Depression children, both ex-Marines. They’d always taught self-reliance. And I had grown up hearing that anyone “on the dole” was scum. But my friend pointed out I was below the poverty line and sliding. I had a small child. Tuition was due.
So I went to my dad. He listened, did the calculations with me, and finally said: “I never used the G.I. Bill. I wish I had. Go ahead, do this.” My mother had already voted. “Do not quit. Do. Not.”
My initial allotment (which edged up slightly over the next three years) was a little more than $250 a month. Rent was around $150. We qualified for $75 in food stamps, which couldn’t be used for toilet paper, bathroom cleanser, Band-Aids, tampons, soap, shampoo, aspirin, toothpaste or, of course, the phone bill, or gas, insurance or snow tires for the car.
At the end of the day, my son and I came home to my homework, his homework, leftover spaghetti, generic food in dusty white boxes. The mac-and-cheese in particular looked like nuclear waste and tasted like feet. “Let’s have scrambled eggs again!” chirped my game kid. We always ran out of food and supplies before we ran out of month. There were nights I was so blind from books and deadlines and worry that I put my head on my desk and wept while my boy slept his boy dreams. I hoped he didn’t hear me, but of course he did.
The college-loan folks knew about the work-study grants, the welfare office knew about the college loans, and each application form was a sworn form, my signature attesting to the truth of the numbers. Still, I constantly worried that I’d lose our benefits. More than once, the state sent “inspectors” — a knock at the door, someone insisting he had a right to inspect the premises. One inspector, fixating on my closet, fingered a navy blue Brooks Brothers blazer that I wore to work. “I’d be interested to know how you can afford this,” she said.
It was from a yard sale. “Take your hands off my clothing,” I said. My benefits were promptly suspended pending status clarification. I had to borrow from friends for food and rent, not to mention toilet paper.
That’s not to say we didn’t have angels: work-study supervisors, academic advisers and a social worker assigned to “nontraditional” students, which, in addition to women like me, increasingly included military veterans and older people coming in to retrofit their careers. Faculty members were used to panicked students whose kids had the flu during finals. Every semester, I had at least one incomplete course, with petitions for extensions. One literature professor, seeing my desperation, gave me a copy of “The Awakening” by Kate Chopin to read and critique for extra credit. “But it’s not a primer,” he cautioned. (Spoiler: she walks into the ocean and dies.)
With help, I graduated. That day, over the heads of the crowd, my 11-year-old’s voice rang out like an All Clear: “Yay, Mom!” Two weeks later, I was off welfare and in an administrative job in the English department. Part of my work included advising other nontraditional students, guiding them through the same maze I’d just completed, one course, one semester, at a time.
In the years since, the programs that helped me have changed. In the ’80s, the Basic Educational Opportunity Grant became the Pell Grant (which Paul D. Ryan’s budget would cut). In the ’90s, A.F.D.C. was replaced by block grants to the states, a program calledTemporary Assistance for Needy Families. States can and do divert that money for other programs, and to plug holes in the state budget. And a single mother applying for aid today would face time limits and eligibility requirements that I did not. Thanks to budget cuts, she would also have a smaller base of the invaluable human resources — social workers, faculty members, university facilities — that were so important to me.
Since then, I’ve remarried, co-written books, worked as a magazine editor and finally paid off my college loans. My husband and I have paid big taxes and raised a hard-working son who pays a chunk of change as well. We pay for sidewalks, streetlights, sanitation trucks, the military (we have three nephews in uniform, two deployed), police and fire departments, open emergency rooms, teachers, bus drivers, museums, libraries and campuses where people’s lives are saved, enriched and raised up every day. My country gave me the chance to rebuild my life — paying my tax tab is the only thing it’s asked of me in return.
I was not an exception in that little Section 8 neighborhood. Among those welfare moms were future teachers, nurses, scientists, business owners, health and safety advocates. We never believed we were “victims” or felt “entitled”; if anything, we felt determined. Wouldn’t any decent person throw a rope to a drowning person? Wouldn’t any drowning person take it?
Judge-and-punish-the-poor is not a demonstration of American values. It is, simply, mean. My parents saved me and then — on the dole, in the classroom or crying deep in the night, in love with a little boy who needed everything I could give him — I learned to save myself. I do not apologize. I was not ashamed then; I am not ashamed now. I was, and will always be, profoundly grateful.
A writer who was the co-author of Carissa Phelps’s “Runaway Girl: Escaping Life on the Streets, One Helping Hand at a Time,” and is at work on her own memoir.
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Source:
NYT
September 23, 2012
Opinion by LARKIN WARREN
Bethel, Conn.
MORE IN OPINION (1 OF 23 ARTICLES) Op-Ed Contributor: When Growth Outpaces Happiness
Read More »
Next below another article on a similar topic - both are eye-opening to the facts
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Next above another article on a similar topic - both are eye-opening to the facts
A reality check about the 47 percent
STAF, Inc.'s editors will keep this article & the next article above available for years to come - both eye-openers
In case you do not know what "the 47 percent" refers to: 2012 Presidential Candidate (GOP) Mr. Mitt Romney
used it to point out that 47 % are somehow linked to the dependence on the U.S. government's help to stay functional.
A reality check about the 47 percent
This article is in the tab: finances - this is about how to finance a family's life when the times a tough
September 26, 2012
What Mitt Romney misses when he lumps 47 percent of Americans into a category he doesn’t have to “worry about” is that any day of the week, the phone can ring with a call that throws a family into circumstances unimaginable minutes before.
My stepfather, who my mother met while he was an accountant at an aerospace company after she moved to Los Angeles, got such a call when I was finishing the fifth grade. His father had been gunned down in the doorway of the small grocery store he owned on Lenox Ave. and 119th Street in Harlem. After the tears were wiped away, it was clear my stepdad’s mother needed help managing the market, next-door laundromat and apartment buildings her husband left behind. A few months later, my mother, myself and my year-old brother followed him to the Bronx where we settled into a third-floor walk-up.
We were thrown into a difficult situation and everyone pulled together to try to make it work. My stepfather’s mother, a tough woman who had every right to curl up into a ball and be a victim, worked the cash register every day in the market just a few feet from where her husband was found dead. Many nights, at 10 and 11 years old, I trekked to Harlem with Mom after school to help empty coins from the washing machines and dryers and roll quarters for the bank deposit the next day after doing homework at a small table in the back. On weekends, I swept and mopped the floors of the apartment building above to help out.
Besides the obvious physical danger, operating businesses in Harlem in the early 1980s also was financially uncertain and sometimes there wasn’t enough money. My mother didn’t believe government should care for her family, but she needed help. Although she worked as a nurse before the move, getting a job in a hospital had to wait while she took care of her kids, helped collect rents from the apartment buildings and took evening classes some nights to update her license to work in New York. Soon she was pregnant again and, to help feed her family, applied for women, infants and children food benefits.
Surely, among the 47 percent of Americans that Romney lumped into the victim or dependent category in his secretly taped remarks are parents of kids like me. There were days I stood in line at the market to buy government approved items such as milk, eggs, cheese, peanut butter or dry cereal. I wasn’t the only person on public assistance in our neighborhood, but I felt like every eye in the store was watching me when I sheepishly handed the cashier the WIC coupons. While other kids wore designer sport shirts with polo player or tiger logos, I sat up at night with a needle and scissors picking at the threads of undesirable off-brand logos to remove telltale signs that my shirts were bought at discount stores. Once, after the hot water was cut off, the skin on my right arm bubbled and peeled away after I tripped while carrying a pot of boiling water from the kitchen to warm a bath.
Despite Romney’s characterization, we didn’t feel entitled. Instead, we were determined to have a better life. Mom went back to work only two weeks after my sister was born to earn extra money and get off assistance, and I studied hard in school. Luckily, teachers recommended me for accelerated academic programs, including one at the prestigious Fieldston School every Saturday, which helped me get admitted to two of the best public high schools in the country — Bronx Science and Cass Tech in Detroit, where I moved to live with my father after eighth grade.
Millions of kids in America, living in 47 percent families with parents working just as hard to hold things together as mine did don’t get those kinds of breaks. Some make bad decisions that land them in the criminal justice system or on a Ferris wheel of mediocre jobs they hop in and out of. These kids need skills and opportunities, not scorn and derision. Mitt Romney should think about these families as he prepares for the presidential debates. They deserve a president who shows 100 percent of American children the kind of focus, understanding and creativity he showed American companies throughout his business career.
By Jamal Simmons
Jamal Simmons is a political commentator who was a political appointee in the Clinton administration and campaign adviser to Democrats including Al Gore and Barack Obama.
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Source:
© 2012 POLITICO LLC
This is for your private use, only
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This article is showing how the government's help is needed to solve poverty challenges
In the same manner, in the U.S. our government's temporary assistance will give the sufferers a new life.
The person getting government financial assistance becomes later a taxpayer - we all win.
September 15, 2012
For India’s Children, Philanthropy Isn’t Enough
By SONIA FALEIROMEENA
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DEVI is only 10 years old, but she’s the head of her household. She cooks, cleans and takes care of her 11-year-old brother, Sunil, while a 14-year-old brother, Anil, works at a faraway brick kiln in a neighboring state. The three have been orphans since their mother died of starvation three years ago. They have an aunt in their village, but the most she’s ever done is send over food to their mud hut.
In June, I wrote an article that appeared in The International Herald Tribune, documenting this family’s daily life in the impoverished eastern state of Bihar. E-mails started to pour in the next morning. One was from a record producer in Los Angeles. He grew up in modest circumstances, and told me that he saw himself in Meena. He offered to pay all three children’s education and living expenses until they turned 18, an amount equal to $1,200 per year.
It was an opportunity of a lifetime. Why, then, did the children’s relatives refuse to let them take it?
Unlike the other scruffy village children, Meena made an effort to stay presentable. She was soft-spoken and polite; she slicked down her bob with spit and kept her face clean. Perhaps this adult inclination was a natural extension of her adult responsibilities.
I’d been introduced to Meena by Mokhtarul Haque, an activist with India’s Save the Childhood Movement, known by its Hindi abbreviation B.B.A. The B.B.A. has rescued and rehabilitated trafficked children for over 25 years. Mr. Haque had met with Meena’s only surviving relative, her aunt Savitri Devi Manjhi, soon after Meena’s mother died in 2009, and Mrs. Manjhi had then urged Mr. Haque to place the children in a government foster home. In June, following the record producer’s proposal, Mr. Haque offered the children spots in a B.B.A. school.
The B.B.A., like other nonprofit groups, built its own schools partly in response to the sorry state of government foster homes, where corporal punishment is routine and abuse is common. I’ve met many children who attempted to run away, preferring to take their chances on the street.
But after initially accepting Mr. Haque’s offer, the Manjhis quickly changed their minds, insisting they were capable of looking after the children.
Never mind that Meena and Sunil were perpetually hungry and slept without even a piece of cloth to separate their bodies from the hut’s dirt floor. Or that the Manjhis trafficked him at age 11 into a dangerous brick kiln soon after his mother died. (In India, children under 14 are permitted to work, but not in hazardous environments. An amendment to India’s child labor laws, proposed in August, would ban children under 14 from working anywhere.)
The Manjhis are the product of intergenerational poverty and caste-based marginalization. Like their parents, they’re poor, illiterate and seasonally employed. They don’t think beyond their daily survival. They’re also aware that no matter how bad life gets for them, public assistance is unlikely, and change is an impossible dream. They know they have no one to depend on but themselves and their younger kin. They may have empathy for their niece and nephews, but they can’t afford to act on it.
IN a society with few effective regulatory institutions, there’s neither an incentive to take responsibility nor repercussions for not doing so. People don’t do the right thing because it’s easy not to, and there’s no reward for doing it. Villagers are preoccupied with their own daily survival. And it’s easier for bureaucrats to do nothing.
A lack of accountability not only kills motivation, it encourages outright malfeasance. In India’s poorest districts, easily bribed police officers enable trafficking. India, according to Unicef, now has more child laborers under 14 than any other country.
What’s most galling about this corrupt behavior is the fact that the current government is making an unprecedented effort to confront poverty. In 2011, according to a World Bank report, India spent over 2 percent of its gross domestic product on poverty alleviation. Over the past 11 years, India’s government has sought to provide free midday school meals, a guarantee of 100 days of employment annually to the rural poor and free primary education. But endemic corruption, from the very top down to the ground level, prevents them from being implemented effectively. A lack of transparency and a leakage of subsidies to the nonpoor means that poverty isn’t falling nearly as fast as it should be.
The free hot meal is the reason Meena goes to school. But her teachers routinely skip school, three days a week. When teachers don’t come, the school stays shut, and there’s no meal. A well-funded, well-intentioned program created to educate and feed poor children fails on both counts: Meena not only learns nothing, she also goes hungry.
But it’s the Manjhis’ choices that have had the greatest impact on Meena. And these, too, were influenced by government failings. The low-caste residents of Meena’s village work the land of their upper-caste neighbors, who pay them in grain. To earn cash, entire families find supplemental work in one of the state’s many brick kilns, but they don’t earn enough to feed themselves adequately.
The government’s Public Distribution System, which offers subsidized food and fuel, should cover them. But in 2011 less than 10 percent of the grain intended for Bihar’s poor actually reached them. The rest was sold on the black market, bought by wealthier people with fake food ration cards or, worst of all, sold at a markup to the very people meant to receive discounted grain.
Government inefficiency has left the Manjhis poor and hungry, so they have taken control of 14-year-old Anil’s earnings. His salary of less than a $1 a day is paltry even by Indian standards. But for the Manjhis, it was still too much to risk losing. And so they refused to let Anil and his siblings leave for school. Unless their economic lot improves, the Manjhis will keep sending him to work at the brick kiln. Sunil will most likely soon join him.
A worse fate awaits Meena. Traffickers masquerading as eligible grooms routinely trick poor families into parting with their daughters, often before puberty. The families succumb because there’s no demand for dowry or wedding expenses. New brides are whisked away and sold into bonded labor or to brothels, where they’re raped into submission. They almost never return home.
THERE are thousands of Meenas in Bihar and millions of Meenas in India. Individuals, nonprofits and charities can’t be expected to step in to save them all from tragedy.
India’s deafening aspirations to global power will never be realized if the potential of these millions of children continues to be squandered.
The government must move beyond merely developing ambitious policies — it must also ensure that these policies aren’t corrupted. There must be stern reprisals for graft and dereliction of duty. And it must be worthwhile for poor people to do the right thing; they should be rewarded for good behavior. Prosecution of child-labor traffickers and their henchmen must be accelerated. And India needs to overhaul its system of state-run foster homes so that children don’t avoid them out of fear.
Only if real change occurs at the top will those at the bottom accept a stake in their community’s future. As long as Mrs. Manjhi is hungry, she’ll do everything in her power to stay alive — including sending her younger relatives to work. But if she were to receive real support from the government, that wasn’t funneled away by corrupt middlemen, she would not need to send Anil to work, and she would be likely to resist the temptation to earn extra cash illegally, for fear of losing state benefits.
Meena and her brothers now have a firm offer to live at a good school. This should be their happy ending. But it isn’t. If a child who has so many people fighting on her behalf can’t be assured justice, the millions of other children with no such allies have little hope.
The good will of 1,000 record producers in Los Angeles won’t change that. Only the Indian government can.
Sonia Faleiro is the author of “Beautiful Thing: Inside the Secret World of Bombay’s Dance Bars.”
Source:
NYT
This article is for your private use, only
Click the green for further info
MORE IN OPINION (1 OF 19 ARTICLES) Op-Ed Contributor: Why the Beaver Should Thank the WolfRead More »
_____________________________________
In the same manner, in the U.S. our government's temporary assistance will give the sufferers a new life.
The person getting government financial assistance becomes later a taxpayer - we all win.
September 15, 2012
For India’s Children, Philanthropy Isn’t Enough
By SONIA FALEIROMEENA
Click the green for further info
DEVI is only 10 years old, but she’s the head of her household. She cooks, cleans and takes care of her 11-year-old brother, Sunil, while a 14-year-old brother, Anil, works at a faraway brick kiln in a neighboring state. The three have been orphans since their mother died of starvation three years ago. They have an aunt in their village, but the most she’s ever done is send over food to their mud hut.
In June, I wrote an article that appeared in The International Herald Tribune, documenting this family’s daily life in the impoverished eastern state of Bihar. E-mails started to pour in the next morning. One was from a record producer in Los Angeles. He grew up in modest circumstances, and told me that he saw himself in Meena. He offered to pay all three children’s education and living expenses until they turned 18, an amount equal to $1,200 per year.
It was an opportunity of a lifetime. Why, then, did the children’s relatives refuse to let them take it?
Unlike the other scruffy village children, Meena made an effort to stay presentable. She was soft-spoken and polite; she slicked down her bob with spit and kept her face clean. Perhaps this adult inclination was a natural extension of her adult responsibilities.
I’d been introduced to Meena by Mokhtarul Haque, an activist with India’s Save the Childhood Movement, known by its Hindi abbreviation B.B.A. The B.B.A. has rescued and rehabilitated trafficked children for over 25 years. Mr. Haque had met with Meena’s only surviving relative, her aunt Savitri Devi Manjhi, soon after Meena’s mother died in 2009, and Mrs. Manjhi had then urged Mr. Haque to place the children in a government foster home. In June, following the record producer’s proposal, Mr. Haque offered the children spots in a B.B.A. school.
The B.B.A., like other nonprofit groups, built its own schools partly in response to the sorry state of government foster homes, where corporal punishment is routine and abuse is common. I’ve met many children who attempted to run away, preferring to take their chances on the street.
But after initially accepting Mr. Haque’s offer, the Manjhis quickly changed their minds, insisting they were capable of looking after the children.
Never mind that Meena and Sunil were perpetually hungry and slept without even a piece of cloth to separate their bodies from the hut’s dirt floor. Or that the Manjhis trafficked him at age 11 into a dangerous brick kiln soon after his mother died. (In India, children under 14 are permitted to work, but not in hazardous environments. An amendment to India’s child labor laws, proposed in August, would ban children under 14 from working anywhere.)
The Manjhis are the product of intergenerational poverty and caste-based marginalization. Like their parents, they’re poor, illiterate and seasonally employed. They don’t think beyond their daily survival. They’re also aware that no matter how bad life gets for them, public assistance is unlikely, and change is an impossible dream. They know they have no one to depend on but themselves and their younger kin. They may have empathy for their niece and nephews, but they can’t afford to act on it.
IN a society with few effective regulatory institutions, there’s neither an incentive to take responsibility nor repercussions for not doing so. People don’t do the right thing because it’s easy not to, and there’s no reward for doing it. Villagers are preoccupied with their own daily survival. And it’s easier for bureaucrats to do nothing.
A lack of accountability not only kills motivation, it encourages outright malfeasance. In India’s poorest districts, easily bribed police officers enable trafficking. India, according to Unicef, now has more child laborers under 14 than any other country.
What’s most galling about this corrupt behavior is the fact that the current government is making an unprecedented effort to confront poverty. In 2011, according to a World Bank report, India spent over 2 percent of its gross domestic product on poverty alleviation. Over the past 11 years, India’s government has sought to provide free midday school meals, a guarantee of 100 days of employment annually to the rural poor and free primary education. But endemic corruption, from the very top down to the ground level, prevents them from being implemented effectively. A lack of transparency and a leakage of subsidies to the nonpoor means that poverty isn’t falling nearly as fast as it should be.
The free hot meal is the reason Meena goes to school. But her teachers routinely skip school, three days a week. When teachers don’t come, the school stays shut, and there’s no meal. A well-funded, well-intentioned program created to educate and feed poor children fails on both counts: Meena not only learns nothing, she also goes hungry.
But it’s the Manjhis’ choices that have had the greatest impact on Meena. And these, too, were influenced by government failings. The low-caste residents of Meena’s village work the land of their upper-caste neighbors, who pay them in grain. To earn cash, entire families find supplemental work in one of the state’s many brick kilns, but they don’t earn enough to feed themselves adequately.
The government’s Public Distribution System, which offers subsidized food and fuel, should cover them. But in 2011 less than 10 percent of the grain intended for Bihar’s poor actually reached them. The rest was sold on the black market, bought by wealthier people with fake food ration cards or, worst of all, sold at a markup to the very people meant to receive discounted grain.
Government inefficiency has left the Manjhis poor and hungry, so they have taken control of 14-year-old Anil’s earnings. His salary of less than a $1 a day is paltry even by Indian standards. But for the Manjhis, it was still too much to risk losing. And so they refused to let Anil and his siblings leave for school. Unless their economic lot improves, the Manjhis will keep sending him to work at the brick kiln. Sunil will most likely soon join him.
A worse fate awaits Meena. Traffickers masquerading as eligible grooms routinely trick poor families into parting with their daughters, often before puberty. The families succumb because there’s no demand for dowry or wedding expenses. New brides are whisked away and sold into bonded labor or to brothels, where they’re raped into submission. They almost never return home.
THERE are thousands of Meenas in Bihar and millions of Meenas in India. Individuals, nonprofits and charities can’t be expected to step in to save them all from tragedy.
India’s deafening aspirations to global power will never be realized if the potential of these millions of children continues to be squandered.
The government must move beyond merely developing ambitious policies — it must also ensure that these policies aren’t corrupted. There must be stern reprisals for graft and dereliction of duty. And it must be worthwhile for poor people to do the right thing; they should be rewarded for good behavior. Prosecution of child-labor traffickers and their henchmen must be accelerated. And India needs to overhaul its system of state-run foster homes so that children don’t avoid them out of fear.
Only if real change occurs at the top will those at the bottom accept a stake in their community’s future. As long as Mrs. Manjhi is hungry, she’ll do everything in her power to stay alive — including sending her younger relatives to work. But if she were to receive real support from the government, that wasn’t funneled away by corrupt middlemen, she would not need to send Anil to work, and she would be likely to resist the temptation to earn extra cash illegally, for fear of losing state benefits.
Meena and her brothers now have a firm offer to live at a good school. This should be their happy ending. But it isn’t. If a child who has so many people fighting on her behalf can’t be assured justice, the millions of other children with no such allies have little hope.
The good will of 1,000 record producers in Los Angeles won’t change that. Only the Indian government can.
Sonia Faleiro is the author of “Beautiful Thing: Inside the Secret World of Bombay’s Dance Bars.”
Source:
NYT
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MORE IN OPINION (1 OF 19 ARTICLES) Op-Ed Contributor: Why the Beaver Should Thank the WolfRead More »
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8 Things Not to Keep in Your Wallet
STAF, Inc.'s hint to avoid being victimized by a robber:
Keep 2 wallets: One "fake" - it has a few dollars, a few old receipts and old documents (not revealing any important ID information). If a robber demands your wallet, give the "fake" one.
When the robber sees that it has some money & documents, he/she, most likely, will run away fast.
You are safe and your real wallet is safe also. Never keep your wallet(s) visible, e.g. in your pants back pocket. Safer is in your jacket's inside pocket or any other place not visible.
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8 Things Not to Keep in Your Wallet
Source: Kiplinger
By Emily Inverso
That overstuffed wallet of yours can’t be comfortable to sit on. It’s probably even too clunky to lug around in a purse, too.
And with every new bank slip that bulges from the seams, your personal information is getting less and less safe. With just your name and Social Security number, identity thieves can open new credit accounts and make costly purchases in your name. If they can get their hands on (and doctor) a government-issued photo ID, they can do even more damage, such as opening new bank accounts. These days, con artists are even profiting from tax-return fraud and health-care fraud, all with stolen IDs.
[More from Kiplinger: How to Protect Your Identity, Finances If You Lose Your Phone]
We talked with consumer-protection advocates to identify the eight things you should purge from your wallet immediately to limit your risk in case your wallet is lost or stolen.
And when you’re finished removing your wallet’s biggest information leaks, take a moment to photocopy everything you’ve left inside, front and back. Stash the copies in a secure location at home or in a safe-deposit box. The last thing you want to be wondering as you're reporting a stolen wallet is, “What exactly did I have in there?”
1. Your Social Security Card...
...and anything with the number on it.
Your nine-digit Social Security number is all a savvy ID thief needs to open new credit card accounts or loans in your name. ID-theft experts say your Social Security card is the absolute worst item to carry around.
Once you’ve removed your card, look for anything else that may contain your SSN. As of December 2005, states can no longer display your SSN on newly issued driver's licenses, state ID cards and motor-vehicle registrations. If you still have an older photo ID, request a new card prior to the expiration date. There might be an additional fee, but it's worth it to protect your identity.
Retirees, pull out your Medicare card, too, because it has your SSN on it. Instead: Photocopy your Medicare card (front and back), black out the last four digits of your SSN on the copy, and carry it with you instead of your real card.
[More from Kiplinger: The 5 Money Smartest (and 5 Money Dumbest) States]
2. Password Cheat Sheet
The average American uses at least seven different passwords (and probably should use even more to avoid repeating them on multiple sites/accounts). Ideally, each of those passwords should be a unique combination of letters, numbers, and symbols, and you should change them regularly. Is it any wonder we need help keeping track of them all?
However, carrying your ATM card’s PIN number and a collection of passwords (especially those for online access to banking and investment accounts) on a scrap of paper in your wallet is a prescription for financial disaster.
Instead: If you have to keep passwords jotted down somewhere, keep them in a locked box in your house. Or consider an encrypted mobile app, such as SplashID ($9.95; Android, Blackberry, iPad, iPhone), Password Safe Pro (free, Android only) or Pocket (free, Android only).
[Related: Common Money Traps to Avoid]
3. Spare Keys
A lost wallet containing your home address (likely found on your driver's license or other items) and a spare key is an invitation for burglars to do far more harm than just opening a credit card in your name. Don't put your property and family at risk. (And even if your home isn't robbed after losing a spare key, you'll likely spend $100+ in locksmith fees to change the locks for peace of mind.)
Instead: Keep your spare keys with a trusted relative or friend. If you’re ever locked out, it may take a little bit longer to retrieve your backup key, but that’s a relatively minor inconvenience.
4. Checks
Blank checks are an obvious risk—an easy way for thieves to quickly withdraw money from your checking account. But even a lost check you've already filled out can lead to financial loss—perhaps long after you've canceled and forgotten about it. With the routing and account numbers on your check, anybody could electronically transfer funds from your account.
Instead: Only carry paper checks when you will absolutely need them. And leave the checkbook at home, bringing only the exact amount of checks you anticipate needing that day.
[More from Kiplinger: 10 Riskiest Places to Give Your Social Security Number]
5. Passport
A government-issued photo ID such as a passport opens up a world of possibilities for an ID thief. “Theives would love to get (ahold of) this,” says Nikki Junker, a victim adviser at the Identity Theft Resource Center. “You could use it for anything”—including traveling in your name, opening bank accounts or even getting a new copy of your Social Security card.
Instead: Carry only your driver’s license or other personal ID while traveling inside the United States. When you're overseas, photocopy your passport and leave the original in a hotel lockbox.
6. Multiple Credit Cards
Although you shouldn’t ditch credit cards altogether (those who regularly carry a card tend to have higher credit scores than those who don’t), consider a lighter load. After all, the more cards you carry, the more you’ll have to cancel if your wallet is lost or stolen. We recommend carrying a single card for unplanned or emergency purchases, plus perhaps an additional rewards card on days when you expect to buy gas or groceries.
Also: Maintain a list, someplace other than your wallet, with all the cancellation numbers for your credit cards. They are typically listed on the back of your cards, but that won’t do you much good when your wallet is nowhere to be found.
[Related: How Hackers Attack]
7. Birth Certificate
The birth certificate itself won’t get ID thieves very far. However, “birth certificates could be used in correlation with other types of fraudulent IDs,” Junker says. “Once you have those components, you can do the same things you could with a passport or a Social Security card.”
Be especially cautious on occasions—such as your mortgage closing—when you may need to present your birth certificate, Social Security card and other important personal documents at once. “Everything’s together,” Junker notes, “and someone can just come along and steal them all. Take the time to take them home, and don’t leave them in your car.”
8. A Stack of Receipts
Beginning in December 2003, businesses may not print anything containing your credit or debit card’s expiration date or more than the last five digits of your credit card number. Still, a crafty ID thief can use the limited credit card info and merchant information on receipts to phish for your remaining numbers.
Instead: Clear those receipts out each night, shredding the ones you don’t need. But for receipts you save, keep them safe by going digital. Apps such as Lemon and Shoeboxed create and categorize digital copies of your receipts and business cards.
More from Kiplinger:
___________________________________________
___________________________________________________________________
The articles next below will provide valuable guidance for a successful job finding
(Copyrighted material - for your personal use, only)
After the job related articles you'll find multitudes of valuable articles for other financial topics
The articles are listed as their own categories = similar finance areas are in each group
___________________________________________________________________
The articles next below will provide valuable guidance for a successful job finding
(Copyrighted material - for your personal use, only)
After the job related articles you'll find multitudes of valuable articles for other financial topics
The articles are listed as their own categories = similar finance areas are in each group
___________________________________________________________________
August 29, 2012
Be More Productive. Take Time Off
By JASON FRIED - a co-founder and CEO of 37signals, a software company
IN the Midwest we’re all very aware of seasons and seasonal change. The cold, the warm, the wet, the dry, the hot — we have it all every year. Some seasons are more welcome than others, but they’re all good about one thing: change.
Change is important. When we were growing up, we got summers off from school. Summer vacation was change. It was something to look forward to. A few months of something different really meant a lot.
We grow out of a lot as we grow up. One of the most unfortunate things we leave behind is a regular dose of change. Nowhere is this more evident than at work.
Work in February is the same as work in May. June’s the same as October. And it would be hard to tell August from April.
Yes, some businesses are more seasonal than others, but ultimately the stuff we do at work isn’t that much different — it’s just busier some times than others. That isn’t change, it’s just more volume.
I wanted to do something about this. So, at 37signals, the software company I’ve run for the past 13 years, we take inspiration from the seasons and build change into our work schedule.
For example, from May through October, we switch to a four-day workweek. And not 40 hours crammed into four days, but 32 hours comfortably fit into four days. We don’t work the same amount of time, we work less.
Most staff workers take Fridays off, but some choose a different day. Nearly all of us enjoy three-day weekends. Work ends Thursday, the weekend starts Friday, and work starts back up on Monday.
The benefits of a six-month schedule with three-day weekends are obvious. But there’s one surprising effect of the changed schedule: better work gets done in four days than in five.
When there’s less time to work, you waste less time. When you have a compressed workweek, you tend to focus on what’s important. Constraining time encourages quality time.
At 37signals there’s another thing we do to celebrate the seasons: we cover the cost of a weekly community-supported agriculture share for each employee. We enjoy this benefit year-round, but fresh fruit and produce really glisten in the summer months. It’s a simple way to celebrate change.
In the spirit of continual change, this summer we tried something new. We decided to give everyone the month of June to work on whatever they wanted. It wasn’t vacation, but it was vacation from whatever work was already scheduled. We invited everyone to shelve their nonessential work and to use the time to explore their own ideas.
People worked independently or joined up with other employees on team projects. The only rule was: explore, see if there are ways to make our existing products better, or come up with a new product idea, create a new business model, or do whatever is of most interest.
Then, in July, we asked each person to share, with the rest of the staff, whatever idea he or she came up with, on a day we set aside as “Pitchday.”
The June-on-your-own experiment led to the greatest burst of creativity I’ve seen from our 34-member staff. It was fun, and it was a big morale booster. It was also ultraproductive. So much so that we’ll likely start repeating the month-off project a few times a year.
Are you thinking of introducing change to your business or work life? Try following the seasons. There are few things that are as regular and predictable, yet so fresh and different.
Jason Fried is a co-founder and C.E.O. of 37signals, a software company.
Source:
NYT
This is for your private use, only
_________________________________
Be More Productive. Take Time Off
By JASON FRIED - a co-founder and CEO of 37signals, a software company
IN the Midwest we’re all very aware of seasons and seasonal change. The cold, the warm, the wet, the dry, the hot — we have it all every year. Some seasons are more welcome than others, but they’re all good about one thing: change.
Change is important. When we were growing up, we got summers off from school. Summer vacation was change. It was something to look forward to. A few months of something different really meant a lot.
We grow out of a lot as we grow up. One of the most unfortunate things we leave behind is a regular dose of change. Nowhere is this more evident than at work.
Work in February is the same as work in May. June’s the same as October. And it would be hard to tell August from April.
Yes, some businesses are more seasonal than others, but ultimately the stuff we do at work isn’t that much different — it’s just busier some times than others. That isn’t change, it’s just more volume.
I wanted to do something about this. So, at 37signals, the software company I’ve run for the past 13 years, we take inspiration from the seasons and build change into our work schedule.
For example, from May through October, we switch to a four-day workweek. And not 40 hours crammed into four days, but 32 hours comfortably fit into four days. We don’t work the same amount of time, we work less.
Most staff workers take Fridays off, but some choose a different day. Nearly all of us enjoy three-day weekends. Work ends Thursday, the weekend starts Friday, and work starts back up on Monday.
The benefits of a six-month schedule with three-day weekends are obvious. But there’s one surprising effect of the changed schedule: better work gets done in four days than in five.
When there’s less time to work, you waste less time. When you have a compressed workweek, you tend to focus on what’s important. Constraining time encourages quality time.
At 37signals there’s another thing we do to celebrate the seasons: we cover the cost of a weekly community-supported agriculture share for each employee. We enjoy this benefit year-round, but fresh fruit and produce really glisten in the summer months. It’s a simple way to celebrate change.
In the spirit of continual change, this summer we tried something new. We decided to give everyone the month of June to work on whatever they wanted. It wasn’t vacation, but it was vacation from whatever work was already scheduled. We invited everyone to shelve their nonessential work and to use the time to explore their own ideas.
People worked independently or joined up with other employees on team projects. The only rule was: explore, see if there are ways to make our existing products better, or come up with a new product idea, create a new business model, or do whatever is of most interest.
Then, in July, we asked each person to share, with the rest of the staff, whatever idea he or she came up with, on a day we set aside as “Pitchday.”
The June-on-your-own experiment led to the greatest burst of creativity I’ve seen from our 34-member staff. It was fun, and it was a big morale booster. It was also ultraproductive. So much so that we’ll likely start repeating the month-off project a few times a year.
Are you thinking of introducing change to your business or work life? Try following the seasons. There are few things that are as regular and predictable, yet so fresh and different.
Jason Fried is a co-founder and C.E.O. of 37signals, a software company.
Source:
NYT
This is for your private use, only
_________________________________
To Stay on Schedule, Take a Break
Click the colored areas for further information
WANT to be more productive? Keep your nose to the grindstone, or your fingers on the keyboard and your eyes on the screen. Because the more time you put in, the more you’ll get done, right?
Wrong. A growing body of evidence shows that taking regular breaks from mental tasks improves productivity and creativity — and that skipping breaks can lead to stress and exhaustion.
I think I’ll go to the gym now.
Mental concentration is similar to a muscle, says John P. Trougakos, an assistant management professor at the University of Toronto Scarborough and the Rotman School of Management. It becomes fatigued after sustained use and needs a rest period before it can recover, he explains — much as a weight lifter needs rest before doing a second round of repetitions at the gym.
Breaks are great. But I feel guilty taking too many of them.
Breaks can induce guilt because they’re “this little oasis of personal time that we get while we’re selling ourselves to someone else,” Professor Trougakos says. But that’s just the point.
Employees generally need to detach from their work and their work space to recharge their internal resources, he says. Options include walking, reading a book in another room or taking the all-important lunch break, which provides both nutritional and cognitive recharging.
It’s shortsighted not to take this time, or for managers to discourage employees from taking it, he says.
I mean, if you think .... uh, what I mean to say is ... oh no, my head feels a little fuzzy. I think I need to walk around the block.
Try to take a break before reaching the absolute bottom of your mental barrel, Professor Trougakos says. Symptoms of needing time to recharge include drifting and daydreaming.
After that walk, I’m “in the zone” and want to keep working. Do I really have to take another break anytime soon?
There is no need to take a break if you’re on a roll, Professor Trougakos advises. Working over an extended period can be invigorating — if it’s your choice. What drains your energy reserves most is forcing yourself to go on, he says.
Well, I don’t want to strain myself. What if I can’t do this topic justice? I need to get another cup of coffee. Oh look, someone brought in her baby. I need to update my Netflix queue. Maybe I’ll visit Fred on the seventh floor.
Don’t go too far with this, Professor Trougakos says. Too many breaks can abet procrastination. “Anything at an extreme level,” he says, “is not going to be good.”
Mostly, though, workers don’t take enough breaks — especially breaks involving movement, says James A. Levine, a professor of medicine at the Mayo Clinic. He has done studies showing that workers who remain sedentary throughout the day are impairing their health.
“The design of the human being is to be a mobile entity,” says Dr. Levine, who is also a proponent of standing, and even walking, while working and during meetings.
I want to make some more calls, but I’m so sleepy! I wish I could take a nap underneath my desk.
Dr. Levine is a supporter of nap breaks, but only if they are allowed by management, he says. Otherwise, nappers can be perceived as slackers — even though research shows that naps improve productivity.
When it comes to productivity and concentration, everyone has a different capacity. Management should encourage employees to devise individually effective break routines, Dr. Levine says. But he also has some general guidelines: try working in intense 15-minute bursts, punctuated by breaks, in cycles that are repeated throughout the day. This works because “the thought process is not designed to be continuous,” he says.
“Long hours don’t mean good work — highly efficient, productive work is more valuable,” Dr. Levine says, and frequent breaks promote that.
They also encourage those flashes of genius that employers value so much, he adds, noting that Albert Einstein is thought to haveconceived the theory of relativity while riding his bicycle.
When you come right down to it, Dr. Levine says, “the work should break up the break.”
Now that’s an idea I can get up and walk around the room to support.Source
Source:
NYT
By PHYLLIS KORKKI
This is for your personal use, only
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JOBS
Job Search,Winning, Impressive Resumes
How to get hired during or after the interview
How to negotiate your compensation, benefits & other details
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The most important words on your resumé
Hiring managers — and sometimes a computer — scan for for keywords when assessing your resumé. Find them
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HOW YOUR RESUME IS REALLY READ
THE MOST IMPORTANT WORDS IN YOUR RESUME
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The most important words on your resumé
Hiring managers — and sometimes a computer — scan for keywords when assessing your resumé. Find them
Related link: Click: Facelift for resumé
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THE MOST IMPORTANT WORDS IN YOUR RESUME
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The most important words on your resumé
Hiring managers — and sometimes a computer — scan for keywords when assessing your resumé. Find them
Related link: Click: Facelift for resumé
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Foreign Service Exam Careers with the Foreign Service
Click the green areas for further information
Foreign Service Test United States Foreign Service Officers serve in over 165 countries throughout the world, carrying out foreign policy and helping to maintain diplomatic relations. Their work involves administrative management, consular services, political and economic reporting and analysis, and public diplomacy.
If you are interested in a career as a diplomat, the first step is to take the Foreign Service Exam which is held throughout the year. The exam is held in cities throughout the United States, as well as at American Consulates and Embassies abroad.
Foreign Service Officer Application Process
Registration for the Foreign Service Office Test must be completed online. You will need to complete:
- An Application Form in which you provide factual background information including school and work history.
- A Personal Narrative in which you answer questions describing the knowledge, skills, and abilities you would bring to the Foreign Service.
Interested candidates can review the Foreign Service Exam Selection Process which explains in detail how the examination process works. The guide contains information regarding registration for the test, sample test and essay questions, testing for individuals with disabilities, and how to prepare for the test.
There are no educational requirements to take the exam; however, most candidates are widely-read or have taken a variety of college courses.
Eligibility requirements include:
- Between 20 and 59 years old on the date of examination. Appointment to the Foreign Service must take place before the candidate's 60th birthday
- A citizen of the United States
- Available for worldwide assignment, including Washington, D.C.
The State Department-sanctioned Study Guide helps candidates prepare for the exam. TheStudy Guide for the exam is available.
Foreign Service Officer Testing
The Foreign Service Officer Test will be offered quarterly. Test registration closes 48 hours prior to the opening of the test window, which is an eight day window, with multiple test times. Seats are available on a first-come, first-served basis at over 200 test centers.
The exam measures a candidate's knowledge and understanding of a range of subjects determined by a job analysis to be important to perform the tasks required of a Foreign Service officer. Test results will be forwarded to a Qualifications Evaluation Panel for review. Selected candidates will be invited to the Oral Assessment.
Foreign Service Oral Assessment
The Oral Assessment is conducted in Washington, D.C. and in various major cities around the United States. This day-long program seeks to determine whether you have the knowledge, skills, and abilities that are essential to the performance of Foreign Service work. It includes a group exercise, a structured interview, and a case management writing exercise.
After passing the oral assessment, the rigorous process continues. The next steps include a background investigation, a meeting with a Final Review Panel, medical clearance, then placement on a list of eligible hires you will be placed on a rank-ordered Register. Note that, depending on your place on the Register and the number of Foreign Service Officers needed, it is still possible that you may not receive an offer of employment. Finally, for those who are successful, it's a Foreign Service career with the US Department of State.
Suggested Reading
Foreign Service Exam
- Foreign Service Exam Registration
- Preparing for the Foreign Service Exam
- Foreign Service Exam Study Guide
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Secret Service Agent Career Profile
Salary, Education Requirements and Work Environment
of a Secret Service Agent
Anywhere the President of the United States goes, there they are. Watching, guarding, protecting. They are special agents, members of the United States Secret Service, one of the oldest federal law enforcement agencies in the country.Some of them are easy to spot, the men in black suits with solemn faces following every move the president makes. Others blend into the crowd, ready to take any action necessary to protect their charge. All of them are specially trained agents who have dedicated their careers in the service of their country.
Job Functions and Work Environment of Secret Service Agents
The United States Secret Service has a uniformed division as well as an investigative division. Special agents are members of the investigative division. Protective services is, of course, the best known and most popularized function of the U.S. Secret Service special agent. Believe it or not, though, protection is not the agency's first priority. In fact, the agency wasn't officially tasked with dignitary protection details until much later in its history.
When it was established in 1865, the primary mission of the Secret Service was to safeguard the currency of the United States by investigating instances of counterfeiting. Its role has expanded since then to include enforcement and investigations into all manner of fraud, including computer, securities, telecommunications and identity theft. In short, the Secret Service is tasked with protecting the payment systems and methods of the United Sates.
In 1901, the Secret Service received its dual function of protection. Currently, special agents are tasked with providing protective services for presidents, vice presidents, the president's immediate family, former presidents, and visiting dignitaries from other countries.
The job of a secret service special agent often includes:
- Conducting in-depth investigations
- Conducting extensive surveillance
- Route and event security planning
- Report writing
- Extensive and irregular travel
- Undercover work
Education And Skill Requirements for Secret Service Agents
To be considered for appointment as a secret service agent, candidates must be at least 21 years of age, be a U.S. citizen and possess a bachelor's degree. They must also have demonstrated high academic achievement by earning a GPA of between 3.0 and 4.0 or by being inducted into an honors society.
Absent a high GPA, candidates may also qualify if they have prior relevant experience conducting investigations, interviewing suspects and arresting people suspected of crimes. Experience working a police officer will meet this requirement in most cases.
Candidates for secret service jobs who hold a master's degree or with extensive relevant background experience may be hired at a higher pay grade, though the job functions remain the same upon appointment. Extensive relevant experience would include work as a detective or criminal investigator.
Of course, in addition to the minimum requirements, candidates must be able to qualify for top secret military clearance. As a result, an extensive background check is required, including an in-depth polygraph exam.
Upon appointment, candidates for special agent undergo and extensive 27-week training session, spending 10 week at the Federal Law Enforcement Training Center in Glynco, Georgia for the Basic Criminal Investigator Training Program and then 17 weeks in Washington, D.C. for the Special Agent Basic Training Program.
Job Growth and Salary Outlook
Though the secret service is not expected to add positions, jobs will become available through natural attrition and retirements, meaning that opportunities will continue to exist for qualified candidates.
Special agents are appointed at either the G7 or G9 pay level, and starting salary, including a 25 percent availability pay additive, will range from $54,000 to $94,000 annually depending on the initial duty station.
Is a Career as a Secret Service Special Agent Right for You?
The job of a secret service agent, at first glance, may seem exciting and interesting, and can provide a tremendous amount of diversity from day to day. It's not for everyone, though. Working as a special agent will require long hours in less-than-favorable conditions, and agents must make themselves available 24 hours a day, ready to go at a moments notice and prepared to be away from home for 30 days or longer at a stretch.
If you think you can handle working under these conditions, then the job of a secret service agent can be incredibly fun and rewarding. If you enjoy travel and spontaneity, and have a desire to serve, a United States Secret Service special agent may be the perfect career path for you.
- Want to know more? Learn all about the many great federal law enforcement careers available to people looking for jobs in criminal justice and criminology.
More Federal Law Enforcement Careers
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- The Secret Service - U.S. Government Info/Resources - Date: 02/27/98
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Training for today's jobs
Who’s Hiring?
$100K Jobs That Nobody Wants
Auto industry
Modern IT trained technicians make in 6 figures -
TR: Transportation - tractor-trailer drivers can make 100 K +/-
Click green for a video: Who’s hiring? $100K jobs that nobody wants
"The best social program is a good job," President Ronald Reagan once remarked. Those words ring especially true during times like today's, with high unemployment, modest hiring and government expenditures off the charts.
As much as the unemployment rate has been steadily declining for the better part of three years, it's still stuck near 8%, and tens of millions of Americans are either out of work, working less than they want, or worst of all, have simply given up looking. And yet, unbeknownst to many, the number of available jobs has been steadily rising, and now sits at a four-year high of nearly 3.2 million vacant positions.
While many companies are still, understandably, reluctant to hire, plenty of others are not and in fact are actively looking to add employees. In the attached video, the third part of our Who's Hiring? series, we've dug up a pair of industries that are not only hiring, but are actually struggling to find the right people.
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For example, President Obama's recent re-election campaign was, in no small part, built upon the comeback of the auto industry. The hiring has been brisk, and not just at the Big 3 manufacturers -- it's been even more pronounced at the supporting and surrounding businesses. Data from the Department of Labor project that the need will be above average for auto service technicians in the coming years, and that the auto industry is going to need to find, train and hire more than 100,000 new people who can get under the hood and keep our cars and trucks running smoothly.
No easy task to be sure, but it's one that General Motors (GM) and thousands of its dealers are trying to get ahead of. It's also why we traveled to Detroit for an inside look at the problem -- and the solution. Let's just say this: The job of an auto service tech today is as much about laptops as lube jobs, and the pay, benefits and opportunity to grow that come with it are very real.
At the same, we'll take you inside another core American industry that's fretting about its future staffing needs and trying new and different things to attract qualified workers. In this case, I'm talking about the trucking business and its need for an estimated 330,000 tractor-trailer drivers over the next 10 years. Our team traveled to Omaha, Neb., to meet with the president of Werner Enterprises (WERN) to see how one of the biggest players in the business is addressing this shortage of drivers. Not only are they training more, paying better and putting their people in an almost brand new fleet of trucks, they're also reinventing themselves in a way that allows their drivers to get home to their families a lot more often.
We all know that the job market is tough right now, but what you may not know is that many businesses are still adding to their headcount and looking to grow. So if you're out of work or know someone who is, and you find yourself wondering who's hiring, here's hoping the attached piece gets your wheels turning and moves you closer to your next new job.
More:
Who's Hiring? Inside a Critical Industry Hurting For Help
Who's Hiring? An Inside Out View of High Unemployment
Are We Regulating Ourselves Back Into Recession?
Anatomy of a Fragile Market: What to Make of Stocks
Fiscal Fallacy: Budget Cuts and Tax Increases Are Exactly What We Need
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Training for today's jobs
Who’s Hiring?
Inside a Critical Industry Hurting For Help
Health Care Industry
RN & Ultrasound technicians can make close to 6 figures -
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Of the many issues that will return to the Oval Office with President Obama for a second term, none will be more hotly debated and analyzed than our continued march toward fully implementing so-called Obamacare. Regardless of your stance on the matter, who could ever forget the rancor that surrounded passage of the original legislation two years ago, when lawmakers moved to give the Federal government direct control over an industry that makes up one-fifth of the U.S. economy.
As divisive as the new law is, rarely are its merits held up as an engine of job creation within the healthcare sector. And yet, the inclusion of tens of millions of formerly uninsured patients into our medical system is certain to have a huge impact on the hiring and practices of the nation's hospitals and healthcare providers.
Related: Obamacare Will Become Reality: What Does it Mean for You?
The industry already has an enormous and growing backlog of unfilled, and high paying jobs. According to the Bureau of Labor Statistics' monthly JOLTS (Job Openings and Labor Turnover Survey) report, of 3.2 million private job openings right now, nearly one-fifth of them (or 632,000 to be precise) can be found in the healthcare and social assistance category.
In Part 2 of Breakout's Who's Hiring? series we show why filling all those jobs is no easy task, as evidenced by the creative and innovative ways being used to recruit people. Take the Cleveland Clinic for example. This Ohio-based hospital is perennially ranked among the best medical facilities in the country, yet recently turned the local football stadium into a giant recruitment festival as part of an effort to hire 500 nurses.
While nurses and doctors might be the first professions to come to mind when you think about healthcare, there's actually a long and diverse list of opportunities to pick from, many of which are among the fastest growing (in terms of job creation) and best paying. From dental hygienists to cardiovascular technicians to lab assistance and occupational therapists, the demand for workers is high. Interestingly, so is the demand for support staff that keep the offices running and the bills humming, as giant institutions need to keep the lights on and their campuses safe.
And finally, you also have to consider the fact that the healthcare sector is recession proof and has been growing faster than the economy for a generation, and is expected to continue to do so, thanks to an aging population that is seeing the fastest growth among people 65 and older. Add it all up, and you can see why so many workers are needed, and that when it comes top jobs, the healthcare sector is hurting for help.
More: Click: Who's Hiring? An Inside Out View of High Unemployment
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November 17, 2012
About the same topic as the two above articles: training for today's jobs
- not all today's jobs are the same as in the past even though the job title may still be the same -
Because proper training ia lagging behind of gthe modern needs, we have a higher unemployment
If You’ve Got the Skills, She’s Got the Job
St. Paul
TRACI TAPANI is not your usual C.E.O. For the last 19 years, she and her sister have been co-presidents of Wyoming Machine, a sheet metal company they inherited from their father in Stacy, Minn. I met Tapani at a meeting convened by the Minnesota Department of Employment and Economic Development to discuss one of its biggest challenges today: finding the skilled workers that employers need to run local businesses. I’ll let Tapani take it from here:
“About 2009,” she explained, “when the economy was collapsing and there was a lot of unemployment, we were working with a company that got a contract to armor Humvees,” so her 55-person company “had to hire a lot of people. I was in the market looking for 10 welders. I had lots and lots of applicants, but they did not have enough skill to meet the standard for armoring Humvees. Many years ago, people learned to weld in a high school shop class or in a family business or farm, and they came up through the ranks and capped out at a certain skill level. They did not know the science behind welding,” so could not meet the new standards of the U.S. military and aerospace industry.
“They could make beautiful welds,” she said, “but they did not understand metallurgy, modern cleaning and brushing techniques” and how different metals and gases, pressures and temperatures had to be combined. Moreover, in small manufacturing businesses like hers, explained Tapani, “unlike a Chinese firm that does high-volume, low-tech jobs, we do a lot of low-volume, high-tech jobs, and each one has its own design drawings. So a welder has to be able to read and understand five different design drawings in a single day.”
Tapani eventually found a welder from another firm who had passed the American Welding Society Certified Welding Inspector exam, the industry’s gold standard, and he trained her welders — some of whom took several tries to pass the exam — so she could finish the job. Since then, Tapani trained a woman from Stacy, who had originally learned welding to make ends meet as a single mom. She took on the challenge of becoming a certified welding inspector, passed the exam and Tapani made her the company’s own in-house instructor, no longer relying on the local schools.
“She knows how to read a weld code. She can write work instructions and make sure that the people on the floor can weld to that instruction,” so “we solved the problem by training our own people,” said Tapani, adding that while schools are trying hard, training your own workers is often the only way for many employers to adapt to “the quick response time” demanded for “changing skills.” But even getting the right raw recruits is not easy. Welding “is a $20-an-hour job with health care, paid vacations and full benefits,” said Tapani, but “you have to have science and math. I can’t think of any job in my sheet metal fabrication company where math is not important. If you work in a manufacturing facility, you use math every day; you need to compute angles and understand what happens to a piece of metal when it’s bent to a certain angle.”
Who knew? Welding is now a STEM job — that is, a job that requires knowledge of science, technology, engineering and math.
Employers across America will tell you similar stories. It’s one reason we have three million open jobs around the country but 8 percent unemployment. We’re in the midst of a perfect storm: a Great Recession that has caused a sharp increase in unemployment and a Great Inflection — a merger of the information technology revolution and globalization that is simultaneously wiping out many decent-wage, middle-skilled jobs, which were the foundation of our middle class, and replacing them with decent-wage, high-skilled jobs. Every decent-paying job today takes more skill and more education, but too many Americans aren’t ready. This problem awaits us after the “fiscal cliff.”
“We need to be honest; there is a big case for Keynesian-style stimulus today, but that is not going to solve all our problems,” said the Harvard University labor economist Lawrence Katz. “The main reason the unemployment rate is higher today than it was in 2007, before the Great Recession, is because we have an ongoing cyclical unemployment problem — a lack of aggregate demand for labor — initiated by the financial crisis and persisting with continued housing market problems, consumers still deleveraging, the early cessation of fiscal stimulus compounded by cutbacks by state and local governments.” This is the main reason we went from around 5 percent to 8 percent unemployment.
But what is also true, says Katz, was that even before the Great Recession we had a mounting skills problem as a result of 25 years of U.S. education failing to keep up with rising skills demands, and it’s getting worse. There was almost a doubling of the college wage premium from 1980 to 2007 — that is, the extra income you earn from getting a two- or four-year degree. This was because there was a surge in demand for higher skills, as globalization and the I.T. revolution intensified, combined with a slowdown in the growth of supply of higher skills.
Many community colleges and universities simply can’t keep pace and teach to the new skill requirements, especially with their budgets being cut. We need a new “Race to the Top” that will hugely incentivize businesses to embed workers in universities to teach — and universities to embed professors inside businesses to learn — so we get a much better match between schooling and the job markets.
“The world no longer cares about what you know; the world only cares about what you can do with what you know,” explains Tony Wagner of Harvard, the author of “Creating Innovators: The Making of Young People Who Will Change the World.”
Eduardo Padrón, the president of Miami Dade College, the acclaimed pioneer in education-for-work, put it this way: “The skill shortage is real. Years ago, we started working with over 100 companies to meet their needs. Every program that we offer has an industry advisory committee that helps us with curriculum, mentorship, internships and scholarships. ... Spanish-speaking immigrants used to be able to come here and get a decent job doing repetitive tasks in an office or factory and earn enough to buy a home and car and put their kids through school and enjoy middle-class status. That is no longer possible. ... The big issue in America is not the fiscal deficit, but the deficit in understanding about education and the role it plays in the knowledge economy.”
The time when education — particularly the right kind of education — “could be a luxury for the few is long gone,” Padrón added.
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According to a survey by PayScale.com & according to the employees in these jobs:
Jobs That Make the World a Worse Place
Fast food workers. Telemarketers. Bartenders, and many more (the full list below)...
these professions have the highest share of employees who say their jobs make the world a worse place
Here (green link) & close to the end of this article - click: the full list of Jobs That Make the World a Worse Place
Fast food worker
ThinkstockWorkers who say their job makes the world a worse place:38.4%
Many fast food workers aren't feeling so good about handing you those greasy burgers and fries. In a survey conducted by PayScale that asked employees, 'Does your job make the world a better place?," 38.4% of fast food workers said their job was actually making the world a worse place.
That's the highest percentage for any of the jobs included in the survey and is well above the average of less than 1% across all jobs.
Why are fast food workers feeling so low? It's likely that some workers feel as if they are contributing to the country's worsening obesity epidemic, said Katie Bardaro, lead economist at PayScale. "A lot of fast food isn't healthy for you, and [fast food workers] are continuing to feed it to people even though they know that it's not," she said.
Gaming dealer
ThinkstockWorkers who say their job makes the world a worse place:17.6%
Watching gamblers throw their money away weighs on the consciences of some casino dealers, whose job often involves dealing the hands for games like poker and blackjack, distributing the winnings and collecting the losers' chips at the end of a game.
"They're supporting peoples' vices," said PayScale's Bardaro. "They may feel they're making the world a worse place by taking money away from people who often can't afford to lose that money."
Nearly 18% of gaming dealers say their job makes the world a worse place and almost half said their job doesn't do anything to make the world a better place.
Telemarketer
ThinkstockWorkers who say their job makes the world a worse place:9.4%
Interrupting family dinners with phone calls about products that people often don't need may lead some telemarketers to question the worthiness of their line of work.
More than 9% of telemarketers surveyed by PayScale said they thought their job made the world a worse place -- well above the industry wide average of less than 1%.
"Apart from door-to-door salespeople, telemarketers may be perceived as one of the most annoying sales professions," said Joel Garfinkle, career coach and author of "Getting Ahead: Three Steps to Take Your Career to the Next Level." "They enter your home -- via the telephone -- uninvited."
If you represent or sell a product that you believe actually has value for consumers, however, the job could become more meaningful, he said.
TV newscast director
ThinkstockWorkers who say their job makes the world a worse place:8.1%
Producing news about natural disasters, mass murders and economic meltdowns can take a toll on some TV newscast directors, who often work in control rooms and make sure everything runs smoothly.
"They're [sometimes] highlighting the bad things in the world because that's what gets the best ratings -- often times stories about things like gossip and violence," said PayScale's Bardaro.
Bartender
ThinkstockWorkers who say their job makes the world a worse place:6.7%
Getting people drunk may be fun, but some bartenders don't find it to be the most meaningful career.
"Does alcohol and the related downfalls of alcohol -- including drunk driving and alcoholism -- make the world a better place? For many bartenders, they may think not," said career coach Garfinkle.
But many bartenders actually have more meaningful jobs than they realize, since they can often act as therapist figures for customers who let their guard downs and open up to them, said Garfinkle. "It doesn't always occur to them that that interaction could really make a difference in a person's life."
Loan collector
ThinkstockWorkers who say their job makes the world a worse place:4.9%
Spending your days chasing down people who haven't paid their loans can be emotionally exhausting.
"A loan collector may feel guilty when trying to collect from customers who have fallen on hard financial times," said career coach Garfinkle.
Almost 5% of loan collectors say their jobs negatively impact the world, while another 23% say they aren't having a positive impact.
Fashion designer
ThinkstockWorkers who say their job makes the world a worse place:4.9%
Does creating the latest fashions for the runway have a positive impact on the world? Some fashion designers say "no."
In fact, about 5% of designers say their job actually makes the world a worse place. Meanwhile, another 36% said their line of work isn't doing anything to improve the world either.
"A lot of people have issues with body image, and fashion designers can make that worse in a lot of ways," said PayScale's Bardaro. "[Some of them] are designing clothes for models that don't represent the typical woman's body ... so you have people with eating disorders and low confidence because they can't wear the clothes they see in a magazine."
Click green title for the full list of Jobs That Make the World a Worse Place
Below: click the green to study each article
More from CNNMoney:
NAVIGATING THE JOB MARKET
- What's Your Interview Style?
- Jobs That Make the World a Worse Place
- Firms Press to Hire Young Veterans
- What Employers Are Looking For When They …
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GETTING AHEAD
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CNNMoney.com – October 18, 2012
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The 2 articles below have inspiring ideas how volunteering & part-time job
can help to find a good full-time job
October 28, 2012
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She Went for Broke, and Found a Job
I FOUND my dream job in New York after writing an e-mail version of one of those half-court basketball shots. In a state of post-graduation anxiety early this year, I had paused from my résumé tweaking and cover-letter editing to acknowledge that I was at a loss. That’s when my gut persuaded me to e-mail an author I had never met, and to ask her for advice.
It had been nine months since I graduated from Denison University in Granville, Ohio, with a B.A. in gender studies and international studies, and I had already lived in Michigan; Washington, D.C.; Ohio; New Jersey; and now New York, doing internships and taking on short-term stints as a nanny. I wasn’t ready to go to graduate school, and I wasn’t sure what I wanted to do with my career.
Throughout college, I had been reading and following the work of Courtney E. Martin, author of “Do It Anyway: The New Generation of Activists” and “Perfect Girls, Starving Daughters: How the Quest for Perfection Is Harming Young Women.” I loved her accessible writing about activism, feminism, freelancing and nontraditional faith. Thanks to online media, she had served as a kind of mentor-at-a-distance who both inspired me and calmed my career nerves. When I read her, I saw myself; if she could be so influential, there was hope for other big dreamers like me.
That’s why I e-mailed her when I was at such a loss in my career search. After introducing myself and mentioning one of her articles on freelancing, I wrote: “I can only imagine how busy you are and so I know this may be a big request, but if you could spare some time for coffee and some advice, I can’t tell you what it would mean to me. Without sounding overly adoring, I just hope that in 10 years I’ll have accomplished anything close to what you have, and the work that I’ve seen you create and been able to make happen for yourself (and others) has given me a glimpse of hope that I will be O.K. and I can have the big dreams that I do.”
Seventy-one minutes after I pressed “send,” a reply from Courtney landed in my in-box. While I had hoped to hear from her, I didn’t expect that she would have time for my questions, and certainly not for a same-night response. I e-mailed her back, and we arranged to have coffee the next week.
When we met, she hugged me. I rattled off my questions: How do you bring big ideas to life in this city? How do you remain authentic but also concisely answer when someone asks, “What kind of work are you looking for?” How do you not sound naïve when you say you want to change the world? What about grad school, and living off nonprofit salaries, and finding purpose? She sat, listened and reassured me. Our conversation cooled my nerves, and I left feeling lighter and more optimistic about the future.
A short time after our meeting, Courtney sent me another unexpected e-mail: “Can you meet Katie Orenstein, the founder of the OpEd Project, on Friday? She’s not hiring, but if you meet her you’ll be on her mind when she’s looking for someone.” The organization, which I had researched in the past and where Courtney teaches, aims to increase the diversity of voices we hear in the world. There is a focus on equality, on big change and on empowering people to understand the significance of their ideas and expertise. Its tag line is “Changing the world’s conversation.”
The next Friday, after a full day of nannying, I was sitting in the lobby of the OpEd Project in Manhattan. I met Katie and dove into a quick, 15-minute conversation that, unbeknown to me, turned into an interview. I assured her that no job was too big or too small for me, and she sat thinking for a minute. Then she said that she trusted Courtney’s recommendations, and that if I could successfully book a few plane tickets for her, I would be hired as her part-time assistant. I passed the test and was hired, and my part-time job became full time in June.
I FEEL lucky that, at 23, I look forward to work every day. I have a salary and benefits, lead a weekly conference call with the OpEd Project team, including Courtney, and work for an organization that aligns with my idealistic and big-picture vision.
To supplement my entry-level salary, I still baby-sit at night. But after a year of searching for “the right path,” I feel confident that there isn’t just one. What’s more important, I learned, is to practice and practice those half-court shots.
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Stocks & Bonds: Firms Don’t Share Consumer Optimism
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See also the next article below relating to the same topic
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See also the article just above relating to the same topic
November 3, 2012
When Volunteer Work Blossoms
I’VE always volunteered because I thought it was the right thing to do. I started volunteering in eighth grade as a teacher’s aide. My dad would pick me up after school and drive me to a nearby elementary school. In high school and college, I helped out at an AIDS organization in my hometown, Santa Cruz, Calif., that assisted clients with housing and other services.
After graduating from the University of Denver in June 2010, I thought that volunteering, in addition to being worthwhile in its own right, would give me a leg up in the frustrating job market. I was working at Starbucks, and my applications for other jobs were getting me nowhere.
In offering my time to the Firelight Foundation the next February, I hoped that I’d eventually be offered a job. Firelight helps grass-roots organizations in Africa improve the well-being of children, especially those suffering from the effects of H.I.V., AIDS and poverty in sub-Saharan Africa.
Firelight happens to be based in my hometown, but it was also a perfect match for my career goals. I’d been interested in Africa ever since my first-grade teacher gave a presentation on the subject. I still have a picture from that day that shows me holding an African shield and spear — and beaming. Africa also played a role in my choice of international studies as a major. During my senior year, I spent a semester in Uganda with a program that offered college credit.
I reduced my hours at Starbucks and gave two days a week to Firelight, helping with grant applications. Three months later, Firelight offered me a three-month temporary job that allowed me to become more involved in reviewing such applications. I hoped the contract would be extended and was disappointed when it wasn’t, so I decided to take some time off to help my sister with her wedding plans.
That time gave me an opportunity to reflect, and three weeks later I decided that I wanted to return to Firelight. I knew that there was no guarantee I’d get a permanent job there, but I thought the organization was such a good fit for me. I reasoned that even if I didn’t get a job, I was gaining experience in the field, and I was meeting people who might help me get a paid position elsewhere. And I still wanted to make an impact in the world beyond serving coffee. My heart has always been with Africa, so I couldn’t see myself not volunteering at Firelight.
The organization took me back and added some responsibilities in line with my future goals. For example, I helped with donor prospecting and research so I could learn about grant writing. Six months later, a program assistant moved on and I was offered her position, so my plan ultimately worked.
Now I’ve taken on even more responsibility. I work more closely with the organizations that receive our grants and work with us as partners, and I speak directly to the consultants with whom we contract for mentoring and training groups in Africa.
I have especially liked working with the Imvani Women’s Support Group in Malawi, which helped women establish a bakery in their village. The proceeds have allowed them to pay the staff, to send children to school and to reinvest in the business to open another bakery.
I’M not saying it’s an easy path from volunteer to full-time employee. It took me a year, which some job hunters might not see as a long time, but I had been out of school a year and a half by then. For me, one real benefit of volunteering was that it gave me an opportunity to build a relationship with the staff over time.
If you’re hoping to turn volunteering into a job, you have to be willing to sacrifice. I had to move home after college because I couldn’t afford an apartment on my Starbucks salary. I did what I had to do. When it seemed that things might not work out, I tried to keep a good outlook.
Since getting a full-time position, I’ve moved into an apartment. In my work, I now supervise Firelight volunteers. It felt weird to be a volunteer one day and to be supervising them the next. But since I’ve been in their position, I can give them hope.
As told to Patricia R. Olsen.
MORE IN JOBS (6 OF 20 ARTICLES) The Boss: A Life Beyond BaseballRead More »
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When Volunteer Work Blossoms
I’VE always volunteered because I thought it was the right thing to do. I started volunteering in eighth grade as a teacher’s aide. My dad would pick me up after school and drive me to a nearby elementary school. In high school and college, I helped out at an AIDS organization in my hometown, Santa Cruz, Calif., that assisted clients with housing and other services.
After graduating from the University of Denver in June 2010, I thought that volunteering, in addition to being worthwhile in its own right, would give me a leg up in the frustrating job market. I was working at Starbucks, and my applications for other jobs were getting me nowhere.
In offering my time to the Firelight Foundation the next February, I hoped that I’d eventually be offered a job. Firelight helps grass-roots organizations in Africa improve the well-being of children, especially those suffering from the effects of H.I.V., AIDS and poverty in sub-Saharan Africa.
Firelight happens to be based in my hometown, but it was also a perfect match for my career goals. I’d been interested in Africa ever since my first-grade teacher gave a presentation on the subject. I still have a picture from that day that shows me holding an African shield and spear — and beaming. Africa also played a role in my choice of international studies as a major. During my senior year, I spent a semester in Uganda with a program that offered college credit.
I reduced my hours at Starbucks and gave two days a week to Firelight, helping with grant applications. Three months later, Firelight offered me a three-month temporary job that allowed me to become more involved in reviewing such applications. I hoped the contract would be extended and was disappointed when it wasn’t, so I decided to take some time off to help my sister with her wedding plans.
That time gave me an opportunity to reflect, and three weeks later I decided that I wanted to return to Firelight. I knew that there was no guarantee I’d get a permanent job there, but I thought the organization was such a good fit for me. I reasoned that even if I didn’t get a job, I was gaining experience in the field, and I was meeting people who might help me get a paid position elsewhere. And I still wanted to make an impact in the world beyond serving coffee. My heart has always been with Africa, so I couldn’t see myself not volunteering at Firelight.
The organization took me back and added some responsibilities in line with my future goals. For example, I helped with donor prospecting and research so I could learn about grant writing. Six months later, a program assistant moved on and I was offered her position, so my plan ultimately worked.
Now I’ve taken on even more responsibility. I work more closely with the organizations that receive our grants and work with us as partners, and I speak directly to the consultants with whom we contract for mentoring and training groups in Africa.
I have especially liked working with the Imvani Women’s Support Group in Malawi, which helped women establish a bakery in their village. The proceeds have allowed them to pay the staff, to send children to school and to reinvest in the business to open another bakery.
I’M not saying it’s an easy path from volunteer to full-time employee. It took me a year, which some job hunters might not see as a long time, but I had been out of school a year and a half by then. For me, one real benefit of volunteering was that it gave me an opportunity to build a relationship with the staff over time.
If you’re hoping to turn volunteering into a job, you have to be willing to sacrifice. I had to move home after college because I couldn’t afford an apartment on my Starbucks salary. I did what I had to do. When it seemed that things might not work out, I tried to keep a good outlook.
Since getting a full-time position, I’ve moved into an apartment. In my work, I now supervise Firelight volunteers. It felt weird to be a volunteer one day and to be supervising them the next. But since I’ve been in their position, I can give them hope.
As told to Patricia R. Olsen.
MORE IN JOBS (6 OF 20 ARTICLES) The Boss: A Life Beyond BaseballRead More »
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Making a Living, One Project at a Time.
Q.
You have noticed some high-level professionals leaving permanent jobs — either by choice or by necessity — to work on a project basis for a variety of different companies. Is this something you should consider doing?
A. Because the recession caused many companies to push for leaner management teams and to reduce their head counts, they’ve lost some of the expertise they once had in their ranks. That has made room for the career project professional — a highly experienced professional who works in the short term on specific projects, says Jody Greenstone Miller, founder and C.E.O. of the Business Talent Group, a placement firm in Los Angeles. “These people want control over their time, the kind of work they do and with whom they work,” she says.
Career project professionals are generally experts in their fields, with a demonstrable record of high-level accomplishments, Ms. Miller says.
In such work, it’s important to have the ability — both financially and emotionally — to live from project to project, without the security that comes with permanent employment, says Wyatt A. Nordstrom, chief executive of Maven, an online professional marketplace for project-based consultants. “You may work steadily for six to eight months and then there will be down time,” he says.
Q. In what industries is demand greatest for career project professionals?
A. They are often specialists in a particular area within a certain industry, whether it’s nuclear science or supply chain management. Those with experience in information technology are in especially high demand, says Jonathan Thom, vice president for professional staffing at Express Employment Professionals, a staffing firm based in Oklahoma City. There is also rising demand in accounting and marketing, he says. You might be a finance professional brought in to assist with an internal audit, or a marketing professional asked to manage a corporate re-branding.
Q. How do you get started? Should you register with an agency or a consulting firm that places independent workers?
A. Registering with an agency that lists projects for high-level professionals is one way to find work. But most career project professionals use their own networks. “Ninety percent of the people we work with get their work from those they know,” says Gene Zaino, chief executive of MBO Partners in Herndon, Va., which provides back-office support for independent consultants.
If you’ve allowed your professional network to stagnate, you should rebuild it before trying to get project-based work, Mr. Thom says. “You want to be able to ask those in your network what you might be able to help with,” he says.
Because you must sell your skills continuously, you need confidence — and the ability to articulate clearly to prospective clients what you do and why it’s valuable, Mr. Zaino says.
Q. What can you expect to earn when working on your own?
A. On an hourly basis, project-based work usually pays 50 percent to 100 percent more than what a full-time salaried professional earns, Mr. Nordstrom says. Much depends on the need for your skills in your geographic market, he says. And remember that at some point in the year, you are likely to be between projects and not earning anything.
One downside of project-based work is that you are responsible for finding and paying for your health insurance. That can be costly, especially if you have to insure an entire family.
Mr. Thom says that having a financial safety net will help you feel more secure during downtime. He suggests putting aside three to six months of living expenses before leaving your permanent job. “Of course,” he says, “people do this every day with less in the bank, sometimes not by choice, and they manage.”
Q. What are the challenges in leaving permanent salaried employment for a career in project-based work?
A. Many of those who start working independently don’t really know how to run a business, Mr. Zaino says. “It’s difficult enough to find clients and deliver good service,” he says, “but now you have to navigate taxes, regulatory issues, figure out if you have the right business insurance, how to get invoices out and how to approach clients when payment is overdue.”
You’ll also need a sounding board, so try to find a mentor who has been successful at independent contracting. “Most good companies have mentorship and career advice built in,” he says. “When you’re on your own, you have to build that in yourself.”
Source:
The New York Times
By EILENE ZIMMERMAN
This is for your personal use, only
______________________________
This article relates to Public Speaking & Seminar Leader Professions
A Few Well-Chosen Words Pay the Fare for Some
THAT white-knuckled flier sitting across the aisle muttering anxiously may well have a case of fear of flying. But it may also be a case of fear of public speaking.
Consider that there are many thousands of corporate and professional meetings, trade shows, conventions, conferences and other events every year, and that the meetings business has been growing, domestically and internationally. And just about every one features a selection of public speakers. My guess is that most flights include at least one business traveler headed somewhere to give a speech of some kind.
“I never really thought of it that way, but obviously that’s the case,” said Peter V. Handal, the chief executive of Dale Carnegie Training, a company that provides training in communications and leadership skills.
Public speaking is, of course, a basic requirement in many jobs, from the pulpit to the front office. But it’s also a thriving business that provides employment, or extra income, to thousands of people from all parts of life who travel for speaking engagements that can pay from $1,500 or so to well over $200,000 just to talk for an hour or so.
Click green for further info
Over $200,000 for a speech? Well, that’s about what Bill Clinton averaged per speaking engagement in 2011, when he made a total of $13.4 million for 54 paid speeches, according to a CNN analysis based on financial disclosure statements filed by Secretary of State Hillary Rodham Clinton.
Nor is Mr. Clinton alone in the top niche of highly paid speakers. Just among English speakers, the ranks of those who command $100,000 or more for a speech (plus first-class travel expenses) include Rudolph W. Giuliani, Sarah Palin, Oprah Winfrey, Alan Greenspan, Al Gore, Richard Branson and many others.
But there are many others, in multiple pay grades and in a vast range of specialties, who are all giving speeches. One indication that the demand is rising is in the job growth in the business of planning for meetings and trade shows. In 2010, 71,600 people were employed as meeting, convention and event planners in the United States. That number is “expected to grow 44 percent from 2010 to 2020, much faster than the average for all occupations,” according to the Bureau of Labor Statistics.
And while it is hard to imagine that Bill Clinton or Richard Branson ever experienced anxiety about talking, public speaking remains a source of at least some anxiety for many businesspeople.
“A lot of people really are afraid of public speaking,” Mr. Handal said.
As noted on the Web site of Toastmasters International, a nonprofit group that encourages the development of speaking skills at its 15,500 clubs around the world, “Believe it or not, your chances of dying of stage fright are extremely slim.”
On the other hand, even if you’re accustomed to public speaking, your chances of doing it more effectively are probably enhanced with training of the sort provided by Toastmasters and other organizations.
Mr. Handal said that the Dale Carnegie drills stressed gentle coaching. “We have somebody stand up in front of a group of people and give a two-minute talk, and they do it several times during the course of training.”
When I was younger, I was daunted by the prospect of giving a speech. Remember Jackie Gleason as the tongue-tied Ralph Kramden babbling “Homina, homina, homina” when he had to give a speech? That was what I feared I’d be, but after a few times at the lectern, I eventually got the hang of it. Familiarity is the key, as Mr. Handal said.
One curveball being thrown at public speakers, incidentally, comes from technology. At big events, the speaker’s image is often projected on giant video screens, allowing people to see quirks that once went largely unnoticed.
“If you’re all the way up on a stage in a room with 2,000 people, most people really can’t see the small inflections and changes in your facial expression,” Mr. Handal said. But with those giant screens, “suddenly they really can, which makes body language far more important than it ever was.”
He added: “One of the things we teach people is to smile more. I thought I was smiling, but after participating in one training session I reviewed the video with a coach, and I realized I looked like a sourpuss. There was a big disconnect between what I thought I was doing, and what I actually was doing on the video.”
Now, of course, if you’re one of those people getting $25,000, $50,000 or even $100,000-plus for a speech, not including your hotel suite and a first-class plane ticket, that is probably no longer an issue. You undoubtedly have a lot to smile about.
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MORE IN BUSINESS DAY (1 OF 22 ARTICLES)
DealBook: Wall Street Pay Remains High Even as Jobs Shrink Read More »
Source: NYT
October 9, 2012
This article is for your private use, only
_____________________________________________________
Five High-Paying, Low-Stress Jobs
(1) Planning a career change - here some hints
(2) Looking for your first career - here good ideas
Source:
By Bridget Quigg, PayScale.com
For your personal use, only
Imagine the following scenario. Someone asks you how work is going and you say,
“Not bad. The pay is great and the stress is manageable.” According to research
from online salary database PayScale.com, that could be your reality if you
choose one of the following well-paying jobs where workers report below-average
levels of stress.
PayScale.com collects salary and job information from
employees around the country and has found that the most
enviable gigs are typically knowledge-based and require highly
specialized training and education.
“Being smart at something really helps you feel happy,” says
Katie Bardaro, lead research analyst at PayScale.com. “The
more preparation you put into a career, the more you can
define your career, such as being able to set your schedule and your tasks.”
She adds that not having the pressure of being “a cog in the machine alleviates some stress.” It seems
that being able to walk into a room and command everyone’s attention as you share your expertise
makes you less likely to crave that sixth cup of coffee.
Perhaps the promise of a career like this will inspire you to get the degree or additional job training you
need to land one of these five high-paying, low-stress jobs.
1. Optometrist
Median Annual Salary: $99,200
Good attention to detail and a strong background in the sciences help optometrists diagnose vision
problems, prescribe vision-correcting eyewear and help manage eye diseases like glaucoma. In addition
to earning a bachelor’s degree and doctorate, optometrists must pass state and national exams. After all
that, apparently, they are pretty happy. Job prospects are excellent, with 24 percent job growth expected
through 2018, according to the Bureau of Labor Statistics (BLS).
(click) Find optometrist jobs.
2. Materials Scientist
Median Annual Salary: $90,600
Synthetic fibers, lubricants, leak-proof materials -- these are a few of the products created by materials
scientists. They need strong chemistry backgrounds and at least a bachelor’s degree to get started.
Those holding a PhD often specialize in areas such as analytical chemistry or polymer chemistry.
(click) Find materials scientist jobs.
3. Economist
Median Annual Salary: $85,600
Economists pay attention to the distribution of goods and resources. They may focus on money, natural
resources or other valuables, and often work to predict future outcomes. Those with a PhD fare best in
what can be a very competitive job market. You have to be willing to produce plenty of reports and
analyses based on hours of number crunching. The government employs the majority of economists,
according to the BLS.
(click) Find economist jobs.
4. Aeronautical Engineer
Median Annual Salary: $82,800
Who wouldn’t feel inspired working on the wonder of flight every day? From lowering aircraft weight an fuel needs to improving safety, aeronautical engineers spend a lot of time rethinking and improving how we travel through the air. Aeronautical engineers typically have a bachelor’s degree to start, but many earn master’s degrees and pass both licensing and professional advancement exams.
(click) Find aeronautical engineer jobs.
5. User Experience Designer
Median Annual Salary: $79,100
User experience (UX) designers optimize any experience where humans interact with objects, such as board games, ATMs and cars. For example, in a world where nearly anyone can create a Web site in hours, leading companies often hire UX designers to make their site more attractive and easy to use. UX designers come from a variety of disciplines, including psychology, industrial design and anthropology.
“I work on projects just as they start or even initiate the project myself,” says Mike Bibik, a senior UX designer in Seattle. “This affords [me] a greater amount of influence, and I am not dealing with the stress of project decisions or directions with which I disagree.”
(click) Find user experience designer jobs.
Source: All salary data provided by online salary database PayScale.com. Salaries listed are median, annual salaries for full-time workers with five to eight years of experience and include all bonuses, commissions or profit sharing.
________________________________________
(1) Planning a career change - here some hints
(2) Looking for your first career - here good ideas
Source:
By Bridget Quigg, PayScale.com
For your personal use, only
Imagine the following scenario. Someone asks you how work is going and you say,
“Not bad. The pay is great and the stress is manageable.” According to research
from online salary database PayScale.com, that could be your reality if you
choose one of the following well-paying jobs where workers report below-average
levels of stress.
PayScale.com collects salary and job information from
employees around the country and has found that the most
enviable gigs are typically knowledge-based and require highly
specialized training and education.
“Being smart at something really helps you feel happy,” says
Katie Bardaro, lead research analyst at PayScale.com. “The
more preparation you put into a career, the more you can
define your career, such as being able to set your schedule and your tasks.”
She adds that not having the pressure of being “a cog in the machine alleviates some stress.” It seems
that being able to walk into a room and command everyone’s attention as you share your expertise
makes you less likely to crave that sixth cup of coffee.
Perhaps the promise of a career like this will inspire you to get the degree or additional job training you
need to land one of these five high-paying, low-stress jobs.
1. Optometrist
Median Annual Salary: $99,200
Good attention to detail and a strong background in the sciences help optometrists diagnose vision
problems, prescribe vision-correcting eyewear and help manage eye diseases like glaucoma. In addition
to earning a bachelor’s degree and doctorate, optometrists must pass state and national exams. After all
that, apparently, they are pretty happy. Job prospects are excellent, with 24 percent job growth expected
through 2018, according to the Bureau of Labor Statistics (BLS).
(click) Find optometrist jobs.
2. Materials Scientist
Median Annual Salary: $90,600
Synthetic fibers, lubricants, leak-proof materials -- these are a few of the products created by materials
scientists. They need strong chemistry backgrounds and at least a bachelor’s degree to get started.
Those holding a PhD often specialize in areas such as analytical chemistry or polymer chemistry.
(click) Find materials scientist jobs.
3. Economist
Median Annual Salary: $85,600
Economists pay attention to the distribution of goods and resources. They may focus on money, natural
resources or other valuables, and often work to predict future outcomes. Those with a PhD fare best in
what can be a very competitive job market. You have to be willing to produce plenty of reports and
analyses based on hours of number crunching. The government employs the majority of economists,
according to the BLS.
(click) Find economist jobs.
4. Aeronautical Engineer
Median Annual Salary: $82,800
Who wouldn’t feel inspired working on the wonder of flight every day? From lowering aircraft weight an fuel needs to improving safety, aeronautical engineers spend a lot of time rethinking and improving how we travel through the air. Aeronautical engineers typically have a bachelor’s degree to start, but many earn master’s degrees and pass both licensing and professional advancement exams.
(click) Find aeronautical engineer jobs.
5. User Experience Designer
Median Annual Salary: $79,100
User experience (UX) designers optimize any experience where humans interact with objects, such as board games, ATMs and cars. For example, in a world where nearly anyone can create a Web site in hours, leading companies often hire UX designers to make their site more attractive and easy to use. UX designers come from a variety of disciplines, including psychology, industrial design and anthropology.
“I work on projects just as they start or even initiate the project myself,” says Mike Bibik, a senior UX designer in Seattle. “This affords [me] a greater amount of influence, and I am not dealing with the stress of project decisions or directions with which I disagree.”
(click) Find user experience designer jobs.
Source: All salary data provided by online salary database PayScale.com. Salaries listed are median, annual salaries for full-time workers with five to eight years of experience and include all bonuses, commissions or profit sharing.
________________________________________
Six Medical Careers That Are Growing
Click green for further info
12/4/12 situation - pr0pably valid info for several years to come
Want to get in on the health care career boom? Check out some hot options - and see what it takes to prepare.By Jennifer Berry
It's no secret that careers in health care are booming. In fact, the U.S. Department of Labor expects the health care and social assistance industry to add 5.6 million jobs from 2010 to 2020 - more than any other field.
And going to medical school isn't the only path to prepare for the growing health care industry.
"The vast array of positions - as well as the varying degrees of education needed - make health care one of the best industries to be involved in," says Andrea Santiago, the About.com guide to health careers.
If you're interested in pursuing a job in the health care industry, check out our list of thriving health care careers to find the one that could be right for you.
Career #1: Medical and Health Services Manager
Want to pursue a health care career where you could put your people skills to good use? Consider a career as a medical and health services manager.
How is it booming? The U.S. Department of Labor projects 68,000 new medical and health services manager jobs to be added from 2010 to 2020 - that's a 22 percent rise in employment! As the baby boomer population gets older, we should see an increase in the number of facilities providing health care, says the Department of Labor, and these facilities will need administrators to run them.
And while this career is indeed growing, Santiago offers this advice: "There is a demand for health care administrators, but it's not as intense as the demand for clinicians. Don't think this is an automatic job."
Typical duties: As a medical and health services manager, you might manage a facility or a specific clinical department. Some common duties include handling finances, developing work schedules, and communicating with your medical staff, according to the Department.
Click to Find the Right Health Care Administration Program.
Education options: To prepare to pursue this career, most medical and health services managers need at least a bachelor's degree. But master's degrees in health services, long-term care administration, public health, public administration, or business administration are also common credentials, says the Department.
Career #2: Dental Assistant
Are you interested in helping people take care of their teeth? Consider pursuing a growing career as a dental assistant.
How is it booming? With the aging baby boomers keeping more of their original teeth compared to previous generations, a greater number of people will require dental practices longer in life, says the U.S. Department of Labor. Perhaps that's why employment of dental assistants is projected to increase by 31 percent from 2010 to 2020 - adding 91,600 new jobs.
"This career is among the top health care careers in terms of demand," Santiago says. "And dental assisting education requirements are relatively minimal compared to other health care careers, like nursing."
Typical duties: As a dental assistant, you could help patients feel more comfortable during dental procedures. Your duties could include everything from sterilizing and arranging instruments to maintaining patient records and scheduling appointments, according to the Department of Labor.
Click to Find the Right Dental Assisting Program.
Education options: While some states do not require formal education, others may require dental assisting hopefuls to graduate from an accredited program, as well as pass a state exam. Programs in dental assisting are offered at the certificate and associate's degree level, says the Department.
Career #3: Registered Nurse
Are you a natural nurturer who is interested in the health care field? A career as a registered nurse could be a good fit for you.
How is it booming? The U.S. Department of Labor says that employment for registered nurses is projected to increase by 26 percent, or 711,900 new jobs, from 2010 to 2020. More nurses will be needed as the large baby boomer population ages and more technological advancements treat health problems and extend lives, adds the Department of Labor.
"Nursing is one of the largest segments of the health care industry," Santiago says. "The latest figures put the number of working nurses between two and a half and three million. And among nurses, RN is one of the most popular designations."
Typical duties: As a registered nurse, you could provide patient care by discussing treatment with doctors, performing diagnostic tests, giving medications, and monitoring medical equipment, according to the Department. Other duties could include educating patients about health conditions and providing them with emotional support.
Click to Find the Right Nursing Program.
Education options: If you're interested in pursuing a career as a registered nurse, consider these two education paths: earning an associate's degree in nursing (ADN) or a diploma from an approved nursing program, says the Department. After you graduate, you'll need to pass the national nursing exam (NCLEX-RN) in order to get licensed.
Career #4: Medical Records and Health Information Technician
Are you good at reading and understanding detailed documents? Consider pursuing an in-demand career as a medical records and health information technician.
How is it booming? With the population aging, more people will require more medical tests and procedures, which could lead to a growth in technicians who can keep medical records organized, as well as those who can process claims for reimbursement from insurance companies, says the U.S. Department of Labor. This could explain why medical records and health information technicians are projected to grow by 21 percent from 2010 to 2020 - adding 37,700 new jobs.
"This is a health care job where you aren't dealing directly with patients," Santiago says. "With everything going computerized, you'll need to be proficient with computers and able to learn new software quickly."
Typical duties: As a medical records and health information technician, you could make sure that medical records - including a patient's medical history, symptoms, and test results - are accurate and secure in both paper and electronic systems, according to the Department of Labor. You might also use classification systems to code and label patient information for insurance reimbursements or medical databases.
Click to Find the Right Health Information Technology Program.
Education options: A certificate in health information technology is generally needed to prepare to pursue this occupation, though the Department notes that medical records and health information technicians may have an associate's degree. It's important to note that many employers require applicants to have a professional certification.
Career #5: Physical Therapy Assistant
Are you intrigued by the idea of helping others recover from illnesses or injuries? If so, consider pursuing an in-demand career as a physical therapy assistant.
How is it booming? The U.S. Department of Labor projects employment to increase by 46 percent from 2010 to 2020 - adding 30,800 new physical therapy assistant jobs. With baby boomers maintaining active lifestyles and reaching an age with a greater chance of heart attacks and strokes, demand for cardiac and physical rehabilitation could rise, and as a result, there could be a greater need for physical therapy assistants.
The Department of Labor adds that "Medical and technological developments should permit an increased percentage of trauma victims and newborns with birth defects to survive, creating added demand for therapy and rehabilitative services."
Typical duties: As a physical therapist assistant, you can help patients regain movement by implementing techniques like massage and stretching, assisting with certain exercises, and teaching them how to use equipment such as walkers, according to the Department.
Click to Find the Right Physical Therapy Assistance Program.
Education options: Have your sights set on this career? If you want to prepare to pursue this career, it should help to know that most states require physical therapist assistants to earn an associate's degree from a physical therapist program - that's accredited, of course, notes the Department.
Next Article: Hot Careers That Are Hiring Now »
Click green for further info
This article is for your private use, only
___________________________________________________________________
Click green for further info
12/4/12 situation - pr0pably valid info for several years to come
Want to get in on the health care career boom? Check out some hot options - and see what it takes to prepare.By Jennifer Berry
It's no secret that careers in health care are booming. In fact, the U.S. Department of Labor expects the health care and social assistance industry to add 5.6 million jobs from 2010 to 2020 - more than any other field.
And going to medical school isn't the only path to prepare for the growing health care industry.
"The vast array of positions - as well as the varying degrees of education needed - make health care one of the best industries to be involved in," says Andrea Santiago, the About.com guide to health careers.
If you're interested in pursuing a job in the health care industry, check out our list of thriving health care careers to find the one that could be right for you.
Career #1: Medical and Health Services Manager
Want to pursue a health care career where you could put your people skills to good use? Consider a career as a medical and health services manager.
How is it booming? The U.S. Department of Labor projects 68,000 new medical and health services manager jobs to be added from 2010 to 2020 - that's a 22 percent rise in employment! As the baby boomer population gets older, we should see an increase in the number of facilities providing health care, says the Department of Labor, and these facilities will need administrators to run them.
And while this career is indeed growing, Santiago offers this advice: "There is a demand for health care administrators, but it's not as intense as the demand for clinicians. Don't think this is an automatic job."
Typical duties: As a medical and health services manager, you might manage a facility or a specific clinical department. Some common duties include handling finances, developing work schedules, and communicating with your medical staff, according to the Department.
Click to Find the Right Health Care Administration Program.
Education options: To prepare to pursue this career, most medical and health services managers need at least a bachelor's degree. But master's degrees in health services, long-term care administration, public health, public administration, or business administration are also common credentials, says the Department.
Career #2: Dental Assistant
Are you interested in helping people take care of their teeth? Consider pursuing a growing career as a dental assistant.
How is it booming? With the aging baby boomers keeping more of their original teeth compared to previous generations, a greater number of people will require dental practices longer in life, says the U.S. Department of Labor. Perhaps that's why employment of dental assistants is projected to increase by 31 percent from 2010 to 2020 - adding 91,600 new jobs.
"This career is among the top health care careers in terms of demand," Santiago says. "And dental assisting education requirements are relatively minimal compared to other health care careers, like nursing."
Typical duties: As a dental assistant, you could help patients feel more comfortable during dental procedures. Your duties could include everything from sterilizing and arranging instruments to maintaining patient records and scheduling appointments, according to the Department of Labor.
Click to Find the Right Dental Assisting Program.
Education options: While some states do not require formal education, others may require dental assisting hopefuls to graduate from an accredited program, as well as pass a state exam. Programs in dental assisting are offered at the certificate and associate's degree level, says the Department.
Career #3: Registered Nurse
Are you a natural nurturer who is interested in the health care field? A career as a registered nurse could be a good fit for you.
How is it booming? The U.S. Department of Labor says that employment for registered nurses is projected to increase by 26 percent, or 711,900 new jobs, from 2010 to 2020. More nurses will be needed as the large baby boomer population ages and more technological advancements treat health problems and extend lives, adds the Department of Labor.
"Nursing is one of the largest segments of the health care industry," Santiago says. "The latest figures put the number of working nurses between two and a half and three million. And among nurses, RN is one of the most popular designations."
Typical duties: As a registered nurse, you could provide patient care by discussing treatment with doctors, performing diagnostic tests, giving medications, and monitoring medical equipment, according to the Department. Other duties could include educating patients about health conditions and providing them with emotional support.
Click to Find the Right Nursing Program.
Education options: If you're interested in pursuing a career as a registered nurse, consider these two education paths: earning an associate's degree in nursing (ADN) or a diploma from an approved nursing program, says the Department. After you graduate, you'll need to pass the national nursing exam (NCLEX-RN) in order to get licensed.
Career #4: Medical Records and Health Information Technician
Are you good at reading and understanding detailed documents? Consider pursuing an in-demand career as a medical records and health information technician.
How is it booming? With the population aging, more people will require more medical tests and procedures, which could lead to a growth in technicians who can keep medical records organized, as well as those who can process claims for reimbursement from insurance companies, says the U.S. Department of Labor. This could explain why medical records and health information technicians are projected to grow by 21 percent from 2010 to 2020 - adding 37,700 new jobs.
"This is a health care job where you aren't dealing directly with patients," Santiago says. "With everything going computerized, you'll need to be proficient with computers and able to learn new software quickly."
Typical duties: As a medical records and health information technician, you could make sure that medical records - including a patient's medical history, symptoms, and test results - are accurate and secure in both paper and electronic systems, according to the Department of Labor. You might also use classification systems to code and label patient information for insurance reimbursements or medical databases.
Click to Find the Right Health Information Technology Program.
Education options: A certificate in health information technology is generally needed to prepare to pursue this occupation, though the Department notes that medical records and health information technicians may have an associate's degree. It's important to note that many employers require applicants to have a professional certification.
Career #5: Physical Therapy Assistant
Are you intrigued by the idea of helping others recover from illnesses or injuries? If so, consider pursuing an in-demand career as a physical therapy assistant.
How is it booming? The U.S. Department of Labor projects employment to increase by 46 percent from 2010 to 2020 - adding 30,800 new physical therapy assistant jobs. With baby boomers maintaining active lifestyles and reaching an age with a greater chance of heart attacks and strokes, demand for cardiac and physical rehabilitation could rise, and as a result, there could be a greater need for physical therapy assistants.
The Department of Labor adds that "Medical and technological developments should permit an increased percentage of trauma victims and newborns with birth defects to survive, creating added demand for therapy and rehabilitative services."
Typical duties: As a physical therapist assistant, you can help patients regain movement by implementing techniques like massage and stretching, assisting with certain exercises, and teaching them how to use equipment such as walkers, according to the Department.
Click to Find the Right Physical Therapy Assistance Program.
Education options: Have your sights set on this career? If you want to prepare to pursue this career, it should help to know that most states require physical therapist assistants to earn an associate's degree from a physical therapist program - that's accredited, of course, notes the Department.
Next Article: Hot Careers That Are Hiring Now »
Click green for further info
This article is for your private use, only
___________________________________________________________________
!!! A Word of Caution !!!
Read this article first before drawing any conclusion
this is not stating you should not stay in the SAME company longer than 4 years
Be careful how you think about this article
_________
Why You Should Never Stay in the Same Job
for More Than Four Years
Click green for further info
A Word of Caution
Keep in mind that being a little too promiscuous with your career can also be damaging. Jumping from job to job can give the impression that you’re not reliable or dependable. Frequent job-hopping can also affect your seniority and leave you feeling that you’re taking a step backward whenever you join a new team.
As with anything in life, think carefully before making any major career decisions. Just don’t let yourself become stagnant where you are. Exploration is vital to keeping you excited and motivated about your work.
This is not your father’s job market. Long gone are the company lifers from yesteryear who spent their entire careers in a single position within a single company. Today, we’re living in an age of job promiscuity, where regularly changing jobs is not just tolerated, but encouraged.
This shift is a fairly recent phenomenon that can be traced back to the dot-com rise and fall of the late 1990's. Regardless of the reasons for the shift, the current employment climate requires job seekers to be more agile. As such, you’ll notice that fewer and fewer people stay in their jobs for longer than three or four years. Here are four reasons you should be one of these people.
1. Rapidly Evolving Skill Sets
It’s human nature to get comfortable and settle into a predictable routine. If you’re able to perform your job competently, you may have little motivation to improve or update your skills regularly. If this describes you, don’t worry -- you’re not alone. But you may want to check out what’s happening on the job market. Companies are always changing how they do business and how they staff their positions. A skill necessary today may not be required tomorrow -- and vice versa.
If you’ve been at your job for a number of years, search Monster (or other sources) for jobs comparable to yours.
Take a look at the requirements and see if they match your skill set. You may be surprised by what employers are currently looking for.
2. Technological Advancements
As technology evolves, so does the face of entire industries. If you have a technical job, keep your finger on the pulse of what’s happening in your industry. While your current employer may not be adopting new platforms or technologies, its competitors might be. If you’ve been with your company for several years as a Windows systems administrator, for example, entire lines of software and hardware may be completely foreign to you. If you haven’t been keeping up with these changes, you may have a hard time taking the next step in your career. You don’t want to become a dinosaur in your industry by staying at a job for too long.
3. Perception
Imagine you’re on a date and discover that your companion has just come out of a 12-year relationship. Think about how you would perceive that person and how he or she may relate to you. Unfair or not, you will make assumptions based on the longevity of your date’s previous relationship. Your reaction would not be unlike that of a hiring manager when evaluating the resume of a candidate who spent the past 12 years working for another company. Will this person be easy to train? Will he adapt well to a new environment? What made this person leave after so many years? Are his skills current? Is he motivated?The questions are endless and can be enough to put the employer off the candidate entirely.
4. Career Advancement
While you can remain with the same company for many years, holding the same position for more than four years can be problematic. If you aspire to evolve within your company, you should be looking to do so within two years of joining. If you have been in the same job for four years, you may want to consider other options.
For example, if you’re happy with your employer but stuck in a no-growth position, try branching out to other departments. Additionally, ask whether funds are available for you to take some courses that can help develop your skills. As always, consult with your manager since he’ll be in a great position to advise you. The key factor here is to keep moving forward.
A Word of Caution
Keep in mind that being a little too promiscuous with your career can also be damaging. Jumping from job to job can give the impression that you’re not reliable or dependable. Frequent job-hopping can also affect your seniority and leave you feeling that you’re taking a step backward whenever you join a new team.
As with anything in life, think carefully before making any major career decisions. Just don’t let yourself become stagnant where you are. Exploration is vital to keeping you excited and motivated about your work.
Click green for further info
Source:
By Joe Issid, Monster Canada Contributing Writer
This article is for your private use, only
______________________
CAREER COUCH
July 1, 2012
Source: The New York Times, Sunday Business, p. 7
This is for your private use, only.
Showcasing Your Work, in an Online Portfolio
By EILENE ZIMMERMAN
Q. Some of your colleagues and friends have created Web sites listing their professional experience, credentials and samples of their work. Should you have some sort of online portfolio, too?
A. You may want to consider it. These days, one of the first things a recruiter or hiring manager does after receiving a promising lead is to search for the person on Google. Creating your own Web site or displaying your work on a larger platform gives you some control over what is found.
Even if you aren’t looking for a job, keeping an online portfolio can be a way to keep track of your accomplishments and industry activities. Be sure to let your boss know about the site and make clear that you are using it to showcase your work as part of your long-term career goals.
Q. What does an online portfolio typically include?
A. It usually includes samples of your best work, including articles, reports, PowerPoint presentations and links to blog entries. Portfolios are especially useful for work that can be presented visually, like photography, illustrations and ad campaigns.
Lisa Vaughn-Olstad, a lead agent at the Boston-based staffing firm Aquent, recommends including an “About Me” page that lists work history, education, affiliations and accolades.
An online portfolio can also illuminate your thought processes. Scott Belsky, chief executive of Behance, an online platform for creative work, says that when managers look to hire or promote someone, they want to see more than just experience. “They are also looking for that person’s process, how they do their work, who they collaborate with, how they test ideas,” Mr. Belsky says.
Some portfolios show an early version of a project, the final version and the iterations in between, he says, or reveal a process by telling the story of how the project was accomplished.
Be sure to check with your company, though, to make sure that none of the information you are displaying is proprietary. And make sure you explain clearly whether you worked on a project individually or as part of a team.
A blog on your portfolio, or a link to your presence on a site like Tumblr, shows visitors what is interesting to you professionally and personally, says Ms. Vaughn-Olstad. “You might be blogging about your work with disabled children or on the membership committee for an advertising club,” she says.
Q. Online portfolios seem a natural fit for creative professionals, but are they useful for those in noncreative fields like accounting, finance or law?
A. Yes, because having a consistent, online record of your accomplishments will make you visible on the Web and stand out to recruiters, says Angela Hills, an executive vice president at Pinstripe, a recruitment company in a suburb of Milwaukee. People with very specific technical skills, like engineers and programmers, can show examples of Web sites they’ve built or projects that used a particular programming language. “Don’t just tell me you have this knowledge; show me how you used it,” Ms. Hills says.
Analysts in finance or health care might use a program like SlideShare to post their presentations or papers. But in highly regulated industries like financial services, it is especially important to be careful about posting company information. Always check with your organization about what you can legally add to your portfolio, Ms. Hills says.
Q. Where on the Web should you place your portfolio?
A. Platforms are available for creative professionals to display their work visually, including Behance, Carbonmade and Dripbook; depending on the platform and package, the cost ranges from free to about $40 a month.
Platforms like these can be lead generators, too, as they are often searched by people looking to hire, Mr. Belsky says. You can also register a domain name — often for less than $10 a year — and create your own regular Web site. Designing your site can cost thousands of dollars if you use a Web site designer, or less than $50 a month if you use a site building tool.
Q. Are there certain things you shouldn’t include in your portfolio?
A. Don’t put everything you’ve ever done in your portfolio, because that will overwhelm visitors. Choose your finest work, which may not necessarily be your most recent but represents you best professionally, says Avishai Abrahami, chief executive of Wix.com, a Web site building platform.
And think carefully before linking to your social media presence. “If you use Twitter to tweet about industry topics, definitely link to it,” he says. “But if you tweet about your dating, don’t.”
CAREER COUCH
July 1, 2012
Source: The New York Times, Sunday Business, p. 7
This is for your private use, only.
Showcasing Your Work, in an Online Portfolio
By EILENE ZIMMERMAN
Q. Some of your colleagues and friends have created Web sites listing their professional experience, credentials and samples of their work. Should you have some sort of online portfolio, too?
A. You may want to consider it. These days, one of the first things a recruiter or hiring manager does after receiving a promising lead is to search for the person on Google. Creating your own Web site or displaying your work on a larger platform gives you some control over what is found.
Even if you aren’t looking for a job, keeping an online portfolio can be a way to keep track of your accomplishments and industry activities. Be sure to let your boss know about the site and make clear that you are using it to showcase your work as part of your long-term career goals.
Q. What does an online portfolio typically include?
A. It usually includes samples of your best work, including articles, reports, PowerPoint presentations and links to blog entries. Portfolios are especially useful for work that can be presented visually, like photography, illustrations and ad campaigns.
Lisa Vaughn-Olstad, a lead agent at the Boston-based staffing firm Aquent, recommends including an “About Me” page that lists work history, education, affiliations and accolades.
An online portfolio can also illuminate your thought processes. Scott Belsky, chief executive of Behance, an online platform for creative work, says that when managers look to hire or promote someone, they want to see more than just experience. “They are also looking for that person’s process, how they do their work, who they collaborate with, how they test ideas,” Mr. Belsky says.
Some portfolios show an early version of a project, the final version and the iterations in between, he says, or reveal a process by telling the story of how the project was accomplished.
Be sure to check with your company, though, to make sure that none of the information you are displaying is proprietary. And make sure you explain clearly whether you worked on a project individually or as part of a team.
A blog on your portfolio, or a link to your presence on a site like Tumblr, shows visitors what is interesting to you professionally and personally, says Ms. Vaughn-Olstad. “You might be blogging about your work with disabled children or on the membership committee for an advertising club,” she says.
Q. Online portfolios seem a natural fit for creative professionals, but are they useful for those in noncreative fields like accounting, finance or law?
A. Yes, because having a consistent, online record of your accomplishments will make you visible on the Web and stand out to recruiters, says Angela Hills, an executive vice president at Pinstripe, a recruitment company in a suburb of Milwaukee. People with very specific technical skills, like engineers and programmers, can show examples of Web sites they’ve built or projects that used a particular programming language. “Don’t just tell me you have this knowledge; show me how you used it,” Ms. Hills says.
Analysts in finance or health care might use a program like SlideShare to post their presentations or papers. But in highly regulated industries like financial services, it is especially important to be careful about posting company information. Always check with your organization about what you can legally add to your portfolio, Ms. Hills says.
Q. Where on the Web should you place your portfolio?
A. Platforms are available for creative professionals to display their work visually, including Behance, Carbonmade and Dripbook; depending on the platform and package, the cost ranges from free to about $40 a month.
Platforms like these can be lead generators, too, as they are often searched by people looking to hire, Mr. Belsky says. You can also register a domain name — often for less than $10 a year — and create your own regular Web site. Designing your site can cost thousands of dollars if you use a Web site designer, or less than $50 a month if you use a site building tool.
Q. Are there certain things you shouldn’t include in your portfolio?
A. Don’t put everything you’ve ever done in your portfolio, because that will overwhelm visitors. Choose your finest work, which may not necessarily be your most recent but represents you best professionally, says Avishai Abrahami, chief executive of Wix.com, a Web site building platform.
And think carefully before linking to your social media presence. “If you use Twitter to tweet about industry topics, definitely link to it,” he says. “But if you tweet about your dating, don’t.”
___________________________________________________________________
The articles below will provide valuable guidance for a successful job finding
(Copyrighted material by Martin Yate CPC)
___________________________________________________________________
Without a doubt, the toughest interview question going the rounds is:
"Your job exists to help your employer achieve and maintain profitability.
How do your efforts support these goals?"
It's a question that can only be answered when you really understand the guts of the job you are pursuing.
How to ace the world's toughest job interview question
By Martin Yate CPC
Click green for further info
I've been writing about job interviews, from both sides of the desk, for twenty-five years and without a doubt, the toughest interview question going the rounds in 2012 is, "Your job exists to help your employer achieve and maintain profitability. How do your efforts support these goals?" It's a question that can only be answered when you really understand the guts of the job you are pursuing.
The question actually has two parts. The first part, your job exists to help your employer achieve and maintain profitability, shouldn't be too difficult because it is a statement of fact: all jobs exist to support profitability.
You need to think through whether your job is chiefly concerned with generating revenue, protecting assets, improving productivity in some way, or is perhaps a combination of these imperatives. Once you have determined this you have also outlined the correct framework for your answer.
The second part, how do your efforts support these goals, is much tougher to deal with. To answer effectively you need to grasp that the true guts of every job is essentially the same: to identify, prevent and solve problems that occur within your area of expertise, and in the process help your employer achieve and maintain profitability.
You answer by identifying for the interviewer, the ways that you make your small but important contributions towards achieving and maintaining profitability. You do this with these specific strategies:
a) You anticipate the ways that problems can arise in your areas of responsibility and explain how you execute your work with conscious concern for preventing many of the problems typical to your job from arising in the first place. You have an example or two ready.
b) You tackle and solve problems that do occur, because they cannot be prevented, in a timely, effective and professional manner. You'll have an example ready to illustrate how you do this.
c) Do so in a way that is courteous to customers, vendors, and considerate to those co-workers who in their jobs must deal with the results of your work. Again, you'll have recalled an example or two.
If you catch a break next time out and you aren't asked such a tough question, you can make major points with any hiring manager or recruiter by using this understanding to color the way you answer other questions.
Martin Yate takes readers through over two hundred perceptive answers to tough interview questions in (click the green) Knock'em Dead 2012, The Ultimate Job Search Guide (click the green) ,
in ways, like this one, that not only help you answer the question, but also help you grow professionally in the process.
________________________________________________________
The articles below will provide valuable guidance for a successful job finding
(Copyrighted material by Martin Yate CPC)
___________________________________________________________________
Without a doubt, the toughest interview question going the rounds is:
"Your job exists to help your employer achieve and maintain profitability.
How do your efforts support these goals?"
It's a question that can only be answered when you really understand the guts of the job you are pursuing.
How to ace the world's toughest job interview question
By Martin Yate CPC
Click green for further info
I've been writing about job interviews, from both sides of the desk, for twenty-five years and without a doubt, the toughest interview question going the rounds in 2012 is, "Your job exists to help your employer achieve and maintain profitability. How do your efforts support these goals?" It's a question that can only be answered when you really understand the guts of the job you are pursuing.
The question actually has two parts. The first part, your job exists to help your employer achieve and maintain profitability, shouldn't be too difficult because it is a statement of fact: all jobs exist to support profitability.
You need to think through whether your job is chiefly concerned with generating revenue, protecting assets, improving productivity in some way, or is perhaps a combination of these imperatives. Once you have determined this you have also outlined the correct framework for your answer.
The second part, how do your efforts support these goals, is much tougher to deal with. To answer effectively you need to grasp that the true guts of every job is essentially the same: to identify, prevent and solve problems that occur within your area of expertise, and in the process help your employer achieve and maintain profitability.
You answer by identifying for the interviewer, the ways that you make your small but important contributions towards achieving and maintaining profitability. You do this with these specific strategies:
a) You anticipate the ways that problems can arise in your areas of responsibility and explain how you execute your work with conscious concern for preventing many of the problems typical to your job from arising in the first place. You have an example or two ready.
b) You tackle and solve problems that do occur, because they cannot be prevented, in a timely, effective and professional manner. You'll have an example ready to illustrate how you do this.
c) Do so in a way that is courteous to customers, vendors, and considerate to those co-workers who in their jobs must deal with the results of your work. Again, you'll have recalled an example or two.
If you catch a break next time out and you aren't asked such a tough question, you can make major points with any hiring manager or recruiter by using this understanding to color the way you answer other questions.
Martin Yate takes readers through over two hundred perceptive answers to tough interview questions in (click the green) Knock'em Dead 2012, The Ultimate Job Search Guide (click the green) ,
in ways, like this one, that not only help you answer the question, but also help you grow professionally in the process.
________________________________________________________
Use Your Email Subject Line As Resume and Door Opener
By Martin Yate CPC
You want to get into conversation with recruiters and hiring managers as quickly and as often as you can, because initiating conversation is the fastest route to job interviews, job offers and out of this damn job search.
Whenever you find the name of a headhunter or hiring manager, email is likely going to be your first line of approach. But in an age when email has become the world’s pre-eminent communication tool, we all flounder in oceans of unwanted communications. To a recruiter or hiring manager you are an unknown correspondent, so your subject line can make the difference between a careful reading of your message and instant deletion.
With e-mail, the Subject Line is your attention grabber; it's your headline and your advertising pitch. In the same way that headlines on blogs, articles, books, and movies are used to grab readers' attention and draw them into the story, your subject line is what draws the reader into your e-mail. It needs to be intriguing, concise, and should allow the recipient to immediately recognize who you are and what you want, and you have to achieve this goal with limited space.
The subject line in an email inbox typically reveal about 60 characters, you need to take advantage of this advertising space and can do better than settle for subject lines that state, "Resume" or "Jim Smith’s Resume." If you are responding to a job posting, the job title and job posting number are useful as a start, you can add the credentials that you know are important from your reading of the job posting. For example:
You actually have enough space to turn your subject line into a condensed two-part resume.
Part One. The subject line of an unopened email in the average inbox will typically reveal a maximum of 60 characters. You want to get the most compelling information into less than 60 characters. This example uses 48 characters, with spaces:
Your next Reg HR Manager—EEOC, FLSA, & ADA exp
Part Two. An opened message will show usually show up to 150 characters, so an expanded subject line that captures more critical skills can act as a condensed resume. This example has an expanded subject line that comes in at 148 characters, including spaces.
Your next Reg HR Manager—EEOC, FLSA, ADA, OSHA. 10 years exp includes arbitration, campus, executive recruitment, selection, compensation, T&D
When you take full advantage of the available space in email subject lines, you can deliver a relevant and compelling headline that draws the reader into the message of your email with a condensed version of your resume. Try it, you have nothing to lose and everything to gain.
By Martin Yate CPC
You want to get into conversation with recruiters and hiring managers as quickly and as often as you can, because initiating conversation is the fastest route to job interviews, job offers and out of this damn job search.
Whenever you find the name of a headhunter or hiring manager, email is likely going to be your first line of approach. But in an age when email has become the world’s pre-eminent communication tool, we all flounder in oceans of unwanted communications. To a recruiter or hiring manager you are an unknown correspondent, so your subject line can make the difference between a careful reading of your message and instant deletion.
With e-mail, the Subject Line is your attention grabber; it's your headline and your advertising pitch. In the same way that headlines on blogs, articles, books, and movies are used to grab readers' attention and draw them into the story, your subject line is what draws the reader into your e-mail. It needs to be intriguing, concise, and should allow the recipient to immediately recognize who you are and what you want, and you have to achieve this goal with limited space.
The subject line in an email inbox typically reveal about 60 characters, you need to take advantage of this advertising space and can do better than settle for subject lines that state, "Resume" or "Jim Smith’s Resume." If you are responding to a job posting, the job title and job posting number are useful as a start, you can add the credentials that you know are important from your reading of the job posting. For example:
- Financial Analyst posting #MB450—CPA/MBA/8 yrs exp
- Posting # 2314—MIT Grad is interested
- Job #6745—Top performing sales professional wants to talk
- IT Manager—7 yrs IT Consulting
- Benefits Consultant—Nonprofit Exp in NY
- Referral from Tony Banks—Product Management Job
You actually have enough space to turn your subject line into a condensed two-part resume.
Part One. The subject line of an unopened email in the average inbox will typically reveal a maximum of 60 characters. You want to get the most compelling information into less than 60 characters. This example uses 48 characters, with spaces:
Your next Reg HR Manager—EEOC, FLSA, & ADA exp
Part Two. An opened message will show usually show up to 150 characters, so an expanded subject line that captures more critical skills can act as a condensed resume. This example has an expanded subject line that comes in at 148 characters, including spaces.
Your next Reg HR Manager—EEOC, FLSA, ADA, OSHA. 10 years exp includes arbitration, campus, executive recruitment, selection, compensation, T&D
When you take full advantage of the available space in email subject lines, you can deliver a relevant and compelling headline that draws the reader into the message of your email with a condensed version of your resume. Try it, you have nothing to lose and everything to gain.
Quote
"People usually fail when they are on the verge of success.
So give as much care to the end as to the beginning."
– Lao-Tzu, ancient Chinese philosopher Lao-Tzu is believed to have lived in the 4th century B.C. Little is known about him, but it is likely that he wrote the Tao te Ching, the foundation of Taoist philosophy, and engaged Confucius in debate, honing both men's belief systems. His name means either "old master" or the "old child," and one legend says he was born with white hair after spending 80 years in his mother's womb.
_______________________
"People usually fail when they are on the verge of success.
So give as much care to the end as to the beginning."
– Lao-Tzu, ancient Chinese philosopher Lao-Tzu is believed to have lived in the 4th century B.C. Little is known about him, but it is likely that he wrote the Tao te Ching, the foundation of Taoist philosophy, and engaged Confucius in debate, honing both men's belief systems. His name means either "old master" or the "old child," and one legend says he was born with white hair after spending 80 years in his mother's womb.
_______________________
Use Your Email Subject Line As Resume and Door Opener
Use Your Email Subject Line As Resume and Door Opener
You want to get into conversation with recruiters and hiring managers as quickly and as often as you can, because initiating conversation is the fastest route to job interviews, job offers and out of this damn job search.
Whenever you find the name of a headhunter or hiring manager, email is likely going to be your first line of approach. To a recruiter or hiring manager you are an unknown correspondent, so your subject line can make the difference between a careful reading of your message and instant deletion.
Find out how to grab readers' attention with your subject line.
Use Your Email Subject Line As Resume and Door Opener
You want to get into conversation with recruiters and hiring managers as quickly and as often as you can, because initiating conversation is the fastest route to job interviews, job offers and out of this damn job search.
Whenever you find the name of a headhunter or hiring manager, email is likely going to be your first line of approach. To a recruiter or hiring manager you are an unknown correspondent, so your subject line can make the difference between a careful reading of your message and instant deletion.
Find out how to grab readers' attention with your subject line.
When to decline the job offer
It’s hard to say no once you finally get a job offer. Many people jump at the first job offer that comes their way or feel pressured into accepting, even though the job may not meet their needs.
Read more...
Purdue Launches New Trimester Plan to Accelerate Graduation
Read more...
A Standout Resume Can Open Doors to New Job Opportunities
Read more...
More Ohio Jobs Expected to Go to Those with Advanced Postsecondary Degrees
Read more...
Ernst & Young LLP Adds $300,000 to Entrepreneurship Network
Read more...
What is your biggest failure?
Read more...
________________________________________
It’s hard to say no once you finally get a job offer. Many people jump at the first job offer that comes their way or feel pressured into accepting, even though the job may not meet their needs.
Read more...
Purdue Launches New Trimester Plan to Accelerate Graduation
Read more...
A Standout Resume Can Open Doors to New Job Opportunities
Read more...
More Ohio Jobs Expected to Go to Those with Advanced Postsecondary Degrees
Read more...
Ernst & Young LLP Adds $300,000 to Entrepreneurship Network
Read more...
What is your biggest failure?
Read more...
________________________________________
New Rules On Gift Cards
November 11, 2010 - The New York Times
Click links for added info
We’re not big fans of gift cards but we know that many people like the convenience of receiving them or buying them as gifts.
In fact, according to the results of a recent Visa telephone survey, 85 percent of survey respondents said they would “appreciate receiving a branded gift card” and 65 percent said they would prefer to receive such a card over another nonessential gift.
There is some good news for those consumers. Thanks to new laws, gift cards are now required to be more consumer friendly than in the past. But the cards still have a number of pitfalls, which consumers should be aware of as the holiday season approaches. Here are three ways recent regulations have changed gift card policies and three things consumers still need to watch out for.
The good:
1. Thanks to new rules that took effect in August, gift card funds must remain valid for at least five years from when the card was purchased or money was last loaded onto it, whichever occurred later.
2. In addition, no fees can be charged for cards that have been used in the past 12 months.
3. Gift cards must communicate the expiration date and fee policy information directly on the card itself.
The bad:
1. Thanks to an August amendment to the gift card rules, the cards don’t actually have to display the information about expiration dates and fee policies until the end of January and after the holidays. This means that even though the new rules apply and stores are supposed to have signs mentioning the new rules, cards purchased this holiday season may not spell out those new rules.
2. You still may be out of luck if you lose the card or it’s stolen since some providers don’t refund card funds or cards in such situations, according to Bankrate.com’s recently released 2010 Gift Card survey, a survey of the policies and fees of 54 gift cards.
3. According to Bankrate.com’s survey, inactivity fees -– after 12 to 24 months of nonuse — also remain something to watch for.
What consumer-friendly gift card policies and pitfalls did we miss? What are your plans for gift cards this holiday season?
____________________________
Financial - Rule of 72
* A useful tool for your investment planning
A rule of thumb for (click green) exponential growth (LAT. exponere = to put forth) at a constant rate.
An approximation of the doubling time formula used in population growth, according to which the doubling time is roughly equal to 70 divided by the percent growth rate (using continuous compounding, the actual number would be about 69.3147181 or 100 times the natural logarithm of 2). In terms of money, since we use the annual effective interest rate (which is equivalent to annual compounding) for interest rates between 4% and 12% the number which gives the most accurate result is actually 72. Therefore, divide 72 by the percent interest rate to determine the approximate amount of time to double your money in an investment.
For example, at 8% interest, your money will double in approximately 9 years (72/8 = 9)
____________________________
ADDITIONAL BUSINESS RELATED INFORMATION
SEE - TAB: services, SUB-TAB: Successology® - Success for Life
Advice for How to Create a Business and
Other Topics
Danger at Your Exit Interview
By Martin Yate CPC
In a recent CBS article about exit interviews that encouraged you to share your real thoughts and feelings with the exit interviewer, I was the lone dissenting voice.
When you resign you are firing your employer, in effect saying, "you aren't good enough for me anymore." This causes more work for your colleagues and isn't appreciated much by anyone; especially your boss for whom your resignation is at best a pain in the neck and at worst a black mark: a manager's job is to lose people on his or her timetable and not on yours.
Anything you say can be used against you
Exit interviews were conceived to provide corporate insights that might contribute to productivity and containment of costly employee turnover. Good concept, however from the POV of intelligent career management, saying anything beyond the professional not-burning-of-bridges has no upside for you, and unknown downsides.
At exit interviews, you have no control over the understanding, interpretation or use of anything you might say, so speaking truth to power rarely has any short or long-term benefits for you; beyond the pleasure of venting and the lip service you’ll receive in return.
Any commentary on personnel, processes and improvements you are likely to have made and had ignored before; they probably aren't going to be listened to now, especially from someone who is jumping ship.
Comments on "improvements" are particularly problematic because they are inherently critical of someone in a position of authority. In a worst-case scenario, that someone becomes aware of your constructive criticism and as you are no longer there…well you know how that story ends.
A career is a long time
If you were truly an exceptional employee who wasn't adequately recognized or rewarded, well that's often the luck of the draw. However, when the dust has settled and there is a noticeable void, the people who count will recall how valuable you were to the company. You will be remembered for how you performed your job everyday, not for what you said in an exit interview.
With good performance, these colleagues might one day try to recruit you, and would certainly look well upon your application to work with them again. This means you will have good references, and some valuable colleagues for your professional network. Why jeopardize the future by venting, for the nth time, the insoluble frustrations that eventually led you to quit, when logic tells you they will again be ignored or perhaps used against you in some way?
Enlightened self-interest says that at exit interviews, you should keep to "see no evil, hear no evil, speak no evil." These protocols evolved for good reasons. Keep your exit interviews short, professional and avoid anything that could be used against you at any point ion the future. A career is a long time and you may well meet these people again.
________________________________
By Martin Yate CPC
In a recent CBS article about exit interviews that encouraged you to share your real thoughts and feelings with the exit interviewer, I was the lone dissenting voice.
When you resign you are firing your employer, in effect saying, "you aren't good enough for me anymore." This causes more work for your colleagues and isn't appreciated much by anyone; especially your boss for whom your resignation is at best a pain in the neck and at worst a black mark: a manager's job is to lose people on his or her timetable and not on yours.
Anything you say can be used against you
Exit interviews were conceived to provide corporate insights that might contribute to productivity and containment of costly employee turnover. Good concept, however from the POV of intelligent career management, saying anything beyond the professional not-burning-of-bridges has no upside for you, and unknown downsides.
At exit interviews, you have no control over the understanding, interpretation or use of anything you might say, so speaking truth to power rarely has any short or long-term benefits for you; beyond the pleasure of venting and the lip service you’ll receive in return.
Any commentary on personnel, processes and improvements you are likely to have made and had ignored before; they probably aren't going to be listened to now, especially from someone who is jumping ship.
Comments on "improvements" are particularly problematic because they are inherently critical of someone in a position of authority. In a worst-case scenario, that someone becomes aware of your constructive criticism and as you are no longer there…well you know how that story ends.
A career is a long time
If you were truly an exceptional employee who wasn't adequately recognized or rewarded, well that's often the luck of the draw. However, when the dust has settled and there is a noticeable void, the people who count will recall how valuable you were to the company. You will be remembered for how you performed your job everyday, not for what you said in an exit interview.
With good performance, these colleagues might one day try to recruit you, and would certainly look well upon your application to work with them again. This means you will have good references, and some valuable colleagues for your professional network. Why jeopardize the future by venting, for the nth time, the insoluble frustrations that eventually led you to quit, when logic tells you they will again be ignored or perhaps used against you in some way?
Enlightened self-interest says that at exit interviews, you should keep to "see no evil, hear no evil, speak no evil." These protocols evolved for good reasons. Keep your exit interviews short, professional and avoid anything that could be used against you at any point ion the future. A career is a long time and you may well meet these people again.
________________________________
On January 11, 2011, relating to credit scores, an additional,
important legislation became available for U.S. consumers
Go to Video Worst things you can do to your credit score
The CEO of the FICO rating firm reveals two personal disasters to avoid at all costs.
Can take seven years to repair FICO score is used by over 90 % U.S. banks & lenders.
Related links
important legislation became available for U.S. consumers
Go to Video Worst things you can do to your credit score
The CEO of the FICO rating firm reveals two personal disasters to avoid at all costs.
Can take seven years to repair FICO score is used by over 90 % U.S. banks & lenders.
Related links
JOKE Investor A wealthy investor walked into a bank and said to the bank manager, "I would like to speak with Mr. Reginald Jones, who I understand is a tried and trusted employee of yours."
The banker said, "Yes he certainly was trusted. And he will be tried as soon as we catch him."
_________________________________
QUOTE
“Character is what you do when no one is watching.” (Dr. Christian, President, STAF, Inc.)
“Character is what you do when no one is watching.” (Dr. Christian, President, STAF, Inc.)
#1 Rule in investing:
Do your due diligence
Have someone competent checking on your research (except if you want to keep it as a secret)
Definition 'due diligence' = research and analysis of a company or organization done in preparation
for a business transaction (as a corporate merger or purchase of securities
______________________
Next below
How to invest?
Advice by
The World’s Richest
Millionaire - billionaire
because someone did it,
(1) you can do it and (2) your children can do it.
Learn to invest, take seminars, study books, study STAF, Inc.'s website, listen to
STAF, Inc.'s Radio Shows and watch STAF, Inc.'s TV Shows
(the Radio/TV Show links in this website tab: Radio/TV Shows)
EARLY on, as soon as at the age of 3 already (or even earlier), or as soon as you see this info,
start immediately guiding your children to get involved TODAY to learn to invest professionally
You can start with $50 (fifty). Yes: learn before starting blindly just to invest - just to start without any knowledge is a sure way to lose your money. Contact STAF, Inc. to get the contact info for the only 3 (three) investment companies STAF, Inc. endorses in the whole U.S. STAF, Inc. is available to give you information relating to different (mostly free) community training programs for children of any age - and, of course, for adults.
Be very careful with all types of investment counselors
UNTIL you learn enough about the investment field and the investment facts
_______________________________
Do your due diligence
Have someone competent checking on your research (except if you want to keep it as a secret)
Definition 'due diligence' = research and analysis of a company or organization done in preparation
for a business transaction (as a corporate merger or purchase of securities
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How to invest?
Advice by
The World’s Richest
Millionaire - billionaire
because someone did it,
(1) you can do it and (2) your children can do it.
Learn to invest, take seminars, study books, study STAF, Inc.'s website, listen to
STAF, Inc.'s Radio Shows and watch STAF, Inc.'s TV Shows
(the Radio/TV Show links in this website tab: Radio/TV Shows)
EARLY on, as soon as at the age of 3 already (or even earlier), or as soon as you see this info,
start immediately guiding your children to get involved TODAY to learn to invest professionally
You can start with $50 (fifty). Yes: learn before starting blindly just to invest - just to start without any knowledge is a sure way to lose your money. Contact STAF, Inc. to get the contact info for the only 3 (three) investment companies STAF, Inc. endorses in the whole U.S. STAF, Inc. is available to give you information relating to different (mostly free) community training programs for children of any age - and, of course, for adults.
Be very careful with all types of investment counselors
UNTIL you learn enough about the investment field and the investment facts
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The 5 C's of credit
Click the green title and each green below for further info
The five key elements a borrower should have to obtain credit: character (integrity), capacity (sufficient cash flow to service the obligation), capital (net worth), collateral (assets to secure the debt), and conditions (of the borrower and the overall economy).
Usage Example: The 5 C's of credit are essential to have before being able to borrow money or acquire credit.
_________________________
Complete guidance to
maintaining a perfect credit score, how to handle credit
& how to become a multi-milionaire
in tab:
Credit & Credit Cards - in addition to the material in this tab
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Click the green title and each green below for further info
The five key elements a borrower should have to obtain credit: character (integrity), capacity (sufficient cash flow to service the obligation), capital (net worth), collateral (assets to secure the debt), and conditions (of the borrower and the overall economy).
Usage Example: The 5 C's of credit are essential to have before being able to borrow money or acquire credit.
_________________________
Complete guidance to
maintaining a perfect credit score, how to handle credit
& how to become a multi-milionaire
in tab:
Credit & Credit Cards - in addition to the material in this tab
__________________________
Want to amass a fortune, legally, read this & apply
7 Secrets Wealthy People Know about
Amassing and Maintaining a Fortune
RELATED CONTENT click green:
7 Secrets Wealthy People Know about
Amassing and Maintaining a Fortune
- (Next below some vocabulary definitions)
- Becoming wealthy enough to keep the wolf from your door doesn't mean an end to unwanted callers.
- For every newly minted billionaire, there are cautionary tales of the well-heeled undone by visits from the the tax man, the loan officer and Uncle Sam himself.
A fortune requires finesse. As well as a willingness to embrace financial exotica, trips to Bermuda and the drive to start your own business--as a survey of FORBES' knowledge of the world's wealthiest people reveals. Below are seven tricks, secrets and maneuvers regularly conducted by those with more than a shekel or two to accumulate and maintain their fortunes.
1. Start Your Own Business
Warren Buffett, chairman and CEO of Berkshire Hathaway (AP/Nati Harnik)Click over to FORBES' roll of billionaires, and you'll notice something if you dig into the biographies. Nearly all of the 1,426 billionaires made their fortunes through an entrepreneurial spirit (or their fortunes come from a family member who created the business). Ten-figure sums aren't earned by rising through corporate ranks. They're made from creating the whole shebang from scratch. It will likely occur by happenstance, in the most unsuspecting of ways. Recall that the world's fourth richest man, the aforementioned Buffett, left the working world in 1955 with plans to retire. Shortly after, cajoled by a seven-person group of family and friends, twentysomething Buffett formed a partnership that laid the groundwork for his $53.5 billion fortune. He did so over a small dinner at the Omaha Club.
Click Billionaire Hedge Fund Managers
2. Put Growth Investments In A Roth IRA
The investments with the greatest potential for growth should go into a Roth IRA. They sit there tax free, and as long as you wait until the age requirement (59 and a half), withdraws won't be levied either. Employees at fast-growing private companies often go this route. Peter Thiel did it as CEO of PayPal in 2001, buying 1.7 million shares for 30 cents a share through his Roth. The 2002 eBay acquisition of PayPal make those shares produce a $31.5 million profit. The man who founded PayPal with Thiel, Max Levchin, has also done something similar. His Roth has already sold 3.1 million Yelp shares and holds another 3.9 million. Result: some $95 million that an elder Levchin can withdraw tax free.
3. Find Stocks You'll Never Sell
At the forefront of investing royalty in the last century was an intense man with round glasses from northern California named Philip Fisher. He became the first to author an investing book that cracked The New York Times bestseller list with Common Stocks and Uncommon Profits in 1958. It became an establishing text for modern growth investing, laying out a 15-point strategy that wound up catching the attention of a young man from Nebraska: Warren Buffett, who would make tens of billions of dollars through a combination of Fisher's tenets and those by value investing founding father Benjamin Graham.
Today, Fisher's son, Ken, is also a billionaire. He manages a $42 billion asset management company, and still calls northern California home. The younger Fisher is perhaps more value oriented than his father--especially favoring the price/sales ratio when assessing a company's worth--but there's a particular point in his father's work that he says is never far from his mind. Probably because it plays well in value investing, too. It's the idea that you buy a stock with the mentality to own it forever.
Papa Fisher had good reason to buy and never let go. He faced capital gains rates that topped 45%. (Today's, by contrast, cap gains are much lower at 20% or so.) He bought DuPont and Dow Chemical in the 1930s, selling them only four decades or so later. He picked up Motorola in the 1980s, and still owned shares when he died at age 96 in 2004.
Does such a mentality have a place in today's world of milisecond trading? "If done right, yes," says the younger Fisher. "People aren't perfect, though."
4. Insurance, Bermuda-Style
The latest tax loophole exploited by hedge funds involves the reinsurance business. A whole host of billionaire hedge fund managers have started Bermuda-based reinsurance companies since 2011, according to Bloomberg, and the roll includes bold-faced names like John Paulson, SAC Capital Advisors' Stevie Cohen, Third Point's Dan Loeb. (They were inspired by Greenlight Capital's David Einhorn.) By sending money through these companies, the hedge funds recycle it and reduce personal income taxes and delay the eventual tax bill. Normally the managers would be paying either ordinary income taxes (39.6%) or long-term capital gains taxes (20%).
5. Make Your Corporation Pay You
Actress Hilary Duff (Kevin Winter/Getty Images)Ever heard of these corporations: Screaming Lord Baltic, Flip-Flop Films or On Nets Above People? Probably not, unless you're toiling in Warner Brothers' back-office.
Each of those entities were incorporated by an entertainer, specifically those advised by Scott Feinstein, who reps celebs like Aaron Paul, Hilary Duff and Taylor Lautner. Feinstein suggests the maneuver because it allows clients to better manage taxes and expenses. Celebs many times have trouble deducting some of large business expenses they face. "These are people paying out like 20% or 40% in their income in expenses," to people like agents and managers, Feinstein says. Why can't the silver-screen crowd make the deductions? The Alternative Minimum Tax, something every American pays. "It effects something like 20 million Americans, and it limits how many expenses you take to eliminate your taxable income."
To get around this, celebs start a corporation and instruct producers to pay the corporation, not them directly. (The government made an exception for entertainers to earn wages this way, Feinstein says. You, in all likelihood, can not.) The corporation, in turn, pays the entourage, and the star emerges with a lowered taxable income.
Click 7 Secrets Wealthy People Know
While Feinstein favors this method, he refuses to take the blame for the oddity of the corporate names: "I tell them to come up with something that means something to them." Screaming Lord Baltic. Huh.
6. Think Like Zuck. Think Trusts
Doubts about Facebook the company's longevity aside, Mark Zuckerberg and his co-founder Dustin Moskovitz have already taken steps to secure their family's legacy. As FORBES reported last March, Zuckerberg and Moskovitz put pre-IPO stock into a type of financial instrument called a grantor retained annuity trust (GRAT). The pair, by FORBES estimates, wound up moving more than $200 million to the trusts. Future payouts will avoid the 45% gift tax that existed (in 2008) when these trusts were created. Perhaps not as cool as sliding $1 billion past the IRS, but a GRAT is especially useful for stashing away hard-to-value assets, like private companies shares, because it allows changes to the trust's details if you're audited.
7. Cash Flow Is Important. Buy MLPs (= master limited partnerships), Sell The Steak House
- Where does Brad Pitt put his multi-million-dollar paychecks? It's not too much to presume that he, like much of Hollywood, has money invested in master limited partnerships (MLPs). Conversations with five of Hollywood's top money managers revealed a cult following for these stocks, which generate strong yields and cash flow. Like real estate investment trusts, MLPs pay no taxes. Hence, they have more to share with investors, and payouts are more lightly taxed.
Click: The World's 20 Richest People
They're certainly more than one-hit wonders. The Alerian MLP (MLP definition after the following paragraph)
- Index's returns beat the S&P 500's on a 1-year, 3-year-, 5-year and 10-year basis. The index, holding some 50 MLPs, favors gas-and-oil infrastructure companies like Enterprise Products Partners, Kinder Morgan and Plains All American Pipeline.
Alan Goldman, a Los Angeles business manager with a star-studded rolodex and client roster, says he's often left talking his crew out of pitches on the next trendy restaurant, instead advising more consistent investments, like MLPs. "We find that they need to be more conservative than Joe Average." Goldman sighs. "The restaurants are very, very popular with entertainers. We look at something like a restaurant and just assume that the money is gone."
- Definition of 'Master Limited Partnership - MLP
- A type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP's cash flow, whereas the general partner is the party responsible for managing the MLP's affairs and receives compensation that is linked to the performance of the venture.
- Investopedia explains 'Master Limited Partnership - MLP'
- One of the most crucial criteria that must be met in order for a partnership to be legally classified as an MLP is that the partnership must derive most (~90%) of its cash flows from real estate, natural resources and commodities.
The advantage of an MLP is that it combines the tax benefits of a limited partnership (the partnership does not pay taxes from the profit - the money is only taxed when unitholders receive distributions) with the liquidity of a publicly traded company.
- Study all articles below - click the green title -
- you need all this information to grow rich
- Click green:
- The Workspaces Of The Most Influential Entrepreneurs
- 10 Easy Ways To Be More Productive At Work
- The World's Most Powerful Brands
- The Tax Benefits and Disadvantages of Investing in MLP Funds
- A Billion-Dollar Misunderstanding (in Gold)
- Hedge funds find new Swiss rules good for business
- Paulson's Advantage fund stung by plunge in gold
- Five Wall Street geniuses who didn’t see the gold crash coming
- Hedge Funds Heavy Hitters Pitch at Yankee Stadium
- Howard tops hedge fund rich list as wealth hits 1.5 billion pounds
- Top 25 hedge fund managers made $14 billion in 2012
- Top-earning hedge-fund chief takes home $2.2 billion in 2012
- Ten hedge fund managers each make more money than the ten best-paid US CEOs …
- SAC Capital loses staff in Hong Kong at challenging time
- Risking Jail in the Pursuit of Alpha
- Here’s the US tax rate on your income for every year since 1913
- Next Step for Taxes: You're Not Done Yet
- The Workspaces Of The Most Influential Entrepreneurs
- 10 Easy Ways To Be More Productive At Work
- The World's Most Powerful Brands
RELATED CONTENT click green:
- The Tax Benefits and Disadvantages of Investing in MLP Funds
- A Billion-Dollar Misunderstanding (in Gold)
- Hedge funds find new Swiss rules good for business
- Paulson's Advantage fund stung by plunge in gold
- Five Wall Street geniuses who didn’t see the gold crash coming
- Hedge Funds Heavy Hitters Pitch at Yankee Stadium
- Howard tops hedge fund rich list as wealth hits 1.5 billion pounds
- Top 25 hedge fund managers made $14 billion in 2012
- Top-earning hedge-fund chief takes home $2.2 billion in 2012
- Ten hedge fund managers each make more money than the ten best-paid US CEOs …
- SAC Capital loses staff in Hong Kong at challenging time
- Risking Jail in the Pursuit of Alpha
- Here’s the US tax rate on your income for every year since 1913
- Next Step for Taxes: You're Not Done Yet _________________________________________________________
Some vocabulary definitions for the above article
========================
Want to amass a fortune, legally, read this & apply
7 Secrets Wealthy People Know about Amassing
and Maintaining a Fortune
========================
fi·nesse /fiˈnes/
Noun
Intricate and refined delicacy.
Verb
Do (something) in a subtle and delicate manner.
Synonyms
artifice - trick - subtlety - delicacy
shek·el /ˈSHekəl/
Noun
Noun
A matter, operation, or set of circumstances: "the Mafia boss who's running the whole shebang".
Synonyms
affair - matter - thing - business - shack - hut
ca·jole /kəˈjōl/
Verb
Persuade someone to do something by sustained coaxing or flattery: "he cajoled her into selling the house"; "she cajoled to win his support".
Synonyms
coax - wheedle - blandish - flatter - persuade - adulate
mil·li·sec·ond /ˈmiləˌsekənd/
Noun
One thousandth of a second.
en·tou·rage /ˌänto͞oˈräZH/
Noun
A group of people attending or surrounding an important person.
Synonyms
retinue - suite - train - environment - surroundings
_________________________________________________________________
========================
Want to amass a fortune, legally, read this & apply
7 Secrets Wealthy People Know about Amassing
and Maintaining a Fortune
========================
fi·nesse /fiˈnes/
Noun
Intricate and refined delicacy.
Verb
Do (something) in a subtle and delicate manner.
Synonyms
artifice - trick - subtlety - delicacy
shek·el /ˈSHekəl/
Noun
- The basic monetary unit of modern Israel, equal to 100 agora.
- A silver coin and unit of weight used in ancient Israel and the Middle East.
Noun
A matter, operation, or set of circumstances: "the Mafia boss who's running the whole shebang".
Synonyms
affair - matter - thing - business - shack - hut
ca·jole /kəˈjōl/
Verb
Persuade someone to do something by sustained coaxing or flattery: "he cajoled her into selling the house"; "she cajoled to win his support".
Synonyms
coax - wheedle - blandish - flatter - persuade - adulate
mil·li·sec·ond /ˈmiləˌsekənd/
Noun
One thousandth of a second.
en·tou·rage /ˌänto͞oˈräZH/
Noun
A group of people attending or surrounding an important person.
Synonyms
retinue - suite - train - environment - surroundings
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TERM OF THE DAY
futures
Click green for further info
A standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. Unlike options, futures convey an obligation to buy. The risk to the holder is unlimited, and because the payoff pattern is symmetrical, the risk to the seller is unlimited as well. Dollars lost and gained by each party on a futures contract are equal and opposite. In other words, futures trading is a zero-sum game. Futures contracts are forward contracts, meaning they represent a pledge to make a certain transaction at a future date. The exchange of assets occurs on the date specified in the contract. Futures are distinguished from generic forward contracts in that they contain standardized terms, trade on a formal exchange, are regulated by overseeing agencies, and are guaranteed by clearinghouses. Also, in order to insure that payment will occur, futures have a margin requirement that must be settled daily. Finally, by making an offsetting trade, taking delivery of goods, or arranging for an exchange of goods, futures contracts can be closed. Hedgers often trade futures for the purpose of keeping price risk in check. Also called futures contract.
Learn more about this term Usage Example
An advantage of trading with futures is that the investor can make a lot of money in a short amount of time because prices often move more frequently than in other markets.
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futures
Click green for further info
A standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. Unlike options, futures convey an obligation to buy. The risk to the holder is unlimited, and because the payoff pattern is symmetrical, the risk to the seller is unlimited as well. Dollars lost and gained by each party on a futures contract are equal and opposite. In other words, futures trading is a zero-sum game. Futures contracts are forward contracts, meaning they represent a pledge to make a certain transaction at a future date. The exchange of assets occurs on the date specified in the contract. Futures are distinguished from generic forward contracts in that they contain standardized terms, trade on a formal exchange, are regulated by overseeing agencies, and are guaranteed by clearinghouses. Also, in order to insure that payment will occur, futures have a margin requirement that must be settled daily. Finally, by making an offsetting trade, taking delivery of goods, or arranging for an exchange of goods, futures contracts can be closed. Hedgers often trade futures for the purpose of keeping price risk in check. Also called futures contract.
Learn more about this term Usage Example
An advantage of trading with futures is that the investor can make a lot of money in a short amount of time because prices often move more frequently than in other markets.
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Report Exposes Secrets of Off-Shore Tax Havens
These havens are harboring an enormous amount of money. One study estimated the total could
be as high as $32 trillion. That's roughly the size of the U.S. and Japanese economies combined
By The International Consortium of Investigative Journalists & a global consortium of news outlets
Click green for further info
The off-shore tax havens of least 30 Americans accused of fraud, money laundering or other financial crimes have been unearthed in a groundbreaking report by The International Consortium of Investigative Journalists and a global consortium of news outlets.
The first articles based on a cache of 2.5 million files were published Thursday, exposing secrets of more than 120,000 offshore entities -- including shell corporations and legal structures known as trusts -- used to hide the finances of politicians, crooks and others from more than 170 nations.
These havens are harboring an enormous amount of money. One study estimated the total could be as high as $32 trillion. That's roughly the size of the U.S. and Japanese economies combined.
The documents give a first-ever look at how agents for giant private banks would incorporate companies in Caribbean and South Pacific micro-states. These companies would then have front people called "nominees" to serve, on paper, as directors and shareholders -- creating another layer of secrecy and protection for the companies' real owners.
The ICIJ's review of documents from just one company which sets up off-short companies and trusts, Singapore-based Portcullis TrustNet, identified 30 American clients who are in legal trouble for their financial dealings. According to the ICIJ, these include Paul Bilzerian, a corporate raider who was convicted of tax fraud and securities violations in 1989, and Raj Rajaratnam, a billionaire hedge fund manager who began serving an 11-year prison sentence in January for his role in one of the biggest insider trading scandals in U.S. history.
The documents also reveal detailed information about the financial dealings of array of notorious people and companies including international arms dealers, smugglers and a company the European Union says is a front for Iran's nuclear-development program. Records have also been found on:
-- Maria Imelda Marcos Manotoc, daughter of the late Philippine dictator Ferdinand Marcos. Following the release of the data, Philippine officials said they hope to learn if any of the money now held by Manotoc is part of the estimated $5 billion her father amassed through corruption.
-- Individuals and companies who stole $230 million from Russia's treasury in a case which strained U.S.-Russia relations and led to a ban on Americans adopting Russian orphans.
-- A Venezuelan man accused of using offshore companies to fund a U.S.-based Ponzi scheme and spending millions of dollars to bribe a Venezuelan government official.
-- A corporate mogul who got billions of dollars in contracts from the government of Azerbaijan while serving as a director of offshore companies owned by the Azerbaijani president's daughters.
The ICIJ and 86 investigative journalists worked for more than a year to make sense of the cache of 2.5 million files. The reporters came from new outlets in 46 countries, including The Guardian and the BBC in the U.K., Le Monde in France, Süddeutsche Zeitungand Norddeutscher Rundfunk in Germany, The Washington Post, the Canadian Broadcasting Corporation and 31 other media partners around the world.
Click green for further info
Source: The International Consortium of Investigative Journalists & a global consortium of news outlets
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Amancio Ortega had to drop out of school to work
Now he's worth more than Warren Buffett
Click green titles below for a video
Mogul now worth $53.6 billions
How he did it
Former delivery boy now worth $53.6 billion
Nine out of the world's 25 richest people made their fortunes in retail,
according to the Bloomberg Index
22 billionaires on the list have made their fortunes in technology,
and 14 are a part of a family business
"Billionaires do not become billionaires by getting into a diversified mutual fund or investing in an ETF or investing in the S&P Index Fund," Miller tells The Daily Ticker. "You get rich by building equity in a very concentrated position that is typically one big company."
S&P = (click green) Standard & Poor'swww.standardandpoors.com/ Ratings - S&P 500 - Careers - Insurance
November 2012 - Watch out Forbes: Bloomberg recently released the Bloomberg Billionaires Index which ranks the world's billionaires on a daily, instead of yearly, basis.
The Daily Ticker sat down with Bloomberg Billionaires Editor Matt Miller to discuss who the big winners and losers were, new additions to the index, and what billionaires can teach us about our own finances.
WINNERS AND LOSERS
Money can't buy happiness goes the old adage, but if it could Amancio Ortega would be floating on cloud nine.
Ortega is a relatively obscure 76-year-old retail magnate and founder of the Spanish company Inditex SA.
Inditex owns and operates various clothing brands with over 5,402 stores around the globe; the crown jewel of Inditex is Zara, which has over 1,600 store locations.
Between January and October of 2012, Ortega earned more than $18 billion -- that's around $66 million a day. During this short period he usurped Warren Buffett to become the third wealthiest person in the world with a net worth valued at $53.6 billion.
Ortega was born to a impoverished railway worker and had to drop out of school at 13 to work. He began as a delivery boy for a clothing shop and worked his way up to become a salesperson. While working retail Ortega had the idea to sell inexpensive versions of quilted bathrobes, claiming it was unfair that only wealthy woman could afford to dress well. He used this as the founding principle behind the rest of his retail ventures and built his empire on top of it.
Ortega's rapid gain corresponds with a general rise in retail stocks. Cheap supplies and increasing demand for moderately priced clothing have made it a good year for retailers. Nine out of the world's 25 richest people made their fortunes in retail, according to the Bloomberg Index.
Physics tells us that what goes up must come down and unfortunately that's exactly what happened to some billionaires' fortunes.
Ricardo Salinas Pliego who runs Grupo Elektra in Mexico is the biggest loser on the list. Pliego lost $9.1 billion year-to-date. His net worth is now $11.7 billion, making him the eightieth richest person in the world. The banking and media tycoon has seen the value of his stock holdings nearly cut in half since April 2012.
Another famous loser is Facebook's Mark Zuckerberg.
Before Facebook's IPO, Zuckerberg was estimated to be worth up to $20 billion. The social network's stock has underperformed since its May stock market debut Zuckerberg's net worth has dropped by $10.7 billion. But he's still the world's 88th richest person.
SURPRISE ADDITIONS
Bloomberg was able to uncover ten new billionaires who had never before been on an international wealth ranking.
Dirce Navarro de Camargo has become Brazil's wealthiest woman after inheriting her late husband's industrial empire, Camargo Correa SA. Camargo is the world's 60th richest person with a net worth of $13.1 billion.
Elaine Marshall owns a 15% stake in Koch Industries, with a net worth of $12.9 billion. She ranks as the 69th richest person in the world. Marshall, who is America's 4th richest woman, inherited the shares from her late husband, E. Pierce Marshall.
Marshall's last public appearance was in 1994 when her father-in-law's widow, Anna Nicole Smith, became entangled in a long legal battle over his trust. Marshall was ultimately granted his shares in Koch and now lives a quiet life in Dallas, Texas.
LEARNING FROM BILLIONAIRES
"Billionaires do not become billionaires by getting into a diversified mutual fund or investing in an ETF or investing in the S&P Index Fund," Miller tells The Daily Ticker. "You get rich by building equity in a very concentrated position that is typically one big company."
Most billionaires are also in the retail or commodity industries, he says. "Retail is a huge presence," Miller notes, adding that 26 billionaires on Bloomberg's list started their careers in retail.
Twenty-two billionaires on the list have made their fortunes in technology, and 14 are a part of a family business.
Overall, "it's been a great year for billionaires," Miller says. "If you look at the top 100 everyday, traditionally they've been up. The S&P is up for the year and private fortunes track public markets."
Click and study the following links
to get more investment & money market index information - necessary for your own investment learning, handling, and becoming a millionaire or as is possible, a billionaire
- World Stock Indexes - Bloombergwww.bloomberg.com/markets/stocks/world-indexes/
Updated world market index. Get a global market overview, current values and stock market data of major world indexes in America, Europe, Asia & Africa.
Asia-Pacific - Europe, Middle East & Africa - Americas - IBOV - List of Stock Indexes Worldwide - Bloombergwww.bloomberg.com/markets/indexes/
Search for major world and regional stock indexes. Find stock market indexes by name and country. - Bloomberg Billionaires Index News - Bloombergtopics.bloomberg.com/bloomberg-billionaires-index/
Breaking news about Bloomberg Billionaires Index. Find the latest articles, videos, photos and blogs about Bloomberg Billionaires Index.
Carlos Slim - Ingvar Kamprad - Amancio Ortega - Eike Batista - SPX Quote - S&P 500 Index - Bloombergwww.bloomberg.com/quote/SPX:IND
Index performance for S&P 500 Index (SPX) including value, chart, profile & other market data.
This article is for your private use, only
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Next Articles about
Warren Buffett
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Warren Buffett
One of the richest in the world
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Why Warren Buffett Is Right
About Raising Taxes on the Rich
Click green for further info
Dated: 11/26/12
Ask any non-partisan economist how this country can begin to address its debt and deficit problem, and the answer is "raise taxes and cut spending."Not raise taxes OR cut spending.
Raise taxes AND cut spending.
With the federal government currently spending about 22% of GDP per year and taxes pulling in only 17% of GDP, there's simply no way we can get the deficit under control just by cutting spending or raising taxes unless we crush the economy in the process.
On the spending side, the big long-term problems are the social and healthcare programs, so the attention should be focused there. Defense spending is also massive and can likely be trimmed without compromising the country's security.
On the tax side, meanwhile, the obvious place to look for potential increases is the place where taxes are relatively low. And one of those places is the tax rates that mostly benefit the highest-earning Americans--top-bracket income taxes, capital gains taxes, and dividend taxes.
The only argument against modestly raising these taxes, aside from the fact that no one wants to see their own personal taxes raised, is that increasing taxes on investing and earning will discourage the country's entrepreneurs and investors from building companies.
Related: Fixing the Fiscal Cliff: Is Hiking Taxes on the Rich the Answer?
In an op-ed in the New York Times, billionaire Warren Buffett gives this argument the only response it deserves: Ridicule.
Buffett says, as he has before, that modestly higher taxes would not cause him to work any less hard. He points out that, even in the 1960's and 1970's, eras with truly high taxes, these taxes did not stop him and his clients from pursuing investment opportunities. Lastly, he notes that, given the vast sums of money that the richest Americans have banked in the past decade, they will have plenty of money to invest even if taxes rise modestly.
And then Buffett lays out a series of proposals that are eminently reasonable.
Let's be clear: No one wants to pay higher taxes.
But to address our debt and deficit problems, we have to raise taxes.
And Warren Buffett is right: Raising taxes on the highest earning Americans back to levels that will still be historically low is a smart place to start.
Click green for further info
This article is for your private use, only
______________________________________
About Raising Taxes on the Rich
Click green for further info
Dated: 11/26/12
Ask any non-partisan economist how this country can begin to address its debt and deficit problem, and the answer is "raise taxes and cut spending."Not raise taxes OR cut spending.
Raise taxes AND cut spending.
With the federal government currently spending about 22% of GDP per year and taxes pulling in only 17% of GDP, there's simply no way we can get the deficit under control just by cutting spending or raising taxes unless we crush the economy in the process.
On the spending side, the big long-term problems are the social and healthcare programs, so the attention should be focused there. Defense spending is also massive and can likely be trimmed without compromising the country's security.
On the tax side, meanwhile, the obvious place to look for potential increases is the place where taxes are relatively low. And one of those places is the tax rates that mostly benefit the highest-earning Americans--top-bracket income taxes, capital gains taxes, and dividend taxes.
The only argument against modestly raising these taxes, aside from the fact that no one wants to see their own personal taxes raised, is that increasing taxes on investing and earning will discourage the country's entrepreneurs and investors from building companies.
Related: Fixing the Fiscal Cliff: Is Hiking Taxes on the Rich the Answer?
In an op-ed in the New York Times, billionaire Warren Buffett gives this argument the only response it deserves: Ridicule.
Buffett says, as he has before, that modestly higher taxes would not cause him to work any less hard. He points out that, even in the 1960's and 1970's, eras with truly high taxes, these taxes did not stop him and his clients from pursuing investment opportunities. Lastly, he notes that, given the vast sums of money that the richest Americans have banked in the past decade, they will have plenty of money to invest even if taxes rise modestly.
And then Buffett lays out a series of proposals that are eminently reasonable.
- First, he only calls for raising taxes on Americans earning more than $500,000 a year, not the $250,000 that President Obama is focused on. Families who earn $250,000 and live in major cities justifiably point out that this salary does not leave them feeling "rich." So, raising the definition of rich would go a long way toward making these tax hikes more palatable.
- Next, he calls for a minimum 30% tax on Americans making $1 million to $10 million or more, regardless of how this income is generated. One of the most egregious elements of the tax code is that some of America's highest earners pay much lower tax rates than average earners, because they generate their income from capital gains or dividends or have figured out how to shelter it by taking advantage of various loopholes. This tax would ensure that most income is treated the same way.
Let's be clear: No one wants to pay higher taxes.
But to address our debt and deficit problems, we have to raise taxes.
And Warren Buffett is right: Raising taxes on the highest earning Americans back to levels that will still be historically low is a smart place to start.
Click green for further info
This article is for your private use, only
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How to invest?
Advice by one of the world’s Richest
Warren Buffett
Quote
"The Noah rule:
Predicting rain doesn't count; building arks does."
Warren Buffett, the legendary American financier known as the Oracle of Omaha, is among the world's richest men (in some occasions has been the richest). He was born in Nebraska in 1930. As a youngster, he sold six-packs of Coke for a profit and first invested in the stock market at age 11. His first limited partnership reaped dividends up to 30 percent. He follows the simple but powerful principle that you should learn about the intrinsic value*)- see below)of a company before you invest. He is now the CEO of Berkshire Hathaway, a diversified holding company.
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Click the blue underlined (below) for added info:
In finance, intrinsic value refers to the value of a security which is intrinsic to or contained in the security itself. It is also frequently called fundamental value. It is ordinarily calculated by summing the future income generated by the asset, and discounting it to the present value.
________________
An intrinsic theory of value (also called theory of objective value) is any theory of value in economics
which holds that the value of an object, good or service, is intrinsic or contained in the item itself. Most such theories look to the process of producing an item, and the costs involved in that process, as a measure of the item's intrinsic value.
____________
Buffett's Value Formula
Click the blue underlined (below) for the analysis of the formula:
Warren Buffett Intrinsic Value Formula Warren Buffett uses a margin of safety and a government bond yield as a discount rate when he calculates the intrinsic value of a company.
www.moneychimp.com/articles/valuation/buffett_calc.htm - Cached
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Warren Buffett hasn't exactly published his formula for what he calls the intrinsic value of a company, but he has dropped a number of hints. He apparently multiplies estimated future earnings by a confidence margin between zero and a hundred percent (a bird in the bush being worth 0.5 birds in the hand, and all that; bush birds are the earnings you hope for, and hand birds are the earnings you're confident will materialize). He then compares these probable earnings with something he has total confidence in, by using a U.S. treasury yield as his discount rate. One other hint that Buffett has dropped over the years is that he can estimate value in his head in about five seconds; so whatever he does he keeps it simple.
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Why Index:
Indexing versus
Active Stock Trading
He'll look at indexing versus stock picking.
If you invest in individual stocks then you probably already understand some of the advantages of index funds that you're missing out on: your portfolio is certainly less diversified than it could be; and it's probably less tax efficient, and incurs more trading costs as well. To overcome that drag you must believe that your stock picking skills will beat the index in the long run.
Now some finance professors claim that nobody can beat the market; but that's clearly an exaggeration since some people have in fact done it. It may be hard to come up with many documented examples (just like it's hard to think of anybody who owns a platypus) but the one example that everybody agrees on is Warren Buffett.
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Click the blue (below) for an interesting test:
Personality Test
Click: Are you like Buffett?
Buffet's Personality Details
Buffett is:
(1) Unassuming nice person from Anytown, USA
(2) Likes hamburgers, ice cream
(3) Well groomed, good attitude
(4) Pretty careful about personal expenses, credit cards, etc.
(5) Studied finance at a good school (Columbia University) where he learned from a genius (Benjamin Graham)
who gave him an A+
(6) Gained experience by working for a genius (Graham again) for several years
(7) Has astonishing superhuman mental abilities, such as being able to memorize the earnings, cash flow, and book value of thousands of companies
(8) Likes baseball
(9) Plays bridge (with Bill Gates)
________________________________________________________________________
Click (below) for additional info
Warren Buffett - Wikipedia, the free encyclopedia Warren Edward Buffett is an American investor, industrialist, and philanthropist. He is one of the most successful investors in the world. Often called the "legendary investor Warren...
en.wikipedia.org/wiki/Warren_Buffett - 290k - Cached
____________________________________________________________________________
I M P O R T A N T
Want to amass a fortune, legally, read this & apply
7 Secrets Wealthy People Know about
Amassing and Maintaining a Fortune
_________________________
The article below gives inspiring information for any investor
Above you see another article titled: 7 secrets..... It is another important article full of precious wealth-building information. Find the article little further above.
_______________________
Want to amass a fortune, legally, read this & apply
7 Secrets Wealthy People Know about
Amassing and Maintaining a Fortune
_________________________
The article below gives inspiring information for any investor
Above you see another article titled: 7 secrets..... It is another important article full of precious wealth-building information. Find the article little further above.
_______________________
How the Richest 400 People in America Got So Rich
By Derek Thompson | The Atlantic – 18 hours ago - July 2012
Send an email to someone - share this important information
Our organization Save The American Family - STAF, Inc. has developed an investment program "Automatic Millionaire" - call as 212-946-123 for further details or send n email to STAF, Inc. - we'll guide you "HOW" and connect you to the 3 investment companies we endorse. The rest is up to you.
FIRST STUDY THE TEXT BELOW - YOU NEED TO KNOW THE FACTS
In 1992, the 400th richest person in America made $24 million.
In 2007, the 400th richest person in America made $138 million (or $87 million, inflation-adjusted).
Now, that almost certainly wasn't the same guy. There's a lot of churn at the top of the money pyramid.
In all of the 1990s, only 25% of the Fortunate 400 made more than one appearance. But the overall message is the same. The rich keep getting richer.
According to the IRS, which recently released 2009 data from the 400 richest individual income tax returns, the real runaway growth in wealth has come from capital gains. In the last years of the bubble, the "Fortunate 400" made nearly half their income from capital gains (a.k.a.: profit from the rising value of an investment, such as stocks or property) and less than 10% of their income from old-fashioned wages.
The average income of a top-400 earner grew by 650% between 1992 and 2007 to a whopping $344 million. Over that time, the average salary didn't even double. But the average capital gains haul increased by 1,200%. So how do the richest get richer? Not from their wages. From their investments.
Here's a look at the average salary and average capital gains income of a top-400 earner since 1992. Y-axis is labeled in thousands of dollars and all-time highs are noted in the graph.
Three last things:
(1) Who are these people? A 2010 study studied the top 0.1 percent, who currently make at least $1.7 million. That's 14-times less than our Fortunate 400 group, but it's the closest we've got. Four in ten in this group were executives, managers, and supervisors at nonfinancial firms. Eighteen percent were financiers. Next came law (7 percent), medicine (6 percent), and real estate (4 percent). My guess is that the top 400 skews toward finance and chief exec even stronger. A lawyer/doctor making $2 million I can imagine. But $24 million?
(2) Capital gains absolutely dictate the wealth of the richest Americans. As Matt O'Brien graphed for us, that's why the income of the top 0.1 percent hugs the S&P so closely.
(3) Remember that as this is happening, the long-term capital gains tax rate has fallen from 28 percent in 1990 to 20 percent for the latter half of the 1990s to 15 percent under George W. Bush.
Financially Fit Reveals 5 Secret Habits of Wealthy Americans:
More From The Atlantic
- The 11 Ways That Consumers Are Hopeless at Math
- Welcome to the McCovery! (Would You Like Jobs With That?)
- Welcome to the Recover ... Eh
@yahoofinance on Twitter, become a fan on Facebook
This article is for your private use, only
________________________________
AMERICA’S SMALLEST BANK:
State Bank , Oakwood, TX – 471 residents, 600 + customers, 3 employees (71 – 85 y), all equipment so old that hard to find anyone to fix if they break, 5 h open daily, closed 12-1 for lunch, 100 years old in 2010, doing well
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State Bank , Oakwood, TX – 471 residents, 600 + customers, 3 employees (71 – 85 y), all equipment so old that hard to find anyone to fix if they break, 5 h open daily, closed 12-1 for lunch, 100 years old in 2010, doing well
____________________________________
Good information - apply
The history of recorded stock market prices is
“the history of people making emotional mistakes”
If that observation this week from Adam Grimes -- chief investment officer of Waverly Advisors and author of “The Art and Science of Technical Analysis” – is correct, then it’s entirely possible that investors are looking at another moment of history, one of those points where fortunes are made or fumbled.It appears to be one of those times when investors will be able to look back and say, “Here is the decision that cinched (or ruined) my ability to retire on my own terms.”
A study released from BankRate.com noted that 76% of Americans say they are not more inclined to invest in the stock market right now, at a point where interest rates on savings accounts and certificates of deposits are at record lows but the stock market is at new highs. That’s the same percentage as a year ago, before the market had scaled new heights.
You could argue that it’s simply investors being cautious, feeling like a pullback or correction is inevitable and looking for a better time to deploy assets.
But you can’t argue that the actions of the Federal Reserve and chairman Ben Bernanke -- holding interest rates so low – essentially are a dare to investors to pursue stocks and other riskier assets in order to generate better returns. In this game of low-yield-or-dare, however, the numbers suggest that investors are lacking audacity.
“The memories of 2008 remain very fresh, and a lot of people felt burned not once but twice because they had the tech bust in 2000 and the financial crisis in ’08 and, after that, a lot of them swore off equities and so far they are holding to that,” said Greg McBride, senior financial analyst for BankRate.com.
The issue here is that investors are emotional, which leads to the wrong definition of risk.
They’re terrified of getting into the stock market because they see it as risky, so they cower in cash and bonds, thinking that it is safe.
In fact, it’s the other way around.
In the long run, investing too conservatively – especially if when combined with inadequate savings, and most financial advisers now say that even a 10%-of-income savings set-aside is insufficient – will leave you with a nest egg that is insufficient, that fails to maintain your buying power.
“Your risk in the long-term is not what happens in the short-term, day-to-day of the stock market,” said McBride. “Your risk in the long-term is that if you hunker down in conservative investments, you’re going to leave yourself well short of where you need to be.”
That raises a different concern.
Once that need to diversify and take on more risks becomes evident – or the feeling of falling further behind sets in – the investors on the sideline may just capitulate and come into the market, feeling that the higher the market goes the safer it becomes.
That, too, is the wrong answer, because new heights lead to new adjustments, retrenchments, retracements and corrections, increasing the potential for the twice-burned to get singed again, selling at the first sign of trouble.
In fact, that kind of emotional whipsaw is precisely what the smart money is counting on.
Richard Peterson of MarketPsych Data – who studies financial behavior – noted that investor reluctance is actually a bullish sign, with the market climbing the classic wall of worry. The problem is that the people who are most worried are the ones whose focus is on the wrong things, which ultimately will lead to the sub-optimal actions and sub-par returns.
“In the markets, if you invest when it feels good, the market will make you feel bad,” said Peterson. “You have to take risk when you don’t feel like taking risk … but to be able to stomach the pain and get into markets when it feels most difficult, that is what makes great traders.”
The traders don’t just see this playing out, they are counting on it, and planning to profit from it.
“I want those people trapped out of the market,” said Grimes. “I want them to have to scramble to buy. Their buying pressure [while giving in to emotions] when the market breaks to new highs is going to propel the market even higher. That, to me is another check in the bullish column.”
There’s nothing wrong with being prudent and conservative, well-diversified and savvy. Investors don’t need to rush headlong into the market, and should spread their equity stake over several asset categories as they accept the additional short-term risk that comes from being in the market.
But they should also be looking at their portfolios with an eye toward what their safety-first, save-what-I’ve-got-left strategy has cost them, not only in terms of the market’s rebound since the financial crisis, but for their long-term future.
“People look at the impact these moves have now, and they justify what feels good,” said McBride, “but they miss out on the impact this has over a lifetime. … If you bailed out in ‘08, you haven’t just missed out on the last four years, you have missed out on the impact this recovery would have over the rest of your lifetime.
“As Americans, people don’t save enough to reach their retirement goals based on the returns on very conservative investments,” McBride said. “You may not want to be in the stock market – now or ever – but you need the performance of equities… Now is the time when people will someday look back and say ‘I was risk averse, and that’s how I wound up well short of where I needed to get to with my finances. The question is whether you can see that happening to you now, and stop that behavior before it’s too late.”
Source:
Chuck Jaffe is a senior MarketWatch columnist. His work appears in many U.S. newspapers. Follow him on Twitter @MKTWJaffe.
____________________________________________________________
The history of recorded stock market prices is
“the history of people making emotional mistakes”
If that observation this week from Adam Grimes -- chief investment officer of Waverly Advisors and author of “The Art and Science of Technical Analysis” – is correct, then it’s entirely possible that investors are looking at another moment of history, one of those points where fortunes are made or fumbled.It appears to be one of those times when investors will be able to look back and say, “Here is the decision that cinched (or ruined) my ability to retire on my own terms.”
A study released from BankRate.com noted that 76% of Americans say they are not more inclined to invest in the stock market right now, at a point where interest rates on savings accounts and certificates of deposits are at record lows but the stock market is at new highs. That’s the same percentage as a year ago, before the market had scaled new heights.
You could argue that it’s simply investors being cautious, feeling like a pullback or correction is inevitable and looking for a better time to deploy assets.
But you can’t argue that the actions of the Federal Reserve and chairman Ben Bernanke -- holding interest rates so low – essentially are a dare to investors to pursue stocks and other riskier assets in order to generate better returns. In this game of low-yield-or-dare, however, the numbers suggest that investors are lacking audacity.
“The memories of 2008 remain very fresh, and a lot of people felt burned not once but twice because they had the tech bust in 2000 and the financial crisis in ’08 and, after that, a lot of them swore off equities and so far they are holding to that,” said Greg McBride, senior financial analyst for BankRate.com.
The issue here is that investors are emotional, which leads to the wrong definition of risk.
They’re terrified of getting into the stock market because they see it as risky, so they cower in cash and bonds, thinking that it is safe.
In fact, it’s the other way around.
In the long run, investing too conservatively – especially if when combined with inadequate savings, and most financial advisers now say that even a 10%-of-income savings set-aside is insufficient – will leave you with a nest egg that is insufficient, that fails to maintain your buying power.
“Your risk in the long-term is not what happens in the short-term, day-to-day of the stock market,” said McBride. “Your risk in the long-term is that if you hunker down in conservative investments, you’re going to leave yourself well short of where you need to be.”
That raises a different concern.
Once that need to diversify and take on more risks becomes evident – or the feeling of falling further behind sets in – the investors on the sideline may just capitulate and come into the market, feeling that the higher the market goes the safer it becomes.
That, too, is the wrong answer, because new heights lead to new adjustments, retrenchments, retracements and corrections, increasing the potential for the twice-burned to get singed again, selling at the first sign of trouble.
In fact, that kind of emotional whipsaw is precisely what the smart money is counting on.
Richard Peterson of MarketPsych Data – who studies financial behavior – noted that investor reluctance is actually a bullish sign, with the market climbing the classic wall of worry. The problem is that the people who are most worried are the ones whose focus is on the wrong things, which ultimately will lead to the sub-optimal actions and sub-par returns.
“In the markets, if you invest when it feels good, the market will make you feel bad,” said Peterson. “You have to take risk when you don’t feel like taking risk … but to be able to stomach the pain and get into markets when it feels most difficult, that is what makes great traders.”
The traders don’t just see this playing out, they are counting on it, and planning to profit from it.
“I want those people trapped out of the market,” said Grimes. “I want them to have to scramble to buy. Their buying pressure [while giving in to emotions] when the market breaks to new highs is going to propel the market even higher. That, to me is another check in the bullish column.”
There’s nothing wrong with being prudent and conservative, well-diversified and savvy. Investors don’t need to rush headlong into the market, and should spread their equity stake over several asset categories as they accept the additional short-term risk that comes from being in the market.
But they should also be looking at their portfolios with an eye toward what their safety-first, save-what-I’ve-got-left strategy has cost them, not only in terms of the market’s rebound since the financial crisis, but for their long-term future.
“People look at the impact these moves have now, and they justify what feels good,” said McBride, “but they miss out on the impact this has over a lifetime. … If you bailed out in ‘08, you haven’t just missed out on the last four years, you have missed out on the impact this recovery would have over the rest of your lifetime.
“As Americans, people don’t save enough to reach their retirement goals based on the returns on very conservative investments,” McBride said. “You may not want to be in the stock market – now or ever – but you need the performance of equities… Now is the time when people will someday look back and say ‘I was risk averse, and that’s how I wound up well short of where I needed to get to with my finances. The question is whether you can see that happening to you now, and stop that behavior before it’s too late.”
Source:
Chuck Jaffe is a senior MarketWatch columnist. His work appears in many U.S. newspapers. Follow him on Twitter @MKTWJaffe.
____________________________________________________________
Two Important Market Indicators to Watch
Gerald Appel & Marvin Appel, PhD, CEO - Signalert Corporation
You want or need to make more money, Gerald Appel and Marvin Appel, PhD, father-and-son coauthors of Beating the Market, 3 Months at a Time, share two simple short-term measurements that have proven highly reliable in predicting what the stock market will do next.
Gerald Appel, president of Signalert Corporation, an investment advisory firm in Great Neck, New York, that manages $225 million for investors. The author or coauthor of more than 15 investment books, he is regarded as one of the patriarchs of technical market analysis, and Marvin Appel, PhD, CEO of Signalert and editor of the market-timing newsletter Systems & Forecasts (www.SystemsAndForecasts.com). Marvin, who is Gerald’s son, has been a financial consultant to the New York State Legislature. They are coauthors of Beating the Market, 3 Months at a Time
(FT Press).
Two simple short-term measurements have proved to be effective and reliable indicators of the risk associated with investing in the stock market. Following these indicators isn’t a way to get rich quick. But over time, they can help save you from being too optimistic and getting burned or being too fearful and missing out on potential profits...
10-day high-low average: This indicator tracks the number of New York Stock Exchange stocks hitting new 52-week highs in price divided by the total number making new 52-week highs and lows.
Example: If 100 stocks reach their highest prices of the past year and nine hit their lowest, then the high-low average is 92% (100 ÷ 109) -- where we were recently, down from 99% in early 2009.
Why it is useful. You want to be heavily in the stock market whenever this indicator is rising and hits 90% or more. That’s because more and more stocks are participating in the rally, investors are pouring money into the market and it’s gaining strength. However, when the indicator drops below 80%, it’s historically been a good time to reduce your positions.
You can find these figures each day at The Wall Street Journal online market data center (www.wsj.com, click on "Markets," "Market Data" then under "US Stocks," click on "New Highs & Lows").
VIX: This is the ticker symbol for the Chicago Board Options Exchange Volatility Index, which is a popular measure of how much fear investors have about the future direction of the S&P 500.
When a large number of traders become fearful and sell indiscriminately, VIX levels rise. The index hit an all-time intra-day high of 89.53 on October 24, 2008. When market conditions improve, stock price movements generally become more orderly and the index declines. The end points of market declines are frequently signaled when the index rises to very high levels, perhaps 40 to 45 or more, and then turn down, indicating a reduction in market instability.
Why it is useful: A gradual decline from levels in the 20s or higher down to levels of 20 or below usually indicates a more stable stock market and may be a bullish signal. However, if the VIX declines to very low levels, perhaps 10 to 12, this often is an indication that investors have become too complacent, and it may be a bearish sign for stocks.
Example: The VIX dropped to as low as 10 in 2007, just a few months before the start of the 2008-2009 bear market. Recently, the VIX has been between 18 and 20, which generally indicates a stable market. Investors should get nervous if the VIX drops again to 10 to 12 or rises above 25.
You can find the current VIX reading at www.cboe.com/VIX.
Gerald Appel, president of Signalert Corporation, an investment advisory firm in Great Neck, New York, that manages $225 million for investors. The author or coauthor of more than 15 investment books, he is regarded as one of the patriarchs of technical market analysis, and Marvin Appel, PhD, CEO of Signalert and editor of the market-timing newsletter Systems & Forecasts(www.SystemsAndForecasts.com). Marvin, who is Gerald’s son, has been a financial consultant to the New York State Legislature. They are coauthors of Beating the Market, 3 Months at a Time
(FT Press).
_______________________________
Gerald Appel & Marvin Appel, PhD, CEO - Signalert Corporation
You want or need to make more money, Gerald Appel and Marvin Appel, PhD, father-and-son coauthors of Beating the Market, 3 Months at a Time, share two simple short-term measurements that have proven highly reliable in predicting what the stock market will do next.
Gerald Appel, president of Signalert Corporation, an investment advisory firm in Great Neck, New York, that manages $225 million for investors. The author or coauthor of more than 15 investment books, he is regarded as one of the patriarchs of technical market analysis, and Marvin Appel, PhD, CEO of Signalert and editor of the market-timing newsletter Systems & Forecasts (www.SystemsAndForecasts.com). Marvin, who is Gerald’s son, has been a financial consultant to the New York State Legislature. They are coauthors of Beating the Market, 3 Months at a Time
(FT Press).
Two simple short-term measurements have proved to be effective and reliable indicators of the risk associated with investing in the stock market. Following these indicators isn’t a way to get rich quick. But over time, they can help save you from being too optimistic and getting burned or being too fearful and missing out on potential profits...
10-day high-low average: This indicator tracks the number of New York Stock Exchange stocks hitting new 52-week highs in price divided by the total number making new 52-week highs and lows.
Example: If 100 stocks reach their highest prices of the past year and nine hit their lowest, then the high-low average is 92% (100 ÷ 109) -- where we were recently, down from 99% in early 2009.
Why it is useful. You want to be heavily in the stock market whenever this indicator is rising and hits 90% or more. That’s because more and more stocks are participating in the rally, investors are pouring money into the market and it’s gaining strength. However, when the indicator drops below 80%, it’s historically been a good time to reduce your positions.
You can find these figures each day at The Wall Street Journal online market data center (www.wsj.com, click on "Markets," "Market Data" then under "US Stocks," click on "New Highs & Lows").
VIX: This is the ticker symbol for the Chicago Board Options Exchange Volatility Index, which is a popular measure of how much fear investors have about the future direction of the S&P 500.
When a large number of traders become fearful and sell indiscriminately, VIX levels rise. The index hit an all-time intra-day high of 89.53 on October 24, 2008. When market conditions improve, stock price movements generally become more orderly and the index declines. The end points of market declines are frequently signaled when the index rises to very high levels, perhaps 40 to 45 or more, and then turn down, indicating a reduction in market instability.
Why it is useful: A gradual decline from levels in the 20s or higher down to levels of 20 or below usually indicates a more stable stock market and may be a bullish signal. However, if the VIX declines to very low levels, perhaps 10 to 12, this often is an indication that investors have become too complacent, and it may be a bearish sign for stocks.
Example: The VIX dropped to as low as 10 in 2007, just a few months before the start of the 2008-2009 bear market. Recently, the VIX has been between 18 and 20, which generally indicates a stable market. Investors should get nervous if the VIX drops again to 10 to 12 or rises above 25.
You can find the current VIX reading at www.cboe.com/VIX.
Gerald Appel, president of Signalert Corporation, an investment advisory firm in Great Neck, New York, that manages $225 million for investors. The author or coauthor of more than 15 investment books, he is regarded as one of the patriarchs of technical market analysis, and Marvin Appel, PhD, CEO of Signalert and editor of the market-timing newsletter Systems & Forecasts(www.SystemsAndForecasts.com). Marvin, who is Gerald’s son, has been a financial consultant to the New York State Legislature. They are coauthors of Beating the Market, 3 Months at a Time
(FT Press).
_______________________________
Analysis: Stockton, California new paradigm for struggling cities
By Hilary Russ | Reuters 7/1/2012
NEW YORK (Reuters) - Stockton, California, the largest city in the United States to ever file for bankruptcy, could create a new template for struggling cities and potentially lift the stigma that scars municipalities if they seek court protection from creditors.
If Stockton, which filed for Chapter 9 municipal bankruptcy on June 28, can reach consensus with its creditors and craft a plan to exit bankruptcy quickly others may follow suit, legal experts said.
"Successful cases breed more filings," said Andrew Glenn, a bankruptcy partner in New York at Kasowitz Benson Torres & Friedman. "Municipalities watch these cases closely around the country, and once the template is set up, if other towns have these problems, they're going to follow the template."
Other cities and counties have gone bankrupt because of a bad investment or ill-conceived public works project, like the sewer system that sank Jefferson County, Alabama, into $3.14 billion of debt.
But Stockton may be a new breed of failing city, swamped by routine costs, pension payments, a payroll for city employees, a years-long economic slide and depressed housing tax receipts - the same issues that currently face many other cities still struggling to recover from the cavernous U.S. recession.
"Stockton is a precursor of something very different" from Jefferson County, Glenn said. "That's what makes it sort of a game-changing type of a case."
It will be the first case to test California's mandated mediation process. State lawmakers changed the rules after the city of Vallejo went bankrupt in 2008 and then slogged through a three-year bankruptcy battle that racked up at least $10 million in attorneys' fees.
Now, unless they declare a fiscal emergency, California municipalities must participate in mediation before they are allowed to file for bankruptcy.
Each state has different requirements for cities and towns that want to file for Chapter 9 bankruptcy.
Some use budget commissions, receivers and other measures to try to help resuscitate cities before allowing them to go bankrupt as a last resort. Nearly half of U.S. states don't allow municipal bankruptcies at all.
James Spiotto, a partner at Chapman and Cutler in Chicago, said California is the only state that requires mediation prior to a Chapter 9 filing. A similar proposal failed to pass the Illinois legislature this session, he said.
He also noted in a recent national survey of Chapter 9 state provisions that California labor unions supported the mediation law as "a reaction to the difficulties they experienced in the city of Vallejo Chapter 9 bankruptcy proceeding."
'A HUGE LEG UP'
Though the mediation process didn't stave off the bankruptcy for Stockton, lawyers said it forced the city and creditors to talk to each other ahead of time and put the city in a better position going into court - and could result in a quicker exit from the case.
"Stockton is incredibly well-prepared for a bankruptcy filing and very forthcoming in terms of disclosing to creditors and the public," said Karol Denniston, a bankruptcy partner at Schiff Hardin in San Francisco.
A third of Stockton's creditors reached agreements with the city during mediation, giving the city "a huge leg up, because at least they're not filing bankruptcy like Vallejo did, fighting with everybody," she said.
That result will also allow the city to show a bankruptcy judge it has tried in good faith to negotiate with creditors and is truly insolvent - requirements a California city must normally meet for a bankruptcy filing to be ruled valid.
One big step Stockton is not expected to take is to attempt to dodge its pension obligations to city employees.
If it did, the city would have to confront the powerful California Public Employees' Retirement System (Calpers), which handles pension plans for many California cities and counties.
Calpers and unions around the country have made it clear they see a pension as an iron-clad right, one that's legally protected even in a bankruptcy.
Whether pensions are contract rights, which can be changed, or property rights, which are protected under the U.S. Constitution, has never been tested in court.
That's largely because of the time, money and emotional effort it would take for a municipality to fight deep-pocketed and politically connected pension systems to full resolution at an appellate level, experts said.
"Calpers is going to push back hammer and tong," said Kenneth Klee, a professor at the University of California at Los Angeles Law School.
Public employees pensions weren't challenged by Vallejo, which used the same attorneys Stockton has hired.
BANKRUPTCY A LAST RESORT
Even so, bankruptcy is no easy road for municipalities. Business leaders in Jefferson County, which last year filed the biggest-ever U.S. municipal bankruptcy, at $4.23 billion have said the bankruptcy has deterred industrial investment.
Stockton, as a case everyone's watching, could also be a deterrent to some other cities.
"The threat of bankruptcy is quite a lever, particularly if people believe it's a realistic threat," said Mark Kalla, a partner at Barnes & Thornburg in Minneapolis. "It may make other cities' negotiations more successful, more fruitful."
The possibility that Providence, Rhode Island could run out of money and eventually have to file for bankruptcy prompted labor unions, retirees and city officials to come to the table and reach a tentative deal in May on pension and healthcare benefit reforms.
Firefighters, police officers and city workers could have faced more layoffs, and retirees could have seen steep cuts in benefits, if the city went under.
Retirees have approved the agreement, and if union members sign off the deal is expected to save the city up to $18.5 million a year and help avert insolvency.
Cities may also be drawn to negotiate because they need good credit ratings to borrow money at affordable rates - ratings that are harmed by defaults on loans and bankruptcy filings.
Both Standard & Poor's Rating Services and Moody's Investors Service cut Stockton's credit ratings in the days leading up to its bankruptcy filing.
"This is a case the whole country is watching," Denniston said. "It is a case where we're all looking to see if we can create a better way to do this."
(Reporting by Hilary Russ; Additional reporting by Jim Christie in San Francisco;, Editing by Tiziana Barghini; and Todd Eastham)
_____________________________
By Hilary Russ | Reuters 7/1/2012
NEW YORK (Reuters) - Stockton, California, the largest city in the United States to ever file for bankruptcy, could create a new template for struggling cities and potentially lift the stigma that scars municipalities if they seek court protection from creditors.
If Stockton, which filed for Chapter 9 municipal bankruptcy on June 28, can reach consensus with its creditors and craft a plan to exit bankruptcy quickly others may follow suit, legal experts said.
"Successful cases breed more filings," said Andrew Glenn, a bankruptcy partner in New York at Kasowitz Benson Torres & Friedman. "Municipalities watch these cases closely around the country, and once the template is set up, if other towns have these problems, they're going to follow the template."
Other cities and counties have gone bankrupt because of a bad investment or ill-conceived public works project, like the sewer system that sank Jefferson County, Alabama, into $3.14 billion of debt.
But Stockton may be a new breed of failing city, swamped by routine costs, pension payments, a payroll for city employees, a years-long economic slide and depressed housing tax receipts - the same issues that currently face many other cities still struggling to recover from the cavernous U.S. recession.
"Stockton is a precursor of something very different" from Jefferson County, Glenn said. "That's what makes it sort of a game-changing type of a case."
It will be the first case to test California's mandated mediation process. State lawmakers changed the rules after the city of Vallejo went bankrupt in 2008 and then slogged through a three-year bankruptcy battle that racked up at least $10 million in attorneys' fees.
Now, unless they declare a fiscal emergency, California municipalities must participate in mediation before they are allowed to file for bankruptcy.
Each state has different requirements for cities and towns that want to file for Chapter 9 bankruptcy.
Some use budget commissions, receivers and other measures to try to help resuscitate cities before allowing them to go bankrupt as a last resort. Nearly half of U.S. states don't allow municipal bankruptcies at all.
James Spiotto, a partner at Chapman and Cutler in Chicago, said California is the only state that requires mediation prior to a Chapter 9 filing. A similar proposal failed to pass the Illinois legislature this session, he said.
He also noted in a recent national survey of Chapter 9 state provisions that California labor unions supported the mediation law as "a reaction to the difficulties they experienced in the city of Vallejo Chapter 9 bankruptcy proceeding."
'A HUGE LEG UP'
Though the mediation process didn't stave off the bankruptcy for Stockton, lawyers said it forced the city and creditors to talk to each other ahead of time and put the city in a better position going into court - and could result in a quicker exit from the case.
"Stockton is incredibly well-prepared for a bankruptcy filing and very forthcoming in terms of disclosing to creditors and the public," said Karol Denniston, a bankruptcy partner at Schiff Hardin in San Francisco.
A third of Stockton's creditors reached agreements with the city during mediation, giving the city "a huge leg up, because at least they're not filing bankruptcy like Vallejo did, fighting with everybody," she said.
That result will also allow the city to show a bankruptcy judge it has tried in good faith to negotiate with creditors and is truly insolvent - requirements a California city must normally meet for a bankruptcy filing to be ruled valid.
One big step Stockton is not expected to take is to attempt to dodge its pension obligations to city employees.
If it did, the city would have to confront the powerful California Public Employees' Retirement System (Calpers), which handles pension plans for many California cities and counties.
Calpers and unions around the country have made it clear they see a pension as an iron-clad right, one that's legally protected even in a bankruptcy.
Whether pensions are contract rights, which can be changed, or property rights, which are protected under the U.S. Constitution, has never been tested in court.
That's largely because of the time, money and emotional effort it would take for a municipality to fight deep-pocketed and politically connected pension systems to full resolution at an appellate level, experts said.
"Calpers is going to push back hammer and tong," said Kenneth Klee, a professor at the University of California at Los Angeles Law School.
Public employees pensions weren't challenged by Vallejo, which used the same attorneys Stockton has hired.
BANKRUPTCY A LAST RESORT
Even so, bankruptcy is no easy road for municipalities. Business leaders in Jefferson County, which last year filed the biggest-ever U.S. municipal bankruptcy, at $4.23 billion have said the bankruptcy has deterred industrial investment.
Stockton, as a case everyone's watching, could also be a deterrent to some other cities.
"The threat of bankruptcy is quite a lever, particularly if people believe it's a realistic threat," said Mark Kalla, a partner at Barnes & Thornburg in Minneapolis. "It may make other cities' negotiations more successful, more fruitful."
The possibility that Providence, Rhode Island could run out of money and eventually have to file for bankruptcy prompted labor unions, retirees and city officials to come to the table and reach a tentative deal in May on pension and healthcare benefit reforms.
Firefighters, police officers and city workers could have faced more layoffs, and retirees could have seen steep cuts in benefits, if the city went under.
Retirees have approved the agreement, and if union members sign off the deal is expected to save the city up to $18.5 million a year and help avert insolvency.
Cities may also be drawn to negotiate because they need good credit ratings to borrow money at affordable rates - ratings that are harmed by defaults on loans and bankruptcy filings.
Both Standard & Poor's Rating Services and Moody's Investors Service cut Stockton's credit ratings in the days leading up to its bankruptcy filing.
"This is a case the whole country is watching," Denniston said. "It is a case where we're all looking to see if we can create a better way to do this."
(Reporting by Hilary Russ; Additional reporting by Jim Christie in San Francisco;, Editing by Tiziana Barghini; and Todd Eastham)
_____________________________
July 1, 2012
Source:
The New York Times - Sunday Business, p. 1
For your private use, only
How Delaware Thrives as a Corporate Tax Haven
By LESLIE WAYNE
WILMINGTON, Del. - NOTHING about 1209 North Orange Street hints at the secrets inside. It’s a humdrum office building, a low-slung affair with a faded awning and a view of a parking garage. Hardly worth a second glance. If a first one.
But behind its doors is one of the most remarkable corporate collections in the world: 1209 North Orange, you see, is the legal address of no fewer than 285,000 separate businesses.
Its occupants, on paper, include giants like American Airlines, Apple, Bank of America, Berkshire Hathaway, Cargill, Coca-Cola, Ford, General Electric, Google, JPMorgan Chase, and Wal-Mart. These companies do business across the nation and around the world. Here at 1209 North Orange, they simply have a dropbox.
What attracts these marquee names to 1209 North Orange and to other Delaware addresses also attracts less-upstanding corporate citizens. For instance, 1209 North Orange was, until recently, a business address of Timothy S. Durham, known as “the Midwest Madoff.” On June 20, Mr. Durham was found guilty of bilking 5,000 mostly middle-class and elderly investors out of $207 million. It was also an address of Stanko Subotic, a Serbian businessman and convicted smuggler — just one of many Eastern Europeans drawn to the state.
Big corporations, small-time businesses, rogues, scoundrels and worse — all have turned up at Delaware addresses in hopes of minimizing taxes, skirting regulations, plying friendly courts or, when needed, covering their tracks. Federal authorities worry that, in addition to the legitimate businesses flocking here, drug traffickers, embezzlers and money launderers are increasingly heading to Delaware, too. It’s easy to set up shell companies here, no questions asked.
“Shells are the No. 1 vehicle for laundering illicit money and criminal proceeds,” said Lanny A. Breuer, assistant attorney general for the criminal division of the Justice Department. “It’s an enormous criminal justice problem. It’s ridiculously easy for a criminal to set up a shell corporation and use the banking system, and we have to stop it.”
In these troubled economic times, when many states are desperate for tax dollars, Delaware stands out in sharp relief. The First State, land of DuPont, broiler chickens and, as it happens, Vice President Joseph R. Biden Jr., increasingly resembles a freewheeling offshore haven, right on America’s shores. Officials in other states complain that Delaware’s cozy corporate setup robs their states of billions of tax dollars. Officials in the Cayman Islands, a favorite Caribbean haunt of secretive hedge funds, say Delaware is today playing faster and looser than the offshore jurisdictions that raise hackles in Washington.
And international bodies, most recently the World Bank, are increasingly pointing fingers at the state.
Of course, business — the legal kind — has been the business of Delaware since 1792, when the state established its Court of Chancery to handle business affairs. By the early 20th century, the state was writing friendly corporate and tax laws to lure companies from New York, New Jersey and elsewhere. Most of the businesses incorporated here are legitimate and many are using all legal means to reduce their tax bills — something that most stockholders applaud.
President Obama has criticized outposts like the Caymans, complaining that they harbor giant tax schemes. But here in Wilmington, just over 100 miles from Washington, is in some ways the biggest corporate haven of all. It takes less than an hour to incorporate a company in Delaware, and the state is so eager to attract businesses that the office of its secretary of state stays open until midnight Monday through Thursday — and until 10:30 p.m. on Friday.
Nearly half of all public corporations in the United States are incorporated in Delaware. Last year, 133,297 businesses set up here. And, at last count, Delaware had more corporate entities, public and private, than people — 945,326 to 897,934.
One Delaware company was used last year to make an anonymous $1 million donation to Restore Our Future, a super PAC that favors Mitt Romney for president. Restore Our Future ultimately disclosed that the money came from a former Bain Capital executive. The Romney campaign declined comment, and Restore Our Future did not return calls.
Delaware’s tax laws are a bonanza for the state. At a time when many states are being squeezed by a difficult economy, Delaware collected roughly $860 million in taxes and fees from its absentee corporate residents in 2011. That money accounted for a quarter of the state’s total budget.
“Companies choose our state and we are proud of it,” said Richard J. Geisenberger, Delaware’s chief deputy secretary of state and its leading ambassador to business. “We spend a lot of time in the United States and traveling internationally to let people know that Delaware is a great place to do business.”
It is also a great place to reduce a tax bill. Delaware today regularly tops lists of domestic and foreign tax havens because it allows companies to lower their taxes in another state — for instance, the state in which they actually do business or have their headquarters — by shifting royalties and similar revenues to holding companies in Delaware, where they are not taxed. In tax circles, the arrangement is known as “the Delaware loophole.” Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion.
State lawmakers in Pennsylvania are now trying to close the loophole, arguing that their state is being robbed of its tax dollars. Of particular concern is that many companies involved in drilling for natural gas in the Marcellus Shale region of Pennsylvania are, in fact, incorporating in Delaware instead.
“Delaware is an outlier in the way it does business,” said David E. Brunori, a professor at George Washington Law School and an expert on taxation. “What it offers is an opportunity to game the system and do it legally.”
WHAT does it take to incorporate a company in Delaware? Not a lot, tax experts say. Shell companies — those with no employees, no assets and, in fact, no real business to speak of — are remarkably easy to establish here, and it doesn’t always matter who you are or what business you are in. Viktor Bout, the Russian arms dealer known as “the merchant of death,” used two Delaware addresses. In April he was sentenced to 25 years in prison on terrorism charges resulting from an American sting operation.
Jack Abramoff, the former Washington lobbyist jailed on corruption charges, set up a sham Delaware corporation to hide millions in payments and circumvent federal laws. Mr. Subotic, the Serbian businessman who was tried in absentia last October for his role in a cigarette smuggling scheme and sentenced to six years, used three airplanes that were registered in Delaware, including two at 1209 North Orange. Mr. Subotic lives in Geneva and denies the charges.
The Organized Crime and Corruption Reporting Project, an international group based in Sarajevo, has identified other Eastern Europeans with Delaware links. Among them is Laszlo Kiss, an Romanian accountant and author of “United States, Tax Heaven — Uncle Sam Will Fight Your Taxes!” that praised the state’s lax rules. He is now awaiting trial in Bucharest on charges of helping embezzle and launder $10 million through Delaware shells.
“Delaware is the state that requires the least amount of information,” says David Finzer, the chief executive of Capital Conservator, a registration agent that sets up accounts in Delaware and elsewhere for non-United States citizens. “Basically, it requires none. Delaware has the most secret companies in the world and the easiest to form.”
Mr. Finzer, an American based in Novi Sad, Serbia, advertises his services online. “Tax-Free Havens for Non-U.S. Citizens,” his Web site, says. It goes on: “More than 50 percent of the major corporations in the world are incorporated in Delaware. Why? Because in provides the anonymity that most offshore jurisdictions do not offer.”
That is exactly what troubles law enforcement agencies and some in Congress who are trying to rein in Delaware. The state is seen as an onshore alternative with regulations more lax than such well-known offshore tax havens as the Isle of Man, Jersey and the Caymans, which require greater disclosure. Even more, a Delaware registration allows a business, legitimate or not, to open a bank account anywhere in the world with the patina of an American address.
“You can have companies in Delaware that have no U.S. bank accounts, no requirements for documentation and no one knows who owns them,” says Anthony B. Travers, chairman of the Cayman Islands Stock Exchange and former chairman of that country’s Financial Services Association. “There should be a level playing field and Delaware should have to comply with the same standards as the Caymans.”
Delaware isn’t the only state that has gone this route. Three others — Nevada, Wyoming and Oregon — have also been cited by theFinancial Crimes Enforcement Network, a division of the United States Treasury Department, as “particularly appealing” for the formation of shell companies. Of those four states, Delaware stands out as the one offering the least transparency and the most secrecy, this group says.
“What is so galling about secrecy in the United States is that there is no attempt to document who owns a corporation,” said Richard Murphy, a senior adviser at the Tax Justice Network, an independent organization based in London that researches tax havens. “Two million corporations are formed each year in the United States, more than anywhere else in the world. Delaware, in turn, is the biggest single source of anonymous corporations in the world.”
Mr. Murphy adds: “Why go to the Caymans when you can just go down the street?”
In 2009, the Tax Justice Network named the United States as No. 1 on its Financial Secrecy Index, ahead of Luxembourg and Switzerland. It cited Delaware as one of the reasons.
That, Mr. Murphy says, elicited howls in Wilmington. “The reaction was: ‘This cannot be true.’ Not only can it be true, it is true.” (The United States has since fallen to fifth place, behind Switzerland, the Caymans, Luxembourg and Hong Kong, after the group changed its method.)
For years, Senator Carl Levin, a Michigan Democrat, has been leading a quixotic effort to adopt legislation that would require states to collect information on the “beneficial ownership” of companies incorporated within their borders.
That would require states to add the name of the person standing behind the corporation — its beneficial owner — on incorporation papers. To sweeten the pot, the legislation would exempt public companies, hedge funds and other large corporations, along with mom-and-pop businesses where ownership is clear. In addition, the federal government would pick up the tab for putting the law into effect.
Senator Levin has long complained that it takes more information to get a driver’s license than to set up a corporation in America. Three times since 2000, he has introduced his legislation — once co-sponsored by Barack Obama when he was a senator from Illinois — and each time the effort has been rebuffed. He has never even been able to get the measure out of committee.
Law enforcement agencies, human rights groups and the administration are on his side. Last month, a letter supporting Mr. Levin’s measure and signed by 41 different groups was sent to every member of Congress.
But that has been no match for the opposition. Most vocal is the National Association of Secretaries of State, a politically powerful group. It is backed up by the Chamber of Commerce, the American Bar Association and the state of Delaware, which is the lone state to have hired a lobbyist to work on the matter.
Senator Thomas R. Carper, a Delaware Democrat, is in line to be the next chairman of the Senate Homeland Security and Government Affairs Committee, which has jurisdiction over the measure. Mr. Carper has expressed concerns about the measure but has taken no formal position on it.
“Levin is hitting a brick wall,” said Heather Lowe, director of government affairs for Global Financial Integrity, an anticorruption research group. “It’s frustrating. Delaware is playing a significant role in the committee. Senator Carper is well liked and well respected and he’s not moving on this issue.”
The secretaries of state, along with Delaware, argue that the Levin measure would be costly and burdensome, and would discourage business incorporation and capital formation. They add that their offices are generally ill-equipped to process the additional data that would be required. Even more, determining beneficial ownership may not be a simple matter.
“This would be a sea change in how things are done,” said Ross Miller, Nevada’s secretary of state and president-elect of the National Association of Secretaries of State. “It would add red tape and increasing processing time. And if you had a money launderer and asked for his name, he probably wouldn’t be truthful.”
Mr. Geisenberger, the chief deputy secretary of state of Delaware, said of the Levin measure: “This would be a massive inhibitor to starting a business. It would end up taking weeks or months to get a business started. And I think a lot of them would move underground and into the black market and just not form a legal entity.”
COMPANIES that are incorporated in Delaware need someone on the ground here — an agent or go-between to act on their behalf. That is where the CT Corporation comes in.
CT, a subsidiary of the Dutch information services company Wolters Kluwer, is the largest registered agent in Delaware and, it turns out, the registered agent for 1209 North Orange Street. CT is authorized to transact business at that address, and its main duty is to accept legal notices on behalf of the businesses incorporated here and to pass them along.
CT represents nearly a third of all companies registered in Delaware and 60 percent of Fortune 500 companies. It says that before accepting clients, it screens them against the government’s “Specially Designated Nationals,” a list of people barred from doing business in the United States.
Mainly, however, CT says it acts as a middleman. “We check names and addresses against various federal agency lists,” says Timothy Hall, a spokesman for the company, which has no position on the Levin measure. “We will comply with whatever law is passed,” he added.
(The New York Times Company has seven corporate subsidiaries registered at 2711 Centerville Road in Wilmington. The registered agent for that address is the Corporation Service Company, which is the second-largest agent in the state.)
For corporate tax planners, Delaware is a dream. The state helps companies legitimately reduce their United States taxes and, sometimes, obscure profits in other countries.
“Companies are able to turn taxable income into tax-exempt income in Delaware and then use it to reduce their tax bills in other states,” said Bradley P. Lindsey, an accounting professor at North Carolina State University and one of three authors of a 2011 study titled“Exploring the Role Delaware Plays as a Domestic Tax Haven.” Delaware does not tax certain profit-making intangible items — like trademarks, royalties, leases and copyrights. Yet those same intangibles can be part of a tax strategy that allows them to be classified as deductions in other states, reducing a company’s tax bill there.
“Delaware serves as a domestic tax haven, much like the Cayman Islands serves as an offshore foreign tax haven, and offers a similar level of tax avoidance,” the report states.
American corporations find the Caymans alluring for many reasons. There, they can operate in relative secrecy, attract more foreign customers, avoid regulation and enjoy a low tax rate. In one respect, however, Delaware is even better than the Caymans. At some point, American companies have to bring back their foreign profits from the Caymans and pay federal taxes. But in Delaware, the state tax savings through the Delaware loophole are permanent.
And on the reputational front, “Delaware doesn’t carry the same stigma as the Caymans or Bermuda,” Mr. Lindsay said, adding, “Why not attract business to my little state and get something at the expense of the other states?”
WorldCom, the telecom giant that collapsed into bankruptcy after an accounting scandal, could be a symbol for the Delaware loophole. Bankruptcy court filings showed that the company had cut $20 billion from state taxes thanks to an intangible asset it called “management foresight.”
Delaware subsidiaries are especially popular with global energy and mining companies like Exxon, Chevron and Rio Tinto. Among the top 10, some 915 subsidiaries have been set up in Delaware, compared with 51 in Switzerland and 49 in the Caymans, according to a report last September by the Norway chapter of Publish What You Pay, a London-based group that studies natural resources. The study said that this allows these resource extraction companies to put up a “wall of silence” about their far-flung operations and profits, especially from poor countries that may want a greater slice of the revenue. Exxon, Chevron and Rio Tinto declined to comment.
STATES like Pennsylvania are increasingly fed up. More than 400 corporate subsidiaries linked to Marcellus Shale gas exploration have been registered in Delaware, most within the last four years, according to the Pennsylvania Budget and Policy Center, a nonprofit group based in Harrisburg that studies the state’s tax policy.
In 2004, the center estimated that the Delaware loophole had cost the state $400 million annually in lost revenue — and that was before the energy boom.
More than two-thirds of the companies in the Marcellus Shale Coalition, an industry alliance based in Pittsburgh, are registered to a single address: 1209 North Orange Street, according to the center.
“So many of these Marcellus Shale companies have figured out that it is fairly easy to siphon profits from Pennsylvania, so that they don’t pay taxes here,” said Michael Wood, research director at the Harrisburg center.
The center is urging Pennsylvania to try to close the Delaware loophole. But it is running into opposition from Pennsylvania companies that want to retain the break. And, in Delaware, state officials say that their approach to business is good for America.
“We have a system that is the greatest creator of wealth in the history of the world,” said Mr. Geisenberger, the Delaware official. “We will not support any changes that change the friendliness of American business and close our doors to capital formation and the ease of doing business.”
______________________________________
Source:
The New York Times - Sunday Business, p. 1
For your private use, only
How Delaware Thrives as a Corporate Tax Haven
By LESLIE WAYNE
WILMINGTON, Del. - NOTHING about 1209 North Orange Street hints at the secrets inside. It’s a humdrum office building, a low-slung affair with a faded awning and a view of a parking garage. Hardly worth a second glance. If a first one.
But behind its doors is one of the most remarkable corporate collections in the world: 1209 North Orange, you see, is the legal address of no fewer than 285,000 separate businesses.
Its occupants, on paper, include giants like American Airlines, Apple, Bank of America, Berkshire Hathaway, Cargill, Coca-Cola, Ford, General Electric, Google, JPMorgan Chase, and Wal-Mart. These companies do business across the nation and around the world. Here at 1209 North Orange, they simply have a dropbox.
What attracts these marquee names to 1209 North Orange and to other Delaware addresses also attracts less-upstanding corporate citizens. For instance, 1209 North Orange was, until recently, a business address of Timothy S. Durham, known as “the Midwest Madoff.” On June 20, Mr. Durham was found guilty of bilking 5,000 mostly middle-class and elderly investors out of $207 million. It was also an address of Stanko Subotic, a Serbian businessman and convicted smuggler — just one of many Eastern Europeans drawn to the state.
Big corporations, small-time businesses, rogues, scoundrels and worse — all have turned up at Delaware addresses in hopes of minimizing taxes, skirting regulations, plying friendly courts or, when needed, covering their tracks. Federal authorities worry that, in addition to the legitimate businesses flocking here, drug traffickers, embezzlers and money launderers are increasingly heading to Delaware, too. It’s easy to set up shell companies here, no questions asked.
“Shells are the No. 1 vehicle for laundering illicit money and criminal proceeds,” said Lanny A. Breuer, assistant attorney general for the criminal division of the Justice Department. “It’s an enormous criminal justice problem. It’s ridiculously easy for a criminal to set up a shell corporation and use the banking system, and we have to stop it.”
In these troubled economic times, when many states are desperate for tax dollars, Delaware stands out in sharp relief. The First State, land of DuPont, broiler chickens and, as it happens, Vice President Joseph R. Biden Jr., increasingly resembles a freewheeling offshore haven, right on America’s shores. Officials in other states complain that Delaware’s cozy corporate setup robs their states of billions of tax dollars. Officials in the Cayman Islands, a favorite Caribbean haunt of secretive hedge funds, say Delaware is today playing faster and looser than the offshore jurisdictions that raise hackles in Washington.
And international bodies, most recently the World Bank, are increasingly pointing fingers at the state.
Of course, business — the legal kind — has been the business of Delaware since 1792, when the state established its Court of Chancery to handle business affairs. By the early 20th century, the state was writing friendly corporate and tax laws to lure companies from New York, New Jersey and elsewhere. Most of the businesses incorporated here are legitimate and many are using all legal means to reduce their tax bills — something that most stockholders applaud.
President Obama has criticized outposts like the Caymans, complaining that they harbor giant tax schemes. But here in Wilmington, just over 100 miles from Washington, is in some ways the biggest corporate haven of all. It takes less than an hour to incorporate a company in Delaware, and the state is so eager to attract businesses that the office of its secretary of state stays open until midnight Monday through Thursday — and until 10:30 p.m. on Friday.
Nearly half of all public corporations in the United States are incorporated in Delaware. Last year, 133,297 businesses set up here. And, at last count, Delaware had more corporate entities, public and private, than people — 945,326 to 897,934.
One Delaware company was used last year to make an anonymous $1 million donation to Restore Our Future, a super PAC that favors Mitt Romney for president. Restore Our Future ultimately disclosed that the money came from a former Bain Capital executive. The Romney campaign declined comment, and Restore Our Future did not return calls.
Delaware’s tax laws are a bonanza for the state. At a time when many states are being squeezed by a difficult economy, Delaware collected roughly $860 million in taxes and fees from its absentee corporate residents in 2011. That money accounted for a quarter of the state’s total budget.
“Companies choose our state and we are proud of it,” said Richard J. Geisenberger, Delaware’s chief deputy secretary of state and its leading ambassador to business. “We spend a lot of time in the United States and traveling internationally to let people know that Delaware is a great place to do business.”
It is also a great place to reduce a tax bill. Delaware today regularly tops lists of domestic and foreign tax havens because it allows companies to lower their taxes in another state — for instance, the state in which they actually do business or have their headquarters — by shifting royalties and similar revenues to holding companies in Delaware, where they are not taxed. In tax circles, the arrangement is known as “the Delaware loophole.” Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion.
State lawmakers in Pennsylvania are now trying to close the loophole, arguing that their state is being robbed of its tax dollars. Of particular concern is that many companies involved in drilling for natural gas in the Marcellus Shale region of Pennsylvania are, in fact, incorporating in Delaware instead.
“Delaware is an outlier in the way it does business,” said David E. Brunori, a professor at George Washington Law School and an expert on taxation. “What it offers is an opportunity to game the system and do it legally.”
WHAT does it take to incorporate a company in Delaware? Not a lot, tax experts say. Shell companies — those with no employees, no assets and, in fact, no real business to speak of — are remarkably easy to establish here, and it doesn’t always matter who you are or what business you are in. Viktor Bout, the Russian arms dealer known as “the merchant of death,” used two Delaware addresses. In April he was sentenced to 25 years in prison on terrorism charges resulting from an American sting operation.
Jack Abramoff, the former Washington lobbyist jailed on corruption charges, set up a sham Delaware corporation to hide millions in payments and circumvent federal laws. Mr. Subotic, the Serbian businessman who was tried in absentia last October for his role in a cigarette smuggling scheme and sentenced to six years, used three airplanes that were registered in Delaware, including two at 1209 North Orange. Mr. Subotic lives in Geneva and denies the charges.
The Organized Crime and Corruption Reporting Project, an international group based in Sarajevo, has identified other Eastern Europeans with Delaware links. Among them is Laszlo Kiss, an Romanian accountant and author of “United States, Tax Heaven — Uncle Sam Will Fight Your Taxes!” that praised the state’s lax rules. He is now awaiting trial in Bucharest on charges of helping embezzle and launder $10 million through Delaware shells.
“Delaware is the state that requires the least amount of information,” says David Finzer, the chief executive of Capital Conservator, a registration agent that sets up accounts in Delaware and elsewhere for non-United States citizens. “Basically, it requires none. Delaware has the most secret companies in the world and the easiest to form.”
Mr. Finzer, an American based in Novi Sad, Serbia, advertises his services online. “Tax-Free Havens for Non-U.S. Citizens,” his Web site, says. It goes on: “More than 50 percent of the major corporations in the world are incorporated in Delaware. Why? Because in provides the anonymity that most offshore jurisdictions do not offer.”
That is exactly what troubles law enforcement agencies and some in Congress who are trying to rein in Delaware. The state is seen as an onshore alternative with regulations more lax than such well-known offshore tax havens as the Isle of Man, Jersey and the Caymans, which require greater disclosure. Even more, a Delaware registration allows a business, legitimate or not, to open a bank account anywhere in the world with the patina of an American address.
“You can have companies in Delaware that have no U.S. bank accounts, no requirements for documentation and no one knows who owns them,” says Anthony B. Travers, chairman of the Cayman Islands Stock Exchange and former chairman of that country’s Financial Services Association. “There should be a level playing field and Delaware should have to comply with the same standards as the Caymans.”
Delaware isn’t the only state that has gone this route. Three others — Nevada, Wyoming and Oregon — have also been cited by theFinancial Crimes Enforcement Network, a division of the United States Treasury Department, as “particularly appealing” for the formation of shell companies. Of those four states, Delaware stands out as the one offering the least transparency and the most secrecy, this group says.
“What is so galling about secrecy in the United States is that there is no attempt to document who owns a corporation,” said Richard Murphy, a senior adviser at the Tax Justice Network, an independent organization based in London that researches tax havens. “Two million corporations are formed each year in the United States, more than anywhere else in the world. Delaware, in turn, is the biggest single source of anonymous corporations in the world.”
Mr. Murphy adds: “Why go to the Caymans when you can just go down the street?”
In 2009, the Tax Justice Network named the United States as No. 1 on its Financial Secrecy Index, ahead of Luxembourg and Switzerland. It cited Delaware as one of the reasons.
That, Mr. Murphy says, elicited howls in Wilmington. “The reaction was: ‘This cannot be true.’ Not only can it be true, it is true.” (The United States has since fallen to fifth place, behind Switzerland, the Caymans, Luxembourg and Hong Kong, after the group changed its method.)
For years, Senator Carl Levin, a Michigan Democrat, has been leading a quixotic effort to adopt legislation that would require states to collect information on the “beneficial ownership” of companies incorporated within their borders.
That would require states to add the name of the person standing behind the corporation — its beneficial owner — on incorporation papers. To sweeten the pot, the legislation would exempt public companies, hedge funds and other large corporations, along with mom-and-pop businesses where ownership is clear. In addition, the federal government would pick up the tab for putting the law into effect.
Senator Levin has long complained that it takes more information to get a driver’s license than to set up a corporation in America. Three times since 2000, he has introduced his legislation — once co-sponsored by Barack Obama when he was a senator from Illinois — and each time the effort has been rebuffed. He has never even been able to get the measure out of committee.
Law enforcement agencies, human rights groups and the administration are on his side. Last month, a letter supporting Mr. Levin’s measure and signed by 41 different groups was sent to every member of Congress.
But that has been no match for the opposition. Most vocal is the National Association of Secretaries of State, a politically powerful group. It is backed up by the Chamber of Commerce, the American Bar Association and the state of Delaware, which is the lone state to have hired a lobbyist to work on the matter.
Senator Thomas R. Carper, a Delaware Democrat, is in line to be the next chairman of the Senate Homeland Security and Government Affairs Committee, which has jurisdiction over the measure. Mr. Carper has expressed concerns about the measure but has taken no formal position on it.
“Levin is hitting a brick wall,” said Heather Lowe, director of government affairs for Global Financial Integrity, an anticorruption research group. “It’s frustrating. Delaware is playing a significant role in the committee. Senator Carper is well liked and well respected and he’s not moving on this issue.”
The secretaries of state, along with Delaware, argue that the Levin measure would be costly and burdensome, and would discourage business incorporation and capital formation. They add that their offices are generally ill-equipped to process the additional data that would be required. Even more, determining beneficial ownership may not be a simple matter.
“This would be a sea change in how things are done,” said Ross Miller, Nevada’s secretary of state and president-elect of the National Association of Secretaries of State. “It would add red tape and increasing processing time. And if you had a money launderer and asked for his name, he probably wouldn’t be truthful.”
Mr. Geisenberger, the chief deputy secretary of state of Delaware, said of the Levin measure: “This would be a massive inhibitor to starting a business. It would end up taking weeks or months to get a business started. And I think a lot of them would move underground and into the black market and just not form a legal entity.”
COMPANIES that are incorporated in Delaware need someone on the ground here — an agent or go-between to act on their behalf. That is where the CT Corporation comes in.
CT, a subsidiary of the Dutch information services company Wolters Kluwer, is the largest registered agent in Delaware and, it turns out, the registered agent for 1209 North Orange Street. CT is authorized to transact business at that address, and its main duty is to accept legal notices on behalf of the businesses incorporated here and to pass them along.
CT represents nearly a third of all companies registered in Delaware and 60 percent of Fortune 500 companies. It says that before accepting clients, it screens them against the government’s “Specially Designated Nationals,” a list of people barred from doing business in the United States.
Mainly, however, CT says it acts as a middleman. “We check names and addresses against various federal agency lists,” says Timothy Hall, a spokesman for the company, which has no position on the Levin measure. “We will comply with whatever law is passed,” he added.
(The New York Times Company has seven corporate subsidiaries registered at 2711 Centerville Road in Wilmington. The registered agent for that address is the Corporation Service Company, which is the second-largest agent in the state.)
For corporate tax planners, Delaware is a dream. The state helps companies legitimately reduce their United States taxes and, sometimes, obscure profits in other countries.
“Companies are able to turn taxable income into tax-exempt income in Delaware and then use it to reduce their tax bills in other states,” said Bradley P. Lindsey, an accounting professor at North Carolina State University and one of three authors of a 2011 study titled“Exploring the Role Delaware Plays as a Domestic Tax Haven.” Delaware does not tax certain profit-making intangible items — like trademarks, royalties, leases and copyrights. Yet those same intangibles can be part of a tax strategy that allows them to be classified as deductions in other states, reducing a company’s tax bill there.
“Delaware serves as a domestic tax haven, much like the Cayman Islands serves as an offshore foreign tax haven, and offers a similar level of tax avoidance,” the report states.
American corporations find the Caymans alluring for many reasons. There, they can operate in relative secrecy, attract more foreign customers, avoid regulation and enjoy a low tax rate. In one respect, however, Delaware is even better than the Caymans. At some point, American companies have to bring back their foreign profits from the Caymans and pay federal taxes. But in Delaware, the state tax savings through the Delaware loophole are permanent.
And on the reputational front, “Delaware doesn’t carry the same stigma as the Caymans or Bermuda,” Mr. Lindsay said, adding, “Why not attract business to my little state and get something at the expense of the other states?”
WorldCom, the telecom giant that collapsed into bankruptcy after an accounting scandal, could be a symbol for the Delaware loophole. Bankruptcy court filings showed that the company had cut $20 billion from state taxes thanks to an intangible asset it called “management foresight.”
Delaware subsidiaries are especially popular with global energy and mining companies like Exxon, Chevron and Rio Tinto. Among the top 10, some 915 subsidiaries have been set up in Delaware, compared with 51 in Switzerland and 49 in the Caymans, according to a report last September by the Norway chapter of Publish What You Pay, a London-based group that studies natural resources. The study said that this allows these resource extraction companies to put up a “wall of silence” about their far-flung operations and profits, especially from poor countries that may want a greater slice of the revenue. Exxon, Chevron and Rio Tinto declined to comment.
STATES like Pennsylvania are increasingly fed up. More than 400 corporate subsidiaries linked to Marcellus Shale gas exploration have been registered in Delaware, most within the last four years, according to the Pennsylvania Budget and Policy Center, a nonprofit group based in Harrisburg that studies the state’s tax policy.
In 2004, the center estimated that the Delaware loophole had cost the state $400 million annually in lost revenue — and that was before the energy boom.
More than two-thirds of the companies in the Marcellus Shale Coalition, an industry alliance based in Pittsburgh, are registered to a single address: 1209 North Orange Street, according to the center.
“So many of these Marcellus Shale companies have figured out that it is fairly easy to siphon profits from Pennsylvania, so that they don’t pay taxes here,” said Michael Wood, research director at the Harrisburg center.
The center is urging Pennsylvania to try to close the Delaware loophole. But it is running into opposition from Pennsylvania companies that want to retain the break. And, in Delaware, state officials say that their approach to business is good for America.
“We have a system that is the greatest creator of wealth in the history of the world,” said Mr. Geisenberger, the Delaware official. “We will not support any changes that change the friendliness of American business and close our doors to capital formation and the ease of doing business.”
______________________________________
Depardieu, in tax fight,
gets Russian citizenship
French President Francois Hollande plans to raise the tax on earned income
above €1 million ($1.3 million) to 75 percent from the current 41 percent,
while Russia has a flat 13-percent tax rate
Associated Press - 1/3/13
MOSCOW (AP) — The Kremlin has cast Gerard Depardieu in one of the most surprising roles of his life — as a new Russian citizen.
The announcement Thursday that President Vladimir Putin has approved Depardieu's application for citizenship is almost a real-life analogue to the French actor's 1990 comedy "Green Card," in which his character enters into a sham marriage in order to work in the United States.
But in this version, taxes appear to be at the heart of the matter. Depardieu has waged a battle against a proposed super tax on millionaires in his native country.
French President Francois Hollande plans to raise the tax on earned income above €1 million ($1.3 million) to 75 percent from the current 41 percent, while Russia has a flat 13-percent tax rate.
A representative for the former Oscar nominee declined to say whether he had accepted the Russian offer.
Thursday was a holiday in Russia and officials from the Federal Tax Service and Federal Migration Service could not be reached for comment on whether the decision would require Depardieu to have a residence in Russia.
But it's clearly an image buffer for Russia, calling attention to the country's attractive tax regime and boosting Putin's efforts to show that the economic chaos of the early post-Soviet period has passed.
"The distinctiveness of our tax system is poorly known about in the West. When they know about it, we can expect a massive migration of rich Europeans to Russia," Deputy Prime Minister Dmitry Rogozin bragged on Twitter.
Others aren't so sure.
Political analyst Pavel Svyatenkov told the state news agency RIA Novosti that the move was "very good, very high-quality PR for Russia" but he was didn't think it would ignite a flood of new residents.
"I don't expect a massive movement of rich people to here, for the reason that Russia remains a pretty poor country by Western measurements and here there are bigger problems with crime and corruption," he said.
As Depardieu's criticism of the proposed tax roiled his country, French Prime Minister Jean-Marc Ayrault called him "pathetic."
Depardieu responded angrily in an open letter.
"I have never killed anyone, I don't think I've been unworthy, I've paid €145 million ($190 million) in taxes over 45 years," the 64-year-old actor wrote. "I will neither complain nor brag, but I refuse to be called 'pathetic'."
Depardieu said in the letter that he would surrender his passport and French social security card. In October, the mayor of a small Belgian border town announced that Depardieu had bought a house and set up legal residence there, a move that was slammed by Hollande's newly-elected Socialist government.
Najat Vallaud-Belkacem, the French government spokeswoman, didn't comment directly on Depardieu's tax fight. But she drew a clear distinction between people who have personal or professional reasons to live abroad and "French citizens who proclaim loudly and clearly that they they're exiling themselves for fiscal reasons."
She said Putin's offer "is an exclusive prerogative of the Russian chief of state."
Depardieu has had increasingly high-profile ties with Russia.
Last October he visited Grozny, the capital of the Russian province of Chechnya, to celebrate the birthday of Chechen President Ramzan Kadyrov. And in 2011, he was in Russia's Arkhangelsk region to play the lead role in the film "Rasputin."
He is well known in the country, where he appears in an ad for Sovietsky Bank's credit card and is prominently featured on the bank's home page.
"You have to understand that Depardieu is a star in Russia," Vladimir Fedorovski, a Russian writer living in France, told the Europe 1 network on Thursday. "There are crowds around Depardieu. He's a symbol of France. He's a huge ambassador of French culture."
Depardieu has made more than 150 films and was nominated for an Academy Award for his role as Cyrano de Bergerac in the 1990 film of the same name.
The Kremlin statement gave no information on why Putin made the citizenship grant, but the Russian president had expressed sympathy with the actor in December, days after Depardieu reportedly said he was considering Russian citizenship.
"As we say, artists are easily offended and therefore I understand the feelings of Mr. Depardieu," Putin said.
Although France's highest court struck down the new tax on Dec. 29, the government has promised to resubmit the law in a slightly different form. On Wednesday, the French government estimated the court decision to overturn the tax would cost the country €210 million ($275 million) in 2013.
In an interview, Depardieu told the Sunday Parisien the court decision made no difference.
France's debt burden is around 90 percent of national income — not far off levels that have caused problems elsewhere in the 17-country eurozone.
Depardieu is not the only high-profile Frenchman to object to the super tax. Bernard Arnault — chief of the luxury goods and fashion giant LVMH and worth an estimated $41 billion — has said he would leave for Belgium.
This article is for your private use, only
Can be used for educational purposes
_______________________________________________________
gets Russian citizenship
French President Francois Hollande plans to raise the tax on earned income
above €1 million ($1.3 million) to 75 percent from the current 41 percent,
while Russia has a flat 13-percent tax rate
Associated Press - 1/3/13
MOSCOW (AP) — The Kremlin has cast Gerard Depardieu in one of the most surprising roles of his life — as a new Russian citizen.
The announcement Thursday that President Vladimir Putin has approved Depardieu's application for citizenship is almost a real-life analogue to the French actor's 1990 comedy "Green Card," in which his character enters into a sham marriage in order to work in the United States.
But in this version, taxes appear to be at the heart of the matter. Depardieu has waged a battle against a proposed super tax on millionaires in his native country.
French President Francois Hollande plans to raise the tax on earned income above €1 million ($1.3 million) to 75 percent from the current 41 percent, while Russia has a flat 13-percent tax rate.
A representative for the former Oscar nominee declined to say whether he had accepted the Russian offer.
Thursday was a holiday in Russia and officials from the Federal Tax Service and Federal Migration Service could not be reached for comment on whether the decision would require Depardieu to have a residence in Russia.
But it's clearly an image buffer for Russia, calling attention to the country's attractive tax regime and boosting Putin's efforts to show that the economic chaos of the early post-Soviet period has passed.
"The distinctiveness of our tax system is poorly known about in the West. When they know about it, we can expect a massive migration of rich Europeans to Russia," Deputy Prime Minister Dmitry Rogozin bragged on Twitter.
Others aren't so sure.
Political analyst Pavel Svyatenkov told the state news agency RIA Novosti that the move was "very good, very high-quality PR for Russia" but he was didn't think it would ignite a flood of new residents.
"I don't expect a massive movement of rich people to here, for the reason that Russia remains a pretty poor country by Western measurements and here there are bigger problems with crime and corruption," he said.
As Depardieu's criticism of the proposed tax roiled his country, French Prime Minister Jean-Marc Ayrault called him "pathetic."
Depardieu responded angrily in an open letter.
"I have never killed anyone, I don't think I've been unworthy, I've paid €145 million ($190 million) in taxes over 45 years," the 64-year-old actor wrote. "I will neither complain nor brag, but I refuse to be called 'pathetic'."
Depardieu said in the letter that he would surrender his passport and French social security card. In October, the mayor of a small Belgian border town announced that Depardieu had bought a house and set up legal residence there, a move that was slammed by Hollande's newly-elected Socialist government.
Najat Vallaud-Belkacem, the French government spokeswoman, didn't comment directly on Depardieu's tax fight. But she drew a clear distinction between people who have personal or professional reasons to live abroad and "French citizens who proclaim loudly and clearly that they they're exiling themselves for fiscal reasons."
She said Putin's offer "is an exclusive prerogative of the Russian chief of state."
Depardieu has had increasingly high-profile ties with Russia.
Last October he visited Grozny, the capital of the Russian province of Chechnya, to celebrate the birthday of Chechen President Ramzan Kadyrov. And in 2011, he was in Russia's Arkhangelsk region to play the lead role in the film "Rasputin."
He is well known in the country, where he appears in an ad for Sovietsky Bank's credit card and is prominently featured on the bank's home page.
"You have to understand that Depardieu is a star in Russia," Vladimir Fedorovski, a Russian writer living in France, told the Europe 1 network on Thursday. "There are crowds around Depardieu. He's a symbol of France. He's a huge ambassador of French culture."
Depardieu has made more than 150 films and was nominated for an Academy Award for his role as Cyrano de Bergerac in the 1990 film of the same name.
The Kremlin statement gave no information on why Putin made the citizenship grant, but the Russian president had expressed sympathy with the actor in December, days after Depardieu reportedly said he was considering Russian citizenship.
"As we say, artists are easily offended and therefore I understand the feelings of Mr. Depardieu," Putin said.
Although France's highest court struck down the new tax on Dec. 29, the government has promised to resubmit the law in a slightly different form. On Wednesday, the French government estimated the court decision to overturn the tax would cost the country €210 million ($275 million) in 2013.
In an interview, Depardieu told the Sunday Parisien the court decision made no difference.
France's debt burden is around 90 percent of national income — not far off levels that have caused problems elsewhere in the 17-country eurozone.
Depardieu is not the only high-profile Frenchman to object to the super tax. Bernard Arnault — chief of the luxury goods and fashion giant LVMH and worth an estimated $41 billion — has said he would leave for Belgium.
This article is for your private use, only
Can be used for educational purposes
_______________________________________________________
Obama encouraging Americans to get on welfare
By: Michael Tanner (opinion)
July 18, 2012
Michael Tanner, a Cato Institute senior fellow,
is the author of “Leviathan on the Right: How Big Government Conservatism Brought Down the Republican Revolution.”
This is for your personal use, only
© 2012 POLITICO LLC
The Obama administration clearly doesn’t believe that enough Americans are receiving welfare.
Health and Human Services Secretary Kathleen Sebelius last week issued an order giving the Obama administration greater authority to waive work requirements included in the 1998 welfare reform law. This comes on top of a new ad campaign, using Spanish-language soap operas, to encourage more Latinos to sign up for food stamps.
The administration even gave a special award to an Agriculture Department worker who found ways to combat the “mountain pride” discouraging Appalachian residents from taking full advantage of food stamps and other welfare programs.
One message was loud and clear: More Americans should be getting welfare.
One wonders how that is possible. The federal government runs 126 separate anti-poverty programs. That may surprise most Americans, who think of welfare as the cash benefits provided under the Temporary Assistance for Needy Families program — formerly Aid to Families with Dependent Children. But the U.S. welfare system is far larger than that.
There are 33 housing programs, for example, run by four different Cabinet departments, including, bizarrely, the Department of Energy. There are 21 programs providing food or food-purchasing assistance. They’re administered by three different federal departments and one independent agency. There are eight different health care programs administered by five separate agencies in HHS. Six Cabinet departments and five independent agencies oversee 27 cash or general assistance programs. Altogether, seven different Cabinet departments and six independent agencies each administer at least one anti-poverty program.
All those programs cost taxpayers more than $668 billion last year. That’s an increase of more than $193 billion since Barack Obama became president. It’s roughly 2½ times greater than any previous increase over a similar time frame in U.S. history and will increase means-tested welfare spending by about 2.4 percent of gross domestic product.
Moreover, if one includes state and local welfare spending, government at all levels will spend more than $952 billion this year to fight poverty.
The Obama administration obviously believes that one measures compassion by inputs. The more money we spend on welfare programs, it argues, the more people receive benefits from those programs, the better job we do fighting poverty. By those measures, we are indeed doing a better job.
Since President Lyndon B. Johnson first declared a “war on poverty” in 1964, federal, state and local governments have spent roughly $15 trillion fighting poverty. In constant dollars, federal spending on welfare and anti-poverty programs has jumped from $178 billion to $668 billion — a 375 percent increase in constant 2011 dollars. Total welfare spending — including state and local funds — has increased from $256 billion to $908 billion, a 355 percent increase.
Or look at it a different way: As a percentage of GDP, federal spending on welfare programs has increased more than fourfold, from just 0.83 percent of GDP to 4.4 percent. Total welfare spending at both the federal and state levels nearly tripled, from 2.19 percent of GDP to 6 percent. On a per capita basis — or rather per poor person — federal welfare spending has risen by more than 900 percent, from $1,625 to $14,848, while combined federal and state welfare spending increased by a smaller but still substantial 651 percent, from $3,032 to $19,743.
Indeed, federal welfare spending actually totals more than $14,848 for every poor man, woman and child in this country. For a typical poor family of three, that amounts to more than $44,500. Combined with state and local spending, government spends $20,610 for every poor person in America — or $61,830 per poor family of three.
Given that the poverty line for that family is just $18,530, we should have theoretically wiped out poverty in America many times over.
But we have not only failed to end poverty, it’s getting worse. In fact, the poverty rate has recently increased to 15.1 percent of Americans, the highest level in nearly a decade and nearly the level it was soon after the “war on poverty” began.
Judged by outputs — how few people are poor and therefore how few people need welfare — we are not doing nearly so well.
This is all the more tragic because we actually have a pretty good idea of what the keys are to getting out of or staying out of poverty: (1) finish school; (2) do not get pregnant outside marriage; and (3) get a job, any job, and stick with it.
None of this has anything to do with getting more people to sign up for welfare benefits.
This means that instead of trying to expand welfare, we should end those government policies — high taxes and regulatory excess — that inhibit growth and job creation. We should protect capital investment and give people the opportunity to start new businesses. We should reform our failed public school system to encourage competition and choice. We should encourage the poor to save and invest.
Unfortunately, on policy after policy — from health care reform to the stimulus — Obama has been content to simply throw money at a problem with little regard for results.
In this case, sadly, it’s the poor who suffer the most.
Michael Tanner, a Cato Institute senior fellow, is the author of “Leviathan on the Right: How Big Government Conservatism Brought Down the Republican Revolution.”
© 2012 POLITICO LLC
CATO INSTITUTE: Established1974[1]Missionto increase the understanding of public policies based on the principles of limited government, free markets, individual liberty, and peace.[2]President Edward H. Crane Chairman Robert A. Levy Executive VP David Boaz Faculty 46 Staff 100 Budget$ 23.6 million (2011)[3]Slogan"Individual Liberty, Free Markets, and Peace "
Location Washington, D.C., U.S. Address1000 Massachusetts Avenue, N.W. Washington, D.C. 20001-5403 United States
Website Cato.org _______________________________
By: Michael Tanner (opinion)
July 18, 2012
Michael Tanner, a Cato Institute senior fellow,
is the author of “Leviathan on the Right: How Big Government Conservatism Brought Down the Republican Revolution.”
This is for your personal use, only
© 2012 POLITICO LLC
The Obama administration clearly doesn’t believe that enough Americans are receiving welfare.
Health and Human Services Secretary Kathleen Sebelius last week issued an order giving the Obama administration greater authority to waive work requirements included in the 1998 welfare reform law. This comes on top of a new ad campaign, using Spanish-language soap operas, to encourage more Latinos to sign up for food stamps.
The administration even gave a special award to an Agriculture Department worker who found ways to combat the “mountain pride” discouraging Appalachian residents from taking full advantage of food stamps and other welfare programs.
One message was loud and clear: More Americans should be getting welfare.
One wonders how that is possible. The federal government runs 126 separate anti-poverty programs. That may surprise most Americans, who think of welfare as the cash benefits provided under the Temporary Assistance for Needy Families program — formerly Aid to Families with Dependent Children. But the U.S. welfare system is far larger than that.
There are 33 housing programs, for example, run by four different Cabinet departments, including, bizarrely, the Department of Energy. There are 21 programs providing food or food-purchasing assistance. They’re administered by three different federal departments and one independent agency. There are eight different health care programs administered by five separate agencies in HHS. Six Cabinet departments and five independent agencies oversee 27 cash or general assistance programs. Altogether, seven different Cabinet departments and six independent agencies each administer at least one anti-poverty program.
All those programs cost taxpayers more than $668 billion last year. That’s an increase of more than $193 billion since Barack Obama became president. It’s roughly 2½ times greater than any previous increase over a similar time frame in U.S. history and will increase means-tested welfare spending by about 2.4 percent of gross domestic product.
Moreover, if one includes state and local welfare spending, government at all levels will spend more than $952 billion this year to fight poverty.
The Obama administration obviously believes that one measures compassion by inputs. The more money we spend on welfare programs, it argues, the more people receive benefits from those programs, the better job we do fighting poverty. By those measures, we are indeed doing a better job.
Since President Lyndon B. Johnson first declared a “war on poverty” in 1964, federal, state and local governments have spent roughly $15 trillion fighting poverty. In constant dollars, federal spending on welfare and anti-poverty programs has jumped from $178 billion to $668 billion — a 375 percent increase in constant 2011 dollars. Total welfare spending — including state and local funds — has increased from $256 billion to $908 billion, a 355 percent increase.
Or look at it a different way: As a percentage of GDP, federal spending on welfare programs has increased more than fourfold, from just 0.83 percent of GDP to 4.4 percent. Total welfare spending at both the federal and state levels nearly tripled, from 2.19 percent of GDP to 6 percent. On a per capita basis — or rather per poor person — federal welfare spending has risen by more than 900 percent, from $1,625 to $14,848, while combined federal and state welfare spending increased by a smaller but still substantial 651 percent, from $3,032 to $19,743.
Indeed, federal welfare spending actually totals more than $14,848 for every poor man, woman and child in this country. For a typical poor family of three, that amounts to more than $44,500. Combined with state and local spending, government spends $20,610 for every poor person in America — or $61,830 per poor family of three.
Given that the poverty line for that family is just $18,530, we should have theoretically wiped out poverty in America many times over.
But we have not only failed to end poverty, it’s getting worse. In fact, the poverty rate has recently increased to 15.1 percent of Americans, the highest level in nearly a decade and nearly the level it was soon after the “war on poverty” began.
Judged by outputs — how few people are poor and therefore how few people need welfare — we are not doing nearly so well.
This is all the more tragic because we actually have a pretty good idea of what the keys are to getting out of or staying out of poverty: (1) finish school; (2) do not get pregnant outside marriage; and (3) get a job, any job, and stick with it.
None of this has anything to do with getting more people to sign up for welfare benefits.
This means that instead of trying to expand welfare, we should end those government policies — high taxes and regulatory excess — that inhibit growth and job creation. We should protect capital investment and give people the opportunity to start new businesses. We should reform our failed public school system to encourage competition and choice. We should encourage the poor to save and invest.
Unfortunately, on policy after policy — from health care reform to the stimulus — Obama has been content to simply throw money at a problem with little regard for results.
In this case, sadly, it’s the poor who suffer the most.
Michael Tanner, a Cato Institute senior fellow, is the author of “Leviathan on the Right: How Big Government Conservatism Brought Down the Republican Revolution.”
© 2012 POLITICO LLC
CATO INSTITUTE: Established1974[1]Missionto increase the understanding of public policies based on the principles of limited government, free markets, individual liberty, and peace.[2]President Edward H. Crane Chairman Robert A. Levy Executive VP David Boaz Faculty 46 Staff 100 Budget$ 23.6 million (2011)[3]Slogan"Individual Liberty, Free Markets, and Peace "
Location Washington, D.C., U.S. Address1000 Massachusetts Avenue, N.W. Washington, D.C. 20001-5403 United States
Website Cato.org _______________________________
Is the travel industry
obtaining a great deal extra money in small fractions ?
Fleeced by Fees When You Travel?
Source NYT
9/12/2012
By STEPHANIE ROSENBLOOM
Click the green for further info
FEE to hold your airline reservation for a few days: $20. Peak air-travel surcharge: $47. Rental car GPS: $13 a day. Beach chaise longue: $20 a day. Resort fee: $25 a day.
Your carefully planned vacation budget? Out the window. We have all learned by now that the travel industry loves a surcharge, and most of us have adapted accordingly. On planes we bring our own headphones, snacks, pillow, blanket. At hotels we know not to drink the pricey bottled water in the room. Fine. For anyone taking a trip in 2012, certain perks might seem like legitimate extras.
But as I peruse some of my latest bills, the à la carte add-ons do not feel like small pleasures; they feel like things that ought to be included in the basic price. More to the point: they feel like sneaky ways to pluck a few more dollars from my pocket.
In the last few months I’ve unwittingly paid for newspapers plopped outside my Starwood hotel-room door (review your bill before you check out) and rental-car fees with vague, perplexing names like “airport concession recovery” and “facility charge.” And I have been taken aback by fees for hotel beach chairs, umbrellas and parking. These were on top of fees I knowingly paid for preferred seating on planes, in-flight Internet, changing tickets and simply printing boarding passes.
The growing list of add-on fees would be comical were they not at our expense. There are now charges for reservations, cancellations, boarding early, departing early, holding bags, checking bags and using the gym, the business center and the safe in your room. And thanks to the latest high-tech minibars, you cannot even touch an Almond Joy to read the calorie count without a charge on your bill (along with a “restocking” fee).
Some fees are mandatory; you must learn to factor them into your vacation budget. Others are optional. And then there are the charges that you’re welcome to opt out of — if you can figure out that you’ve been billed for them in the first place.
A record $1.85 billion in fees and surcharges was collected last year for hotels alone (up from $1.2 billion in 2000), according to Bjorn Hanson, divisional dean of the Tisch Center for Hospitality, Tourism and Sports Management at New York University. He expects that figure to climb to $1.95 billion in 2012.
Airlines, meanwhile, collected more than $3.3 billion in baggage fees and more than $2.3 billion in reservation cancellation and change fees last year, according to the Bureau of Transportation Statistics. Rental car companies and cruise ships also take a share, with extra charges for child seats and navigation systems, as well as certain onboard snacks, activities and excursions.
“There is this increasing feeling of a shakedown,” said Jonathan Turley, who, as a leading expert on constitutional and tort law, frequently travels for work. Mr. Turley said he actually laughed during a recent visit to the Waldorf-Astoria when he was told that it would cost him $15 a day for Wi-Fi on one device, say an iPad, plus $15 for each additional device. “Then you go across town to the Days Inn and they have Wi-Fi for free,” he said. “As someone who teaches law and economics you expect to have some predictable market response to this need, and it’s actually flipped. You get a higher level of these services at lower-end hotels.”
And don’t get him started about plane tickets, which he likens to tickets at Disney World. “You pay this upfront cost, but then you find out that everything in the park is designed to eke out a little bit more of your money,” said Mr. Turley, 51, who thinks the travel industry is actively trying to lower consumer expectations by charging separately for even the most basic services. “I get the feeling that the airline industry is really waiting for my generation to die,” he said. “We’re the cranky, loud ones because we have a higher expectation. Every day, fewer people remember what it used to be like.”
Added fees and surcharges emerged as an industry practice in the late 1990s with resort fees that claimed to be for things like beach towels and housekeeping, then spread to airlines, cruise lines and car rental companies. Hotel fees, for one, are highly profitable and, according to Mr. Hanson, have increased every year except for the periods following the economic downturns in 2001 and 2008 when lodging demand declined. Despite the fees, hotel rates “are still not back to 2007 levels,” Mr. Hanson said, adding that going forward, the industry will most likely focus on raising room prices because ultimately it’s more profitable than fees.
But fees continue to give airlines a boost. Fuel surcharges have risen nearly twice as fast as oil prices since April 2011, according to a study by Carlson Wagonlit Travel, a travel management company. Take Spirit Airlines, which in November plans to raise its fee range for carry-on bags to $35 to $40, up from $30 to $35.
And the menu of fees is only growing. EasyJet, the no-frills European airline that currently doesn’t assign seats, in November will begin charging £3 to £12 (about $4.75 to $19 at $1.58 to the pound) to select a particular seat. This summer US Airways began offering a $19.99 premium entree for economy passengers flying internationally.
Even cruise lines are adding fees, among them Carnival Cruises, which is in the midst of a pilot program that, for $49.95, will allow everyone in your stateroom to board the ship early.
Yet many obligatory charges are easy to miss and hard to understand. In January, Department of Transportation regulations took effect requiring airlines and ticket agents to “include all mandatory taxes and fees in published airfares.” Baggage fees must also be disclosed.
In July, the department fined Travelocity $180,000 for violating the rule on full-fare advertising “by failing to include fuel surcharges and other fees in advertised airfares.” That same month the department fined TripAdvisor $80,000 for violating the rules on full-fare advertising (and for failing to disclose that flights were being operated under code-sharing agreements).
And last month, a class-action lawsuit was filed in federal court, claiming that up until late last year, Spirit Airlines actively misrepresented fares booked by its customers by unbundling certain fees, including something it calls a “passenger usage fee” that can be avoided only by purchasing tickets at Spirit’s airport counters.
Robert C. Josefsberg and Katherine Ezell of the Podhurst Orseck firm in Miami, lawyers for the plaintiffs, said that since filing the suit, hundreds of passengers have contacted them to say that they thought they had bought the lowest fares available yet ended up paying more because the passenger usage fee adds $17.98 to $33.98 to a round-trip flight.
“It’s fairly insulting,” Mr. Josefsberg said. “You want to put your head out the window and scream ‘I’m not going to take it anymore. ”
Alicia Jao, vice president of Travel Media at NerdWallet, a Web site that offers personal-finance and credit-card advice, said that from 2008 to 2011 the fee generated $142 million for Spirit.
A spokeswoman for Spirit said in a statement that the airline believes the suit’s claims “are without merit” and that it “intends to defend the case.”
Hotels are also coming under fire. When visiting the Hilton Garden Inn Sonoma County Airport last year, Rodney Harmon received a copy of USA Today that he claims not to have wanted or read, yet he was charged 75 cents. Last year, the Arnold Law Firm of Sacramento filed a class-action lawsuit against the “Hilton Family of Hotels” on behalf of Mr. Harmon and other Hilton guests who, according to the lawsuit, have “unwittingly purchased newspapers they reasonably believed and understood to be without charge” because the fee was printed inside the paper room-card holder in “extremely small font which is difficult to notice or read.”
DESPITE lawsuits and customer complaints, fees continue to pop up on bills, and they are becoming increasingly harder to withdraw. “The hotels have become very good at responding to guest complaints,” said Mr. Hanson, also the founder and former leader of the global hospitality and leisure industry practice for PricewaterhouseCoopers. “The idea is not to say ‘No,’ but the answer is ‘No.’ ”
He said hotels are training employees on how to handle guests who object to fees by first repeating their objection with something like “Oh, I understand you were surprised by the minibar restocking fee,” and then adhering to a script that involves explaining to the guest why the charge is necessary.
“Guests should not expect to prevail in those negotiations the way they might have a few years ago,” Mr. Hanson said.
Disappointing customers is a risky move, though. People who feel duped are more angry and less likely to return to the offending company, according to research by Vicki Morwitz, a marketing professor at New York University Stern School of Business who has studied consumer responses to what’s known as drip pricing by airlines and rental car agencies. “You can’t win over a consumer by misleading a consumer,” she said. “You’re going to lose by negative word of mouth.”
EVEN the name of a fee matters, which is why consumer psychologists think companies devise intentionally vague names like “service charge” and “resort fee.”
“It makes it a little more palatable,” said Ravi Dhar, director of the Center for Customer Insights at the Yale School of Management and a psychology professor at Yale, explaining that a resort fee suggests you are getting something above and beyond a mere hotel experience. “They must be doing something special,” he said. Of course now that many people have figured out that a resort fee is often little more than a couple of bottles of water and a beach towel, they find it irritating. “If you start breaking it down,” Mr. Dhar said, “people will be more upset.”
The size of the fee is also significant. If it is a small percentage of the base price, psychologically it doesn’t matter, he said. He cited the $2.50 fee he recently incurred on top of a $90 Broadway show ticket. But the bigger the ratio, the bigger the annoyance.
Transparency is essential, too. Did the hotel or airline clearly state the charges upfront or did consumers perceive the charges as deceptive? “If they know what these charges are upfront and they walk into it with their eyes open, they feel a lot better,” said Angela Y. Lee, a marketing professor at the Kellogg School of Management at Northwestern University. “This clarity in communication is really important.”
That includes making sure that travelers understand when they are paying a fee and when they are paying a tax, and why. For instance, Ms. Morwitz said, many consumers think that the so-called “concession recovery fee” seen on some airport rental car bills is, despite the name, a tax. But it’s really the rental company’s way of covering the additional cost of being in an airport, she said, “and they pass part of that cost along to consumers.”
Wrong assumptions by travelers can also magnify frustrations. For example, Mr. Hanson said people often think that pricing is somewhat uniform across a hotel chain: if you stay at a Sheraton in one area of a city, the fees and surcharges should be similar to those at the Sheraton in different part of the same city, right?
Wrong. Charges can vary from hotel to hotel, depending on the guidelines set forth by each general manager.
WHILE no one wants to pay more, some experts contend there is nonetheless an upside to all these fees. Consumers who choose not to pay a fee for a carry-on or to buy a bag of peanuts pay less, rather than having to subsidize those passengers who clog the overhead bins and don’t bring their own snacks. It’s analogous to being at a fancy dinner, Mr. Dhar said, and being told that you have to split the bill equally even though you didn’t drink any of the wine. Shouldn’t you pay less because you consumed less?
As someone who barely finishes a glass of wine while the rest of the table orders another bottle, I understand. But at the moment, passengers who travel light do not receive substantial discounts. When a standard airplane seat is so small and uncomfortable that anyone a little taller or heavier than average has to pay for a seat with more legroom just to get through the flight, that fee seems unfair.
Indeed, for many passengers, being nickeled-and-dimed diminishes the joy of the journey.
“I used to like to fly,” Mr. Turley said. But he explained that doing so nowadays calls to mind certain extraterrestrial swindlers. “Now I feel like I’m in a ‘Star Trek’ episode,” he said, “and I’m being hosted by the Ferengi.”
Fee (Drip), Fee (Drip), Fee (Drip): How to Stay Dry
To avoid being surprised by fees, read the fine print when making reservations, especially when using online travel companies like Hotwire and Travelocity. Renting a car? Find out if your hotel charges for parking, which can add another $25 or so a day. While some fees are optional, they might be for things you want. Here’s how to get them for less.
FEE: OVERWEIGHT OR CHECKED BAGS
WORKAROUND: Wear your necessities. Seriously: Scottevest’s Transformer Jacket ($160) has 20 pockets designed to accommodate your water bottle, iPad, camera. There are even pockets through which you can control your iPhone. Or buy what you need (sunscreen, umbrella, sweatshirt) at your destination.
FEE: CHANGING AN AIRLINE TICKET
WORKAROUND: New Department of Transportation regulations enable passengers to cancel a reservation without penalty for up to 24 hours after it is made as long as the reservation is made at least a week before the flight’s departure date. And remember: sometimes it’s cheaper to buy a new ticket than to change one.
FEE: RENTAL CAR SEAT FOR CHILDREN AND NAVIGATION SYSTEM
WORKAROUND: Bring your own car seat, which airlines often gate-check free. Use an iPhone or an app for navigation.
FEE: BEACH CHAIRS AND UMBRELLAS
WORKAROUND: Buy them at a local drugstore, or pack an old sheet and use it as a beach blanket. Make another guest’s day by giving away the gear when you leave.
FEE: AIRPORT RENTAL CAR “CONCESSION RECOVERY FEE”
WORKAROUND: If the fee is more than a shuttle or taxi ride to another location, rent the car at a nonairport location.
FEE: HOTEL INTERNET ACCESS
WORKAROUND: Hotels that charge for Wi-Fi in the rooms sometimes provide it free in public spaces. Take your work to the lobby or pool, even a nearby coffee shop.
CLICK THE GREEN FOR FURTHER INFO
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This info is necessary for traveling abroad - info released September 2012
Travel and smartphones go together - and these days, texting, updating Facebook
and good old tweeting-while-eating are the least of it.
Just one catch: leave the country and your smartphone plan - much like the Constitution - no longer has you covered.
Calling and texting while abroad can bring painful bills; using data services can lead to insolvency.
That's because standard international roaming rates are outrageous: $2, $3 or even $5 a minute, 50 cents for a text
message. A megabyte of data costs $15 to $20. That means that checking the status of your Facebook friends can cost
about $3 or $4. That's a lot to see your high school classmate's backyard tomato plant.
How to Avoid a Smartphone’s Bite
SEPTEMBER 18, 2012
Source: NYT
By SETH KUGEL
Click the green for further info
Travel and smartphones go together - and these days, texting, updating Facebook and good old tweeting-while-eating are the least of it. Instant access to Yelp, TripAdvisor and endless other apps helps with everything from choosing an entree, tracking down discounts, posting a photo and checking the traffic ahead. Add a healthy dose of old-fashioned phone calls from poolside or mountain trail, and you might say staying connected has become something close to a constitutional right.
Just one catch: leave the country and your smartphone plan - much like the Constitution - no longer has you covered.
As many people have learned the hard way, calling and texting while abroad can bring painful bills; using data services can lead to insolvency. That's because standard international roaming rates are outrageous: $2, $3 or even $5 a minute, 50 cents for a text message. A megabyte of data costs $15 to $20. That means that checking the status of your Facebook friends can cost about $3 or $4. That's a lot to see your high school classmate's backyard tomato plant.
The good news is there are ways to save. The bad news is there are lots and lots of ways, some complementary and none perfect. Here's how I'd break it down for five kinds of budget travelers.
The Blissfully Disconnected
You're the type who leaves your cellphone and laptop at home, because traveling is about getting away from it all.
What you should do: Write out your itinerary with hotels and contact numbers and leave it with loved ones. Try not to break your quill pen while doing so.
But be aware: The world doesn't really cater to your type anymore. Many budget hotels don't bother with phones in rooms, and good luck finding a pay phone to make a dinner reservation or to check what time a museum closes. Better hope the local farmers speak English when you get lost biking. Send me a telegram and let me know how it goes.
The Semi-Connected
You don't feel the need for constant connectivity, and can wait until you're connected to your hotel's or hostel's Wi-Fi network to call home, check e-mail and plan the next day's activities.
What you should do: Once you connect to Wi-Fi, e-mail, Web browsing and online chat are free. But phone calls are not, so be sure you have an account with an app like Google Voice or Skype that can dial out to real world numbers. Calling the United States is as low as one cent a minute; calling other countries (like the one you're in - to make dinner reservations, to check on hotel vacancies, and contact local friends) is usually something like one-tenth the price of the standard cellphone plan.
Choosing the company is a matter of personal preference. Google Voice has lower rates than Skype to virtually every country and is especially easy if you already use Gmail. Skype is reasonable too and maintains a loyal following. There are many other competitors, and all them claim to be revolutionary and cheap, but I've yet to find one that can beat the reach and dependability of those two.
Keep in mind that while offering "free Wi-Fi" is practically an industry standard at budget hotels, and even some campgrounds, it can mean many things. A system that's always online, is acceptably fast and actually works in your room (rather than the lobby) seems more the exception than the rule.
Finally, when you go out for the day, bring your smartphone along for emergency calls and even for the occasional 50-cent text message if you make local friends or split with travel companions and need to meet up. Just be sure the international data roaming is turned off.
The Moderates
You love to make friends in a new country and want to be able to call and text them later. Tweeting every minute is too much, but you would like to alert your friends the moment you've reached the mountaintop/seen the Mona Lisa/eaten a bug. You want the option of checking with TripAdvisor or Yelp to decide between two restaurants. You need to check your e-mail occasionally.
What you should do: If your phone is "unlocked," meaning you can use other providers, get an international SIM card. I tested two this summer, Telestial's Passport card ($19) and OneSimCard's Standard card ($30). They have slightly different features, but each works more or less the same way. Your main phone number, once you insert the card, is not American.
For Telestial, it's a British number; for OneSimCard, it's Estonian. Telestial also provides you with an American number - OneSimCard offers it for $5 a month - that allows friends and family back home to text or call as if you had a local number. (You are charged 20 cents a minute to receive the call, though.)
Web browsing was surprisingly affordable in many places; in Scandinavia, it was 49 cents a megabyte on Telestial, which was enough to keep up with e-mail, tweet regularly and use the occasional app or Google search. Prices have dropped recently, to as little as 10 cents a megabyte with a $99 bundle from Telestial or 25 cents a megabyte with OneSimCard's Daily Data Package.
For pure Web browsing, install the Opera Mini app, a free, intuitive browser that saves money by compressing data to a fraction of what Safari or Chrome or many other mobile browsers do.
Most of the time, you can travel from one country to another and your phone is unfazed, simply switching from one local company to another. (Data rates will change, but you can find them easily online.) You load your phone with credits and set your account to reload automatically.
But the international SIM cards can be quirky. For instance, to make a call, you enter the number and press enter or send. The call is instantly disconnected, and sometimes weird codes appear on the screen. Seconds later, the phone rings. You pick up, and then it connects your call. It's weird at first, but you get used to it. My biggest complaint, especially with Telestial, was that calls sometimes did not connect - and occasionally forced me to restart my phone to try again.
If that sounds too frustrating and you're an AT&T or Verizon customer, consider their newly competitive international data plans.AT&T, for example, now offers $30 a month rates that allow 120 megabytes of usage in over 140 countries. The cost of voice minutes, though, is still very high and can't compete with the international SIMs. A final note: though the rates sound reasonable, beware. You can easily fall into your home habits and stay overconnected. Don't. For a while, I was running through $10 or $15 of data a day.
The Power Users
You want connectivity 24/7, and you'll sacrifice convenience - but not too much money - for it.
What you should do: Buy local SIM cards. It's the cheapest way to go. But it's also the biggest hassle. Make that hassles.
First, you'll need to research and compare domestic companies' rates and coverage for each country you're visiting.
Then once you find a place to buy the card, you'll have to activate it and get used to its systems (for dialing, adding credit, and so on). If credit disappears faster than you think it should, there's little recourse. (The companies mentioned earlier have excellent American- or Australian-based customer service.)
Finally, while in some countries getting a local SIM card is as simple as handing cash to a street vendor, in others you have to fill out paperwork, provide documents and sometimes even travel across the city to register and activate your account.
The Addicts
You looked up from your smartphone once, and you didn't like what you saw. Your greatest fear is that you'll die and find out that heaven doesn't have a Wi-Fi connection.
Unless you just won a mega-lottery, forget about foreign travel for now. Head to some cozy spot in the United States where you and your smartphone can spend some uninterrupted quality time together. Find a cafe, check in there on Four Square, snap a picture of yourself and post it to Instagram, and remember not to leave before praising your latte's foam design on Yelp.
A trip abroad can wait, because, while there are a few companies that offer international plans for "Mi-Fi" devices, a sort of mobile hot spot with large data allowances in specific countries, they are still prohibitively expensive for budget travelers and won't cover you everywhere anyway.
Click the green for further info
Source: NYT
This is for your private use, only
________________________________________________________
STAF, Inc. urges you, your spouse & your children, no matter what age - if they cannot, yet, read, read it to them and
explain - your children learn early to avoid the pitches, tricks, and luring - ask your friends to read this article
Suffer. Spend. Repeat.
Important information
This info is valid year round - specifically for X-mas and for other holiday season shopping
IN these final weeks before Christmas, it may strike you that retailers have gone out of their way to make holiday shopping as unpleasant an experience as possible. The odd truth is that they probably have. And there’s a reason for that: evidence suggests that the less comfortable you are during the seasonal shopping spree, the more money you’ll spend.
So stores crank up music, repeat the same songs, over and over again, pipe in smells, race shoppers around to far-flung points of purchase and clog their heads with confusing offers. All of which makes it more likely we’ll part more readily with more money.
Take those Christmas songs — the ones that begin to play in stores in November and last for what seems like eternity. Few of us would claim to love listening to “The Little Drummer Boy” over and over; just last month, customer complaints reached such heights in Canada that Shoppers Drug Mart, the country’s largest pharmacy chain, caved to consumer pressure and announced it would switch off Christmas music “until further notice.”
But what we love or don’t love isn’t really the point. (The Canadian chain’s ban lasted only a couple of weeks.) Music played at high volumes, for example, may be irritating, but researchers from Penn State and the National University of Singapore concluded it was one of several factors that leads to overstimulation and “a momentary loss of self-control, thus enhancing the likelihood of impulse purchase.”
Those who create shopping environments really don’t care what music you like to listen to. A classic 1982 study by the marketing professor Ronald E. Milliman, now at Western Kentucky University, found that slower tempos make it more likely that shoppers will linger inside stores — and spend more money. If “White Christmas” keeps you in the store, who cares whether you like its languid phrasings?
Not that faster music slows spending. The researchers at Penn State and in Singapore found that upbeat music can, in fact, overstimulate shoppers and prompt impulsive purchases. Other studies suggest that classical music incites more spending than Top 40 tunes when played in wine stores and that songs with “pro-social” lyrics result in higher tips for restaurant staff.
Smell is another part of the retailer’s arsenal. Like music, smells are selected to encourage spending, not to make your shopping experience more comfortable.
Eric Spangenberg, a Washington State University professor who specializes in the marketing power of scent, explains how retailers try to fill stores with what he calls “congruent” smells, meaning aromas that customers connect with the season or seasonal products.
“Just because people prefer something doesn’t necessarily make it effective for commercial purposes,” Mr. Spangenberg adds. Cinnamon, for example, may smell like holiday time and family togetherness, even to those of us who have never cared for cinnamon. Deploying the same olfactory reasoning, the British toy-store chain Hamleys filled its aisles with the aroma of piña coladas a few summers ago, evidently on the theory that piña colada says “vacation” — if not to children, then to the parents who pay for their toys.
Customer inconvenience can also work to retailers’ advantage. It’s well known that staples like bread and milk are often found at opposite ends of the supermarket, because this forces shoppers to travel the length of the store, past shelves of tempting nonessentials. In a department store, the same logic may guide designers to create store layouts that make it impossible for customers to move far without stopping — to let others pass, for example — thereby increasing the chances that their eyes will come to rest on products they can’t resist. Products that seem conveniently placed, including low-cost items in bins near the entrance, are probably there to coax you through the initial “deliberation phase” of shopping.
According to the theory of “shopping momentum,” as explained by researchers from Stanford, Yale and Duke Universities, we fret far more about whether to buy the first item we purchase during a trip than we do subsequent ones.
PERHAPS the subtlest technique in the salesclerk’s repertory, and a reliable way to turn negative emotions into sales, is known as “disrupt-then-reframe.” The idea is to confuse a potential customer, so as to evoke uncertainty, then rush in and offer a reassuring path through the resulting confusion. In a vivid demonstration of the effect in 1999, the psychologists Barbara Price Davis and Eric W. Knowles sent researchers door to door, selling holiday cards for charity. When they described the price as $3 for one package of cards, 35 percent of people decided to buy. But when they described the same offer in terms of “300 pennies,” and then added a clarifying coda — “It’s a bargain!” — their success rate shot up to 65 percent.
We hunger for what psychologists call “cognitive closure,” and if spending is the solution, so be it.
To stretch the idea slightly, might we think of most holiday shopping ploys as a large-scale exercise in “disrupt-then-reframe”? The music’s too loud, the lights are too bright, the streets, subways and buses are sardine tins. The relentless sensory overload — from the cinnamon smells to the Salvation Army bells — fuels agitation and an impulse to escape. How convenient, then, that there appears to be one obvious route through the chaos: buy that Nintendo Wii or that iPad or that designer perfume — whatever you’ve been wavering over — and be done with it.
We might, and probably should, rail against such techniques. We could choose to shop online, as millions do. But we might also turn our attention within, to ask why it is we’re so bothered by the lights and the crowds, so disturbed by anxiety that we’ll shop in order to make it go away. An alternative might be to cultivate what Buddhists call “nonattachment” — and if the earliest Buddhists tended to practice this in beautiful natural settings, perhaps that’s only because they lacked shopping malls. Stand on a busy downtown street at dusk on a pre-Christmas Saturday with this in mind, and decline to be swayed by the exhortations to spend, and it suddenly becomes a purely exhilarating spectacle, as breathtaking, in its own way, as any waterfall or mountain panorama.
A final truth about holiday shopping and happiness: even those of us who don’t enjoy the experience might be forced to admit that we enjoy disliking it. After all, nobody is forced to wait till December to buy gifts, yet every year we do so in droves, plunging with abandon into the precisely choreographed awfulness the retailers work so hard to perfect. I’m not quite ready to go as far as the poet and historian Jennifer Michael Hecht, who writes that holiday shopping fulfills “an ancient need to gather and tithe, and serves as a modern-day ritual of renewal.” I won’t claim that “The Little Drummer Boy” actually improves my holiday season. But things would feel very strange without him.
Source: NYT
By Oliver Burkeman
Oliver Burkeman is a columnist for The Guardian and
the author of “The Antidote: Happiness for People Who Can’t Stand Positive Thinking.”
This is for your private use, only,
except for educational can used
_______________________________________________________________
The Cost of Doing Business in China
Date: February 8, 2013
An American professor and management consultant, who recently returned from eight years of working with international corporations and teaching at a number of universities in China, says he has a lot of issues with China and has no desire to return there.
“One of the biggest struggles I had in China was maintaining my ethics, maintaining those core values that, as Americans, we’re brought up with,” Dr. Lynn Knight told The Epoch Times in an interview. “When you go to China, all of that gets turned upside down,” he said.
Dr. Knight holds a Masters degree in Organizational Psychology from Harvard University, a Masters of Management from Cambridge College, and a Ph.D. in management and workforce performance from San Diego University I.S. With over 30 years’ experience in workforce development, he has worked with a number of multinational companies and learning institutions, including BMW, ADL Corporation, Beijing United Family Hospital, Bank of China, Lenovo Computers, Sino-British Institute, and China Agricultural University and has coached a range of leaders, from CEO’s, senior vice managers, middle managers, and line managers.
Dr. Knight stated that, like many people back in the early 2000s, he thought China was the place to be in terms of economic growth and business opportunities and the international organizations there could use his services.
Before setting out for China in 2004, his plan was to start a workforce management consulting business in China by partnering with a Chinese individual, “Mr. Wu,” whom he had met through a mutual friend in the United States. He was forewarned by people with prior experience of working and living in China that he needed to have a plan B in the event that things didn’t work out. They told him the best thing would be to get a teaching job at one of the universities, saying with his degrees and qualifications, he would definitely be hired. So, with a teaching contract at a university in China as well as this potential business partner, Dr. Knight felt that he was on his way.
However, the business relationship didn’t work out, he said, and the initial teaching job also didn’t go well.
Dr. Knight said he has no desire to go back to China, and he wouldn’t necessarily encourage people at this point to venture off to China to do business given China’s current social and political problems.
Everything Changed Upon Arrival When Dr. Knight arrived at Yang En University in Fujian Province with nine other foreign teachers who had all been hired to teach various academic subjects, they found “dire” conditions.
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“You look at this Yang En University’s website, as I did in America; it seemed like a very modern university. The surroundings seemed very modern, they looked no different than any other university in America. But looks can be deceiving,” Dr. Knight said.
The university was next to a very small village called Majia, about two and a half hours drive from Xiaman, the next largest city with an international airport.
Dr. Knight said that within seconds of arriving many of the things agreed upon changed, including contract, living arrangements, pay, and the number of students per class.
Their living quarters were not ready at the time of their arrival, and they had to live in a dirty, rundown hotel for several days. However, their apartments turned out not any better; they were very dirty, with no running water or electricity.
“We were told, ‘don’t worry, we’ll take care of this, this is only temporary,’ but it went on for six months,” Dr. Knight said.
“The phrase ‘don’t worry’ became a common term during my stay in China,” he added. “It meant, ‘you’ll get used to it.’”
CheatingOne major issue that he quickly had to get used to was the magnitude of cheating among Chinese students and Chinese teachers’ seeming acceptance of this behavior, Dr. Knight said. He learned that lesson in his first two months of class at Yang En during his first examination he had to give the students.
After he wrote up the exam, he was told to take it to the copying room, and they would make copies for all the students. On the day of the examination he distributed the booklets, and the students sat down to take the exam, which he had estimated would take them about an hour and a half to complete. But this particular class finished it in 20 minutes.
“I was dumbfounded, and thinking to myself, wow, Chinese kids are really smart!” Dr. Knight said. “Then I asked myself, how can 110 Chinese students with very limited English comprehension do this well?”
Only later did he learn from his foreign colleagues that the students had been cheating, because he not only dropped off the exam at the copying room, but also the answer key–as was required by the school. The copy room people then sold the students copies of the answers.
And that’s why they were able to finish their exams so quickly. They didn’t even have to read the questions. As it was multiple choice, and true or false, all they had to do was memorize the order of the A, B, and C and the true and false. “And they are very good at memorization,” Dr. Knight said.
“My heart just sunk, because, again, it’s going against the grain of how we are taught and how students are in America,” he said.
Business PartnerWhile teaching at Yang En University, Dr. Knight also met with his business partner, Mr. Wu, who flew out from Beijing. They had a meeting and wrote up contracts.
“We had an agreement,” Dr. Knight said. “I had explained to Mr. Wu what I wanted to do in terms of business consulting, and Mr. Wu said, ‘That’s what I want to do as well, but I need someone with your expertise because we don’t have this type of business in China.’ And then he said, ‘I want to introduce you to Chinese organizations as well as international organizations. You’ll give me credibility, I’ll do the marketing, I’ll get the clients, and you’ll set up the programs.’ And so I thought it was a good idea. We exchanged our cards and information and I began putting one of the management programs together.”
China’s communist history plays a major role in the behavior of mainland Chinese today, he said.
Then Mr. Wu asked for a sample presentation, saying there would be another person involved who knew certain businesses and would be helping them developing the marketing end.
Dr. Knight said he didn’t think anything of it and gave him an hour and a half written presentation, basically laying out his intellectual property, the whole business plan, and telling him: “This is what organizations are looking for. This is how it should be laid out.”
“The guy was ecstatic and said, ‘Yes, the business is going to go very well,’” Dr. Knight said.
“To make a long story short, at one point he said, ‘Lynn can you forward us samples of a presentation that you would give an organization, this would help in opening more doors.’
“So I sent him information, it seemed like–this is hindsight 20/20–every other three weeks he would be asking for bits and pieces of more information to the point that he had everything that I had presented. And once he had everything, the conversations stopped,” Dr. Knight said.
“I emailed and called. To call, I had to go to another city because the university only had one telephone. He had disappeared, totally disappeared. It was like the guy did not exist,” Dr. Knight said.
This actually happened twice while in China. Dr. Knight said that after two such experiences, he realized that he had to be more cautious, that he couldn’t go in “like a foreigner, so gullible, trusting everyone.”
Maintaining SanityThere were other annoying and alarming things at Yang En University. Dr. Knight said the university locked them in at night, saying it was necessary to keep thieves out, and he had to bribe the guards to let him out in the morning to go jogging. He also learned that the owner of the university was a drug lord who sold drugs from Burma.
After about six months, Dr. Knight thought that it was better to get out of there while he still had his health. He said he didn’t want to go back to America after his first negative encounters because he was sure that other areas in China were not like this, and that this was just one of those unique situations.
At the Spring Festival break, he and three of his foreign colleagues decided it would be best to pack all their belongings at night and head out to Xiamen. Since they didn’t understand how things worked in China, they would just say they were going on vacation.
Dr. Knight had already contacted Jimei University in Xiamen through a friend who was also going there to assure that they had a position open. In addition, this university was a sister university of Keuka College, New York, making him feel a little more confident since at least there was a Western connection.
“I started teaching leadership development and organizational behavior. It was a nice difference from how I started. I felt a little more relaxed,” Dr. Knight said.
But then other things began to happen, Dr. Knight said. While in Xiamen, ongoing issues began regarding contracts, things that were verbally promised but then later changed.
Problems also surfaced with teaching ethics in the classroom, about what he could and could not say. There is a Communist Party spy sitting in every class that is taught by a foreign teacher, Dr. Knight said. It could be a student selected by the university or a Party worker. That person’s job is to report anything that might be interpreted as being negative toward the communist government. Speaking anything about religion could get you immediately deported, he said.
“When you go to China, maintaining your ethics, maintaining those core values that we’re brought up with, having a keen understanding of what’s right and what’s wrong, what’s truth and what’s a lie, all of that’s turned upside down. You start questioning: wait a minute, that person just told me a lie; she knows she lied to me, I know she lied to me, but she is sitting there with a straight face as if to say, ‘I didn’t lie to you.’ So you go through this questioning of your own values.”
Cheating in the classroom was also prevalent at Jimei University, Dr. Knight said. A colleague told him that he could expect that 75 percent of students in China will cheat.
“I was thinking, why? As a behaviorist, you always look at patterns of behavior, and you always look at those influences that impact the environment. So I said to myself, I need to look at this, to maintain my sanity. And also, why a culture like this breeds this type of behavior when doing the right thing is very easy to do and very simple to do.”
Dr. Knight said: “No matter where you go, there are certain behaviors that are common among all of us. They are those basic, core human morals and values, which are honesty and the ability to give of oneself when another human being is in need. These are core values that a lot of countries hold as true, except for China. And this is one of the issues that a lot of foreign entities that go into China have.”
During the eight years in China, Dr. Knight said he worked in many educational and business organizations. As a consultant he had the opportunity to work in international companies, including BMW and Lenovo, and heard their concerns about working with Chinese companies and Chinese employees; the lack of integrity and morality are of great concern to foreign businesses, he said.
“Of course the government has a lot to do with it,” he added. “Therefore, what the government does reflects on the behavior of the people. The people have very little voice. And they have very little self-guidance, so the government gives that to them. And what the people see in the government, the people then translate into: this is how things should be. If the government is corrupt, guess what, the people will be corrupt. They will say, ‘The government does this, so I should be able to do this also.’”
This view by the larger Chinese population was inspired by Deng Xiaoping who encouraged the Chinese people to get ahead no matter the cost or circumstances, Dr. Knight explained. The term Deng Xiaoping used was, “black cat, white cat,” meaning it doesn’t matter which you use as long as you are making as much money as you can; cheat, lie, steal, and pollute, just make the money!
“When the vast majority, 75 to 80 percent of a country or group, believes that this behavior is normal or accepted, then you have a country and government that is out of sync with the rest of the world,” Dr. Knight said.
Dr. Knight said that foreigners often feel forced to put those core values aside in order to get business done, and from what he has seen in China, it has affected some so much that they had to leave China. Many international managers were not able “to shift, be that flexible,” in order to do their job in a country that requires you to do things that might not necessarily hold to standard.
“For me, it’s been very hard to swallow that,” Dr. Knight said. “And to be honest, I’ve gotten into a lot of scuffles with different organizations and with people because I refused to compromise myself… It really questioned me as a person, as a human being. However, substandard behavior is a very normal thing in China.”
One of the core values in China is saving face, Dr. Knight said. You are not supposed to tell anybody to their face that they are lying or a mistake has been made. When you’re in a meeting, and you know that the information they’re giving you is plagiarized, but they are trying to sell it as their own–you know that, they know that; but you don’t tell.
“You save face by denying to the bitter end that, ‘no, I am not cheating, no, I am not plagiarizing, no, I am not taking advantage of you; you are obviously seeing things the wrong way!’ … I was feeling I was in a world that was turned upside-down–the twilight zone.”
Discrimination Dr. Knight said China is very skin color oriented. Most Chinese people discriminate against people of color, he found, and as an American Black he experienced many situations, some funny and some sad, he said.
But they also have a peculiar relationship with whites, Dr. Knight said. “To date a white man is seen as sort of a privilege. But on the other hand whites are looked down upon; they are people you should take from as much you can, while you can, because they have the resources,” he said.
The most terrifying incident he witnessed in regard to racial discrimination happened on Sept. 21, 2007 in Beijing while he was teaching at Agricultural University (nongye daxue) one of the three top universities in Beijing.
[xtypo_quote]Dr. Knight said he is writing a book about his experiences so that people can see the other face of China, which is not necessarily what’s commonly reported in the media.
On that Friday evening Dr. Knight had plans to go out and meet some friends for dinner. But a colleague called him and told him that tonight wouldn’t be a good time for him to come into town. The Beijing police were beating every dark skin male they could find, beating, kicking, spitting on, and tasering them. So he decided to stay in.
China was preparing for the Olympic Games, and the Chinese government wanted to “sort of purify” Beijing for the world to see how nice and safe Beijing was, Dr. Knight said. They decided to instigate a fake drug bust in a large Beijing neighborhood called Sanlitun that foreigners frequent.
From what Dr. Knight learned later, security forces brought in hundreds of poor young Chinese men from the country side, dressed them in black jumpsuits, put them through a “mug” program, and armed them with sticks. And then they were given orders to round up every black male they could find in the Sanlitun area, thoroughly beat them up, and bring them in. It didn’t matter who or where they were–in a restaurant with the family, walking down the street, or in a grocery store–as long as they were black and in this area, they were to be beaten and brought in.
The young men were trained with a videotape of the Rodney King beating that had happened in 1991 in Los Angeles, Dr. Knight said.
“How I know that, is because I had a consulting job. The person who I was working for said that one of his friends happened to be a policeman who took part in the training session where they were showing this tape,” Dr. Knight said.
“So, for over four hours these thugs went into this area and rounded up every black male, no matter who you were, threw them down and beat them severely. The son of a Caribbean diplomat got also caught up in it. His arm was broken from the beatings.”
Most of the men were African expats who happened to be in the area, Dr. Knight said. “If you’re from Africa, that’s like the kiss of death in China.”
The Guardian of the UK was the only international news organization who reported this in an article on Sept. 25, 2007. Other than that, “you wouldn’t know that this happened,” Dr. Knight said.
“The next morning I joined a few of my friends to go see the aftermath of what happened the evening before, what I saw brought tears to my eyes,” Dr. Knight said. “The government tried to hurriedly clean up the mess they had made the evening before; hoping to do this before too many outsiders could see the aftermath of their brutality. In washing down the streets, the water mixed with blood, the streets looked like a river of blood from the beatings the night before.”
Dr. Knight said that when an American asked the Beijing police, how their government could be so cruel, his response was: “We learned this from the American police. Isn’t this the way you do it in America?”
The man told him: “You are so far behind the time. No, this is not how it is done in America.”
It’s Not In the MediaDr. Knight said he has no desire to go back to China, and he wouldn’t necessarily encourage people at this point to venture off to China to do business given China’s current social and political problems.
When he left America to go to China, he had an image based on the American-Chinese citizens he met in America that have been here for 80 or so years, who are hardworking, trusting, dependable and intelligent. “When I got to China, it was totally the opposite,” he said.
Dr. Knight said he is writing a book about his experiences so that people can see the other face of China, which is not necessarily what’s commonly reported in the media. China’s communist history plays a major role in the behavior of mainland Chinese today, he said.
“We’ve come to view China through the economic face: it’s a vibrant country, this is where business is, where the opportunities are. In fact, it’s not! We also need to know the culture and why Chinese people are this way,” Dr. Knight said. “Because if you don’t really understand your competition, how do you know how to work with your competition? How do you know how to make the necessary decisions?”
To contact Dr. Lynn Knight about this article, please email him at: [email protected]
Source: The Epoc Times
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Article 1 of 3 See the two other relating articles 2 of 3 & 3 of 3 below
The Best- and Worst-Run States in America
2012
Click green for further info
How well run are America’s 50 states? The answer depends a lot on where you live.
Every year, 24/7 Wall St. conducts an extensive survey of all fifty states in America. Based on a review of data on financial health, standard of living and government services by state we determine how well each state is managed. For the first time, North Dakota is the best run. California is the worst run for the second year in a row.
The successful management of a state is difficult to measure. Factors that affect its finances and population may be the result of decisions made years ago. A state’s difficulties can be caused by poor governance or by external factors, such as extreme weather.
[More from 24/7 Wall St.: America’s Poorest States]
A state with abundant natural resources should have an easier time balancing its budget than one starved for resources. Regional problems or the national decline of certain industries can destroy local economies. The subprime mortgage crisis, for example, disproportionately affected states with strong construction and real estate markets. Such factors can be easily identified and noted as possible causes for a state’s poverty levels, unemployment, or strained coffers.
Despite this, it is the responsibility of each state to deal with the resources at its disposal. Each government must anticipate economic shifts and diversify its industries and attract new business. A state should be able to raise enough revenue to ensure the safety of its citizens and minimize hardship without spending more than it can prudently afford. Some states have historically done this much better than others.
To determine how well the states are run, 24/7 Wall St. reviewed hundreds of data sets from dozens of sources. We looked at each state’s debt, revenue, expenditure and deficit to determine how well it is managed fiscally. We reviewed taxes, exports, and GDP growth, including a breakdown by sector, to identify how each state is managing its resources. We looked at poverty, income, unemployment, high school graduation, violent crime and foreclosure rates to measure if residents are prospering.
The best-run states have certain characteristics in common, as do the worst run. The high-ranking states all have well-managed budgets. Each of the top ten has a perfect, or near-perfect, credit rating from Standard & Poor’s, Moody’s, or both. Of the ten worst-ranked, only three received top scores from one agency, and none from both. California is currently the only state rated A- by S&P, the lowest score given to any state. These poor-ranked states have high debt relative to both income and expenditure.
There is a strong correlation between well-educated populations and generally well-managed states. Of the ten best-scoring states on our list, nine have among the highest percentages of adults with high school diplomas.
[More from 24/7 Wall St.: The 12 Companies Paying Americans the Least]
Employment is also closely correlated to how well a state is managed. The unemployment rates of most of the poorly ranked states are among the highest in the country. Nine of the ten best-ranked states had an unemployment rate of less than 7% in 2011. This includes North Dakota, which had the lowest rate in the country in 2011, at just 3.6%. The average unemployment rate nationwide was 8.9% in 2011.
Best-Run States:
1. North Dakota
Thinkstock> Debt per capita: $3,282 (22nd lowest)
> Budget deficit: None
> Unemployment: 3.5% (the lowest)
> Median household income: $51,704 (20th highest)
> Pct. below poverty line: 12.2% (13th lowest)
For the first time, North Dakota ranks as the best run state in the country. In recent years, North Dakota’s oil boom has transformed its economy. Last year, crude oil production rose 35%. As of August, 2012, it was the second-largest oil producer in the country. This was due to the use of hydraulic fracturing in the state’s Bakken shale formation. The oil and gas boom brought jobs to North Dakota, which had the nation’s lowest unemployment rate in 2011 at 3.5%, and economic growth. Between 2010 and 2011, North Dakota’s GDP jumped 7.6%, by far the largest increase in the nation. This growth has also increased home values, which rose a nation-leading 29% between 2006 and 2011. North Dakota and Montana are the only two states that have not reported a budget shortfall since fiscal 2009.
2. Wyoming
Thinkstock> Debt per capita: $2,694 (18th lowest)
> Budget deficit: 10.3% (32nd largest)
> Unemployment: 6.0% (7th lowest)
> Median household income: $56,322 (13th highest)
> Pct. below poverty line: 11.3% (6th lowest)
Wyoming is not the best-run state in the nation this year. The drop is largely due to the state’s contracting economy. In 2011, GDP shrunk by 1.2%, more than any other state. As a whole, however, the state is a model of good management and a prospering population. The state is particularly efficient at managing its debt, owing the equivalent of just 20.4% of annual revenue in fiscal 2010. Wyoming also has a tax structure that, according to the Tax Foundation, is the nation’s most-favorable for businesses — it does not have any corporate income taxes. The state has experienced an energy boom in recent years. The mining industry, which includes oil and gas extracting, accounted for 29.4% of the state’s GDP in 2011 alone, more than in any other state. As of last year, Wyoming’s poverty, home foreclosure, and unemployment rates were all among the lowest in the nation.
3. Nebraska
Thinkstock> Debt per capita: $1,279 (2nd lowest)
> Budget deficit: 9.7% (34th largest)
> Unemployment: 4.4% (2nd lowest)
> Median household income: $50,296 (22nd highest)
> Pct. below poverty line: 13.1% (tied-15th lowest)
Last year, Nebraska had the second-lowest unemployment rate in the nation at 4.4%. In Lincoln, the state capital, the unemployment rate was 4%, lower than all metropolitan areas in the country, except Bismarck and Fargo in North Dakota. Although far from the nation’s wealthiest state — median income was slightly lower than the U.S. median of $50,502 — Nebraska’s economy is strong relative to the rest of the U.S. The state is one of the leading agricultural producers, with the sector accounting for 8.3% of the state’s GDP last year. The state also had the second-lowest debt per capita in the country in fiscal 2010, at $1,279, compared to an average of $3,614 for states nationwide.
4. Utah
Thinkstock> Debt per capita: $2,356 (15th lowest)
> Budget deficit: 14.7% (25th largest)
> Unemployment: 6.7% (tied-11th lowest)
> Median household income: $55,869 (14th highest)
> Pct. below poverty line: 13.5% (tied-17th lowest)
In fiscal 2011, Utah had a budget deficit of $700 million, equal to 14.7% of the state’s GDP. This debt-to-GDP ratio is worse than half the states in the U.S. Despite these problems, Utah has committed to reducing expenses in place of raising taxes or increasing debt. The state has also limited its borrowing. Its total debt was just under $6.5 billion in fiscal 2010, or $2,356 per capita — less than most states — and 40.4% of 2010 tax revenue. Both Moody’s and S&P gave Utah their highest credit ratings because of the state’s strong fiscal management. Moody’s commented that Utah has a “tradition of conservative fiscal management; rebuilding of budgetary reserves after their use in the recession; [and] a closely managed debt portfolio.”
5. Iowa
Thinkstock> Debt per capita: $1,690 (7th lowest)
> Budget deficit: 20.3% (18th largest)
> Unemployment: 5.9% (6th lowest)
> Median household income: $49,427 (24th highest)
> Pct. below poverty line: 12.8% (14th lowest)
Like many of the other well-run states, Iowa is one of the nation’s top agricultural centers — the industry accounted for 6.6% of the state’s GDP in 2011. The farm economy has contributed significantly to growth, with farm earnings rising rapidly and land values skyrocketing. State GDP rose by 1.9% between 2010 and 2011 — the 12th-highest increase in the country. Iowa’s unemployment rate fell from 6.3% in 2010 to just 5.9% in 2011, the nation’s sixth-lowest rate. The state has carried a low debt burden in recent years, averaging just $1,690 per capita in fiscal 2010, among the nation’s lowest. The state currently has the best possible credit ratings both from Moody’s and S&P.
Worst-Run States:
50. California
Thinkstock> Debt per capita: $4,008 (18th highest)
> Budget deficit: 20.7% (17th largest)
> Unemployment: 11.7% (2nd highest)
> Median household income: $57,287 (10th highest)
> Pct. below poverty line: 16.6% (18th highest)
California is 24/7 Wall St.’s “Worst Run State” for the second year in a row. Due to high levels of debt, the state’s S&P credit rating is the worst of all states, while its Moody’s credit rating is the second-worst. Much of California’s fiscal woes involve the economic downturn. Home prices plunged by 33.6% between 2006 and 2011, worse than all states except for three. The state’s foreclosure rate and unemployment rate were the third- and second-highest in the country, respectively. But efforts to get finances on track are moving forward. State voters passed a ballot initiative to raise sales taxes as well as income taxes for people who make at least $250,000 a year. While median income is the 10th-highest in the country, the state also has one of the highest tax burdens on income. According to the Tax Foundation, the state also has the third-worst business tax climate in the country.
49. Rhode Island
Thinkstock> Debt per capita: $9,018 (3rd highest)
> Budget deficit: 13.4% (28th largest)
> Unemployment: 11.3% (3rd highest)
> Median household income: $53,636 (17th highest)
> Pct. below poverty line: 14.7% (24th lowest)
Rhode Island’s finances were a mess in fiscal 2010. The state had $9.5 billion in unpaid debts, which came to 107.2% of that year’s revenues.At more than $9,000 per person, it’s one of the largest debt burdens in the country. The state also funded less than half of its pension obligations, worse than all states except for Illinois. In 2010, in a spectacular example of fiscal mismanagement, the state guaranteed a $75 million loan to a video game company, which has since defaulted. With one of the nation’s slowest growth rates and the third-highest unemployment rate in the U.S., at 11.3%, Rhode Island’s economy performed poorly overall.
48. Illinois
Thinkstock> Debt per capita: $4,790 (11th highest)
> Budget deficit: 40.2% (2nd largest)
> Unemployment: 9.8% (tied-10th highest)
> Median household income: $53,234 (18th highest)
> Pct. below poverty line: 15.0% (25th highest)
Although many states have budget issues, Illinois’ faces among the biggest problems. In 2010, the state’s budget shortfall was more than 40% of its general fund, the second-highest of any state. Both S&P and Moody’s gave Illinois credit ratings that were the second-worst of all states. In addition, the state only funded 45% of its pension liability in 2010, the lowest percentage of any state. Governor Patrick Quinn has made the now-$85 billion pension gap a top priority for the new legislative session beginning in January.
47. Arizona
Thinkstock> Debt per capita: $2,188 (12th lowest)
> Budget deficit: 39.0% (3rd largest)
> Unemployment: 9.5% (tied-13th highest)
> Median household income: $46,709 (21st lowest)
> Pct. below poverty line: 19.0% (tied-8th highest)
Between 2006 and 2011, the value of homes in Arizona tumbled by 35%, more than every state except for Nevada. The state also had the nation’s second-highest foreclosure rate in 2011, with one in every 24 homes in foreclosure. In the aftermath of the financial crisis, Arizona had some of the nation’s largest budget shortfalls. In fiscal 2010, the state had a shortfall of $5.1 billion, equal to 65% of its general fund. In fiscal 2011, Arizona’s budget deficit was 39.0% of its general fund, the third-highest in the nation. In the recent state elections, residents voted on several measures intended to shore up the state’s finances. Voters rejected the continuation of a sales tax hike, while approving the restructuring of the state’s property tax assessment system.
46. New Jersey
Thinkstock> Debt per capita: $6,944 (5th highest)
> Budget deficit: 38.2% (4th largest)
> Unemployment: 9.3% (14th highest)
> Median household income: $67,458 (3rd highest)
> Pct. below poverty line: 10.4% (3rd lowest)
Between 2010 and 2011, New Jersey’s GDP contracted by 0.5%, more than all but three other states. The state’s median household income and poverty rate were both third best in the nation. On the other hand, the state’s tax burden on its residents was second highest in the U.S. in 2010. Residents paid 12.4% of their income in state and local taxes, higher than any other state except New York. The state has many budget problems, as well. New Jersey’s debt as a percentage of revenue was 91.6%, the fifth-highest of all states.
How did your state do?
Click green here for the full list of the best- and worst-run states.
Methodology:
24/7 Wall St. considered data from a number of sources, including Standard & Poor’s, the Bureau of Labor and Statistics, the U.S. Census Bureau, the Tax Foundation, RealtyTrac, The Federal Bureau of Investigation and the National Conference of State Legislators.
Unemployment data was taken from the U.S. Bureau of Labor Statistics. Credit ratings were from ratings agencies S&P and Moody’s. We relied on the FBI’s Uniform Crime Report for violent crime rate by state and large metropolitan areas. RealtyTrac provided foreclosure rates.
A significant amount of the data we used came from the U.S. Census Bureau’s American Community Survey. Data from ACS included percentage of residents below the poverty line, high school completion for those 25 and older, median household income, percentage of the population without health insurance and the change in median home values from 2006 to 2011. These are the values we used in our ranking.
Once we reviewed the sources and compiled the final metrics, we ranked each state based on its performance in all the categories. All data are for the full year 2011, with the exception of debt per capita, obtained from the Tax Foundation, and state budgetary data, which came from the U.S. Census Bureau, and is for fiscal year 2010. New to this year’s study was our more detailed review of state industry for 2011, from the the Bureau of Economic Analysis, exports per capita for 2011, from the Census Bureau, and the 2010 tax burden and the current tax business climate, from the Tax Foundation.
MORE FROM
See the related articles 2 of 3 & 3 of 3 below
______________________________________________
The Best- and Worst-Run States in America
2012
Click green for further info
How well run are America’s 50 states? The answer depends a lot on where you live.
Every year, 24/7 Wall St. conducts an extensive survey of all fifty states in America. Based on a review of data on financial health, standard of living and government services by state we determine how well each state is managed. For the first time, North Dakota is the best run. California is the worst run for the second year in a row.
The successful management of a state is difficult to measure. Factors that affect its finances and population may be the result of decisions made years ago. A state’s difficulties can be caused by poor governance or by external factors, such as extreme weather.
[More from 24/7 Wall St.: America’s Poorest States]
A state with abundant natural resources should have an easier time balancing its budget than one starved for resources. Regional problems or the national decline of certain industries can destroy local economies. The subprime mortgage crisis, for example, disproportionately affected states with strong construction and real estate markets. Such factors can be easily identified and noted as possible causes for a state’s poverty levels, unemployment, or strained coffers.
Despite this, it is the responsibility of each state to deal with the resources at its disposal. Each government must anticipate economic shifts and diversify its industries and attract new business. A state should be able to raise enough revenue to ensure the safety of its citizens and minimize hardship without spending more than it can prudently afford. Some states have historically done this much better than others.
To determine how well the states are run, 24/7 Wall St. reviewed hundreds of data sets from dozens of sources. We looked at each state’s debt, revenue, expenditure and deficit to determine how well it is managed fiscally. We reviewed taxes, exports, and GDP growth, including a breakdown by sector, to identify how each state is managing its resources. We looked at poverty, income, unemployment, high school graduation, violent crime and foreclosure rates to measure if residents are prospering.
The best-run states have certain characteristics in common, as do the worst run. The high-ranking states all have well-managed budgets. Each of the top ten has a perfect, or near-perfect, credit rating from Standard & Poor’s, Moody’s, or both. Of the ten worst-ranked, only three received top scores from one agency, and none from both. California is currently the only state rated A- by S&P, the lowest score given to any state. These poor-ranked states have high debt relative to both income and expenditure.
There is a strong correlation between well-educated populations and generally well-managed states. Of the ten best-scoring states on our list, nine have among the highest percentages of adults with high school diplomas.
[More from 24/7 Wall St.: The 12 Companies Paying Americans the Least]
Employment is also closely correlated to how well a state is managed. The unemployment rates of most of the poorly ranked states are among the highest in the country. Nine of the ten best-ranked states had an unemployment rate of less than 7% in 2011. This includes North Dakota, which had the lowest rate in the country in 2011, at just 3.6%. The average unemployment rate nationwide was 8.9% in 2011.
Best-Run States:
1. North Dakota
Thinkstock> Debt per capita: $3,282 (22nd lowest)
> Budget deficit: None
> Unemployment: 3.5% (the lowest)
> Median household income: $51,704 (20th highest)
> Pct. below poverty line: 12.2% (13th lowest)
For the first time, North Dakota ranks as the best run state in the country. In recent years, North Dakota’s oil boom has transformed its economy. Last year, crude oil production rose 35%. As of August, 2012, it was the second-largest oil producer in the country. This was due to the use of hydraulic fracturing in the state’s Bakken shale formation. The oil and gas boom brought jobs to North Dakota, which had the nation’s lowest unemployment rate in 2011 at 3.5%, and economic growth. Between 2010 and 2011, North Dakota’s GDP jumped 7.6%, by far the largest increase in the nation. This growth has also increased home values, which rose a nation-leading 29% between 2006 and 2011. North Dakota and Montana are the only two states that have not reported a budget shortfall since fiscal 2009.
2. Wyoming
Thinkstock> Debt per capita: $2,694 (18th lowest)
> Budget deficit: 10.3% (32nd largest)
> Unemployment: 6.0% (7th lowest)
> Median household income: $56,322 (13th highest)
> Pct. below poverty line: 11.3% (6th lowest)
Wyoming is not the best-run state in the nation this year. The drop is largely due to the state’s contracting economy. In 2011, GDP shrunk by 1.2%, more than any other state. As a whole, however, the state is a model of good management and a prospering population. The state is particularly efficient at managing its debt, owing the equivalent of just 20.4% of annual revenue in fiscal 2010. Wyoming also has a tax structure that, according to the Tax Foundation, is the nation’s most-favorable for businesses — it does not have any corporate income taxes. The state has experienced an energy boom in recent years. The mining industry, which includes oil and gas extracting, accounted for 29.4% of the state’s GDP in 2011 alone, more than in any other state. As of last year, Wyoming’s poverty, home foreclosure, and unemployment rates were all among the lowest in the nation.
3. Nebraska
Thinkstock> Debt per capita: $1,279 (2nd lowest)
> Budget deficit: 9.7% (34th largest)
> Unemployment: 4.4% (2nd lowest)
> Median household income: $50,296 (22nd highest)
> Pct. below poverty line: 13.1% (tied-15th lowest)
Last year, Nebraska had the second-lowest unemployment rate in the nation at 4.4%. In Lincoln, the state capital, the unemployment rate was 4%, lower than all metropolitan areas in the country, except Bismarck and Fargo in North Dakota. Although far from the nation’s wealthiest state — median income was slightly lower than the U.S. median of $50,502 — Nebraska’s economy is strong relative to the rest of the U.S. The state is one of the leading agricultural producers, with the sector accounting for 8.3% of the state’s GDP last year. The state also had the second-lowest debt per capita in the country in fiscal 2010, at $1,279, compared to an average of $3,614 for states nationwide.
4. Utah
Thinkstock> Debt per capita: $2,356 (15th lowest)
> Budget deficit: 14.7% (25th largest)
> Unemployment: 6.7% (tied-11th lowest)
> Median household income: $55,869 (14th highest)
> Pct. below poverty line: 13.5% (tied-17th lowest)
In fiscal 2011, Utah had a budget deficit of $700 million, equal to 14.7% of the state’s GDP. This debt-to-GDP ratio is worse than half the states in the U.S. Despite these problems, Utah has committed to reducing expenses in place of raising taxes or increasing debt. The state has also limited its borrowing. Its total debt was just under $6.5 billion in fiscal 2010, or $2,356 per capita — less than most states — and 40.4% of 2010 tax revenue. Both Moody’s and S&P gave Utah their highest credit ratings because of the state’s strong fiscal management. Moody’s commented that Utah has a “tradition of conservative fiscal management; rebuilding of budgetary reserves after their use in the recession; [and] a closely managed debt portfolio.”
5. Iowa
Thinkstock> Debt per capita: $1,690 (7th lowest)
> Budget deficit: 20.3% (18th largest)
> Unemployment: 5.9% (6th lowest)
> Median household income: $49,427 (24th highest)
> Pct. below poverty line: 12.8% (14th lowest)
Like many of the other well-run states, Iowa is one of the nation’s top agricultural centers — the industry accounted for 6.6% of the state’s GDP in 2011. The farm economy has contributed significantly to growth, with farm earnings rising rapidly and land values skyrocketing. State GDP rose by 1.9% between 2010 and 2011 — the 12th-highest increase in the country. Iowa’s unemployment rate fell from 6.3% in 2010 to just 5.9% in 2011, the nation’s sixth-lowest rate. The state has carried a low debt burden in recent years, averaging just $1,690 per capita in fiscal 2010, among the nation’s lowest. The state currently has the best possible credit ratings both from Moody’s and S&P.
Worst-Run States:
50. California
Thinkstock> Debt per capita: $4,008 (18th highest)
> Budget deficit: 20.7% (17th largest)
> Unemployment: 11.7% (2nd highest)
> Median household income: $57,287 (10th highest)
> Pct. below poverty line: 16.6% (18th highest)
California is 24/7 Wall St.’s “Worst Run State” for the second year in a row. Due to high levels of debt, the state’s S&P credit rating is the worst of all states, while its Moody’s credit rating is the second-worst. Much of California’s fiscal woes involve the economic downturn. Home prices plunged by 33.6% between 2006 and 2011, worse than all states except for three. The state’s foreclosure rate and unemployment rate were the third- and second-highest in the country, respectively. But efforts to get finances on track are moving forward. State voters passed a ballot initiative to raise sales taxes as well as income taxes for people who make at least $250,000 a year. While median income is the 10th-highest in the country, the state also has one of the highest tax burdens on income. According to the Tax Foundation, the state also has the third-worst business tax climate in the country.
49. Rhode Island
Thinkstock> Debt per capita: $9,018 (3rd highest)
> Budget deficit: 13.4% (28th largest)
> Unemployment: 11.3% (3rd highest)
> Median household income: $53,636 (17th highest)
> Pct. below poverty line: 14.7% (24th lowest)
Rhode Island’s finances were a mess in fiscal 2010. The state had $9.5 billion in unpaid debts, which came to 107.2% of that year’s revenues.At more than $9,000 per person, it’s one of the largest debt burdens in the country. The state also funded less than half of its pension obligations, worse than all states except for Illinois. In 2010, in a spectacular example of fiscal mismanagement, the state guaranteed a $75 million loan to a video game company, which has since defaulted. With one of the nation’s slowest growth rates and the third-highest unemployment rate in the U.S., at 11.3%, Rhode Island’s economy performed poorly overall.
48. Illinois
Thinkstock> Debt per capita: $4,790 (11th highest)
> Budget deficit: 40.2% (2nd largest)
> Unemployment: 9.8% (tied-10th highest)
> Median household income: $53,234 (18th highest)
> Pct. below poverty line: 15.0% (25th highest)
Although many states have budget issues, Illinois’ faces among the biggest problems. In 2010, the state’s budget shortfall was more than 40% of its general fund, the second-highest of any state. Both S&P and Moody’s gave Illinois credit ratings that were the second-worst of all states. In addition, the state only funded 45% of its pension liability in 2010, the lowest percentage of any state. Governor Patrick Quinn has made the now-$85 billion pension gap a top priority for the new legislative session beginning in January.
47. Arizona
Thinkstock> Debt per capita: $2,188 (12th lowest)
> Budget deficit: 39.0% (3rd largest)
> Unemployment: 9.5% (tied-13th highest)
> Median household income: $46,709 (21st lowest)
> Pct. below poverty line: 19.0% (tied-8th highest)
Between 2006 and 2011, the value of homes in Arizona tumbled by 35%, more than every state except for Nevada. The state also had the nation’s second-highest foreclosure rate in 2011, with one in every 24 homes in foreclosure. In the aftermath of the financial crisis, Arizona had some of the nation’s largest budget shortfalls. In fiscal 2010, the state had a shortfall of $5.1 billion, equal to 65% of its general fund. In fiscal 2011, Arizona’s budget deficit was 39.0% of its general fund, the third-highest in the nation. In the recent state elections, residents voted on several measures intended to shore up the state’s finances. Voters rejected the continuation of a sales tax hike, while approving the restructuring of the state’s property tax assessment system.
46. New Jersey
Thinkstock> Debt per capita: $6,944 (5th highest)
> Budget deficit: 38.2% (4th largest)
> Unemployment: 9.3% (14th highest)
> Median household income: $67,458 (3rd highest)
> Pct. below poverty line: 10.4% (3rd lowest)
Between 2010 and 2011, New Jersey’s GDP contracted by 0.5%, more than all but three other states. The state’s median household income and poverty rate were both third best in the nation. On the other hand, the state’s tax burden on its residents was second highest in the U.S. in 2010. Residents paid 12.4% of their income in state and local taxes, higher than any other state except New York. The state has many budget problems, as well. New Jersey’s debt as a percentage of revenue was 91.6%, the fifth-highest of all states.
How did your state do?
Click green here for the full list of the best- and worst-run states.
Methodology:
24/7 Wall St. considered data from a number of sources, including Standard & Poor’s, the Bureau of Labor and Statistics, the U.S. Census Bureau, the Tax Foundation, RealtyTrac, The Federal Bureau of Investigation and the National Conference of State Legislators.
Unemployment data was taken from the U.S. Bureau of Labor Statistics. Credit ratings were from ratings agencies S&P and Moody’s. We relied on the FBI’s Uniform Crime Report for violent crime rate by state and large metropolitan areas. RealtyTrac provided foreclosure rates.
A significant amount of the data we used came from the U.S. Census Bureau’s American Community Survey. Data from ACS included percentage of residents below the poverty line, high school completion for those 25 and older, median household income, percentage of the population without health insurance and the change in median home values from 2006 to 2011. These are the values we used in our ranking.
Once we reviewed the sources and compiled the final metrics, we ranked each state based on its performance in all the categories. All data are for the full year 2011, with the exception of debt per capita, obtained from the Tax Foundation, and state budgetary data, which came from the U.S. Census Bureau, and is for fiscal year 2010. New to this year’s study was our more detailed review of state industry for 2011, from the the Bureau of Economic Analysis, exports per capita for 2011, from the Census Bureau, and the 2010 tax burden and the current tax business climate, from the Tax Foundation.
MORE FROM
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- States with the Highest (and Lowest) Taxes
See the related articles 2 of 3 & 3 of 3 below
______________________________________________
Article 2 of 3
See the related article 1 of 3 just above
& the article 3 of 3 next below
10 Cheapest Places to Live in The U.S.
Which U.S. cities have the lowest costs of living?
Compare - the article below after the Article 3 of 3:
10 Most Expensive Places to Live in the U.S.
The Council for Community and Economic Research recently measured the after-tax prices of common purchases in 307 urban areas. The council crunched more than 50,000 prices for everything from grocery items to transportation to housing to come up with
their (Click red: Cost of Living Index - (COLI) The national average is 100.
Following is a look at each of the 10 most affordable cities in the United States:
click green: 10 cheapest places to live in the U.S.
If the green link has expired search the web with the title
COMMENTS FROM THE PUBLIC
(1) INTELLECT73 says : Check Your sources all independent and government studies have shown Montana and South Dakota as the CHEAPEST States to live in! Super Low Taxes and Costs of Living Montana HAS NO SALES TAX figure out what you pay in your states also Low Property Taxes and currently the Cheapest Gasoline in the Nation. Low cost of natural gas heating power and don't need expensive air conditioning even low electric costs the good thing about the cold is it keeps the Texans and Californians from moving there! The Negative is the lack of good paying jobs.
(2) KSDJHFKAJWEF says: If you like living in the third world then Texas or Oklahoma would be good.
(3) RORYMARSH says:
I realize that several people are very passionate about where they live and believe that their town is the cheapest. Do you know why some people move to Jamaica to live? Jamaica has the following things that people live by. Wild ackee trees, wild breadfruit trees, wild coconut and mango trees, natural springs flowing. People need to come to Jamaica to see how you can really live on a small budget in style.
(4) TYGER624 says: I find this survey inaccurate. I live in North Carolina, and I can prove for a fact that I can live cheaper here than in any of those cities. Half-gallon of milk - $2.30, but everybody buys a whole gallon for $3.49 - Monthly rent $400-$600, depending which neighborhood Home price - You can buy a BRAND NEW home here for $120,000, and there are hundreds of other houses that cost less than $200,000, and nobody wants to pay more than $200,000 for a house. - Gallon of gas - $3.579 Haircut - $5-$10, depending who cuts it Movie ticket - $5. Go to the next city over and it's $8.50 - Bottle of wine - $4.50 and up So, CBS, before you do your little "study", look to everywhere in the U.S., not just Texas. It looks like someone favors Texas more than anywhere else. Hence why I watch ABC News instead.
________________________________________________________
See the related article 3 of 3 next below
__________________
See the related article 1 of 3 just above
& the article 3 of 3 next below
10 Cheapest Places to Live in The U.S.
Which U.S. cities have the lowest costs of living?
Compare - the article below after the Article 3 of 3:
10 Most Expensive Places to Live in the U.S.
The Council for Community and Economic Research recently measured the after-tax prices of common purchases in 307 urban areas. The council crunched more than 50,000 prices for everything from grocery items to transportation to housing to come up with
their (Click red: Cost of Living Index - (COLI) The national average is 100.
Following is a look at each of the 10 most affordable cities in the United States:
click green: 10 cheapest places to live in the U.S.
If the green link has expired search the web with the title
COMMENTS FROM THE PUBLIC
(1) INTELLECT73 says : Check Your sources all independent and government studies have shown Montana and South Dakota as the CHEAPEST States to live in! Super Low Taxes and Costs of Living Montana HAS NO SALES TAX figure out what you pay in your states also Low Property Taxes and currently the Cheapest Gasoline in the Nation. Low cost of natural gas heating power and don't need expensive air conditioning even low electric costs the good thing about the cold is it keeps the Texans and Californians from moving there! The Negative is the lack of good paying jobs.
(2) KSDJHFKAJWEF says: If you like living in the third world then Texas or Oklahoma would be good.
(3) RORYMARSH says:
I realize that several people are very passionate about where they live and believe that their town is the cheapest. Do you know why some people move to Jamaica to live? Jamaica has the following things that people live by. Wild ackee trees, wild breadfruit trees, wild coconut and mango trees, natural springs flowing. People need to come to Jamaica to see how you can really live on a small budget in style.
(4) TYGER624 says: I find this survey inaccurate. I live in North Carolina, and I can prove for a fact that I can live cheaper here than in any of those cities. Half-gallon of milk - $2.30, but everybody buys a whole gallon for $3.49 - Monthly rent $400-$600, depending which neighborhood Home price - You can buy a BRAND NEW home here for $120,000, and there are hundreds of other houses that cost less than $200,000, and nobody wants to pay more than $200,000 for a house. - Gallon of gas - $3.579 Haircut - $5-$10, depending who cuts it Movie ticket - $5. Go to the next city over and it's $8.50 - Bottle of wine - $4.50 and up So, CBS, before you do your little "study", look to everywhere in the U.S., not just Texas. It looks like someone favors Texas more than anywhere else. Hence why I watch ABC News instead.
________________________________________________________
See the related article 3 of 3 next below
__________________
Article 3 of 3 Articles 1 of 3 & 2 of 3 are next above
The 7 States With No Income Tax
April, 2013
There are seven U.S. states with no income tax, yet a life of paying less taxes isn't as simple as picking up and moving to one of them. You should take into consideration how each state makes money, and also local taxes.
The 7 States With No Income Tax
While these states have no income taxes, they fund themselves through other taxes including property taxes, corporate taxes, and sales taxes. If you are considering moving, you should consider all the taxes in a state and how those will affect your particular situation.
How states make money with no income tax
Let's go through the states with no income tax one by one using the Tax Foundation's most recent data, which is for 2010. The Tax Foundation has been collecting data on taxes since 1937 and its data takes into consideration an average of both state and local taxes.
1. Alaska
Alaska is known for its pristine wildlife as well as its oil and gas resources, most notably its North Slope with the famous Prudhoe Bay oil field. Alaska funds itself with royalties from oil and gas production as well as a 9.4% corporate income tax rate. In 2012 oil and gas royalties made up 83% of the state's revenue and oil and gas corporate income taxes made up just under 8% of revenue. The state has no sales tax but local municipalities have varying sales taxes and property taxes. In 2010, per capita property tax was $1,865, and combined with all other taxes, the per capita state and local tax paid was $3,214 according to the Tax Foundation.
Those 65 and over should note that Alaska exempts senior citizens from the first $150,000 of assessed value for property taxes.
2. Florida
Florida is known for its great weather (minus hurricanes), tourism, and snowbirds. Florida funds itself with a 6% sales tax as well as a 5.5% corporate income tax. The sales tax made up 73% of the state's revenue in fiscal year 2011-2012, with the corporate income tax making up 8.3%.
In 2010, per capita property tax was $1,507, and combined with all other taxes, the per capita state and local tax paid was $3,728 according to the Tax Foundation.
3. Nevada
Nevada is obviously best known for gambling and tourism. The state funds itself through a 6.85% sales tax. In the 2011-2012 fiscal year, sales and use taxes made up 71% of the state's revenue. The state has no corporate income tax, which has helped it attract tech companies and start-ups from high-tax California. Many companies take advantage of the lack of a corporate income tax, and Las Vegas in particular is attracting start-ups through the efforts of Zappos' CEO Tony Hsieh's DowntownProject. In 2010, per capita property tax was $1,297, and combined with all other taxes, the per capita state and local tax paid was $3,297according to the Tax Foundation.
4. South Dakota
South Dakota is known for Mt. Rushmore, Badlands National Park, and Wall Drug. (Have you dug Wall Drug?) The state funds itself through a 4% sales and use tax, a $0.22-per-gallon gas tax, and fees on vehicles, but has no corporate income tax. In fiscal year 2012 the sales and use tax made up 65% of the state's revenue, motor fuel tax made up 8%, and car titles and registration fees made up another 8%. In 2010, per capita property tax was $1,142, and combined with all other taxes, the per capita state and local tax paid was $3,035 according to the Tax Foundation.
5. Texas
Texas funds itself through a 6.25% sales tax, taxes on motor vehicle sales and fuel, a 0.5%-1% franchise tax, and taxes on oil and natural gas production. In fiscal 2012 the sales tax made up 39% of the state's revenue, motor vehicle sales and fuel taxes made up 10.8%, franchise taxes made up 7.3%, and taxes on oil and natural gas made up 5.8%. In 2010, per capita property tax was $1,292, and combined with all other taxes, the per capita state and local tax paid was $3,104 according to the Tax Foundation.
6. Washington
Washington funds itself through a 6.5% sales tax and a gross receipts tax on businesses. Washington benefits from being surrounded by Idaho and Oregon, both of which have corporate income tax rates above 7% and individual income tax rates above 7%. In fiscal 2012 the sales tax made up 64.7% of revenue while the gross receipts tax contributed 17.6%. In 2010, per capita property tax was $1,257, and combined with all other taxes, the per capita state and local tax paid was $4,261 according to the Tax Foundation.
7. Wyoming
Wyoming funds itself through a 4% sales tax, taxes on natural resources production, as well as property taxes, which for residential property is 9.5%. Most of the state's revenue comes from its natural resource production and property taxes on resource owners. In 2010, per capita property tax was $2,663, and combined with all other taxes, the per capita state and local tax paid was $3,721 according to the Tax Foundation.
More than just states with no income tax
There's more to consider before moving than just tax rates, but it doesn't hurt to start there, especially if you are living off interest and dividends.
______________________________________
The 7 States With No Income Tax
April, 2013
There are seven U.S. states with no income tax, yet a life of paying less taxes isn't as simple as picking up and moving to one of them. You should take into consideration how each state makes money, and also local taxes.
The 7 States With No Income Tax
- Alaska
- Florida
- Nevada
- South Dakota
- Texas
- Washington
- Wyoming
While these states have no income taxes, they fund themselves through other taxes including property taxes, corporate taxes, and sales taxes. If you are considering moving, you should consider all the taxes in a state and how those will affect your particular situation.
How states make money with no income tax
Let's go through the states with no income tax one by one using the Tax Foundation's most recent data, which is for 2010. The Tax Foundation has been collecting data on taxes since 1937 and its data takes into consideration an average of both state and local taxes.
1. Alaska
Alaska is known for its pristine wildlife as well as its oil and gas resources, most notably its North Slope with the famous Prudhoe Bay oil field. Alaska funds itself with royalties from oil and gas production as well as a 9.4% corporate income tax rate. In 2012 oil and gas royalties made up 83% of the state's revenue and oil and gas corporate income taxes made up just under 8% of revenue. The state has no sales tax but local municipalities have varying sales taxes and property taxes. In 2010, per capita property tax was $1,865, and combined with all other taxes, the per capita state and local tax paid was $3,214 according to the Tax Foundation.
Those 65 and over should note that Alaska exempts senior citizens from the first $150,000 of assessed value for property taxes.
2. Florida
Florida is known for its great weather (minus hurricanes), tourism, and snowbirds. Florida funds itself with a 6% sales tax as well as a 5.5% corporate income tax. The sales tax made up 73% of the state's revenue in fiscal year 2011-2012, with the corporate income tax making up 8.3%.
In 2010, per capita property tax was $1,507, and combined with all other taxes, the per capita state and local tax paid was $3,728 according to the Tax Foundation.
3. Nevada
Nevada is obviously best known for gambling and tourism. The state funds itself through a 6.85% sales tax. In the 2011-2012 fiscal year, sales and use taxes made up 71% of the state's revenue. The state has no corporate income tax, which has helped it attract tech companies and start-ups from high-tax California. Many companies take advantage of the lack of a corporate income tax, and Las Vegas in particular is attracting start-ups through the efforts of Zappos' CEO Tony Hsieh's DowntownProject. In 2010, per capita property tax was $1,297, and combined with all other taxes, the per capita state and local tax paid was $3,297according to the Tax Foundation.
4. South Dakota
South Dakota is known for Mt. Rushmore, Badlands National Park, and Wall Drug. (Have you dug Wall Drug?) The state funds itself through a 4% sales and use tax, a $0.22-per-gallon gas tax, and fees on vehicles, but has no corporate income tax. In fiscal year 2012 the sales and use tax made up 65% of the state's revenue, motor fuel tax made up 8%, and car titles and registration fees made up another 8%. In 2010, per capita property tax was $1,142, and combined with all other taxes, the per capita state and local tax paid was $3,035 according to the Tax Foundation.
5. Texas
Texas funds itself through a 6.25% sales tax, taxes on motor vehicle sales and fuel, a 0.5%-1% franchise tax, and taxes on oil and natural gas production. In fiscal 2012 the sales tax made up 39% of the state's revenue, motor vehicle sales and fuel taxes made up 10.8%, franchise taxes made up 7.3%, and taxes on oil and natural gas made up 5.8%. In 2010, per capita property tax was $1,292, and combined with all other taxes, the per capita state and local tax paid was $3,104 according to the Tax Foundation.
6. Washington
Washington funds itself through a 6.5% sales tax and a gross receipts tax on businesses. Washington benefits from being surrounded by Idaho and Oregon, both of which have corporate income tax rates above 7% and individual income tax rates above 7%. In fiscal 2012 the sales tax made up 64.7% of revenue while the gross receipts tax contributed 17.6%. In 2010, per capita property tax was $1,257, and combined with all other taxes, the per capita state and local tax paid was $4,261 according to the Tax Foundation.
7. Wyoming
Wyoming funds itself through a 4% sales tax, taxes on natural resources production, as well as property taxes, which for residential property is 9.5%. Most of the state's revenue comes from its natural resource production and property taxes on resource owners. In 2010, per capita property tax was $2,663, and combined with all other taxes, the per capita state and local tax paid was $3,721 according to the Tax Foundation.
More than just states with no income tax
There's more to consider before moving than just tax rates, but it doesn't hurt to start there, especially if you are living off interest and dividends.
______________________________________
10 Most Expensive Places to Live in the U.S.
Which U.S. cities have the highest costs of living?
The Council for Community and Economic Research recently measured the prices of common purchases in 307 urban areas to find the cost of the professional standard of living in each location. The index, its fifth edition, crunched more than 50,000 prices -- everything from grocery items to transportation to housing.
The national average on the index is 100.
Following is a look at each of the 10 most expensive cities in the United States.
1. Manhattan, New York
Manhattan, New York, once again ranks as the most expensive place to live in the U.S. The city in 2012 had cost of living index of 225.4 -- more than double the national average.
New York has remained America's most expensive city since 2007, when the Cost of Living Index released the first edition of its annual report.
Market prices in Manhattan:
Half-gallon of milk - $2.34
Monthly rent - $3,902
Home price - $1,303,421
Gallon of gas - $3.967
Haircut - $22.21
Movie ticket - $13.33
Bottle of wine - $9.67
2. Brooklyn, New York
Though a half-gallon of milk would cost you less in Brooklyn than in Harlingen, Texas, which ranks as America's most affordable city, Brooklynites pay nearly three times more for haircuts.
With a cost of living index of 178.6, Brooklyn, New York, ranks as the second most expensive place to live in the U.S. The Council for Community and Economic Research has ranked the birthplace of Barbra Streisand as the second most expensive city in the U.S. every year since 2007.
Market prices in Brooklyn, New York:
Half-gallon of milk - $2.12
Monthly rent - $2,411
Home price - $959,907
Gallon of gas - $3.910
Haircut - $13.83
Movie ticket - $12.25
Bottle of wine - $10.02
3. Honolulu
Hawaii's state capital ranks as the third most expensive place to live the U.S. The unemployment rate there is 4.8 percent -- nearly 3 percent lower than the national rate -- according to the U.S. Bureau of Labor Statistics.
Honolulu's index of 167.7 in 2012 fell 0.8 from the previous year.
Market prices in Honolulu:
Half-gallon of milk - $3.28
Monthly rent - $2,646
Home price - $668,020
Gallon of gas - $4.244
Haircut - $15.10
Movie ticket - $10.35
Bottle of wine - $8.67
4. San Francisco
The City by the Bay in 2012 had a cost of living index of 163.4, the fourth highest score.
San Francisco is consistently ranked by Arizona State University's Carey School of Business in America's five best cities for job growth. The unemployment rate among San Franciscans, however, is 7.7 percent.
Market prices in San Francisco:
Half-gallon of milk - $2.28
Monthly rent - $2,630
Home price - $810,067
Gallon of gas - $3.838
Movie ticket - $16.79
Bottle of wine - $11.17
Bottle of wine - $6.31
5. San Jose
The cost of living index of 153.4 in San Jose last year makes the city in Santa Clara County, Calif., the fourth most expensive in the U.S. The county in January retook first in the top 10 best-performing metro economies in the nation for the first time since 2001, according to the San Jose Mercury News.
Market prices in San Jose:
Half-gallon of milk - $2.05
Monthly rent - $1,728
Home price - $764,283
Gallon of gas - $3.892
Haircut - $14.13
Movie ticket - $11.05
Bottle of wine - $5.84 6.
6. Queens, New York
Queens, the third borough in New York in America's 10 most expensive places to live, in 2012 had a cost of living index of 148.3. The indexes of all three sections of the Greater New York metropolitan area rose from the previous year. Staten Island and the Bronx make up the rest of New York City.
Market prices in Queens, New York:
Half-gallon of milk - $2.58
Monthly rent - $2,152
Home price - $630,189
Gallon of gas - $3.879
Haircut - $17.79
Movie ticket - $12.48
Bottle of wine - $8.96
7. Stamford, Conn.
With a cost of living index of 146.1 in 2012, Stamford, Conn. ranks as the seventh priciest place to live in America. The area is roughly 30 miles northeast of Manhattan, New York, which has the highest cost of living for a seventh straight year.
Market prices in Stamford, Conn.:
Half-gallon of milk - $2.51
Monthly rent - $2,011
Home price - $569,411
Gallon of gas - $3.904
Haircut - $20.03
Bottle of wine - $9.62
Bottle of wine - $8.59
8. Washington D.C.
Washington D.C. remains one of America's 10 least affordable cities. Its cost of living index was 144.7 in 2012.
Market prices in Washington:
Half-gallon of milk - $2.71
Monthly rent - $1,852
Home price - $746,549
Gallon of gas - $3.713
Haircut - $16.29
Movie ticket - $11.54
Bottle of wine - $7.95
9. Orange County, Calif.
Orange County, Calif. in 2012 had 3,090,132 residents, according to the U.S. Census Bureau, and a cost of living index of 140.6, according to the Council for Community and Economic Research. The state's second most populous county since 2009 has ranked in the top 10.
Market prices in Orange County, Calif.:
Half-gallon of milk - $2.24
Monthly rent - $1,716
Home price - $682,703
Gallon of gas - $3.949
Haircut - $15.57
Movie ticket - $11.92
Bottle of wine - $5.29
10. Boston
Boston last year ranks as America's 10th most expensive place to live with a cost of living index of 139.9. The metropolitan area replaces Truckee, Nevada County, Calif., which surprisingly ranked in the top 10 from 2009 to 2011.
Market prices in Boston:
Half-gallon of milk - $2.72
Monthly rent - $1,755
Home price - $459,744
Gallon of gas - $3.706
Haircut - $15.29
Movie ticket - $11.22
Bottle of wine - $9.15
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The article and the numbers are updated each ear
We have a winner -- and a new champion 2013 !
Top State for Business: And the Winner Is...
South Dakota
has climbed to the top of America's Top States for Business for 2013
It is the best finish yet for the Mount Rushmore State, which has always been a quiet contender in our annual study, rarely finishing outside the Top 10. But more impressive, South Dakota's point total this year-1,639 out of a possible 2,500-is the highest logged by any state since we began keeping score in 2007.
Each year, CNBC rates all 50 states on more than 50 metrics in 10 categories of competitiveness. We weight the categories based on how frequently they appear as selling points in state economic development marketing materials. That way, we hold the states to their own standards. You can read more about our methodology here .
This year's categories and point values are:
- Cost of Doing Business (450 points)
- Economy (375 points)
- Infrastructure (350 points)
- Workforce (300 points)
- Quality of Life (300 points)
- Technology & Innovation (300 points)
- Business Friendliness (200 points)
- Education (150 points)
- Cost of Living (50 points)
- Access to Capital (25 points)
As a result, Cost of Doing Business carries more weight than ever in our study.
(Read More: States Battle for Business With Fatter War Chests )
And no state delivers the goods on low business costs the way South Dakota does.
South Dakota not only offers one of the lowest tax burdens in the country-no individual or corporate income taxes and low sales and property taxes-but it also has among the nation's lowest utility rates, wages and commercial rent costs.
The state is not a one-trick pony, however.
In Business Friendliness, which measures the state's legal and regulatory climate, South Dakota finishes No. 2 this year, to perennial favorite Delaware.
With a pristine environment, relatively low crime, and some of America's most stunning natural beauty, South Dakota finishes seventh in Quality of Life.
And South Dakota's economy, while often overshadowed by its oil-booming neighbor to the north, finishes a solid sixth. State finances are strong, the housing market is recovering, and theunemployment rate is among the nation's lowest.
(Read More: States for Creating Manufacturing Jobs )
That low unemployment hurts South Dakota in the Workforce category, where it finishes 11th-in part due to the short supply of available workers. It is a problem Gov. Dennis Daugaard is not taking lying down.
In May, Daugaard traveled to neighboring Minnesota to open a kiosk in the Mall of America to attract workers to his state.
"I like to think of South Dakota is not stealing employees, but providing refuge," Daugaard said.
But he has other issues to deal with beyond a worker shortage.
South Dakota finishes near the bottom, 48th, in the Technology & Innovation. It is among the least Internet-connected states, and research dollars largely bypass the state. Venture capital funding also steers clear, with a 39th-place finish in Access to Capital. And the state lags in Education, where it finishes 30th.
Still, South Dakota overcomes all of that to come out on top overall.
(Read more: Beyond Mount Rushmore - from SD Gov. Daugaard )
New Order
Rounding out this year's Top Five are some old favorites and a new entry.
Texas, which has never finished below second place in our study , keeps the streak alive in 2013. America's Top State for Business last year (and in 2008 and 2010) slips to runner-up this year, but still logs a solid 1,593 points, with first-place rankings in our Economy and Infrastructurecategories. Texas' point total slips a bit from last year, though, and it has an economic upstart nipping closely at its heels.
North Dakota , a historic economic success story, improves on last year's fifth place finish to come in t hird this year with 1,592 points . The Peace Garden State ranks second-just behind Texas-in Economy and in Infrastructure. But North Dakota is, in some ways, held back by its own prosperity. With the nation's lowest unemployment rate, workers are in short supply. That raises wage costs. And North Dakota's growing pains leave the state with some of the most expensive rental costs in the country for industrial space. North Dakota finishes 12th in Cost of Doing Business, and near the bottom-46th-for Technology & Innovation.
(Read more: Will Everyone Move to North Dakota )
Nebraska cracks our Top Five for the first time, after just missing last year. The Cornhusker State finishes fourth with 1,575 points , up from sixth place last year. Nebraska shines in Business Friendliness, where it finishes third, as well as Economy and Quality of Life, where it comes in fourth. Tax reform has been a major priority in the state, which comes in 10th for Cost of Doing Business.
We have never had a tie in our Top Five , until now. Utah and Virginia , last year's Nos. 2 and 3 states respectively, tie for fifth place this year. While they come in dead even at 1,542 points, each takes a different route to the Top Five.
Utah's strongest category is Business Friendliness, where it finishes fourth. The Beehive State is attracting lots of investment, finishing seventh for Access to Capital.
Virginia brings the sixth-best Workforce to the table, and finishes eighth in Education.
The two states tie for 10th place in the Economy category.
(Read more: Where the Jobs Are )
Broken Pattern
Our 2013 study marks the first year in which neither Texas nor Virginia comes out on top. A major reason is the increasing focus on costs.
Texas in particular makes a big deal about low costs, and with no individual or corporate income tax, the Lone Star State does offer one of the most favorable tax burdens in the country, despite higher-than-average sales and property taxes. But Cost of Doing Business measures more than just taxes. For example, Texas has some of the highest electricity costs in the country, and office and retail rent is on the high side as well.
Texas also suffers in our Quality of Life category, falling to 41st (tied with South Carolina ) from 35th in the category last year. The state's air and water quality rank poorly, and Texas leads the nation in residents without health insurance. However, Gov. Rick Perry has defended that statistic as emblematic of the state's freedom of choice.
"Texas decided a long time ago that we weren't going to burden people and force them to buy insurance," Perry told CNBC in 2012.
(Read more: States Control Your Health Care Fate, Not Obama )
That may be, but for a business considering locating or expanding in Texas, the large number of uninsured-and the impact on overall health care costs-becomes a factor.
For Virginia, which took the Top State title in 2007, 2009 and 2011 , cost has never been its biggest selling point. But with Cost of Doing Business playing such an important role in our rankings, the fact that the commonwealth drops to 38th place in the category-down six spots from last year-definitely hurts.
What had been Virginia's greatest built-in advantage-proximity to the nation's capital-has come back to haunt the state in recent years. Virginia's fortunes are so tied to those of the federal government that Moody's slapped a negative outlook on the state's otherwise sterling bond rating in 2011. That hurts the state in our Economy category, but Virginia still finishes a respectable 10th.
Virginia has also been tackling troubles with its infrastructure. In fact, Gov. Bob McDonnell used the state's precipitous drop in our Infrastructure category last year-which he called "unacceptable"-to push through a landmark $6 billion transportation bill in February. While the bill probably came too late to affect our rankings, Virginia does improve to 21st in the category (tied with Utah), up from 33rd last year.
Biggest Pop and Biggest Drop
This year's most improved states each move up 12 spots from 2012. Massachusetts climbs to 16th place from 28th a year ago, and Delaware moves up to 31st from 43rd.
Massachusetts has had a rocky road in recent years. The Bay State made it into our elite Top Five in 2010, finishing fifth. Then it slipped to sixth in 2011, before plummeting to 28th last year because of drops in Economy, Infrastructure, and in Massachusetts' usual strong suit, Technology & Innovation.
Massachusetts improves in most categories this year, most notably Economy, where the state jumps to third place from 21st. The state is experiencing solid economic growth, state finances are improving, and so is the housing market. Massachusetts does drop to seventh for Education, however, a category where it is typically at or near the top.
Delaware had fallen to 43rd in 2012 because of a rare stumble in our Business Friendlinesscategory. Yes, Delaware is the corporate address for more than half the nation's publicly traded companies, and accommodative business regulations are the key reason. But the First State has been embroiled in controversy over its unclaimed property laws, which some have called a "stealth tax" on business. The state has raked in millions year after year by assessing businesses penalties and fees for property they hold but no longer own.
Last year, the state introduced some business-friendly reforms to the program, including allowing some businesses to self-report their holdings. While critics say the changes do not go far enough, Delaware is back on top for Business Friendliness this year, and up overall-though still in the bottom tier of states.
Illinois posts the biggest decline in our rankings this year, falling 11 spots to 37th, from 26th in 2012. With a heavy tax burden including among the highest gasoline taxes in the country, as well as high utility costs and relatively high wages, Illinois ties for 44th place (with Pennsylvania andWashington ) for Cost of Doing Business. With the worst bond rating in the country, high unemployment and a lackluster housing market, Illinois finishes 45th in the crucial Economycategory. But the Land of Lincoln does manage top five finishes in Infrastructure and Technology & Innovation.
(Read more: Land of Lincoln Grows - from Illinois Gov. Quinn )
Bringing up the Rear
We score all 50 states, so if there are Top States, there must be Bottom States as well. And just like at the top, we have a shakeup at the bottom this year as well.
No longer in the Bottom Five is perennial loser Alaska , which climbs to 44th place from 47th thanks to big improvements in Cost of Doing Business and Business Friendliness.
Mississippi also moves out of the lower echelon solidly improving to 41st from 46th on its rock-bottom costs. The Magnolia State pays the nation's lowest wages, and commercial space-particularly retail-is dirt cheap.
Joining the Bottom Five this year is Nevada , which finishes 46th, falling from 45th last year. TheSilver State is still mired in the housing crisis, with the highest foreclosure rate in the nation. With the highest unemployment as well, it is no wonder Nevada finishes at the bottom of our Economy category. It also finishes at the bottom for Education, and near the bottom for Quality of Life andAccess to Capital.
(Read more: Nevada Is the Place To Do Business - Nevada Gov. Sandoval)
California , barrels into the Bottom Five this year, moving to 47th place from 40th last year. The Golden State has an apt nickname when it comes to Cost of Doing Business-California's business costs are the most expensive in the country. In fact, the state finishes near the bottom in every metric of business costs that we track. But California is a land of extremes. No state comes close for Access to Capital, where California finishes first. And it finishes second, behind New York , forTechnology & Innovation.
State 48 is West Virginia , unchanged from 2012. The Mountain State notches its worst numbers in the Workforce category, where it finishes last. Workers there are the nation's least educated, population growth is stagnant, and the state's heavy union presence-West Virginia is a non-right-to-work state-hurts it in the category. West Virginia also comes in last for Business Friendliness. Even in its strongest category, Cost of Doing Business, West Virginia can manage no better than 19th.
Rhode Island , the Ocean State, climbs ever so slightly out of the depths this year to 49th place. The state came in 50th last year. A perennial loser in our study, Rhode Island finishes near the bottom this year for Economy, Infrastructure and Business Friendliness. In fact, the state is in the bottom 10 in every category except for Cost of Doing Business where it comes in 32nd, Quality of Life at 20th and Access to Capital at 23rd.
America's Bottom State for Business turns in a dismal performance across the board-almost.
(Read more: Hawaii Hits Bottom as Worst State for Business )
It has the worst Infrastructure, the highest Cost of Living, minimal Access to Capital and among the highest Cost of Doing Business.
After we ranked the state near the bottom in 2012, an economic development official was quoted as saying, "We always rank at the bottom. It's not something new."
But the Bottom State does have one thing going for it: the nation's Top Quality of Life. And with that, America's Bottom State for Business 2013- Hawaii -gets the last laugh.
We want to know what you think. Check out our complete rankings to see how your state stacks up. Give us your comments here, or on Twitter or Facebook using the tag #TopStates.
More From CNBC
- Hawaii: The Worst State for Business in America
- This State Is a Powerhouse of Innovation and Growth
- A Happy State Can Be a Healthy State for Business
Source: CNBC - Each year, CNBC rates all 50 states on more than 50 metrics in 10 categories of competitiveness.
We weight the categories based on how frequently they appear as selling points in state economic development marketing materials. That way, we hold the states to their own standards. You can read more about our methodology - click: here
CNBC (officially the Consumer News and Business Channel until 1991)
is a satellite and cable television business news channel in the United States owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers around the world. In 2007, the network was ranked as the 19th most valuable cable channel in the United States, worth roughly $4 billion.[4] It is headquartered in Englewood Cliffs, New Jersey.[5]
NBCUniversal, Inc. (formerly known as NBCUniversal Media, LLC in 2011,[2] and NBC Universal, Inc.
previously)[3][4] (and also known as NBCU or NBCUni) is an American CLICK: media and entertainment company engaged in the production and marketing of entertainment, news, and information products and services to a global customer base. The company owns and operates American television networks, numerous cable channels, and a group of local stations in the United States, as well as motion picture companies, several television production companies, and branded theme parks.
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QUOTE
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Starting December 2012, These following articles have been placed in the tab: Investments & Finances
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A Switch at Midlife, to Make a Difference,
(2) 12/12/12 Suffer. Spend. Repeat. Important information This info is valid year round - specifically for X-mas and for other holiday season shopping,
(3) Domestic workers take care of our families - yet 23 % of domestic workers are paid below the minimum wage
(4) Domestic Work Must Become an Academic Profession - Domestic Work Must Be Based on College / University Training - New Laws Being Created- By Dr. Christian von Christophers, Ph.D., N.D., D.D., STAF, Inc.'s founding President(5) A must-to-study article - Dated: November 2012 - California Horror Stories and the 3-Strikes Law
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All material in this website is being used in College & University education for every degree level. Despite the "jumping lines & other technical difficulties", you will and every web visitor still will get the high level science information.
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LEGAL WARNING: In this website Save The American Family – STAF, Inc -not-for-profit- publishes the opinions of leading authorities in many fields. But the use of these opinions is no substitute for legal, accounting, investment, medical and other professional services to suit your specific personal needs. Always consult a competent professional for answers to your specific questions.
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