Financial news: 01/17/2013

• Bloomberg: Business CEO's advocate higher entitlement age
• CNBC: GOP led sequester just as "bruising" as debt ceiling
• AP: JP Morgan CEO given $11.5 million salary reduction
• DOL: Jobless claims 01/12 335K ↓37K; avrg 359.25K ↓6.75K
• Fox: DJI pressured by FAA grounding of Boeing dreamliners
• CNN: Social Security due 02/15-03/15 adds up to $61 bln
• FRB: Wage, inflation & employment trends unchanged 
• BI: Haggling is allowable when circumstances permit
• MN: "Low inflation" to accommodate loose monetary policy
• NYT: Walmart buying $50 bln more U.S. goods over 10 yrs
• BBC: Germany gold storage to rise over 17% by 2020
• Reuters:World Bank '13 global GDP growth estimate ↓ .6%

How ill-gotten gains are legally bypassed

As evident in the infographic below, investment banks and the Treasury Department make money via an unspoken collusion of rewarding ill-gotten gains via the guise of  economic stewardship. One need not look far to see how the Securities and Exchange Commission, and a seemingly weak or soft-handed judiciary has fallen short of firm financial regulation countless times.

In the past, the SEC has even admitted as much per the New York Times. Steve Denning, a contributor to Forbes magazine reiterates the problem that big banks are still getting away with risky derivatives trading that has the potential to cause another financial meltdown. Why? The reason, according to another NYT article by Gar Alperovitz, is that Wall Street is too big to regulate. However, the lucrative fines that are redistributed to the Treasury and cost-benefit of the fines to financial institutions offer another reason, specifically financial incentive.

Source: Wall Street Crimes: What Financial Advisors Don't Tell You via Infographic File: Infographics and Data Visualization

Financial news: 01/16/2013

• NYT: Fitch implies support for unlimited U.S. debt ceiling
• AP: Housing prices are forecast to rise 6% in 2013
• NY Fed: Business condition in NY near 2008-'09 levels
• BI: Cash-flow opportunity cost unaccounted in stock prices
• CNBC: Large economies deliberately devaluing currency
• MW: Facebook's active users fell by 1.4 million in Dec.
• Commerce Dept.: Retail sales for 2012 ↑ 5.2% over '11
• Reuters: Holiday retail sales were 1.1% short of forecast
• BBC: Yr over yr German GDP growth ↓ 2.3% in '12
• CNN: China's gvnmnt. is paying for economic recovery 

Financial news: 01/15/2013

• CNBC: Americans who work past 75 up 76.7% in 20 yrs
• Zero Hedge: J.P. Morgan has laid off 529 Brooklyn bankers
• AP: Weaker demand for iPhone 5 lowered Apple stock Monday
• CNN: Employment in nursing difficult despite industry growth
• Reuters: Barclays & Deutsche Bank to cut banker bonuses 20% 
• Bloomberg: Small-business losing market share in U.S. economy
• MN: Employment must grow for Fed easing to avoid inflation
• NYT: Start up capital from angel investors to shrink by $1 billion
• Fox: Increased $100 bill production marks rise in black markets
• BBC: Industrial output in Eurozone down .3% in November

The secret to taking control of your pension

By Phillip Bray

One of the most common complaints about pensions is the lack of control investors have; this can cause two main issues.

Firstly, in our experience, most people who actually do pay into a pension simply make their monthly contributions and pay little or no attention as to where the money is invested, then wonder why it’s not performed well and they have a lower income in retirement than they expected.

The second group doesn’t even get as far as making contributions, they simply read often misleading articles in the press, about the ‘lack of control’ pension investors have and don’t bother. This certainly means they miss out on tax relief and may mean they are not receiving valuable employer contributions, both of which could help them achieve their retirement goals.

First things first, advice or DIY?

So, how do you take control over your pension? Well, there are a few ways, firstly though you need to decide what type of investor or saver you are.

The first group of people, perhaps because they don’t have the time, don’t know enough or simply want some help, take advice. The second group are DIY investors, in other words they want to make their own investment decisions and not pay for an adviser to help them.

Take some time to think about which group you are in, do you feel comfortable making your own investment decisions? Do you have the time and the knowledge to manage your own pension investments?

If the answer to these questions are a resounding “no!” then you probably need some advice, preferably from an independent financial adviser. Now that doesn’t mean you can’t have some control. Choose an adviser who offers an ongoing service and who will allow you to be part of the decision making process; the best adviser / client relationships are a collaboration rather than a dictatorship.

Taking advice has many merits and if the adviser does his or her job properly it should mean you don’t end up with any nasty surprises in retirement. However, it is the DIY investor who can really take control over their pension.

Goal setting

The first thing any DIY investor needs to do is take some time to think about his or her goals.  When will retirement start? How much income is needed? Will any capital be needed? What state pension will be received? These are all really valuable questions and a great starting point.

Next start thinking about how much risk you are prepared to take. As a rule of thumb the more risk you can tolerate the more you will invest in stocks and shares as well as other riskier assets, the less risk you want, the more you will look at cash and safer investments.

You then need to make two key decisions, where to invest and who to hold your pension with; these are two very different questions.

The pension provider dictates the charges you will pay, the service you receive and importantly, the types of investment you can buy. For example, if you just want to buy funds the a Personal Pension or a Stakeholder Pension may be sufficient for your needs, but if you want to buy other assets such as shares, EFTs, deposit accounts or even property, you will probably need to use a SIPP (Self Invested Personal Pension).

Although not for everyone, most DIY investors really start to feel in control of their pension when they open their first SIPP. You are in control, you can buy a far wider range of assets (within the rules of course, some assets are strictly forbidden in SIPPs), no one is making the decisions on your behalf, you really are in the driving seat.

Of course there are downsides, even the best investors make mistakes and losing money from time to time is inevitable, but crucially you are in control, which might be the difference between actually planning for retirement and not.

Phillip Bray writes for Investment Sense and looks at how using a SIPP can help you regain control of your retirement planning.

Financial news: 01/14/2013

• Fox: Debt ceiling spurs calls for executive unilateralism
• OQ: Tax system failing; market participants like "lemmings"
• CNN: Financial sector to boost Q4 S&P 500 earnings 2.2%
• CNBC: Number of pawn shops up by 56.5% since 20'07
• Reuters: Consumer spending declining after payroll tax
• BI: Low ad revenue leading Time, Inc. to layoff 700 of 8,000
• Commerce Dept: Trade deficit up $6.6bln on lower exports
• Money News: Federal budget deficit to top $1 trln despite taxes
• Bloomberg: Third U.K. recession possible after industry data
• NYT: China's inflation double official rate per economists
• ZH: China's low consumer spending linked to no pension system
• BBC: Japan government approves $116 bln in stimulus

10 hilarious insurance claims

By Candy Wright

Accidents on the road happen all the time; one of your first steps when you do have an accident is to obtain all of the other driver’s information, for example their phone number and insurance details.

Another thing you need to do when you have had an accident is contact your insurance company and put in a claim. Letting your insurance company know exactly what has happened is important; however, some people have attempted to make some absolutely ridiculous, yet hilarious, insurance claims. Here are 10 of the funniest insurance claims.

1. The pedestrian got hit by the car in front and he was then hit again, by me, when he got up – that was an unlucky day for that pedestrian.
2. I was not aware that the speed limit was in affect after midnight – so when did you think it was in affect?
3. When the car in front of me stopped at the red light, hitting him was my only option – stopping would have been a fairly good option too.
4. I hit a pedestrian to avoid hitting the car in front of me – they were the only two options?
5. When I put my head through the window, I then realised it was in fact closed – ouchhh!
6. I collided with a bus when I left for work; the bus was early by five minutes – So, because the bus was 5 minutes early, you don’t have to look for any oncoming vehicles?
7. In an attempt to kill the fly in my car, I crashed into a telephone pole – surely there was an easier way to kill the fly.
8. The other car crashed into me without any warning – you make it sound like he intended to do it!
9. Neither party is really to blame for the collision; however, if the other driver was more aware, then the collision would never have occurred – so really, it was the other driver’s fault.
10.  A pedestrian went underneath my car after he hit me – I think we should hear the pedestrian’s side of the story.

These are just 10 of the best and most hilarious insurance claims; there are so many more that are really just plain stupid. They do give us a good laugh though! Just remember, that if you ever have to make a claim, you should make sure it is completely understandable to avoid any potential misunderstandings. Also, by making a sensible claim, you can avoid having your claim published in an article like this!

About the Author: Candy Wright enjoys writing about anything lifestyle related, including insurance claims. You never know what is going to happen on the road, so you should always be prepared; one preparation Candy suggests you should make is writing a will, so contact FB Wills Direct just to ensure the best for your family.