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Study: Six to Eight Hours of Sleep Best for Heart

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Research shows sleep deprivation or excessive hours in bed increase risk of coronary artery disease or stroke. From a report:

Six to eight hours of sleep a night is most beneficial for the heart, while more or less than that could increase the risk of coronary artery disease or a stroke, researchers have suggested. The study, presented at the European Society of Cardiology Congress in Munich, indicates sleep deprivation and excessive hours in bed should be avoided for optimum heart health. The study’s author, Dr Epameinondas Fountas of the Onassis cardiac surgery centre in Athens, said: “Our findings suggest that too much or too little sleep may be bad for the heart. More research is needed to clarify exactly why, but we do know that sleep influences biological processes like glucose metabolism, blood pressure, and inflammations — all of which have an impact on cardiovascular disease.” Data from more than a million adults from 11 studies was analysed as part of the research. Compared with adults who got six to eight hours of sleep a night, “short sleepers” had an 11% greater risk, while “long sleepers” had 33% increased risk over the next nine years.

Money Really Does Lead to a More Satisfying Life

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New research suggests that more money really does lead to a more satisfying life. Justin Wolfers writes on New York Times:

Surveys of thousands of Swedish lottery winners have provided persuasive evidence of this truth. Lottery winners said they were substantially more satisfied with their lives than lottery losers. And those who won prizes worth hundreds of thousands of dollars reported being more satisfied than winners of mere tens of thousands. These effects are remarkably durable. They were still evident up to two decades after a big win. The findings appear in a research report, “Long-Run Effects of Lottery Wealth on Psychological Well-Being,” that has generated a lot of buzz among economists over the summer. The working paper is by Erik Lindqvist from the Stockholm School of Economics, Robert Ostling from Stockholm University and David Cesarini from New York University.

Facebook Stock Suffers Largest One-Day Drop In History, Shedding $119 Billion

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Facebook is experiencing one its worst days as a publicly traded company. According to CNBC, Facebook lost about $119 billion of its value on Thursday, marking the biggest one-day loss in U.S. market history. CBS MoneyWatch reported:

The company’s shares plunged $41.24, or almost 19 percent, to $176.26 a day after the social media giant reported disappointing results. The slide is the largest decline in market capitalization in history, exceeding Intel’s $91 billion single-day loss in September 2000, according to Bloomberg data.

Founder and CEO Mark Zuckerberg saw his fortune drop by $15.9 billion to roughly $71 billion. His personal loss alone, if only on paper, exceeds the value of companies such as Molson Coors and Macy’s, which have market values of $14 billion and $12 billion, respectively.

Investors were spooked by Facebook’s forecast showing that its number of active users is growing less quickly than expected, while the company also took a hit from Europe’s new privacy laws.

Your Guide to Renters Insurance

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Renting has recently become extremely popular, yet renters insurance is still widely misunderstood; many renters don’t even know how to get it. In fact, renters insurance is extremely cheap, at an average of under $150 per year.

Policies also provide important benefits to both tenants and landlords. Many renters expect their landlord’s insurance to cover much more than it actually does. Renters insurance fills in these gaps, which is why many landlords are now making it mandatory.

In most cases, your landlord will only be responsible for damages that result from their own negligence. If they provide faulty locks, for example, they’ll be liable if someone breaks in. In the majority of cases, such as natural events, burglaries, and other damages, you’ll be responsible for the costs. A low cost renters insurance plan will pay for many of these events and provide peace of mind for both parties.

Coverage Under Renters Insurance

Renters insurance covers a wide range of situations, and it’s important to understand when it’s appropriate to file a claim. One of the key aspects of renters insurance is its coverage of personal property. If you need to replace items that were lost or damaged in a burglary, fire, or similar incident, simply file a claim through your renter’s insurance to be reimbursed.

Property coverage is an important aspect of renters insurance, as the average renter owns between $20,000 and $30,000 worth of personal property. Without insurance, any unexpected incident can be a major problem for both tenant and landlord.

Renters insurance ensures that both sides are covered in case of an emergency for a small monthly fee. Most policies will cover a wide range of situations in addition to personal property claims, so read your plan closely and discuss it with your agent to get a full understanding of your coverage.

Getting Renters Insurance

Since there’s so little awareness of renters insurance, many people don’t even know where to get coverage. There are many providers available when you’re searching for renters insurance. Some may give users the option of registering through an app, while other companies may need customers to meet an agent in person to set up a plan.

You may even be able to bundle your renters insurance policy together with your car or home plan with your existing provider.

If you’re a tenant, there’s simply no good reason to not have renters insurance. For a relatively low cost, it can save you significant amounts of money in the long-run. Furthermore, if you’re a landlord, you probably sleep better knowing that your tenants will have the money to pay for any incidents. It makes renting easier for both parties, which is why you should consider making it mandatory for all your tenants.

Mark Zuckerberg Becomes World’s Third-Richest Person

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Facebook co-founder Mark Zuckerberg has overtaken Warren Buffett as the world’s third-richest person, reports Bloomberg. Zuckerberg only trails Amazon founder Jeff Bezos and Microsoft co-founder Bill Gates. From the report:

“It’s the first time that the three wealthiest people on the ranking made their fortunes from technology. Zuckerberg, 34, is now worth $81.6 billion, about $373 million more than Buffett, the 87-year-old chairman and chief executive officer of Berkshire Hathaway. Zuckerberg’s ascent has been driven by investors’ continued embrace of Facebook, the social-network giant that shook off the fallout from a data-privacy crisis that hammered its shares, sending them to an eight-month low of $152.22 on March 27. The stock closed Friday at a record $203.23.”

Americans Spend 7% Of Income On Gasoline

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Americans are spending $69 more each month to fill up their tank, according to a Triple A report. CBS Chicago reports: “On Wednesday, the Chicago average is $3.26 per gallon of regular gasoline. The average price is $2.999 for the rest of Illinois, compared to the national average of $2.91.”

“Analysts say Americans are now spending 7% of their income on gas, a statistic that is up 1.5% from last year. If you make $45,000 per year, you’re shelling out over $3,000 just to put gas in your vehicle.”

The World Isn’t Prepared for Retirement

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It’s not just America. New data show people all over the globe don’t understand basic concepts of investment and inflation. Suzanne Woolley writes on Bloomberg:

Most online quizzes are relatively mindless, promising to reveal which vegetable, sandwich or rock band best represents your personality. That was not the case for a short online test given to 16,000 people in 15 countries this year. It revealed just how unprepared a good chunk of the world is for retirement. The three-question test, given as part of the Aegon Retirement Readiness Survey 2018, measured how well people understand basic financial concepts. Many of the participants failed the quiz, with big potential consequences for their future security.

Beyond the sobering lack of financial literacy, there were some rather curious data in Aegon’s annual survey, published on Tuesday. For example, some 20 percent of workers surveyed in China envisioned spending retirement with a robot companion. But before we get to that, take a look at this question — which only 45 percent of people around the world got right: The possible answers? True, false, do not know and refuse to answer. Sixteen percent of people got it wrong. “Do not know” was chosen by 38 percent. In the U.S., 46 percent of workers got it right. Good for you, America — though Germany beat you handily. (The answer, in case you were wondering, is false.) It was an inflation question that had the highest percentage of wrong answers, however. More than 20 percent of workers didn’t grasp how higher inflation hurts their buying power. Given that declining health was the most-cited retirement worry, at 49 percent, and health care is an area (in the U.S., especially) with high cost inflation, well, that makes the subject something older folks should have down cold.

How the Quakers Invented the Price Tag

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Belying its simplicity and ubiquity, the price tag is a surprisingly recent economic development, Aeon magazine writes. For centuries, haggling was the norm, ultimately developing into a system that required clerks and shopkeepers to train as negotiators. In the mid-19th century, however, Quakers in the US began to believe that charging people different amounts for the same item was immoral, so they started using price tags at their stores to counter the ills of haggling. And, as this short video from NPR’s Planet Money explains, by taking a moral stand, the Quakers inadvertently revealed an inefficiency in the old economic system and became improbable pricing pioneers, changing commerce and history with one simple innovation.

 

Most of us are used to prices that don’t change. You go into a store to buy some Quaker Oats, and they’re going to cost the same for you as they will for whoever tries to buy them next.

For most of human history, you had to haggle over prices before you could buy something.

The Quakers were among the first people to commit to fixed prices — and they did it because they thought it was more fair. Turned out, it was also good business. This is the strange story of the long journey of that little piece of paper.

Safeguard Your Finances By Opting For Second-Hand Cars

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You probably have heard that a car loses up to approximately 20% of its initial value within the first year. Yes, a car worth $30,000 will depreciate by $6,000 the minute you drive it off according to Trusted Choice. At the end of the year, wear and tear plus mileage covered could bring this figure up to 30% translating to a $9,000 depreciation. As per a statement by the National Automobile Dealers Association, an average person owns about 13 cars in a lifespan. Each of these cars on average costs $30,000. If those cars happened to be second-hand instead of new, you would save up to $130,000. Second-hand cars not only help you in saving money for the future but also help you get your dream car within your budget. Their lower asking prices aside, second-hand cars help you cut on registration, insurance, and customization fees.

Saving Money In A Second-hand Car

An analysis by Consumer Reports shows that a four-year-old car costs between $5000-$9,000 less than a new one. Well, the biggest advantage of buying an old car is that you let another person take the depreciation hit on the car. Interesting enough you can sell the same car at the same amount you initially bought it at, reason been depreciation had already occurred. If you want to save even more, research on second-hand car rebates in your locality. These rebates are basically second-hand car sell-downs from dealers or manufacturers trying to clear their inventory, sell older car models or boost sales. Buying second-hand cars from rebate programs can help you cut 50% of the initial car price.

The benefits of buying a second-hand vehicle are endless. For starters, these cars don’t have exaggerated fees. Secondly, customizing second-hand cars is cheaper compared to brand new cars. In addition, insurance premiums and annual registration fees are often lower especially for cars older than 3 years. Another perk of buying a second-hand car is the fact that you can be assured of quality as an old car already has been inspected and certified by relevant authorities.

Settling On The Ideal Car

Finding a second-hand car can be at times frustrating since there is so much to put into consideration. Taking time in the buying process of a car ensures you get a great deal. Knowing what you can afford and what car meets your needs are key. Make a list of say 3 or 4 cars from different brands that are within your budget and meet your needs. This will help you pick the most convenient option. Before settling on a particular car, use Carfax or Autocheck to check the vehicle’s history.

The Purchasing Process

The next step is getting a good dealer which is easy to do with the help of the internet. You can then research on similar models and see how much each dealer has to offer. Some dealers often post current rebates on each car model making it easier for you to decide. Mentioning rebates from other dealers also helps you get rebates and incentives that were previously not advertised. Even after getting the best rebates you need to negotiate the best price for your car.

Trying to sweet talk the salesperson on lowering the initial price should be your first approch. You can then mention the rebate. Always keep in mind you are trying to save as much money as possible. Offering money up front guarantees you the best incentives and rebates. In case you decide on buying an automobile that is less than 5 years old, it is advisable to buy one which is certified pre-owned as they have long-term warranties. Flexibility and trying to be reasonable on your part is important when seeking a good deal.

A car is probably the next most expensive thing after your house that you will probably own in your lifetime. You should, therefore, take your time before buying one. The fact that you can acquire your desired model, in good condition, but at a much cheaper price makes a strong argument on why you should opt for a second-hand car. Wouldn’t you agree? And just so you know, buying second-hand cars shouldn’t dent your ego as according to Edmunds, there are 40 million second-hand car purchases annually.

The Long, Slow Demise of Credit Card Signatures Starts Today

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Beginning last year, all four major US payment providers — Mastercard, Visa, American Express and Discover — announced plans to remove the requirement that merchants collect signatures for card transactions. Mastercard, American Express and Discover kicked off that new policy Friday, while Visa will do the same Saturday. CNET reports:

Don’t despair if you actually like writing your signature at retail stores, because their ultimate demise will likely take a while. The change is only optional, with merchants, not customers, given the new power to decide whether to get rid of signatures. So, if asked to sign, please don’t insist to your next cashier that you no longer need to — it won’t work. Also, plenty of retailers will likely want to keep signatures, particularly if their workers are paid based on a lot of tips, or they sell pricey items. Still, the change marks a clear awareness from payment providers that the signature doesn’t really work as a strong protector against fraud.

The change is being handled a little differently by each payment provider. For instance, Mastercard, Discover and American Express said they’ll let retailers make every kind of card payment optional for a signature, regardless of whether you’ve got a new chip card or you still swipe. Visa, meanwhile, isn’t changing its requirements for payments using a swipe card, but it did relax its policy for chip card and contactless payments like Apple Pay. Visa noted that over 75 percent of face-to-face transactions using its cards in North America already don’t require a signature, thanks to lower-value transactions.

Big Financial Loss May Shorten Your Life, Study Suggests

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According to a study released on Tuesday, April 3, 2018, middle-aged Americans who experienced a sudden, large economic blow were more likely to die during the following years than those who didn’t. The heightened danger of death after a devastating loss, which researchers called a “wealth shock,” crossed socio-economic lines, affecting people no matter how much money they had to start. Dayton Daily News reported:

Middle-aged Americans who experienced a sudden, large economic blow were more likely to die during the following years than those who didn’t. The heightened danger of death after a devastating loss, which researchers called a “wealth shock,” crossed socio-economic lines, affecting people no matter how much money they had to start.

The analysis of nearly 9,000 people’s experiences underscores well-known connections between money and well-being, with prior studies linking lower incomes and rising income inequality with more chronic disease and shorter life expectancy.

“This is really a story about everybody,” said lead researcher Lindsay Pool of Northwestern University’s medical school. Stress, delays in health care, substance abuse and suicides may contribute, she said. “Policymakers should pay attention.”

Overall, wealth shock was tied with a 50 percent greater risk of dying, although the study couldn’t prove a cause-and-effect connection. The study was published Tuesday in the Journal of the American Medical Association.

John Bogle Net Worth

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Net Worth: $80 Million
Age: 89
Born: May 8, 1929
Source of Wealth: Investor, Business Magnate
Known For: Founding the Vanguard Group
Last Updated: 2018

Introduction

John C. (Jack) Bogle is the founder and retired chief executive of the Vanguard Group. He created the world’s first retail index mutual fund. Bogle also wrote several classic finance books including The Little Book of Common Sense Investing and Enough: True Measures of Money, Business, and Life.

John Bogle has many followers and admires at personal finance and investing website Bogleheads.org. Followers of John Bogle’s investment philosophy admire him not just for his eloquence in tirelessly speaking and writing about the importance of fees and advantages of indexing, but in his conscious decision in the creation of The Vanguard Group not to enrich himself at the expense of consumers.

Early Life

John (Jack) Bogle was born on May 8, 1929 in Verona, New Jersey. During the Great Depression, his family had to sell their home when they lost the inheritance. Bogle attended Manasquan high school on the New Jersey shore and transferred to the prestigious Blair Academy on work scholarships.

In 1947, Bogle graduated from Blair Academy cum laude and got accepted to Princeton University where he decided to study economics and investment. During his university years, Bogle was determined to examine the subject of mutual fund industry that had not been analyzed before. Bogle spent his junior and senior year working on his thesis “The Economic Role of the Investment Company”. Bogle graduated from Princeton University magna cum laude in Economics in 1951. [Read more…]

Over 90% of Active Stock Pickers Can’t Beat Index Funds

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More evidence that it’s very hard to beat the market over time, 95% of finance professionals can’t do it. Mark J. Perry writes on American Enterprise Institute: “The percentage of active managers who do beat the market is usually pretty small – fewer than 8% in most of the cases above over the last 15 years; and they may not sustain that performance in the future. For many investors, the ability to invest in low-cost, passive, unmanaged index funds and outperform 92% of high-fee, highly paid, professional active fund managers seems like a no-brainer, especially considering it requires no research or time trying to find the active managers who beat the market in the past and might do so in the future.”

S&P Dow Jones Indices, the ‘de facto scorekeeper of the active versus passive investing debate,’ recently released its SPIVA U.S. Year-End 2017 report. Here’s an overview of the SPIVA Scorecard:

There is nothing novel about the index versus active debate. It has been a contentious subject for decades, and there are few strong believers on both sides, with the vast majority of market participants falling somewhere in between. Since its first publication 16 years ago, the SPIVA Scorecard has served as the de facto scorekeeper of the active versus passive debate. For more than a decade, we have heard passionate arguments from believers in both camps when headline numbers have deviated from their beliefs.

During the one-year period, the percentage of managers outperforming their respective benchmarks noticeably increased in categories like Mid-Cap Growth and Small-Cap Growth Funds, compared to results from six months prior. Over the one-year period, 63.08% of large-cap managers, 44.41% of mid-cap managers, and 47.70% of small-cap managers underperformed the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600, respectively.

While results over the short term were favorable, the majority of active equity funds underperformed over the longer-term investment horizons. Over the five-year period, 84.23% of large-cap managers, 85.06% of mid-cap managers, and 91.17% of small-cap managers lagged their respective benchmarks.

Similarly, over the 15-year investment horizon, 92.33% of large-cap managers, 94.81% of mid-cap managers, and 95.73% of small-cap managers failed to outperform on a relative basis.

20% of Americans Save Nothing for Retirement

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Despite a low unemployment rate and stronger economy, 20 percent of Americans don’t save any of their income at all and even those who do save aren’t putting away enough for retirement. According to a new survey from Bankrate.com, one-fifth of Americans are adding nothing to their savings. Among respondents, 2 in 5 cite life’s high expenses, while another 1 in 6 blame their crummy job.

“With a steady, significant share of the working population saving nothing or relatively little, it’s virtually guaranteed that they’ll be unable to afford a modest emergency expense or finance retirement,” says Bankrate senior economic analyst Mark Hamrick. “That amounts to a financial fail.”

Bankrate also reports that the average American has less than $5,000 in a financial account, a quarter to a fifth of what you should have, and those aged 55 to 64 who have retirement savings only carry $120,000 – which won’t last long in the absence of paychecks.

Free Credit Freezes Coming for All U.S. Consumers

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Consumers are on track to get one thing from Congress in response to last year’s massive Equifax Inc. hack: free freezes of their data held by the credit-reporting companies. The Wall Street Journal reported:

“The bipartisan agreement, set to be approved in the Senate by next week as part of a broader banking bill, would require credit-reporting companies to let consumers block access to their credit reports to potential lenders without paying a fee. Freezing access to credit data is a crucial measure consumers can take if they want to protect themselves.”