China slump leads Asia shares lower on regulatory crackdown, weak profits - By Hideyuki Sano and Nichola Saminather

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Traders work at the stock exchange with the share price index DAX board pictured in background in Frankfurt, …

By Hideyuki Sano and Nichola Saminather

TOKYO/SINGAPORE (Reuters) - Chinese shares slumped on Friday, weighing on other Asian stock markets, as a fresh regulatory crackdown and falling industrial profits weighed on market sentiment.
European shares were set to follow suit, with financial spreadbetters expecting Britain's FTSE 100 to fall 0.3 percent, France's CAC40 to open down 0.4 percent, and Germany's DAX to start the day 0.1 percent lower.
U.S. stock futures erased gains after earlier rising 0.3 percent to their highest level since Nov. 9 following Thursday's Thanksgiving Day holiday.
Early selling intensified in China's stock markets in the afternoon, with the Shanghai Composite index and the CSI300 plunging 4.7 percent as of 0623 GMT, on track for the biggest one-day drop in more than three months, and set for weekly declines of 4.6 percent and 5 percent, respectively.
That contributed to a drop of 0.9 percent in the broadest index of Asia-Pacific shares outside of Japan, bringing losses for the week to 1.1 percent.Japan's Nikkei reversed earlier gains to close down 0.3 percent, but was on track to end the week flat.
China's securities regulator has urged domestic brokerages to cease financing clients' stocks purchases through swaps and other over-the-counter contracts, two sources with direct knowledge told Reuters, its latest move to reduce leveraged financing risk in its stock markets after a summer plunge.
"After rebounding over 20 percent from its bottom, you need fresh capital to maintain the upward momentum (in Chinese stocks), but recent government measures to deleverage have sparked fears," said Zhou Lin, analyst at Huatai Securities.
"In addition, I don't see signs that the economy has bottomed out."
Further weighing on sentiment was data on Friday showing that profits earned by Chinese industrial companies fell 4.6 percent in October, declining for the fifth consecutive month.
The Chinese yuan also came under pressure, weakening to its lowest level in almost three months as investors braced for a decision on Monday by the International Monetary Fund on whether to include the currency in its reserve basket.
Some market watchers fears Beijing's commitment to market reforms and liberalisation may cool if the yuan is added to the reserve basket.
Spot yuan opened at 6.3928 per dollar and was changing hands at 6.3942, 46 pips weaker than the previous close and about 0.04 percent away from People's Bank of China's midpoint rate of 6.3915.
"It’s uncertain if the Chinese government is keen to show the market influence in their rate setting or whether now that they know they have gained special drawing rights inclusion they are keen to weaken their overvalued currency knowing it will not jeopardise their case," Angus Nicholson, market analyst at IG in Melbourne, wrote in a note.
The euro continued to falter, hovering near seven-month lows on expectations that the European Central Bank could announce further stimulus as early as next week.
Most in the market expect the ECB to expand its asset purchase programme and lower its deposit rate, the rate at which banks park excess funds with it, when it meets next Thursday.
Traders are now speculating that the ECB could cut rates more than the previous market consensus of a 0.10 percentage point reduction.
The euro's three-month overnight indexed swap (OIS) rate fell to a new low around minus 0.3133 percent, almost 18 basis points below the current fixing level of the Overnight Eonia rate.
With keeping money in the euro seen increasingly costly because of negative interest rates, the common currency was on the defensive in the foreign exchange market.
The euro traded at $1.0614, not far from Wednesday's seven-month low of $1.0565. It also stood near a seven-month low against the yen, last fetching 129.98 yen.
"You keep losing money by holding the euro. It is hard to see the euro rising. True, it is already heavily shorted but I expect the euro to fall towards parity with the dollar," said a trader at a Japanese bank.
The euro's weekness helped the dollar hold near an 8-1/2-month peak.
The dollar index, which measures the performance of the U.S. currency against a basket of major peers, was little changed at 99.814, after scaling 100.170 earlier in the week, the highest since March. It is up 0.3 percent for the week.
The yen slipped 0.1 percent to 122.45 per dollar, showing little response to a series of Japanese economic data including the jobless rate, which unexpectedly fell to a two-decade low of 3.1 percent.
Oil prices edged lower, with U.S. stockpile data on Wednesday doing little to ease concerns about a supply glut.
U.S. crude futures fell 1.4 percent to $42.45 a barrel as traders also unwound some of the buying they had made after Turkey shot down a Russian warplane earlier this week.
Brent futures edged down 0.4 percent to $45.30 a barrel, compared to their two-week high of $46.50 hit earlier this week.
Battered metal prices also rebounded as hedge funds covered their short positions for now.
Benchmark copper on the London Mental Exchange rose 1.9 percent on Thursday to $4,636.15 per tonne, recovering 4.3 percent from Monday's 6 1/2-year low of $4,443.50. They held steady at $4,634.50, on track for a weekly gain of 1.2 percent.

Zinc and Nickel also jumped sharply on Thursday, helped by expectations of output cuts in China.

(Additional reporting by Pete Sweeney and Samuel Shen; Editing by Kim Coghill)

Culled from Reuters

How to maximize your retirement accounts in 2016- By Emily Brandon

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Contributing to a retirement account qualifies you for tax breaks and employer contributions, both of which will grow your nest egg faster. Here's how to take full advantage of the 401(k) and individual retirement account perks you're eligible for in 2016.
Max out your 401(k). Workers can contribute up to $18,000 to their 401(k) plans in 2016. To completely max out this account, you will need to save $1,500 per month or $750 per twice monthly paycheck. A worker in the 25 percent tax bracket who tucks the full amount into a 401(k) plan will save $4,500 on his federal income tax bill. Retirement savers in the 35 percent tax bracket will save $6,300 on the same contribution. Income tax won't be due on this money until it is withdrawn from the account. And if you drop into a lower tax bracket in retirement, you will pay that lower rate on the distributions. If you withdraw that $18,000 while in the 15 percent tax bracket, you will only ultimately pay $2,700 on that contribution.
Make catch-up contributions. Workers age 50 and older can contribute an additional $6,000 to a 401(k) plan in 2016, for a total contribution of $24,000. "If you will turn 50 this year, that's an additional $6,000, and it's all deferred income from taxes," says Helga Cuthbert, a certified financial planner for Cuthbert Financial Guidance in Decatur, Georgia. Hitting this 401(k) limit requires saving $2,000 per month. Saving this much will reduce your tax bill by $6,000 if you are in the 25 percent tax bracket and $8,400 if you pay a 35 percent federal income tax rate.
Get an employer match. If you can't save enough to take full advantage of the 401(k) tax deduction, at least aim to save enough to claim any matching funds your employer offers. If your company provides a 401(k) match up to 6 percent of pay, remember to set up withholding for that amount. This means saving $200 per month if you are earning $50,000 and $500 monthly if your salary is $100,000. Some companies automatically enroll employees in the plan at 3 percent of pay, and you will need to take action to adjust your withholding if you want to take full advantage of the match. "If you get a raise next year, I would increase your savings rate now so your take home pay is the same as it was before the raise, and instead put that money in your company retirement plan," says Francine Duke, a certified financial planner for Aqua Financial Planning in Chicago. "You won't even notice the difference."
Take full advantage of IRAs. In addition to saving in a 401(k), you can defer income tax on another $5,500 that you contribute to an IRA in 2016. Workers age 50 and older are eligible to contribute an extra $1,000 for a total of $6,500. Maxing out an IRA requires saving $458 per month if you are 49 or younger and $542 per month for those 50 and older. If you have a 401(k) account at work, you won't be able to claim the full tax deduction for an IRA contribution if your modified adjusted gross income is between $61,000 and $71,000 ($98,000 to $118,000 for married couples), or any deduction if your income tops these amounts. If you are married to someone with a retirement account, the tax deduction for IRA contributions is phased out for couples earning between $184,000 and $194,000 in 2016.
Consider a Roth IRA. Roth IRAs have the same contribution limits as traditional IRAs, but the tax treatment is different. There's no tax deduction for Roth IRA contributions, but the investment earnings in the account aren't taxed and withdrawals after age 59 1/2 are tax-free. "You can just let that Roth IRA grow in value tax-free and use it as a source to take out money later in life," says Chris Falvello, a certified financial planner for Navigate Financial Advisors in Ocean View, Delaware. "You get the money back tax-free." Roth IRA eligibility phases out for taxpayers whose adjusted gross income is between $117,000 and $132,000 ($184,000 to $194,000 for married couples).
Claim the saver's credit. If you save in a retirement account and your adjusted gross income is less than $30,750 for individuals, $46,125 for heads of household and $61,500 for married couples, you might be eligible to claim the saver's credit. Contributions of up to $2,000 ($4,000 for couples) could earn you a tax credit worth between 10 and 50 percent of your retirement account deposit.

Culled US News

4 Ways to Boost the Amount You Save for Retirement -By Donna Fuscaldo

 

Retirement can easily last more than twenty years so that old advice that you need one million dollars to live off of is no longer applicable. After all, medical costs for the average retired couple can easily cost $220,000 alone, according to Fidelity Investments. Add housing expenses and the cost of food and entertainment, and it’s easy to see why one million dollars isn’t enough to live off of in retirement.
Whether you have amassed a sizeable nest egg or you have a lot of catching up to do there are ways to boost your retirement savings. From maxing out your company sponsored retirement plan contributions to opening up an IRA, here’s how to do it.

Take Full Advantage of Company-Sponsored Retirement Plans

One of the easiest ways to start saving for your retirement is to fully take advantage of a retirement savings plan being offered by your company. Not only are these savings vehicles tax-advantaged, which means your contributions are tax-free, but companies often offer a matching component that in essence gives you free money. It may seem like a no- brainer, but far too many employees choose not to get the full match from their employer and some don't contribute to a 401 (K) at all. But setting aside even as little as $50 per pay check can go a long way in increasing the amount you save.

Open Up an IRA

Many people will make the mistake of contributing to a 401 (K) plan and nothing else. They wrongly figure that is enough to support them in retirement. But if you want to boost your savings even further, then it’s a good an idea to open up an IRA. When it comes to an IRA, savers can either go with a traditional IRA or a Roth IRA. With a traditional IRA contributions are tax deductible, and you don’t pay taxes on your gains until you withdraw money. With a Roth IRA, the gains from your contributions are tax-free.

Contribute the Maximum in Your 401 (K) and IRA

The whole idea behind company-sponsored 401 (K) plans is to get employees to put money away for retirement. The tax-free component of it is supposed to serve as an added incentive to contribute as much as possible. But most employees don’t go all the way and contribute the maximum allowed, despite the benefits of doing so. If you want to enhance your retirement savings and can swing it, contributing the maximum will help a lot. For 2015, people 50 or older can contribute up to $24,000, and those under 50 can contribute up to $18,000. The same idea can be applied to an IRA as well. For 2015, savers 50 or older can contribute a maximum of $6,500. The maximum is $5,500 for people younger than 50.

Rein In Your Spending

One of the easiest ways to boost the amount of retirement savings you amassed is to rein in your spending. In this instant gratification culture, it’s easy to waste money on cups of coffees, trips to the nail salon or eating out three nights a week. But if you were able to curb some of that spending and instead put it into your retirement savings account you will be better off in the long run. After all that $5.00 cup of java may be tasty but if you put the money you spend on coffee each month into your 401 (K) it will grow a lot.

The Bottom Line

Retirement can conjure feelings of fear and stress, but it doesn’t have to be that way, granted you save in advance. Whether you have been savings for years or are just starting out, there are ways to boost the amount you put away for your golden years. From taking full advantage of company-sponsored retirement accounts to reining in your spending, there are a lot of ways to ensure you have enough money when you eventually walk off into the retirement sunset.

Culled from investopaedia

The hidden costs of homeownership-By Jeanie Ahn

The American dream of homeownership can quickly turn into a nightmare when you’re constantly being hit with unexpected expenses. Egypt Sherrod, HGTV host of “Property Virgins” and “Flipping Virgins,” shares her tips on how to prepare for some of the hidden costs.

Landscaping

Depending on where you live, landscaping can be a huge bill to consider. When Sherrod moved to Atlanta from New York City, she was billed $200 to get an acre of land mowed by a professional service. If you want extra curb appeal, add another $400 for seasonal flowers.

If that’s not in your budget, Sherrod recommends investing in a riding lawn mower. It will cost you about $2,000 to purchase but will pay for itself within a year — and you won’t have to rely on a service you can’t afford.

Gutter cleaning

Every six months you’ll need to clear your gutters of built-up debris like dirt and leaves. Failing to maintain the exterior of your house will result in costly and dangerous problems like mold. If you don’t plan on cleaning your gutters yourself, you can expect to pay $200 to $300 for the service.

A one-time installment of gutter guards can save you the hassle of dealing with this issue, says Sherrod. A gutter guard looks like a metal grate and shields your gutters. It can cost anywhere from a few hundred if you install them yourself to a few thousand if you get it done professionally. But once you set it, you can forget it.

Repairs

Replacing or repairing a big-ticket item can set you back thousands — which is especially a risk if you’ve purchased an older home. Replacing a water heater can easily run you $600 to $2,000, and repairing an HVAC system can cost you another few thousand.

For $300 to $400 a year, a home warranty is probably your best bet, says Sherrod. Not to be confused with homeowners insurance, a home warranty provides repair and replacements on major systems within your house like plumbing, HVAC systems, and even your pool. Once you report your problem to the warranty company, they’ll send someone out to fix it. If they can’t fix it, they’ll replace it.

Culled from Yahoo Finance

Are these cities the next big retirement destinations? - By Maryalene LaPonsie

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This July 2013 photo shows people walking down West Idaho Street in a farmer’s market in Boise, Idaho. Sure you have to pay for the locally grown fruit, vegetables, grass-fed beef or the various arts and crafts for sale, but the sights, smells, sounds and people-watching are free at Boise’s version of the classic farmer’s market. In three separate spots downtown, vendors set up shop on blocked-off city streets or plazas each Saturday morning from April through December. (AP Photo/Boise Parks & Recreation, Bill Grange)

Arizona and Florida are perennial favorites for retirees and snowbirds, but not everyone wants to follow the flock. Maybe you'd prefer to scout out someplace new.

If you're looking for a city still undiscovered by the masses, the following three cities have all the hallmarks of being the perfect place to retire. Don't be surprised if they end up being the next top retirement destinations.
For each city, population figures are 2014 estimates from the U.S. Census Bureau, and housing prices are based on calculations from real estate website Zillow. Cost of living was calculated by CareerTrends, using 2013 data from the Economic Policy Institute. The cost of living index is based on a 100 point scale, with 100 representing the national average. Numbers under 100 mean average cost of living expenses are lower than the national average.
Las Cruces, New Mexico
-- Population: 101,408
-- Median House Price: $137,300
-- Cost of Living Index: 92
Las Cruces is ready to roll out the red carpet for retirees. The Las Cruces Green Chamber of Commerce offers a welcome kit for new senior residents that includes not only details about the city but also special discounts and offers.
Carrie Hamblen, executive director of the Las Cruces Green Chamber of Commerce, says one of the big draws in the area is the Organ Mountains-Desert Peaks National Monument. "It's literally in our backyard," Hamblen says. "It's a 15 minute drive from my house."
The monument was established by President Barack Obama last year, and its designation could bode well for the future of Las Cruces as a retirement destination. A 2015 report from the Center for Western Priorities found retirees are three times more likely to move to a Western county with protected lands.
Organ Mountains-Desert Peaks is marked by features such as the historic La Cueva rock shelter and Kilbourne Hole, a crater remnant from an ancient volcanic explosion. Active retirees can head to the monument for hiking, biking, horseback riding and climbing.
However, it's not only outdoor recreation that's attracting retirees to Las Cruces. They also come because of the low cost of living. "Folks who come here from California can easily buy a mansion," Hamblen says.
There are also two hospitals, public transportation and, for lifelong learners, continuing education options through New Mexico State University and Dona Ana Community College.
"We're very excited to welcome people to our community," Hamblen says. "Come enjoy our open spaces."
Lexington, Kentucky
-- Population: 310,797
-- Median House Price: $152,700
-- Cost of Living Index: 97
Travis Musgrave, a managing director and wealth management advisor with Merrill Lynch, has spent all 47 of his years in Lexington, Kentucky, and works with many retirees who choose to make the town their permanent home. Thanks in part to a large population of college students, the city has a youthful feel and can be a good choice for those who want to grow old in a community that doesn't make them feel old.
"We're small enough that you get some of that small town charm, but you also get big city advantages," Musgrave says.
Those big city advantages include medical centers with cutting-edge cancer, heart and Alzheimer's centers as well as public transportation, biking and walking paths, and easy access to highways. "We have a mayor who's put a lot of effort of into making a downtown that's vibrant and very livable," Musgrave says of the city's atmosphere.
An added perk for seniors 65 and older is the opportunity to take classes for free through the Donovan Fellowship for Academic Scholars program at the University of Kentucky.
As a wealth manager, Musgrave sees the cost of living and tax rate in the city as two of the biggest benefits to retirees. For instance, Lexington doesn't levy an income tax. Kentucky also won't tax your Social Security benefits, and it exempts some pension income from its state tax.
"From a financial standpoint, Lexington offers a lot of attractive things," Musgrave says.
Boise, Idaho
-- Population: 216,282
-- Median House Price: $185,100
-- Cost of Living Index: 104
Boise is already on the radar of many retirees, says Jeff Martel, a broker and owner of Better Homes and Gardens Real Estate 43° North. His firm is currently developing Heritage Grove, a community for those age 55 and older, and Martel notes they have sold property to people from every part of the country.
When asked about the appeal of the city, Martel says, "I see Boise as the last affordable mountain town in the West."
Karen Davis, 72, is one retiree who's been taken in the by the community. After 40 years of living in Huntington Beach, Florida, Davis moved to Boise eight years ago to be near her son. "I looked into going to Arizona or other places, but Boise had everything I was looking for," she says.
Like Las Cruces, Boise benefits from being in close to outdoor recreation options. The 25-mile Boise River Greenbelt is a highlight for those who want to walk or bike. Meanwhile, skiers will find only a 45-minute drive to world-class resorts. While it snows in the winter, Davis calls it "designer snow" because it shows up, looks beautiful and then disappears almost as quickly as it arrived.
The low cost of living was another draw for Davis who estimates her expenses in Boise are more than a quarter less than they were in Huntington Beach. Plus, she says her lifestyle is a step up from anywhere else she's lived. Davis has an apartment at the Affinity at Boise senior living community home, which she likens to living at a hotel. The building offers an indoor swimming pool, library, movie theater, onsite beauty shop and other amenities.
Above all, Davis likes the slower pace of life and friendly atmosphere in Boise. Martel says that's something his clients notice and appreciate as well. "People still wave at you here," he says.

Culled from US News