While the S&P 500 flirts with all-time highs, many investors may be wondering how much more room do we have to go? Here's why some economists believe a recession is "several years away."
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Over the years, taxpayers have concocted a lot of zany arguments to justify tax deductions. Kiplinger has come up with 15 of the most creative ones that the courts decided did not quite work.
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A new report shows that global temperatures are already halfway to two-degree warming limit. Here are some of the dire consequences that could ensue.
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Five strategies for getting the best deal on new clothing = super cheap brand name clothes for less than thrift store prices.
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He spent five years studying the daily activities of wealthy individuals. Here are five myths he uncovered.
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We constantly hear claims that Social Security is in trouble. Investopedia provides this unbiased review of privatization of the Social Security system.
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The Hyperloop, a new high-speed transportation system, would travel more than 700 miles per hour, around the speed of sound. The 383-mile trip from Los Angeles to San Francisco would take 34 minutes.
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Why Facebook CEO's paternity leave is a big deal. Zuckerberg's high-profile paternity leave reminds us that paid leave isn't a favor to women - it's a better way to run a company.
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An examination of hundreds of toys by the U.S. PIRG Education Fund has turned up 22 that could present special risks for young children.
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Instead of making the same recipes over and over again, try one of these dishes at $5 or less per serving.
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 More Mexican immigrants have returned to Mexico from the U.S. than have migrated here since the end of the Great Recession, according to a new Pew Research Center study.
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As you may have suspected, some of the biggest celebrity names in the world aren't real names at all. Here are eight examples of celebrities who changed their name, and what they're really called. Who ever heard of "Roger Nelson?"
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Apple's iPad Pro doesn't just give you a bigger screen, it gives you a palette. With a 12.9-inch screen, the first time you hold it, you're in awe.
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In warm appreciation of our association during the past year, all of us at Chornyak & Associates extend our very best wishes for a happy holiday season. The end of the year naturally brings our attention to financial planning for the new year. Be sure to read our feature article on planning tips concerning flexible spending accounts, Medicare, stocks, IRAs and more. In addition to reviewing this important checklist, please feel free to contact us at 614-888-2121 or 877-389-2121 toll free, or by e-mail at chornyak@chornyak.com with any questions or concerns you may have.
 Scientists warn us that climate change is becoming a greater and greater threat to the survival of our planet as we know it. Our "What's Happening Now" section on the left contains a link to a disturbing CNN article. With a crucial global climate summit in Paris going on, NOAA, NASA, and other global temperature monitors show that the planet is halfway to two degrees of warming, the much-publicized limit of "controllable" climate change.
 On a lighter note, while the idea of people traveling in tubes has been around for more than a century, entrepreneur Elon Musk has drafted actual blueprints for the "Hyperloop." He then challenged the engineering community to build it. We now have artists' renderings and mock-ups of what the Hyperloop could look like. Don't miss this! We hope you enjoy all of the interesting articles that we've curated for you this month.
Sincerely,
Joe
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Financial planning tips for year end
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 With the end of 2015 approaching, it's time to begin organizing your finances for the New Year. Commonwealth Financial Network has put together a list of financial planning tips that warrant consideration.
Flexible spending accounts
Money that you've put in your flexible spending accounts (FSAs) generally must be used by year-end or forfeited. The IRS, however, does allow participants to carry over up to $500 of unused funds into the next year. Your employer plan must elect to participate in this option, so be sure to check to see if you can take advantage.
If your employer has not elected this option, schedule those doctor's appointments or stock up on items that are eligible for flexible spending. Doing this as soon as possible may relieve some last-minute headaches and ensure that you don't lose your hard-earned dollars.
Additionally, open enrollment begins around this time of year for certain employee benefit plans. If you're not using an FSA, take stock of your average expenses that would qualify and determine if setting one up for 2016 makes sense for you. If you already have an FSA, use whatever excess or deficit you have to calculate your allotment for next year.
Medicare enrollment
Open enrollment for Medicare started in October and ends December 7, 2015. For many, this is the only chance to change health and prescription drug coverage for 2016.
Recharacterization of Roth IRA rollovers or conversions
If you converted a traditional IRA to a Roth IRA during 2015 and paid tax on the conversion, mark your calendar now to allow plenty of time to recharacterize (i.e., undo) the conversion. The deadline is your tax-filing deadline plus any extensions.
Reporting losses on stock sales
Be aware of deadlines regarding trading date closings. A trade to sell a long position must be executed by the close of the last trading date of the current year. Similarly, a trade to sell a short position must be executed so that it settles by the last trading date of the current year.
Retirement planning
Review your retirement plan allocation and contribution elections. If you're not taking full advantage of matching features or potential tax benefits for maximizing your contributions, now is the time to evaluate your ability to do that. Also, when it comes to qualified savings, assessing your allocation to ensure that it's still in balance and pursuing your objectives will help you start the year off right.
Taking stock of savings
Did you set savings goals for the current year? Make a realistic assessment of them and think about goals for next year. If you determine that you are off track, let us help you develop and monitor a financial plan.
� 2015 Commonwealth Financial Network�
Continue reading the article here.
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Fees down, tougher security features mark
new era for gift cards
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 Brian O'Connell of The Street gives us the lowdown on gift cards this holiday season. Although fees are involved, this gifting option is attractive because it eliminates the uncertainty of potentially making the wrong choice and provides an alternative to going shopping.
The U.S. gift card marketplace is a crowded and dynamic one. According to CardHub.com, the size of the domestic gift card sector should reach $131 billion in 2015, up 6% from 2014 and up from $87 billion five years ago. But with growth comes change, and gift cards are no different, especially when security for our plastic is increasingly of the essence. Gift-card feesA new report from Bankrate.com reports that with the holiday shopping season here, fees linked to gift cards "are on the decline" while "security protections are on the rise." Bankrate states 50% of the gift cards surveyed now offer the ability to add a security code (up from 35% in 2014), which can help protect the balance on a lost or stolen gift card. Also, only 4% of store-specific cards charge purchase fees, while all widely-held general-purpose cards (such as American Express or a Visa gift card) charge purchase fees. Still, most general use gift cards charge fees, ranging from $3.95 to $6.95, no doubt a continuing annoyance to gift card buyers this holiday shopping season. Neglect and indifference among consumers is still a problem, as 25% of U.S. consumers say they have lost a gift card before using up its full value. "With so many recent data breaches and the transition to EMV chip credit cards, security is top of mind for many Americans," says Claes Bell, a Bankrate banking analyst. "Retailers are taking note and have made gift cards a much safer way to spend money." Online gift cardsGift cards continue to be a wildly popular choice - 76% of Americans have given someone a gift card and 83% have received a gift card. The most common value given is between $25 and $50, across all income levels, Bankrate reports. " Gift card gotchas are much rarer than they used to be," adds Bell. "Everyone should still do their research before making a purchase, but generally, consumers don't have to worry about being swindled when buying or using a gift card from a major bank or retailer." One big change that's driving change in the gift card market is the transition from store-bought cards to online-purchased "e-cards." "Online gift cards, or eGift cards, are a fast and convenient ways to purchase a gift for friends and family," says Monica Eaton-Cardone, chief operating officer at Chargebacks911, a Clearwater, Fla.-based risk mitigation and chargeback management services for online businesses. "eGift cards are popular for several reasons. They're offered by most major retailers, funds are available for use within minutes, and balances can be monitored online." "Also, lost or stolen gift cards can be replaced with a call to customer service and additional security comes in the form of unique ID codes," Eaton-Cardone adds. Mobile technologyOf course, mobile technology is driving gift cards in that direction and should continue to do so for years. "The biggest development is the accelerating growth of digital and mobile gift cards," says Ben Kaplan, president and chief executive officer at CashStar, a digital gifting company based in Portland, Maine. "Consumers are becoming more comfortable with richer personalization options and convenience especially as mobile payments services like Apple Pay and Android Pay grow in popularity." Continue reading here.
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When to choose credit over debit
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"Debit or credit?" You hear it almost every time you use plastic and you probably have a preferred answer. But did you know there are some circumstances when one might be better than another? Nicholas Pell of mintlife.com gives us these five situations when you might want to choose credit over debit:Online Purchasing
When shopping online, there's no question: you should always use credit because it's much harder to get a refund using a debit card than it is with a credit card. Your chances of successfully getting a refund for online scams - one of the biggest complaints the Better Business Bureau (BBB) gets every year - are far greater with credit than debit. In fact, claims over purchases of $50 or more must be resolved within 60 days, as mandated by Federal law. Making deposits online is another area where the BBB receives many complaints; so paying a deposit with a credit card is another good way to safeguard your transaction. Restoring Credit
If you have bad credit and are trying to build it back up, you might want to consider using a credit card whenever possible. Debit card transactions are usually not reported to the major credit reporting agencies. Provided you pay the balance off at the end of every billing cycle and don't spend money you don't have, this can be a great way to build up credit. Are you worried that this system will have you racking up too much debt? Set up a separate bank account just for the money you plan on spending with the credit card and then transfer the money to your credit card as you spend it. You can also track your real time spending using a free money management tool like Mint.com. With Mint, you will be able to easily track how much money you've spent and rebuild your credit, while still maintaining financial responsibility. Recurring Payments
A lot of people don't like recurring payments even though they make it easy to pay your bills on time. One problem with using debit for recurring payments is if you make an accounting error, the payment will still go through and you'll have overdraft charges on top of the bill. Even if you only overdraw a few times a year, the high fees add up quickly. Using a credit card for your recurring payments reduces the risk of accidentally overdrawing your bank account. Travel-Related Purchases
Many travel-related purchases, like rental cars and hotel rooms, require a credit card when checking in. You also might be required to make some kind of a deposit when you make a travel reservation. If you use debit instead of credit to make a deposit, the money is immediately debited from your bank account, putting you out several hundred dollars in cold, hard cash. Finally, many credit card companies offer premium points for customers making travel-related purchases or include extra services, like extended insurance on car rentals. Big-Ticket Items
Know your credit card's reward system inside and out to make the most of your big-ticket spending. Of course, you should always save up cash for any big-ticket items before you throw down your credit card. Mint.com's "goals" tool helps create a savings plan that allows you to reach your goal easily over time. As long as you have the cash on-hand, paying for pricey items on a credit card and then paying the balance off immediately is a great way to take advantage of your credit card's reward system. Final Analysis
Credit cards tend to offer more in protection and rewards. If you're very good at budgeting and don't overspend, there are few reasons not to use a credit card - especially if you avoid interest charges by paying off the balance at the end of each billing cycle. Still, most people will not find this a realistic option. These people should only use credit cards when fraud is a concern.
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Market Update
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Markets struggle with conflicting news
After a strong October, U.S. stock markets bounced around throughout November, with early gains vanishing by mid-month though returning at month-end. The Dow Jones Industrial Average was up 0.71 percent, and the S&P 500 Index showed a smaller gain of 0.30 percent. The Nasdaq was once again the champion, increasing 1.09 percent for the month.
The best-performing stocks in November were those of small companies, with the smallest firms posting the largest gains. Growth outperformed value in the smaller companies but not in the larger. Although the U.S. markets in general treaded water, the outperformance of smaller companies suggests that investor risk appetite remains solid, though there may be concerns about the pricing of larger companies.
The small gains for most indices were driven by mixed fundamentals. Per FactSet, with 98 percent of S&P 500 companies reporting by November's end, almost 74 percent had beaten their estimated earnings, but only 45 percent had higher-than-expected revenues. In the aggregate, third-quarter earnings declined 1.3 percent. Although this is much better than the 5.1-percent decline expected at the start of the quarter, it is still the second quarterly earnings decline in a row-the first time that has happened since 2009.
Technically, markets remain well supported. At month-end, all major indices were well above their 200-day moving average trend lines, typically a sign of continued strength. Seasonal factors are also supportive, with year-end often a strong time for the markets.
U.S. fixed income struggled. The Barclays Capital Aggregate Bond Index was down 0.26 percent for the month, driven by an increase in rates, as the 10-year U.S. Treasury bond yield rose from 2.16 percent at the start of November to 2.21 percent by month-end. The prospect of an increase in rates by the Federal Reserve has started to concern investors, but low yields in Europe and Japan, spurred by continued central bank stimulus, acted as an anchor on U.S. rates. High-yield, as reflected in the Barclays Capital U.S. Corporate High Yield Index, fared even worse, down 2.22 percent, primarily on worries about the energy sector. This decline led the index into negative territory year-to-date.
International equity markets did significantly less well than their U.S. counterparts. The MSCI EAFE Index, which covers developed countries outside the U.S., lost 1.56 percent, giving back some of October's gains, as the refugee crisis in Europe continued to both hurt growth and provoke political confrontations. In response to the prospect of increased interest rates, the MSCI Emerging Markets Index was hit even harder, declining 3.96 percent for the month and taking back more than half of its October gains. Technically, both MSCI indices showed signs of weakness, trading below their respective 200-day moving averages and suggesting further weakness ahead.
U.S. economy growing, but showing signs of slowing
The U.S. economy continued to grow, although there were signs of a slowdown. Driven by lower-than-expected declines in inventory growth, gross domestic product growth for the third quarter of 2015 was revised up-to 2.1 percent from the disappointing initial estimate of 1.5 percent. This encouraging news was reinforced by a very strong jobs report at the start of November, with 271,000 jobs created-almost 50 percent above expectations-and with wage growth finally showing an increase. Personal income also showed strong growth, at 0.4 percent for October, up from 0.2 percent in September.
But even as jobs and income increased, consumer confidence declined in November, per both major surveys, and spending growth remained weak. Retail sales were up only 0.1 percent, while the more inclusive personal consumption numbers were also at 0.1 percent, indicating that the economic impact of the improved employment conditions has been limited. Other signs of slowing growth included the housing market, where many measures-housing starts, new home sales, and existing home sales-were down from previous months, while other measures grew but failed to meet expectations.
Much of the economic weakness appeared to be concentrated in the industrials sector, with the ISM Manufacturing survey dropping in November to its lowest level since 2009. A large portion of the drop was due to a continued decline in durable goods orders. At the same time, however, the services sector continued to do relatively well. Business confidence, from the ISM Nonmanufacturing survey, stayed at high levels despite small declines, and the more forward-looking indicators-employment and new orders-were up strongly. Because services comprise seven-eighths of the economy, this is a positive indicator.
Overall, although the data indicates some softening, the economy is still growing, albeit at a slower rate. Many of the weak statistics appear to be based on one-time factors, and there are signs that conditions might be better than they seem. The consumer confidence data and low spending growth, in particular, could well be driven by slow third-quarter growth rather than by the more upbeat recent employment figures. The Fed seems to think so. The October meeting minutes for the Federal Open Market Committee suggested that the Fed sees the economy as continuing to grow at a solid pace. Weakness seems attributable to a mix of the strong U.S. dollar and slow growth elsewhere in the world, rather than in the U.S., making export markets weaker and slowing demand for U.S. goods.
The rest of the world continues to weaken
Europe is still struggling economically, particularly in the peripheral countries, compounded by the political issues associated with the influx of Syrian refugees. The European Central Bank has continued its stimulus program and is widely expected to dial stimulus up at its next meeting. Europe, while not actually moving back into recession, has shown very slow growth levels. It remains quite possible that the continental economy will start to contract, as even Germany's growth has declined and as major economies such as France and Italy face the need to cut spending.
Japan also continues to grow slowly, despite its own central bank's quantitative easing program designed to create inflation and reduce the value of the yen. Other countries with economic worries include Russia, which is suffering from sanctions because of its actions in Ukraine, as well as low oil prices, and China, which continues to report growth but at the cost of central bank-financed stimulus. In both Russia and China, the likelihood is for slower rather than faster growth ahead.
This global weakness will continue to hurt U.S. exports, either through lower sales or a stronger dollar, both of which are already happening. Exports, however, are a relatively small part of the domestic economy, so damage should be limited. Further limiting any damage will be the positive effects of a stronger dollar, in particular the effect of making imports cheaper, especially oil. With oil prices already low, and with continuing strong U.S. production, low oil prices may be with us for a while, which should create a boost to growth that could be larger than the losses incurred by reduced exports.
Positive trends should persist through year-end
The many concerns around the world and the very real risks at home notwithstanding, the signs at this point are still positive. Trends for financial markets, employment, and economic growth are all good, and even the risk factors-primarily the strong dollar and weakness elsewhere-have offsetting advantages for the U.S. At the same time, however, the positive conditions have led to richly priced U.S. markets, leaving them open to the possibility-as we saw in the third quarter-of a pullback.
Because of this risk, I believe a diversified, regularly rebalanced portfolio that harvests gains from fully priced areas and invests in more attractively priced options remains the best solution for most investors. A long-term perspective is still the outlook to adopt in an uncertain world.
Authored by Brad McMillan, senior vice president, chief investment officer at Commonwealth Financial Network.
All information according to Bloomberg, unless stated otherwise.
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