Friday, December 8, 2017

The Christmas Party Circuit

I feel like I have a Christmas party to attend every week this month. Oh wait. That's because I do. It's easy to suffer from fatigue and lack of enthusiasm around this time of year as you try to accomplish all of your shopping, go to work, have some me time, and on top of all that try to look good in social settings.

Holiday parties are the perfect way to get everyone together for some fun festivities. This year I am staying away from the Ugly Snowman and Secret Santa parties.

Here are some Christmas (excuse me, Holiday) theme parties I would like to attend:

The Worst Present Party – Instead of spending money to outdo your friends on the best present in a gift exchange, aim to have the worst. The problem, what to do with them after.

Scrooge Party – Sick of all the holiday music playing since October 1, 24/7? Take a break with a holiday party fit for a Scrooge with Chinese takeout, top forty songs, and no sparkling lights in sight.

Christmas in Vegas Party – Bring sin city to the holiday party with some poker and black jack games. And remember. What happens at a Vegas-themed party stays at a Vegas-themed party.

A Sexual Harassment Training Christmas Party – Perfect for this time of year, enough said.

COLLEGE CHRONICLES – The proposed Republican tax plan passed in both the Senate and the House of Representatives this past weekend. Analysis from the Joint Committee on Taxation found that the plan benefits the wealthy the most.

Ninety-one percent of households that make between $500,000 and $1 million a year would see a tax cut of at least $500 a year. In addition, households that make between $100,000 and $200,000 a year would see the largest decrease in taxes. The tax plan has all sorts of provisions that can and will negatively impact students and their families.

Families who work at colleges or universities are often able to send their children to those institutions for reduced fees, sometimes with no tuition charge at all. But under the new tax plan, that tuition waiver or reduction could be taxed as income. In addition, families that earn below a certain income level can claim a tax credit for their children who attend college, but the Republican tax plan would reduce the value of this tax credit.

There are also the changes that could affect graduate students. A Ph.D. candidate at Massachusetts Institute of Technology estimated that taxes on graduate students could increase by nearly 400 percent. Graduate students typically do research for faculty members or teach undergraduate students in exchange for free tuition and a living stipend. But the Republican tax plan proposes a tax on the tuition waiver and the stipend that graduate students receive.

The Republican tax plan is taxing people for money that they will never see. It is hard enough for low-income families to send their children to college, even with scholarships and stipends. Introducing these taxes basically erases any relief that these scholarships may provide and introduces additional financial burdens for students and their families to shoulder.

The tax plan perpetuates the notion that college is for rich people who can afford to go, instead of a place where people from all backgrounds can come together and learn from one another. By introducing these tax plans, Republicans will gravely harm the way that colleges foster an intellectual environment for people from all backgrounds.

New tax bill in a nutshell:
Jet owners can write off jets.
Teachers can’t write off school supplies.

INTERNATIONAL STUDENT ENROLLMENT DOUBLED SINCE 2008 RECESSION - A new report from the Pew Research Center finds that international student enrollment has skyrocketed since the 2008 economic downturn. Per the report, from 2008 to 2016, the number of new foreign students at U.S. colleges and universities increased 104 percent - "far outpacing overall college enrollment growth, which was 3.4 percent during the same period, according to U.S. Census Bureau.

FINANCE FACT - Number of people who go bankrupt every year because of medical bills:
Britain: 0
France: 0
Japan: 0
Germany: 0
Canada: 0
USA: 643,000

HOLIDAY SEASON BUCKET LIST - This holiday season, stuff your 401(k) as well as your turkey.

It’s a good idea to take a look at your retirement plan during the holidays. 2017 is drawing to a close and that means holidays, parties, turkey dinners, friends and family. It also means being busy making lists, juggling schedules and maybe even fitting in some holiday travel.

It may seem like we’re asking a lot to add thinking about your retirement to your year-end activities, but we believe there are some easy items to check off your 401(k) to-do list that will get you ready for the New Year.

1. Markets are up, check your risk levels
Stock markets have hit all-time highs this year. Good news, right? We agree, but make sure to review your holdings, especially if you’re invested in stand-alone stock funds. All-time highs may mean you may now be taking on more market risk than you’re comfortable with. If so, consider rebalancing your holdings by moving some of your money from stocks to bonds, or, to keep it even simpler, consider moving to a target date fund, which takes care of the rebalancing for you.

2. Look out for your loved ones
Holiday cheer is in the air, kids are home from school and the office is the last thing on your mind, for good reason. That said, year-end is a great time to review and update your account beneficiaries, especially if you’ve had a major life event like a marriage or a newborn child. It may also be an ideal time to check in with parents to make sure they’re on track with their retirement savings or spending.

3. Whip out the calculator
Not sure if you’re on track for retirement? Consider using an online calculator to give yourself a check-up. Retirement may seem far off, but it’s a good idea to make sure the road ahead is well-paved. Surprises are meant for gift boxes; we want to avoid them, when we can, in terms of retirement preparedness. And if you are close to retirement, you might want to do an extra check to see the potential income your savings could generate.

4. Take what you can get
Make sure to max out any 401(k) contribution that your employer offers to match. Taking advantage of this corporate perk is often a big part of your final retirement savings balance. What’s to lose when there is free money on the table? If you’re falling short, consider boosting your final retirement contributions of the year to meet the match level, if possible.

5. Add 1%, and pat yourself on the back
If you anticipate a salary bump next year, consider putting part of it aside by signing up for a future contribution increase. If you time it to coincide with a raise, you probably won’t even notice the difference in your take-home pay. And, when invested and compounded over time, those extra savings can get you to the finish line faster.

So this season, add yourself and your loved ones to your list and give your retirement a financial boost. Because who needs New Year’s resolutions when you’ve got a great retirement savings plan in place!

SHUTDOWN AVERTED ... FOR NOW - The House and Senate cleared a short-term spending bill that will keep the government funded through Dec. 22nd but a White House meeting between Trump and congressional leadership produced no break-through on a two-year deal, setting up a big fiscal cliff just before Christmas.

Democrats want a DACA extension, Republicans want wall funding. Democrats want domestic spending parity for any military spending increase. Republicans don't. The ingredients are there for a significant fight and potential Christmas season shutdown.

UP AND AWAY - The U.S. economy is headed into the final stretch of 2017 powered by one of the sturdiest periods of growth in its nine-year expansion, helping drive stock-market indexes to new highs. The Dow Jones Industrial Average crossed the 24000 threshold, just 30 trading days after passing 23000. Consumer spending, home sales and business investment are among several recent indicators exhibiting strength, and investors are also cheering the prospect of more economic fuel in the form of tax cuts. The last two economic expansions derailed when asset prices overheated—tech stocks in the late 1990s and real estate in the mid-2000s. But investors aren’t fretting about that at this point.

BIRTHDAYS THIS WEEK – Birthday wishes and thoughts this week to Sen. Susan Collins (R-Maine) St. Lawrence ’74 (65); N.Y. Gov. Andrew Cuomo (60); Rep. Grace Napolitano (D-Calif.) (81).

HOMELESS - Top homeless populations in US, source: U.S. Dept. of Housing and Urban Development.

1. New York: homeless population, 76,501; unsheltered homeless, 5.1 percent
2. Los Angeles: homeless population: 55,188, unsheltered homeless: 74.7 percent.
3. Seattle: homeless population, 11.643, unsheltered homeless, 47.1 percent.
4. San Jose/Santa Clara: homeless population: 7,394; unsheltered homeless 73.7 percent
5. San Diego: homeless population, 9,160: unsheltered homeless, 61.4 percent
6. District of Columbia: homeless population, 7,394: unsheltered homeless, 12 percent
7. San Francisco: homeless population: 6,858, unsheltered homeless, 63.5 percent

MARKET WEEK - The Dow industrials may have hit a new milestone but shares of U.S. industrial companies continue to lag behind in the stock market’s rally.

That may be poised to change. Analysts see a turnaround for industrials next year as a firming economy stokes activity on the factory floor and prompts businesses to ramp up investment spending.

S&P 500 industrial stocks are up 15% over the past 12 months, a robust advance but one that is six percentage points behind the benchmark.

Some weakness can be explained by a single stock, General Electric Co., which dropped 43% over the past year. The conglomerate will continue to grapple with its slowing turbine business and a broad restructuring effort. Throw out GE, however, and the group is still a full three percentage points behind, notes Thomas Lee, U.S. portfolio strategist at Fundstrat Global Advisors.

Mr. Lee endorsed industrial stocks Friday, citing among other things economic data that show corporate expenditures are poised to rise. Federal Reserve Banks in Philadelphia, New York and Dallas all show brightening forecasts for future business spending by manufacturers. A Friday reading on manufacturing activity remained sturdy in November.

The dollar is another big-picture reason to expect industrials to fare better. Industrial stocks tend to outpace the S&P 500 when the U.S. dollar is weak, since manufactured goods priced in dollars get cheaper for overseas buyers; this year the opposite has been true. For Mr. Lee, the discrepancy should revert, meaning industrial stocks could be overdue to bounce.

A wild card is the tax overhaul circulating in Congress. The Senate bill would lower the corporate tax rate starting in 2019. That time frame could prompt companies to boost investment next year, since such spending could be deducted against a higher marginal tax rate, according to economists at Barclays. The flip side is that capital expenditure implications might be less pronounced depending on the law’s final contours.

BUBBLE OR REAL? - The price of bitcoin reached new highs Thursday, jumping about 40% in around 40 hours and smashing through five separate $1,000-barriers to surge past the $16,000 mark. Even for the notoriously volatile virtual currency, the upward lurch was jarring, astounding outsiders and thrilling those who have piled in. The rally has been sparked by the collision of bitcoin’s sudden faddish reputation and the anticipation of institutional investors entering the market. That momentum persists in the face of ever-present hurdles. A hack that led to $70 million in stolen bitcoin raises security questions, while some big Wall Street banks are hitting the brakes ahead of the debut of the first bitcoin futures market on Sunday.

Bitcoin was the first cryptocoin currency ever invented. No one knows exactly who created it – cryptocurrencies are designed for maximum anonymity – but bitcoins first appeared in 2009 from a developer supposedly named Satoshi Nakamoto.

Because Bitcoin was the first cryptocurrency to exist, all digital currencies created since then are called Altcoins, or alternative coins. Litecoin, Peercoin, Feathercoin, Ethereum and hundreds of other coins are all Altcoins because they are not Bitcoin.

One of the advantages of Bitcoin is that it can be stored offline on a person's local hardware. That process is called cold storage and it protects the currency from being taken by others. When the currency is stored on the internet somewhere (hot storage), there is high risk of it being stolen.

On the flip side, if a person loses access to the hardware that contains the bitcoins, the currency is simply gone forever. It's estimated that as much as $30 billion in bitcoins have been lost or misplaced by miners and investors. Nonetheless, Bitcoins remain incredibly popular as the most famous cryptocurrency over time.

Cryptocurrencies are just lines of computer code that hold monetary value. Those lines of code are created by electricity and high-performance computers.

Cryptocurrency is also known as digital currency. Either way, it is a form of digital public money that is created by painstaking mathematical computations and policed by millions of computer users called 'miners'. Physically, there is nothing to hold.

'Crypto' comes from the word cryptography, the security process used to protect transactions that send the lines of code out for purchases. Cryptography also controls the creation of new 'coins', the term used to describe specific amounts of code.

Governments have no control over the creation of cryptocurrencies, which is what initially made them so popular. Most cryptocurrencies begin with a market cap in mind, which means that their production will decrease over time thus, ideally, making any particular coin more valuable in the future.

SIGN OF THE TIMES - I understand that in 39 states the highest paid public employee is either an NCAA college football or basketball coach. The only thing crazier, is how much they're paid when they get fired!

GREAT BARNS - Legendary Appleton Arena, 130 Miner Street at St. Lawrence University. Great place, great history, don’t change it!

SWAMI’S WEEK TOP PICKS

NFL Football Pick of the Week – Sunday 12/10, 1:25 PDT, Fox: Philadelphia Eagles (10-2) vs. Los Angeles Rams (9-3), perhaps a preview of the NFC title game. We like the upstart Rams to win 27 – 24.  (Season to date 7-6).

College Football Pick of the Week – Saturday 12/9, 9:00 AM PDT, CBS: Army (8-3) vs. Navy (6-5), loser of this one gets to go to North Korea first. Army wins in a wild one 40 – 38.   (Season to date 8-5)

D-III Football Pick of the Week – Saturday 12/9, 3:30 PM EDT: NCAA D-III National Semi-Final, #10 Brockport Golden Eagles (13-0) vs. #1 Mary Hardin-Baylor Crusaders (13-0). An upstate New York surprise in this years’ tournament, can they beat the powerful Crusaders. No, 45 – 30.  (Season to date 8-4)

College Hockey Pick of the Week – Saturday 12/9, 7:00 PM EDT: #3 Clarkson University Golden Knights (13-3-1) vs. St. Lawrence University Saints (1-12-1). All is not well in Larry Land, Coach Mark Morris is coming under attack from alumni and local fans, NCAA is investigating the hockey program, stay tuned. On the ice they battle hard but Clarkson prevails 4 – 3.   (Season to date 5-4)

NHL Pick of the Week – Saturday 12/9, 7:00 PM EDT (CBC): Toronto Maple Leafs (18-10-1) vs. Pittsburgh Penguins (16-11-3), Hockey Night in Canada is in Pittsburgh this week, Pens win 3 – 2.   (Season to date 5-2).

Season to Date (91 - 67)

ON THIS DAY - Former President George H.W. Bush is now the longest-living president in U.S. history at the age of 93 years and 166 days.

Bush on Saturday November 25 surpassed the previous record held by Gerald Ford, who lived to be 93 years and 165 days old before he died in December 2006.

Ronald Reagan, the third-oldest living president, lived to be 93 and 120 days, 46 days less than H.W. Bush.

Next Blog: Dear Rink Rats, Jack Ass of the Month and it is that time of year again, student recommendation letters.

Until next time, Adios

Claremont, California

December 8, 2017
#VIII-19-361


CARTOON OF THE WEEK – Peanuts, by Charles Shultz

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