Tag Archives: Dan Caplinger

Three Simple Steps: Managing Debt

By Dan Caplinger

Filed under: , , , ,

Shutterstock

Being in debt can be one of the most overwhelming financial challenges you’ll ever face. That’s one reason that Americans have worked so hard to break themselves of their debt habit, with the Federal Reserve Bank of New York having reported recently that debt levels have fallen by $1.45 trillion since the third quarter of 2008. In particular, credit-card debt is down more than 20 percent over that time frame, reflecting the priority of getting high-interest-rate debt paid down fastest.

Even if you have a lot of debt, don’t panic! You can get your outstanding loans under control if you take a long-term view and start taking baby steps toward better managing your debt. Start out with these three simple tips:

1. Order your credit report from AnnualCreditReport.com, which is the free website set up under federal law to provide copies of credit reports to all Americans. You can get one free report every year from each of the three main credit-reporting agencies, and the report will tell you what loans and cards you have outstanding, how much you owe, and your payment history, including any late payments or delinquent accounts.

2. Gather up your loan and credit-card statements to match them up with your credit report. If you see extra entries on your credit report that aren’t among the bills you’re paying every month, flag those unknown accounts for future follow-up to avoid potentially nastier surprises further down the road.

3. Figure out the interest rates you’re paying on each of your loans and cards. Usually, that information will be right on the loan statement, and doing so will give you a good idea of how to prioritize which debt to pay off first. Moreover, it’ll give you ammunition in negotiating better interest rates down the road.

Debt can be a huge burden, but managing your debt doesn’t have to be. Instead of freaking out or hoping that your credit-card balances will just magically go away, taking these simple first steps will get you on the road toward dealing with your debt once and for all.

You can follow Motley Fool contributor Dan Caplinger on Twitter @DanCaplinger or on Google+.

Permalink | Email this | Linking Blogs | Comments

…read more

Source: FULL ARTICLE at DailyFinance

How to Find the Best Place to Retire

By Dan Caplinger, The Motley Fool

Filed under:

Everyone looks forward to the freedom that retirement living offers. But with the financial realities of living on a fixed income, how can you make your savings go further? The choice of where you want to live in retirement will affect not just your lifestyle but also your finances.

In the following video, Motley Fool investment-planning editor Lauren Kuczala talks with longtime Fool contributor and retirement expert Dan Caplinger about deciding the best place to live when you retire. Dan notes that while there are obvious non-financial considerations, cost of living, taxes, and available benefits make a big difference for retirees trying to make ends meet. He notes that for those with substantial savings, looking for low-cost states without an income tax is often the best way to minimize taxes on investment income. Yet for those who want to live in higher-cost states, Dan has suggestions that can help you reduce taxes to the fullest extent possible.

Retirees often seek income for their portfolios, and midstream operator Kinder Morgan has enormous potential for profits. In The Motley Fool‘s premium research report on Kinder Morgan, we break down the company’s growing opportunity — as well as the risks to watch out for — to uncover whether it’s a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor’s resource.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Caplinger“, contentId: “cms.35305”, contentTickers: “NYSE:KMI, NYSE:OXY, NYSEMKT:MUB, NYSE:APA”, contentTitle: “How to Find the Best Place to Retire”,

Source: FULL ARTICLE at DailyFinance

The Dangerous Game Big Investors Are Playing

By Dan Caplinger, The Motley Fool

Filed under:

Pension funds and other institutional investors have struggled to produce the returns they need to satisfy their obligations. To boost returns, they’ve turned to a new, risky strategy involving leverage that could eventually backfire, leaving pension funds facing shortfalls in meeting their obligations to pensioners.

In the following video, Fool markets analyst Mike Klesta talks with longtime Fool contributor and financial planner Dan Caplinger about this strategy and what it means to you and your money.

Annaly Capital has used a similarly leveraged strategy to produce huge dividends, but can investors count on that payout sticking around? With the Federal Reserve‘s recent moves, Annaly has had to scramble to defend its bottom line. In The Motley Fool’s premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Caplinger“, contentId: “cms.35901”, contentTickers: “SNPINDEX:^GSPC, NYSE:BAC, NYSE:WFC, NYSE:NLY, NASDAQ:AGNC”, contentTitle: “The Dangerous Game Big Investors Are Playing”, hasVideo: “True”, pitchId: “6”, pitchTickers: “NYSE:NLY”,

Source: FULL ARTICLE at DailyFinance

Why Wall Street's Souring on Junk Bonds

By Dan Caplinger, The Motley Fool

Filed under:

Investors have searched high and low for investments to produce income, and one area that they’ve looked to for high yields is the junk bond market. But recently, many bond analysts believe that the rates that junk bonds offer have fallen so far that they no longer represent a good risk-reward proposition.

In the following video, Fool markets analyst Mike Klesta talks with longtime Fool contributor and financial planner Dan Caplinger about what junk bonds are and why Wall Street is worried about their future prospects. Dan offers some thoughts about ways investors can participate in the junk bond market and explains why investors in the stock market should also keep an eye on junk bonds.

If you’re looking for some long-term investing ideas with solid income, you’re invited to check out The Motley Fool’s brand-new special report, “The 3 Dow Stocks Dividend Investors Need.” It’s absolutely free, so simply click here now and get your copy today.

The article Why Wall Street’s Souring on Junk Bonds originally appeared on Fool.com.

Neither Mike Klesta nor Fool contributor Dan Caplinger has any position in any stocks mentioned. You can follow Dan on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

(function(c,a){window.mixpanel=a;var b,d,h,e;b=c.createElement(“script”);
b.type=”text/javascript”;b.async=!0;b.src=(“https:”===c.location.protocol?”https:”:”http:”)+
‘//cdn.mxpnl.com/libs/mixpanel-2.2.min.js’;d=c.getElementsByTagName(“script”)[0];
d.parentNode.insertBefore(b,d);a._i=[];a.init=function(b,c,f){function d(a,b){
var c=b.split(“.”);2==c.length&&(a=a[c[0]],b=c[1]);a[b]=function(){a.push([b].concat(
Array.prototype.slice.call(arguments,0)))}}var g=a;”undefined”!==typeof f?g=a[f]=[]:
f=”mixpanel”;g.people=g.people||[];h=[‘disable’,’track’,’track_pageview’,’track_links’,
‘track_forms’,’register’,’register_once’,’unregister’,’identify’,’alias’,’name_tag’,
‘set_config’,’people.set’,’people.increment’];for(e=0;e<h.length;e++)d(g,h[e]);
a._i.push([b,c,f])};a.__SV=1.2;})(document,window.mixpanel||[]);
mixpanel.init("9659875b92ba8fa639ba476aedbb73b9");

function addEvent(obj, evType, fn, useCapture){
if (obj.addEventListener){
obj.addEventListener(evType, fn, useCapture);
return true;
} else if (obj.attachEvent){
var r = obj.attachEvent("on"+evType, fn);
return r;
}
}

addEvent(window, "load", function(){new FoolVisualSciences();})
addEvent(window, "load", function(){new PickAd();})

var themeName = 'dailyfinance.com';
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-24928199-1']);
_gaq.push(['_trackPageview']);

(function () {

var ga = document.createElement('script');
ga.type = 'text/javascript';
ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';

var s = document.getElementsByTagName('script')[0];

Source: FULL ARTICLE at DailyFinance

Is Leasing a Car Smarter Than Buying?

By Dan Caplinger, The Motley Fool

Filed under:

Buying a car can be expensive, and with budgets stretched to the breaking point, many would-be car buyers are looking at leasing as a possible lower-cost option. But is leasing a smart move?

In the following video, Motley Fool investment-planning editor Lauren Kuczala talks with longtime Fool contributor and financial planner Dan Caplinger about the pros and cons of leasing a car versus buying. Dan explains how leases work and goes through the pros and cons of leases, explaining how many automakers offer incentives for customers to get favorable lease terms. In addition, he discusses the recent decision from Tesla (Nasdaq: TSLA) to offer a lease-like financing option that’s technically not a lease but which includes some of the same attractive traits. Dan closes by offering guidance on how to decide whether leasing is right for you.

Ford offers lease incentives from time to time, and its ability to get customers into new vehicles has helped it turn itself around since the financial crisis. Yet there’s good reason to think that the Blue Oval still has big growth opportunities ahead. We’ve outlined those opportunities in detail, in the Fool’s premium Ford research service. If you’re looking for some freshly updated guidance to Ford’s prospects in coming years, you’ve come to the right place — click here to get started now.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Caplinger“, contentId: “cms.35291”, contentTickers: “NYSE:F, NYSE:HMC, NYSE:TM, NYSE:GM, NASDAQ:TSLA”, contentTitle: “Is Leasing a Car Smarter Than Buying?”, hasVideo: “True”,

Source: FULL ARTICLE at DailyFinance

How You Can Find the Perfect Stock

By Dan Caplinger, The Motley Fool

Filed under:

Everyone wants to find the perfect stock. But what should you be looking for in your search, and how will you know when you find it?

In the following video, Motley Fool investment-planning editor Lauren Kuczala talks with longtime Fool contributor and financial planner Dan Caplinger about his multiyear quest for perfect stocks. As Dan notes, the right combination of factors, including revenue growth, attractive valuations, and rich dividend yields, can be elusive. But there are few stocks that have passed his test, and Dan shares the names of those elite stocks with Lauren, along with his insight after looking through hundreds of different stocks on his quest.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool‘s free report “3 Stocks That Will Help You Retire Rich” names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article How You Can Find the Perfect Stock originally appeared on Fool.com.


Neither Fool investment planning editor Lauren Kuczala nor Fool contributor

Dan Caplinger

has any position in any stocks mentioned. You can follow Dan on Twitter:

@DanCaplinger

. The Motley Fool recommends Giant Interactive and owns shares of Sturm, Ruger. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

(function(c,a){window.mixpanel=a;var b,d,h,e;b=c.createElement(“script”);
b.type=”text/javascript”;b.async=!0;b.src=(“https:”===c.location.protocol?”https:”:”http:”)+
‘//cdn.mxpnl.com/libs/mixpanel-2.2.min.js’;d=c.getElementsByTagName(“script”)[0];
d.parentNode.insertBefore(b,d);a._i=[];a.init=function(b,c,f){function d(a,b){
var c=b.split(“.”);2==c.length&&(a=a[c[0]],b=c[1]);a[b]=function(){a.push([b].concat(
Array.prototype.slice.call(arguments,0)))}}var g=a;”undefined”!==typeof f?g=a[f]=[]:
f=”mixpanel”;g.people=g.people||[];h=[‘disable’,’track’,’track_pageview’,’track_links’,
‘track_forms’,’register’,’register_once’,’unregister’,’identify’,’alias’,’name_tag’,
‘set_config’,’people.set’,’people.increment’];for(e=0;e<h.length;e++)d(g,h[e]);
a._i.push([b,c,f])};a.__SV=1.2;})(document,window.mixpanel||[]);
mixpanel.init("9659875b92ba8fa639ba476aedbb73b9");

function addEvent(obj, evType, fn, useCapture){
if (obj.addEventListener){
obj.addEventListener(evType, fn, useCapture);
return true;
} else if (obj.attachEvent){
var r = obj.attachEvent("on"+evType, fn);
return r;
}
}

addEvent(window, "load", function(){new FoolVisualSciences();})
addEvent(window, "load", function(){new PickAd();})

var themeName =

Source: FULL ARTICLE at DailyFinance

Should North Korea Worry U.S. Investors?

By Dan Caplinger and Mike Klesta, The Motley Fool

Filed under:

Tensions on the Korean Peninsula have been on the rise lately, as a new leader in North Korea seeks to assert his leadership by making increasingly provocative threats toward both its neighbors and the United States. In the following video, Fool markets analyst Mike Klesta talks with Fool contributor Dan Caplinger about whether U.S. investors should be worried about what’s happening with North Korea.

Mike points out that the Dow Jones Industrials have largely ignored the Korean threat. Dan believes that while most U.S. stocks have little exposure to the area, investors in South Korean stocks have already seen substantial losses and could continue to see further drops if the crisis escalates. Dan argues that for the most part, U.S. investors should look at U.S. companies that have business operations in South Korea to see how they plan to handle any rising tensions in the future. Moreover, investors in emerging-market ETFs need to be aware that they may have a portion of their assets invested in South Korea, although the exact amount varies among ETFs. Mike and Dan conclude that for now, the risk to the broader U.S. stock market is small, but the situation demands further attention.

One company taking steps to deal with South Korean concerns is General Motors (NYSE: GM). The automaker’s stock creates strong feelings among many investors who remember its bankruptcy during the financial crisis, but as the Fool’s premium GM research service notes, GM‘s growth potential in coming years is even bigger than you think. But it’s not a sure thing, and we’ll help you understand why. It might help give you the courage to be greedy while others are still fearful, as well as a better understanding of the real risks facing General Motors. Just click here to get started now.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Caplinger and Mike Klesta“, contentId: “cms.32241”,

From: http://www.dailyfinance.com/2013/04/14/should-north-korea-worry-us-investors/

3 Top-Performing Global Markets in 2013

By Dan Caplinger and Mike Klesta, The Motley Fool

Filed under:

As strongly as the Dow Jones Industrials have performed in 2013, some international markets have done even better. In the following video, Fool markets analyst Mike Klesta talks with Fool contributor Dan Caplinger about three world stock markets that have outpaced the Dow so far this year.

As Dan and Mike discuss, each of these markets has a surprising element to it, with one having overcome weakness in Europe to shine, a second rising from the depths of a multi-decade stock market slump, and the last advancing despite fairly strong anti-capitalist nationalistic tendencies. Dan discusses each of the three markets as well as some ways you can take advantage of them in your portfolio, both through individual stocks and through broader-based investment vehicles.

To learn more about a few ETFs that have great promise for delivering profits to shareholders in a recovering global economy, check out The Motley Fool’s special free report “3 ETFs Set to Soar During the Recovery.” Just click here to access it now.

The article 3 Top-Performing Global Markets in 2013 originally appeared on Fool.com.

Neither Fool contributor Dan Caplinger nor Mike Klesta has any position in any stocks mentioned. You can follow Dan on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

(function(c,a){window.mixpanel=a;var b,d,h,e;b=c.createElement(“script”);
b.type=”text/javascript”;b.async=!0;b.src=(“https:”===c.location.protocol?”https:”:”http:”)+
‘//cdn.mxpnl.com/libs/mixpanel-2.2.min.js’;d=c.getElementsByTagName(“script”)[0];
d.parentNode.insertBefore(b,d);a._i=[];a.init=function(b,c,f){function d(a,b){
var c=b.split(“.”);2==c.length&&(a=a[c[0]],b=c[1]);a[b]=function(){a.push([b].concat(
Array.prototype.slice.call(arguments,0)))}}var g=a;”undefined”!==typeof f?g=a[f]=[]:
f=”mixpanel”;g.people=g.people||[];h=[‘disable’,’track’,’track_pageview’,’track_links’,
‘track_forms’,’register’,’register_once’,’unregister’,’identify’,’alias’,’name_tag’,
‘set_config’,’people.set’,’people.increment’];for(e=0;e<h.length;e++)d(g,h[e]);
a._i.push([b,c,f])};a.__SV=1.2;})(document,window.mixpanel||[]);
mixpanel.init("9659875b92ba8fa639ba476aedbb73b9");

function addEvent(obj, evType, fn, useCapture){
if (obj.addEventListener){
obj.addEventListener(evType, fn, useCapture);
return true;
} else if (obj.attachEvent){
var r = obj.attachEvent("on"+evType, fn);
return r;
}
}

addEvent(window, "load", function(){new FoolVisualSciences();})
addEvent(window, "load", function(){new PickAd();})

var themeName = 'dailyfinance.com';
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-24928199-1']);
_gaq.push(['_trackPageview']);

(function () {

var ga = document.createElement('script');
ga.type = 'text/javascript';
ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';

From: http://www.dailyfinance.com/2013/04/13/3-top-performing-global-markets-in/

Is the Dow Leaving Small Caps in the Dust?

By Dan Caplinger and Mike Klesta, The Motley Fool

Filed under:

While the Dow Jones Industrial Average keeps hitting record highs, small-cap growth has recently slowed. Is it time to avoid small caps, or should they have a place in portfolios?

In the following video, markets analyst Mike Klesta talks with Fool contributor Dan Caplinger about opportunities in small-cap stocks and ways to diversify.

To learn more about a few ETFs that have great promise for delivering profits to shareholders in a recovering global economy, check out The Motley Fool’s special free report “3 ETFs Set to Soar During the Recovery.” Just click here to access it now.

The article Is the Dow Leaving Small Caps in the Dust? originally appeared on Fool.com.

Fool contributor Dan Caplinger, Mike Klesta, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

(function(c,a){window.mixpanel=a;var b,d,h,e;b=c.createElement(“script”);
b.type=”text/javascript”;b.async=!0;b.src=(“https:”===c.location.protocol?”https:”:”http:”)+
‘//cdn.mxpnl.com/libs/mixpanel-2.2.min.js’;d=c.getElementsByTagName(“script”)[0];
d.parentNode.insertBefore(b,d);a._i=[];a.init=function(b,c,f){function d(a,b){
var c=b.split(“.”);2==c.length&&(a=a[c[0]],b=c[1]);a[b]=function(){a.push([b].concat(
Array.prototype.slice.call(arguments,0)))}}var g=a;”undefined”!==typeof f?g=a[f]=[]:
f=”mixpanel”;g.people=g.people||[];h=[‘disable’,’track’,’track_pageview’,’track_links’,
‘track_forms’,’register’,’register_once’,’unregister’,’identify’,’alias’,’name_tag’,
‘set_config’,’people.set’,’people.increment’];for(e=0;e<h.length;e++)d(g,h[e]);
a._i.push([b,c,f])};a.__SV=1.2;})(document,window.mixpanel||[]);
mixpanel.init("9659875b92ba8fa639ba476aedbb73b9");

function addEvent(obj, evType, fn, useCapture){
if (obj.addEventListener){
obj.addEventListener(evType, fn, useCapture);
return true;
} else if (obj.attachEvent){
var r = obj.attachEvent("on"+evType, fn);
return r;
}
}

addEvent(window, "load", function(){new FoolVisualSciences();})
addEvent(window, "load", function(){new PickAd();})

var themeName = 'dailyfinance.com';
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-24928199-1']);
_gaq.push(['_trackPageview']);

(function () {

var ga = document.createElement('script');
ga.type = 'text/javascript';
ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';

var s = document.getElementsByTagName('script')[0];
s.parentNode.insertBefore(ga, s);
})();

Read | Permalink | Email this | Linking Blogs | Comments

From: http://www.dailyfinance.com/2013/04/13/is-the-dow-leaving-small-caps-in-the-dust/

The Perils of Retirement Calculators

By Dan Caplinger, The Motley Fool

Filed under:

Planning for retirement is one of the hardest money issues people face, as the uncertainties of dealing with a goal that’s years or even decades away are hard to navigate. In this edition of our Motley Fool Conversations series, Fool personal finance expert Dayana Yochim and retirement-planning analyst Dan Caplinger discuss retirement calculators and the ways that many people use them to try to find some answers to their questions of how much to save and how to invest.

Dayana notes how retirement calculators allow you to run any number of scenarios to help you plan your retirement. But as Dan points out, the to-the-penny answers that retirement calculators produce don’t accurately reflect the bumpiness of real-life investing results, which inevitably include bumps and dips along the way.

The key to using retirement calculators well is to maintain the flexibility to deal with changing circumstances. Dan and Dayana bring up a number of areas where staying flexible can help, including how much money you spend from year to year, when you plan to retire, and how you invest. Taking advantage of opportunities to phase into retirement through part-time arrangements can give you extra income to help you bridge the gap to get more financial security.

Finally, Dayana and Dan discuss various investing ideas. Although many retirees have traditionally turned to bonds, stocks of companies that enjoy stable customer demand and pay healthy dividends are a good choice. Yet to provide long-term growth for retirees who expect to live 20 to 30 years beyond their retirement date, growth stocks can be appropriate even if they don’t pay dividends. Dan names some stocks in both categories and concludes that the right balance will let you keep your bases covered.

Amazon.com is a good example of a growth stock, and even though it pays no dividend, it has plenty of future potential for further gains. The Motley Fool’s premium report will tell you what’s driving the company’s growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company’s story changes, so click here now to read more.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, …read more

Source: FULL ARTICLE at DailyFinance

Bitcoin Buyers, Beware: Consider These 5 Classic Asset Bubbles

By Dan Caplinger

Filed under: , ,

Getty Images

Until recently, many people had never heard of Bitcoin. But the hyperbolic rise in the price of the digital crypto-currency — from $5 as recently as mid-2012 to more than $100 recently — has captured broader attention as financial crises (most recently the one on Cyprus) continue to make markets and investors nervous about traditional, government-issued currencies.

Proponents argue that the rise in Bitcoin’s value and use marks a lack of confidence in those fiat currencies whose value is under the influence of central bankers and politicians. Skeptics point back at a long line of economic bubbles as they predict an eventual plunge in Bitcoin prices.

Economic history is on the side of the skeptics. Let’s take a look at five other assets that gained even more intense interest among speculators and ordinary investors before their bubbles burst, sending prices back down to earth.

%Gallery-184717%

Motley Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. Try any of our newsletter services free for 30 days.

Permalink | Email this | Linking Blogs | Comments

…read more

Source: FULL ARTICLE at DailyFinance

5 Companies Set to Cash In on America's Aging Population

By Dan Caplinger

Filed under: , , ,

Getty Images

Let’s face it: We’re getting old. The percentage of Americans age 65 or older has been steadily on the rise over the decade. It hit 14 percent in 2012 — and the Census Bureau projects that by 2050, 21 percent of Americans will be at least 65 years old.

Our aging demographic profile has created some immense challenges, particularly in the areas of Social Security and Medicare. But it also opens up opportunities for enterprising businesses that provide necessary services to an aging population.

Companies that identify demographic trends are best positioned to profit from them. Here are five that are in the right place at the right time — and if they’re smart about their strategic vision, they (and their investors) could reap a lot of growth from an aging customer base.

%Gallery-184688%
Motley Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson and Medtronic.

Permalink | Email this | Linking Blogs | Comments

…read more

Source: FULL ARTICLE at DailyFinance

The Biggest Challenge for Today's Retirees

By Dan Caplinger, The Motley Fool

Filed under:

Today’s retirees are having to deal with unprecedented challenges. In this edition of our Motley Fool Conversations series, Fool personal finance expert Dayana Yochim and retirement-planning analyst Dan Caplinger discuss the difficulties that retirees are having in generating enough income to pay for basic living expenses.

Dan and Dayana discuss how low interest rates have surprised retirees, who until now depended on the income from bank CDs, bonds, and other fixed-income investments to bridge the gap between their spending and what Social Security and private pensions provide them in monthly income. Dayana points out that many retirees are taking on debt as a result of their income shortfall, and given their limited prospects to raise their incomes, retirees face long odds in getting their debt paid down without selling major assets like their homes.

Dan goes on to talk about how important it is for near-retirees to consider carefully when to take Social Security benefits. Although you can take benefits as early as age 62, waiting to take benefits later will increase your monthly check, with payments maxing out for those who start taking Social Security at age 70. Given that life expectancies are rising, taking a long-term investing approach is smarter than simply maximizing current income. Dan notes that the current income and growth potential of dividend stocks, especially conservative consumer-products companies, can help achieve both goals.

Coca-Cola‘s wide moat has helped provide its shareholders with superior gains in the past, but the company faces some new threats to its continued market dominance. Does Coca-Cola still make a smart stock for retirement portfolios? The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you’ll want to click here now and get started!

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Caplinger”, contentId: “cms.29510”, …read more
Source: FULL ARTICLE at DailyFinance

The Worst Way to Pay Your Taxes: Put Them on a Credit Card

By Dan Caplinger

Filed under: , ,

Millions of people across the nation are looking forward to a nice refund check from the IRS. But if you’re one of the unfortunate ones who has to cut a check to Uncle Sam this year, you’ll want to steer clear of one increasingly popular way to pay taxes: using your credit card.

Many people are so scared of the IRS that they’d do just about anything to avoid any potential problems. That’s one reason that paying your outstanding taxes with a credit card is so appealing: One click and you’re done.

But the price of using a credit card is simply too high compared to the alternatives.

The private companies that the IRS has authorized to accept credit card tax payments charge as much as 2.35% in convenience charges up front. Even worse, if you can’t pay off the resulting balance on your card, you’ll boost your finance charges — and with typical cards carrying annual rates of 16% or more, those charges will add up in a hurry.

Cheaper Ways

If you have the money to pay by check, it makes far more sense than charging it. Unless you earn perks like cash-back rewards or airline miles that are worth more than the 2.35% fee, there’s no good reason to pay it.

Sponsored Linksadsonar_placementId=1505951;adsonar_pid=1990767;adsonar_ps=-1;adsonar_zw=242;adsonar_zh=252;adsonar_jv=’ads.tw.adsonar.com’;

Even if you can’t afford to pay your whole tax bill right now, a better alternative for some is to use the IRS‘ own procedures to get some relief. Requests for up to 120 days of additional time to pay in full carry no fee, and although interest continues to accrue, the current annual rate of 3% is far less than what many credit cards charge. Longer repayment plans come with an application fee, but it can still be worth it if you can qualify for reduced IRS penalties.

So if you’re trying to figure out how you’ll pay your taxes next week, think twice before you use your credit card. You might be far better off seeking another way to pay.

For More on From The Tax Center:

Motley Fool contributor Dan Caplinger is paying his taxes the old-fashioned way next week. You can follow him on Twitter here.

NEXT: Learn From These Celeb Tax Mistakes

%Gallery-152304%

Permalink | Email this | Linking Blogs | Comments

…read more
Source: FULL ARTICLE at DailyFinance

Does Diversifying Still Protect Your Portfolio?

By Dan Caplinger, The Motley Fool

Filed under:

In the following video, Fool contributor Dan Caplinger discusses how many investors have started to question whether diversification still works as a way to protect your portfolio from downturns. Increasingly, the Dow Jones Industrials and other markets both in the U.S. and around the world have traded in lockstep, with highly correlated returns threatening the protection that diversification used to provide.

Dan notes that even though returns on various stocks have gotten a lot more highly correlated lately, some stocks move more dramatically than others in response to changing market conditions. By tapping the relative stability of lower-volatility stocks, you can get the benefits of diversification while still having exposure to potential profits from rising markets. Dan gives some good examples of such low-volatility stocks within the Dow for investors to take a look at.

Coca-Cola‘s wide moat has helped provide its shareholders with superior gains in the past, but does it have the price stability that conservative investors want from a stock? The soft-drink company also faces some new threats to its continued market dominance. To help you figure out how to handle Coca-Cola as an investment, The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you’ll want to click here now and get started!

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Caplinger“, contentId: “cms.27690”, contentTickers: “DJINDICES:^DJI, NYSE:JNJ, NYSE:KO, NYSE:PG, NYSE:VZ”, contentTitle: “Does Diversifying Still Protect Your Portfolio?”, hasVideo: …read more
Source: FULL ARTICLE at DailyFinance

Is China Holding Back the Dow?

By Dan Caplinger, The Motley Fool

Filed under:

In the following video, Fool contributor Dan Caplinger discusses how, even as the Dow Jones Industrials have climbed to record highs lately, stock markets in China have lagged behind. That’s largely because of rising inflationary pressures in the emerging nation, with higher food costs filtering down to push consumer prices up 3.2% over the past 12 months. Further gains could force the Chinese central bank to tighten monetary policy, potentially hurting business activity.

Dan takes a look at three companies that are particularly vulnerable to a slowing Chinese economy. If China can’t get inflation under control, these companies could be the worst hit from the fallout.

Caterpillar does a lot of business in China, so will it be affected if the emerging market starts to falter? Find out in our premium research report on the construction-equipment giant, in which top Fool analysts look at whether Caterpillar can keep growing even in a slow economic recovery. Just click here to access it now.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Caplinger“, contentId: “cms.27064”, contentTickers: “DJINDICES:^DJI, NYSE:CAT, NYSE:GE, NYSE:AA”, contentTitle: “Is China Holding Back the Dow?”, hasVideo: “True”, pitchId: “24”, pitchTickers: “NYSE:CAT”, …read more
Source: FULL ARTICLE at DailyFinance

Why the Dow's Energy Giants Fell on a Double-Record Day

By Dan Caplinger, The Motley Fool

Filed under:

The long-awaited reunion of stock market benchmarks at record-high levels finally happened today, as the S&P 500 joined the Dow Jones Industrials in climbing above its former 2007 highs. Continuing positive economic data on the domestic front outweighed any concerns about the global economic situation, and the markets finished near their highs of the day, with the Dow gaining 52 points, and the S&P climbing six points, to 1,569.

Most of the Dow’s component stocks advanced, but one weak spot was energy. Even though oil prices rose more than $0.50, to climb above $97 per barrel, both Chevron and ExxonMobil posted losses on the day, with most of the declines coming at the very end of the trading day.

Chevron suffered the bigger loss, falling more than 1% on critical comments from the governor of Utah over multiple spills from ruptured pipelines within the state over the past several years. The potential liability involved in the most recent Willard Bay State Park spill is likely insubstantial for the company, but the episode highlights the many environmental concerns over increased pipeline-building and drilling activity.

Exxon fell 0.5% on similarly sparse news, with the company saying that its chemical subsidiary would license technology to South African energy giant Sasol for a polyethylene plant in Louisiana. But the end-of-day move for both stocks looks more like what you’d see from an institutional rebalancing of portfolios geared to de-emphasize energy stocks.

Beyond the Dow, Five Below fell more than 3% as it gave negative guidance for its current quarter in its quarterly report last night. Despite having seen good success in its low-price under-$5 business model, Five Below said that options granted to the company’s founders would result in some tax-related expenses that would hurt earnings per share, and it also projected sales below expectations.

Finally, Boyd Gaming fell 4.5%. Despite the potential boon from the legalization of New Jersey gambling, Boyd still faces a tough overall environment in the gaming industry. Even if the economy starts to pick up, heavy competition on the domestic gaming front will require Boyd to keep fighting hard to get and keep patrons coming into its casinos.

If you’re looking for some long-term investing ideas, you’re invited to check out The Motley Fool’s brand-new special report, “The 3 Dow Stocks Dividend Investors Need.” It’s absolutely free, so simply click here now and get your copy today.

The article Why the Dow’s Energy Giants Fell on a Double-Record Day originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley …read more
Source: FULL ARTICLE at DailyFinance

1 Stock to Buy in April

By Motley Fool Staff

Filed under:

As we do each month, we asked 10 of our top analysts across various sectors for one stock that looks especially compelling right now. Here are the companies they singled out.

Dan Caplinger: My stock for the month is Chinese online-search giant Baidu . I’ve been a big fan of emerging markets for a long time, and China in particular intrigues me because of the language and cultural differences that provide such a big barrier to entry in many industries. Although fast-food giants and other consumer-facing U.S. companies have done a good job of building a big presence in the nation, Baidu has managed to fend off Google and retain a commanding share of the online search market. The stock’s recent plunge in reaction to up-and-comer Qihoo 360 seems far too overblown, especially given the potential for huge growth in the search market in China and in neighboring countries that will leave room for multiple competitors in the space.

Moreover, investors are forgetting that Baidu has expansion plans beyond China, and its prospects for picking up market share in other lucrative emerging Internet markets look bright. Best of all, even if its lightning-fast growth pace slows, being able to pick up shares at a trailing multiple below 20 is a bargain that’s too tempting to resist.

John Maxfield: Apple 

If I were the world’s most interesting man (which I most certainly am not) here’s how I’d sum up my selection of Apple as the one stock to buy in April: I don’t usually buy technology stocks, but when I do they’re dirt cheap.

Apple is patently, even offensively, inexpensive. It went from over $700 per share last September — at which point even seasoned investors like David Einhorn were predicting it’d be the “first trillion-dollar company” — down to roughly $420 earlier this month. It’s the classic case of mania followed by utter despair.

On a valuation basis, the company’s stock trades for a little more than 10 times its estimated future earnings over the next 12 months. If you exclude its obscene cash hoard, that figure falls to roughly seven times earnings. And even more telling is its 2.3% dividend yield, which is bound to increase, given that Apple is in “serious discussions” about returning more capital to shareholders.

While I’ve been wrong before, and will be again, I’ve personally bought Apple at three different price points during its descent, and couldn’t be happier with the decision. 

Keith Speights: Biogen Idec  is on a roll that I don’t see stopping anytime soon. Shares are up more than 40% during the last year. The biotech currently stands as the leader in the multiple sclerosis market with blockbuster drugs such as Avonex and Tysabri. Many expect Biogen’s Tecfidera, which was recently approved by the FDA, to exceed the success of both of those drugs and become the top-selling MS drug within the next few years.

The excitement over Tecfidera stems from several important advantages …read more
Source: FULL ARTICLE at DailyFinance

Don't Touch That Pile of Cash in Your 401(k)!

By Dan Caplinger, The Motley Fool

Filed under:

In this edition of our Motley Fool Conversations series, Fool personal finance expert Dayana Yochim and retirement-planning analyst Dan Caplinger discuss the challenges of keeping disciplined with your retirement savings. Many investors cash out of their 401(k) plans when they change jobs, taking the opportunity to get a much-needed quick financial windfall. But as Dan notes, the consequences of giving in to temptation can be huge down the road.

As Dan points out, some employers even force you to take money out of 401(k) plans after you change jobs if your balance falls below a certain level. But as Dayana notes, keeping track of old 401(k)s is important, and Dayana and Dan go on to discuss various choices that you have for handling that money efficiently.

Dan suggests that the best solution for most people is to do an IRA rollover, which shifts cash directly from the old 401(k) account into a self-directed retirement account. That way, you can avoid IRS taxes and penalties and choose good low-cost investment options rather than being locked into the menu of higher-cost investments that most 401(k)s use. He explains how the process is simple, with your financial provider taking care of most of the details to keep your money working hard for you.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool’s free report “3 Stocks That Will Help You Retire Rich” names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Don’t Touch That Pile of Cash in Your 401(k)! originally appeared on Fool.com.

Fool contributor Dan Caplinger and personal finance expert Dayana Yochim appreciate your comments. You can follow Dan on Twitter @DanCaplinger. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

(function(c,a){window.mixpanel=a;var b,d,h,e;b=c.createElement(“script”);
b.type=”text/javascript”;b.async=!0;b.src=(“https:”===c.location.protocol?”https:”:”http:”)+
‘//cdn.mxpnl.com/libs/mixpanel-2.2.min.js’;d=c.getElementsByTagName(“script”)[0];
d.parentNode.insertBefore(b,d);a._i=[];a.init=function(b,c,f){function d(a,b){
var c=b.split(“.”);2==c.length&&(a=a[c[0]],b=c[1]);a[b]=function(){a.push([b].concat(
Array.prototype.slice.call(arguments,0)))}}var g=a;”undefined”!==typeof f?g=a[f]=[]:
f=”mixpanel”;g.people=g.people||[];h=[‘disable’,’track’,’track_pageview’,’track_links’,
‘track_forms’,’register’,’register_once’,’unregister’,’identify’,’alias’,’name_tag’,
‘set_config’,’people.set’,’people.increment’];for(e=0;e<h.length;e++)d(g,h[e]);
a._i.push([b,c,f])};a.__SV=1.2;})(document,window.mixpanel||[]);
mixpanel.init("9659875b92ba8fa639ba476aedbb73b9");

function addEvent(obj, evType, fn, useCapture){
if (obj.addEventListener){
obj.addEventListener(evType, fn, useCapture);
return true;
…read more
Source: FULL ARTICLE at DailyFinance

Making Sense of New Tax Laws

By Dan Caplinger, The Motley Fool

Filed under:

In this edition of our Motley Fool Conversations series, Fool personal finance expert Dayana Yochim and retirement-planning analyst Dan Caplinger discuss just how complicated taxes have gotten lately. With a whole new set of tax laws to deal with, boosting the amount you save in retirement accounts can pay off more than ever in tax savings.

As Dan notes, most middle-income taxpayers survived the new laws largely unscathed, thanks to permanent reform to the alternative minimum. But for high-income taxpayers, a new 39.6% tax bracket and a 3.8% surtax on investment income make IRAs and 401(k)s even more valuable.

Dayana and Dan go on to discuss various tax-saving strategies, including the pros and cons of converting a retirement account to a Roth account. Moreover, Dan discusses how the continuation of preferential tax treatment for dividend stocks helped investors dodge a potential bullet, as the new tax laws preserve substantial savings on dividend income compared to what you’ll pay on bank interest and other types of income.

With all the new complicated tax provisions, it’s important for you to get a complete understanding of what you need to know. To get all the answers you need, be sure to check out our Motley Fool ONE Tax Center. Once you enter your email address, you’ll get access to our extensive report put together by Fool financial expert Robert Brokamp, which details the newest laws and shows you how you can take advantage of them. With tax season winding down, this limited-time offer won’t last long, so click here right now and claim this valuable tax resource today!

The article Making Sense of New Tax Laws originally appeared on Fool.com.



Fool contributor Dan Caplinger and personal finance expert Dayana Yochim appreciate your comments. You can follow Dan on Twitter @DanCaplinger. Neither Dan nor Dayana owns any of the stocks mentioned in this video. The Motley Fool recommends Johnson & Johnson and Procter & Gamble. The Motley Fool owns shares of IBM and Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

(function(c,a){window.mixpanel=a;var b,d,h,e;b=c.createElement(“script”);
b.type=”text/javascript”;b.async=!0;b.src=(“https:”===c.location.protocol?”https:”:”http:”)+
‘//cdn.mxpnl.com/libs/mixpanel-2.2.min.js’;d=c.getElementsByTagName(“script”)[0];
d.parentNode.insertBefore(b,d);a._i=[];a.init=function(b,c,f){function d(a,b){
var c=b.split(“.”);2==c.length&&(a=a[c[0]],b=c[1]);a[b]=function(){a.push([b].concat(
Array.prototype.slice.call(arguments,0)))}}var g=a;”undefined”!==typeof f?g=a[f]=[]:
f=”mixpanel”;g.people=g.people||[];h=[‘disable’,’track’,’track_pageview’,’track_links’,
‘track_forms’,’register’,’register_once’,’unregister’,’identify’,’alias’,’name_tag’,
‘set_config’,’people.set’,’people.increment’];for(e=0;e<h.length;e++)d(g,h[e]);
a._i.push([b,c,f])};a.__SV=1.2;})(document,window.mixpanel||[]);
mixpanel.init("9659875b92ba8fa639ba476aedbb73b9");

…read more
Source: FULL ARTICLE at DailyFinance