Federal workers get first raise in 3 years

Federal workers will get their first cost-of-living pay hike in three years this month.

WASHINGTON (CNNMoney)

The raise came about because the budget deal Congress passed in October to end the government shutdown allowed the modest federal pay raise after Jan. 1.

On Dec. 23, President Obama officially issued the order raising pay for the 2.1 million civilian federal work force and active military. While civilians have missed out on cost-of-living increases in the past few years, pay hikes tied to promotions and bonuses have been allowed.

The raise won't show up for many employees until around Jan. 17, the pay day for the first two weeks of 2014, according to the General Services Administration.

The hike is a bright spot for federal workers who weathered 16 days of furlough during the October shutdown, though they got paid back, as well as several unpaid furlough days through out the summer due to forced federal spending cuts.

Related: Minimum wages to rise in 13 states on Jan. 1

Also, as colleagues retire, some workers who remain on the job face larger work loads, because dozens of federal agencies have stopped hiring due to budget cuts.

The hits are taking a toll. This month, a survey of federal employees reported the lowest level of job satisfaction in 10 years, according to the Partnership for Public Service and Deloitte Consulting.

"Psychologically, it's very valuable for the federal work force to see that there's some recognition for the work that they do," said John Palguta, vice president for policy at the Partnership for Public Service, a nonprofit that advocates for efficient government.

House Republicans have argued over the years that federal workers contribute to large deficits. Republicans suggest that federal worker pay and benefits are more generous than the private sector.

A 2012 report from the nonpartisan Congressional Budget Office found that federal employees get 46% better benefits on average compared to the private sector.

Related: My jobless benefits are ending

But when it comes to pay, it isn't that simple.

Federal employees, on average, make $77,414 a year in wages, about 44% more than private-sector employees' $53,463, according to the Bureau of Economic Analysis. The difference in pay is often due to higher education levels in the federal workforce, more white-collar jobs and the concentration of jobs located in Washington, a more expensive place to live than other parts of the nation.

First Published: December 30, 2013: 1:21 PM ET

12.08 | 0 komentar | Read More

Insanely pricey New Year's Eve parties

About 1 million people are expected to ring in 2014 in Times Square. For a premium, you can avoid the crowds.

NEW YORK (CNNMoney)

Bars, restaurants, clubs and even Madame Tussauds wax museum are pulling out the stops to throw extravagant parties ringing in 2014.

Of course, you don't have to spend a dime to watch the ball drop in New York City's Times Square - a frigid, standing-room-only affair with 1 million of your closest friends. Arrive early, organizers say, and don't expect bathrooms.

But to avoid the crowds, you'll have to pay a premium.

For about $8,500, for instance, you can celebrate at the R Lounge in Times Square, which claims to have the "most coveted view of the ball drop." That price includes "full premium open bar," hor d'oeuvres, a gift bag and a "butler passed breakfast" after the ball drops. But it doesn't include a room to stagger home to in the attached hotel, which will set you back another $1,500.

Related: Boost your career in 2014

Even the Applebees in Times Square is advertising New Years Eve tickets for $375 -- many times its usual $20 dinner for two people -- but there's a pretty big catch. The offer's fine print notes that "seating is on a first come first served basis," and that guests will have to step outside to watch the ball drop, "subject to NYPD approval."

Tickets to the festivities at the nearby TGI Friday's range from $225 to $1,095. While there is a three-hour TGIF open bar, the venue won't offer any views of the ball drop, since it's seven blocks away from the main event.

For a more offbeat evening, tickets to the party at Madame Tussauds wax museum starts at $165, and even includes a with a view of Times Square. Celebrating with the two-headed calf at Ripley's Believe it or Not could cost you as much as $995.

But the most expensive New Year's celebration may be in Miami. Cameo Nightclub is offering a $100,000 package that includes a private meet and greet with performer Lil Wayne, plus 75 bottles of champagne and liquor. (Price includes tax, but not the $6,000 service fee.)

Related: 5 reasons stocks will go up in 2014

If that's not your scene, The Palm in Dubai is promising champagne and a "luxury buffet" -- plus an attempt to host "the world's biggest ever fireworks display." Those tickets sell for about $870.

There is another option: just stay home.

"In New York City, it's such a miserable night," said Anderson Cooper, who watches over the Times Square celebrations from a CNN platform studio. "There are no cabs. You can't get anywhere. ... There's no reason to go out. It's miserable."

"It's so much more fun," he added, "to just stay at home and watch us."

First Published: December 30, 2013: 5:11 PM ET

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Silicon Valley investor: Split California into 6 states

Is California too big to govern? Big-name Silicon Valley investor Tim Draper is pushing a voter initiative to split the state up.

HONG KONG (CNNMoney)

Tim Draper, a third-generation venture capitalist with a penchant for big ideas, is promoting a plan that would split California into six separate states.

The proposal calls for the creation of new states called Silicon Valley and West California that would be anchored by the cities of San Francisco and Los Angeles. Orange County and San Diego would be part of the new state of South California. To the north, remaining counties would be divided into regions called Central California, North California and Jefferson.

Why now? According to the proposed ballot initiative Draper filed earlier this month, the Golden State has been rendered "nearly ungovernable" by social and economic changes.

California has 58 counties, nearly 40 million people and an economy so large that it would rank among the top 10 countries in the world.

But given the state's diverse geography and industries, Draper's ballot initiative argues that the "citizens of the whole state would be better served by six smaller state governments."

"I am endorsing this initiative because it is a way to localize governance and bring more representation to the local level," Draper said in document distributed to reporters. "I am planning to work to get it on the ballot."

The plan would also create a "marketplace" for governments, and voters in each county could pick and choose which state they wanted to be part of.

Related story: 9 tech startup CEOs on the best and worst of 2013

Draper will need to collect thousands of signatures for the measure to be brought before voters in November. With seemingly little current popular demand for partition, gathering enough support to make the ballot could prove difficult.

The initiative would raise raise some thorny issues, including the division of water rights -- a life and death economic matter in the deserts of Southern California. There would also be significant Constitutional questions to resolve.

The third-largest state in terms of area behind Alaska and Texas, California has long managed to resist division.

Like Draper, advocates for partition in counties near the Oregon border have in the past evoked the "Jefferson" name while pursuing statehood -- a reference to the president who dispatched Lewis & Clark to the Northwest.

Draper founded the Silicon Valley venture capital firm Draper Fisher Jurvetson in 1985, and is now running Draper University, an entrepreneurship program. The California native is well known in Silicon Valley for his investments and appearances on a Nickelodeon TV show called "The Naked Brothers Band."

First Published: December 30, 2013: 8:53 PM ET

12.08 | 0 komentar | Read More

Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

12.08 | 0 komentar | Read More

Stocks: Break out the champagne!

2013 has been a very good year for stocks.

NEW YORK (CNNMoney)

The final two weeks of the year are typically good for stocks, a phenomena known on Wall Street as the Santa Claus rally. Over the past 100 years, the Dow has gained in the New Year week 69% of the time, according to Schaeffer's Investment Research.

Ryan Detrick, senior technical analyst Schaeffer's, expects the momentum to continue in the near term as investors who missed the rally look for opportunities to buy into the market. While it's impossible to predict what stocks will do, "we don't anticipate anything rocking the boat," he said.

The Dow is up more than 25% and S&P 500 has gained nearly 30% so far this year. The Nasdaq has surged 38%. The Dow is on track for its biggest annual gain since 1996 and the S&P 500 is on pace for its strongest year since 1997.

Related: Are you a markets wiz?

Markets closed Jan. 1: U.S. markets will be closed Wednesday for New Year's day.

Economic reports: The economy will be in focus next week. Reports on home prices and consumer confidence are due, along with data on manufacturing activity and auto sales.

Investors will be watching all economic data closely, especially after the Fed announced plans earlier this month to begin scaling back its monthly bond purchases by $10 billion beginning in January.

Investors took the news in stride and many see the move as a sign the economy is likely just about strong enough to stand on its own.

Related: Best year ever for stock funds

The Federal Reserve's stimulus policies have been a major driver of the bull market that started in 2009. But stocks have been supported in 2013 by an improving economy and continued growth in corporate profits.

Stocks rose last week, with the Dow Jones industrial average and the S&P 500 both touching record highs. The gains came on light trading volume with many professional money managers absent for the Christmas holiday.

First Published: December 29, 2013: 9:27 AM ET

12.08 | 0 komentar | Read More

Minimum wage to rise in 13 states on Jan. 1

NEW YORK (CNNMoney)

While most of the increases amount to less than 15 cents per hour, workers in places like New Jersey, Connecticut, New York and Rhode Island will see a bigger bump.

Earlier this year, New Jersey residents voted to raise the state's minimum wage by $1 to $8.25 per hour. And lawmakers voted to hike the wage by between 25 cents and 75 cents per hour, to $8.70 in Connecticut and $8 in Rhode Island and New York.

Residents in Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont and Washington will see a higher wage floor due to annual cost of living adjustments.

The Economic Policy Institute, a left-leaning think tank, used Census data to estimate that the increases will boost the incomes of 2.5 million low-wage American workers next year.

Related: 2013 minimum wage, state by state

Currently, 19 states have minimum wages set higher than the federal level of $7.25 per hour. Once the changes take effect on Jan. 1, the number rises to 21.

Wage increases are also set to take place at the local level. Voters recently approved a raise to $15 per hour for many workers in SeaTac, a tiny town centered around the Seattle-Tacoma airport in Washington. A judge ruled this past week that parts of the measure were not valid: The city could impose the minimum wage for some of the affected workers, the judge said, though not all. Supporters of the increase plan to appeal.

The push for $15 an hour could soon move beyond the one small town. Seattle's mayor-elect has said he plans to also raise the city's minimum wage to $15. Washington currently has the highest state minimum wage at $9.19 per hour.

Workers in San Francisco, San Jose and Albuquerque will also see wages go up.

Later in 2014, several other locales, including two counties in Maryland and Washington D.C., will raise their minimum wages. California is set to raise its minimum wage to $9 in July.

The piecemeal increases at the local level are occurring amidst a national debate over low wages and income inequality. Fast food and retail workers have been staging protests and walking off work for more than a year, calling for better pay and more hours.

Currently, fast food workers nationally earn an average of about $9 per hour. In September, Bill Simon, president and chief executive officer of Wal-Mart U.S., said that less than half of the company's U.S. employees make more than $25,000 per year.

Related: Half of fast food workers need public aid

Workers from McDonald's (MCD, Fortune 500), Wendy's (WEN), Burger King (BKW) and other fast food joints are calling for $15 per hour. Wal-Mart (WMT, Fortune 500) workers organizing as part of the union-backed OUR Walmart aren't asking for a specific dollar amount increase, but they say it's impossible to live on the wages they currently receive.

The workers have the backing of some lawmakers in Washington. Senate Democrats have proposed legislation to raise the minimum wage to $10.10 per hour and index it to inflation.

President Obama has been throwing his weight behind the issue. Earlier this month, the President said in a speech that it's "well past the time to raise the minimum wage that in real terms right now is below where it was when Harry Truman was in office."

But such legislation has a bleaker outlook if it reaches the Republican-led House of Representatives. House Speaker John Boehner has said that raising the minimum wage leads to a pullback in hiring.

Several recent polls, however, show that the vast majority of Americans are in favor of a federal minimum wage hike. A new ABC/Washington Post poll out last week shows that two-thirds of Americans support raising the minimum wage. More than one-third of respondents said they supported an increase to $9 per hour, while a quarter more were in favor of a boost to $10.

A CBS poll conducted last month found nearly identical results.

-- If you're seeing your wages increase on Jan. 1, or if we've missed naming your town among those raising minimum wages, we'd love to hear from you. Email us.

First Published: December 29, 2013: 9:49 AM ET

12.08 | 0 komentar | Read More

Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

12.08 | 0 komentar | Read More

Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

12.08 | 0 komentar | Read More

Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: 7 who are losing benefits

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

12.08 | 0 komentar | Read More

Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

12.08 | 0 komentar | Read More

Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

12.08 | 0 komentar | Read More

Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: My jobless benefits will end

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

12.08 | 0 komentar | Read More

Bling and baubles win out as holiday's hottest gifts

NEW YORK (CNNMoney)

Jewelry caught the eye of many gift givers this year and was one of the most popular gifts, according to MasterCard SpendingPulse, which draws from MasterCard's near-real-time purchase data.

The report showed that baubles and bling were by far the strongest growth category among shoppers who hit stores between Nov. 1 and Dec. 24. Shoppers spent more on jewelry this year than a year earlier.

A separate report by comScore, which measures online spending, also found that accessories were one of the top-gaining categories when compared with last year.

Related: Mobile shopping for bargains

What drove shoppers to jewelry this year was a stronger economy and more discretionary money in peoples' pockets, according to Sarah Quinlan, senior vice president of market insights for MasterCard Advisors.

"Jewelry is truly something that people spoil themselves with, and they also see it as an investment," Quinlan said. "This shows that people believe that we're in a grindingly slow but steady recovery.

Quinlan said the combination of lower gas prices, steady improvements to the job market and a sense of stability over the budget deal in Washington convinced shoppers to shell out an average of $500 to $1,200 on jewelry.

Overall, both SpendingPulse and comScore reported an uptick in holiday spending this year. But comScore noted that spending was held back by stores cutting prices dramatically in order to lure customers in.

First Published: December 26, 2013: 2:58 PM ET

12.08 | 0 komentar | Read More

Airline exec goes all in with racehorse company

"This is a big improvement over going to an office," says Steve Zerda, 55, of Seattle.

(Money Magazine)

The horse's owners were selling stakes to investors -- while keeping a majority interest -- and the avid racing fan decided to buy in.

"What I saw was a unique business model, where the owner could spread the risk," says Zerda. "And I could participate, without spending a fortune."

A director overseeing aircraft-component maintenance at Alaska Airlines, Zerda had already decided to take early retirement later that year.

His investment in Turbulent Descent gave him an idea for a new career: Buy yearlings, train them to run, then sell partnerships. After consulting trainers -- and confirming there were few syndicates for small-scale investors in Seattle -- he wrote a business plan.

His first acquisition as Z Thoroughbred Racing was a colt called Harbor Wind for $10,000. (With purses at the nearby track capped at $100,000, he didn't want to be saddled with costly horses.) He then set to work revving up interest via word-of-mouth and a website, soliciting investors to buy stakes of at least 5%. The money he raises helps fund grooming, training, and care, which runs more than $25,000 a year per animal.

Related: The write stuff: Two friends open a stationery store

With such high overhead, showing a profit requires winning races and, in the process, making horses appealing to breeders.

The risk is great, of course -- "you can buy any dumpy horse and lose your shirt fast," Zerda says -- but so is the potential reward. Harbor Wind raced 18 times in three years, earning over $50,000. Turbulent Descent won $900,000 before being sold for 12 times his original price.

Today, Zerda owns six horses and has a 10% stake in another. Thanks to winning purses plus proceeds from three sales, Z Thoroughbred made a $45,000 profit last year. "I seem to be able to locate good value," says Zerda, who reinvested the earnings. "And I have a good time doing it."

BY THE NUMBERS

$50,000: Capital Zerda used to launch the business

He determined that this amount -- from a deferred bonus he got when leaving his job -- would allow him to buy a horse a year for the first few years before he could bring in investors. (He has since sold 19 partnerships, with stakes from 5% to 20%.)

5 years : Period before quitting that he power-saved

As a result, he and his wife, Lisa, a director for a health insurer, have nearly $750,000 for retirement. The couple, who have two kids attending state colleges and a 15-year-old at home, are able to live on Steve's pension and Lisa's salary.

100%: Earnings he'll reinvest for the next few years

Zerda plans to forgo a salary -- he used to make $120,000 -- to grow the business. He'll continue buying yearlings, with hopes of selling them when they are around age 5, for three to five times what he paid. "Horses tend to retire once they've made $1 million," he says. "I'd like to position myself to follow that example."

First Published: December 26, 2013: 5:10 PM ET

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Delta glitch causes ultra-low fares

Delta acknowledged a glitch caused steeply-discounted tickets to be offered online Thursday -- some for as low as $27, according to customers.

NEW YORK (CNNMoney)

Delta (DAL, Fortune 500) acknowledged that a glitch caused steeply-discounted tickets to be offered online Thursday -- some for as low as $12.83, according to customers. They celebrated their finds on social media, including cross-country flights for $40 and Boston to Honolulu lifts for $68.

Cory Watkins, a travel agent in Oklahoma, snagged some of the best bargains he's ever seen -- round-trip, first class from Oklahoma City to St. Louis for $12.83, fares to Anchorage for $87.53, and more. In just under an hour, Watkins spent $1,387.38 for twelve flights for himself and clients for first class trips all over the U.S.

Related: United and Delta raise bar on frequent flier miles

One customer said she bought tickets between Tallahassee and Los Angeles for $27 each way. Those routes normally cost between several hundred and several thousand dollars.

Delta spokesman Trebor Banstetter said the airline would honor the incorrectly priced fares, which were offered on the airline's website and other travel sites where it lists tickets.

"For a portion of the morning today, some prices on delta.com and other booking channels were incorrectly displayed, resulting in lower than usual fares for customers," Banstetter said in a statement.

Related: U.S. airlines want to remain cell phone-free

He said the "situation has been resolved and the correct prices are being displayed," but early Thursday afternoon, some ticket searches on Delta's site would not load and produced an error.

The airline did not have an estimate for how many tickets were sold at incorrect prices, Banstetter said.

--CNN's Chuck Johnston contributed reporting.

First Published: December 26, 2013: 3:16 PM ET

12.08 | 0 komentar | Read More

25 apps you should download right now

VSCO cam is the best one-stop shop for photo taking, photo editing, photo organizing and photo sharing

NEW YORK (CNNMoney)

Sure, you know about Facebook (FB, Fortune 500), Twitter (TWTR), Instagram, Pandora (P), Yelp (YELP), Google (GOOG, Fortune 500) Maps and Netflix (NFLX). But what about the rest?

Lucky for you, we have some recommendations.

Whether you want new apps, essential apps, or apps specific to your new iPhone, iPad or Android device, we got you covered.

5 new apps

Ridiculous Fishing - There are very few games that are truly and uniquely suited for smartphones. Ridiculous Fishing is one of them. [iOS, Android, $3]

Dots - It's like Candy Crush, but better. [iOS, Android, Free]

Vine - Twitter's (TWTR) strange little video-sharing app is still figuring out exactly what it is, but it's growing legion of experimenters are beginning to answer that question. [iPhone, Android, Free]

Hangouts - After years of amassing Gmail chatters, Google FINALLY created a truly unified, cross-platform messaging solution for all its products. It also means iPhone users' days of using horrible third-party apps are over. [iOS, Android, Free]

VSCO cam - VSCO cam technically debuted in 2012, but the second generation of the app has been so thoroughly overhauled that it's essentially a whole new app. It's the best one-stop shop for photo taking, photo editing, photo organizing and photo sharing. [iPhone, Android, Free]

Related: Tips for getting started with your new mobile gadget

5 cross-platform apps

Snapchat - The self-destructing photo and video sharing app first appeared last year, but it wasn't until the second half of this year that the service really hit its stride. The fun is undeniable. [iPhone, Android, Free]

WhatsApp - This may not be the BEST chatting or texting app, but you won't find a service on more devices, used in more countries, with more active users. [iPhone, Android, Free]

SoundCloud - If you mixed the old MySpace Music with Twitter, you'd end up with SoundCloud. And it's so much better than it sounds. Follow your favorite artists, labels, publications or users, and every time they upload new music to their profile, it ends up in your music stream. This is radio for a new era. [iOS, Android, Free]

Dropbox - There's a very good chance that if you're using a cloud service, it's Dropbox. There's also a good chance that's what your friends are using too. Might as well have your account within tapping distance on your phone. [iOS, Android, Free]

Kindle - The Kindle app is not only the best and most flexible way to consume e-books on your phone or tablet, but is also great for reading other documents including PDFs. [iOS, Android, Free]

5 apps for iPhone

Google Search - Once upon a time this was maybe the most worthless app Google offered for an Apple (AAPL, Fortune 500) device. But once Google baked in its voice recognition technology and its Google Now predictive search, it's a must-have. Neither feature is quite as good as you'd find on a device like the Nexus 5 or Moto X, but it's close. [Free]

Fantastical 2 - If you don't like the stock calendar app on iOS 7 (and many don't), Fantastical may be the substitute that meets your needs. [$2 for a limited time]

Level - Level automatically sets up a daily, weekly and monthly budget for you, and then quickly and simply keeps you updated on your spending habits. [Free]

Mailbox - If you happen to be a mailbox zero devotee, you won't find a better mail client. [Free]

Figure - There is no easier way to make yourself sound like a musical genius when you have 10 minutes to kill. [$1]

5 apps for Android devices

1Weather - There's not really a great default weather experience baked into Android, so 1weather offers the best combination of usable information and clean design. [Free]

Google Now Widget - Google Now's contextual/predictive search is baked into the default search app that comes preloaded on most Android devices. But sticking the widget on your home screen gives you the info you want before you even know you want it. [via Android home screen]

SwiftKey 4 - Once you get the hang of it, gesture-based keyboards are faster and more accurate than tapping at the screen. And, though Android has its own default solution, Swiftkey is still the best of the bunch. [$2]

Aviate - The stock Android home screen is pretty good, but if you're looking for something different, give Aviate a try. It's certainly cleaner than anything you'd find on phone from Samsung, LG, or Sony. [Free]

Car Widget - If you commute to work every day, you should not be navigating your way through the normal Android UI. Car Widget puts the apps you need front and center. [Free]

5 apps for iPad

Paper - Hands down the best consumer-facing app for drawing, painting and sketching. It doesn't do everything under the sun, but it does what it does extremely well. [Free]

iA Writer - This is a no-nonsense word processor that provides minimal distractions. [$5]

Traktor DJ - If you've ever wanted to try your hand at DJing, but didn't want to drop a small fortune on the gear, just download this app and call it a day. [$10]

How to Cook Everything - Tablets are excellent aids in the kitchen and there are few books on cooking better than Mark Bittman's opus. [$10]

Superbrothers: Sword and Sworcery EP - Infinity Blade III might be the most technically impressive iPad game, but even three years after its release, Sword and Sworcery is the most original and engaging iPad game you'll encounter. [$2]

First Published: December 24, 2013: 2:11 PM ET

12.08 | 0 komentar | Read More

Price of stamps to go up 3 cents

The price of a stamp will go up 3 cents in January.

NEW YORK (CNNMoney)

A panel overseeing the U.S. Postal Service approved a three-cent hike from the current price of 46 cents. It will take effect on January 26.

That includes a one-cent increase -- to keep pace with inflation -- approved by the Postal Regulatory Commission last month. At the time, the cash-strapped Postal Service had sought the three-cent bump.

Related: USPS to rent mail vans

The additional two cents are intended to be temporary and to recoup losses the Postal Service suffered during the recession, the commission said.

It said the Postal Service must regularly report how much money the increase brings in and "develop a plan to phase out the rates once they have produced the revenue justified by their request."

Related: Postal Service delivers Amazon packages on Sunday

But the agency is in deep trouble with the shift away from mail and to the Internet. It reported a $5 billion loss in the most recent fiscal year, and a $16 billion loss in 2012. Those losses include expensive contributions to retiree health care required by Congress.

The Postal Service has considered paring back mail delivery and expanding the more profitable package delivery to bring in more revenue.

Related: Postal Service would love to ship you beer

Customers who purchase forever stamps before the new price takes effect will continue to pay 46 cents.

--CNNMoney's Jen Liberto contributed to this report.

First Published: December 24, 2013: 5:49 PM ET

12.08 | 0 komentar | Read More

Target credit card hack: The latest

NEW YORK (CNNMoney)

The discount retailer acknowledged on late last week that the hack began on Black Friday and stretched more than two weeks to December 15.

Here's what we know:

-- The breach: Malware on store point-of-sale systems was involved in the security breach. The company is cooperating with federal authorities, including the Secret Service and Department of Justice, and is withholding additional details at the request of law enforcement.

-- Where did it happen: The hack was limited customers shopping in U.S. and Canadian Target (TGT, Fortune 500) stores with credit and debit cards. Online purchases were not involved.

-- What got stolen: Hackers stole customer names, credit or debit card numbers, expiration dates and card security codes, Target said. PIN numbers, other customer information like Social Security numbers, and employee records were not compromised, according to Target.

-- Target customers: The company has notified "millions" of affected customers for whom Target has email addresses. CEO Gregg Steinhafel said "the cause of this issue has been addressed and you can shop with confidence at Target."

-- Banks: Target also notified credit and debit card issuers, many of which said they were monitoring customer accounts for fraudulent activity. Chase initially set low daily withdrawal and spending limits on its cards, though it adjusted those limits late Monday.

-- Lawsuits: At least two dozen federal class action lawsuits have been filed in a handful of states alleging the retailer was negligent and did not adequately protect customer privacy.

-- State AGs: Target said its legal team held a conference call with most states' attorneys general on Monday afternoon.

-- More fallout: Target has hired a private firm to review its information security and two U.S. senators called for consumer protection agencies to investigate.

-- What you should do: Consumer watchdogs say customers should check their credit card statements, including for small purchases that could indicate fraudsters are verifying an account is still active. Customers should also contact their banks to request a replacement card -- if one isn't already on the way -- and change their PIN.

-- How to contact Target: Customers concerned about the breach could call Target, and customer service teams would be available on Christmas, Snyder said. The company said additional information would be available at corporate.target.com, by phone at 1-800-440-0680, and on Twitter @Target.

First Published: December 24, 2013: 2:58 PM ET

12.08 | 0 komentar | Read More

25 apps you should download right now

VSCO cam is the best one-stop shop for photo taking, photo editing, photo organizing and photo sharing

NEW YORK (CNNMoney)

Sure, you know about Facebook (FB, Fortune 500), Twitter (TWTR), Instagram, Pandora (P), Yelp (YELP), Google (GOOG, Fortune 500) Maps and Netflix (NFLX). But what about the rest?

Lucky for you, we have some recommendations.

Whether you want new apps, essential apps, or apps specific to your new iPhone, iPad or Android device, we got you covered.

5 new apps

Ridiculous Fishing - There are very few games that are truly and uniquely suited for smartphones. Ridiculous Fishing is one of them. [iOS, Android, $3]

Dots - It's like Candy Crush, but better. [iOS, Android, Free]

Vine - Twitter's (TWTR) strange little video-sharing app is still figuring out exactly what it is, but it's growing legion of experimenters are beginning to answer that question. [iPhone, Android, Free]

Hangouts - After years of amassing Gmail chatters, Google FINALLY created a truly unified, cross-platform messaging solution for all its products. It also means iPhone users' days of using horrible third-party apps are over. [iOS, Android, Free]

VSCO cam - VSCO cam technically debuted in 2012, but the second generation of the app has been so thoroughly overhauled that it's essentially a whole new app. It's the best one-stop shop for photo taking, photo editing, photo organizing and photo sharing. [iPhone, Android, Free]

Related: Tips for getting started with your new mobile gadget

5 cross-platform apps

Snapchat - The self-destructing photo and video sharing app first appeared last year, but it wasn't until the second half of this year that the service really hit its stride. The fun is undeniable. [iPhone, Android, Free]

WhatsApp - This may not be the BEST chatting or texting app, but you won't find a service on more devices, used in more countries, with more active users. [iPhone, Android, Free]

SoundCloud - If you mixed the old MySpace Music with Twitter, you'd end up with SoundCloud. And it's so much better than it sounds. Follow your favorite artists, labels, publications or users, and every time they upload new music to their profile, it ends up in your music stream. This is radio for a new era. [iOS, Android, Free]

Dropbox - There's a very good chance that if you're using a cloud service, it's Dropbox. There's also a good chance that's what your friends are using too. Might as well have your account within tapping distance on your phone. [iOS, Android, Free]

Kindle - The Kindle app is not only the best and most flexible way to consume e-books on your phone or tablet, but is also great for reading other documents including PDFs. [iOS, Android, Free]

5 apps for iPhone

Google Search - Once upon a time this was maybe the most worthless app Google offered for an Apple (AAPL, Fortune 500) device. But once Google baked in its voice recognition technology and its Google Now predictive search, it's a must-have. Neither feature is quite as good as you'd find on a device like the Nexus 5 or Moto X, but it's close. [Free]

Fantastical 2 - If you don't like the stock calendar app on iOS 7 (and many don't), Fantastical may be the substitute that meets your needs. [$2 for a limited time]

Level - Level automatically sets up a daily, weekly and monthly budget for you, and then quickly and simply keeps you updated on your spending habits. [Free]

Mailbox - If you happen to be a mailbox zero devotee, you won't find a better mail client. [Free]

Figure - There is no easier way to make yourself sound like a musical genius when you have 10 minutes to kill. [$1]

5 apps for Android devices

1Weather - There's not really a great default weather experience baked into Android, so 1weather offers the best combination of usable information and clean design. [Free]

Google Now Widget - Google Now's contextual/predictive search is baked into the default search app that comes preloaded on most Android devices. But sticking the widget on your home screen gives you the info you want before you even know you want it. [via Android home screen]

SwiftKey 4 - Once you get the hang of it, gesture-based keyboards are faster and more accurate than tapping at the screen. And, though Android has its own default solution, Swiftkey is still the best of the bunch. [$2]

Aviate - The stock Android home screen is pretty good, but if you're looking for something different, give Aviate a try. It's certainly cleaner than anything you'd find on phone from Samsung, LG, or Sony. [Free]

Car Widget - If you commute to work every day, you should not be navigating your way through the normal Android UI. Car Widget puts the apps you need front and center. [Free]

5 apps for iPad

Paper - Hands down the best consumer-facing app for drawing, painting and sketching. It doesn't do everything under the sun, but it does what it does extremely well. [Free]

iA Writer - This is a no-nonsense word processor that provides minimal distractions. [$5]

Traktor DJ - If you've ever wanted to try your hand at DJing, but didn't want to drop a small fortune on the gear, just download this app and call it a day. [$10]

How to Cook Everything - Tablets are excellent aids in the kitchen and there are few books on cooking better than Mark Bittman's opus. [$10]

Superbrothers: Sword and Sworcery EP - Infinity Blade III might be the most technically impressive iPad game, but even three years after its release, Sword and Sworcery is the most original and engaging iPad game you'll encounter. [$2]

First Published: December 24, 2013: 2:11 PM ET

12.08 | 0 komentar | Read More

Target credit card hack: The latest

NEW YORK (CNNMoney)

The discount retailer acknowledged on late last week that the hack began on Black Friday and stretched more than two weeks to December 15.

Here's what we know:

-- The breach: Malware on store point-of-sale systems was involved in the security breach. The company is cooperating with federal authorities, including the Secret Service and Department of Justice, and is withholding additional details at the request of law enforcement.

-- Where did it happen: The hack was limited customers shopping in U.S. and Canadian Target (TGT, Fortune 500) stores with credit and debit cards. Online purchases were not involved.

-- What got stolen: Hackers stole customer names, credit or debit card numbers, expiration dates and card security codes, Target said. PIN numbers, other customer information like Social Security numbers, and employee records were not compromised.

-- Target customers: The company has notified "millions" of affected customers for whom Target has email addresses. CEO Gregg Steinhafel said "the cause of this issue has been addressed and you can shop with confidence at Target."

-- Banks: Target also notified credit and debit card issuers, many of which said they were monitoring customer accounts for fraudulent activity. Chase initially set low daily withdrawal and spending limits on its cards, though it adjusted those limits late Monday.

-- Lawsuits: At least two dozen federal class action lawsuits have been filed in a handful of states alleging the retailer was negligent and did not adequately protect customer privacy.

-- State AGs: Target said its legal team held a conference call with most states' attorneys general on Monday afternoon.

-- More fallout: Target has hired a private firm to review its information security and two U.S. senators called for consumer protection agencies to investigate.

-- What you should do: Consumer watchdogs say customers should check their credit card statements, including for small purchases that could indicate fraudsters are verifying an account is still active. Customers should also contact their banks to request a replacement card -- if one isn't already on the way -- and change their PIN.

-- How to contact Target: Customers concerned about the breach could call Target, and customer service teams would be available on Christmas, Snyder said. The company said additional information would be available at corporate.target.com, by phone at 1-800-440-0680, and on Twitter @Target.

First Published: December 24, 2013: 2:58 PM ET

12.08 | 0 komentar | Read More

Got a job at age 70, do I pay into Social Security again?

NEW YORK (CNNMoney)

Yes. Even though you're already collecting, you'd have to pay Social Security taxes: 6.2% of your earnings on wages up to a cutoff that will be $117,000 in 2014, says AARP's Jonathan Peterson, author of Social Security for Dummies.

Some good news: Because you are beyond your full retirement age of 66, working won't reduce your benefits. (In years before your full retirement age, benefits would be cut by $1 for every $2 you earn over an exempted amount -- $15,480 in 2014 -- although you'd get that money later as a higher benefit.)

Related: Does quitting at 63 affect my Social Security?

Your new work may boost your future benefits, which are based on your top 35 years of earnings. But any bump is likely to be noticeable only if you haven't already had 35 years of earnings.

First Published: December 23, 2013: 4:43 PM ET

12.08 | 0 komentar | Read More

Fundamental index funds: Great players, wrong game

(Money Magazine)

Ever since, these "fundamental indexers" have waged a public debate with Vanguard founder Jack Bogle and other passive-investing purists over what an index fund is.

That argument distracts from the true advantages of fundamental index funds. Like traditional indexes, fundamental indexing calls for owning most of the stocks in the market, instead of picking individual issues. But rather than holding shares in proportion to a company's total market value, the new funds weight them based on attributes such as earnings, dividends, or valuations.

As a result, their portfolios tilt toward value stocks, or shares that are cheap relative to profits or assets.

Related: What to invest in next year

"And all the evidence we have seen is that there is a value premium" -- that is, an extra return for value stocks -- says Paul Kaplan of the fund research group Morningstar.

They also skew to smaller stocks, which likewise outperform over long periods. (Says who? Eugene Fama, for one; he just won the Nobel in economics.)

Purists cry foul. "Anytime you depart from the market, you're an active manager," says Bogle.

Here's the thing, though: Even if you think this is another form of active stock picking, it turns out fundamental funds may be the best possible way to do that. Arnott now argues that "we're more of a threat to active management than to cap-weighted indexing, because investors are more likely to be deeply disappointed with their active managers."

For example, PowerShares FTSE RAFI U.S. 1000 ETF (PRF), which tracks Arnott's strategy, gained an annualized 18.7% over five years, beating the S&P 500 and 91% of all active large-cap funds. Similarly, WisdomTree Earnings 500 (EPS) and WisdomTree SmallCap Earnings (EES) beat more than 60% and 90% of their respective active peers.

How? In addition to their tilts, these funds enjoy a cost edge. WisdomTree Earnings 500 charges 0.28% of assets, a percentage point less than the average active fund. It also trades infrequently, cutting transaction costs.

Related: Balance out a lopsided index fund

So if you want to dabble in active funds for a shot at outperformance, consider using a fundamental fund instead.

A portfolio half in an S&P 500 indexer and half in an average active large-cap fund would have returned 15% annualized over the past five years. Had that active stake been in the PowerShares fund, you'd have earned about two points better a year. That's a fundamentally sound result.

First Published: December 23, 2013: 4:35 PM ET

12.08 | 0 komentar | Read More

Lawsuits piling up on Target over hack

NEW YORK (CNNMoney)

Just days after acknowledging a massive hack of customer credit card data, Target is facing several lawsuits. And more could be on the way.

Customers in California, Oregon and Rhode Island have filed purported class actions in federal courts, alleging Target was negligent and did not protect their card information.

Target (TGT, Fortune 500) said last week that 40 million credit and debit card numbers, expiration dates and security codes had been stolen. It said it was cooperating with law enforcement and had contracted a private investigation firm. Target also said it began notifying banks, as well as "millions" of customers directly for whom it had email addresses.

It provided little information about how the hack took place until Monday, when spokeswoman Molly Snyder said investigators were looking at "malware that affected Target's point-of-sale system in our U.S. stores." She said the company was withholding additional details at the request of law enforcement.

Related: Which is safer, credit or debit?

Plaintiffs in California and Oregon alleged Target "failed to implement and maintain reasonable security procedures and practices."

Robert Ahdoot, a lawyer for the California plaintiffs, said he spoke to customers who claimed unauthorized ATM withdrawals had been made from their accounts.

"Target has an obligation to provide adequate security for the financial information they collect," Ahdoot said.

The Rhode Island suit also alleged negligence, and claimed customers would not have purchased from Target if they knew of the breach, which lasted from Black Friday through mid-December but was not disclosed until last week.

Snyder, the Target spokeswoman, said the company doesn't "comment on pending litigation."

Related: 4 things to do after your card has been hacked

Filing the suit is the first step but a judge would have to certify that affected customers constitute a "class."

A class action is "a different animal in legal work" from other types of cases, said Anne Bremner, a defense lawyer who has handled many such cases.

Judges would consider whether members of the class were similarly damaged; whether the plaintiffs are typical of and can adequately represent the class; and whether individual lawsuits would be impractical.

Target, she said, could choose to argue the plaintiffs haven't shown they were damaged by the breach.

"You can't just sue because something happened," Bremner said. "You have to have a claim and a damage."

And additional suits against Target could be filed in coming weeks, including some in state courts. Judges could decide to consolidate these and others into an individual lawsuit against the retailer.

First Published: December 23, 2013: 4:54 PM ET

12.08 | 0 komentar | Read More

Cracker Barrel reverses decision to pull Duck Dynasty products

Phil Robertson, patriarch of the Robertson family and the "Duck Commander."

NEW YORK (CNNMoney)

The popular Duck Dynasty television show and Duck Commander products took center stage in a controversy over comments made by Phil Robertson. As patriarch of the family and founder of the company, he stars in the A&E reality show based on his Louisiana life and company.

Cracker Barrel (CBRL), a chain of over 600 Southern-themed restaurants and stores, said Friday it "removed selected products which we were concerned might offend some of our guests while we evaluate the situation."

Two days later, it had evaluated the situation.

"Our intent was to avoid offending, but that's just what we've done," the company announced. "Today, we are putting all our Duck Dynasty products back in our stores."

It cited messages of support, including on social media, for Robertson, a hunter who is known as the Duck Commander and for 40 years has sold the duck calls he designed.

"You told us we made a mistake," Cracker Barrel said. "And, you weren't shy about it."

Within hours, a version of the announcement posted to Facebook had been shared tens of thousands of times.

Related: Duck Dynasty is a retail powerhouse

Cracker Barrel's website doesn't list the calls, which look like whistles and retail on the Duck Commander website for between $10 and $150. But Cracker Barrel does sell t-shirts, a talking keychain and camouflage jelly beans with the Duck Commander logo. It also stocks Robertson's autobiography, his wife's cookbook and a mug bearing his catchphrase: "Happy happy happy."

Jeff Eller, a spokesman for Cracker Barrel, said products with the television show branding had been pulled but were now in stock again. He said stores offer a broader selection of Duck Dynasty products than does the website.

Robertson stirred controversy with comments he made in a GQ interview about homosexuality, bestiality and race.

A&E said he was indefinitely suspended from the show, but did not clarify what that meant for the announced January debut of a fifth season. It said the fourth season premiere had nearly 12 million viewers, making it the no. 1 nonfiction series in cable history.

First Published: December 22, 2013: 4:49 PM ET

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Apple inks China Mobile deal

HONG KONG (CNNMoney)

The two companies said the iPhone 5s and 5c will be available there beginning January 17. The mobile company and Apple (AAPL, Fortune 500) will take pre-registrations starting on Wednesday. The companies did not announce prices for the phones, which went on sale in the U.S. in September.

Completion of the deal greatly expands Apple's reach in the world's most populous country and provides access to a previously untapped revenue stream.

Related: Coolest gadgets of 2013

China Mobile (CHL) is the world's largest carrier by subscribers, with around 700 million users -- or more than twice the population of the U.S. Apple executives have long courted the mobile carrier, and analysts have deemed the partnership a must-have for Apple as it seeks to gain devoted fans among China's rapidly growing middle class.

The country of 1.3 billion is Apple's largest market outside the United States, but the iPhone maker has stumbled there, losing ground in the smartphone race to rivals including Xiaomi that offer cheaper phones.

Even before the deal was struck, analysts at Cantor Fitzgerald estimated that 35 million to 40 million iPhones were in use on China Mobile's network. Cantor estimated that Apple could sell an additional 20 to 24 million iPhones to China Mobile over the first calendar year of a deal.

Related: Apple supplier under scrutiny over death

Apple is No. 1 or No. 2 in almost all other countries where it sells the iPhone, but has lagged behind its competitors in China. Samsung and Nokia, for example, both typically beat Apple in terms of smartphone sales in China. A host of local brands, including Lenovo, Coolpad, Huawei and ZTE have also topped Apple in recent quarters.

Smartphones are popular in China, but 4G data service has been slow to arrive. The first 4G networks in China were only recently powered up. China Mobile said it would have 4G services in 16 cities by the end of this year, and expand to 340 cities next year.

Even in the face of intense competition, Apple CEO Tim Cook has maintained his optimism about Apple's business in the region.

"I continue to believe that in the arc of time here, China is a huge opportunity for Apple," Cook said earlier this year.

-- Sophia Yan contributed reporting.

First Published: December 22, 2013: 5:31 PM ET

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Military competition shows off the latest robots

Homestead, Fla. (CNNMoney)

They're slow. They trip and fall. Some even break their ankles or wrists.

The latest in robotics was on display the past few days at a racetrack just south of Miami, Fla., part of a $2 million competition funded by the U.S. military.

Engineering teams from high-tech companies and top universities showed off their designs, ranging from crawling models that look like spiders to heavy, hulking humanoids.

In all, 13 teams were competing for a $2 million award from the U.S. Defense Advanced Research Projects Agency to be handed out next year.

Related: Google moves into military robotics

Competitors ranged from well-funded researchers at the Massachusetts Institute of Technology to hobbyists with Team Mojavaton in Colorado. They even came from abroad, including the Japanese startup Schaft (recently bought by Google (GOOG, Fortune 500)) and Hong Kong University.

Throughout the demonstrations, the smell of oil hung in the air as robots made their way across test tracks. The aim was to test how well the machines could open doors, turn valves and keep their balance on uneven terrain.

The engines of some of the robots made a low hum, while others let off a high-pitched wail.

There were seven copies of the Atlas robot -- a two-legged, 300-pound creation by Boston Dynamics, which was acquired by Google last week. All looked alike, but each performed differently, because the software teams had designed different versions of its brain.

Related: 7 robots too expensive (or lethal) to own

A robot called Thor, built by Virginia Tech, looked oddly human while driving a four-wheeled buggy through a winding track -- its right arm turning the steering wheel and its left arm hanging casually off the side.

In fact, many engineers are racing to build robots with human-like dimensions and functionality so they can step through doorways, climb ladders and turn pressure valves.

The need for such robots was made urgent in the aftermath of the Fukushima nuclear power plant disaster in Japan, when cleanup crews needed machines to venture into zones too dangerous for humans, said Arati Prabhakar, head of DARPA.

Engineers say robots able to perform simple human tasks would lead to applications well beyond rescue and disaster mitigation, however.

The scientists building these bots see a robust future for robotics in home health care and precision manufacturing, but they are leery to predict when that will happen.

Even if robotics has a long way to go, Google's entry was seen by those at the DARPA challenge as a sign the field is about to explode with advancement.

"This robotics challenge will change the way people perceive humanoid robots," said Dennis Hong, a mechanical engineering professor at Virginia Tech. "I envision them doing dishes, talking out the trash, doing the laundry. The future is quite near, but we've got a long way to go."

First Published: December 22, 2013: 8:30 PM ET

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Online retailer Overstock to accept Bitcoin

Overstock.com CEO Patrick Byrne is endorsing Bitcoin. His company is the first major U.S. retailer to do so.

NEW YORK (CNNMoney)

Byrne said customers will be able to use the virtual currency to make purchases on Overstock.com (OSTK), which sells everything from digital cameras and bed sheets to patio furniture and even cars. The company is expected to have total revenue of $1.3 billion for 2013, according to FactSet Research.

"We think there's going to be a market in Bitcoin, and we want to get in front of it," said Byrne. "We want to be the first major e-tailer that accepts them." Byrne first made comments about Overstock.com accepting Bitcoin in an interview with Bitcoin blog newsBTC and later in the Financial Times.

Overstock plans to begin accepting Bitcoin near the end of the second quarter of 2014. Byrne said the move stems partly from his background in the Austrian School of economics, which is associated with the Libertarian party in the United States.

"We're the guys who like gold," he said. "We think the monetary base should not be something that a government can create with a stroke of a pen."

Unlike traditional currencies, Bitcoin is not backed by any government authority or central bank. It exists only on the internet and is "mined" by powerful computers that solve complex math puzzles.

Byrne said he is concerned about the possibility of "bad currency wars" in the future. He said the U.S. dollar is already being undermined by the Federal Reserve's easy money policies and by overspending by politicians in Washington.

Related: What is Bitcoin?

Like gold, Byrne said Bitcoin should hold its value better than the dollar because it is "mathematically constrained" and cannot be manipulated by government authorities.

There are currently 12.1 million bitcoins in circulation, according to blockchain.info. The total number of bitcoins is capped at 21 million.

Critics say Bitcoin is at best a fad and at worst a haven for criminals looking to buy and sell illegal goods anonymously. But supporters argue that Bitcoin is a more democratic alternative to traditional currencies.

Former U.S. Congressman Ron Paul, an outspoken Libertarian from Texas, has said that Bitcoin could be the dollar's "destroyer" if it goes mainstream.

Bitcoin has exploded in value this year, rising from about $13 in January to more than $1,200 earlier this month. On Friday, bitcoins were trading at about $739 on the Mt. Gox exchange.

The currency is prone to wild swings and experts say Bitcoin will remain volatile as the technology evolves.

Byrne acknowledged that the volatility is a problem and that Overstock will need to "continually convert Bitcoins into dollars" to avoid losing money. Eventually, he said there will be a derivatives market that will allow companies to hedge their exposure to Bitcoin.

Related: Bitcoin worth almost as much as gold

In some respects, it's not a surprise that Overstock would move to accept Bitcoin. The company is unconventional. It is known for quirky ads and for shortening its name online to O.co.

Byrne also has a penchant for writing long, rambling shareholder letters in earnings reports. And he famously appeared on "60 Minutes" to complain about short sellers who were betting against his stock. He even told CNNMoney in 2003 that "When opportunities come along where we can knee the shorts in the groin, that's always good for fun and amusement. That's just icing on the cake."

But Overstock is not the first business to embrace Bitcoin.

British entrepreneur Richard Branson made a splash in November when he announced that his that his commercial space travel venture, Virgin Galactic, will allow customers to pay for their flights with Bitcoin.

China's leading search engine Baidu (BIDU) also accepts Bitcoin for certain services. And a car dealer in California recently accepted Bitcoin as payment for a Tesla (TSLA) Model S, valued at $100,000.

Bitcoin has been a particularly popular investment in China, but regulators have been cracking down. This week, China's largest bitcoin exchange, BTC China, abruptly stopped accepting new deposits. That came after China's central bank issued a warning and announced new rules for financial institutions dealing in bitcoins earlier this month.

European Union officials have also warned about the risks of Bitcoin and may consider regulating the currency.

First Published: December 20, 2013: 2:10 PM ET

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3 new arrests in Silk Road case

NEW YORK (CNNMoney)

An indictment unsealed this week in New York accuses the trio of helping to operate Silk Road, a website shut down in October that offered an anonymous place to buy drugs, weapons and other illicit products. During its two-and-a-half years in operation, prosecutors say the site handled hundreds of millions of dollars' worth of unlawful transactions for over one hundred thousand buyers.

Silk Road's alleged owner -- Ross Ulbricht, also allegedly known by his online handle "Dread Pirate Roberts" -- is currently in custody and facing charges related to money laundering and drug trafficking.

Related: Arrests in U.K. follow Silk Road bust

The indictment claims that Ulbricht paid two of the new defendants -- Andrew Michael Jones, 24, and Gary Davis, 25 -- to work as administrators on the site, while the third, 40-year-old Peter Philip Nash, allegedly worked as the head moderator for the Silk Road discussion forums. They allegedly received salaries between $50,000 and $75,000 annually.

The three men are charged with conspiracy to commit money laundering, computer hacking and narcotics trafficking. Contact information for their attorneys was not immediately available.

Jones was arrested Thursday in Virginia and appeared in court today, a spokeswoman for the U.S. Attorney's Office in Manhattan said. Davis was arrested Thursday in Ireland, while Nash was arrested Thursday in Australia.

First Published: December 20, 2013: 1:31 PM ET

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Target offers 10% discount after credit card hack

NEW YORK (CNNMoney)

"We recognize this has been confusing and disruptive during an already busy holiday season," Target CEO Gregg Steinhafel said in a statement Friday. "Our guests' trust is our top priority at Target and we are committed to making this right."

The company also provided details Friday about the extent of the hack and the information that could have been compromised.

The nation's No. 2 general merchandise retailer said cards used at its brick-and-mortar stores between Nov. 27 and Dec. 15 of this year may have been impacted.

Target (TGT, Fortune 500) said there is no indication that any debit card PIN numbers were compromised. The retailer also claimed it doesn't appear that the three- or four-digit security code visible on the face of credit cards were breached. That means that the debit and credit cards that were compromised cannot be used to withdraw cash from an ATM or to shop online.

Related: 4 things to do after your card has been hacked

But lawyer Robert Ahdoot, part of a legal team in California that has filed a lawsuit seeking class action status on behalf of Target customers, said he had spoken to shoppers who claimed thieves had used their debit card information to withdraw money from ATMs.

The lawsuit alleges negligence on the part of the retailer, and also says Target failed to promptly notify victims of the hack.

"Target has an obligation to provide adequate security for the financial information they collect," Ahdoot said. He recommended that consumers who suspect that their cards may have been compromised change their PIN numbers as a precaution.

Target spokeswoman Molly Snyder said the retailer "typically doesn't comment on pending litigation."

Target said it believes customers' birth dates and social security numbers weren't compromised. The retailer said it gave Visa, MasterCard (MA, Fortune 500), Discover (DFS, Fortune 500) and American Express (AXP, Fortune 500) the card numbers of those who may have been impacted, and that these companies will monitor the cards for fraud.

As a precaution, J.P. Morgan Chase & Co. said it was temporarily limiting ATM withdrawals to $100 a day and purchases to $300 a day for Chase customers in the U.S. whose debit cards are at risk, the company said in a letter to affected account holders.

Meanwhile, Target is also monitoring its own card, the REDcard, for potential unauthorized activity.

Steinhafel said the affected customers "will not be held financially responsible for any credit and debit card fraud."

"[T]o provide guests with extra assurance, we will be offering free credit monitoring services," Steinhafel said. "We will be in touch with those impacted by this issue soon on how and where to access the service."

To help answer questions about the incident, Target has set up a hotline for customers. Shoppers have been reporting long hold times, so Target said it will beef up its staffing.

Target didn't specify how its systems were hacked. But judging by the scope of the breach and the kind of information that criminals obtained, security experts say hackers apparently targeted the retailer's point-of-sale system. That means they either slipped malware into the terminals where customers swipe their credit cards, or they collected customer data while it was en route from Target to its credit card processors.

The retailer said it had notified authorities and financial institutions immediately after it was made aware of the unauthorized access, and had hired a forensics team to investigate how the breach may have occurred. The issue that allowed the breach has been identified and resolved, Snyder said.

First Published: December 20, 2013: 3:26 PM ET

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