News Stories
Money resolutions to make in 2010
Hoping to clean up your finances this year? Set some reasonable goals.
Kathy M. Kristof suggest 10 simple ones that can make a big difference.
With the economy still in the dumper and many of us feeling poorer,
it's no surprise that many Americans have resolved to clean up their
finances in this new year. The trick is to set reasonable goals. Make
those resolutions too difficult and you're sure to break them. Like
dieters who vow to eat nothing but carrot sticks, spendthrifts who swear
to pinch every penny are doomed to failure. A better approach is to
start with a few things that are so easy to fix that you'll stick with
the program. You may be surprised how quickly these small changes can
add up to real money in your pocket. Kathy M. Kristof suggests 10 simple
resolutions that can improve your financial position in the months and
years to come.
Click here for the complete story.
7 tax moves to make by year-end
The holidays are bearing down, but to make sure you don't overpay the
IRS when you file your 2009 return next year, you need to make time
for some year-end tax tasks. Some of the tax breaks will expire Dec.
31, so this could be your last chance to use them. Others will be around
awhile longer, but it might make sense to claim this year. And some
have been helping folks cut their IRS bills for ages and likely will
be around for many tax years to come.
Click here for the complete story.
6 ways to boost your income in a big way
Budgets and penny-pinching are all well and good, but if you're looking
to give your income a serious lift, there is no substitute for entrepreneurial
grit. Many turn talent and expertise into a second source of income,
providing consulting services on the side, for example, while maintaining
their full-time jobs. Others put more skin in the game, making major
investments to start local franchise operations or purchase rental property
in pursuit of passive income. But all who call themselves successful
share similar character traits: a rock-solid work ethic and a willingness
to roll up their sleeves. If you count yourself among them, the following
money-making opportunities might help give you the raise you deserve.
Click here for the complete story.
IRS Issues Guidance on 2009 Required
Minimum Distribution Waiver
The Internal Revenue Service today provided guidance for retirement
plan administrators, plan participants and retirees regarding recent
legislation affecting required minimum distributions. The Worker, Retiree,
and Employer Recovery Act of 2008 waives required minimum distributions
for 2009 from certain retirement plans.
Generally, a required minimum distribution is the smallest annual amount
that must be withdrawn from an IRA or an employer's plan beginning with
the year the account owner reaches age 70 1/2. The 2008 law waives required
minimum distributions for 2009 for IRAs and defined contribution plans
(such as 401(k)s) and allows certain amounts distributed as 2009 required
minimum distributions to be rolled over into an IRA or another retirement
plan.
Notice 2009-82 (http://www.irs.gov/pub/irs-drop/n-09-82.pdf) provides
relief for people who have already received a 2009 required minimum
distribution this year. Individuals generally have until the later of
Nov. 30, 2009, or 60 days after the date the distribution was received,
to roll over the distribution.
The notice also provides guidance for retirement plan sponsors. It contains
two sample plan amendments that plan sponsors may adopt or use to amend
their plans to either stop or continue 2009 required minimum distributions.
Both sample amendments provide that participants and beneficiaries can
choose to receive or not to receive 2009 required minimum distributions.
Also, both sample amendments allow the employer to offer direct rollover
options of certain 2009 required minimum distributions.
Plan sponsors may need to tailor the sample amendment to their plan's
particular terms and administration procedures and must adopt the amendment
no later than the last day of the first plan year beginning on or after
Jan. 1, 2011 (Jan. 1, 2012 for governmental plans).
IRS 2009-085
Changes to IRA conversion rules
create new complexities
Tax Talk Question: For some time, I have wanted to convert my regular
IRAs to Roth IRAs, however, my income is too high. Is there any relief
in sight on this issue?
Answer: Next year will be a pivotal one for retirement planning, as it will be the first year in which taxpayers will be able to convert funds in regular IRAs (as well as qualified plan funds) to Roth IRAs regardless of their income level. This new conversion option poses significant tax planning challenges and opportunities for 2009, 2010 and 2011.
For the complete article, please click here.
7 retirement investing mistakes
Everyone knows the secret to investment success is to buy low and sell
high. The problem is most of us lack clairvoyance. We weigh in on some
of the most common mistakes investors make, and while it's easy to see
that chasing hot stocks -- the most frequently cited mistake -- would
be an exercise in futility, there are other pitfalls to watch out for
on the road to retirement. There are never any guarantees when investing,
but avoiding these seven missteps will better your chances of success.
For the complete article, please click here.
You can also see the current US Treasury Monthly Economic Data report
U.S. economy grows at fastest rate in 6 years -
1/30/10 Washington Post
The U.S. economy grew at a breakneck rate of 5.7 percent at the end
of 2009, the government said Friday, providing the strongest evidence
yet that the nation will avoid a dip back into recession. The growth
spurt in gross domestic product, the broadest measure of economic activity,
was the largest in six years. But economists cautioned that such a pace
will probably not persist and that the economy will grow at a more measured
rate in the coming months. The 5.7% increase was in line with the 5.4%
gain expected by economists surveyed by MarketWatch.
Consumer sentiment hits 2-year high, UMich says
- 1/29/10 MarketWatch
U.S. consumer sentiment improved in January, as a closely followed survey
rose to its highest level in two years. The Reuters/University of Michigan
consumer sentiment index rose to 74.4 in January from 72.5 in December,
according to media reports. It's the highest since January 2008. The
preliminary mid-month reading was 72.8. Economists were expecting an
increase to 73.0 in the final numbers. The index has been little changed
in the past five months after falling to 55.3 in November 2008.
U.S. jobless claims remain elevated in latest week
- 1/28/10 MarketWatch
First-time claims for state unemployment benefits remained elevated
in the latest week, the Labor Department reported Thursday. The number
of initial claims in the week ending Jan. 23 fell 8,000 to 470,000.
The consensus forecast of Wall Street economists was for claims to drop
below 450,000. Claims in the previous week were revised to an increase
of 34,000 to 478,000 compared with the initial estimate of a increase
of 36,000 to 482,000. the highest level since November. The four-week
average of initial claims rose 9,500 to 456,250. A Labor Department
official said there were no reports of backlogs at state offices. Meanwhile,
the number of Americans receiving state jobless benefits held steady
fell 57,000 to 4.60 million in the week ending Jan 16. The four-week
moving average of continuing claims fell 94,250 to 4.7 million. Overall,
11.5 million Americans received federal and state unemployment benefits
on an unadjusted basis in the week ended Jan. 9, the latest period for
which the data is available. This is down from 12.0 million in the prior
week.
Fed holds steady on policy but is not unanimous -
1/27/10 MarketWatch
The Federal Reserve on Wednesday held steady on monetary policy but
was not unanimous. The Fed held interest rate policy steady and repeated
it expects to hold interest rates low for extended period. The Fed said
that it would end its program to by mortgage backed securities at the
end of March. Kansas City Fed president Thomas Hoenig dissented. He
wanted the Fed to get rid of its pledge to keep rates low for an extended
period. In its statement, the Fed was slightly more upbeat about the
economic outlook.
Existing-home sales take a big fall in December
- 1/26/10 Washington Post
Sales of previously owned homes took their biggest tumble in at least
40 years last month as the impact of a buying spree spurred by a tax
credit for first-time buyers waned, according to industry data released
Monday. After three months of increases, sales of existing homes, including
condos and single-family residences, fell 16.7 percent to a seasonally
adjusted annual rate of 5.45 million in December compared with the previous
month, according to National Association of Realtors data. That was
a bigger drop than analysts had expected and the lowest sales rate since
August. The decline was larger than the 11% drop to 5.80 million that
was expected by economists surveyed by MarketWatch. It was also the
biggest monthly decrease on records that date to 1968, according to
the industry group.
Jobless claims surge in the latest week - 1/22/10
MarketWatch
First-time claims for state unemployment benefits jumped unexpectedly
by the largest amount in eight months, the Labor Department reported
Thursday. The number of initial claims in the week ending Jan. 16 rose
36,000 to 482,000. The consensus forecast of Wall Street economists
was for claims to inch lower to 438,000. This is the highest level of
claims since November. Overall, a record 12 million Americans received
federal and state unemployment benefits on an unadjusted basis in the
week ended Jan. 2, the latest period for which the data is available.
This is up from 10.9 million in the prior week.
Housing starts slip 4% in December; building permits
rise - 1/20/10 MarketWatch
Capping the worst year for housing since the end of World War II, U.S.
housing starts fell 4% to a seasonally adjusted annual rate of 557,000
in December from 580,000 in November, the Commerce Department estimated
Wednesday. For all of 2009, an estimated 554,000 homes were started,
down 39% from 2008's total of 906,000 and the lowest since 1945. Starts
of single-family homes dropped 29% to 444,000 in 2009, the lowest on
record, dating to 1959. Painted in the starkest terms, starts are down
about 75% from the peak in 2006.
Home Prices Up Slightly in November - 1/16/10
NY Times
The recovery in the housing market is still alive, barely, according
to data released Tuesday. Home prices eked out a 0.2 percent gain in
November on a seasonally adjusted basis, according to the Standard &
Poor's Case-Shiller Home Price Index. The pricing data lags the sales
data by one month. November home sales were unusually strong because
of the rush to take advantage of the government's tax credit. But December
sales, released Monday, fell sharply.
Industrial output rises for 6th month in a row
- 1/15/10 MarketWatch
The output of the nation's factories, mines and utilities rose a seasonally
adjusted 0.6% in December, the sixth increase in a row following the
worst downturn since the end of World War II, the Federal Reserve reported
Friday. Colder-than-usual weather contributed to the gain in December,
with utility production rising a seasonally adjusted 5.9%. The output
of factories dropped 0.1% in December after a 0.9% gain in November,
repeating the see-saw pattern of the past four months. The 0.6% gain
in output in December was stronger than the 0.5% expected by economists
surveyed by MarketWatch.
December's inflation rate up 0.1%; core CPI up 0.1%
as well - 1/15/10 MarketWatch
Inflation at the consumer level remained tame in December, the Labor
Department reported. The consumer price index increased 0.1% in December,
down from a 0.4% advance in November. This is the lowest rate since
July and is slightly below expectations of a 0.2% rise. The core CPI
-- excluding food and energy costs - also rose 0.1%, a tick more than
the unchanged reading in November but in line with expectations of economists
surveyed by MarketWatch. The CPI rose 2.7% in 2009, after rising 0.1%
in 2008. The core CPI rose 1.8% in 2009, the same rate as the prior
year.
In a Surprise, Retail Sales Fell in December -
1/14/10 NY Times
Retail sales fell unexpectedly in December, the government said Thursday,
despite scattered signs that the 2009 holiday shopping season was stronger
than expected. From supermarkets to department stores, sales fell 0.3
percent from November, a decline that economists attributed to a bleak
jobs market and reluctance by consumers to spend freely. Analysts, encouraged
by signs that consumers were regaining confidence, had expected sales
to rise 0.5 percent.
U.S. jobless claims up in latest week -
1/14/09 MarketWatch
First-time claims for state unemployment benefits rose in the latest
week by the most in five weeks, the Labor Department reported Thursday.
The number of initial claims in the week ending Jan. 8 rose 11,000 to
444,000. The consensus forecast of Wall Street economists was for claims
to inch lower to 433,000. Claims in the previous week were revised to
433,000 down from 434,000. This is the highest level since the week
ended Dec. 19. The four-week average of initial claims fell 9,000 to
440,750. Meanwhile, the number of Americans receiving state jobless
benefits fell 211,000 to 4.60 million in the week ending Jan. 2. The
four-week moving average of continuing claims fell 151,500 to 4.86 million.
Imports Rose as Trade Deficit Widened in November
- 1/12/10 NY Times
The trade deficit in the United States widened more than expected in
November, offering signs that American businesses and consumers were
growing more confident about spending as the economy slowly improved.
The chief cause of the bigger trade gap - it totaled $36.4 billion in
November, up 9.7 percent from October - was rising prices on oil imports.
The trade deficit was above the consensus forecast of Wall Street economists
of a deficit of $34.8 billion according to MarketWatch.
Payrolls in U.S. Drop 85,000, with Jobless Rate at
10% - 1/8/10 Bloomberg in Business Week
The U.S. unexpectedly lost 85,000 jobs in December and revisions showed
payrolls increased the prior month for the first time in almost two
years, indicating improvement in the labor market will be halting. Payrolls
decreased last month after a November gain of 4,000, figures from the
Labor Department showed today in Washington. The median estimate of
economists surveyed by Bloomberg News projected no change in December
employment. The jobless rate held at 10 percent.
Jobless claims edge up 1,000 to 434,000 - 1/7/10
MarketWatch
The number of initial claims for state unemployment benefits was essentially
unchanged in the week of Jan. 2, rising 1,000 to a seasonally adjusted
434,000 after dramatic declines the previous two weeks, the Labor Department
reported Thursday. The total number of people collecting unemployment
benefits of any kind, including extended federal benefits, rose by 518,100
in the week of Dec. 19 to 10.6 million, not seasonally adjusted. The
number of people collecting regular state benefits fell by 179,000 in
the week ending Dec. 26 to a seasonally adjusted 4.8 million, the lowest
in nearly a year. Compared with a year ago, initial claims are down
15%, while state continuing claims are up 13%. U.S. Dec.
ISM services index rebounds to 50.1% - 1/6/10
MarketWatch
The service sectors of the U.S. economy rebounded in December, the Institute
for Supply Management reported Wednesday. The ISM non-manufacturing
index rose to 50.1% from 48.7% in November. Despite the improvement,
the increase was below expectations. Economists were looking the index
to rise to 51.0%. The index had been above 50 for three months in the
summer and fall but then slipped under the threshold in November. The
closely-watched employment index rose to 44.0% in December from 41.6
in November. The employment index has been below 50 since May 2008.
It hit a low of 31.1 in November 2008.
U.S. private sector sheds 84,000 jobs in Dec.: ADP
- 1/6/10 MarketWatch
Private-sector firms in the U.S. eliminated 84,000 jobs in December,
according to the ADP employment report released Wednesday. It was the
fewest jobs lost since March 2008. The private-sector has shed jobs
for 23 months in a row. In November, a revised 145,000 jobs were lost
compared with the 169,000 originally reported, ADP said. The ADP index
does not include government jobs. The ADP jobs data come two days before
the Bureau of Labor Statistics releases its estimate of December nonfarm
payrolls. Economists surveyed by MarketWatch are looking for payrolls
to rise 10,000 in the BLS survey, the first gain in two years.
U.S. Nov factory orders up 1.1% - 1/5/10
MarketWatch
U.S. and foreign businesses stepped up their demand in November for
capital equipment to expand production, the Commerce Department reported
Tuesday. Factory orders increased 1.1% in November, faster than the
0.8% rise expected by economists surveyed by MarketWatch. Orders for
durable goods increased 0.2% in November, unrevised down from the estimate
late last month. Orders for nondurable goods rose 1.8%. Core capital
equipment orders rose 3.6% in November, revised up from 2.9% estimated
a week ago.
Pending home sales index plunges 16% - 1/5/10
MarketWatch
Pending home sales plunged a seasonally adjusted 16% from October to
November as a highly popular tax credit for first-time buyers was set
to expire on Nov. 30 according to the National Association of Realtors.
The report suggests that sales of existing homes will drop off in the
next few months. The pending sales index, which had risen nine months
in a row before falling in November, was 15.5% higher than in November
2008. October's increase was revised higher to 3.9% from 3.7% previously
reported.
Manufacturing growth jumps - 1/4/10
CNN Money
Manufacturing activity jumped in December, signaling growth in the sector
for a fifth consecutive month, a purchasing managers' group said Monday.
The Tempe, Ariz.-based Institute for Supply Management's index of U.S.
manufacturing rose to 55.9 from 53.6 in November. This is the highest
level since April 2006 when the index climbed to 56. The reading beat
estimates from economists, who expected the index to jump to 54.3, according
to a consensus compiled by Briefing.com.
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