Sunday, January 29, 2012

2011 GDP: 1.7% - Business Insider

That's the final, pathetic growth number for 2011.

From the just-released GDP report:

Real GDP increased 1.7 percent in 2011 (that is, from the 2010 annual level to the 2011 annual level), compared with an increase of 3.0 percent in 2010.???????

The increase in real GDP in 2011 primarily reflected positive contributions from personal consumption expenditures (PCE), exports, and nonresidential fixed investment that were partly offset by negative contributions from state and local government spending, private inventory investment, and federal government spending.? Imports, which are a subtraction in the calculation of GDP, increased.

Not exactly a barnburner.

Now see...

Source: http://www.businessinsider.com/2011-gdp-2012-1

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Saturday, January 28, 2012

Scattered investing, scattered results | Finance Explained

In Alberta, a couple we?ll call Wilt, 36, and his wife, Susan, 44, are thriving with a total take-home income of $ 8,000 a month. Both self-employed as consultants ? he in management, she in health care ? they have come to a point in their lives in which they have a good deal of unencumbered cash flow. Their net worth, about $ 229,000, is modest, but they are planning far ahead. Their goals ? educate their five-year-old daughter and plan a retirement.

Family Finance asked Lenore Davis, a registered financial planner with Dixon, Davis & Co. in Victoria, to work with Wilt and Susan. ?They are scattered in terms of where they deploy their money,? Ms. Davis says. ?They do indeed need a plan to get them to their retirement goal while looking after their daughter?s educational needs.?

Financial management

For now, Susan and Wilt need to reduce their debts and to rationalize their investments. To do that, they have to resist the urge to increase their personal spending parallel to their increased income. Their method has been to run all their income through their personal corporation and pay themselves as needed. Their $ 8,000 monthly draw leaves $ 983 a month unspent. They can use it for their child?s RESP ? $ 2,500 a year, which will attract $ 500 a year from the Canada Educational Savings Grant ? and putting $ 8,000 into lump-sum mortgage reduction on each anniversary due date.

After taking their draws from their corporation and allowing for deductions, there should be $ 60,000 in their company each year to be invested. The money can be left inside the company or flowed out to Wilt and Susan so that they can invest it personally.

Corporate income tax rates ? federal and provincial ? on active Alberta small-business income are low at 14%, compared to personal income tax rates in their bracket of 32% on salaries. But investment income from money left in a corporation is taxed at 45%. So the best thing for now is to distribute the income to the couple as dividends, Ms. Davis advises. In time, they should consider adding to salary to boost Canada Pension Plan benefits, she adds. Dividends are not salary or wage income and do not generate CPP credits.

Any payouts of surplus cash can be used for RESPs, mortgage paydowns, TFSA contributions or filling RRSP space. Wilt has $ 67,000 of unused RRSP space, Susan $ 86,000 of space.

Retirement planning

In 29 years, when they are ready to retire, if they have built up CPP benefits at the maximum rate, currently $ 11,840 a year, they can add their entitlement to full Old Age Security benefits, currently $ 6,480 a year, to build a base of public pensions of $ 36,640 a year in 2012 dollars. Their present spending net of school tuition, saving and debt repayment, about $ 4,000 a month, or $ 48,000 a year after tax, would be approximately $ 74,000 before 35% average tax.

To achieve that level of income, they would have to add $ 37,360 of annual investment income. At 65, when Wilt and Susan begin their retirement, they would need capital of $ 622,700. That would produce the required annual supplement to public pensions, assuming all their income and capital would be used up by the time Wilt is 90. To get to that level of capital, they will have to save $ 11,220 a year for the next 29 years and achieve a 3.0% real rate of return.

The couple already saves more than $ 14,000 a year in RRSPs and taxable savings, so reaching the target should be no problem. Yet Wilt and Susan have shown a knack for investing in risky undertakings with sad outcomes. For example, they have $ 100,000 in a real-estate venture that has gone into receivership. The couple needs to switch investment methods from the concept of adventure to a steady system for diversifying assets and estimating dependable returns from stocks, bonds and perhaps real-estate mutual funds or exchange-traded funds that have strong and rising payouts. Their allocation to bonds should grow to perhaps 25% of total investments within the next few years and rise to 65% by retirement age, Ms. Davis suggests.

Investing in security

The final issue in Wilt and Susan?s future is their view of the purpose of investments. When they had little money, they invested for the thrill of it. Now that they have substantial incomes and substantial assets, they must act like good managers for themselves and for their child.

To avoid the risk of buying the wrong stock or bond, commodity or parcel of real estate, the couple can use low-fee exchange-traded funds with diversified assets. Over a period of 29 years, ETF fees that would average about 0.50% a year will tend to outperform actively managed mutual funds with fees five times higher. The 2.0% annual saving will translate into a 58% value retention over 29 years. Competent managers of higher-fee mutual funds could boost returns and justify their fees, but the odds of finding mangers who can beat the market for nearly three decades are poor.

Wilt and Susan could increase their financial security by purchasing disability insurance. Disability coverage prices vary widely. For payments of $ 5,000 a person a month that begin 90 days after a reported injury or illness, Wilt would pay $ 125 a month to age 65 and Susan would pay $ 243 a month to age 65. The premiums could be paid by their company as a taxable benefit to the employees.

?This couple is in a great place to make their financial situation secure,? Ms. Davis says. ?By taking concrete money-management measures, they can stop worrying about past losses and focus on a comfortable future lifestyle and a solid retirement plan. A relatively small amount of planning and a move to a sound investment style with reasonable costs should get them to a comfortable retirement.?

? Need help getting out of a financial fix? E-mail andrewallentuck@mts.net for a free Family Finance analysis.


From:Financial Post | Business ? Personal Finance

Source: http://financeexplained.info/2012/01/28/scattered-investing-scattered-results/

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Video: The Holocaust remembered

The world is marking International Holocaust remembrance day. In Great Britain there was a promise never to forget the genocide. ITN's Sue Saville reports.

Related Links:

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Source: http://video.msnbc.msn.com/nightly-news/46164530/

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Friday, January 27, 2012

Stocks move lower after new growth figures

By msnbc.com news services

Stocks moved lower Friday after data showed gross domestic product for the fourth quarter was slightly below Wall Street expectations.

Investors were also looking ahead to an anticipated an imminent conclusion to Greek debt talks.

EU Economic and Monetary Affairs Commissioner Olli Rehn said talks with private creditors on restructuring Greek debt are "very close" to closing. Athens needs a deal to secure further international aid and so avert a disorderly default when a major bond redemption falls due in March.

In earnings news, Ford reported a lower-than-expected fourth-quarter profit due to higher commodity costs and losses in its automotive operations in Europe and Asia.

Reuters contributed to this report.

Source: http://bottomline.msnbc.msn.com/_news/2012/01/27/10250307-stocks-move-lower-after-new-growth-figures

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Thursday, January 26, 2012

New U.N. showdown with Russia over Syria looms (Reuters)

DAMASCUS (Reuters) ? Britain and France joined forces with Arab allies on Wednesday to push the U.N. Security Council to back an Arab League call for Syrian President , Bashar al-Assad to step aside, setting the stage for a showdown with Syria's ally Russia.

"The U.N. Security Council must support the Arab League's courageous decisions which are trying to end the repression and violence in Syria and find a solution to the political crisis," French Foreign Ministry spokesman Bernard Valero said.

The Security Council could vote as early as next week on a new draft resolution, which delegates from Britain and France are crafting in consultation with Qatar, Morocco, the United States, Germany and Portugalenvoys said. The new resolution replaces a Russian draft Western diplomats said was too weak.

U.S. President Barack Obama said in his State of the Union address on Tuesday that Assad would "soon discover that the forces of change can't be reversed."

It remains unclear whether Russia - which together with China vetoed a European-drafted resolution in October that condemned Syria and threatened it with sanctions over its 10-month crackdown on pro-democracy demonstrators - is prepared to once again to block council action on Syria.

"We hope Russia won't use its veto against the Arab League, which is what it would be this time," a U.N. envoy said. "They'll put up a fight. There will be negotiations. We'll see."

Russia's Foreign Minister Sergei Lavrov said his country remained opposed to sanctions on Syria and reiterated its opposition to military intervention. But the Western-Arab draft, obtained by Reuters, calls for neither military action nor sanctions, but for the council to support the Arab League.

'TERRORISTS'

The head of the Syrian Arab Red Crescent in the northern town of Idlib was shot and killed on Wednesday, the International Committee of the Red Cross said, in an attack which Damascus blamed on "terrorists."

State news agency SANA also said a priest was killed by "terrorists" while helping a wounded person in the city of Hama.

The government says it is fighting foreign-backed Islamist "terrorists" who have killed 2,000 soldiers and police. SANA said 30 more were buried in the last two days.

The British-based Syrian Observatory for Human Rights said seven other people were killed on Wednesday. One was killed by soldiers surrounding the Bab Qabli district of Hama and a woman died after a shell landed on her house near the town of Qusair, 10 km (6 miles) from the Lebanese border, it said.

It also reported clashes between army deserters and state soldiers in the rebellious province of Idlib that disabled three armored vehicles and killed or wounded six soldiers.

The revolt in Syria was inspired by other uprisings that have toppled three autocratic Arab leaders over the past year and the bloodletting has battered Assad's standing in the world.

The Arab League has suspended Syria's membership.

Russia, one of Syria's few allies, continues to sell weapons to Damascus, which European and U.S. officials have criticized. Iran, at loggerheads with Western powers over its disputed nuclear ambitions, is also a strong ally of Assad.

GULF ARAB MONITORS LEAVE SYRIA

More than 50 Arab League observers from Gulf Arab states left Syria on Wednesday after their governments said they were certain "the bloodshed and killing of innocents would continue."

Their colleagues in Damascus, about 120 strong, pledged to continue the monitoring mission, now extended until February 23, to verify Syria's compliance with an earlier Arab peace plan.

"The departure of the GCC (Gulf Cooperation Council) countries will not have an impact on the mission's work. We are all professionals here and we can do the job," said a senior Arab monitor, who asked not to be named.

"We need more monitors of course and more will come soon to replace those who left," the monitor said.

Syrian opposition groups have accused the observer mission, which began on December 26, of giving Assad diplomatic cover to pursue a crackdown on protesters and rebels in which more than 5,000 people have been killed since March, by a U.N. tally.

Arab League chief Nabil Elaraby and Qatari Prime Minister Hamad bin Jassim al-Thani, who heads the League's committee on Syria, wrote jointly to U.N. chief Ban, setting out their plan for a political solution in Syria and requesting a chance to brief the Security Council soon.

British Ambassador Mark Lyall Grant told reporters in New York that the Arab League briefing could take place as early as Monday. Council diplomats said a vote on the new draft resolution could follow shortly thereafter.

The new draft resolution says the Security Council "supports ... the League of Arab States' initiative ... to facilitate a political transition leading to a democratic, plural political system ... including through the transfer of power from the President and transparent and free elections."

It falls short of making compliance with the Arab plan legally binding. But it does ask U.N. Secretary-General Ban Ki-moon to report to the council every 15 days on Syria's compliance with the resolution, which would formally put it on the Security Council's agenda.

Russia has repeatedly said it does not want Syria to become another Libya, where Moscow contends that NATO misused a Security Council mandate to protect civilians as a vehicle for "regime change."

But Western diplomats said that Russia might find it difficult to use its veto against a resolution that is simply intended to provide support for the Arab League initiative.

(Additional reporting by Edmund Blair and Ayman Samir in Cairo, John Irish in Paris, Dominic Evans in Beirut and Louis Charbonneau in New York; Writing by Alistair Lyon and Louis Charbonneau; Editing by Robert Woodward and Xavier Briand)

Source: http://us.rd.yahoo.com/dailynews/rss/world/*http%3A//news.yahoo.com/s/nm/20120126/wl_nm/us_syria

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Oscar nominations announced for lead actress (AP)

BEVERLY HILLS, Calif. ? The 84th annual Academy Award nominations for lead actress in a motion picture have been announced in Beverly Hills, Calif., by the Academy of Motion Picture Arts and Sciences.

The nominees announced Tuesday morning are: Glenn Close, "Albert Nobbs"; Viola Davis, "The Help"; Rooney Mara, "The Girl with the Dragon Tattoo"; Meryl Streep, "The Iron Lady"; Michelle Williams, "My Week with Marilyn."

The Oscars will be presented Feb. 26 at the Kodak Theatre in Los Angeles, hosted by Billy Crystal and broadcast live on ABC.

Source: http://us.rd.yahoo.com/dailynews/rss/movies/*http%3A//news.yahoo.com/s/ap/20120124/ap_en_mo/us_oscar_nominations_actress

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Wednesday, January 25, 2012

Trial opens for last officer in Katrina shootings (AP)

NEW ORLEANS ? Jury selection is under way in the trial of a retired New Orleans police sergeant charged with helping cover up deadly shootings of unarmed residents on a New Orleans bridge after Hurricane Katrina.

The trial starting Monday for Gerard Dugue is expected to last two weeks.

Dugue allegedly submitted a false report to make it appear police were justified in shooting six people, killing two less than a week after the 2005 storm.

U.S. District Judge Kurt Engelhardt ordered separate trials for Dugue and five other current or former officers who were convicted in August of civil rights violations stemming from the shootings.

Dugue isn't charged in the shooting. He didn't get involved in the case until several weeks later, when the department assigned him to help another sergeant investigate.

Source: http://us.rd.yahoo.com/dailynews/rss/crime/*http%3A//news.yahoo.com/s/ap/20120123/ap_on_re_us/us_katrina_bridge_shootings

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