According to a recent study by LIMRA, about half of the United States is not saving for retirement at all. The 49% who arent contributing to any retirement plan need an investment strategy and discipline to help them. Can exchange traded funds help?

The findings from this survey were disturbing, given that people will increasingly need to rely on their personal savings to make ends meet in retirement, Matthew Drinkwater, associate managing director at LIMRAs retirement research division said. [Adviser ETF Usage Rose 10% Last Year]

Whats more, people ages 18-34 are the least likely to save, with about 54% of the 2,697 U.S. citizens that were surveyed not contributing to a 401(k) or IRA, reports Blake Ellis for CNN Money. [An ETF Trend Following Plan for All Seasons]

In order to have the adequate savings necessary to meet their financial needs in retirement which could last 20 or more years it is critical that these individuals begin saving systematically early in their working years, Drinkwater said.

Furthermore, investors that did plan for retirement and have a portfolio arent that much better off these days. Investors that put capital into a broad-based large-cap benchmark like the Standard and Poor 500 to grow their retirement savings most likely have not seen their portfolios budge. [ETFs Face 401(k) Hurdles]

Nevertheless, a strict investment disciple is necessary for those that are going to get into the market. A strategy with a goal in mind can also help investors plan a portfolio. Resolve to stick to your discipline. One way to avoid pulling every last hair out of your head in frustration over the uncertainty is to have a plan and adhere to it no matter what.

Currently, Charles Schwab is working on a 401(k) retirement plan that is ETF-based. An all-ETF portfolio for retirement can be ideal, due to the low cost nature of the funds and the added transparency.

As of right now, most 401(k) investors can buy ETFs if their plan has a brokerage option. Around 38% of plans have this option, but only about 2.4% of investors participate in the choice, Jeanne Thompson, vice president of retirement insights at Fidelity mentioned. There is no time like the present to begin planning for the future.[ETFs Breaking into 401(k), 529 Savings Plans]

Tisha Guerrero contributed to this article.

Read the original here:
ETFs and Retirement: You’re Not Saving Enough

Want to terrify yourself, carefree 20-something? Divide 1million by 40 the number of years until retirement and youll see a nice round 25,000. Thats how much, in dollars, youd need to save each year if you were stuffing money under a mattress to save your $1million retirement nest egg. Thankfully, this is not how you save for retirement.

The calculation of I need $1 million dollars by 65, so Ill divide by 40 ... is dramatically off, said Antwone Harris, a certified financial planner with Charles Schwab in the District. Its not accounting for compounding interest or rates of return.

But those compounding interest rates mean one complicated thing: You must invest your savings as soon as possible. Why? According to Ameriprise Financial, waiting even one year can have dramatic effects. If you invest $5,000 every year beginning at age 30 instead of 31, you will have $109,000 in additional savings, assuming an 8percent compounded annual interest rate.

So how much should you invest? What will you need for retirement? And how important is it to start investing every spare penny you make in your 20s? Too many factors go into the calculation to generalize (and theres not enough space here to explain a complex mathematical formula), so we used CNN Money and Charles Schwab Moneywise retirement calculators to get ballpark figures of what you should be saving. Read. Weep. Then invest.

If youre 25

How much will I need to invest each year for retirement?

Low figure: Its assumed that youll need 80 percent of your pre-retirement income when you retire at 65. Lets say you make $50,000 a year. If youre 25 and have no savings, CNN Money says you should be saving $4,550 annually, adjusted for 2.5percent inflation. (This calculator assumes you will be receiving Social Security benefits. More good news: Some experts do not think Social Security will exist in 40years.)

High figure: Charles Schwab MoneyWise Calculator offers a higher figure. If youre 25 and plan to retire at 65 with 80 percent of your pre-retirement income, and expect to receive Social Security benefits, you need to save $6,900 annually.

How much will I need for retirement? CNN Money assumes you will need $1.9million ($572,283 in todays dollars) to retire at 65 years old, with a life expectancy of 85. Charles Schwab estimates you will need $1.8 millionin future dollars.

What should I save each paycheck? If youre paid every two weeks, you should save $175 to $275 each pay period to meet the estimated goal.

See the original post:
Deal Hunter: Retirement savings shocker

LAS VEGAS, NEVADA--(Marketwire -05/17/12)- Sefe Inc. (SEFE) is mounting another strong performance today as it builds on an impressive 30% gain in yesterday's trading session. The stock which has been fumbling and tumbling in recent weeks now appears to back on track and making solid gains once more. SEFE will most likely need to string together a few more good days before most investors jump back in, but this could be just the opportunity, that gutsy and smart investors have been waiting for. The stock is firmly off the bottom and shooting up, what better time to get back in?

The art of successful investing is simple in theory and difficult in practice but it basically boils down to buying low and selling high. When proper entry and exit points are observed, success is the result. With our approach you will eliminate the guesswork and play the percentages. Investing should be fun and profitable. With SignUpStocks you can game the system and turn the penny market into your very own personal casino. Get the winning edge by visiting our website at: SignUpStocks.com.

- SignUpStocks.com Disclosure -

SignUpstocks.com is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell any securities. SignUpStocks.com is a wholly owned entity of a financial public relations firm. Please read our report and visit our website, SignUpStocks.com, for complete risks and disclosures.

Read the rest here:
Another Strong Performance for Sefe Inc. (SEFE) as Stock Builds on Yesterday's Impressive 30% Gain. Where Do We Go ...

First you were holding it wrong. Now Apple says, don't hold it at all.

Siri is a driving force behind Apples record-breaking iPhone 4S sales, but not everyone is impressed with the Cupertino, Calif.-based companys virtual assistant. Apples TV ads depict Siri as an impressive, fast-acting feature that intelligently offers help or information in responds to a wide range of and commands.

A number of users have found that Siri is not as helpful as Apple leads consumers to believe, however, and the company has been hit with a number of lawsuits as a result.

- Apple attorneys

Apple was sued in March by a New York man, Frank Fazio, who alleges that Apples Siri commercials are misleading and deceptive. On many of Apples television advertisements, individuals are shown using Siri to make appointments, find restaurants, and even learn the guitar chords to classic rock songs or how to tie a tie, Fazios complaint reads. In the commercials, all of these tasks are done with ease with the assistance of the iPhone 4Ss Siri feature, a represented functionality contrary to the actual operating results and performance of Siri.

Apples recommendation to Fazio: buy a different phone.

While Fazio and the rest of the plaintiffs named in the suit were quick to complain, Apple points out that none of them bothered to make use of Apples 30-day return policy and purchase a different phone. Apple also makes sure to point out that the iPhone 4S launch was its most successful iPhone launch ever.

[The plaintiffs] offer only general descriptions of Apples advertisements, incomplete summaries of Apples website materials, and vague descriptions of their allegedand highly individualizeddisappointment with Siri, Apple attorneys stated on Wednesday, The Wall Street Journal reported. Tellingly, although Plaintiffs claim they became dissatisfied with Siris performance 'soon after' purchasing their iPhones, they made no attempt to avail themselves of Apples 30-day return policy or one-year warrantywhich remains in effect.

The statement continued, Instead, they seek to take an alleged personal grievance about the purported performance of a popular product and turn it into a nationwide class action under Californias consumer protection statutes. The Complaint does not come close to meeting the heavy burden necessary to sustain such claims.

Apples lawyers have asked the Northern District court in Oakland, California to dismiss the class-action lawsuit.

The rest is here:
Apple Shrugs Off Lawsuit

Harvard Business School Professor Clayton Christensen, one of the world's leading business thinkers best known for The Innovator's Dilemma, has just put out another book, "How Will You Measure Your Life?"

He uses business case studies like how the Honda Super Cub took over America to show people how they can achieve personal success.

See our interview with Christensen below, edited for clarity.

On how to be successful

If you dont have any idea of what kind of person you want to become, its all pointless. You really need to figure out, "Whats the purpose of my life? What kind of person does God want me to become? How do I need to invest my time and energy?" Without that youre in a boat without a rudder.

And not go to jail like his former HBS classmate Jeffrey Skilling

Just hoping that youll become a certain kind of person isnt enough. Hold to your standards all of the time. Every time you have an opportunity where you can depart even "just this once under this circumstance" well, your life is just an unending stream of "extenuating circumstances." Everyone decides "just this once."

To become the kind of person you want to become, youve got to have discipline. It's easier to keep to your standards 100 percent of the time versus 98 percent of the time.

On how to manage your time

Most people have never thought through how they're going to allocate their time. You need to make a decision in advance. I never work on Saturday. I dont ever work on Sunday either. If you make that decision on a macro level once, when all the incremental decisions arise on an incremental basis, life is easier.

Original post:
Harvard Professor Clayton Christensen Shares His Advice On How To Be Successful

Most students that have taken the certified financial planner (CFP) board exam agree that the case studies are the most difficult and important portion of the test. The exam itself is 10 hours long, with one four-hour session on Friday and two three-hour Saturday sessions. The exam consists of 285 multiple-choice questions, with one case study per session. While the total number of questions relating to the case studies will vary from one exam to another, approximately 20% of the exam will consist of case study questions. This amounts to 55 or 60 questions, making it absolutely necessary that students know how to analyze and reason through the case studies in order to pass the exam.

SEE: Studying For The CFP Exam Case Study FormatCase studies are often placed near the end of each section of the exam. Each will begin with at least eight to 10 pages of information describing the hypothetical client's situation. This includes a page of demographic information listing all of the people involved (usually a family or business, or both), their ages, physical and mental health status, plus any relational conflicts or difficulties between each character.

Often these studies will incorporate a divorce or other rift within a family, or else have a spendthrift child that must be dealt with. The case study will also include basic cash flow and balance sheet pages that outline all of the client's personal and business assets and liabilities, income and expenses and every type of insurance coverage. The assets will be further broken down into the client's investments and retirement accounts, and the income ledger will show each investment's rate of return.

In addition, the case study will illustrate the estate breakdown, showing all relevant wills, trusts and other legal documentation. If there is a business, a complete list of all employees and their ages is usually given, along with its cash flow and balance sheet and the general outlook for the future of the business. After all of this reading, you will be asked 15-20 questions pertaining to the information presented.

SEE: Why You Should Draft A Will

Knowledge Alone Isn't Enough The CFP board exam requires much more than mere familiarity with the course material. The student must also be able to evaluate, synthesize and apply that knowledge correctly when answering the questions. This is true even with the non-case study questions, but these questions will often focus on one specific issue or topic. Case studies effectively force the student to proactively determine exactly what rule or topic pertains to the information presented in the informational breakdown.

Unlike the standalone questions, case study questions often do not focus on a specific topic, such as asking whether the clients presented in the study are eligible to contribute to Roth IRAs. Case study questions frequently force the student to examine much broader concepts, such as whether the client's portfolio has too much risk, or the right kinds of risks. If the student was posed with this question, then he or she must be able to effectively evaluate the client's overall portfolio. This means being familiar enough with the specific characteristics of each investment or type of investment in the portfolio to evaluate, either mathematically or through investment-principle-based reasoning, whether the portfolio is sound or needs to be changed.

This is, of course, only an example. The student will be asked to make several three-dimensional evaluations of this nature in each case study, pertaining to all areas of the client's finances. An estate-planning question could ask the student to evaluate the client's will and trust, which would require the student to be proactively familiar with all of the different types of wills and trusts and know which types would be appropriate for the client in the given situation. An insurance question will force the student to make the same type of evaluation for all of the different types of insurances carried by the client. Investment and retirement questions will often involve computations and a fair amount of number-crunching before real evaluations can be made.

How Do I prepare for this?There are a number of ways that you can improve your chances of succeeding on the exam. While any strategy must begin with an understanding of the format and type of information that will be presented in the studies, this alone will seldom suffice in providing you with the background you'll need to be able to effectively reason through case study questions. A couple of common strategies are outlined as follows:

Read the Case Study Thoroughly As obvious as this suggestion seems, the entire case study must be read and evaluated before attempting to answer any of the questions. The vast majority of the information given in the study will be relevant to at least one of the questions asked. Whenever a divorce or other family issue is presented, questions regarding which type of trust to use are often asked. A careful evaluation of the study's balance sheet information will reveal whether estate taxes will be an issue, and so on. Even seemingly innocuous information can provide critical clues that can be used to answer questions.

See more here:
The Key To CFP Exam Success

By DAVE NICHOLSON | The Tampa Tribune Published: May 18, 2012 Updated: May 18, 2012 - 6:00 AM

It appears likely that Officer Mark Dunnam will continue to be a familiar sight in downtown and other areas.

Police Chief Bill McDaniel gave Dunnam a rousing endorsement in a review of his first year assigned to a beat that includes downtown, midtown and the city's public housing projects.

McDaniel told city commissioners at their May 14 meeting that Dunnam has developed a rapport with business owners and residents.

"He'll talk with anybody, and he takes what he hears and he follows up on it," McDaniel said.

The commissioners seemed inclined to approve funding the position for another year.

Vice Mayor Bill Dodson said he frequently sees Dunnam at community events and around town.

"He's a very personal young fellow," he said.

Other commissioners offered similar words of praise.

The position was created last year using money from the city's Community Redevelopment Agency. McDaniel assigned Dunnam, who has worked for the police department for about three years.

Read the original:
Officer's beat a success, city says

When Estefany Gonzalez was a freshman and failing at Rio Grande High School, she remembers her mothers tears when administrators told the parent that all Estefany did at school was perform poorly or ditch class.

Gonzalez had started her freshman year at South Valley Academy charter school, but then convinced her parents to let her go to Rio Grande, so she wouldnt be separated from her friends.

After her inauspicious start at Rio Grande, however, it wasnt long before Gonzalez was back at South Valley Academy, a highly successful charter school that has just been named third best high school in the state by the magazine U.S. News and World Report.

Gonzalez recalls that before she was allowed to go back to South Valley Academy, she had to write a letter to staff and teachers, stating why she wanted to go back.

I made a lot of bad decisions when I started my freshman year, Gonzalez said. I had disappointed my parents and that hurt me a lot, so I decided I would work hard to make them proud of me again.

South Valley Academy welcomed her back, and shes since made the most of her opportunity.

By her junior year, Gonzalez had come out of her shell, was getting good grades and had become a student leader. She became heavily involved with school and community projects through the schools Community Service Learning Program.

A graduating senior, Gonzalez this year received a scholarship from the Albuquerque Hispano Chamber of Commerce to attend the University of New Mexico, where she intends on studying psychology and pre-med in the hopes of becoming a psychiatrist.

Success stories like Gonzalez are becoming the norm at South Valley Academy since it opened its doors 12 years ago on a cottonwood-spotted campus on Blake SW off Coors.

Founded by Alan Marks and Katarina Sandoval, who is principal of the school, the school has amassed an impressive list of accomplishments and awards, including its recent state third-place standing in the fourth edition of Best High Schools, produced by U.S. News and World Report.

Read this article:
Steady Success At Charter School

By Steve Van Tiem - May 19, 2012 | Tickers: CSCO, GOOG, HPQ, INTC, PFPT | 0 Comments

Steve is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited.

I presented a synopsis of Proofpoint, Inc.'s (NASDAQ: PFPT) competitive advantages and position in the security-as-a-service industry in the previous installment of my "IPO pre-mortem" series. This installment will continue that topic by taking a look at the business strategies that Proofpoint will implement to maintain its competitive advantages and improve its position in the marketplace where it faces intense competition from much bigger rivals. Among these rivals are Intel, Corp. (NASDAQ: INTC), Symantec Corp., Cisco Systems Inc., (NASDAQ: CSCO), Google, Inc. (NASDAQ: GOOG), EMC Corporation, and Hewlett-Packard Co. (NYSE: HPQ).

Proofpoint has identified a set of objectives it seeks to achieve by making substantial commitments to marketing and research & development. Proofpoint's strategy for maintaining its competitive advantages and market position rests on successful achievement of the following objectives: grow the customer base by investing in direct inside and field sales organizations to increase market share; broaden adoption of the platform's functionality with existing customers, a majority of which have licensed only one solution; expand the international component of the business in Brazil, Canada, France, Germany, Japan, Mexico, Singapore, and the United Kingdom; enlarge the reseller and strategic partner channel network; extend the capabilities of the platform via competencies in big data analytics, machine learning, deep content inspection, secure storage, and advanced encryption; and protect against threats from competing communication and collaboration platforms such as instant messaging, web-based collaboration and file sharing applications, social networks, and blog posts.

The company's marketing is aimed at developing and maintaining its brand which is critical to gaining widespread acceptance of its offerings and will support its growth objectives. As a percentage of revenue, Proofpoint spent about 52% on its sales & marketing efforts in 2011 which far exceeds the percentage spent by any of its competitors. Symantec spent 42% followed by 23% for Cisco, 14% for Intel, and 12% for Google. EMC and HP do not break out marketing fromtheir SG&A line items on which they spent 32% and 11%, respectively, in 2011. Proofpoint's research and development is designed to enhance the platform's capabilities and provide a barrier against competing products. In 2011, the company spent 24% on R&D, which, like sales & marketing, far exceeds the percentage spent by its competitors. Intel spent 15% on R&D, followed by 14% for Symantec, Cisco, and Google, with EMC at 11% and HP at 3%. Proofpoint needs to devote such outsized percentages if it hopes to establish a strong brand and offer a competitive solution against its larger competition. Because Proofpoint's revenue base is so much smaller than any of these competitors, its spending on sales & marketing and R&D on a dollar basis is negligible even though it allocates such a high percentage to these efforts. Spending by Proofpoint in 2011 on R&D and sales & marketing together was $62.5 million compared to $3.5 billion for Symantec which spent the least of all the competitors on these items. Clearly, Proofpoint has a very steep path to becoming a significant force in the market place.

The marketing efforts are essential to maintaining Proofpoint's customer service and support advantage but I think that success in research and development will be the key determinant for the company. I also believe that an advantage in customer service and support is a weak position, especially for Proofpoint which competes against companies that are many times larger and can bring many more resources to bear in marketing. More important to the company's future success is its ability to continuously improve its existing platform and develop new ones as the competition in technology is ever evolving. And the company's managers are indispensible factors in how well research and development spending translates to actual technology enhancements and upgrades that support its competitive advantages. More will be said about management's ability and integrity in a future installment of this series.

At this stage in its business life cycle, Proofpoint is making significant commitments to marketing and R&D in an attempt to grow its customer base, broaden adoption of its platform, expand its international segment, enlarge its reseller and strategic partner channel network, extend the capabilities of its platform, and protect against threats from competing platforms. By developing and maintaining its brand and enhancing the platform's capabilities, Proofpoint should be able to maintain its competitive advantages and improve its position in the security-as-a-service marketplace. As the link between shareholders and the managers who will be implementing these strategies, the company's Board of Directors will be the topic of the next installment.

56Steve has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.If you have questions about this post or the Fools blog network, click here for information.

Steve Van Tiem is a member of The Motley Fool Blog Network

11 Published Posts

Visit link:
Proofpoint's Business Strategies; IPO 'Pre-Mortem' Continued

MARQUETTE - Michigan Department of Agriculture Director Keith Creagh met with local officials in Marquette County Friday, providing the basic outline for the agency's proposals to create a rural development fund and a non-ferrous mining severance tax, which would be expected to protect revenue streams for local taxing entities.

"We're trying to put some preliminary information out there," Creagh said.

The basic premise of the department's proposal is instead of having four different tax for non-ferrous mining (real property, personal property, corporate income, and sales and use), a single severance tax (set percentage charge of gross ore sales revenue) would be developed.

The tax would not apply to related milling or other operations unless they are contiguous to the above-ground mining operations. A rural development fund that will support long-term regional economic opportunities would be created.

Creagh said the tax will be designed to deliver the same or more revenue to local governments as the current system. A mechanism will be established that will allow for local collection of the tax.

According to Creagh, the severance tax will be collected by the locals with 45 percent of the revenue maintained by the impacted counties, townships, school districts, intermediate school district and school aid fund.

The distribution of funding will follow the current property tax distribution and offset revenue that would have been provided to the locals under the current property tax distribution model. The remaining 55 percent of the severance tax will go into a rural development fund to support long-term regional economic opportunities.

A bipartisan rural development fund board would be chaired by the Director of the Michigan Department of Agriculture and Rural Development. The board will consist of at least two Upper Peninsula representatives. One of the five members will be from a community impacted by the mines.

The Rural Development Fund will provide dollars, including matching funds, to facilitate infrastructure improvements for broadband/Internet connectivity, energy, rail and talent to strengthen rural economies, Creagh said.

Creagh said if agreement can be reached from all parties involving, including local governments and school districts, lawmakers and mining companies, the proposals could likely be acted on quickly. If no consensus can be reached, more time would be used to work out problem issues.

Link:
State proposes new mining tax