Twila Van Leer

Online Retail Holiday Hiring

October 27, 2015 By Twila Van Leer

The annual mercantile boost in hiring to cover the holidays shows the way shopping is shifting. The online giants are already beefing up employee numbers while traditional in-store shopping outlets are lagging, pre-holiday surveys show.

Amazon, which stands near the top of the heap in on-line retailers, expects to have up to 100,000 holiday employees, while WalMart says it will add some 60,000 temporary employees, Target some 70,000 and Macy’s 85,000, according to the National Retail Federation.

Amazon, which is headquartered in Seattle, Wash., reported recently that it will be hiring across the country to fill an estimated 25,000 jobs as it begins looking toward the holiday demands. The early hires are being placed in fulfillment and sorting facilities. More workers will be added as the demand kicks up. Last year, the company hired some 80,000 workers for the high-demand season, according to a report from Challenger, Gray & Christmas.

Smaller retailers show lower numbers, with Kohl’s looking to add about 2,000 workers, a 2 percent increase overall. Some retailers, including J.C. Penney and Toys R Us, reported they will hire fewer workers during the season.

These predictions show a turn away from traditional sales floor and cash register jobs that bloomed for the big-spending season. As more people opt to shop online, the shift will continue.

The upcoming holiday frenzy is being born at a time when the national economy is not particularly thriving, the Labor Department suggests. A September slow down in hiring in the retail sector shows things are a little dicey. Average hourly wages are down one cent. A lukewarm average hourly increase of 2.2 percent over the year is not a great harbinger either, department figures show. The net effect may be a dampening of holiday spending overall.

The National Retail Federation, nevertheless, has predicted a 3.7 percent increase in spending for the last quarter of the year, with a total of $630.5 billion poured into retailers’ coffers. That is down from last year, which posted a 4.1 percent increase in spending over the holiday season.

The online segment of the retail industry will post the largest gains, according to the prognosticators, with increases of 6 to 8 percent. Last year, the increase for online merchants was 5.8 percent.

Stuck In The New Sandwich Generation

October 27, 2015 By Twila Van Leer

If you are part of the so-called “Sandwich Generation,” finding yourself the filling between your own children and your aging parents, you’ll understand how the peanut butter in your PBJ feels.

An increasing number of Americans find themselves in this position, and are learning firsthand how the pressure from both sides affects their personal finances. The dueling responsibilities can create financial uncertainties that working couples didn’t foresee.

The Pew Research Center reports that in 2005, some 45 percent of Americans had a parent 65 or older and were still supporting a child. By 2012, the figure was up two percentage points to 47 percent. For those actually contributing to the support of parents, the financial stresses were showing up in the quality of their economic situations.

As the life expectancy in America climbs, experts suggest that one in seven adults in the working years will be proving for both children and one or two parents. When the elderly develop health problems that go beyond the ability of families to cope at home, the expenses can skyrocket. The average cost of a semiprivate nursing home room is $80,300 per year. That scenario can be devastating to a family still involved in child-rearing.

Planning ahead helps, although the variables make such planning imprecise. Trying how to anticipate costs associated with an aging parent at the same college bills are building on the other end is a challenge, but it is better to make a stab at planning than to be caught unawares. Consider such factors as the current health status of the parent or parents, how much they have in assets, whether they still own a home or other financial resources and how they have managed their finances in the past as you try to plan.

Sacrificing the needs of your own family to make provision for parents may be shortsighted. Dipping into your retirement assets to care for them may lead to long-term problems in the future. If you have grown children thrown into the mix and they want to come home to live temporarily – a scenario that is more and more common – be certain they understand they have to make a contribution to the finances. On the other hand, carefully assess the real needs of parents before crippling yourself financially to see them through. Your own retirement should remain Goal No. 1. Weighing the relative needs of children who are still gaining education and getting established in jobs with the needs of the elderly can be very tricky, but it sometimes has to be done. Look for help from government social services, your church, siblings, veterans’ organizations and other sources before dipping too far into your own pockets.

One useful resource for information on long-term care is longtermcare.gov. Eldercare.gov will access the National Association for Area Agencies on Aging. It provides for information on local resources such as transportation, in-home services and housing for the elderly.

If you have a parent living in your home for at least six months, you may be able to claim a dependent-care credit on your income taxes.

Expect an emotional journey and keep in mind that some day you’ll cease to be the peanut butter and take your place as the end piece of bread.

Overworked? Take Back Your Down Time

October 26, 2015 By Twila Van Leer

The old adage that “All work and no play makes Jack a dull boy” is still true. Especially in today’s work format that often keeps an employee on the job long after the clock says, “Go home.”

Work can tend to overwhelm those who continue working when the have left the office. Keeping the technology at bay for a break now and then may have to become a conscious effort to avoid being drowned in the process.

Working a 40-hour per week traditional schedule is becoming more and more an anachronism. Data from the 2013 and 2014 Gallup Work and Education surveys showed that American workers put in an average 47 hours in a typical week. That’s almost an extra work day in the standard period. A lot of the activity takes place outside the usual work site.

Employees find themselves checking work emails at home or taking business calls after they have left the office. There are some ways to minimize the extra-office work time, including these:

Schedule off-work activities for times when you are not expected to be at the office. Exercise classes or free gym time, for instance, can be set at early morning times. Paying a trainer to help you stay in trim may be incentive to adhere to a schedule. Make arrangements with a family member or friend to enhance the chances you will take the time. Set up activities one or two nights a week. Make it an objective to leave the office on time no less than 20 percent of the time.

Involve your co-workers in off-site activities. Set up a company softball or bowling team or other inclusive activity, for instance. That will strengthen bonds and offset the tendency to go on working when the workday ends. Talking shop is inevitable, but keep it at a minimum.

Turn off the devices. Smartphones and Tablets. They’re wonderful for keeping tabs on work-related things, but take a break! They keep you connected to the office and can impinge on family and relaxation time. In 2013, Opinion Matters conducted a study that showed 39 percent of workers checked their work emails outside of their regular work hours, and 81 percent said they do it on weekends. If you are serious about cutting the cord and giving yourself that respite from work that you really need, turn them off.

The job is important. We all know that. But the job will go better if you mix in some non-work activity. Try it. You’ll like it.

Stay Wary Of Fraud As Chip Cards Become Common

October 26, 2015 By Twila Van Leer

The race to protect American consumers from fraud and identity theft by the advent of cards with chips embedded in them is expected to work – to a degree. But the fraudsters are on the job, too, looking for ways to get around the new technology.

The new “smart cards” feature a chip that encrypts every transaction, making it much more difficult for people looking for information that aids them in their fraudulent aims. Americans are receiving the new cards from the companies that issue their credit and debit cards. The switch is going more slowly than economists had hoped, but the number of chip cards in use is expanding. Part of the problem lies in the fact that merchants have not put the necessary card-reading technology in place. Over time, however, the chipped cards will become the norm.

But in case you have new chip cards and are feeling invulnerable to fraud, hold on. Those who would like to steal your information are already in action. They are sending out emails or text messages that purport to be from the financial institution sponsoring the cards. The messages say the consumer needs to provide information through a link or by responding to the message in anticipation of receiving a new card.

If you receive such a communication addressed to “Dear Cardholder,” recognize it as an attempt to steal your information. Contact your credit card company or bank and confirm that the message is legitimate before you provide any information.

The smart card technology is expected to greatly reduce credit card fraud, but there are chinks in the system. In the United Kingdom, which initiated the chip approach in 2004, credit card theft has decreased by 75 percent, but the fraudsters have moved more aggressively into online purchases and ATM card skimming.

Be sure you are using a secure website for online payments, keep a paper record of transactions and be alert for any suspicious activity, the experts advise. An informed consumer is definitely the fraud perpetrator’s worst enemy. No matter how sophisticated the efforts to protect consumers, there will always be a need for caution.

How Wise Are Lengthy Auto Loans?

October 24, 2015 By Twila Van Leer

When you buy a new car with terms stretching five years or even more, what are the financial consequences?

Obviously, you’ll pay more interest. But in the meantime, your earnings likely will grow and the monthly payments will be more affordable. You might be able to increase your payments, erasing the effects of the interest.

Car buyers are increasingly using this tactic to pay for vehicles, which are becoming more expensive all the time. Experian Automotive reports that 30 percent of all new vehicles purchased in the first three months of this year were financed over six to seven years. Sixteen percent of used vehicles, ditto.

Lower interest rates, more extensive manufacturer warranties and the better durability of today’s vehicles make the longer pay-off periods acceptable to many buyers. People today tend to keep a vehicle longer as well, on average about eight years, according to automotive sources.

Before diving into a long-term loan for a car, consider these factors:

Look at overall costs, not just the monthly payment. The salesman on the lot will try to focus your attention on monthly element, but consider total price, down-playing sticker total and interest. Keep in mind that the interest on an auto, unlike mortgage interest, is not tax deductible.

If you can come to the lot with a preapproved financial guarantee in hand, you can negotiate based on total cost and consider the details later. Compare the preapproved amount with the dealer’s offer and then make a decision. An Edmund’s interest rate calculator will provide an honest appraisal of how much you will pay over the term of a six or seven year loan. The calculator can be accessed at http://www.edmunds.com/calculators/simplified-pricing.html

How long do you estimate you will have the vehicle? If you expect that you will have it for some time after it is paid off, you can look forward to a period free of car payments. The trade-off may be more costs for car repairs and upkeep. The amount you can expect for trade-in value also will have declined.

Most experts in the field discourage using a long-term loan to purchase a used vehicle. Suppose your choice of a used vehicle is three years old. If you are still paying on it seven years later, it is 10 years old and for many vehicles, that is approaching the end of its usefulness.

Depreciation is a factor. In the case automobiles, it begins the moment you drive it off the dealer’s lot. If you choose to sell the car in the first few years, you are looking at a loss if depreciation has outstripped the value. And the potential for accidents may enter into the picture. If you total your vehicle when it is three years old, for instance, it’s likely you still owe more on the loan than the vehicle’s current worth. That’s known in the trade as being upside down on the loan.

A long-term loan may be the answer to your desire for a newer, safer car, but don’t leap until you are sure of all the financial facts.

Twila Van Leer

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