Your Money

These Banks Have The Highest Fees For Travelers

John Gower — Wed, 19 Jun 2013 21:27:40 GMT

Over the next few months, countless Americans will take to the road or the sky for summer vacations. For most, the cost of a flight or hotel is of primary concern, but there other important travel costs that travelers may not take into consideration: bank fees. Making a withdrawal at an out of network ATM (one that’s not owned by the bank) often results in a fee, on top of whatever the machine itself might charge. For globetrotting Americans, the fee can be even higher at international ATMs. Even swiping a card to make a purchase in a foreign country typically results in a debit card foreign transaction fee up to 3% of the amount.

Not all checking accounts are equally fee-laden. To help consumers determine which banks might charge the most on their trip, NerdWallet compiled data on 4 different factors for personal checking accounts at 20 of the largest U.S. banks. These factors include:

Fees: NerdWallet analyzed out of network ATM fees, international ATM fees, and foreign transaction fees at each bank
Access: NerdWallet analyzed the number of branches that each bank operates in the top 10 U.S. states by domestic travel expenditures (CA, FL, TX, NY, IL, NV, PA, VA, GA, NJ)

Which banks have the highest fees for summer travelers?

While these banks are not necessarily poor options in general, some of their fees and branch availability may make it difficult for travelers to avoid extra costs.

1. M&T Bank

As a Buffalo, NY headquartered bank, M&T primarily serves customers across New York, Maryland, Pennsylvania, Virginia, and other east coast states. The bank’s out of network ATM fee is the highest NerdWallet measured, at $3.00 (which rises to $5.00 for international ATMs). M&T also charges a 3% foreign exchange fee. Finally, vacationers might find it difficult to find a branch at their destination, since there are a total of just 514 branches across the most traveled states. M&T does offer a checking account “add-on” that waives out of network ATM fees, but it will cost you an extra $4.95 per month.

2. Regions Bank

Regions is headquartered in Birmingham, AL and operates branches throughout the southeastern United States. The bank’s out of network ATM fee is above average for both domestic ($2.50) and international ($5.00) withdrawals. Like many of the other banks studied, they also levy a 3% foreign exchange fee on international travelers. Finally, with just 670 branches across top U.S. destinations, a Regions Bank location could be difficult to track down while on the road.

3. Citizens Bank

Citizens Bank, owned by British bank the Royal Bank of Scotland (RBS), is headquartered in Providence, RI and operates throughout most northeastern states as well as the Chicago, Detroit and Cleveland metro areas. Like M&T Bank, Citizens charges the most among the banks we measured for domestic out of network withdrawals ($3.00), but does not increase that fee for international withdrawals. They also charge the nearly ubiquitous 3% foreign transaction fee for transactions in a foreign currency. Finally, the bank had one of the lowest numbers of branches available in popular travel destination states, with just 230.

4. BB&T

BB&T serves customers in many parts of the southeastern United States and is headquartered in Winston-Salem, NC. Their $2.50 fee for using another bank’s ATM rises to $5.00 when outside the country, in which case travelers also face a 3% foreign exchange fee. Though BB&T’s branch network is slightly stronger in popular travel destinations (Florida, for example), their 930 locations still places below average among the 20 banks measured.

5. PNC Bank

PNC is headquartered in Pittsburgh, PA and operates branches across much of the eastern United States. The bank charges $2.50 for domestic out of network ATM withdrawals, $5.00 for those in international locations and a 3% foreign transaction fee, all of which are above average. However, PNC does best the other banks highlighted here by offering over 1,400 branches across popular travel destination states, which was the 4^th highest among the 20 banks studied.

How can consumers eliminate or reduce bank fees while traveling?

Just as some banks charge extra for services used often by travelers, other financial institutions are more lenient when it comes to fees. Some online checking accounts at banks like Charles Schwab and Capital One 360 don’t charge out of network ATM fees or foreign exchange fees.

Local institutions like credit unions and community banks may also be a good option, despite their limited geographic range. This is because many are part of surcharge-free ATM and branch networks like CO-OP, which offers thousands of free ATMs nationwide. Plus, when local banks and credit unions do charge an ATM or foreign exchange fee, they are typically lower than at the big banks.

Even big bank customers have some options to avoid or reduce bank fees while traveling. Bank of America participates in the Global ATM Alliance, which allows customers to withdraw from ATMs at partnering foreign banks such as Barclays and Deutshe Bank without incurring additional fees (though a 1% foreign exchange fee will still apply). Some other banks, such as M&T Bank and Union Bank offer monthly “add-ons” for their checking accounts, which will waive some or all out of network fees for a flat monthly rate of around $3-$5. Finally, TD bank is the only one of the 20 banks analyzed that charges no foreign transaction fee.

Finally, college students and seniors may be able to take advantage of reduced or waived ATM fees when they sign up for a particular checking account. For example, BB&T’s Student Checking account allows 4 free non-BB&T ATM transactions per month.

Full data table

Bank	Out of Network ATM Fee (Domestic)	Out of Network ATM Fee (Intl)	Foreign Transaction Fee	Branches in Top Travel Destinations	Overall Score
M&T Bank	$3.00	$5.00*	3%	514	2
Regions Bank	$2.50	$5.00	3%	670	16
Citizens Bank	$3.00	$3.00	3%	267	17
BB&T	$2.50	$5.00	3%	930	17
PNC Bank	$2.50	$5.00	3%	1,429	21
Comerica Bank	$2.00	$5.00	3%	253	25
Fifth Third Bank	$2.00	$5.00	3%	387	26
SunTrust Bank	$2.00	$5.00	3%	1,078	31
HSBC Bank USA	$2.50	$2.50	3%	286	34
Union Bank	$2.00	$5.00	2%	396	34
Wells Fargo	$2.50	$5.00	3%	3,825	38
U.S. Bank	$2.50	$2.50	3%	936	38
Bank of America	$2.00	$5.00	3%	3,460	47
Chase Bank	$2.00	$5.00	3%	3,616	49
KeyBank	$2.50	$2.50	1%	230	50
BMO Harris Bank	$2.00	$2.00	3%	256	50
BBVA Compass	$2.00**	$2.00**	3%^†	484	52
Capital One^‡	$2.00	$2.00	3%	596	53
Citibank	$2.00	$2.00	3%	963	55
TD Bank	$2.50	$2.50	N/A	791	62

*Greater of $5 or 3% of amount
**Fee is $1.75 in California
†Fee is 1% for ATM transactions, 3% for point-of-sale purchases
‡Data is for Capital One’s traditional bank accounts, rather than their online brand Capital One 360

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For Most People Dunkin Donuts' New Gluten-Free Menu Is A Total Waste Of Money

Robert Ferris — Wed, 19 Jun 2013 21:27:00 GMT

Dunkin Donuts is coming out with a new gluten-free menu, but 94% of its customers probably have no need for it.

Gluten-free products, which exclude any food made from wheat, rye, or barley, have taken off in recent years. Many swear that eliminating grains from their diets has helped them lose weight, think more clearly, and enjoy better overall health.

Experts estimate [PDF] that only 1% of Americans — about 3 million people — actually suffer from Celiac disease, the disorder that causes their immune systems to reject wheat. Another 6% more may suffer a from gluten sensitivity. But 18% of adults — more than twice that amount — now buy specially made gluten-free foods.

Though most people don't need to eat gluten-free, consumer research firm NPD Group found that 29% of Americans think they should cut gluten out of their diets.

Moreover, some new research is suggesting many people who think they have a gluten sensitivity actually do not.

Why are people eating gluten-free?

"It's the diet du jour," says Julie M. Jones, a professor of dietetics at St. Catherine's University in St. Paul, Minnesota, and an advisor to The Grain Foods Foundation. She also works with other scientists to develop gluten-free products.

A number of popular diets have recently advocated dropping wheat and other grains. Paleo dieters argue that grains are relatively recent additions to the human diet, and aren't as well suited to our digestive systems as animal meat, fruits, and vegetables. Other low-carb diets like the Atkins diet also advocate reducing grains to spur weight-loss.

"Basically these are low-carb diets, where wheat is the hook," Jones told Business Insider.

But is this smart?

While some people should avoid gluten for health reasons, the number so far is relatively small. On top of the 1% of Americans who have Celiac disease, just 0.5% more suffer from a wheat allergy, which is specific to that grain.

People who suffer from Celiac disease are often lacking crucial vitamins, especially B vitamins. It can be difficult to diagnose without a biopsy. Almost half of all adults and more than half of all children with the disease showed no symptoms of the disease at all, according to information published by the University of Chicago Medical Center.

The highest estimates suggest 6% of the U.S. population has some kind of trouble with gluten — which means 94% can tolerate gluten just fine and should think and plan carefully before redlining it from their diets. The biggest problem — and this goes for any diet — is that cutting out gluten could leave you severely deficient in several nutrients and fiber.

"The people who advocate low-carb diets say you can get fiber from fruits and vegetables, but, well, we aren't eating those either," Jones said.

The fiber problem

Americans already get only a fraction of the required amount of fiber — only 4% overall, and fewer than 1% of men between the ages of 14 and 50, get enough of it. Most people are way under the established guidelines of about 25 grams per day for women and almost 40 grams per day for men.

"Most people's average intake is 13 grams a day," Jones said. "The average gluten-free diet has only six grams per day." People on low-carb diets eat fruit and vegetables to gain all of their fiber, but grains and cereals provide more efficient forms of fiber than the fruit fiber pectin.

Ultimately, any weight lost on any of these diets is probably coming from a reduction in calories, rather than from the elimination of any one ingredient, Jones said.

People who do decide to drop wheat should look for other alternative whole grains, like whole grain sorghum, buckwheat, and quinoa.

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My Bipolar Disorder Wrecked My Finances

Sarah Freeman — Wed, 19 Jun 2013 20:57:19 GMT

Ten years ago I was a successful middle-aged professional with substantial savings and investments, an enviable real estate portfolio, and happily on track to my first million.

Today, I am a 51-year-old woman with little set aside for retirement, living paycheck to paycheck, and a very long way from financial independence.

Am I just another casualty of the global financial meltdown? No. My financial meltdown was very personal and localized. I call it my “manic money meltdown” and it was caused by my bipolar disorder.

Bipolar mania provides the perfect crucible for money troubles. Lately many people have become familiar with the concept of “the perfect storm” – a convergence of forces or circumstances that work together in the worst of all possible ways in order to magnify the intensity and impact of an already negative event. Undiagnosed and/or untreated bipolar mania creates the perfect storm for debt, overspending, ruined credit and financial chaos.

The symptoms of bipolar mania, when taken individually, can all be shown to create a predisposition for poor financial decisions. When several, or all, of these symptoms are combined, the likelihood of money problems compounds and amplifies. The disordered thinking of bipolar mania and irresponsible financial behavior share the same dark core. Wish fulfillment, selfishness, delusion, deceit, egomania, self-gratification, escapism – words often used to describe the psychic landscape of the financial profligate are strikingly similar to the experience of mania.

My Story

My own “manic money meltdown” was a combination of extravagant spending on clothes, luxury hotels and first-class international travel, time out of the workforce while I pursued irrational business and personal schemes with no earnings, and a ruinous divorce bought on by own crazy selfishness, infidelity and bizarre delusions.

Most people with bipolar disorder go many years before receiving an accurate diagnosis and effective treatment. One of the ironies of my situation was that I was seeing a clinical psychologist for weekly therapy all through the period when I was shopping compulsively, liquidating my assets, throwing away my career, booking round-the-world trips and destroying my marriage. However, bipolar disorder is still so little understood that an expert completely missed it.

It was only the following year, by which time I had fled my marriage, squandered a small fortune, and made the strange decision to pay for an expensive graduate program quite unrelated to my profession at a university on the other side of the world that I ended up seeing the college psychiatrist. We had several sessions where she diagnosed acute anxiety and began trying to find a helpful medication. My casual mention of some weekend furniture shopping (I spent thousands of dollars on exquisite Italian furniture for my run-down, very temporary student apartment) set off alarm bells and led to my bipolar diagnosis.

Finding the cause

Diagnosing bipolar disorder often involves a psychiatrist asking a patient if he or she has indulged in unrestrained buying sprees, made any foolish business investments or spent (or wishes to spend) significant amounts of money. However, it is important to understand that it is not only reckless financial behavior that is a classic hallmark of mania. ALL of the symptoms of bipolar mania are ingredients in the recipe for financial disaster.

For example, bipolar mania is often characterized by extreme grandiosity – the delusional belief that one is special, superior and entitled. It is a state of mind where there are no consequences and no limits. Spending in this state is like simultaneously winning $1 billion in the lottery and having only six months to live. Not only does money appear limitless but it seems there will never be any day of reckoning.

It is not just the grandiosity and impulsivity of bipolar disorder that can create money problems. During mania some people simply give away money or possessions. Others gamble. One man I know sold his Rolls Royce for only $20,000 and then lost every dime of it within 24 hours by playing poker.

Some people experience mania as a state of anger and paranoia and may lose their jobs or create expensive legal problems for themselves because they create so much chaos and conflict. Others spend large amounts, not on luxuries but on irrational purchases that make sense only when manic -- for example, maxing out a credit card to buy everyone you know a snake bite kit.

Drugs and alcohol can also empty bank accounts and cause substantial debts because substance abuse and bipolar disorder frequently occur together. Similarly, access to credit is actually very much like enabling a serious drug abuser because of the tendency for someone in a manic state to spend money with absolutely no ability to consider the consequences or significance of the debt.

Poor judgment can also be ruinous. Actress Patty Duke and writer Patricia Cornwall are two successful celebrities with bipolar disorder who have both lost large sums of money because of “business managers” no rational person would have ever engaged or trusted. For others, it can be a combination of factors. A friend of mine is constantly broke because of her bipolar husband. This man does not take his medication and cannot hold down a job. He spends his days drinking. Although it is only cheap beer, it is a constant, daily cash drain without him ever generating a cent of income. He is dripping his family into bankruptcy, one $2 Bud at a time. (Some people are disabled by bipolar disorder and genuinely cannot return to the workforce. Social Security disability payments are available in these circumstances.)

Living With Bipolar Disorder

Do I wish I still had six figures in my checking account? Sure! Do I miss the security of owning my own home free and clear? What do you think? Would I like to still have the luxury of passive income flowing in each month from my rental properties? Of course I would! However, there is one overriding positive that came out of my manic money meltdown. It was my crazy spending that led to a psychiatrist to finally understand what was really wrong with me.

In many ways the day I was told I probably had bipolar disorder was the best day of my life. The diagnosis shocked me but since then I have flourished with medication and therapy and have not had a serious episode of either mania or depression for eight years.

I also have a wonderful fiancé and we plan to marry this summer. We have been slowly combining our finances and recently bought a home together. How can my fiancé trust me with money? Why would anyone with a history of fiscal prudence and responsibility mesh their hard earned and carefully managed money with me – the ultimate financial train wreck?

One of the paradoxes of bipolar disorder is that it is episodic. In between bouts of either mania or depression, the person is “themselves.” It is possible during these periods of wellness and rationality to put in place safeguards to protect both the person with bipolar disorder and their family in the event of a serious mood swing.

In my home we have enjoyed a long period of stability and hope it continues. But we both know relapse is always a possibility. There are four specific tools we use together that give my fiancé and I peace of mind about our finances and everything else:

1. Daily Mood Charting
Every day I rate my mood, as well as making a few quick notes about sleep, diet and exercise. This way we can both see if I am starting to enter a period of being either unusually “up” or “down”, and also if I am missing sleep or slipping into the sort of poor lifestyle choices that tend to trigger an episode.

2. A Wellness Plan
This is a blueprint that describes my own personal signs of wellness, as well as my individual signature bipolar symptoms. It also describes the daily activities that support wellness, the typical red flags that show I am becoming a little manic or depressed, and the particular interventions that get me back on an even keel. I have also found that nutrition is extremely important and I have even written a bipolar diet book to share what I have learned with others.

3. A Treatment Contract
This is my written commitment to turn over all of my financial and business affairs to my fiancé if I ever experience a serious mood swing. It also includes a Power of Attorney. We have shared it with my doctor and psychiatrist and I have agreed to accept all and any of their treatment recommendations.

4. Transparency
We use Mint.com, a free web service that automatically tracks all bank accounts and even credit cards and investment accounts. The result is no secrets and no surprises. It means we can constantly fine-tune our budget and see exactly what we are both spending and saving.

Bipolar disorder is a serious illness. It cannot be cured but it can be managed. In fact, it is one of the most treatable of all mental illnesses. Most of the damage caused by bipolar disorder could be avoided with speedier diagnosis and adherence to treatment. Money problems are a common manifestation of bipolar disorder. Next time someone’s financial behavior strikes you as crazy or irrational, stop and look closely. Temporary insanity – in the form of bipolar mania – really may be the explanation.

More From Credit.com:
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I Haven't Even Arrived In Mobile, But I've Already Had A Taste of Southern Hospitality

Julie Zeveloff — Wed, 19 Jun 2013 20:29:50 GMT

I haven't even arrived in Mobile, Ala., yet, but I've already had a taste of "Southern hospitality."

For a girl from New Jersey, it's been a nice change!

I'll be the guest of mayoral candidate Sandy Stimpson, who invited me after I wrote a post calling Mobile the third most miserable city in America, based on Gallup data.

Since I wrote about my upcoming trip to Mobile earlier this week, I've received close to 300 emails welcoming me to the Gulf Coast and offering advice about the city.

I still don't know whether I'll find that Mobile isn't so miserable, after all. I've been warned it's pretty hot and humid this time of year.

But I'm looking forward to finding out. I'm still reading through all the advice I received from Mobilians, but here are some insights — good and bad —from email and comments on Business Insider:

The Food:

"The absolute best crab claws are at a little hole in the wall called The Lighthouse. It is located in Bayou La Batre and has no view. The crab claws make up for it. People will want you to dine on the Causeway (and yes they have great food too) but the best is a bit out of the way."
"For a cheeseburger rated best in Alabama by USA Today, go to Callaghan's. It's a great neighborhood bar that was also rated as one of the best bars in America by Esquire magazine. It's the local hangout, also called the unofficial 'town hall.' Great live music most nights too."
"Yes, everything will be fried so put your diet on hold while you're there. It's worth it and you can work it off later. ALWAYS order fried pickles whenever they're available. Trust me, you won't regret it."
"Mobile is home to some of the best seafood on the GC (Gulf Coast). The Beach House and The Original Oyster House are two of my favorites for seafood."

The Sights:

"While you are visiting Mobile please check out the 5 Rivers Delta park on the causeway and go kayaking in the delta. This and the many rivers in Alabama make river kayaking very pleasant."
"If you haven’t been aboard a battleship, don’t miss touring the USS Alabama. The school children of Alabama raised the money, by collecting coins, to help bring the USS Alabama to Mobile."
"Take a stroll or guided tour on foot through Bellingrath Gardens and home. It is truly breathtaking. Skip the boat ride here, though, it's long and not as informative as others."
"Mardi Gras in Mobile is smaller and a lot easier and safer than New Orleans' Mardi Gras. Mobile is where you want to bring your family for Mardi Gras... Of course everyone in Mobile loves to tell you that Mobile is the birthplace of Mardi Gras in the states, not New Orleans. You are a smart person if you never bring that fact up while living in New Orleans."

The Weather:

"It's a little unfortunate you'll be visiting during the summer — I'm sure you've been warned about Gulf Coast summers — but try not to let the heat and humidity hamper your enjoyment of the city! Just wear a lot of sunscreen, drink a lot of fluids (of the alcoholic variety particularly) and be in reach of some powerful AC."
"There really isn't much to do in Mobile if you aren't an outdoors person and then not in the summer! Too hot and buggy!"
"We are one of the rainiest cities in the world — consistently in top 3 in the USA."

The Rest:

"The best way to sum up Mobile is a family-friendly New Orleans. The history is similar, the architecture is similar, and the racial issues are similar. Mobile is still a very segregated city and that is where a large part of the problems there come from. The people can be a little backwards. However, there are a wide-range of people in Mobile. The food is fantastic and the art scene seems to be exploding. All in all, it is not a bad place to live, or it wasn’t when I left around 2007, but the economy is a little weak. That appears to be turning around. I would not call Mobile miserable so much as I would call it under-utilized. It could be much better."
"People here hate it when I tell the cold hard truth about Mobile. For many natives, it's a very special place because it's their home. They do not want to face the reality of extremely poor quality from education to medicine to career opportunities to diet to lack of healthy, organic food to lifestyle choices. Oh, and then there's violent crime. The business community devotes a lot of effort to constructing smokescreens and attempting to create illusions as a world view rather than making systemic changes."
"You've got to talk to folks down here about football: Pro — Saints; College — usually Alabama or Auburn; and high school — too many to mention."
"People who come here to visit agree, Mobile has some of the most wonderful people you'll ever meet. Even the Walmart near my house received the "friendliest Walmart in America award." I wasn't surprised, and I'm not even a Walmart fan."
"If you're not a God-fearing, Church-going conformist who's drunk the kool-aid of the Southern Bible Belt, or a party-hard Greek Life college student who enjoys trolling Dauphin Street on Friday and Saturday nights week after week, there's not a lot to do around here as a local."
"I love this town, but like most have had my moments of misery. That misery is usually related to the summer humidity, the traffic on big weekends, and the fact that you just can't 'hide' ... Literally. It's rare to go in a place and not know anyone there."
"I've lived in Mobile for most of my life and when I moved away I was absolutely blown away by how backwards Mobile is on race-relations compared to the rest of the world."
"I am 85, I've lived in India, France, England, Egypt and in California, Colorado and Alabama. I've lived in cities including London, San Francisco, New Delhi, Denver, Birmingham (UK), Bristol (UK), Nice (France), Colorado Springs and Port Said (Egypt). I married a lovely French girl, I speak two languages. My experience allows me true comment on Mobile city: Mobile is beautiful, has live oaks and idiotic traffic, too many very rich and poor, good seafood and mudbugs, Vietnamese restaurants, a few villains but also some of the nicest people I've ever met. I love it. So did my Colette, who died here."

Disclosure: A couple of months ago, I included Mobile, Alabama on a list of the "most miserable cities in America," based on Gallup data. Sandy Stimpson, a mayoral candidate in Mobile (#3 on the list) objected to my characterization, and offered to fly me down and show me how great the city really is. After a little prodding, I agreed to a visit. Stimpson is paying my travel expenses and arranging my travel in the city. I'm not planning to cover the mayoral race, but look forward to forming my own opinions about Mobile.

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Real People Fess Up To Their Biggest Money Mistakes

Laura Brothers and Mandi Woodruff — Wed, 19 Jun 2013 20:04:00 GMT

Getting your finances in order can sometimes feel like going on a grueling new diet.

There are some bad money habits we just can't seem to drop.

On a recent Reddit thread, candid consumers answered this question: "What's the biggest mistake you repeatedly made before you got your finances in order?"

Here are some of our favorite responses, along with tips on how to avoid them yourself.

1. "Went from a practically paid off new car to new car with $25,000 in debt."

The minute you drive off the lot, your shiny new car starts losing its value. Within a year, it shaves 30% of its resale value, and 50% by year three, according to Edmunds.com.

Our tip: We don't recommend picking up a $1,000 clunker on Craigslist. Instead, try to buy a relatively new car (1-3 years old) that doesn't have many miles on it and is well-maintained. And if you're looking to trade up, compare the cost benefit of trading your current car in for the newer model. When you see the difference in monthly payments, you may realize you don't need a new car – you just want one.

Reddit tip: "If you are going to drive it for many years, I don't see a new car as a poor financial decision. What will ultimately cost a person a lot of money is constantly changing cars due to taxes, fees etc."

2. "I could easily spend $20 on coffee [every] week."

Ditching your daily coffee habit won't exactly make you a millionaire (no matter what some experts say), but it can certainly put a few hundred bucks back in your pocket each year.

Our tip: We don't expect anyone to give up coffee cold turkey. Instead, ease into a "cafe lite" lifestyle. Brew your own coffee at home, and if you still miss that fancy $5 latte, invest in an espresso or cappuccino machine.

Reddit tip: "I bought at $50 gift card for Starbucks months ago. This way, I account for the cost once and on the rare occasion I go to Starbucks, I don't have to think about it."

3. "Ordering drinks while eating out."

Walking into a bar with a budget problem is like sending a diabetic into a Dunkin' Donuts. Temptation abounds.

Our tip: Happy hour, happy hour, happy hour. And if you must socialize on weekends or late nights, just have one drink, sip slowly, and order a nice fizzy seltzer water with lime for the rest of the evening. You won't feel weird not toting a drink that way.

Reddit tip: "What I do is go out to eat, have a water or iced tea, then when I get home I enjoy my beer."

See the rest of the story at Business Insider

Here Are The Most Affordable Cities To Buy A Home In The US

Divya Raghavan — Wed, 19 Jun 2013 20:03:00 GMT

Although mortgage rates are currently low, the nation’s home ownership rate is at 65.4%, the lowestit has been in 16 years. Homeownership is integral to the American Dream (polls show that it is important to 96% of Americans), however the recession led to reduced job security and lower salaries, pulling this dream out of reach for many Americans.

NerdWallet took a look at over 100 U.S. metro areas to determine where homeownership is feasible for the average consumer. By dividing the home sale price by the median household income in each city, we determined how expensive homes are in terms of salaries. In South Bend, the average home costs just 1.5 years of a household’s pre-tax income, while in Honolulu a home price equates to almost 9 years of pre-tax income. This is a simplistic, back-of-the-envelope measure that does not take into account local tax rates, mortgage rates, credit scores or the ability to make a down payment, but the numbers show the relative difference between cities in home affordability.

As evidenced in this chart, the difference between the 5 least affordable and most affordable cities to buy a home is striking:

For more information, check out our cost of living calculator.

Most Affordable Places to Buy a Home

Rank	Metropolitan Area	Home sale price	Median household income	Home price/income
1	South Bend-Mishawaka, IN	$67,600	$44,372	1.52
2	Lansing-E.Lansing, MI	$81,500	$48,524	1.68
3	Rockford, IL	$80,600	$47,183	1.71
4	Toledo, OH	$74,200	$43,418	1.71
5	Kankakee-Bradley, IL	$92,400	$48,208	1.92
6	Appleton, WI	$116,800	$57,874	2.02
7	Topeka, KS	$98,900	$48,421	2.04
8	Dayton, OH	$93,500	$45,765	2.04
9	Elmira, NY	$99,200	$48,046	2.06
10	Atlanta-Sandy Springs-Marietta, GA	$115,100	$55,280	2.08
11	Davenport-Moline-Rock Island, IA-IL	$103,200	$48,904	2.11
12	Saint Louis, MO-IL	$111,000	$52,388	2.12
13	Cleveland-Elyria-Mentor, OH	$101,000	$47,147	2.14
14	Gulfport-Biloxi, MS	$92,500	$42,351	2.18
15	Wichita, KS	$108,400	$49,458	2.19
16	Syracuse, NY	$114,700	$51,528	2.23
17	Akron, OH	$108,300	$48,395	2.24
18	Cincinnati-Middletown, OH-KY-IN	$121,000	$53,302	2.27
19	Rochester, NY	$118,100	$51,729	2.28
20	Springfield, IL	$121,700	$52,925	2.30

As a contrast, here are the least affordable places to buy a home.

Least Affordable Places to Buy a Home

Rank	Metropolitan Area	Home sale price	Median household income	Home price/income
1	Honolulu, HI	$625,800	$70,166	8.92
2	San Jose-Sunnyvale-Santa Clara, CA	$705,000	$86,278	8.17
3	San Francisco-Oakland-Fremont, CA	$593,890	$74,927	7.93
4	New York-Wayne-White Plains, NY-NJ	$432,800	$63,973	6.77
5	San Diego-Carlsbad-San Marcos, CA	$412,320	$61,247	6.73
6	Los Angeles-Long Beach-Santa Ana, CA	$345,540	$58,900	5.87
7	New York-Northern New Jersey-Long Island, NY-NJ-PA	$368,200	$63,973	5.76
8	Barnstable Town, MA	$307,900	$58,551	5.26
9	Seattle-Tacoma-Bellevue, WA	$312,600	$65,452	4.78
10	Miami-Fort Lauderdale-Miami Beach, FL	$219,900	$46,592	4.72
11	Boston-Cambridge-Quincy, MA-NH	$332,200	$70,454	4.72
12	Burlington-South Burlington, VT	$278,400	$60,229	4.62
13	Bridgeport-Stamford-Norwalk, CT	$360,100	$79,408	4.53
14	Portland-Vancouver-Beaverton, OR-WA	$246,500	$55,598	4.43
15	Denver-Aurora, CO	$261,200	$60,452	4.32
16	Sarasota-Bradenton-Venice, FL	$189,900	$46,519	4.08
17	Washington-Arlington-Alexandria, DC-VA-MD-WV	$348,700	$87,653	3.98
18	Riverside-San Bernardino-Ontario, CA	$216,720	$54,629	3.97
19	Atlantic City, NJ	$210,100	$53,288	3.94
20	Gainesville, FL	$157,700	$40,421	3.90

Data came from the National Association of Realtors and the U.S. Census

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How I Survived On A $30,000 Salary In The Most Expensive City In The World

Elizabeth Yin — Wed, 19 Jun 2013 19:50:51 GMT

Lately, there have been a lot of news articles talking about people who have lived comfortably on seemingly small amounts of money such as this journalist’s article on NYC living and this coverage of Mr. Money Mustache’s retirement at age 30.

A lot of people I know have been arguing that the people cited in these articles must live really uncomfortable lives, and I know a lot of entrepreneurs who have a hard time making ends meet even in a small suburb (such as Mountain View) let alone a big city.

Frankly, it’s pretty easy to live comfortably in a big city like Tokyo on less than $30,000 per year.

Here’s how I did it:

Background

I lived in Tokyo (supposedly the most expensive city in the world according to the Economics Intelligence Unit) right after college graduation from 2004-2005 for almost a year. All numbers in this post are amortized for 1 year of living. I actually did not optimize for saving or scrimping at ALL and yet accidentally saved a lot of money.

Breakdown of my expenses (per month)

$1000 housing + gas/water/electricity
$600 food + drinks
$50 cell phone
$40 one-time furnishings (divided by 12 months in a year)
$50 toiletries
$60 vacation (I took one $700 vacation while there)
$300 misc entertainment (books, cds, day trips)

= $2100 per month or $25,200 per year

Including taxes/medicare/social security, that comes out to a $30k per year salary. You might have some question marks about these numbers, so let’s dive in.

1) I lived close to work

When I moved to Tokyo, my goal was to optimize for happiness, not savings. Time and again, studies show that commutes make people miserable. In some cases, you actually know you’re miserable in your commute, because you are cursing at all the other people around you. But, at other times, commute-frustration is more subtle. It manifests itself in the frustration of having wasted 1-2 hours of your day that you don’t realize you could otherwise have.

Living close to work is a big part of my own happiness, I’ve found. So, when I got to Tokyo, I paid $1000 to live in a nice part of the heart of the city (in Meguro). I would take the train, ride my bike, or walk to work. (My company covered my train tickets so if I were really optimizing for savings, the right thing to have done would’ve been to live far away in a cheap place and commute in saving even more money).

My apartment was 5 years new and a few minutes walk from the train station. So why was my apartment so cheap? Well, it was only 300 square feet - just slightly bigger than my dorm room in college. I never threw parties there, but in big cities, people go out to party — why would you stay at home? When I was deciding on whether to get a bigger place, I knew that in the end I would not be spending most of my time at my apartment, because I would either be at work or out and that getting a bigger place wouldn’t increase my happiness. I also underestimated how much of a perk a small apartment could be: cleaning and tidying only took ten minutes each week!

2) I cooked a lot

My food/drink expenditures were really low, because I mostly cooked. The first month I was in Tokyo, I ate out A LOT. Every meal. And then I felt awful. Those bento boxes actually have a lot of grease. And even a sushi dinner can make you feel terrible, because many meals don’t have a lot of vegetables. So, I started to cook out of health reasons, which ended up saving me a lot of money. I spent about $100-200 per month on groceries and would cook up a storm of veggies and meats each Sunday that I would eat for lunch and dinner on the weekdays.

I went out every Friday and Saturday, and spent about $100 each weekend on eating out, drinking, karaoking. I had some friends who were bankers who would go out a lot more and spend a lot more money. I would often join them a bit later — such as after dinner or at the 2nd bar, because spending money on an extra 3 cocktails would not have made me feel happier or better about myself.

3) I bought furniture from rich ex-pats

This is a tip that I don’t read about at all on money-focused blogs. The best way to get good stuff is to buy them slightly used from rich people. Major cities are great for finding rich ex-pats who are selling stuff for cheap, because they are always trying to get rid of their stuff in a hurry. Heck, I was at a party at the US embassy once, and they were giving away kimonos worth thousands of dollars!

I used the Tokyo Metropolis to buy my TV, bed, washer/dryer, microwave, rice cooker, utensils — basically everything! No item cost me more than $50, and many items were free since people were in a hurry to leave. So I furnished my apartment for well under $500, which comes out to $40 per month. The nice thing about living in a rich area is that I was often close enough to pick up these items and carry them on the subway or get help with a drop-off.

I also made my own decorations. I printed photos of my friends and family and hung those on my walls. I bought material to make my own curtains for $20, and hung those using lots of paper clips and pins — they looked like real curtains.

The general tip here is to be resourceful. Don’t just blindly buy stuff from a department store.

4) My friend built me a bike for free

The other perk about living in a rich area is that rich people would often throw away nice things that were still functional. My friend Jason often found really nice mountain bikes worth thousands of dollars in people’s trash and would clean them up and add/change out a few parts. It was nice of him to give me one of his findings, and honestly, that was the best bike that I’m sure I will ever own!

Having a bike then made it easy to explore the city. Every park and event happening anywhere in the city was then easily accessible. One of the best investments for happiness, exploring, and finding very cool things.

5) I didn’t have a smart phone or internet at home

This is a bit ironic, since I run an internet company now. I had meant to get internet installed at my apartment but ended up spending so much time either at work or out in the city that I didn’t have time to wait for someone to install my internet at home! It turned out that I did not miss being connected for an extra 3 hours per day.

I also had a dumb phone, and frankly, I would revert back to a dumb phone again today if I didn’t have customers I need to keep up with on the weekends. When you have no car, you have no need for driving directions. Personal email can always wait and that’s about all I use a smart phone for.

This is how you save a lot of money to live comfortably in big cities:

Cook a lot - healthier and saves A LOT of $$
Buy used things from rich people. Ex-pats, in particular, give away lots of free, nice stuff
Bike everywhere - healthier, makes you feel better about yourself, and saves $$
Hang out with friends who spend the same amount of money as you and when you hang out with friends who spend more money, join them later
Get a small apartment in an ideal location

What would a larger salary get me?

By optimizing for my happiness, I ended up spending the equivalent of a $30k salary (post taxes, etc) even though I made more money than that. I found that when I went out to eat everyday, in the beginning, it was a special treat. But, then it became a habit — I wasn’t deriving more happiness from going out to eat more — it was becoming something that I just did. It was also way more unhealthy. I also tried to buy cool gadgets while in Japan, and at first, the extra gifts for myself made me feel excited, but after a while, I just got used to them. It was just more stuff that I had. I could’ve probably spent more money going on vacation, but I didn’t have enough vacation days to go for more than one trip that year, so I couldn’t have spent more in that category either.

In the end, there wasn’t anything else that I could’ve bought that would’ve made me feel happier. To be fair, if I had made $30k per year, I would’ve had 0 savings, and that would’ve been problematic in the long-run. But if the question is whether you can live comfortably on $30k in a big city without scrimping — definitely.

In the end, I found that what increased my happiness wasn’t actually material: meeting new people, spending time with friends, exploring new places in town, and seeing events and cultural activities. These are all things that make your life comfortable and happy and that money can’t buy.

This post originally appeared at Startup Adventures Abound.

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The Best Hotels Under $250 In 20 Big Cities Around The US

Jennifer Polland and Mandi Woodruff — Wed, 19 Jun 2013 19:26:12 GMT

When you're traveling for work, you may not have tons of free time to explore the city so you'll want to splurge on a nice hotel room on the company dime. But sometimes you're limited to a budget.

We found the best hotel rooms in America that cost under $250 per night. Whether they're small boutique hotels or big-city grand hotels, these properties offer comfort and style for a reasonable price.

ATLANTA: The Ellis Hotel ($108)

76 Peachtree Street NE, Atlanta

What you get: Deluxe King room

Amenities: Gym, free Wi-Fi

Don't skip over this charming boutique hotel in historic downtown Atlanta. The Ellis Hotel, located in the same building that was once destroyed during the Winecoff fire of 1946, recently underwent a $28 million renovation to bring it into the 21st century. All 127 rooms feature modern amenities and the in-house restaurant serves up farm-to-table cuisine that would please any traveling foodie.

BOSTON: The Liberty Hotel ($249)

215 Charles St., Boston, MA

What you get: Deluxe room

Hotel amenities: Gym, concierge, 5 restaurants and bars, free bike rentals, and free Wi-Fi

Formerly the Charles Street Jail, the Liberty Hotel has been transformed into a chic designer hotel which still pays tribute to its prison past.

Even the most basic rooms here, called deluxe rooms, come with luxe amenities like plush bathrobes, Molton Brown bath products, and Wi-Fi. Rates for the most basic room start at $249, but are often much higher.

CHARLOTTE: The Blake Hotel ($179)

555 South McDowell St., Charlotte

What you get: Standard 2 Double Beds

Amenities: Gym, indoor/outdoor pools, Wi-Fi (only free in lobby)

At more than 300 sq. ft each, standard rooms at Charlotte's Blake Hotel leave plenty of space to stretch out after a hard day. Each bed comes with a down comforter and is accented with modern leather furnishings, plus cool extras like the iPod dock in every room. The Blake is a no-brainer option for business travelers, given its proximity to the city's business district. Each of the hotel's 610 rooms were remodeled in April 2012.

See the rest of the story at Business Insider

How To Pack A Suit

Alana Kakoyiannis and Julie Zeveloff — Wed, 19 Jun 2013 18:50:00 GMT

It's every business traveler's nightmare: Flying into town for an important meeting and finding that your suit is wrinkled beyond repair.

One easy way to avoid creases is to wear your suit jacket on the plane instead of cramming it in your suitcase, said Eli Chess, managing partner at custom menswear maker Alabaster & Chess.

But if you dread the thought of wearing business attire for any longer than you have to, there are also a few tricks to minimizing wrinkles, even if you're packing in a carry-on suitcase.

In the video below, Chess shows us the right way to pack a suit for a business trip.

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4 Secrets To Flipping A House

Neal Frankle — Wed, 19 Jun 2013 16:40:00 GMT

Two mild-mannered school teachers taught me everything I know about flipping houses -- and not in a good way.

I met this couple in 2006. They were very nice people -- but extremely aggressive investors. They were buying and flipping property in Las Vegas using a third-party turnkey real estate investing company.

They made a ton of money at first. But they lost everything despite knowing better.

How did this happen?

While they made profits on each sale, they used that profit to fund larger and larger projects. This made sense to them at the time since real estate was appreciating so quickly. Rather than using their own money (of which they had none) for rehabbing the homes, they tapped an equity line loan that grew larger by the month.

Of course, when the real estate merry-go-round stopped in 2008, and that appreciation evaporated, they got stuck holding property that nobody wanted to buy or rent. And they were on the hook for a very large equity line that they couldn’t afford to pay. As a result, they lost the real estate empire they worked so hard to build.

While these people suffered a great deal, their loss illustrates some of the four hard and fast rules of house flipping that simply can’t be ignored:

1. You Must Understand Your Risk.

Obviously, as you take on more debt, your risk compounds. Only buy flip homes for cash. No mortgages. No equity lines. If you don’t have enough cash to swing these deals yourself, take on a silent partner who does have the cash and split the profits.

The problem with loans is that they are a fixed obligation you must service, no matter what. When the couple above couldn’t make the payments, they lost it all. But if you take on an equity partner, you don’t have to come up with any money until there is a profit on the sale.

Also, borrowing money takes time and costs money.Let’s say you plan on flipping two houses over the next 12 months. Further, assume you need $100,000 for each deal. It might take 30 days or more to finalize each loan and cost $2,000 in points or fees each time you take out the loan.

That means you’ll spend two months waiting and pay $4,000 in costs. Borrowing to invest in house flipping is costly.

And because of the time delays, it will be harder for you to compete with buyers who have the cash on hand. As a result you’ll end up with less attractive deals that cash buyers don’t want.

In essence, that makes borrowing to invest even more expensive.

2. You Must Understand Where The Profit Is.

When you flip homes, you must move quickly. Not only do you need to buy quickly, you need to sell the house fast -- and that means you must sell under-market.

If you wait for the buyer who is willing to pay top dollar, you’ll wait- a long time and increase your risk that the market may turn against you. You’ll also lose valuable time that could be used flipping other homes.

If your profit is $30,000 per deal and you flip three houses in a year, you pocket a sweet $90,000. But let’s say you hold out for more profits and you can only turn two houses in a year. Even though your profit might be $40,000 a deal, you still earn $10,000 less. Got it?

If you consider the implications, you’ll see that in order to sell a home under-market and still make a profit, the key is to buy it inexpensively.

That often means it’s a good idea to buy property that has been foreclosed on. You have to master your market and find good Realtors to work with.

3. This Doesn’t Work All The Time In All Markets.

Even though you profit when you buy the house, you want to flip property in an appreciating market. If you live in an area that isn’t appreciating, you might be better off doing this somewhere else.

And if home prices are dropping, you are playing Russian roulette by getting into this game no matter where you are. Just the same, you can’t predict when the market is going to turn.

To be on the safe side, make sure that you’ll be able to hold on to the home as a rental property for a while, if need be.

4. Rehabbing Works.

In order to make money in this business, you must understand what work a house really needs, what that’s going to cost and how that will impact your offer. That sets the stage for you to do all the work, sell the house under-market and still make a profit.

Your best bet is to buy real estate that needs cosmetic work that is inexpensive to perform yet makes the property much more attractive to buyers.

Pass on any projects that need structural repair. Hire a good contractor, and get him to inspect the property. Don’t buy homes that need bathroom or kitchen renovation unless they are super cheap. That work will cost you big bucks and take lots of time. Look for a simpler deal.

The Investing Answer: The key to making money flipping houses is to buy right and slash risk. You buy right when you understand your market and your repair plan. You cut risk by only using cash, never borrowing money and by completing the flip fast.

If you are interested in getting into this business, your next step is to figure out how much money you have (or can put your hands on using investors) without borrowing. Next, scope out the market that makes most sense and find good Realtors to work with. Take these steps first and then make sure you expertly understand the market and property rehab. At that point, you're ready to go.

This post was written by Neal Frankle. He is a Certified Financial Planner in Los Angeles, a real estate investor and the owner of www.WealthPilgrim.com and www.mcmha.org.

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Obamacare Hits A Major Snag Due To Delays

Ricardo Alonso-Zaldivar — Wed, 19 Jun 2013 16:31:25 GMT

WASHINGTON (AP) — There's no guarantee that President Barack Obama's health care law will launch smoothly and on time, congressional investigators say in the first in-depth independent look at its progress.

But in a report to be released Wednesday, the congressional Government Accountability Office also sees positive signs as the Oct. 1 deadline approaches for new health insurance markets called exchanges to open in each state — in many cases over the objections of Republican governors.

Additionally, the report discloses that the administration had spent nearly $400 million as of March to set up the infrastructure of a sprawling system involving major federal agencies, every state, hundreds of insurance companies, and millions of citizens, among them many individuals seeking coverage for the first time.

"Whether (the administration's) contingency planning will assure the timely and smooth implementation of the exchanges by Oct. 2013 cannot yet be determined," the report concluded. A copy was provided to The Associated Press.

The administration is taking the lead in setting up the markets in 34 states, the report said — a heavy lift unforeseen when the law was passed. The computerized clearinghouse for the entire system — a federal "data hub" designed to deliver real-time eligibility rulings — has only undergone initial testing. And states have yet to complete many of their assignments.

"Much progress has been made in establishing the regulatory framework and guidance required for this undertaking, and (the administration) is currently taking steps to implement key activities of the (exchanges)," the report said. "Nevertheless, much remains to be accomplished within a relatively short period of time."

Translation: most of the specs have been written, but the all wiring hasn't been laid, and what will happen when they flip the switch nobody really knows. And remember, Oct. 1 is less than four months away.

GAO also issued a similar assessment for small-business health insurance markets scheduled to open concurrently.

The study shows "this law isn't ready for prime time, and come October millions of Americans and small businesses are going to be the ones suffering the consequences," Sen. Orrin Hatch, R-Utah, said in a statement. Hatch is the ranking Republican on the Senate committee that oversees health care financing.

Health and Human Services Secretary Kathleen Sebelius has steadfastly maintained the new insurance markets will open on schedule in all 50 states and Washington, DC.

Middle-class people with no access to job-based coverage will be able to buy private insurance, in most cases with new tax credits to help pay premiums. Low-income people will be steered to public programs like Medicaid in states that opt to accept an expansion offered under the law. Coverage starts Jan. 1.

An estimated 7 million individuals are expected to sign up through the exchanges next year, while Medicaid rolls will grow by 9 million. Those numbers are projected to steadily increase as Americans get more familiar with the law and its benefits. Exchanges are supposed to deliver the same basic service, connecting consumers with new coverage, whether they're run by states or by the federal government.

Most people currently covered by employers are not expected to see major changes, although some companies with many low-wage workers may decide it's better for their bottom lines to drop their plans.

The GAO report did not address one of the major obstacles to the rollout of the health care law — entrenched opposition from Republicans in Congress and from many GOP state leaders.

Having failed to get the Supreme Court to strike down "Obamacare" last year, Republicans in Congress have kept trying to repeal it, managing to block administration requests for additional implementation funds. In the states — with some notable exceptions — Republican governors and legislatures have generally refused to set up state-run exchanges or expand Medicaid.

However, the report found that some states where the law has run into resistance also seem to be simultaneously trying to accommodate it. GAO said that of the 34 states in which the federal government is taking the lead in setting up the new markets, 15 are expected to carry out at least some functions of the exchanges. That could be a stepping stone to full state control later.

The report also included a breakdown of spending on the federal exchanges and the data hub, which the administration had not previously provided, despite ongoing requests by media organizations.

As of March, the administration had spent almost $394 million, mostly through payments to 55 different contractors. That figure does not include the salaries of hundreds of government officials dedicated to the massive project. That project is forever linked to Obama's legacy.

The largest single ledger item: $84 million for the federal exchange computer infrastructure, being designed and built by CGI Federal, Inc., a Virginia-based government contractor.

The contractor building the data hub, Maryland-based Quality Software Services, Inc., received $55 million.

Third on the contracting totem pole was Booz Allen Hamilton, which received nearly $38 million to provide technical assistance for enrollment and eligibility.

The report said the administration will need another $2 billion in the next fiscal year to establish and operate the federal exchanges. Of that, Congress would have to provide $1.5 billion, while user fees paid by insurers account for the remainder.

It's unclear if congressional Republicans will sign off on the funding.

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6 Places Where A Tattoo Will Buy You Discounts For Life

Jeff Somogyi — Wed, 19 Jun 2013 16:01:53 GMT

We recently asked our readers literally, how far they would travel to get a deal; now we're asking in a more figurative way. If you're the excitable type whose first reaction to either meaning of the question was:

"I'd go all the way for a deal! I will even permanently modify my body in an indelible way for savings!" and then you make some kind of primal noise indicating seriousness.... Well, firstly, let us say that such a reaction is a bit surprising.

Then, second, let us tip you off to six deals that are right up your alley, as each requires you to get a tattoo to redeem them!

Ecko Unlimited

Ecko's ongoing "Branded For Life" promotion gives anyone who inks one of the company's two logos on themselves a discount of 20% off for life. But before you head to your local shop with dreams of saving coin on some threads, note that this discount applies in-store only. So far, over 40 people have taken Ecko up on this promotion.

Melt

This small grilled cheese chain in Ohio bestows a 25% off discount for life to any customer who inscribes a permanent image of one of the store's three approved logo designs on her body. After a rough count of the images in their gallery, over 300 people have gotten in on this deal.

Rapid Realty NYC

If you work for this realtor in the New York City area and are willing to put its logo on your skin, you will be given a 15% pay raise. Normally one has to go through a whole year of pain at a job to get a raise! [*Rimshot*] Not surprisingly, more than 40 employees have chosen to get a Rapid Realty tat to get a fatter paycheck.

Rocket from the Crypt

In a 1992 interview in a Zine (which was like a blog, but before there was the Internet), rock frontman John "Speedo" Reis said that any fan who got a tattoo of his band's logo would get free entry to their live shows for life. While many people get questionable band tattoos simply because they like the artist, this offer includes at least a fringe benefit. Fourteen years later, Reis noted that over 3,000 people have gotten a Rocket from the Crypt tattoo ... which often results in poor ticket sales at their shows.

Casa Sanchez

Thinking no one would actually do it, San Francisco Mexican restaurant Casa Sanchez put up a joke sign in 1998 saying that any customer who came in with a tattoo of the eatery's logo would eat for free for life. Well, the restaurant miscalculated folks' humor and underestimated the lengths they would go for a free burrito: the company suffered losses of $5.8 million after just 50 people got the store's tat. Yet surprisingly in 2010, Casa Sanchez brought the promotion back!

Hot Doug's

This Chicago hot dog shop will serve up free dogs for life in exchange for putting its logo somewhere on your body. Unlike the other restaurants, it seems like Hot Doug's will let you even pick up items for friends:you don't have to get the Hot Doug tattoo, just be friends with someone who loves getting such random tattoos in general.

Are there any brands or restaurants out there that you would get a tattoo for if they gave you a discount or free stuff? Let us know in the comments section below!

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The Hidden Costs Of Getting Pregnant

Kimberly Palmer — Wed, 19 Jun 2013 15:44:00 GMT

In general, children don’t start costing their parents money until they’ve left the womb. After all, pregnant women usually can continue living their lives without paying huge sums for child care or diapers.

But pregnancy itself can also be quite costly, especially for women who find themselves unable to continue their jobs while expecting. Women in low-wage jobs are particularly at risk for this kind of financial hit.

That’s why a group of lawmakers has introduced the Pregnant Workers Fairness Act, which aims to prevent pregnant women from losing their jobs just because they need “reasonable job modifications,” such as being able to drink water or avoid standing for long periods.

A letter signed by dozens of groups supporting the act, including the American Civil Liberties Union and the National Organization for Women, explains that 3 in 4 women will be pregnant over the course of their working lives. “At some point in their pregnancies, some of these women – especially those in physically strenuous jobs – will face a conflict between their duties at work and the demands of pregnancy,” the letter states.

While the law already prohibits employers from discriminating against workers based on pregnancy or childbirth, they are not required to grant pregnant women much leeway when it comes to maintaining their health and the health of their babies. The bill’s supporters cite stories of a waitress not allowed to carry water bottles to stay hydrated and a truck driver put on unpaid leave because she could no longer lift heavy loads.

[Read: Why Children Are Getting More Expensive.]

When pregnant women are forced out of their jobs well before they give birth, the costs of parenthood, and motherhood in particular, skyrocket. Lost or diminished wages are often one of the biggest costs of having children. And the other costs, such as housing, clothing, education and food are rising all the time. According to the most recent numbers from the Agriculture Department, children born in 2011 will cost their parents a whopping $234,900 before they turn 18 – a 3.5 percent increase over those born 2010.

Childbirth itself is also becoming pricier, largely because the process is more medicalized. According to the nonprofit Childbirth Connection, the rate of cesarean sections has increased by 50 percent over the past 10 years. The average cost of a C-section is $27,866, compared to $18,329 for a vaginal birth, according to the organization. (While women with health insurance often see the bulk of those costs handled by their providers, their co-pays and deductibles tend to be higher with C-sections.)

[Read: Can I Afford a Baby?]

Uncomplicated births are also associated with lower newborn-related costs; Childbirth Connection reports that newborns born vaginally cost an average of $5,809, versus $11,193 for cesarean births. The nonprofit points out that proper prenatal care during pregnancy can help increase the chances of an uncomplicated, lower-cost birth.

With children already so expensive, parents need all the help they can get – and all the wages they can earn up to their due date. If minor modifications, such as being able to carry a water bottle or sit down while working a cash register, help a parent-to-be hold onto their job for longer, then it boosts the family’s overall financial situation.

The proposed law, which is based on the widely celebrated Americans with Disabilities Act, has already enjoyed successful trial runs under similar state laws in Alaska, California, Connecticut, Hawaii, Illinois, Louisiana, Maryland and Texas. Enabling women to work throughout their pregnancies can also help employers, since it can create more loyal employees and reduce turnover. A healthy pregnancy and birth can also make it easier for women to return to the workforce more quickly and be productive employees in the future. The law’s supporters point out that if women can avoid leaving the workforce while pregnant, they might be able to save up more leave for after the baby is born, which makes it easier to breastfeed, which can reduce infant illness (and future lost work days).

[Quiz: Are You Spending Too Much on Your Children?]

The bottom line is that the incredible cost of parenthood starts well before birth, but employers can help reduce some of those costs – and retain employees – by accommodating their pregnant workers. Those concessions need to be made for less than nine months, but they can help enhance the financial security of the new family for years to come.

This post originally appeared at U.S. News and World Report.

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New York Real Estate Is Hotter Than The Weather Right Now

Roland Li — Wed, 19 Jun 2013 15:00:37 GMT

As you've no doubt heard, New York's real estate market is sizzling, with buyers feeling the heat as low inventory constrains options and bidding wars are commonplace.

Here's how experts predict the market will play out this summer--and how you can prepare as a buyer or seller.

The summer 2013 market outlook

Inventory was near a 12-year low in the first quarter of 2013, says Jonathan Miller, president of appraisal firm Miller Samuel. And it's likely to stay that way.

Miller expects an active summer market with strong activity.

"I don't think we're going to get a lot of relief from any of the new development hitting the market," says Miller. New developments are targeted towards the "upper echelon" --which often means high net worth or foreign buyers who pay in all cash.

"It seems like it's pre-2008 all over again, where you've got 100 people coming to open houses and sometimes 10 or more offers coming in over the asking price," says real estate attorney Adam Stone of Regosin, Edwards, Stone & Feder. "From what I hear, it's very frustrating for buyers."

What if you're looking to sell?

Because demand is outpacing supply, asking prices are often increasing. In particular, "All of downtown is busy," says real estate agent Dan Bamberger of Citi Habitats.

Most sellers can expect strong demand, and usually don't need to be concerned about whether their home will sell if priced appropriately.

"The answer is going to be almost always yes, unless there's something strange about your property," says Stone.

Bamberger encourages sellers to be "flexible" when it comes to holding open houses and to have as many as possible to accommodate summer and weekend vacation schedules. That said, though traditionally weekend open houses can be slower than weekday open houses during the summer, he expects solid traffic both on weekends and weekdays this year because of high demand.

Perhaps the biggest question for sellers is whether they can get a good deal for their next apartment and ultimately come out ahead after selling for a profit.

Some of Stone's clients have decided to take temporary rentals.

"They've sold, and they're done, they've got their money. And they'll figure out what they can buy afterwards," he says. Being able to offer full cash bids in the future also gives them a big advantage over buyers who need financing.

An important turning point--which may come within the next few months--will be if prices begin leveling off, which could encourage more sellers decide to list their units and help increase supply.

"I expect at some point in time that there will be some new psychology change: We better sell now or prices will go down," says Bamberger.

Generally speaking, sellers should look for an all-cash buyer or a buyer willing to waive mortgage the mortgage contingency in order to avoid any potential financing wrinkles.

If you accept an offer from a buyer who needs financing, bear in mind that in a rising market like this one--and especially in a bidding war situation--there's a bigger possibility that your apartment will appraise too low. So if you do agree to a mortgage contingency, consider a reduced contingency clause.

"You and your buyer agree that if the appraisal comes in too low for the amount of the loan, the buyer will make up the difference in cash and accept a lower loan amount from the lender," says Stone, the attorney. "For instance, instead of the bank lending 80% of the sales price, it will lend 80% of the appraised value. If you have this limited appraisal contingency and the appraisal comes in $50,000 lower than the sales price, the buyer has to put in $10,000 more cash instead of having the right to cancel the contract."

How to prepare as a buyer

Besides a willingness to go above list price in many cases, buyers who are on the hunt this summer need to have strong financial credentials, says Miller: "It's all about your ability to close."

While cash offers are still expected to hold sway this summer, if you need financing, get yourself prequalified first--a quick process that can usually be completed online. You'll submit a standard uniform residential loan qualification form and details like income, assets and a credit report, says Robbie Gendels, a senior loan officer of National Cooperative Bank in Manhattan.

Buyers who can put up a 20 percent downpayment and have a credit score of at least 680 will have the best chance of getting a mortgage, says Gendels, noting that employees with regular salaries tend to have an advantage over those who are self-employed.

To compete against all-cash offers, you may need to waive your mortgage contingency (or agree to a reduced contingency as described above), as well as abandon hope of negotiating a funding contingency, which would protect you if the bank decides not to lend for reasons having nothing to do with you personally. The risk of the latter can be mitgated by asking your lender to pre-approve the building too, says Gendels of National Cooperative Bank.

Also important during the summer months: Get a lawyer who is "here, available and can move quickly," says Stone.

And if you are a buyer battling it out in a bidding war...

Thanks to the strong sellers' market, more and more buyers may find themselves embroiled in bidding wars. Here are some tips for coming out on top:

Make an all cash offer if you can. If you can’t, and you feel comfortable that you’ll be approved for a mortgage, waive any financing contingencies. (As noted above, to get comfortable that the building itself will be approved by your lender, ask your lender to pre-approve the building before you sign the contract.)
Don't be afraid to show interest. Sellers will often think favorably about someone who's passionate about their apartment. Playing it too cool may be underwhelming for a seller.
Stay in touch with the listings broker to find out things like how long it'll take the seller to accept an offer, how many rounds of bidding there will be and whether anyone's offered all cash.
Try to accommodate the seller. If they want to close quickly, let them. Or do they want to stay in the apartment longer? Sure.
Put a clear deadline on your offer.The seller may be more compelled to take your offer, and at least you'll know the status sooner rather than later.
Apply a personal touch. Some sellers are swayed by a personal letter explaining their situation. Obviously this is something that'll affect long-time owners and not developers.

Finally, even if a seller accepts your offer, prepare for the possibility that you are not the only "winner"--and, whether you know it or not, whoever gets a signed contract first will win.

Move through the due diligence and contract negotiation phase as quickly as you can, and don't get hung up on any issues that are trivial in the grand scheme of things, says Stone.

If you suspect you're in a race against other buyers, make sure your attorney knows that time is of the essence, and come up with ways to improve your offer.

These may include raising your bid, raising your downpayment (to show you're serious), waiving a mortgage contingency, accepting the seller's demand for a specific closing date, or even allowing the seller to rent back for a short period of time if they need to, says Stone.

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Shrewd Brides Never Miss This Final Step Before The Big Day

Jay MacDonald — Wed, 19 Jun 2013 15:00:00 GMT

Wedding day disasters come in all sizes, from lost rings and ruined bridal gowns to slip-and-fall and alcohol-related personal injuries to unpredictable weather events to plain old cold feet that can shut down a once-in-a-lifetime celebration faster than you can say "I do."

Fortunately, wedding insurance can help you absorb the financial hit should your big day suddenly veer off course.

Policies cost as little as $95. Couples can insure against financial losses due to:

-Wedding cancellation or postponement because of severe weather, sudden illness within the wedding party, or unforeseen military deployment of the bride or groom.

-Loss or theft of wedding attire, gifts, jewelry and luggage.

-Mishaps or no-shows involving the florist, caterer, limousine service, photographer/videographer, disc jockey/band or officiant (the person officiating the ceremony).

-Sudden closure or unavailability of the wedding venue.

-Personal liability should guests fall ill, become injured or cause property damage. (There's typically "host liquor liability" in case a guest becomes inebriated at the wedding and causes an auto accident or similar harm.)

Help with 'knotty' problems

Wedding insurance can't recreate that special day exactly, but it can reimburse you for the nonrefundable deposits you paid to vendors, pay for reassembling the wedding party with all the trappings for a photo/video reshoot and provide deposit money to line up new vendors for your rescheduled nuptials.

It wasn't always easy or affordable to insure a wedding. Among the three major wedding underwriters, Fireman's Fund started offering wedding coverage only in the 1990s, Aon entered in 1999, and Travelers followed in 2007.

But interest in wedding insurance grew as the price of U.S. weddings rose. In 2012, the average U.S. wedding cost $25,656, according to The Wedding Report, a research firm that tracks nuptial numbers. Reality TV has helped popularize wedding insurance, too, thanks to the matrimonial mishaps sometimes portrayed on bridal shows such as "Bridezillas."

'I do -- want insurance'

"Wedding insurance has definitely become more popular," says Fireman's Fund spokeswoman Janet Ruiz. "People are planning further out for weddings, some as long as a year ahead, so they're aware of making and protecting their deposits."

Chantal Cyr, vice president for Travelers' wedding insurance unit, agrees. "It's a significant investment -- the cost of a new car," she says. "You'd never buy a new car without insuring it."

In fact, Cyr says some couples today may have no choice but to insure their wedding.

"We've seen a growing demand from venues asking the bride and groom to buy wedding insurance," she says. "Venues would have their own (coverage), but it may be subject to a deductible and potentially a rate increase. They want the bride and groom to carry that coverage."

What the policies can cover

Today, all three major providers of wedding cancellation and liability coverage offer the convenience of buying a policy online: Fireman's Fund at Wedsure.com, Aon at WedSafe.com and Travelers at ProtectMyWedding.com. Couples can purchase coverage as early as two years before and as late as the day of the wedding, depending on the carrier.

Most policies cover the entire wedding event, from the rehearsal dinner through the wedding ceremony and reception. Policies typically extend to destination weddings in Canada, the Caribbean, Great Britain, Mexico and U.S. territories, though specific locales vary somewhat by insurer.

Each major carrier offers a signature feature in the wedding niche. Travelers policies have no deductible. Aon offers the highest liability limit at $5 million. Fireman's Fund is the only insurer to offer "change of heart" coverage, though it compensates only the wedding's financier (i.e., mom and dad), not the couple, and the cancellation due to a bride's or groom's cold feet must be made at least a year before the festivities.

Don't walk down the aisle without it

Not long ago, Master Bridal Consultant Mark Kingsdorf of The Queen of Hearts Wedding Consultants in Philadelphia would never have suggested wedding insurance to his clients for fear they might take his advice the wrong way.

"It's a little like asking, 'Have you guys thought about a prenup?'" he chuckles. "It sort of gives couples the creeps."

Today, part of his job involves collecting certificates of insurance from each of the vendors that will be on-site for the big day.

And Kingsdorf strongly recommends that all couples obtain liability coverage, either as an event rider on their (or their parents') home insurance, or through a wedding insurer.

"Even when you know 'almost everybody' there, there's the date du jour of that girl you went to school with who gets drunk at your party and kills somebody driving home," he says. "By the same token, if you're hosting a reception at the Pennsylvania Museum and somebody gets drunk and falls into a sarcophagus, you pray that you've got that $1 million liability insurance."

For those whose wedding budget is close to or exceeds the $25,000 national average, Kingsdorf says wedding insurance is a classic no-brainer.

"A couple hundred bucks here is a really minimal investment to make sure things go well," he says.

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The 25 Most Underrated Colleges In America

Jennifer Polland, Max Rosenberg and Walter Hickey — Wed, 19 Jun 2013 14:49:00 GMT

Future income isn't the only factor that should determine college choice, but it may be the most important one.

So how good are the famous college rankings from U.S. News & World Report at predicting future income? It turns out there are some majorly underrated and overrated schools.

We plotted U.S. News' ranking of the best colleges against PayScale's mid-career salary rank to identify the outliers (read the full methodology here).

University of Massachusetts Lowell emerged as the most underrated school, heading a list of state schools and lesser-known tech schools.

#25 Widener University

Ranked #378 in our composite of U.S. News's college and university lists.

Ranked #319 in PayScale's mid-career salary list.

(As you can see, Widener ranks much better on salary than it does in the standard college ranking.)

Widener is a private school with 6,000 students on a 108-acre campus just outside of Philadelphia. Almost 30% of the students major in business and 22% major in health professions, which may explain why graduated have such high mid-career salaries at an average of $78,200.

Note: Although U.S. News ranks colleges and universities separately, we combined these lists by doubling the ranking. Read the full methodology here.

#24 Northern Illinois University

Ranked #378 in our composite of U.S. News's college and university lists.

Ranked #314 in PayScale's mid-career salary list.

Located in DeKalb, IL, Northern Illinois is a large public school that's comprised of seven colleges offering degrees in a variety of subjects, including speech, psychology, nursing, and accounting. The average mid-career salary is $78,300.

Note: Although U.S. News ranks colleges and universities separately, we combined these lists by doubling the ranking. Read the full methodology here.

#23 University of San Francisco

Ranked #212 in our composite of U.S. News's college and university lists.

Ranked #82 in PayScale's mid-career salary list.

The University of San Francisco is a private Jesuit university that was founded in 1855. Even though it's not ranked very high at #106 on US News' list, students are drawn here for its great location right near the Golden Gate Bridge and for its small class sizes. The average mid-career salary is high at $92,400.

Note: Although U.S. News ranks colleges and universities separately, we combined these lists by doubling the ranking. Read the full methodology here.

See the rest of the story at Business Insider

There Is No Right Time To Give A Kid A Credit Card

Richard Barrington — Wed, 19 Jun 2013 14:11:00 GMT

Kids and credit cards.

Does that seem like a dangerous mix to you, or simply a normal part of the modern world?

Parents have very different views on the subject.

An exclusive survey of 500 parents with children under the age of 12, conducted for CardRatings.com by Op4G, found that some parents believe it's best to get children in the habit of using credit while they are young, while others think it's a threshold their kids shouldn't cross until they are all grown up.

Let's look at both sides of that opinion gap, along with some of the key lessons that should go along with introducing your children to using credit.

Kids, we need to talk…

The survey shows that most parents have taught their kids about credit, but just barely. Of survey respondents, 55 percent said they had explained to their kids how credit cards work, but 45 percent said they have not.

Face it -- by the time they are tall enough to see over a shop counter, your kids have probably seen you use a credit card hundreds of times. It can't hurt to explain a little background behind what you are doing.

When is the right time to let your child start using credit?

Naturally, talking about credit cards is a precursor to letting an older child use one, but parents have a wide range of opinions on when this should happen.

Only 7 percent of survey respondents think it's OK for a pre-teen to have a credit card, while at the other extreme 19 percent don't ever plan to give their child a credit card. The most popular response was that college is the right time, with 43 percent of parents saying that's when they would let their kids have access to credit. Another 30 percent think high school is the right time.

Dads seem to be an easier sell

Now, if you are a kid looking to broach this subject with your parents, you may want to wait until your father gets home. The survey suggests that dads are a softer bunch than moms when it comes to giving kids access to credit. Over a quarter of moms -- 27 percent -- don't ever plan on letting their kids have access to a credit card, whereas just 11 percent of dads feel that way.

Seven points to teach your child about using credit properly

Every child is different, so the right time to entrust your children with credit cards will depend on their intellect and their emotional maturity. How will you know when the time is right? Consider your child ready when you've had a chance to discuss the following and you believe the lessons have been understood:

The concept behind how using credit cards. Explain that credit cards can be a free resource if you pay off your balances in full every month, but they can also be a very expensive way of borrowing money if you don't.
How to compare credit card rates. Young people have grown up with unprecedented information resources. Show them how to use these resources to compare rates and other credit card terms.
Payment tips. Take kids through your bill-paying process so they can see how you keep up with your responsibilities, and explain why making only the minimum credit card payment will greatly prolong their indebtedness.
The consequences of too much debt. A survey by Fidelity found that the class of 2013 will graduate college with an average of $35,200 in debt, including loans and credit card debt. Explain that starting their careers in this kind of a hole will require years of financial sacrifices just to break even.
Credit scores and their importance. Your children should understand that besides the burden of having to repay debts, too much borrowing can restrict their access to credit, insurance and even some jobs if it damages their credit scores.
Security procedures. Especially when living in a communal environment like a college dorm or a shared apartment, credit cards should be kept in a secure location and never lent out. Also, credit card numbers should only be provided on reputable websites, which use proper encryption procedures.
Budgeting. No one should borrow money without a plan for repaying it, so teaching budgeting should go hand-in-hand with allowing someone to use credit.

That may seem like a great deal of ground to cover, but after all, you wouldn't let your child drive a car without a thorough series of lessons. Like driving, using credit is a responsibility that is part of becoming an adult, so you should take care that your children are ready to handle that responsibility.

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5 Must-Know Credit Card Tips For New Graduates

Rob Berger — Wed, 19 Jun 2013 13:49:35 GMT

If you’re a recent college graduate, you’re probably concerned about all things financial – from finding a full-time job to renting a home to saving for retirement to dealing with student loan debt.

And in the midst of all that, you’ll have to decide how to use credit cards to better your own financial future.

Responsible credit card use can be part of a healthy overall financial plan. Credit cards, after all, can help you build your credit so that you can someday take out a loan for a larger purchase – like a home or car – and they can even net you some great rewards.

But before you start swiping that plastic, consider these five credit card tips just for new graduates:

1. Pay down debts you racked up in college

Over the past two years, the number of college students using credit cards has declined from 42 percent (2010) to 35 percent (2012), according to a report by Sallie Mae. This data, however, mask the fact that credit card usage increases as students near graduation. The result is that 60 percent of graduating seniors used plastic. For those that graduate with a credit card balance, focus on paying that balance down to $0 as soon as you can. This is a good idea for two reasons.

For one, paying high interest rates on a credit card balance doesn’t make much sense. After all, you don’t want to be paying for your school books or pizza outings for years to come. Second, paying down your credit card balance is a smart credit move. The lower the balance you carry compared with your credit limit, the healthier your credit score.

2. Create a budget, and stick to it

The best way to keep from racking up lots of high-interest credit card debt is to make and stick to a budget. While the majority of college graduates are able to find a job, many are still unemployed or underemployed. In this shaky job market, learning how to live on a budget is an essential skill.

It’s tempting, right now, to live beyond your means, charging all the excess spending to your credit card while you search for a full-time job. The key to avoiding overspending is to create a budget that lets you live within your current means – even if that means crashing in your parents’ basement for a few months.

3. Leave it at home

If you’re struggling to live on a tight budget while you job hunt, having a credit card with you all the time could mean extra temptation. Sure, a latte, pair of jeans, or dinner out with friends may not cost much now. But habitually charging your credit card so that you can overspend will run you into trouble eventually.

So if you do have trouble being disciplined with how you use your credit card, just leave it at home. That way, you won’t have it on you when friends ask if you want to go out for drinks that you know you can’t afford.

4. Consider using credit for set expenses

With all this said, don’t avoid using your credit card altogether. Consistently using and paying down a credit card is actually one of the best and fastest ways to build a good credit history. You’ll want that history behind you when you go to take out a car loan or a mortgage in the future.

To stay disciplined with your credit card use, consider using it for set expenses that you know you’ll pay every month. Some people use a credit card just for gas, and others use it to pay things like rent and insurance payments. As long as you pay off the total balance on time each month, you won’t pay any interest, and you’ll build an excellent credit history.

5. Check out the rewards available to you

Maybe the only credit card you have is still one geared for college students. This was a great fit for you in college, but you may be able to get a better credit card now. Many student cards are formulated to help students build credit, but don’t necessarily come with good rewards.

Now is the time to check out what credit cards are available to you, and to find one or two that have desirable rewards. Whether you drive a lot and prefer a cash back gas rewards card or you want to travel with travel rewards, there’s a good fit for you out there. Just do your research, and make sure you check out all the fine print before signing up for a new credit card.

Living within your means, consistently paying down your credit card, and using the right card for your needs will help you build better credit for the future. This means you’ll eventually have access to even better credit cards, and will also be able to get the money you need to buy a home or a car because you’ve built an excellent credit history right after graduation.

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CHART OF THE DAY: The Cost Of Sitting On Cash

Sam Ro — Wed, 19 Jun 2013 12:14:00 GMT

When investors get scared and they have nowhere to hide, they move their money to cash.

Cash is arguably a great place to store your wealth briefly until you make your next investing move.

However, cash itself is not really an investment.

"The one thing I will tell you is the worst investment you can have is cash," says Warren Buffett.

Why?

Inflation.

"Perhaps it is self-evident, but it is worth reminding ourselves that inflation is the major downside of holding cash," write the folks at BlackRock. "Even in the low-inflation environments in much of the developed world, returns on cash have not kept up with consumer price increases. So the value of cash diminishes in real, or inflation-adjusted, terms over time."

From BlackRock:

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The Global 'Super-Rich' Picked Up One Million More Members Last Year

Heather Stewart — Tue, 18 Jun 2013 23:47:08 GMT

A million more people joined the ranks of the global super-rich last year, almost a third of them in Asia, as soaring stock markets helped bolster the fortunes of wealthy investors.

The number of "high net worth individuals" climbed by 10% in 2012, taking the total worldwide to 12m, according to research by Royal Bank of Canada and consultancy Capgemini.

Between them, these twelve million people owned assets worth $46.2tn (£29.5tn) – more than three times the entire annual output from the US economy, and a 10% increase on 2011.

A high net worth individual is defined as anyone with $1m (£641,000) or more in "investable assets". The definition excludes the value of a main home and of any "consumer durables" such as cars.

World markets were volatile in the first half of 2012, as the eurozone crisis deepened; but after ECB president Mario Draghi promised to do "whatever it takes" to protect the single currency in July, and the Federal Reserve unleashed a drastic third round of quantitative easing in September, share prices recovered strongly, boosting the wealth of those with investments.

The findings are likely to increase concerns that the benefits of central banks' radical policies to rekindle economic growth have accrued overwhelmingly to those at the top of society, while unemployment remains stubbornly high in many countries and incomes have been under severe pressure.

Britain is home to the fifth-largest group of super-wealthy individuals, according to the report, with 465,000 super-rich individuals, up from 441,000 in 2011.

The wealth report came as the latest UK inflation figures showed that with the consumer price index running at 2.7% in May wages for average British workers have now failed to keep up with prices for more than three years.

Frances O'Grady, general secretary of the TUC, said, "economic stagnation has caused incomes to fall for most ordinary families but the wealth of the super-rich just keeps on growing. Unless this inequality is tackled Britain could experience a pretty joyless recovery, with the majority of the population seeing little or no benefit when economic growth returns."

The US regained its place at the top of the league table in the report, as the home to 3.73m high net worth individuals, up by more than 11.5% on 2011, as the recovering property market helped repair the damage to wealthy investors' housing portfolios inflicted by the downturn of the past five years.

The Asia-Pacific region was just behind the US, with a population of 3.68m super-rich investors – up by more than 9% on the year.

Europe, where the economy of the single currency zone has now been in recession for 18 months, was home to 3.4m high net worth individuals, but saw a smaller rise in their number, of 7.5%, in 2012.

The researchers also sub-divide the millionaires according to their wealth. There was an increase of 11% in 2012 in the number of people classified as "ultra high net worth individuals", the creme de la creme of the super-rich. These 110,000 people are worth $30m or more, and hold assets worth more than $16tn between them.

A middle group of just over a million people, the "mid-tier millionaires", held $10tn-worth of assets between them; and a much larger group of 10.8m people, which the report refers to as the "millionaires next door", held assets worth $1m-$3m.

The data also underlines the stark geographical divide in the distribution of wealth across the world, with just 140,000 of the 12m super-rich living across the entire continent of Africa. That was an increase of almost 10% from 2011; but still fewer than in Italy, Australia or Brazil.

RBC and Capgemini's analysts forecast that the super-rich will continue getting richer, with the total wealth held by this group expected to expand by 6.5% a year over the next three years.

The super-rich emerge from the survey conducted as part of the research as a relatively conservative group. They managed their assets cautiously in 2012, while fewer than half of them said they trusted financial markets; and fewer than 40% trusted regulators.

The authors said the super-rich respondents to the survey, "exhibited a clear bias toward safety and wealth preservation, allocating nearly 30% of their financial wealth into cash and deposits." This careful approach applied to millionaires of, "all ages and wealth levels, suggesting that the overall lower level of trust in the financial markets may be playing a role."

This article originally appeared on guardian.co.uk

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Investors Are Falling Out Of Love With Online Brokerage Firms

Mandi Woodruff — Tue, 18 Jun 2013 22:02:00 GMT

Investors seem to fall a little bit less in love with Internet brokerage firms with each passing year.

Overall investor satisfaction with self-directed investment firms dropped 16 points from 2012 in the latest J.D. Power & Associates 2013 U.S. Self-Directed Investor Satisfaction StudySM.

The study measures how happy investors are with not only their portfolio performance, but also their interaction with the brokerage, trading fees, account offerings, information resources and problem resolution.

Scottrade and Charles Schwab topped this year's list, with 810 and 797 points out of 1,000, respectively. Vanguard and T. Rowe Price were hot on their heels in the 790 range.

Three notable firms that scored well below the national satisfaction rating were Wells Trade, Merrill Edge, and Sharebuilder from Capital One.

Why were investors so underwhelmed this time around?

All the bells and whistles of e-brokerages can't replace the value of communication, which is where most firms fall short.

"Although investment firms are offering more online tools and information for self-directed investors in 2013, the additional content and capabilities may actually make it more difficult to access the functions investors are seeking if a website is not easy to navigate and communication is not clear," the study says.

Just one-third of firms actually contact their clients two or more times to keep them up to speed on services and products, down from 39% in 2012.

But it's more than just communication. Investors are more confused about fee structure than ever before, with only 35% saying they understand fees, versus last year's 39%.

"Investment firms miss an important opportunity to keep self-directed investors informed about fees, investor tools and other product offerings by not communicating in the manner and frequency that investors prefer," said Craig Martin, director of the wealth management practice at J.D. Power. "Firms need to know how their investors would like to be notified — whether it occurs via email, phone or other means. It's important to contact investors proactively and at the appropriate frequency based on investor preference."

Here are the top 10:

Here's the key question you should ask before signing up for an online brokerage: How often do I plan on trading?

If you're an active trader (not that we recommend this approach for individuals), you'll have to really watch your trading fees. Some accounts charge anywhere from $5 to $200 per trade, depending on the extent of services you're looking for.

In reality, the vast majority of online brokerage investors average only two trades a month, according to Lyons. If you're part of that "buy and hold" club (kudos to you), you might be better off taking your investments elsewhere.

There are other hidden fees to consider as well. When Kiplinger rated 10 prominent online brokerage firms last year, it found Just2Trade was seemingly cheap at first glance, at $2.50 per transaction. But it charged a whopping $50 just to transfer your IRA to another firm, plus $35 to simply hold your IRA for you.

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11 Things You Shouldn't Feel Guilty For Buying

Jeff Somogyi — Tue, 18 Jun 2013 20:30:00 GMT

National Splurge Day was invented in 1994 by Adrienne Sioux Koopersmith, who calls herself "America's premier eventologist," and it occurs every June 18, whether you know it or not. You might be skeptical about it, but if enough people believe in it, perhaps it can be made to live, just like Tinkerbell!

However, we must admit that the idea of wanton spending sends a shiver down our frugal, money-saving spines. But maybe, just maybe, we can spin this faux-liday into something that fits both the urge to splurgeand the cravings for savings!

Therefore, we've put together a list of items that, despite your inherent deal-hunting nature, you should feel OK spending more money on. (Of course, you should still be looking for a deal on these higher-quality options; this is dealnews, after all!) Now as Tom Haverford would say, go on and "TREAT YO' SELF!

The Aeron Chair by Herman Miller

Aeron chairs have won endless praise for their design and ergonomics, but that praise doesn't come cheap.

Starting at $679, these seats are way more expensive than the ones you'll find at Office Depot, OfficeMax, and Staples. However, when you're sitting in a chair for at least 40 hours a week, shouldn't you get something that's designed to fit your butt like a glove?

It also comes with a full 12-year warranty, so you won't have to spend money on a new chair again anytime soon — unlike the cash you'd likely dole out to replace a bargain bin chair every couple of years.

Bed Linens

In 2011, the average American spent roughly 8.7 hours per day sleeping, according to the Bureau of Labor Statistics.

Why subject yourself to scratchy, stiff sheets for 3,175.5 hours every year? When it comes to bedding, treat yourself like a king (or twin, or queen, or California king) because there's a noticeable difference between budget, 200-thread-count sheets and luxury, Egyptian Cotton sheets.

Ever wonder why a hotel bed feels so much more comfortable than yours does? Good sheets!

Cosmetics

The point of makeup is to enhance a person's beauty in an inconspicuous way.

Cheaper cosmetics are less likely to look natural and will probably cake up later in the day and become a conspicuous way of de-hancing your beauty. Better quality cosmetics are far more likely to work with the conditions of your skin and look good on you, but they'll cost a bit more.

See the rest of the story at Business Insider

Homebuyers Should Stop Freaking Out About Mortgage Rates

Mandi Woodruff — Tue, 18 Jun 2013 19:54:00 GMT

Since early May, interest rates on 30-year fixed rate mortgages rose about half a percentage point, from 3.6% to 4.1%, leading some analysts to wonder: Is the great once-in-a-lifetime chance to buy a house going away?"

The reality is that yes, rates are creeping up (emphasis on creeping) but prospective home buyers shouldn't be falling all over themselves to buy now.

Just over a year ago, a 4% mortgage rate would have been considered a record low for a 30-year fixed rate mortgage.

While it's true that mortgage rates will likely keep rising, the overwhelming consensus from realtors and mortgage experts we spoke with is that consumers shouldn't be rushing their house hunt just yet.

"People who are thinking of buying a home or are actively searching feel a sense of urgency as they hear that mortgage rates and home prices are rising. Nobody wants to miss the boat," Bankrate.com senior mortgage analyst Polyana da Costa, told Business Insider.

"That said, do I think people should or will buy homes just because rates are creeping up? No. Unlike with refinancers, homebuyers can’t simply say 'I want to get a mortgage now before rates go up.' It takes time to find the home they want, especially in markets where inventory is tight."

A new report by Trulia offers some reassurance, as well, showing that as long as mortgage rates remain below 10.5%, it will still be cheaper to buy a home than to rent in the U.S.

What matters is what the homebuyer is looking for and how soon they want to buy.

"For people looking for hard-to-find homes – like in a neighborhood with little inventory or homes with unusual features – they might do better waiting for more inventory even though it might cost more," said Jed Kolko, chief economist for Trulia.

Rising rates means it's cheaper to buy a home today than it will be next month, but that's just how it goes in real estate. Homebuyers rarely time their house hunt with the ebb and flow of the market.

"I don't think that interest rates rising a little bit will make someone speed up their search," said Zillow real estate expert Brendon DeSimone. "Buying a home is not like buying a widget, or a car or stocks. It has to be the right place for the right person. I can't imagine a homebuyer, looking for a 3-bed/2-bath home in school district X, all of the sudden buying a 2-bed/2-bed in school district Y just to get a better rate. It's just not realistic."

His advice? Home buyers should take their time and shop around for the best home and the best rate.

"Be sure to shop around for the absolute best rate when you have a place in contract," he said. "Rates tend to fluctuate day to day so if you have the luxury of time, float for a couple of days. Work closely with a good local mortgage professional."

Who is feeling the pressure? Those who haven't refinanced.

In all the hype surrounding rising rates, what is realistic is that existing homeowners should lock in lower interest rates as soon as possible. In the past month alone, applications for refinancing rose 5%, according to the Mortgage Banker's Association.

For people paying more than 5% on a mortgage today, they should find out if refinancing makes sense as soon as possible. People who have older loans at rates of 6% or 7% could save thousands by refinancing, even as rates are rising.

"Get your documents ready, get quotes from a few different lenders and lock a rate as soon as you feel ready to begin the process," da Costa said. "For homebuyers who are still searching for a home, it’s not as simple. But again, if you have found a home and the numbers work for you, go ahead and lock."

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Watching For Fraud Red Flags Can Seriously Boost Portfolio Returns

Max Nisen — Tue, 18 Jun 2013 18:05:37 GMT

Corporate fraud is widespread, even if we only notice it when it blows up, leading to firings, arrests, or lawsuits.

In fact, fraud costs 3 percent of enterprise value — and thus stock returns — every year for the average U.S.-listed company, according to recent academic estimates.

A new report from GMI Ratings shows that investors can significantly boost returns simply by looking out for certain red flags.

When GMI eliminated the 25% of companies in the Russel 3000 index that scored the lowest on its fraud detection metrics, portfolio returns rose from 7.6% to 9.8% over a 10 year period, a 29% boost.

Here's their chart of the difference between the regular index and one with the worst-rated companies subtracted:

These are a few of the red flags that GMI looks for:

Compensation incentives for CEOs and CFOs that are very high relative to base salary
Late or frequently amended filings
Consecutive uninterrupted growth in earnings per share
Accounts receivable are growing at a different rate of sales
Low asset turnover, and excessively large intangibles

Read the full report at GMI Ratings.

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10 Common And Costly Home Repair Mistakes

Pat Curry — Tue, 18 Jun 2013 17:51:00 GMT

The first thing any savvy do-it-yourselfer should take into account when considering a new project is that it will probably take twice as much time and three times as much money as you thought.

Or maybe it's three times as long and twice as much money.

Either way, there's a good reason why it's true: DIYers make mistakes, so we asked home-improvement experts around the country for the most common mistakes a home handyman might make -- and how to avoid them.

Not taking out the required permits
Considered a bother at best by many DIYers, permits actually serve a greater purpose than just raising money for the government. "People in permitting offices aren't evil," says Lou Manfredini, the official Ace Hardware "Helpful Hardware Man."

"They're there to make sure the job is done right and you don't hurt yourself." Plus, for some jobs, such as putting in a wood stove, you need proof of the permit or your insurance carrier won't cover it. Not sure if your job requires a permit? The rule of thumb is that you need one for anything larger than painting and wallpapering. It doesn't hurt to call the building department and ask.

Starting a job without the necessary supplies
Nothing slows down a job more than not having all the materials you need.

Manfredini says the reason the pros can do what they do is that they buy quality tools. "There's always a bargain bin," he says. "It's not a wise investment. You lose time and money."

So make sure to research the tools you'll need in advance of the job.

Inadequate preparation of the job site

If you do a small addition, suppliers will be delivering materials.

You don't want them out of order or exposed to the weather while you are working, says Ed Del Grande, author of "Ed Del Grande's House Call" and formerly host of the DIY Network's "Warehouse Warriors" show.

Beware: They could be stolen if they're not properly stored. (If you have a septic tank, make sure you know where it is. If a supplier delivering materials in a heavy truck drives over it, you could be looking at a cracked tank. Yuck.)

Skimping on materials

Barbara Kavovit, a do-it-yourself guru and designer of the DIYVA collection of tools and accessories for Macy's, says she often sees DIYers use 1/4-inch drywall for building walls instead of the minimum 5/8 inch or 3/4 inch if you want a good sound barrier.

The same rule applies to plywood for subfloors. Go with 3/4 inch.

It creates a much stronger floor, especially if you're installing wood floors over them.

Using the wrong paint

One of the biggest DIY projects around, painting can make a place look great.

Manfredini says flat paint should only be used for ceilings because it's usually not as washable as paints with an eggshell or satin finish.

On outdoor decks, "sun and rain tear the heck out of the wood," he says. Clear sealers don't block the UV rays, and they peel. Use a linseed oil-based stain -- it drives the pigment into the wood and preserves it.

Improper preparation of walls for paint

A good, quality paint job is 90 percent preparation, Manfredini says.

Clean the walls, sand them and patch any holes before you paint. A coat of primer or stain blocker is advisable if you're trying to cover over oil-based paint, stains or peeling paint, or if you're painting a lighter color over a darker color.

Unsafe job conditions

Nothing diminishes your return on investment like a trip to the emergency room.

Wear safety goggles when using power tools or working with drywall or wood; wear hard hats when you're working under other people on scaffolding; and open some windows when you're painting or staining, or stripping old finishes off of floors or walls, Del Grande says.

And don't wear loose-hanging clothing, especially when using power tools. Wear gloves when carrying wood, metal and rock, or when hammering, and wear a nail or tool pouch to prevent damage to your floors and more importantly, the feet of people and pets.

Inaccuracy

Successful DIYers live by this rule: Measure twice, cut once.

It's so important for things such as building walls, hanging drywall or cutting baseboards, countertops or pipe. If you're going to err, err on the side of too long. You can always make something shorter; you can't make it longer.

Spackle can cover only up to a 1/8-inch seam.

Working beyond one's limits

Del Grande won't work on a roof; yours might be plumbing or electrical work.

Don't stand on the top steps of ladders.
Don't try to work beyond your reach.

Ladder accidents send more than 240,000 people to the emergency room every year, according to the U.S. Consumer Product Safety Commission.

Failure to get a clue

You don't want to start to learn how to do a project on your own house.

If you have a friend who is a contractor or an experienced DIYer, offer your assistance on one of his projects so you can learn. No one will turn away free labor.

If you need to remove a supporting wall, have an engineer look at it to see what kind of beam you need to replace it. "If you have a saw in your hand and have a question about what you're doing," Del Grande says, "stop. Follow that little voice in your head."

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