Home     Log in    XML, RSS Subscribe Feed (RSS)     XML, RSS Comments Feed

Posts Tagged ‘The Wall Street Journal’

« Older Entries

Facebook Slow To Consider Going Public

March 5th, 2010 by Matthew C. Keegan | 2 Comments | Filed in News

Facebook continues to grow at a meteoric pace with some 400 million people registered with the world’s most popular social networking site. But what Facebook isn’t rushing to do is undertake its eventual transition from a private to a public company. Its 25-year-old chief executive, Mark Zuckerberg, remains steadfast in his stance that a slow approach is in his company’s best interests.

Going Public

FacebookIn the Mar. 4, 2010 issue of “The Wall Street Journal,” Zuckerberg was reported to say, “we’re going to go public eventually, because that’s the contract that we have with our investors and our employees. We are definitely in no rush.”

When Facebook goes public it could spark a revival in the IPO market for Silicon Valley firms. That market has been relatively quiet over the past few years as a stiff economic downturn and lack of available product has tempered the market.

Facebook Valuation

Still, when Facebook does go public its ultimate valuation could shake the market. As recently as January, Facebook’s estimated valuation was pegged at $14 billion though some have speculated its ultimate worth as being far greater than that amount.

Zuckerberg noted that Facebook doesn’t need the capitalization an IPO would bring at least not yet. The company routinely plans and reviews various new offerings and extensions of its service, but it isn’t in the position to have to choose to do anything because of shareholder pressure.

Zuckerberg seems happy with the delaying the inevitable, perhaps realizing that when change does come it will forever alter his influence with a company he started in a Harvard dorm in 2004.

Virus Laden?

With its unheard of growth, Facebook users have faced numerous problems particularly when it comes to viruses, worms, trojans and other nasty surprises. Applications accessed through Facebook itself are usually safe, but users often mistakenly look around the internet for downloads learning later on that their computers have been infected, sometimes infecting other Facebook users in the process.

In an article appearing on the instructional eHow.com website, computer pro JE Meyer offered tips on “How To Kill A Facebook Bot,” outlining steps every computer user who frequents Facebook should take. That approach includes downloading and using a three product cocktail: Malwarebytes, SuperAntiSpyware, and Avast to knock viruses, worms, trojans, key loggers and other pests from their systems.

Problems or not, Facebook is changing the way that we communicate. Lots of people have given up their blogs and no longer use email, preferring to conduct most of their online activity via Facebook. In effect, Facebook is their computer access, bypassing mostly everything else including Google Search.


Tags: , , , , , ,

Last Minute Tax Filing Strategies

March 1st, 2010 by Matthew C. Keegan | 2 Comments | Filed in Money Management

My federal and state taxes are done and filed, completed weeks earlier than they were last year. I set out to do my taxes early, but I still had to wait on some forms and verify other information before I could complete my work.

tax calculatorLots of people wait until the final weeks before doing their taxes and that isn’t a bad thing especially if you owe. Why give the government money sooner than you have to?

I did notice some important changes for the 2009 tax year which showed up in my tax preparation software program. Whether you rely on H&R Block’s software, TurboTax, or some other tax program you should be on the look out for certain money saving deductions including the following:

Helping Haiti – Although the earthquake happened during the 2010 tax year, Congress has decided to allow Americans to declare their donations as a 2009 deduction. But your chance to donate and receive a deduction ended on February 28 so any deductions made from here on this year will need to be declared with your 2010 tax filing. (see IRS.gov: Haiti Relief Donations Qualify for Immediate Tax Relief)

Tax Free Unemployment – You pay unemployment insurance yet the federal government still taxes you for taking this benefit. What is the sense in that?! For 2009 and for 2009 only, the first $2400 of that is tax-free. If you and your spouse collected, then you can exclude $4800. (see The Wall Street Journal: Deducting Job Hunting Expenses)

Your New Home – Congress played around with a tax deduction for new home buyers last year, offering an $8000 tax credit for most of the year before amending the law later to include a $6500 tax credit for other buyers who bought a house after November 6, 2009. Confused yet? Wait, there is more! You may still be able to take the deduction on your 2009 returns even if you haven’t signed a contract yet (April 30 is the deadline), giving you until June 30 to close. Yes, you’ll have to file an extension or an amended return to benefit now, but it could save you a bundle of money later on. (see Kiplinger: FAQs on the New Home Buyer Tax Credits)

Home Energy Improvements – Making home improvements has never been so profitable! Well, at least deductible. Under the federal stimulus plan, various incentives were put in place to help homeowners update their abodes. We covered this information in detail last month so check out the link which follows for details. (see SayEducate.com: Enjoy Tax Credits For Energy Conservation)

Your New Car – Eager to stimulate the auto industry—after all the federal government now owns significant chunks of General Motors and Chrysler—you can deduct the state sales tax if your purchase took place on February 16 or later for a car costing as much as $49,500. That trade-in for last summer’s cash for clunkers program can also be deducted. (see Intuit.com: Deduct the Sales Tax Paid on a New Car)

These are only a sampling of what you should look out for when you prepare your 2009 taxes. Certain deductions such as those for investment losses, college tuition, moving, and disaster recovery may also apply. Check the IRS site for more information to confirm what is available to you.


Tags: , , , , , , , , ,

Will You Still Be Able To Retire On Schedule?

February 9th, 2010 by Matthew C. Keegan | 1 Comment | Filed in Retirement

Over the past few years, millions of Americans have come to the realization that their retirement plans may have to change. With pensions and retirement accounts decimated, housing values falling, and job loss on the increase, a long planned retirement date may have to be pushed back.

Retirement Delayed

Will you be relaxing or working during your retirement?

In the September 22, 2008 issue of “The Wall Street Journal,” Helga Cuthbert, a certified financial planner noted, “We’ll see more and more people postpone their retirement dates. Their expectations about the future and the kinds of returns they would get were simply unrealistic.” With nest eggs reduced and an economic recovery slowly taking place, Cuthbert’s assessment appears to be holding true nearly one and half years later.

But not every agrees with that point of view. Bridget Burgess, CFP, president of Symetra Investment Services and board chair of the Puget Sound Financial Planning Association in the state of Washington said, “While there are signs of economic recovery in the region, sticking to a plan, managing personal expenses and saving for retirement should be an ongoing priority, as market conditions can change quickly.”

Five Steps

Burgess added that there five steps every investor can take to ensure that their retirement plans stay on track, even when faced with financial challenges:

1. Create a plan. Begin by calculating what income you will need in retirement. Experts say that many retirees require at least 80 percent of their pre-retirement income to live comfortably. Estimate basic living costs and other expenses that may come into play, such as traveling, a new hobby, increased medical bills and, of course, inflation. Also estimate potential income from rental properties, other investments, inheritances, pensions, etc., and incorporate these estimates into your financial plan.

2. Manage and reduce your expenses now, before retirement. To help offset future costs, manage expenses before retiring. One of the best ways is to cut down credit-card debt. The average household’s outstanding credit-card debt was $10,679 at the end of 2008.2 When regular paychecks come to an end, large credit card bills can be a real burden.

3. Diversify your investment portfolio. After you decide how much you need in retirement and you’ve reduced expenses, develop a financial goal and begin investing now. As we’ve seen in the recent economic downturn, investing in securities incurs market risk. The best way to help cushion a portfolio against market volatility is to diversify – to divide your money among different types of investments, also known as asset allocation. Allocating assets among various investments and across investment styles is important because each investment responds differently to economic events and other market conditions. Diversification does not, however, assure a profit or prevent a loss.

4. Continually evaluate your investments. Changes in family, health and job benefits can affect how much income you will need for retirement. Make the most of the financial plan by reviewing investments regularly. Ensure they are still appropriate for your goals, timeline and risk tolerance. These life events also trigger the need for an insurance review to make sure your life insurance coverage is in line with changing needs.

5. Consider creating a guaranteed income stream during retirement. Creating a stream of guaranteed income, such as an income annuity, can fulfill income needs during retirement, especially if you don’t have a pension. People are living longer, and the prospect of outliving your lifetime supply of money is very real. Using a portion of your retirement portfolio for guaranteed income will help ensure that your money lasts as long as you do. This guaranteed income is based on the claims-paying ability of the underlying insurance company sponsoring the annuity.

Working Retirement

But even as people plan their retirement date, many are redefining what retirement means. In an October 6, 2009 article published to “Bankrate.com,” 75 percent of Americans surveyed said that they expect to work past their retirement date. 39 percent said that they plan to work because they enjoy work while almost one-third plan to work because they expect that they will need the money.

Photo Credit: Walter Groesel


Tags: , , , , , , ,

The New York Times Confirms Pay Per View Scheme

January 27th, 2010 by Matthew C. Keegan | 4 Comments | Filed in Consumer Tips

The New York Times, recognized as one of the top daily newspapers in the world, has decided to pursue a two-tiered approach regarding the online reading of its news. The Times announced recently that it will use a metered model plan allowing readers access to its web pages by offering a certain number of pages free per month before charging fees once viewers have exhausted that limit.

Monetizing The Web

The New York TimesThe proposed change for the Times comes as the newspaper evaluates how best to harness all of its web traffic—it is the top newspaper owned website—while monetizing it better. The Times briefly tried to charge for online viewing of its newspaper a few years back but discontinued that plan when its traffic dropped.

Right now the Times makes tens of millions off of online advertising, but it loses much more money with its shrinking print business. The newspaper believes that there is more money for it to gain by coming up with a pricing model.

Arthur Sulzberger, Jr., chairman of The New York Times Company and publisher of The New York Times thinks that the new model will work saying, “Our audiences are very loyal and we believe that our readers will pay for our award-winning digital content and services.” He also remarked that the new business model will allow the Times to continue down its path of offering “extraordinary, professional journalism.”

A Big Mistake?

Some have criticized the Times for considering such a plan, believing online access to news should remain free. However, many of these same people felt the same about Napster which transformed itself from a free music downloading site to one where they began to charge subscriptions. Napster is a success story with more than 9 million songs available for download.

For The New York Times their situation is a bit different, which means that finding the right balance between free and paid will be important. And, coming up with a pricing plan that won’t turn off readers will be essential if its newest plan has any chance of succeeding.

The Times won’t be implementing its metered model until sometime in 2011, giving the newspaper plenty of time to upgrade its website and prepare for the transition. Expect the newspaper to work diligently at preserving its current advertising revenue while developing a second stream of income.

More information about the metered model is expected over the coming months.

The Journal Charges

A number of bloggers have criticized the Times for its strategy claiming that it will not work, with some believing that they are entitled to free news and that they will find it elsewhere. But if the success of The Wall Street Journal is any indication—they have their own hybrid pricing strategy—then the Times just may find their own sweet spot and thrive online.


Tags: , , , , , ,

« Older Entries