Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

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Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

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Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: 7 who are losing benefits

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

14.44 | 0 komentar | Read More

Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

14.44 | 0 komentar | Read More

Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

14.44 | 0 komentar | Read More

Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: My jobless benefits will end

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

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Bling and baubles win out as holiday's hottest gifts

NEW YORK (CNNMoney)

Jewelry caught the eye of many gift givers this year and was one of the most popular gifts, according to MasterCard SpendingPulse, which draws from MasterCard's near-real-time purchase data.

The report showed that baubles and bling were by far the strongest growth category among shoppers who hit stores between Nov. 1 and Dec. 24. Shoppers spent more on jewelry this year than a year earlier.

A separate report by comScore, which measures online spending, also found that accessories were one of the top-gaining categories when compared with last year.

Related: Mobile shopping for bargains

What drove shoppers to jewelry this year was a stronger economy and more discretionary money in peoples' pockets, according to Sarah Quinlan, senior vice president of market insights for MasterCard Advisors.

"Jewelry is truly something that people spoil themselves with, and they also see it as an investment," Quinlan said. "This shows that people believe that we're in a grindingly slow but steady recovery.

Quinlan said the combination of lower gas prices, steady improvements to the job market and a sense of stability over the budget deal in Washington convinced shoppers to shell out an average of $500 to $1,200 on jewelry.

Overall, both SpendingPulse and comScore reported an uptick in holiday spending this year. But comScore noted that spending was held back by stores cutting prices dramatically in order to lure customers in.

First Published: December 26, 2013: 2:58 PM ET

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Airline exec goes all in with racehorse company

"This is a big improvement over going to an office," says Steve Zerda, 55, of Seattle.

(Money Magazine)

The horse's owners were selling stakes to investors -- while keeping a majority interest -- and the avid racing fan decided to buy in.

"What I saw was a unique business model, where the owner could spread the risk," says Zerda. "And I could participate, without spending a fortune."

A director overseeing aircraft-component maintenance at Alaska Airlines, Zerda had already decided to take early retirement later that year.

His investment in Turbulent Descent gave him an idea for a new career: Buy yearlings, train them to run, then sell partnerships. After consulting trainers -- and confirming there were few syndicates for small-scale investors in Seattle -- he wrote a business plan.

His first acquisition as Z Thoroughbred Racing was a colt called Harbor Wind for $10,000. (With purses at the nearby track capped at $100,000, he didn't want to be saddled with costly horses.) He then set to work revving up interest via word-of-mouth and a website, soliciting investors to buy stakes of at least 5%. The money he raises helps fund grooming, training, and care, which runs more than $25,000 a year per animal.

Related: The write stuff: Two friends open a stationery store

With such high overhead, showing a profit requires winning races and, in the process, making horses appealing to breeders.

The risk is great, of course -- "you can buy any dumpy horse and lose your shirt fast," Zerda says -- but so is the potential reward. Harbor Wind raced 18 times in three years, earning over $50,000. Turbulent Descent won $900,000 before being sold for 12 times his original price.

Today, Zerda owns six horses and has a 10% stake in another. Thanks to winning purses plus proceeds from three sales, Z Thoroughbred made a $45,000 profit last year. "I seem to be able to locate good value," says Zerda, who reinvested the earnings. "And I have a good time doing it."

BY THE NUMBERS

$50,000: Capital Zerda used to launch the business

He determined that this amount -- from a deferred bonus he got when leaving his job -- would allow him to buy a horse a year for the first few years before he could bring in investors. (He has since sold 19 partnerships, with stakes from 5% to 20%.)

5 years : Period before quitting that he power-saved

As a result, he and his wife, Lisa, a director for a health insurer, have nearly $750,000 for retirement. The couple, who have two kids attending state colleges and a 15-year-old at home, are able to live on Steve's pension and Lisa's salary.

100%: Earnings he'll reinvest for the next few years

Zerda plans to forgo a salary -- he used to make $120,000 -- to grow the business. He'll continue buying yearlings, with hopes of selling them when they are around age 5, for three to five times what he paid. "Horses tend to retire once they've made $1 million," he says. "I'd like to position myself to follow that example."

First Published: December 26, 2013: 5:10 PM ET

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Delta glitch causes ultra-low fares

Delta acknowledged a glitch caused steeply-discounted tickets to be offered online Thursday -- some for as low as $27, according to customers.

NEW YORK (CNNMoney)

Delta (DAL, Fortune 500) acknowledged that a glitch caused steeply-discounted tickets to be offered online Thursday -- some for as low as $12.83, according to customers. They celebrated their finds on social media, including cross-country flights for $40 and Boston to Honolulu lifts for $68.

Cory Watkins, a travel agent in Oklahoma, snagged some of the best bargains he's ever seen -- round-trip, first class from Oklahoma City to St. Louis for $12.83, fares to Anchorage for $87.53, and more. In just under an hour, Watkins spent $1,387.38 for twelve flights for himself and clients for first class trips all over the U.S.

Related: United and Delta raise bar on frequent flier miles

One customer said she bought tickets between Tallahassee and Los Angeles for $27 each way. Those routes normally cost between several hundred and several thousand dollars.

Delta spokesman Trebor Banstetter said the airline would honor the incorrectly priced fares, which were offered on the airline's website and other travel sites where it lists tickets.

"For a portion of the morning today, some prices on delta.com and other booking channels were incorrectly displayed, resulting in lower than usual fares for customers," Banstetter said in a statement.

Related: U.S. airlines want to remain cell phone-free

He said the "situation has been resolved and the correct prices are being displayed," but early Thursday afternoon, some ticket searches on Delta's site would not load and produced an error.

The airline did not have an estimate for how many tickets were sold at incorrect prices, Banstetter said.

--CNN's Chuck Johnston contributed reporting.

First Published: December 26, 2013: 3:16 PM ET

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Price of stamps to go up 3 cents

The price of a stamp will go up 3 cents in January.

NEW YORK (CNNMoney)

A panel overseeing the U.S. Postal Service approved a three-cent hike from the current price of 46 cents. It will take effect on January 26.

That includes a one-cent increase -- to keep pace with inflation -- approved by the Postal Regulatory Commission last month. At the time, the cash-strapped Postal Service had sought the three-cent bump.

Related: USPS to rent mail vans

The additional two cents are intended to be temporary and to recoup losses the Postal Service suffered during the recession, the commission said.

It said the Postal Service must regularly report how much money the increase brings in and "develop a plan to phase out the rates once they have produced the revenue justified by their request."

Related: Postal Service delivers Amazon packages on Sunday

But the agency is in deep trouble with the shift away from mail and to the Internet. It reported a $5 billion loss in the most recent fiscal year, and a $16 billion loss in 2012. Those losses include expensive contributions to retiree health care required by Congress.

The Postal Service has considered paring back mail delivery and expanding the more profitable package delivery to bring in more revenue.

Related: Postal Service would love to ship you beer

Customers who purchase forever stamps before the new price takes effect will continue to pay 46 cents.

--CNNMoney's Jen Liberto contributed to this report.

First Published: December 24, 2013: 5:49 PM ET

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