NEW YORK (Reuters) - Spot gold turned higher on Thursday, reversing initial sharp losses on technical buying and weaker equity markets.
Bullion was up 0.1 percent at $1,751.49 an ounce, having hit a near two-week low of $1,702.44 earlier in the session.
Wall Street is telling Main Street now that everyone wants to invest in Government Motors, and Haryley Davidson, and Toll Brothers Homes, "so dump your gold." Apparently, the Street did a good job in convincing the naive and proftit takers. Folks, we are just at the beginning of the meltdown of this economy. If this country doesn't experience a Ruby Ridge, every weekend, and a Waco, every month, and an Oklahoma City in 2012, then all I have to say is that American men have truly been chickafied, and are essentially zombies, with blank stares totally paralyzed. The dollar will collapse, and gold will soar to $5000.00 to $50,000 per ounce before this is all over. This meltdown of the economy has been in the planning stages since George Bush Sr days when he and the ruling class got Clinton to sign onto Nafta. It's all been a slide into the abyss.
Thursday, August 25, 2011
Wednesday, August 24, 2011
Get out of the Market
The fundamentals of the Stock Market are gone and ethics are out of the window - the only way for the average investor to make money in the stock market is by buying dividend stocks. When the Stock Exchange was formed it created as a way for business to raise capital and allow you to share the risk along with the reward. In addition to an appreciation of the stock price there was the concept of a dividend - the reason was obvious - with a dividend you would continue to own the stock instead of selling and getting out as soon as you made your money and thereby not deflate the stock.
However; the Tech Bubble changed that philosophy; dividends became a thing of the past and that horse was out of the barn and not going back. The problem is you as investors let it happen - we were told that the company could make better use of the money than we could and grow profits even more and raise the stock price even higher and you believed them.
What happened: every got greedy and every one got rich except for you. Instead of that money pouring back into R&D salaries skyrocketed and executive pay compensation went through the roof. Wall Street Firms became the companies biggest lobbyist and you the small investor got screwed. Much like what has happened to politics over the last 150 years has happened in Wall Street. In politics business learned long ago that they could get better deals by funding certain candidates - and unfortunately the well funded candidates almost always win because they can sway the most voters with their airtime. Then our right to vote became watered down much like our right in the stock market.
Today a few hundred or even few thousand investors can make a blip in the market - but a single hedge fund or bank playing with millions of people money can and do manipulate stocks which is why the market has been in a constant sway up and down over the last 5 years. And while most of you have lost a significant portion of your retirement it has been banner years for the investing arms of all of the banks. They have been leveraging the ups and downs with options and can buy and sell options and make hundreds of millions each week on a few dollar swings.
However; the Tech Bubble changed that philosophy; dividends became a thing of the past and that horse was out of the barn and not going back. The problem is you as investors let it happen - we were told that the company could make better use of the money than we could and grow profits even more and raise the stock price even higher and you believed them.
What happened: every got greedy and every one got rich except for you. Instead of that money pouring back into R&D salaries skyrocketed and executive pay compensation went through the roof. Wall Street Firms became the companies biggest lobbyist and you the small investor got screwed. Much like what has happened to politics over the last 150 years has happened in Wall Street. In politics business learned long ago that they could get better deals by funding certain candidates - and unfortunately the well funded candidates almost always win because they can sway the most voters with their airtime. Then our right to vote became watered down much like our right in the stock market.
Today a few hundred or even few thousand investors can make a blip in the market - but a single hedge fund or bank playing with millions of people money can and do manipulate stocks which is why the market has been in a constant sway up and down over the last 5 years. And while most of you have lost a significant portion of your retirement it has been banner years for the investing arms of all of the banks. They have been leveraging the ups and downs with options and can buy and sell options and make hundreds of millions each week on a few dollar swings.
Sprint to start selling iPhone 5 mid-Oct: report
NEW YORK (Reuters) - Sprint Nextel will start selling the next version of the Apple Inc iPhone in mid-October, according to a report in the Wall Street Journal that cited unnamed sources.
This would make Sprint, the third U.S. operator to become a cellphone distributor for Apple, the only iPhone provider offering unlimited use data services for a flat monthly fee if it sticks with its current wireless data offerings.
Verizon Wireless and AT&T will also start selling the device -- dubbed the iPhone 5 -- in mid-October, according to the story. Sprint, AT&T and Verizon declined comment and an Apple spokesperson was not immediately available for comment.
A mid October launch for the next iPhone agrees with Verizon's expectation, announced in July, that it would have a new iPhone in the fall.
AT&T Inc and Verizon Wireless already sell the iPhone 4 but these companies have eliminated flat-fee data plans and instead charge more for customers who use more data services.
Sprint shares closed 10.1 percent higher on Tuesday. An iPhone with unlimited data services is expected to help Sprint, which has been losing subscribers to its rivals, to start reporting net customer additions again, one analyst said.
"Combined with the company's marketing focus on its unlimited plan, iPhone would drive a rebound in subscriber growth," said Mizuho analyst Michael Nelson who said it could help Sprint exceed his expectation for fourth-quarter net subscriber additions of about 190,000.
Since Verizon and Sprint use the same network technology, analysts have long speculated that it made sense for Apple to widen its distribution to Sprint. While Sprint executives have previously said they would like to sell the iPhone, they have never confirmed they were in talks with Apple to do so.
If Sprint gets iPhone in October, T-Mobile USA, the no. 4 U.S. service will be the only national U.S. operator without rights to sell the device. But T-Mobile USA, a unit of Deutsche Telekom, is seeking regulatory approval for its plan to be bought by AT&T for $39 billion.
Asked about iPhone a T-Mobile USA spokesman Tom Harlin said that "ultimately that's Apple's decision." Harlin also said: "We're still focused on Android as our number one priority."
Smartphones based on Google's Android operating system outsold the iPhone in the second quarter of this year.
One problem that money-losing Sprint would face when selling the iPhone is the higher costs associated as operators tend to pay Apple higher subsidies for the device than for other phones.
"If they were to receive the iPhone I would expect their handset subsidies would increase and it would have a near term negative impact to margins," Nelson said.
This could be a tough sell for some investors, especially those who pushed its shares down 20 percent when it reported quarterly results on July 28 as many were skeptical it could meet its profit target for the year.
"Some investors would welcome subscriber growth and others would worry about the increased cost," said Nelson. "The bulls would argue it's well worth the cost because it would be accretive to long term margins."
Verizon Wireless -- a venture of Verizon Communications and Vodafone Group Plc -- started selling iPhone in February, ending AT&T's three years of exclusive U.S. rights to the the device.
Sprint shares closed up 33 cents at $3.59 on the New York Stock Exchange.
This would make Sprint, the third U.S. operator to become a cellphone distributor for Apple, the only iPhone provider offering unlimited use data services for a flat monthly fee if it sticks with its current wireless data offerings.
Verizon Wireless and AT&T will also start selling the device -- dubbed the iPhone 5 -- in mid-October, according to the story. Sprint, AT&T and Verizon declined comment and an Apple spokesperson was not immediately available for comment.
A mid October launch for the next iPhone agrees with Verizon's expectation, announced in July, that it would have a new iPhone in the fall.
AT&T Inc and Verizon Wireless already sell the iPhone 4 but these companies have eliminated flat-fee data plans and instead charge more for customers who use more data services.
Sprint shares closed 10.1 percent higher on Tuesday. An iPhone with unlimited data services is expected to help Sprint, which has been losing subscribers to its rivals, to start reporting net customer additions again, one analyst said.
"Combined with the company's marketing focus on its unlimited plan, iPhone would drive a rebound in subscriber growth," said Mizuho analyst Michael Nelson who said it could help Sprint exceed his expectation for fourth-quarter net subscriber additions of about 190,000.
Since Verizon and Sprint use the same network technology, analysts have long speculated that it made sense for Apple to widen its distribution to Sprint. While Sprint executives have previously said they would like to sell the iPhone, they have never confirmed they were in talks with Apple to do so.
If Sprint gets iPhone in October, T-Mobile USA, the no. 4 U.S. service will be the only national U.S. operator without rights to sell the device. But T-Mobile USA, a unit of Deutsche Telekom, is seeking regulatory approval for its plan to be bought by AT&T for $39 billion.
Asked about iPhone a T-Mobile USA spokesman Tom Harlin said that "ultimately that's Apple's decision." Harlin also said: "We're still focused on Android as our number one priority."
Smartphones based on Google's Android operating system outsold the iPhone in the second quarter of this year.
One problem that money-losing Sprint would face when selling the iPhone is the higher costs associated as operators tend to pay Apple higher subsidies for the device than for other phones.
"If they were to receive the iPhone I would expect their handset subsidies would increase and it would have a near term negative impact to margins," Nelson said.
This could be a tough sell for some investors, especially those who pushed its shares down 20 percent when it reported quarterly results on July 28 as many were skeptical it could meet its profit target for the year.
"Some investors would welcome subscriber growth and others would worry about the increased cost," said Nelson. "The bulls would argue it's well worth the cost because it would be accretive to long term margins."
Verizon Wireless -- a venture of Verizon Communications and Vodafone Group Plc -- started selling iPhone in February, ending AT&T's three years of exclusive U.S. rights to the the device.
Sprint shares closed up 33 cents at $3.59 on the New York Stock Exchange.
Is Tech Bubble 2.0 in the Works?
The late 90's was a magical time in the United States. The Cold War "Peace Dividend" was burning a hole in our pocket, owning a home was still the American dream, and for the most part, citizens were fond of our deeply-flawed but undeniably smart and likable President Clinton. The country had what was called a "budget surplus" and the Internet bubble made all things seemingly possible.
I can't emphasize the last point hard enough. Everything seemed possible in the age of the bubble. Forget the worn-out derision of the completely awesome Pets.com sock puppet as a symbol of the era. Pet food delivery? Pffft. There was a fully-funded company called Kozmo.com that promised to deliver you almost anything legal in an hour. Seriously. A person could get a sandwich, a soda, and a DVD delivered directly to their desk in less than 60-minutes without even making the new kid run out and fetch it. And Kozmo was actually thought by some to be a good investment.
So don't tell me about Internet Bubble 2.0. We've got to live in the here and now and figure out a way to make money with the hand we're being dealt. To help Breakout viewers better understand the forces driving the latest round of technology start-ups, I welcomed Mark Mahaney, a top notch analyst with Citigroup, and fellow greybeard who's been covering dotcoms since 1998.
Mahaney sees three or four major drivers of growth for the next wave of the Internet. Social media is obvious. But getting less attention is anything related to mobility. This is the nuts-and-bolts backbone stuff where the real engineers and inventors are putting together the networks and devices that are going to bring a truly mobile online world to you. 4G and wi-fi are for children; mobility is about clouds, credit card-sized tablets and phones, and your basic Buck Rogers stuff being patented, squatted on, and packaged. Google's (GOOG) acquisition of Motorola Mobility (MMI) is in this broad category. Mahaney regards mobility as bigger than broadband was in the early aughts; which is to say HUGE.
But mobility is the steak. The sizzle is all about Social Media. If the current era in any way resembles the late 1990s, it's in social media. Networking of a human sort enabling cheap reservations, a faux life, and a chance to catch up with people you intentionally lost track of after elementary school is where the real lunatic start-ups lurk. Is there anything more to these companies than an overrated movie and a slew of terrible IPOs in the pipeline?
Mahaney says yes. His basic argument is that the companies of today have benefited from the lessons of the last bubble. Social media start-ups are competing earlier and more viciously with one another, leading to a Darwinian process of culling the herd before outside investors get hurt. The relatively low cost of starting a social media company means those rising to the top have already destroyed would-be competitors, making them relatively battle-tested and more investment worthy. As an obvious example, Facebook didn't become the rage it is today before it destroyed Friendster, Myspace and the Winklevoss twins' psyche.
The low costs of social media concerns also means there's less of a gold-rush mentality in the race to the IPO. A well-run social media company isn't based on the idea of losing money on every transaction but making it up in volume; it's about making money on all free-standing transactions and building a customer base of rabid users.
Facebook doesn't much need to go public. The company prints cash, can offer early investors liquidity through firms like SecondMarket.com (itself a start-up, of course), and has more than enough deep pocket VCs to fund operations long before needing to tap the public market.
According to Mahaney, the bottom-line is a higher level of companies coming to the public markets after much more thorough vetting. It's less manic fun than the real Internet bubble and it's not quite ready for primetime just yet, but this round of start-up fever is off to a much more rational start. Forget LinkedIn (LNKD) and Groupon; those looking for guys like me and Mahaney to start talking about bubbles are going to have to wait until at least the likely IPO of Facebook in 2012 before we even begin throwing around the b-word.
If you need me before then I'll be forlornly listening to my Barenaked Ladies CD and wistfully recalling my Egghead.com short position.
I can't emphasize the last point hard enough. Everything seemed possible in the age of the bubble. Forget the worn-out derision of the completely awesome Pets.com sock puppet as a symbol of the era. Pet food delivery? Pffft. There was a fully-funded company called Kozmo.com that promised to deliver you almost anything legal in an hour. Seriously. A person could get a sandwich, a soda, and a DVD delivered directly to their desk in less than 60-minutes without even making the new kid run out and fetch it. And Kozmo was actually thought by some to be a good investment.
So don't tell me about Internet Bubble 2.0. We've got to live in the here and now and figure out a way to make money with the hand we're being dealt. To help Breakout viewers better understand the forces driving the latest round of technology start-ups, I welcomed Mark Mahaney, a top notch analyst with Citigroup, and fellow greybeard who's been covering dotcoms since 1998.
Mahaney sees three or four major drivers of growth for the next wave of the Internet. Social media is obvious. But getting less attention is anything related to mobility. This is the nuts-and-bolts backbone stuff where the real engineers and inventors are putting together the networks and devices that are going to bring a truly mobile online world to you. 4G and wi-fi are for children; mobility is about clouds, credit card-sized tablets and phones, and your basic Buck Rogers stuff being patented, squatted on, and packaged. Google's (GOOG) acquisition of Motorola Mobility (MMI) is in this broad category. Mahaney regards mobility as bigger than broadband was in the early aughts; which is to say HUGE.
But mobility is the steak. The sizzle is all about Social Media. If the current era in any way resembles the late 1990s, it's in social media. Networking of a human sort enabling cheap reservations, a faux life, and a chance to catch up with people you intentionally lost track of after elementary school is where the real lunatic start-ups lurk. Is there anything more to these companies than an overrated movie and a slew of terrible IPOs in the pipeline?
Mahaney says yes. His basic argument is that the companies of today have benefited from the lessons of the last bubble. Social media start-ups are competing earlier and more viciously with one another, leading to a Darwinian process of culling the herd before outside investors get hurt. The relatively low cost of starting a social media company means those rising to the top have already destroyed would-be competitors, making them relatively battle-tested and more investment worthy. As an obvious example, Facebook didn't become the rage it is today before it destroyed Friendster, Myspace and the Winklevoss twins' psyche.
The low costs of social media concerns also means there's less of a gold-rush mentality in the race to the IPO. A well-run social media company isn't based on the idea of losing money on every transaction but making it up in volume; it's about making money on all free-standing transactions and building a customer base of rabid users.
Facebook doesn't much need to go public. The company prints cash, can offer early investors liquidity through firms like SecondMarket.com (itself a start-up, of course), and has more than enough deep pocket VCs to fund operations long before needing to tap the public market.
According to Mahaney, the bottom-line is a higher level of companies coming to the public markets after much more thorough vetting. It's less manic fun than the real Internet bubble and it's not quite ready for primetime just yet, but this round of start-up fever is off to a much more rational start. Forget LinkedIn (LNKD) and Groupon; those looking for guys like me and Mahaney to start talking about bubbles are going to have to wait until at least the likely IPO of Facebook in 2012 before we even begin throwing around the b-word.
If you need me before then I'll be forlornly listening to my Barenaked Ladies CD and wistfully recalling my Egghead.com short position.
Ways to Watch TV for Free This Summer
broken television recently forced me to ponder the unthinkable: A summer without my favorite shows. As someone who consumes reality television with the passion that some reserve for five-star restaurants, I knew I couldn't resign myself to that fate. So I spent some time figuring out how to watch television online for free. (If we were going to have to buy a new television, we certainly didn't want to start squandering money on pay-per-episode shows.)
[In Pictures: 10 Smart Ways to Improve Your Budget.]
Here's what I discovered: There's enough free entertainment out there to make you wonder why you're paying $60 a month (or more) for cable. From the network news to serialized primetime shows to cable programming, the show you want can almost always be found online. In most cases, all the viewer has to do to access it is watch a short 30-second ad before the opening scenes, or a longer two-minute ad where a commercial break would normally be. Not a bad price, considering most of us watch ads anyway when we tune into our expensive cable channels.
If you're ready to cash in on these freebies yourself, here are my top four tips:
1. Use Hulu.com. As most people under age 25 know, the website Hulu.com makes it easy to watch many shows for free, including fan favorites such as The Daily Show with Jon Stewart, The Office, and Modern Family. With limited ads and easy streaming, the only downside is that not all shows are available at all times. That's when you might need to use the next option. [See also: The Economic Reality of Primetime Families.]
2. Before paying for a new episode of your favorite show on iTunes, do a Web search with the name of the show and the words "full episodes." Networks don't always make it easy to find the latest show through their websites, but a Web search with those terms will help turn it up. This technique helped us find the latest 60 Minutes, Survivor, and Amazing Race episodes, for example. But it can also turn up spam sites. Steer clear of any urls that you don't recognize.
3. Take advantage of the online content you might already be paying for. If you subscribe to a cable provider, you might be able to watch even more of your favorite shows online than you can find through your TV screen. For example, the HBO Go app allows users to access all episodes of shows such as Curb Your Enthusiasm and Sex and the City. We were happy to rediscover these long-lost (to us) shows. (To access to shows, you must be a HBO subscriber.)
[Teresa Giudice: Money Advice for the Real Housewife]
4. Check out iTunes, and not just for music. Networks often make their shows available through iTunes at low or no cost to the user. We also figured out that it was easier, and in some cases cheaper, to rent foreign films through iTunes than it would be through a video rental company (such as Netflix or Redbox). For just a few dollars, we downloaded an amazing French film (The Heartbreaker, for anyone who wants a recommendation) and watched it in high-definition on our laptop.
The good news: Our television started working again after a visit from the repair shop. So I'm back to watching Real Housewives and 16 & Pregnant on the big screen--but I'm still finding new ways to apply these TV-for-free techniques. We invested in a USB device that allows us to stream shows from our iPad onto the bigger television screen, so we can still watch all our new Internet shows for free. It's going to be a good summer.
[In Pictures: 10 Smart Ways to Improve Your Budget.]
Here's what I discovered: There's enough free entertainment out there to make you wonder why you're paying $60 a month (or more) for cable. From the network news to serialized primetime shows to cable programming, the show you want can almost always be found online. In most cases, all the viewer has to do to access it is watch a short 30-second ad before the opening scenes, or a longer two-minute ad where a commercial break would normally be. Not a bad price, considering most of us watch ads anyway when we tune into our expensive cable channels.
If you're ready to cash in on these freebies yourself, here are my top four tips:
1. Use Hulu.com. As most people under age 25 know, the website Hulu.com makes it easy to watch many shows for free, including fan favorites such as The Daily Show with Jon Stewart, The Office, and Modern Family. With limited ads and easy streaming, the only downside is that not all shows are available at all times. That's when you might need to use the next option. [See also: The Economic Reality of Primetime Families.]
2. Before paying for a new episode of your favorite show on iTunes, do a Web search with the name of the show and the words "full episodes." Networks don't always make it easy to find the latest show through their websites, but a Web search with those terms will help turn it up. This technique helped us find the latest 60 Minutes, Survivor, and Amazing Race episodes, for example. But it can also turn up spam sites. Steer clear of any urls that you don't recognize.
3. Take advantage of the online content you might already be paying for. If you subscribe to a cable provider, you might be able to watch even more of your favorite shows online than you can find through your TV screen. For example, the HBO Go app allows users to access all episodes of shows such as Curb Your Enthusiasm and Sex and the City. We were happy to rediscover these long-lost (to us) shows. (To access to shows, you must be a HBO subscriber.)
[Teresa Giudice: Money Advice for the Real Housewife]
4. Check out iTunes, and not just for music. Networks often make their shows available through iTunes at low or no cost to the user. We also figured out that it was easier, and in some cases cheaper, to rent foreign films through iTunes than it would be through a video rental company (such as Netflix or Redbox). For just a few dollars, we downloaded an amazing French film (The Heartbreaker, for anyone who wants a recommendation) and watched it in high-definition on our laptop.
The good news: Our television started working again after a visit from the repair shop. So I'm back to watching Real Housewives and 16 & Pregnant on the big screen--but I'm still finding new ways to apply these TV-for-free techniques. We invested in a USB device that allows us to stream shows from our iPad onto the bigger television screen, so we can still watch all our new Internet shows for free. It's going to be a good summer.
Cheapest Cars to Own
So you want to cut the cost of your commute. If you're looking to save money with a gas sipper, don't stop at the sticker price and fuel economy. Other ownership expenses -- from repairs and maintenance to depreciation and insurance -- can push up what you actually spend by hundreds of dollars a year.
We asked Vincentric, an automotive data firm, for a list of vehicles with the lowest five-year ownership costs in four categories. The data include all of the costs listed above, plus taxes and financing. Then we compared those vehicles with ones that did well in Kiplinger's ranking system -- considering performance, safety and value -- to determine the best bang for your buck.
Compact sedans. You can't find a cheaper car to own than the base-level, manual transmission Nissan Versa ($10,750). But in exchange for paying only $27,028 over five years, you get a car without air conditioning, anti-lock brakes or even a radio. We think a better choice is the sporty Nissan Sentra SR ($18,530). Despite an $8,000 difference upfront, the five-year ownership cost is only about $4,000 more. (The ownership cost assumes you are paying 5.6% interest on a five-year loan but that you recoup the cost of the car, minus depreciation, when you sell the vehicle after five years.) The Sentra boasts a full complement of safety equipment -- ABS, stability control, traction control and six airbags -- and has a 60/40 split folding rear seat. Plus, you can get an automatic transmission at no extra charge. The Sentra has more power than the Versa but gets about the same fuel economy (30 miles per gallon in combined city and highway driving).
Midsize sedans. The base model Toyota Camry ($21,630) is the cheapest midsize sedan to own, with a five-year cost of $34,388. It's comfortable enough, but its handling is lackluster and the interior is frumpy. On Kiplinger's value scale, the Honda Accord LX ($22,730) is the clear winner over the Camry. Its five-year cost is $1,236 more, but the Accord gets a five-star overall safety rating from the government versus four stars for the Camry, and its four-cylinder engine is more powerful and gets better mileage (27 mpg overall). Spot-on handling and a larger interior give it a boost, too.
Luxury sedans. Lexus's most recent entry in its hybrid series, the CT 200h ($29,995), has a five-year ownership cost of about $44,400. That is the lowest of the luxury class, partly because the CT 200h gets a thrifty 42 mpg overall. The downside: Both power and space leave much to be desired.
To find an entry-luxury vehicle that did well in our rankings, we had to move up the list to the Audi A4 2.0T ($33,175). It doesn't have the green cred of the CT 200h, but it gets our vote for value -- even with a five-year ownership cost of $51,217. The four-cylinder engine puts out 211 horses but manages 25 mpg combined. Legroom, headroom and cargo space are decent for a compact car, and resale value is 46% after three years.
Family crossovers. When it comes to holding a couple of kids and luggage, most of the midsize and large crossovers get the job done. And the Toyota Venza ($27,385) has the lowest five-year ownership cost in the segment: $38,733. Its four-cylinder engine gets an overall 23 mpg, making it a fine choice if fuel economy is your top goal. But its 182-horsepower engine lacks zip, and its handling feels less than precise.
If you want more power, more room and a better driving experience, consider Kiplinger's Best in Class winner for 2011, the Mazda CX-9 Sport ($29,930).
It seats seven, and it has three-zone climate control to keep everyone comfortable. The V6 puts out 273 horses, with about average fuel economy for the segment, at 19 mpg overall. The CX-9 offers nearly 50 cubic feet of cargo space with the third row folded, and more than most sedans with it up. Over five years, the ownership cost is $45,383.
We asked Vincentric, an automotive data firm, for a list of vehicles with the lowest five-year ownership costs in four categories. The data include all of the costs listed above, plus taxes and financing. Then we compared those vehicles with ones that did well in Kiplinger's ranking system -- considering performance, safety and value -- to determine the best bang for your buck.
2011 Nissan Sentra
Midsize sedans. The base model Toyota Camry ($21,630) is the cheapest midsize sedan to own, with a five-year cost of $34,388. It's comfortable enough, but its handling is lackluster and the interior is frumpy. On Kiplinger's value scale, the Honda Accord LX ($22,730) is the clear winner over the Camry. Its five-year cost is $1,236 more, but the Accord gets a five-star overall safety rating from the government versus four stars for the Camry, and its four-cylinder engine is more powerful and gets better mileage (27 mpg overall). Spot-on handling and a larger interior give it a boost, too.
Luxury sedans. Lexus's most recent entry in its hybrid series, the CT 200h ($29,995), has a five-year ownership cost of about $44,400. That is the lowest of the luxury class, partly because the CT 200h gets a thrifty 42 mpg overall. The downside: Both power and space leave much to be desired.
To find an entry-luxury vehicle that did well in our rankings, we had to move up the list to the Audi A4 2.0T ($33,175). It doesn't have the green cred of the CT 200h, but it gets our vote for value -- even with a five-year ownership cost of $51,217. The four-cylinder engine puts out 211 horses but manages 25 mpg combined. Legroom, headroom and cargo space are decent for a compact car, and resale value is 46% after three years.
2011 Toyota Venza
If you want more power, more room and a better driving experience, consider Kiplinger's Best in Class winner for 2011, the Mazda CX-9 Sport ($29,930).
It seats seven, and it has three-zone climate control to keep everyone comfortable. The V6 puts out 273 horses, with about average fuel economy for the segment, at 19 mpg overall. The CX-9 offers nearly 50 cubic feet of cargo space with the third row folded, and more than most sedans with it up. Over five years, the ownership cost is $45,383.
Easy Ways to Increase Your Savings
Banks and financial websites are offering more innovative tools, incentives and higher rates these days to help you pump up your savings.
Programs like Bank of America's Keep the Change even kick in some money to help you out in the beginning. Others like SmartyPig.com are dishing out cash-back rewards on their co-branded prepaid debit cards that you can shuttle into savings.
Even so, don't count on debit card cash-back rewards programs to help you for long. Chase, Wells Fargo and PNC are among the banks phasing out these debit card programs. Banks are looking at huge changes in revenue due to new regulations, says Ron Shevlin, a senior analyst at Aite Group LLC, a research firm in Boston. The upshot is they're less willing to hand out incentives.
But for consumers with hefty savings or multiple accounts, incentives can still be sweet.
Ultimately, building savings by paying yourself first with direct deposit is best, says Greg McBride, CFA, senior financial analyst at Bankrate.com. That tactic builds savings momentum, he says.
But for some extra oomph, here are five easy tips to build on your savings:
Get Paid Incentives for Saving
Bank incentives are alive and well.
With Bank of America's Keep the Change program, every time you make a debit card purchase, the bank rounds up the number to the nearest dollar amount and deposits it in your savings account. The bank also will match your savings for the first three months, up to $250.
"It's the electronic equivalent of dropping spare change in a glass jar," McBride says.
BBVA Compass has a similar program. When you link your checking account with its Build My Savings account, the bank matches a percentage of your transfers, up to $250 per year. And U.S. Bank has a S.T.A.R.T. savings program, which hands out a $50 Rewards Visa Card when your balance reaches $1,000.
Still, incentives may be more than offset by higher fees and lower yields, McBride says.
Opt for Credit Card Savings Accounts
Some credit card companies are offering tempting online savings deals.
For example, CapitalOne InterestPlus savings paid 1.1 percent on balances of $1,000 or more in late May 2011 for anyone who opens this type of account. That's compared to average savings yields of 0.68 percent offered nationally, according to Bankrate's rate comparison tool.
An American Express online savings account also paid a high yield -- 1.15 percent.
"Since they generally don't have physical branches, they can pay higher interest rates," says Ken Paterson, vice president of research operations at Mercator Advisory Group, a research firm based in Maynard, Mass. And the accounts are insured by the Federal Deposit Insurance Corp., to $250,000, he says.
Harness the Power of Social Networking
Social networking sites can turbocharge savings, especially for teens.
Take MatchFund.com, which lets parents match their teens' savings deposits. Teens also can create savings goals like saving for an iPod. And their spending is co-managed with parents via a categorized spending card, which organizes purchases into groups such as music, games and clothing for parents to approve.
"Kids can actually complete financial lessons and get rewards from mom and dad as a result," says Nick Mokey, a staff writer at Digitaltrends.com. "You're teaching kids about money with things that matter to them like an iPod."
Online savings site SmartyPig.com also lets you set financial goals to which people can contribute to help you meet them. And its savings account interest rate was a hefty 1.35 percent in May 2011.
Bigger Balances, Higher Rates
Balances of more than $25,000 usually earn you higher rates.
For example, Citibank's Ultimate Savings Account has rates that reward higher balances. If you stash at least $25,000, your interest rate is triple that of deposits under $10,000 (rates from May 2011).
And Wells Fargo's High Yield Savings Account pays four times more for balances of more than $25,000 than for deposits of less than $10,000 in New York; it may vary in other states. If you link to a PMA Premier Checking Account, the bank adds a bonus of 0.1 percent (also in New York).
Compare rates for other kinds of accounts like money markets via search engines to find the best yields, McBride says. "Higher-yield accounts may not automatically be the best return on your money," he says.
Also, Shevlin says consumers have more leverage to negotiate higher rates at smaller banks, especially if you have multiple accounts and big balances. "Negotiate better rates where you are," he says.
Link Cash-Back Rewards to Savings
Cash-back rewards are another way to pump up savings, especially for big spenders.
Take SmartyPig's prepaid cash debit rewards card. It lets you earn up to 10 percent back on everyday purchases at 9,000 local and regional retailers. That cash-back money is then applied to savings goals. Also, with the Fidelity Investment Rewards American Express card you earn 2 percent (May 2011 rate) cash back on purchases that is deposited into a cash account or brokerage account. "That's a great payout," McBride says.
Stay on top of your transactions, McBride says. "People with the biggest trouble saving are most inclined to trip up," he says. "If you pay your balance every month, it's a great way to get paid for everyday transactions."
Programs like Bank of America's Keep the Change even kick in some money to help you out in the beginning. Others like SmartyPig.com are dishing out cash-back rewards on their co-branded prepaid debit cards that you can shuttle into savings.
Even so, don't count on debit card cash-back rewards programs to help you for long. Chase, Wells Fargo and PNC are among the banks phasing out these debit card programs. Banks are looking at huge changes in revenue due to new regulations, says Ron Shevlin, a senior analyst at Aite Group LLC, a research firm in Boston. The upshot is they're less willing to hand out incentives.
But for consumers with hefty savings or multiple accounts, incentives can still be sweet.
Ultimately, building savings by paying yourself first with direct deposit is best, says Greg McBride, CFA, senior financial analyst at Bankrate.com. That tactic builds savings momentum, he says.
But for some extra oomph, here are five easy tips to build on your savings:
Get Paid Incentives for Saving
Bank incentives are alive and well.
With Bank of America's Keep the Change program, every time you make a debit card purchase, the bank rounds up the number to the nearest dollar amount and deposits it in your savings account. The bank also will match your savings for the first three months, up to $250.
"It's the electronic equivalent of dropping spare change in a glass jar," McBride says.
BBVA Compass has a similar program. When you link your checking account with its Build My Savings account, the bank matches a percentage of your transfers, up to $250 per year. And U.S. Bank has a S.T.A.R.T. savings program, which hands out a $50 Rewards Visa Card when your balance reaches $1,000.
Still, incentives may be more than offset by higher fees and lower yields, McBride says.
Opt for Credit Card Savings Accounts
Some credit card companies are offering tempting online savings deals.
For example, CapitalOne InterestPlus savings paid 1.1 percent on balances of $1,000 or more in late May 2011 for anyone who opens this type of account. That's compared to average savings yields of 0.68 percent offered nationally, according to Bankrate's rate comparison tool.
An American Express online savings account also paid a high yield -- 1.15 percent.
"Since they generally don't have physical branches, they can pay higher interest rates," says Ken Paterson, vice president of research operations at Mercator Advisory Group, a research firm based in Maynard, Mass. And the accounts are insured by the Federal Deposit Insurance Corp., to $250,000, he says.
Harness the Power of Social Networking
Social networking sites can turbocharge savings, especially for teens.
Take MatchFund.com, which lets parents match their teens' savings deposits. Teens also can create savings goals like saving for an iPod. And their spending is co-managed with parents via a categorized spending card, which organizes purchases into groups such as music, games and clothing for parents to approve.
"Kids can actually complete financial lessons and get rewards from mom and dad as a result," says Nick Mokey, a staff writer at Digitaltrends.com. "You're teaching kids about money with things that matter to them like an iPod."
Online savings site SmartyPig.com also lets you set financial goals to which people can contribute to help you meet them. And its savings account interest rate was a hefty 1.35 percent in May 2011.
Bigger Balances, Higher Rates
Balances of more than $25,000 usually earn you higher rates.
For example, Citibank's Ultimate Savings Account has rates that reward higher balances. If you stash at least $25,000, your interest rate is triple that of deposits under $10,000 (rates from May 2011).
And Wells Fargo's High Yield Savings Account pays four times more for balances of more than $25,000 than for deposits of less than $10,000 in New York; it may vary in other states. If you link to a PMA Premier Checking Account, the bank adds a bonus of 0.1 percent (also in New York).
Compare rates for other kinds of accounts like money markets via search engines to find the best yields, McBride says. "Higher-yield accounts may not automatically be the best return on your money," he says.
Also, Shevlin says consumers have more leverage to negotiate higher rates at smaller banks, especially if you have multiple accounts and big balances. "Negotiate better rates where you are," he says.
Link Cash-Back Rewards to Savings
Cash-back rewards are another way to pump up savings, especially for big spenders.
Take SmartyPig's prepaid cash debit rewards card. It lets you earn up to 10 percent back on everyday purchases at 9,000 local and regional retailers. That cash-back money is then applied to savings goals. Also, with the Fidelity Investment Rewards American Express card you earn 2 percent (May 2011 rate) cash back on purchases that is deposited into a cash account or brokerage account. "That's a great payout," McBride says.
Stay on top of your transactions, McBride says. "People with the biggest trouble saving are most inclined to trip up," he says. "If you pay your balance every month, it's a great way to get paid for everyday transactions."
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