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Jul 26, 2011

Analysis: Advisers say time is right for high-yield stocks

WASHINGTON (Reuters) – Prompted by a host of financial and economic developments, a growing number of investment advisers are steering their clients toward dividend-paying stocks.

“We are resolute in our belief that large, high-quality, dividend-paying companies, many of which are hiding in plain sight, offer a compelling investment option for growth and income,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, wrote in his latest memo to investors.

Jul 20, 2011

Stern Advice: Is it 1999 all over again for tech stocks?

WASHINGTON, July 20 (Reuters) – I wasn’t one of those
people who lost a bunch of money when dot-com stocks blew up in
2000, but to be honest, that’s because I didn’t make a lot of
money in the bubblicious run up, either.

I still remember naively waiting for new companies like
Amazon, AOL and (remember that one?) to show a profit
before jumping in.

Jul 19, 2011
via Reuters Money

Consumers buy the wrong credit scores, new agency warns


At least some of the millions and millions of dollars that consumers shell out to buy their credit scores could be misspent, and possibly even damaging, the Consumer Financial Protection Bureau suggested in a report released today.

Consumers spend more than $1 billion a year buying credit reports and credit scores from credit rating agencies or other online scoring sites, the study said.

Jul 14, 2011
via Reuters Money

Financial disclosures can make advice worse: Yale study


Washington watchers are sure to see a lot of one particular word in the months to come: disclosure.

The Securities and Exchange Commission is preparing a fiduciary standard for brokers that is expected to require them to disclose their financial conflicts. The Consumer Financial Protection Bureau plans to launch next week with a plan for new mortgage term disclosure forms. And Elizabeth Warren, the president’s adviser who set up that agency, has given speech after speech in which she discusses the virtues of requiring clear disclosures as a mode of financial regulation.

Jul 13, 2011

Stern Advice: Here comes the CFPB

WASHINGTON, July 13 (Reuters) – The much vaunted and feared
Consumer Financial Protection Bureau officially opens for
business next week.

When it does, it will most likely have a laundry list of
consumer issues to manage, a smaller budget than it asked for,
and an empty chair where its director should sit.

Jul 12, 2011
via Reuters Money

Now or later? AARP’s new Social Security calculator


When should you turn on the tap that gets your Social Security benefits flowing?

If you’ve got an itchy finger you might want to check out the brand-new calculator unveiled today by the AARP. It’s a clear and multi-featured tool that professes to help workers and retirees decide when they should start taking benefits. But what it really does is encourage everyone to wait as long as possible before they start collecting.

Jul 7, 2011
via Reuters Money

New free credit scores: What you need to know now


There’s an irony about the new credit score disclosure rules issued by the Federal Reserve Board on July 6, and this is it: Would-be borrowers who are most likely to get their credit scores for free are still the people who may find it advantageous to buy their scores.

The borrowers who won’t get their scores may find they don’t need to buy them, either.

Jul 6, 2011

Stern Advice: How to help your kids buy a house

WASHINGTON (Reuters) – In some circles, the graduation gift du jour is a Manhattan apartment, according to a recent New York Times story. Note to my kids: Sorry, we are not in those circles.

Still, it would be nice. Given current market conditions, a compelling argument could be made for helping your kids buy their first home.

Jul 5, 2011
via Reuters Money

Life insurance: Will your heirs get what you’ve paid for?


Gotta love those life insurance companies.

According to a Wall Street Journal report, some of them will scour state mortality lists to make sure they aren’t paying out any lifetime benefits (such as from annuities) to people who have died. But they won’t bother to check those lists for life insurance policyholders whose beneficiaries may have some money coming to them.

“That’s not their job,” said fee-only insurance consultant Peter Katt. “It’s in their business interest to avoid paying death claims.”

Jul 1, 2011
via Reuters Money

Retirement solvency “a growing challenge” says GAO


The risk that retirees will outlive their assets is a growing challenge, the federal Government Accountability Office said in a not-so-newsy report released on Friday. To meet that challenge, experts advise retirees to delay the start of their Social Security benefits, avoid spending down their nest eggs too fast and consider using annuities in some situations, says the study.

The report could be used to nudge forward policy initiatives already under consideration that would encourage companies to offer annuity choices to their retiring workers. The report was requested by Senator Herb Kohl, chairman of the Senate Special Committee on Aging. He has cosponsored a bill, called the Lifetime Income Disclosure Act, that would require 401(k) statements to include an annuity equivalent number — the amount of monthly income that the savings accumulated would support.

    • About Linda

      "Linda Stern is an award-winning personal finance journalist who loves to write about how the big picture affects your pocketbook. A former contributing editor at Newsweek magazine and a long-time Reuters columnist, Stern covers everything from credit cards to retirement planning to investing. As a Washington-based correspondent, she sneaks in as much tax and economic policy as her editors will allow. She tweets at And when she expresses opinions, they are her own and not those of her employer."
      Joined Reuters:
      October 2010
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