Stocks: Ready for one last record close?

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NEW YORK (CNNMoney)

U.S. stock futures were higher ahead of the opening bell. The Dow Jones industrial average is on track to overtake the all-time high it set Monday for what could be the 52nd record close of the year.

Over the course of December, the main U.S. stock market indexes have risen by 2% to 3%. This caps off a record-setting year that saw the Nasdaq surge nearly 40% to hit a 13-year high, while the Dow and S&P 500 both hit record highs.

Related: Fear & Greed Index, still greedy

Shares for Hertz (HTZ, Fortune 500) jumped in premarket trading after the car rental company announced measures to limit the amount of shares held by individual investors, to prevent any one investor or group from gaining control of the company.

There are a few economic data releases that could influence market sentiment in the day ahead.

The latest edition of the Case-Shiller 20-city home price index will be released at 9 a.m. ET Tuesday. At 10 a.m., the Conference Board will release its monthly consumer confidence index.

Related: Stocks: 2013 is one for the record books

European markets were inching ahead in midday trading. The exchanges in London and Paris are set for an early close, while the stock exchange in Frankfurt was closed.

Asian markets ended with mixed results and markets in Tokyo were closed. Japan's benchmark Nikkei index rounded out 2013 with its biggest annual rise in more than 40 years.

First Published: December 31, 2013: 5:26 AM ET

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67-year-old Italian restaurant closes its doors

On New Year's Eve, Mike and Cathie Merlino will close Merlino's Belvedere after 67 years in business.

NEW YORK (CNNMoney)

So after nearly 70 years, Merlino's Belvedere will serve dinner for the last time on New Year's Eve.

Merlino announced the restaurant's closing on Dec. 2, which, ironically, led to a huge surge in business. Since then, the restaurant has produced over 400 gallons of its red sauce and over 700 pounds of sausage -- three times the normal amount.

But even with the bump, this year's gross revenue of $750,000 is still about 25% lower than in 2012, Merlino said. (In 2005, it was even higher at $1.3 million.)

His restaurant is a well-known destination for tourists and diners all along Colorado's Front Range, who drive hours for its award-winning homemade red sauce, pasta and steaks cured on site. It's also a favorite gathering spot for locals in this small town of 17,000. But it's been a daily battle to stay open for the last two years, in the wake of a series of natural disasters and a struggling economy.

Related: 5 of the oldest businesses in America

"In 2008-2009, there were rising gas prices on top of a weak economy," said Mike Bandera, president of the Canon City Chamber of Commerce. "We had a significant downturn in tourist traffic in the rafting businesses, and in restaurants and shops."

Sam Cruz, the restaurant's longtime kitchen manager, grill cook and handyman, has seen that reflected at Merlino's.

"In the late '80s, we had people waiting in line to get in every night," he said. "We were doing probably 150 to 200 dinners a night."

But until Merlino announced the closing, Cruz said the restaurant was doing just 20 to 30 dinners a night.

The economy of Canon City and surrounding Fremont County is built on tourism and the prison industry -- the county is home to 13 prisons, including the so-called Supermax. The county is one of the state's poorest, with a per capita income of around $17,400 and an unemployment rate of 8.7%, nearly 2% higher than Colorado as a whole.

The economic downturn is obvious in Canon City's largely shuttered Main St., which dead-ends into the Colorado Territorial Correctional Facility, the oldest operational prison in the state. Jobs are hard to come by, and many that do exist are plagued by static wages, says Merlino, a former president of the town's Chamber of Commerce.

Related: Is the economy as good as it looks?

"When you lose a lot of the local businesses like we have, people start migrating to Wal-Mart. It's a pretty dismal picture," he said.

At a time when chains like Chili's, Applebee's and the Olive Garden -- which all have locations within 40 miles -- have multiplied across the country, family-owned restaurants like Merlino's have either closed or barely managed to hold on.

"This is emblematic of what happens to a lot of family businesses, not just restaurants," said Giovanni Coratolo, vice-president of small business policy for the U.S. Chamber of Commerce. "If you're already in a recession, if a natural disaster or other unforeseen event happens, all of a sudden, you can't recover."

The Royal Gorge fire burned 3,220 acres over six days, including most of the Royal Gorge Park, and brought tourism to a halt. Bandera estimated that local businesses lost 25% to 35% of their expected yearly revenue. Merlino's, which saw a 40% drop in volume this past summer, was just one of the casualties.

Built in 1946 by his grandfather Ubaldo "Baldy" Merlino, a miner who emigrated in 1903 from Italy, the restaurant takes its name from Mount Belvedere in Italy, where Merlino's business partner and brother-in-law fought in WWII.

Related: The myth of the American Dream

"We have customers who have literally grown up with us," said Cathie Merlino, who manages the restaurant with her husband and acts as hostess. "Every birthday, graduation, marriage, they come here. Whoever it is, they become part of our family."

Over the years, the restaurant has also served a number of famous faces, including John Wayne, Charles Bronson, Nat King Cole and Jane Fonda when they were on location nearby.

The restaurant has been totally booked since Merlino made his announcement. Long-time customers are even flying in from out of state for one last meal. On a recent night, the 21 employees scrambled to keep up with the huge surge.

"On the morning after we announced we were closing, we had 89 voicemail messages requesting reservations," Merlino said.

First Published: December 31, 2013: 7:04 AM ET

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Netflix CEO Hastings gets 50% pay hike for 2014

Netflix CEO Reed Hasting is due to get $3 million in salary and $3 million in stock options in 2014.

NEW YORK (CNNMoney)

Hastings is set to receive an annual salary of $3 million and an additional stock option allowance of $3 million.

A year ago, he was awarded $2 million in salary and $2 million in options for 2013. But his final 2013 pay is expected to be significantly higher, because Netflix stock has soared this year.

Netflix (NFLX) shares are up nearly 300% this year, making it the best performing stock in the S&P 500.

Related: Portrait of Netflix's Hastings as a young man

Other top executives at Netflix also received raises, although their increases were less than Hastings' 50% pay hike.

In a separate filing the company also announced it was dropping its poison pill plan that it instituted in November 2012 after activist investor Carl Icahn bought a 10% stake in the company.

Related: Netflix's Hastings - Settle down about our stock

The plan would have allowed the board to flood the market with new shares and make a takeover prohibitively expensive if any shareholder had bought more than 10% of shares without the approval of the company's board.

Icahn has since sold more than half his stake in Netflix at a significant profit, eliminating the need for the takeover defense.

First Published: December 31, 2013: 8:27 AM ET

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Help for homeless college students

A handful of schools, aid organizations and advocates from across the country are taking steps to help homeless college students.

NEW YORK (CNNMoney)

Getting into college itself can be a major challenge for homeless teens. And even if they're determined, resourceful or lucky enough to receive the financial aid or scholarship money that makes attending college possible, new struggles often arise.

While they may live in dorms for the majority of the school year, some students have nowhere to go during breaks and are forced to pay fees to stay on campus -- which can be difficult or impossible to afford. Some of these students are too embarrassed to ask for help, while others are turned down when they ask to remain on campus, leading them to sleep outside, on friends' sofas or in shelters.

The issue has come into the spotlight recently: New legislation seeking to assist homeless college students was introduced last month, and a petition started by a student urging her college to allow homeless students to stay on campus during breaks has garnered more than 100,000 signatures.

After our recent article ran about this issue, CNNMoney received more than 60 emails from readers sharing their own stories of being homeless at college or asking how they can help.

Related: Homeless college students seek shelter during breaks

Here are some of the efforts being made.

Colleges and students step up: Kennesaw State in Georgia created a CARE Center this May, which helps students with needs like jobs, shelter and food. The school also hosts Homelessness Awareness Week, where students sleep outside for a night and can attend a full-day conference to learn more about the issue.

"Homelessness is affecting college students across the nation; yet it remains an underserved and/or unrecognized population," Kennesaw said in a statement. "KSU aspires to be a leader for social justice and change by eradicating homelessness on its campus."

After a survey of students two years ago revealed that nearly 7% had experienced or were currently experiencing homelessness while enrolled, the Community College of Denver decided to take action. It designated a housing expert in its student life department who helps homeless students with housing needs, and has established a food pantry and an emergency fund for those in need.

Related: Pay $2,000 to be homeless

Meanwhile, West Virginia University launched a food bank in 2010 called "the Rack," for homeless or financially struggling students.

"[It] went from a wire shelf with canned goods to a full-blown food bank with six freezers, as well as meat distribution days and much more," said alumni Ben Dotson, who helped start the program. "My best friend could barely cover the costs of college and if it wasn't for the Rack and that his fast food job allowed him to take home extra food I do not think he would have been able to make it."

Aquinas College, in Grand Rapids, Mich., is currently looking into ways it can help homeless students who don't have anywhere to go during breaks. This became a priority after Jessie McCormick, a homeless senior, launched a Change.org petition urging the school to do more to help homeless students like her.

Some are more entrepreneurial in their quest to help.

Aris Nance, a 23-year-old student at Dakota State University in Madison, S.D., who was homeless himself until a couple months ago, just launched a nonprofit called Sheo (Someone Helps Everyone) that creates survival kits for the homeless.

The kits include basics like a toothbrush, first-aid supplies, a list of emergency contacts and clean t-shirts. Nance wants to partner with schools and homeless organizations to provide them for free. But first he needs the funding to create the kits -- so far he has only done a few.

"I just gave two kits to [college students] I know who are going to be stuck on campus during Christmas break," said Nance.

Related: Student homelessness hits record high

How you can help: The National Association for the Education of Homeless Children and Youth offers a scholarship program that helps students with college costs and housing. It also has a higher education initiative that is urging colleges to change their policies to assist homeless students. Anyone who wants to support these efforts can donate money directly to NAEHCY.

Various organizations, like the Los Angeles Youth Network, also help runaway and homeless young adults apply for college and secure scholarships and financial aid.

The National Law Center on Homelessness & Poverty, meanwhile, has a program called Project Learn that helps students apply for college. It also ensures that homeless children are granted their legal rights, like receiving free transportation to and from school and getting free school meals. Donations can be made directly to the program here.

If you want to help out locally, you can contact your state homeless education coordinator. Find the coordinator closest to you here.

Related: North Dakota sees surge in homeless population

Some communities also have "Host Home" projects where you can open up your home to a student after you go through a background check. Runaway & Homeless Youth Act shelters and housing programs, which are scattered around the country, also provide free shelter for college students and need donations. You can look for a program near you by using this map.

Advocates recommend that you urge your local Congress member to support recent legislation introduced by Senator Patty Murray of Washington. Murray's bill would require colleges to secure housing for students during breaks, provide a point of contact for homeless students and mandate schools to ask questions about homelessness in college applications so they can help them access financial aid.

First Published: December 31, 2013: 4:24 AM ET

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Stocks: Ready to close out a record-setting year

Click on the image to see the latest premarket data.

NEW YORK (CNNMoney)

U.S. stock futures were relatively flat ahead of the opening bell -- with the Dow Jones industrial average hovering near the all-time high it set Monday.

Over the course of December, the main U.S. stock market indexes have risen by 2% to 3%. This caps off a record-setting year that saw the Nasdaq surge nearly 40% to hit a 13-year high, while the Dow and S&P 500 both hit record highs.

Related: Fear & Greed Index

There are a few economic data releases that could influence market sentiment in the day ahead.

The latest edition of the Case-Shiller 20-city home price index will be released at 9:00 a.m. ET Tuesday. At 10:00, the Conference Board will release its monthly consumer confidence index.

Related: Insanely pricey New Year's Eve parties

European markets were inching ahead in morning trading. The exchanges in London and Paris are set for an early close, while the stock exchange in Frankfurt was closed.

Asian markets ended with mixed results and markets in Tokyo were closed. Japan's benchmark Nikkei index rounded out 2013 with its biggest annual rise in more than 40 years.

First Published: December 31, 2013: 5:26 AM ET

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67-year-old Italian restaurant closes its doors

On New Year's Eve, Mike and Cathie Merlino will close Merlino's Belvedere after 67 years in business.

NEW YORK (CNNMoney)

So after nearly 70 years, Merlino's Belvedere will serve dinner for the last time on New Year's Eve.

Merlino announced the restaurant's closing on Dec. 2, which, ironically, led to a huge surge in business. Since then, the restaurant has produced over 400 gallons of its red sauce and over 700 pounds of sausage -- three times the normal amount.

But even with the bump, this year's gross revenue of $750,000 is still about 25% lower than in 2012, Merlino said. (In 2005, it was even higher at $1.3 million.)

His restaurant is a well-known destination for tourists and diners all along Colorado's Front Range, who drive hours for its award-winning homemade red sauce, pasta and steaks cured on site. It's also a favorite gathering spot for locals in this small town of 17,000. But it's been a daily battle to stay open for the last two years, in the wake of a series of natural disasters and a struggling economy.

Related: 5 of the oldest businesses in America

"In 2008-2009, there were rising gas prices on top of a weak economy," said Mike Bandera, president of the Canon City Chamber of Commerce. "We had a significant downturn in tourist traffic in the rafting businesses, and in restaurants and shops."

Sam Cruz, the restaurant's longtime kitchen manager, grill cook and handyman, has seen that reflected at Merlino's.

"In the late '80s, we had people waiting in line to get in every night," he said. "We were doing probably 150 to 200 dinners a night."

But until Merlino announced the closing, Cruz said the restaurant was doing just 20 to 30 dinners a night.

The economy of Canon City and surrounding Fremont County is built on tourism and the prison industry -- the county is home to 13 prisons, including the so-called Supermax. The county is one of the state's poorest, with a per capita income of around $17,400 and an unemployment rate of 8.7%, nearly 2% higher than Colorado as a whole.

The economic downturn is obvious in Canon City's largely shuttered Main St., which dead-ends into the Colorado Territorial Correctional Facility, the oldest operational prison in the state. Jobs are hard to come by, and many that do exist are plagued by static wages, says Merlino, a former president of the town's Chamber of Commerce.

Related: Is the economy as good as it looks?

"When you lose a lot of the local businesses like we have, people start migrating to Wal-Mart. It's a pretty dismal picture," he said.

At a time when chains like Chili's, Applebee's and the Olive Garden -- which all have locations within 40 miles -- have multiplied across the country, family-owned restaurants like Merlino's have either closed or barely managed to hold on.

"This is emblematic of what happens to a lot of family businesses, not just restaurants," said Giovanni Coratolo, vice-president of small business policy for the U.S. Chamber of Commerce. "If you're already in a recession, if a natural disaster or other unforeseen event happens, all of a sudden, you can't recover."

The Royal Gorge fire burned 3,220 acres over six days, including most of the Royal Gorge Park, and brought tourism to a halt. Bandera estimated that local businesses lost 25% to 35% of their expected yearly revenue. Merlino's, which saw a 40% drop in volume this past summer, was just one of the casualties.

Built in 1946 by his grandfather Ubaldo "Baldy" Merlino, a miner who emigrated in 1903 from Italy, the restaurant takes its name from Mount Belvedere in Italy, where Merlino's business partner and brother-in-law fought in WWII.

Related: The myth of the American Dream

"We have customers who have literally grown up with us," said Cathie Merlino, who manages the restaurant with her husband and acts as hostess. "Every birthday, graduation, marriage, they come here. Whoever it is, they become part of our family."

Over the years, the restaurant has also served a number of famous faces, including John Wayne, Charles Bronson, Nat King Cole and Jane Fonda when they were on location nearby.

The restaurant has been totally booked since Merlino made his announcement. Long-time customers are even flying in from out of state for one last meal. On a recent night, the 21 employees scrambled to keep up with the huge surge.

"On the morning after we announced we were closing, we had 89 voicemail messages requesting reservations," Merlino said.

First Published: December 31, 2013: 7:04 AM ET

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China local government debt hits $3 trillion

China's local debt levels have risen dramatically in recent years.

HONG KONG (CNNMoney)

China's National Audit Office said that local government obligations hit 17.9 trillion yuan ($3 trillion) by the end of June -- a dramatic increase from the 10.7 trillion yuan figure reported in 2010.

The audit office said that debt levels are still controllable, echoing the statements of top Communist Party officials in recent months.

For now, China's local government debt remains lower than that of many other advanced economies, such as the U.S., U.K., France, Japan, Germany and Spain.

But what is scary is the pace at which debt has accumulated. China's increase in local government debt is part of a larger issue -- a credit explosion as regional governments borrowed to finance major infrastructure projects to combat a slowing economy.

Related story: China pledges greater role for markets

Mushrooming credit is cause for concern as it has often been followed by financial crises in other emerging markets. In China, it has stoked fears that capital has been misallocated, and has further contributed to a run-up in corporate and government debt.

While the Chinese government has repeatedly said debt levels are manageable, resolving the problem has become a major policy goal.

Related story: Twitter needs an Asian strategy

Overall growth is slowing in China. The country is estimated to post 7.6% GDP for 2013, just above the government's official target of 7.5%, state media reported last week. That compares with 7.8% last year, 9.3% in 2011 and 10.4% in 2010.

Reducing reliance on credit will remain one of China's greatest challenges as it seeks to find a sustainable growth path. The government was recently tested on this issue, with the central bank forced to pump nearly $50 billion into the financial system to prevent a second damaging cash crunch this year.

Some analysts criticized the central bank for waiting too long, arguing that an earlier move could have been more effective in countering the seasonal shortage of cash. Others said the central bank's apparent reluctance to inject emergency cash is the start of a more prudent policy approach as it's one way of reining in excessive lending.

-- CNN's CY Xu and Naomi Ng contributed reporting.

First Published: December 30, 2013: 6:21 AM ET

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France's 75% 'millionaire tax' to become law

French President François Hollande had been pushing for a 75% tax on the super-rich since his 2012 presidential campaign.

LONDON (CNNMoney)

The tax was approved by France's constitutional council on Sunday after an earlier version was deemed unconstitutional last year.

President François Hollande introduced the tax as a way to force the rich to help France shrink its massive budget deficit and support the sagging economy. It had originally been created as a tax on individuals, but was eventually shifted to a tax on companies paying high annual salaries.

Related: Another 'annus horribilis' for Hollande?

According to the constitutional council, employers must pay the levy on salaries exceeding €1 million ($1.4 million) a year. The tax will apply for two years -- 2013 and 2014 -- and will not be allowed to surpass 5% of a company's annual revenue.

Hollande has said the new tax is "symbolic" and designed to make a political statement about economic fairness. The tax is not ultimately expected to be a big money-maker for the government.

"This tax was born in the heat of Hollande's [2012] presidential campaign," said James Aston, a professor of French politics at Aston University in the U.K. "It's only a tax for two years. It's temporary. So yes, this is highly symbolic."

The tax proposals prompted a severe backlash from high-profile business people, movie stars and soccer clubs.

Earlier this year, French soccer clubs had threatened to boycott a number of matches after learning they would not be exempt from the tax, though the boycotts were later called off.

The initial tax proposal also prompted famous French actor Gerard Depardieu to take up Russian citizenship to protest against the tax.

--CNN's Lilia Blaise and Sandrine Amiel in Paris contributed to this report.

First Published: December 30, 2013: 8:07 AM ET

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Crocs shares spike on Blackstone investment

NEW YORK (CNNMoney)

Crocs (CROX) shares had been down 7% year to date through Friday's close, but shares were up 9% in premarket trading on the news.

The company said that Blackstone (BX) will invest $200 million in convertible preferred shares, and use most of those proceeds to help repurchase $350 million worth of its stock. It will use excess cash to fund the rest of the repurchase program.

At current prices the repurchase program is large enough to reduce shares outstanding by about 30%, according to the company.

Related: Blackstone responds to Jon Stewart

The company also announced that CEO John McCarvel, who has led the company since 2010, is leaving the company in April. The company termed his departure a retirement, but McCarvel will only be 57 years old at the time of his departure. The company said it has begun an outside search for his successor.

The company did warn that fourth quarter revenue will be at the low end of its previously announced guidance, and that its loss will be close to 23 cents a share rather than 20 cents a share. That new guidance doesn't include restructuring charges in the quarter. Crocs also said it expects it will have charges in 2014 as well.

First Published: December 30, 2013: 9:15 AM ET

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Stocks: Losing steam as 2013 winds down

Click chart for in-depth premarket data.

NEW YORK (CNNMoney)

Little economic or corporate news is scheduled for the day and U.S. stock futures were drifting ahead of the opening bell.

Typically this time of year sees light trading volumes as many investors and traders take time off work.

The Dow Jones industrial average and the S&P 500 were little changed Friday, ending a lengthy streak of gains. The Nasdaq fell slightly. Each of these indexes has risen more than 25% in 2013.

Shares in Alcoa (AA, Fortune 500) were rising ahead of the open amid reports that Ford will reveal in January that it will start using military grade Alcoa metal in its best-selling F-150 pickups.

Related: Fear & Greed Index

On the international front, European markets were relatively flat in morning trading. Asian markets ended with mixed results.

Japan's Nikkei closed the day on a high note, rising 0.7%. The benchmark index has surged more than 50% since the start of 2013 as government policies helped boost investor sentiment.

First Published: December 30, 2013: 5:02 AM ET

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4 money resolutions to make now

NEW YORK (CNNMoney)

More than half of respondents in a recent Fidelity Investments survey said they typically consider making financial resolutions, up from 35% of those surveyed in 2009.

Of those keeping their finances in mind, 54% vowed to save more -- making it the top resolution, trailed by paying off debt (24%) and spending less (19%).

It's always a good idea to try to save more and set up a budget you can stick to. But here are some money resolutions that are especially important for 2014.

Related: Your #moneyresolutions for 2014

1. Don't be too risky with your investments

2013 has been a fantastic year for the stock market and that likely means that your nest egg is invested more heavily in stocks than it was at the beginning of the year.

As a result, now is the time to rebalance your investment portfolio to make sure that you have a proper allocation of stocks and bonds for your age and risk tolerance, said Judith Ward, a senior financial planner at T. Rowe Price.

One rule of thumb: subtract your age from 120 to determine how much of your investments should be in stocks. For example, a 50-year-old should have up to 70% in stocks -- or $105,000 of a $150,000 portfolio.

Rebalancing is easy to do. In your 401(k), for example, simply sell some of your stock investments and invest that cash in bonds. And since you don't pay taxes until retirement, the sale won't come with any extra tax headaches.

"It's counter intuitive to sell the class that's doing well, but if you let that ride and it goes down, it's a harder fall," said Ward.

Related: Are you saving enough for retirement?

2. Stop checking your statements so often

Once you've figured out that perfect investment mix, you should resolve to leave it alone.

Your nest egg will be built up over decades of savings, so short-term market fluctuations will be overshadowed by long-term gains, said Jonathan Clements, director of financial education for Citi Personal Wealth Management.

"We buy these mutual funds we plan to hold for years and years. But then we start looking at our accounts every day," he said. "If you're really saving for your retirement that's 30 years away, why does it matter?"

3. Take advantage of low interest rates

Hoping to buy a home or lower your monthly debt payments? It's a good idea to act soon.

The Federal Reserve is beginning to pull back on its monthly bond-buying program. Mortgage rates have already risen in anticipation of the Fed's pull-back, so rates are expected to rise only gradually.

Still, the 3.5% mortgages offered as recently as last summer aren't likely to resurface, so if you're thinking of buying a home, act soon before rates rise further. A 1% increase in 30-year fixed mortgage rates costs around $60 more a month for every $100,000 you borrow.

It's also a good time to closely reexamine your debt, from car loans to home equity loans, for refinancing opportunities, said Lynn Ballou, a California-based financial planner. Variable interest rates, such as those you might have on a car loan or private student loan, are inexpensive now since they are tied to the prime rate, which has been at 3.25% since the end of 2008.

But those loans will get more expensive in coming years when rates finally return to normal as the economy strengthens. At the beginning of 2008, the prime rate was more than 6%.

So if you plan to take more than a few years to pay off a variable-rate loan, shop around to see if you can lock in a fixed rate. "If it's more than a couple of years out, this is a good time to see what your options are," Ballou said.

Related: What do you most want for your career in 2014?

4. Get your taxes in order

October's government shutdown is delaying the coming tax season by 10 days, which means that early bird filers may have to wait a bit longer to receive their tax refunds.

If you're anxious to get your refund, make sure to file online, which will be processed more quickly than filings made by snail mail, said Gary DuBoff, a New York-based accountant and managing director at CBIZ MHM, a financial services firm.

There are also a variety of popular tax breaks expiring or shrinking at the end of 2013, so you'll want to prepare for how that could affect future tax bills.

First Published: December 30, 2013: 3:19 AM ET

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China local government debt hits $3 trillion

China's local debt levels have risen dramatically in recent years.

HONG KONG (CNNMoney)

China's National Audit Office said that local government obligations hit 17.9 trillion yuan ($3 trillion) by the end of June -- a dramatic increase from the 10.7 trillion yuan figure reported in 2010.

The audit office said that debt levels are still controllable, echoing the statements of top Communist Party officials in recent months.

For now, China's local government debt remains lower than that of many other advanced economies, such as the U.S., U.K., France, Japan, Germany and Spain.

But what is scary is the pace at which debt has accumulated. China's increase in local government debt is part of a larger issue -- a credit explosion as regional governments borrowed to finance major infrastructure projects to combat a slowing economy.

Related story: China pledges greater role for markets

Mushrooming credit is cause for concern as it has often been followed by financial crises in other emerging markets. In China, it has stoked fears that capital has been misallocated, and has further contributed to a run-up in corporate and government debt.

While the Chinese government has repeatedly said debt levels are manageable, resolving the problem has become a major policy goal.

Related story: Twitter needs an Asian strategy

Overall growth is slowing in China. The country is estimated to post 7.6% GDP for 2013, just above the government's official target of 7.5%, state media reported last week. That compares with 7.8% last year, 9.3% in 2011 and 10.4% in 2010.

Reducing reliance on credit will remain one of China's greatest challenges as it seeks to find a sustainable growth path. The government was recently tested on this issue, with the central bank forced to pump nearly $50 billion into the financial system to prevent a second damaging cash crunch this year.

Some analysts criticized the central bank for waiting too long, arguing that an earlier move could have been more effective in countering the seasonal shortage of cash. Others said the central bank's apparent reluctance to inject emergency cash is the start of a more prudent policy approach as it's one way of reining in excessive lending.

-- CNN's CY Xu and Naomi Ng contributed reporting.

First Published: December 30, 2013: 6:21 AM ET

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Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

21.29 | 0 komentar | Read More

Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

21.29 | 0 komentar | Read More

Stocks: Break out the champagne!

2013 has been a very good year for stocks.

NEW YORK (CNNMoney)

The final two weeks of the year are typically good for stocks, a phenomena known on Wall Street as the Santa Claus rally. Over the past 100 years, the Dow has gained in the New Year week 69% of the time, according to Schaeffer's Investment Research.

Ryan Detrick, senior technical analyst Schaeffer's, expects the momentum to continue in the near term as investors who missed the rally look for opportunities to buy into the market. While it's impossible to predict what stocks will do, "we don't anticipate anything rocking the boat," he said.

The Dow is up more than 25% and S&P 500 has gained nearly 30% so far this year. The Nasdaq has surged 38%. The Dow is on track for its biggest annual gain since 1996 and the S&P 500 is on pace for its strongest year since 1997.

Related: Are you a markets wiz?

Markets closed Jan. 1: U.S. markets will be closed Wednesday for New Year's day.

Economic reports: The economy will be in focus next week. Reports on home prices and consumer confidence are due, along with data on manufacturing activity and auto sales.

Investors will be watching all economic data closely, especially after the Fed announced plans earlier this month to begin scaling back its monthly bond purchases by $10 billion beginning in January.

Investors took the news in stride and many see the move as a sign the economy is likely just about strong enough to stand on its own.

Related: Best year ever for stock funds

The Federal Reserve's stimulus policies have been a major driver of the bull market that started in 2009. But stocks have been supported in 2013 by an improving economy and continued growth in corporate profits.

Stocks rose last week, with the Dow Jones industrial average and the S&P 500 both touching record highs. The gains came on light trading volume with many professional money managers absent for the Christmas holiday.

First Published: December 29, 2013: 9:27 AM ET

21.29 | 0 komentar | Read More

Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

19.33 | 0 komentar | Read More

Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

19.33 | 0 komentar | Read More

Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: 7 who are losing benefits

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

19.33 | 0 komentar | Read More

Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

21.29 | 0 komentar | Read More

Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

21.29 | 0 komentar | Read More

Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: 7 who are losing benefits

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

21.29 | 0 komentar | Read More

Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

19.33 | 0 komentar | Read More

Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

19.33 | 0 komentar | Read More

Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: My jobless benefits will end

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

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Burglaries jump during the holidays

NEW YORK (CNNMoney)

In several states, according to the FBI, December is the peak month for burglaries as folks leave homes unattended during the holidays.

In California, for example, there were 21,900 burglaries in December 2011 - the latest statistics available - 18% more than the average month.

Nationally, burglaries peak during the summer vacations, though December is close behind.

In many places, the week following Christmas has the heaviest burglary caseload.

Philadelphians, for example, reported 194 residential burglaries the week starting December 24, 2012, compared with an average of 143 for the same period during the following five months.

The post-Christmas burglary jump also holds true for small towns.

"Every year, we see a pretty big uptick in burglaries," said Ben Hayden, community relations officer for the Coralville (Iowa) Police Department.

Related: Most dangerous U.S. cities

A few factors seem most responsible.

Many families take off, leaving homes empty -- except for all the gifts. And winter storms can make it obvious that nobody's home.

"Criminals drive through neighborhoods looking for places to burglarize," said Hayden. "If there's newly fallen snow that hasn't been shoveled, they figure the home is empty."

He added that many townspeople put their beautifully decorated Christmas trees -- and all the gift packages stacked beneath them -- right at the front of the living room.

"Burglars can walk around and window-shop," said Hayden.

The criminals are already aware that homes are filled with loot this time of year -- jewelry, televisions, smart phones and computers. Sometimes homeowners advertise what they got for Christmas by putting out for trash collection the empty boxes their gifts came in, according to Gary Holliday, deputy chief of the Knoxville, Tenn., police department.

"Criminals find out what you got for Christmas," he said.

Related: 4 things to do after your credit card has been hacked

Daylight offers no deterrent: 65% of these crimes occurred between 6 AM and 6 PM in 2011, according to the FBI.

Police solve only about 13% of reported burglaries and do not recover all the goods even when they do nab the criminals. Losses average $1,675 per break-in.

To minimize risk, police advise homeowners to cut up boxes and stuff them into black garbage bags before putting them out for collection.

And, when you're on vacation, don't make it obvious that you're away. Have someone clear your walk, get your mail and turn lights on and off at different times.

And, be discreet about divulging plans on social media. Not everyone in the world has to know that you're going to be in Cabo San Lucas for a New Year's celebration.

"Social media is a great thing for people but it's a great thing for criminals too," said Holliday. "Criminals stake out the Internet."

First Published: December 27, 2013: 4:09 AM ET

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Many Americans feel economy isn't improving

NEW YORK (CNNMoney)

A new CNN/ORC poll released Friday showed people were pessimistic that the economy was improving. Nearly 70% said the economy is generally in poor shape, and only 32% rated it good.

Two-thirds of respondents said most of the economic news they've heard recently was bad news. More rural than urban dwellers said the economy was in poor shape.

And just over half expected the economy to remain in poor shape a year from now.

Related: Is the economy as good as it looks?

By some metrics, the economy has moved ahead this year. The stock market, for example, has surged -- the Nasdaq is up nearly 40% since January. Unemployment is at a five-year low point. Auto sales are at a seven-year high. Gas prices have dropped. And the housing sector, which dragged the U.S. into recession five years ago, is rebounding.

The Federal Reserve sees signs of strength, too. In December the central bank pulled back slightly on the stimulus that has boosted investor confidence this year.

But behind those numbers are the long-term unemployed, the under-employed and those who have dropped out of -- or never even entered -- the workforce. They're not sharing in the surging stock market, and many are about to lose jobless benefits.

Those people aren't buying big-ticket items like furniture or appliances, and some were cutting back on essentials. Thirty-six percent said they were cutting back spending on food or medicine, up from 31% in late 2008, the year the housing market collapsed.

The poll includes 1,035 adults surveyed by telephone between Dec. 16 and 19. It had a sampling error of plus or minus three points.

First Published: December 27, 2013: 6:01 AM ET

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Stocks: Santa rally may run out of puff

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures were weak, with the S&P 500 down 0.1%, pointing to a mostly softer start to trade as the Dow eked out nearly imperceptible gains.

On Thursday, the Dow Jones industrial average closed at a record high for the 50th time this year. The S&P 500 also ended at a record high, and the tech-heavy Nasdaq marked a new 13-year high.

Dubbed the "Santa Claus rally," stocks often surge in the week between Christmas and New Year.

But Joe Tatusko, chief investment officer for Westport Resources, a financial planning firm in Connecticut, said that futures were slipping on Friday because many individuals are selling stocks to reduce their tax bills.

"It's a darn good time to do some tax loss selling," he said.

Related: Fear & Greed Index gets greedy

Markets have charted big gains this year. The Dow and S&P 500 are both up more than 20%, while the Nasdaq has soared over 30%.

The Dow is on track for its best year since 2003 and the S&P 500 on pace for its strongest year since 1997.

Several factors have helped spur gains this year including ongoing economic stimulus from the Federal Reserve, increased confidence in the economy and solid corporate earnings growth.

Related: Best year ever for stock funds

Earlier this month the Fed announced that it will modestly reduce its bond buying program in January. But many experts believe the bull market will continue for a sixth year in 2014, albeit at a more modest pace.

European markets rose in morning trading, led by a 0.7% rise on Germany's DAX. London's FTSE gained 0.5% and France's CAC 40 put on 0.6%.

Asian markets ended the week on a positive note. China's Shanghai Composite rose 1.4% and Hong Kong's Hang Seng Index added 0.3%.

First Published: December 27, 2013: 4:53 AM ET

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Price of stamps to go up 3 cents

The price of a stamp will go up 3 cents in January.

NEW YORK (CNNMoney)

A panel overseeing the U.S. Postal Service approved a three-cent hike from the current price of 46 cents. It will take effect on January 26.

That includes a one-cent increase -- to keep pace with inflation -- approved by the Postal Regulatory Commission last month. At the time, the cash-strapped Postal Service had sought the three-cent bump.

Related: USPS to rent mail vans

The additional two cents are intended to be temporary and to recoup losses the Postal Service suffered during the recession, the commission said.

It said the Postal Service must regularly report how much money the increase brings in and "develop a plan to phase out the rates once they have produced the revenue justified by their request."

Related: Postal Service delivers Amazon packages on Sunday

But the agency is in deep trouble with the shift away from mail and to the Internet. It reported a $5 billion loss in the most recent fiscal year, and a $16 billion loss in 2012. Those losses include expensive contributions to retiree health care required by Congress.

The Postal Service has considered paring back mail delivery and expanding the more profitable package delivery to bring in more revenue.

Related: Postal Service would love to ship you beer

Customers who purchase forever stamps before the new price takes effect will continue to pay 46 cents.

--CNNMoney's Jen Liberto contributed to this report.

First Published: December 24, 2013: 5:49 PM ET

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China debt grows to $4.6 trillion

China's local governments, like Anhui province, have borrowed too much in recent years, pushing debt up to $3.3 trillion.

HONG KONG (CNNMoney)

The world's second-largest economy has been struggling to arrest local government debt -- the result of easy credit and round after round of stimulus.

While it's hard to gauge the scale of the problem, a recent government think tank report may shed some light. The Chinese Academy of Social Sciences estimates local government debt reached 19.94 trillion yuan ($3.3 trillion) by the end of 2012. Local government debt accounts for most of total government debt, which is expected to have hit 27.7 trillion yuan ($4.56 trillion), or roughly 53% GDP.

The report puts local debt at double what it was three years ago, when China last conducted a nationwide debt audit. Results of the most recent government debt audit, launched in July, haven't been released.

Related story: Alarm bells ring over China's debt problem

For now, China's local government debt remains lower than that of many other advanced economies, such as the U.S., U.K., France, Japan, Germany and Spain. But what is scary is the pace at which debt has accumulated. China's increase in local government debt is part of a larger issue -- a credit explosion as regional governments borrowed to finance major infrastructure projects to combat a slowing economy.

Mushrooming credit is cause for concern as it has often been followed by financial crises in other emerging markets. In China, it has stoked fears that capital has been misallocated, and has further contributed to a run-up in corporate and government debt.

While the Chinese government has repeatedly said debt levels are manageable, resolving the problem is on its radar. Societe Generale economist Wei Yao said Beijing recently identified handling debt as a major policy goal.

At an economic meeting in December, the government "kept the prudent monetary policy stance for 2014 and set debt risk management as one of key policy tasks for the first time," Yao said.

"Given this, we do not expect China's domestic credit environment to improve anytime soon and as a result growth deceleration will probably resume."

Related story: China's bad debt breaks Hong Kong IPO logjam

Overall growth is slowing. China is estimated to post 7.6% GDP for 2013, just above the government's official target of 7.5%, state media reported. That compares with 7.8% last year, 9.3% in 2011 and 10.4% in 2010.

Reducing reliance on credit will remain one of China's greatest challenges as it seeks to find a sustainable growth path. The government was recently tested on this issue, with the central bank forced to pump nearly $50 billion into the financial system to prevent a second damaging cash crunch this year -- at the last minute. By then, China's benchmark index, the Shanghai Composite, had already tumbled for nine consecutive days.

Some analysts criticized the central bank for acting late; an earlier move could have been more effective in countering the seasonal shortage of cash. Others said the central bank's apparent reluctance to inject emergency cash is the start of a more prudent policy approach as it's one way of reining in excessive lending.

First Published: December 26, 2013: 5:25 AM ET

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