Residential construction picked up momentum in September and now is running at its highest level in four years, a turn that could have a positive effect on the jobs market and the broader U.S. economy.
Source:
Wall Street Journal
The major indexes fell modestly on Monday as investors prepare for the upcoming earnings seasons, which is expected to be a disappointment. On Tuesday the Dow fell over 100 points after the International Monetary Fund reduced its outlook on economic growth for 2012. Another steep decline followed on Wednesday as gloomy earnings from Alcoa seemed to indicate that the overall third quarter earnings concerns are valid. On Thursday the Dow had its fourth consecutive losing session of the week, although losses would have been worse if the initial weekly jobless claims report had not been much better than expected. The Dow barely avoided an 0 for 5 week on Friday by eeking out a small gain. However the NASDAQ suffered its sixth straight losing session.
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You’ve probably heard of Robert Kiyosaki through his best-selling book series, Rich Dad, Poor Dad. Kiyosaki holds himself out as a self-made wealth guru who is happy to share the secret money-making strategies of the wealthy.
The tactics that he has advocated range from silly to illegal and include things like insider trading, buying multiple real estate properties for no money down, and buying stocks on margin via unfunded brokerage accounts.
Now add bankruptcy to Kiyosaki’s highly questionable list of strategies. One of Kiyosaki’s businesses, Rich Global LLC, filed for bankruptcy protection in August after it was ordered to pay a $24 million settlement. Kiyosaki will not be putting any of his personal fortune toward the settlement.
There is no evidence that Rich Dad, the man who allegedly imparted all these money-making secrets to Kiyosaki, ever existed. Nor is there any evidence that Kiyosaki amassed any significant wealth before the publication of Rich Dad, Poor Dad in 1997. Nonetheless, Kiyosaki is now reportedly worth $80 million!
In all likelihood, Kiyosaki did not get wealthy using the schemes he pushes in his books, but through proceeds of his book sales and personal appearances. He got wealthy selling the dream and illusion of get-rich-quick schemes.
source: Forbes
The fourth quarter of 2012 began on Monday with renewed optimism among traders, with gains registered by the Dow, S&P 500, and NASDAQ. An unexpectedly favorable manufacturing report seemed to be the cause for the uptick. On Tuesday stocks bounced up and down considerably to settle near the unchanged mark after the Spanish prime minister cast doubt on an imminent Eurozone bailout of the country. The market was little changed again on Wednesday despite a report showing that private-sector job growth diminished less than expected in September. On Thursday the major indexes had solid gains once again even in light of a report finding that weekly initial jobless claims increased. Such a gain a was somewhat surprising considering investors’ tendency to be cautious on the day before the monthly unemployment rate is updated. The much-anticipated September unemployment rate report did not disappoint, as the unemployment rate dipped below the 8% mark for the first time since January 2009 at 7.8%. Still, the major indexes did not finish strongly on concerns about more Eurozone woes, this time regarding Greece’s chance to receive additional aid.
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The recent buoyancy in the stock market hasn’t won over mutual-fund buyers. August marked the 16th consecutive month in which investors pulled more cash out of U.S.-stock mutual funds than they put in.
The painful bear market of 2007-09 has left investors with a skewed view of U.S.-stock performance. In investor surveys conducted in early 2010, 2011 and 2012, at least 48% of respondents each year said the stock market had been down or flat in the preceding year. In fact, the Standard & Poor’s 500-stock index was up strongly in 2009 and 2010 and eked out a 2.1% return (including dividends) in 2011.
source: Wall Street Journal
The major indexes experienced modest losses on Monday despite a positive manufacturing index report, as investors focused more on uncertainty over European banking policy. On Tuesday the S&P 500 suffered its worst daily loss in three months after a Fed official stated that the recent QE3 bond-buying program would be ineffective at stimulating the economy. Sour sentiment also resulted from Caterpillar lowering its long-term profit growth outlook. On Wednesday stocks fell once again following a report that August new home sales fell against expectation. Thursday brought a break from the recent downturn, as the market rebounded markedly as positive economic news out of Spain and China lessened this week’s negative attitude among investors. The week, month, and quarter ended on Friday unceremoniously with another loss as investors fear that Spain’s credit rating might be downgraded to junk status.
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NBC’s Chris Hansen conducted an undercover investigation focused on the predatory sales tactics used in the sale of equity-indexed annuities to senior citizens.
Watch the video below or read the transcript to,
Prominent in the program is Annuity University which trains insurance agents. Annuity University has been sued for running a dishonest scheme to deceive, coerce, and frighten the elderly. Read more about Annuity University in this Wall Street Journal article.
Minnesota Attorney General Lori Swanson, who reviewed NBC’s footage, and who has filed several suits alleging fraud in the sale of annuities to seniors, tells Hansen: “…what is tragic about it is when those agents go into the seniors’ homes, it is literally the wolf among the lambs.”
“Treat’em like blind 12-year olds”
Commentary: Annuities are a suckers bet
Stocks took a break from the recent run up on Monday, as investors used a decline in steel demand as an excuse to sell. A decline in crude oil prices also weighed down the energy component of the major indexes. On Tuesday the markets were largely unchanged as an increase in home builder’s confidence was offset by Fed Ex’s announcement to cut its full-year earnings outlook. Despite some good news on Wednesday – existing house sales rose in August, and Japan will implement a bond-buying program to stimulate its economy – stocks were once again largely unchanged. On Thursday the major indexes finished mixed, barely reacting to a US jobless claims report that showed a larger than expected increase in new jobless claims. The market finished the week on Friday with a small loss on very high volume.
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The two greatest impacts on your retirement savings over time are starting early and saving consistently. Beyond that, how do you know if you’re on track to have enough set aside to retire comfortably? Fidelity Investments recently published convenient “rule of thumb” that provides convenient, age-based targets to help you gauge your progress.
What’s the end game look like?
If you’ve saved eight times your annual salary by your last year of work before retiring, you should have enough money to replace 85% of your annual income for a 25-year period, including social security.
Age-based targets for retirement savings. For example, at age 35 you should have saved one times your annual salary. By age 55 you should have 5 times your salary. Ultimately retire at age 67 with eight times your annual salary set aside in retirement savings.
Here are the key milestones for getting to 8x and beyond:
Recognize that this is a broad guide and each person’s requirements will vary by the specifics of their situation. Nonetheless, this provides a quick and easy reality check.
What if you check your actual retirement savings and you’re coming up short against these targets? Try to increase your retirement contributions to close the gap. Sit down with an investment advisor to review your investment portfolios and make sure they are optimized for success.
Age-based retirement savings targets for an individual making $100,000 per year.
Source:
Fidelity Outlines Age-Based Savings Guidelines to Help Workers Stay on Track for Retirement
Stocks backed off their multi-year highs on Monday, with no substantial economic news either positive or negative. On Tuesday the Dow earned back its Monday’s loss as some investors began banking on the idea that the Fed would introduce additional quantitative easing in the near future. The markets inched up a bit on Wednesday, once again setting a five year high for the Dow. On Thursday, the long-awaited quantitative easing was announced, with the Fed pledging to buy $40 billion in mortgage-backed securities per month. Such an action is expected to drive investors out of bonds and back into stocks. Stocks responded to the move by moving up well over a percent. The major indexes finished the week on Friday by tacking on additional gains as euphoria from the quantitative easing was still present. Once again, the Dow set a multi-year high.
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