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Not as bad as we thought: Obamacare Premiums in California Lower than Expected

Not as bad as we thought: Obamacare Premiums in California Lower than Expected

 

 
 Health insurance providers in the state of California will charge an average of $304 a month for the silver-level coverage (the least expensive plan) in state-based exchanges starting next year. That said, many residents will pay far less than this figure for coverage. 
 
Rates for Obamacare plans will vary by region, level of coverage, and age; the majority of low-income California residents will qualify for federal subsidies that will further lower premiums. The plans will be provided in four tiers, ranging from bronze to platinum. The bronze plan will charge lower premiums, but will carry increased out-of-pocket benefits, and the platinum plan will have the highest premiums but the cheapest out-of-pocket costs. 
 
Federal subsidies will be based on the cost of silver plans and will be provided to those earning up to 400 percent of the poverty line, which comes out to approximately $45,000 for an individual and $92,000 for a family of four. 
 
State-based exchanges will open for enrollment in October of this year, while coverage under Obamacare will start in January. 
 
Multiple plans from insurance providers including Blue Cross Blue Shield will be available based on region. However, other large providers, including UnitedHealth declined to participate in the program. 
 
The least costly silver plan for a young person will cost around $215 a month, but those regarded as low income (earning 150 percent of the poverty line) may only be required to pay $44 after procuring federal subsidies. The same plan for middle-aged individuals will cost roughly $275 a month and approximately $40 after the subsidies kick in. 
 
States are beginning to unveil details of their plans; however, California has provided the most detail in describing its plans. 
 
“Several Americans will see rates similar to what they are paying now, and in many cases, far lower and with better benefits,” said the Washington Insurance Department in a blog posting. “We are definitely not seeing the significant rate increases that some insurance providers had predicted.”
 
 
Source: whitehouse.gov

SEC Charges Dallas-Based Trader with Front Running

Loan Calculator

Loan Calculator

 
 
Using the loan calculator is a very simple process that allows you to estimate what your loan amounts will be without contacting a lender or viewing various loan websites.  Loan calculators have helped many people seeking loans to narrow down their search and determine what loans will be best for them.  Many different types of loan calculators are available, however many times people need only a basic loan calculator in order to see what estimated payments will be for a certain type of loan or how long the loan will take to be paid.   
 
 
A loan can be any type of debt which needs to be paid off.  Informal loans, from family and friends, occur all the time.  However, many banks and lenders are in the business of providing loans to customers who cannot afford things right away, but can instead spread the payments out over a period of time.  These banks and lenders make money from charging interest from the loans, which is calculated as a percentage of the total amount.  
 
 
Some loans have compounding interest, which means the interest will be calculated every year and interest on unpaid interest will be charged.  Other loans do not have compounding interest, which means they only charge interest from the principal, which is the original amount taken in the loan. 
 
 
Most loans require a security which the lender will hold in case the loan goes unpaid and is in default.  Most lenders, for items such as cars and homes, retain a legal right to repossess the property should the loan go into default.  These secured loans often have much lower interest rates, as the lender can always just take back the item in order to fulfill the loan amounts.
 
 
Some loans are unsecured, which means the lender retains no right to repossess property should the loan go into default.  These types of loans are typically used in student loans or personal loans.  The interest rates on these loans will typically be significantly higher.  
 
 
Loan calculators can be used for determining numerous types of loans.  Use a loan calculator for the following:
 
 
– Auto, boat, and motorcycle loans.
 
– Lease payments on a vehicle.
 
– Home mortgage loans.
 
– Student loans and financial aid for college and universities. 
 
– Business loans.
 
– Personal loans. 
 
 
Enter the data as it is asked for on the loan calculator screen.  You will need to include the following:
 
 
– Principal Amount
 
– Interest Rate
 
– Payment Period
 
– Term/Length of Loan
 
– Payment Amount
 
– First Payment Date
 
 
Once you have entered each value, select the calculate button.  You can reset your entered information at any time by pressing the reset button, or you can change each individual box at any point during the process. Once you finalize all of the numbers and press the calculate button, all available loan information will become available to you.  You may print this information, save it to your computer, or go back and change the values in order to see the effects they have on your loan information.  
 
 
Below are the definitions of each area of data which needs to be put in the loan calculator.  Better understanding each term can help you modify your loan information to get you the best loan that fits your needs. 
 
 
1. Purchase Price – The purchase price is the total sale amount of the item you are financing.  If you are unsure of the actual final purchase price, enter your best estimate into the loan calculator. 
 
 
2. Down Payment – The down payment is the upfront payment on the item you are purchasing.  Not all loans require a down payment, however many lenders will only give a loan if a certain percentage of the total purchase price is paid upfront (for example, for a home loan, this is generally 20% of the purchase price)
 
 
3. Sales Tax – If the item purchased is subject to sales tax in your state, you should enter the sales tax that will be added to your final purchase price.  If you are unsure, check online to determine if your item is subject to the sales tax and the rate in which the sales tax will be calculated.  Most states will require a sales tax on items such as cars, boats, personal items, and other similar items, and the rate usually ranges between 5% and 8%.
 
 
4. Yearly Interest Rate – The yearly interest rate is the percentage of the total loan that will be turned into interest that must be paid to the lender.  The yearly interest rate can also be referred to as the APR (Annual Percent Rate), APY (Annual Percent Yield), or just as the interest rate.  If you are using loan calculators to determine the yearly interest rate, leave this field blank and the calculator will tell you what the rate will be considering the other amounts entered in the other boxes.  
 
 
5. Payment Period 
 
 
– This will determine how often you will make repayments on your item.  You can choose between paying monthly (30 day payments), annually (one payment every year), quarterly (payment every 3 months), semi-monthly (payment every 15 days), bi-weekly (payment every 14 days), and weekly (one payment per week).  You may also select a custom payment period on the loan calculator.  
 
 
– Typically, most lenders require a monthly payment on their loan.  However, you may occasionally find bi-monthly payment plans or quarterly payment plans, depending on the type of loan and your credit history. 
 
 
– The payment period must be used along with the proper length of loan.  Typically, the length of loan will highly depend on the type of loan taken.  Car loans are typically between 4 and 6 years in length.  Home loans are typically much longer, with the standard repayment 15 or 30 years.  
 
 
6. Length of Loan (Term) – The length of the loan is the overall length of time it will take to pay off your loan.  You can enter any amount of time in which to pay your loan.  If you are using the loan calculator to determine you length of loan, leave this field blank and the loan calculator will tell you how long it will take to pay your loan considering the loan amount, interest rate, and payment terms.   
 
 
7. Payment Amount – The payment amount is how much each payment will be on your loan.  Typically, this is what most people want to find out when using loan calculators, as this is the payment you will be responsible every payment period.  Leave this area blank in order for the loan calculator to tell you what your payment amounts will be. Note that you must enter a length of loan, interest rate, and loan amount in order to get your payment amount.  
 
 
8.  First Payment Date – The first payment date is when you will first start making payments.  The loan calculator does not require this information in order to perform its basic functions, however entering a first payment date will provide you with a more accurate description of when your overall payments will end and the loan will be fully paid off. 
 
 
Note:
 
 
– Loan calculators for mortgage loans may provide slightly different information than a standard loan calculator.  This is because taxes, insurance, and PMI must all be calculated into the total price of purchasing a home, which are often much more significant amounts than for smaller personal and business loans. Indicate on the loan calculator if you are attempting to figure out mortgage loan information or you can use one of our other loan calculators geared towards home mortgage payments.  
 
 
– Payment Amortization – Amortization is a map that details every payment that will be made during the life of a loan and exactly when those payments will be due.  They spread the payments out according to the length of the loan and detail each payment according to the payment period.  This can be a valuable tool in showing exactly how your loan will be paid off and how often you will need to make your payments.  It provides a good visual for those who have trouble envisioning exactly what their loan payments will look like over an extended period of time.    
 
 
– While the loan calculator can usually provide accurate numbers to determine your loan obligations, you should always consult with the lender about the terms of your repayment.  The online loan calculators should only be used to provide you with a general framework of how your loan will look and your estimated monthly or quarterly payments.  
 
 
– Many lenders also require additional fees and expenses, which cannot be put into the loan calculator.  Therefore, you should always expect a slightly higher loan amount than the purchase price. Contact your lender or lenders you are considering to determine what their fees and expenses may be.  Do not agree to any loan in which fees and expenses are brought to your attention right before signing, as you should be given these amounts well in advance to consider whether you can pay this loan within your budget.  
 
 
Tax Issues
 
 
The following are the generally accepted guidelines concerning loans and income tax in the United States.  If you have concerns about the tax implications on your loans, consult with a tax professional or further explore the tax laws using legal resources available online. 
 
 
1. A loan is not gross income for the borrower.  Because the borrower is under obligation to repay the loan, it is not considered taxable income despite the transfer of funds. 
 
 
2. A lender may not deduct the loan amount from their gross income.  Just as a loan is not considered income, it also cannot be used as a deduction when it is given. 
 
 
3. Any amounts paid to satisfy the loan are not deductible by the borrower and is not considered income to the lender.
 
 
4. The interest paid on a loan is considered income for the lender.  This is money made off the loaning the money, so it is therefore listed as gross income.
 
 
5. Likewise, a borrower can deduct the expenses of interest payments, however this generally only applies to loans taken for business purposes.  Personal loans generally are not deductible, unless special rules apply. (Student loans and home mortgages are examples of loans that are given special tax treatment).  
 
 

Large Financial Institutions Must Annually Conduct Stress Test

Large Financial Institutions Must Annually Conduct Stress Test


On October 9, 2012, the Federal Deposit Insurance Corporation (FDIC) announced the final rules for stress testing by large financial companies required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  The final rules apply to federally insured financial institutions with consolidated assets equaling $10 billion or more.  


The final rule has added section 165(i)(2)(A) to the Dodd-Frank Act.  The section requires the large financial institutions that are insured by the FDIC to conduct and submit a “company-run stress test.”  Additionally, the final rule requires financial institutions with total consolidated assets over $50 billion to start the stress tests this very year.  


The FDIC has authoritative power to grant a delay for the covered financial institutions with more than $50 billion in consolidated assets, but the delays are only allowed after an evaluation of the financial institution.  The final rule allows financial institutions with consolidated assets between $10 billion and $50 million to delay stress tests until October of 2013.  


The FDIC will release scenarios for stress-testing for the institutions with assets over $50 billion in November.  The large financial institutions are required to use data up to September 30, 2012 and submit their results by January of 2013.  


The final rule updates the deposit insurance assessment system for institutions with over $10 billion in assets as well.  The rule changed the definitions that were used to target and define groups of high-risk assets in order to help the FDIC determine the degree of risk.  


The FDIC reports that there were 108 institutions as of June 30, 2012 with over $10 billion in assets.  


Lastly the FDIC updated loss, income, and reserve ratio projections that are used for the Deposit Insurance Fund (DIF).  Acting Chairman Martin J. Gruenberg stated, “We are continuing on a path to gradually rebuild the fund in a manner that should not unduly burden bank while the economy continues to recover.”


Source: Federal Deposit Insurance Corporation
 

American and US Airways Announce $11 Billion Merger

American and US Airways Announce $11 Billion Merger

 

Ending a courtship that lasted over a year on the part of US Airways, American Airlines agreed to merge with the smaller US Aiway’s to pave the way for the creation of the country’s largest airline. 
 
The boards of both companies unanimously approved the deal, which is to be valued at roughly $11 billion, according to press releases on Thursday morning. The prospective merger would bolster American’s national footprint, strengthen its presence in the congested Northeast and provide a larger network to attract corporate accounts and business travelers.
 
Under the terms of the agreement, US Airways shareholders would control 28% of the newly-formed airline while American Airlines shareholders, labor unions, employees and creditors would own the remaining 72 percent. 
 
The merger creates a company with the size to compete against Delta and United airlines, the nation’s largest carriers, which have also grown through mergers in recent years. Following the closure of the deal, the combined airline will have in excess of 100 million frequent fliers. 
 
That said, while Delta and United went through mergers and bankruptcies in the last decade, American was losing ground while racking up losses of $12 billion since 2001—American was the last major airline to pursue court protection through reorganization when it filed for bankruptcy in November of 2011.
 
The stream of large mergers in the industry has created more profitable airlines that are now able to provide new planes and products, including individual entertainment screens, Wi-Fi and more comfortable seats for business travelers. These amenities; however, come with a cost as many consumer advocates are worried that the reduction in the number of airlines will lead to increased fares over the long run. 
 
The deal, which was finalized in recent days, should be formalized as American exits bankruptcy. The deal calls for Thomas Horton, chief executive of the AMR corporation and parent company to American, to act as chairman of the combined company, with W. Douglas Parker, the chairmen and CEO of US Airways, to assume the CEO position of American. 
 
Mr. Parker is a long proponent of consolidation in the airline industry and claims that the deal is the last piece to rationalize the business. The CEO went onto say that the two airlines have few overlapping routes (12 out of 900 total routes), which would ultimately increase service: US Airways flies to 62 American cities that are not served by American while American flies to 130 U.S. cities that US Airways does not reach. 
 
The combined airline will offer roughly 6,700 daily flights to 336 locations in 56 countries. Before these offerings; however, the merger must be approved by America’s bankruptcy judge in New York City and US Airways shareholders. 
 

Office Depot Announces Merger with Rival OfficeMax

Office Depot Announces Merger with Rival OfficeMax

 

Office Depot just announced a deal to merge with smaller rival OfficeMax in an all-stock transaction worth approximately $1.2 billion. Details on the prospective deal; however remain limited. 
 
The companies claim they expect to save approximately $400 to $600 million annually from the merger, but there were no estimates provided regarding store closings or staffing cuts. 
 
The decision concerning what to name the combined company will be determined once a CEO is selected by the company’s respective boards. The new company will first look at both current CEOs along with outside candidates before deciding who will run the newly-formed company.
 
The announcement of the merger was a bit of an embarrassment and cast a widespread negative light on Office Depot’s operational abilities.
 
First news of the prospective deal came when Office Depot posted, seemingly by mistake, a fourth quarter earnings report which mentioned the forthcoming deal on page 4 under “other matters.” This statement was then removed from the corporation’s investors relations Web Page later in the morning. That said, once the earnings statement was removed from the site, the New York Times reported that talks on the deal were still ongoing. Then immediately following the market opening came the official joint announcement of the merger, which the company described as a “deal of equals.” News of mergers are typically announced prior to or following market trading hours, not immediately prior to the start of trading. 
 
Neil Austrian, CEO of Office Depot, blamed the premature announcement on the company’s Webcast provider and deeply apologized to analysts during a conference call Wednesday. 
 
The prospective deal is clearly an attempt for the two office supplies companies to compete with larger rival Staples. 
Office Depot currently has 1,629 stores and 38,000 employees throughout the world, while OfficeMax had 940 stores at the end of 2012 and roughly 29,000 employees in 2011. These figures are meager compared to Staples, which has over 2,250 stores worldwide and over 90,000 employees. In addition to Staples, all companies in the retail sector are facing stiff competition from online players, such as Amazon. 
 
Executives from OfficeMax and Office Depot believe they can provide estimates as to how many stores would be closing, claiming that they had not been able to speak on such matters during the initial merger talks. 
 
According to the prospective deal, OfficeMax shareholders will receive 2.69 shares of Office Depot Stock for each of their individual shares. This figure is roughly a 4% premium, based on Tuesday’s closing prices. However, OfficeMax shareholders had already profited on reports of the deal, which drove up share prices 21% on Tuesday alone. While., Office Depot shares closed roughly up 10% on Tuesday. 
 

Henry Barbour: ‘Two Sides to Every Issue

Henry Barbour: ‘Two Sides to Every Issue

Henry Barbour, a member of the Republican National Committee and one of five GOP members tasked with developing a new GOP strategy following the failed 2012 elections, refused to say if climate change is one of the focal points his party should address, stating “there are two sides to every issue.”

During a Thursday appearance on NPR to discuss the Republican Party’s post-election revamping, Barbour fielded a question from a caller who lambasted the Republicans for ignoring climate change as a and refusing to accept its standing as a legitimate concern.

“The Republican Party has to be concerned with fixings its own problems,” said Barbour, a Mississippi Republican. “Whether it’s looking at the environment or whether it’s dealing with education, security or spending, or whatever it is.”

The program’s host then pressed Barbour on the caller’s question by saying, “you can’t fix these issues unless you acknowledge them first.”

“There are certainly two sides to every issue and I’m not going to site her and give you a position on climate change,” Barbour replied. “As a party, we must focus on the ideas that help improve the country, whatever those might be, we need to focus on the ideas that unite us and not divide us.”

Barbour, the nephew of former Mississippi Governor Haley Barbour, was elected to the Republican National Committee in 2005 and has held crucial roles in several GOP campaigns. Last month, Barbour was appointed to the Growth and Opportunity Project, an initiative aimed at broadening the party’s appeal and responsible for examining where candidates failed during the 2012 election cycle.

“We must articulate our policies in a manner in which people can tell the benefit of what we’re trying to do,” Barbour told Bloomberg news. “Democrats were better at connecting with people in this regard and I think we came across as the old accountant too many times.”

Recent data suggests that climate change is an area where voters from both sides show great concern. Various polls released last month show that 83 percent of Democrats and over 70% of Republicans acknowledged rising temperatures, and 80 percent of total respondents stated that global warming is a serious problem.

These comments echo the GOP’s political tip-toeing when it comes to climate change. The bulk of GOP members feel that climate change is a non-issue. 

Yahoo Defending No-Work-At-Home Polic

Yahoo Defending No-Work-At-Home Polic

 

Internet giant Yahoo is responding to backlash of a decision to prohibit employees from working at home, claiming it is the right move for the company. 
 
“This is not a broad industry view on working from your home, this is about what is right for Yahoo at this time and going forward,” said a company spokesman in a statement issued to the media on Wednesday morning. 
 
The no-work-at-home policy prompted widespread criticism since it was announced in an e-mail to all employees earlier this week from Jackie Reses, the head of human resources who was hired by CEO Marissa Mayer.
 
“To become the best place to work, collaboration and communication will be principal, so we will need to be working as a team, side-by-side,” said the e-mail. “It is critical that we are all present in the office each and every working day.”
 
Yahoo did not reveal how many of its 11,500 employees currently work from home, claiming it does not comment on internal matters. 
 
Many have criticized the policy as impacting morale, claiming it could even turn-off or chase away talent. 
 
“We wish to give our employees the freedom to work where they choose, safe in the knowledge that they have the talent and drive to perform exceptionally, whether they are in the office or in their kitchen. I have never worked at a traditional office, and I never will” said Virgin CEO Richard Branson on his blog.” 
 
Others claim that the policy itself isn’t the issue, but how it was presented—via e-mail without comment from Yahoo’s Chief Executive Officer– to the company. “The new Human Resources policy is shocking in its measure, and harsh delivery,” opined Fortune’s Patricia Sellers. “The chief issue is how the new policy got communicated to the employee base.”
 
A study by Telework Research Network found that working from home or remotely increased nearly 75% from 2005 to 2011 in the United States. 
 
 
Source: Associated Press
 

The Rich get Richer: Forbes’ Rankings finds 210 New Billionaires

The Rich get Richer: Forbes' Rankings finds 210 New Billionaires

 

The Forbes Rankings, which lists the wealthiest men and women in the world, was released today and revealed a record 1,426 billionaires spread throughout the world. According to the latest tally from Forbes, rising stock prices and a shift to normalcy in the markets added 210 new members to the exclusive 10-figure club. 
 
The rankings also revealed Mexican telecom giant Carlos Slim to be the richest person in the world; this is Silm’s fourth year on top of the prestigious list with an estimated $73 billion, up from $69 billion last year. Slim edged out Microsoft founder Bill Gates, who was once again ranked as the second richest person in the world with his $67 billion fortune. 
 
Gates’ good friend Warren Buffet dropped out of the top three for the rights since 200, as head of Spanish retailer Zara, Armancio Ortega, took third place. Ortega’s wealth of $57 billion is a massive gain of $19.5 billion from 2012, the largest gain of any person on the list. Ironically, Buffet’s fortune posted the second largest increase on the list; Buffet’s estate increased $9.5 billion to 53.5 billion as shares Berkshire Hathaway, Buffet’s investment firm, increased a dramatic 17% in 2012. 
 
The United States is home to the most billionaires with 442, a net gain of 17 from 2012. 386 billionaires call the Asia-Pacific region home and 366 of the world’s wealthiest reside in Europe. 
 
Excluding those who passed away or split their wealth with family members, 60 people who were represented on the 2012 Billionaire’s list feel out of the prestigious club this year. Notable dropouts include Mark Pincus, CEO of online gaming company Zynga, whose stock fell more than 75% last year and former Chesapeake Energy CEO Aubrey McClendon. 
 
Mark Zuckerberg, founder of Facebook wins the dubious award of suffering the biggest loss of wealth for any American billionaire, as his worth plunged $4.2 billion to $13.3 billion. 
 
That said, there were far more winners than losers on the 2013 list. In total, the 1,426 billionaires possess a combined net worth of $5.4 trillion, up from $4.6 trillion in 2012. The majority of the net gain is due to larger membership as the average net worth of each billionaire was $3.8 billion or an uptick of $100 million from 2012.  
 
 
Source: CNN

Hess to Quit Retail Gasoline Business

Hess to Quit Retail Gasoline Business

 

The Hess Corporation is set to discontinue its retail gasoline operations along with its marketing and energy trading businesses to focus on production and exploration, the company announced on Monday. 
 
Hess also announced it will boost its yearly dividend to $1 per share and buy back up to $4 billion in company stock. Upon release of this news, Hess stock increased $2.45 a share or $3.68 percent to $68.99 on Monday. 
 
Hess also said it will nominate five independent directors for election to its board at the annual shareholders meeting in May. Moreover, the company named a six director that will be up for election at the 2014 shareholder’s meeting. Six of the oil giant’s current directors will announce their retirement from the board in the upcoming months.
These announcements come just over a month after prominent Hess investor Elliot Management pushed for alterations at the company and began lobbying for new management. The plea from Elliot with regards to changing leadership was based on an accusation that the board partook in poor oversight and engaged in a “decade of failures.”
 
Hess has already issued plans to sell domestic oil storage facilities and close a New Jersey refinery as it leaves the volatile refining sector. ConocoPhillips, Murphy Oil and Marathon Oil have all syphoned and split their refining businesses in recent years to place a greater emphasis on production and exploration. 
 
 
Source: CNN
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