Make your vacation pals cough up their fair share

(CNNMoney)

"Resentment over money is one of the biggest issues that ruin vacations," says Nadine Davidson, author of Travel With Others Without Wishing They'd Stayed Home.

So before you book this summer's big trip, air your expectations about who will pay for what and how luxuriously (or not) you'll travel. That way, your time together can be all about having fun.

The Ground Rules

Keep it light. Work the topic into a larger discussion about the good times you're going to have, says Patricia Rossi, author of Everyday Etiquette.

Put it in writing. Outline the costs in black and white after your discussion, or have the whole conversation via e-mail if that feels easier.

Prepay separately when you can. Can you each send in half the condo deposit? Buy your own plane tickets? Doing so will prevent headaches later. Or opt for an all-inclusive resort -- you'll have fewer bills to square up.

When You're Face to Face...

1. Opening gambit: "We're so excited to be going to Disney with you. We love the Mickey Mouse theme restaurant. Are there any places you want to try?"

Why it works: Talking about specific activities -- and even eateries -- offers insight into how your pal or relative intends to divvy up his vacation dollars. "Even if someone's in your tax bracket, it doesn't mean they like to spend their travel money the same way," says Davidson.

2. Suggest a split. "Unless you hit the lottery next month, I assume we'll be dividing everything fifty-fifty."

Why it works: Stating upfront how you expect to share costs sets the tone for the whole trip. Be sure to discuss when the money is needed, the deadline for refunds, and what happens if one party has to cancel. Infuse this with humor to make people feel at ease, says Rossi.

3. Take on the burden. "I know the hotel prices in Chicago are outrageous. Why don't I research some cost-effective options?"

Related: How to ask a pal or relative to pay you back

Why it works: Taking the reins can help you avoid the awkwardness that might ensue when, say, your spendy pals suggest the Ritz or your cheap friends pick the Fleabag Inn. Your travel mates are likely to be more receptive to different options if they know it won't create a hassle for them, says Marblehead, Mass., etiquette consultant Jodi R.R. Smith.

4. Propose a practical plan. "Since we're eating lunches at the condo, how about each family sets aside $100 for grocery store runs?"

Why it works: Putting a system in place ensures that no one winds up footing the whole bill, says Lynn O'Rourke Hayes, editor of FamilyTravel.com. Create a communal account or put receipts in a specific place to be tallied up later. Also address how you'll pay for booze, since differences in consumption can cause tension.

5. Ask for alone time. "Seafood isn't really our thing. When you guys go to the surf-and-turf place, we'll head to our favorite taco stand."

Why it works: Making some separate plans allows each party to look forward to things that cater to its budget and tastes. After all, says Smith, "part of the fun of a vacation is the anticipation."

First Published: May 8, 2013: 6:51 PM ET

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Homebuyers clueless about mortgages

One-third of respondents believe lenders are required by law to charge the same fees to all clients. That's wrong. Fees vary and can often be negotiated.

NEW YORK (CNNMoney)

When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.

Among the survey's findings, 31% of buyers don't think it's possible to get a mortgage for less than 5% down; 34% don't know what the term "annual percentage rate" (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.

Related: Tips for buying a home

"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan," said Erin Lantz, director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."

One example: 34% of respondents believe lenders are required by law to charge the same fees to all clients for credit reports, appraisals and the like. That's wrong. Fees vary from bank to bank and can often be negotiated.

Related: 5 best markets to buy a home

But it's hard to compare those deals if you don't understand what mortgage terms, like "annual percentage rate," mean. The APR factors into fees, upfront points, origination and underwriting fees and other costs that borrowers use to compare the actual cost of loans.

Such knowledge gaps can have long-term consequences. About 34% of first-time homebuyers think they need a down payment of at least 5% to make a home purchase, but loans insured by the Federal Housing Administration can require as little as 3.5% down.

Related: How much house can you afford?

And 24% of buyers believe the best mortgage deals are available through the banks where they currently have their savings and checking accounts, but often competing lenders can undercut those banks by large margins.

"If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Lantz.

For every $100,000 borrowed, a half percentage point lower rate would reduce payments by $28 a month on a 30-year, fixed rate loan. That adds up to more than $10,000 over 30 years. Or borrowers could choose to add that $28 savings to each monthly payment. That would shorten the term of the mortgage from 30 years to just over 27 and save $6,500 in interest paid.

Related: Was my home a good investment?

Another costly mistake: Many house hunters go shopping with financing in place because it enables them to act more quickly if they see a home they want. But 26% of buyers believe that once they're pre-approved, they're obligated to close the deal with those loans, according to the survey. In reality, there's no obligation. If buyers see better terms available they should take them.

Existing homeowners can also be guilty of ignorance. Some 20% of homeowners surveyed didn't know that underwater mortgages -- those in which borrowers owe more than their homes are worth -- can be refinanced into lower rate loans.

Related: Boomerang buyers return to market after foreclosure

Finally, the survey found that nearly a third of homeowners are unaware that if they go through a foreclosure or short sale, they may not have to wait the full seven years it takes for their credit score to recover and they can buy a home again.

In reality, some homeowners who do short sales can obtain financing to buy another home in as little as two years.

The Consumer Financial Protection Bureau is hoping to make it easier for homebuyers with simplified mortgage forms that help them compare terms and costs and by creating new rules that will protect homeowners from getting into loans they can't afford.

First Published: May 9, 2013: 12:24 AM ET

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Current deficit plunges 32%

NEW YORK (CNNMoney)

A major reason: A big jump in tax revenue.

Tax collections rose by $220 billion -- or 16% -- between the start of the fiscal year on Oct. 1 through April 30. Individual and payroll taxes accounted for $184 billion of that increase.

The tax haul rose sharply primarily because wages and salaries were higher, the payroll tax cut of the past two years expired on Jan. 1 and the fiscal cliff deal brokered over New Year's raised tax rates on high earners.

Spending, meanwhile, fell 1.9% year over year, the CBO estimated.

The biggest percentage drop occurred in the payment of unemployment benefits, which were down nearly 25%, or $15 billion. Defense spending fell 5.3%, or $20 billion, and "other activities" -- primarily spending on nondefense programs -- fell 8.6%, or $58 billion.

Related: Deficits are falling. For now.

Less was spent, for instance, on housing assistance, energy programs and international assistance, along with the TARP bank bailout and on mortgage giants Fannie Mae and Freddie Mac.

Spending in some categories, however, was higher. Medicare, Medicaid and Social Security outlays combined rose by $50 billion, or between 6% and 7%.

While the country has still racked up an estimated $489 billion deficit in the first seven months of this year, that's about a third less than the $720 billion recorded for the same period last year.

Higher than expected revenue and lower spending has pushed back the real deadline for when Congress must raise the debt ceiling until as late as October.

And it's easing pressure on Congress to cut a big debt deal anytime soon.

Later this month, the CBO is expected to publish its revised estimates for spending, taxes and deficits over the next 10 years. Earlier this year, it estimated an annual deficit for 2013 of $845 billion, but some budget observers have said they expect the deficit for this year will come in lower than that.

First Published: May 7, 2013: 5:55 PM ET

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Whole Foods shares surge as growth continues

NEW YORK (CNNMoney)

Shares of the grocery chain surged 8% in after-hours trading Tuesday after the firm posted quarterly earnings that beat expectations and increased its earnings guidance.

Revenue this past quarter increased 13% versus a year prior, while same-store sales increased 6.6%. The company also announced a two-for-one stock split that will increase the total shares of common stock outstanding from roughly 185 million to 370 million.

Whole Foods (WFM, Fortune 500) focuses on healthy and upscale products, competing with chains like Trader Joe's and Fairway.

The company has booked sales growth of better than 10% in the past few years, and expects sales to increase 13.6% in the 2013 fiscal year. It currently has 349 locations and is in the process of expanding, with plans to open three more stores this quarter and 12 in the upcoming quarter.

Whole Foods co-founder and co-CEO John Mackey said in a statement that the company believes it will "continue to gain market share as we accelerate our new store openings."

Whole Foods says that over the long term, it sees the possibility of 1,000 stores in the United States, as "consumer demand for natural and organic products continues to increase." The chain said it also sees "great promise" in Canada and the U.K.

First Published: May 7, 2013: 6:24 PM ET

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Oil companies target America for investment

The domestic oil boom is prompting U.S. oil firms to sell assets overseas and invest the money in American projects.

NEW YORK (CNNMoney)

Last year ConocoPhillips (COP, Fortune 500) announced plans to sell its stake in Kazakhstan's Kashagan oil field -- the largest energy project in the world -- for $5 billion. It was just one of at least six major foreign sales last year for Conoco, which totaled nearly $11 billion, according to industry data provider PLS.

Much of that money is being redirected to investments Conoco has in Texas' Eagle Ford Shale and North Dakota's Bakken Shale, according to PLS Managing Director Brian Lidsky. Conoco did not return a call seeking comment.

American oil firm Hess (HES, Fortune 500) did something similar, selling over $4 billion of assets in the U.K., Azerbaijan and Russia. A company spokesman said that money went to a number of different initiatives, including paying down debt and building up the company's balance sheet. The spokesman said Hess invested $3.1 billion in North Dakota in 2012, where the company boosted its oil production by 55%.

U.S. oil companies Devon (DVN, Fortune 500), Marathon (MARA), Anadarko (APC, Fortune 500), Murphy (MUR, Fortune 500) and Noble Energy (NBL) have all sold overseas assets in the last couple of years. In addition to Texas and North Dakota, PLS said the money has gone, at least in part, to Colorado's Niobrara and Pennsylvania's Marcellus Shale.

"Everyone is looking to increase their presence in the United States," said Joe Stanislaw, an independent senior energy adviser at the consulting firm Deloitte.

Related story: America has an energy boom. Now what?

The reason is pretty straightforward: It's generally easier to do business in the United States than in many other places.

Unlike Libya, Iraq and other places that take 90% or more of a company's profits, taxes and royalties in the United States seldom exceed 50%. The geology is better known. The rule of law is strong. Workers are skilled and infrastructure is available. There's little risk of violence.

"The political risk in the United States is they may try to shut you down," Stanislaw said. "They're not going to blow up your camp."

The energy boom in the United States -- made possible by new drilling technology and techniques -- has been well-documented. The country is on track to surpass Saudi Arabia as the world's leading oil producer by 2020.

The expansion certainly comes with environmental risks. The widespread use of hydraulic fracturing, or fracking, to crack the shale rock and allow oil and gas to flow has raised concerns over water contamination and earth quakes. Air pollution, congestion, and other problems plague energy boom towns.

But the boom has brought jobs -- a trend that's likely to accelerate.

More than $5 trillion is expected to be invested in U.S. shale and other "unconventional" energy developments by 2035, according to the consultancy IHS. The money is coming from both U.S. companies and foreign firms eager to get in on the boom.

Some 1.7 million people currently work in or around these new energy plays. By 2035, IHS expects the energy boom to directly or indirectly support 3.5 million American jobs. Around 700,000 of those jobs are expected to materialize within the next two years.

"That's a sizable number of jobs in an economy with a fairly slack labor market," said IHS economist John Larson.

The benefits will ripple beyond states sitting on top of the shale formations, Larson said.

One out of every four jobs already created has taken place in a state that's not seeing any new drilling, by IHS's estimate. The tally includes ancillary hiring such as real estate professionals in New York, insurance agents in Boston or heavy equipment makers in Illinois that are all benefiting, one way or another, from the country's energy boom.

First Published: May 8, 2013: 12:35 AM ET

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Term life insurance prices rising amid low interest rates

Premiums for term life insurance can vary widely. Search online for comparison pricing.

(Money Magazine)

Following a decade in which prices fell to all-time lows, premiums for new term policies last year rose an average of 3%, says online agency IntelliQuote, which forecasts more increases this year.

The culprit? Sickly yields on bonds, in which insurers invest most of customers' premiums.

Hit hardest are policies longer than the standard 20-year term; top firms Genworth and ING have stopped selling 30-year term, and rates are up about 5% among remaining carriers, says Byron Udell of term life agency AccuQuote.

Related: Strategies for buying life insurance

Despite the general increase, premiums can vary widely. To nab a low-priced policy, start your search online with either IntelliQuote or AccuQuote.

Stick with insurers rated A or better for financial strength by A.M. Best. And should you want coverage beyond your guaranteed term, screen for policies giving you until age 60 to convert to permanent insurance without a physical -- a big plus if health changes make you uninsurable.

Highs and lows

Prices for term insurance range widely.

Annual premium for a $500,000 policy for 40-year-old healthy male
Low	$355
Median	415
High	565

Note: Based on March 2013 quotes for a 20-year level term policy from 11 insurers with an A.M. Best rating of A or better. Source: AccuQuote

First Published: May 6, 2013: 4:45 PM ET

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Senate approves Internet sales tax proposal

NEW YORK (CNNMoney)

The so-called Marketplace Fairness Act would allow the 45 states (and the District of Columbia) that currently charge sales taxes to require large online retailers to collect tax on purchases made by their residents. The law would only apply to online sellers that have sales of at least $1 million in states where they don't have physical operations, like a store or a warehouse.

The Senate voted 69 to 27 to approve the bill, which enjoyed bipartisan support. But before it can become law, it must be approved by the House, where Republicans are split on the issue.

Some House Republicans have already expressed support for the bill, arguing that it would level the playing field for small brick-and-mortar retailers. They say it would not create a new tax, but rather enforce the collection of taxes already charged at traditional retailers. But other House Republicans still view that as a tax increase on consumers or say it would overburden Internet businesses in their states.

The Obama administration has endorsed the bill, so if it can gain approval in the House, it is likely to become law.

Related: What an Internet sales tax would cost you

If the bill is enacted, academic studies estimate more than $12 billion in additional sales taxes will be collected from online purchases each year.

Big brick-and-mortar retailers with an online presence, such as Wal-Mart (WMT, Fortune 500), already charge sales tax for web purchases. But in many states, you can still shop tax-free at Internet-only retailers like Amazon or Overstock (OSTK).

That's because under current law, online sellers are only required to collect tax in states where they have a physical presence. And while most states require shoppers to pay a so-called "use tax" when a sales tax wasn't collected at online checkout, few people actually follow through.

CNN Radio: Is it fair to tax Internet purchases?

"This collection disparity has tilted the competitive landscape against local stores, creating a crisis for brick-and-mortar retailers around the country and in your state," David French, senior vice president of the National Retail Federation, one of the bill's loudest supporters, said in a letter to Senate members.

Close to 30% of online shoppers surveyed by advisory firm AlixPartners recently said they would shop more at brick-and-mortar retailers if the tax became reality. Nearly half, though, said that an Internet sales tax would have no effect on their online shopping habits, according to the survey of about 2,500 consumers.

Related: Internet Sales Tax: What you need to know

After years of battling individual state efforts, Internet giant Amazon (AMZN, Fortune 500) is supporting the bill, in part because the company is already collecting sales tax in nine states where it has warehouses.

Many other online retailers remain opposed to the legislation, saying that the sales tax would hurt business and create an administrative nightmare because they would have to determine tax rates for different states and localities at checkout.

Anti-tax group Americans for Tax Reform has also come out strongly against the legislation, which it says "can only be viewed as a tax increase." It did not respond to a request for comment.

Meanwhile, eBay (EBAY, Fortune 500) is lobbying for a $10 million exemption for small businesses.

First Published: May 6, 2013: 7:06 PM ET

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Nintendo's big problem

NEW YORK (CNNMoney)

The company sold only 3.45 million of the Wii U video game consoles during the first quarter, badly missing its own target of 4 million. The hand-held 3DS gaming device has also been a disappointment outside of Japan.

Making matters worse, Nintendo's solution to the problem is a head-scratcher: CEO Satoru Iwata last week announced his support for in-game transactions and subscription-based payment models.

As secondary concepts these are fine, but if Nintendo thinks this is what gamers really want from a modern console, it has lost touch with reality.

For decades now, it has been this type of thinking that has plagued Nintendo: The company is cognizant of the latest trends and shifts in gaming, but it chooses to disregard them in the name of simplicity, or family-friendly gaming. Instead, Nintendo frequently opts to develop its own warped, counterintuitive take on the latest trends.

Since the launch of the Gamecube in 2001, Nintendo has shied away from online gaming and entertainment-based features that were popular on rival consoles, such as the Microsoft (MSFT, Fortune 500) Xbox or Sony (SNE) PlayStation. When it did finally offer some of these features, they were often half-baked (see: Nintendo's "Wi-Fi Connection" online gaming service). Others were largely unavailable to the masses (see the Panasonic Q, the Gamecube with the DVD player that only came out in Japan).

Sometimes Nintendo's push to be different has paid off, most notably when it released the paradigm-shifting Wii console. But the negative effects of that tendency have never been so evident as now, with the sluggish sales of its latest console, the Wii U.

With Microsoft and Sony turning the gaming console into full-blown living room computers, Nintendo is being dragged along, kicking and screaming, refusing to fully acknowledge times have changed.

The Wii U was Nintendo's attempt to expand on its innovative gameplay ideas. But the impact hasn't been nearly the same as the Wii. Some new Wii U features, like the touchscreen-equipped controller feel convoluted, and less innovative compared to technologies like Microsoft's Kinect camera. Nintendo games that actually take proper advantage of the motion gaming tech aren't coming from third-party developers, and Nintendo's own titles -- which are excellent more often than not -- aren't coming anytime soon.

Nintendo figurehead Shigeru Miyamoto has told the world to be patient for more games to come out, but this time around, simply pumping out its usual top notch games won't be enough.

Yes, the Wii U has improved upon its online gaming service, and given its console more content and features which integrate with your TV. The company said last week it will focus more on what it can do with digital distribution of Wii U games. That's a good thing -- even if Nintendo is five years behind. But the company still is treating that as an added bonus, and not a pillar of its business strategy.

And considering that Nintendo has long said that it cares more about game play than graphics, it seems strange that it hasn't put more time and effort into building out its WiiWare platform for indie developers looking to put out original titles. WiiWare started out promisingly enough in 2008, as the initial home to titles such as World of Goo and Mega Man 9, but since then it has mostly devolved into a den of cheap and generic mini-games. Since 2012, less than 25 titles have seen release through the platform.

Then there's the elephant in the room that nobody wants to acknowledge: smartphone gaming. Nintendo is adamant that it won't release its games for smartphones, despite the fact that they'd likely be instant top sellers.

It's understandable that Nintendo wouldn't want to release some of its newer games on a competing mobile platform, for fear of cannibalization, but looking at the success that companies like Square Enix have had reissuing its Final Fantasy titles on the iPhone, what real harm is there in offering games like Super Mario Brothers? Nobody is going to buy a Nintendo 3DS just to download that from the eStore.

Since the days of the Nintendo 64, it's always been pretty easy to see when, where and why Nintendo was going to stumble as a company. And more often than not, it was because of their own stubborn thinking. The buildup of their past oversights has added up and left them lagging far behind their peers in present times.

You have to wonder how many free-thinking aces Nintendo has left up its sleeve in order to save itself once again.

First Published: May 7, 2013: 12:20 AM ET

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Stock market momentum continues

Click the chart for more stock market data.

NEW YORK (CNNMoney)

Small investors, who missed the stock market rally of the past few years, are being drawn in by the record highs and returning in droves. The new money could stoke more stock buying and send indexes higher again.

This week, investors will have to digest economic reports on the U.S. consumer and manufacturing.

The consumer credit report due out on Tuesday will give investors a sense of how keen Americans are to reach into their pocket books.

Last week's jobs report gave an indication that consumers are feeling fine. Retail and food services experienced some of the strongest job growth in April's jobs report, adding 29,000 and 38,000 positions respectively.

Experts say this shows that households are more willing and able to go out and spend, which drives job growth.

Related: CNNMoney's Fear & Greed Index

The manufacturing sector will also be in play, with a report on wholesale inventories on tap for Thursday.

On the corporate front, several companies will report financial results this week, including Toyota (TM), News Corp. (NWS), Macy's (M, Fortune 500), Nissan (NSANF) and BAE Systems.

Stocks rallied last week, sending the Dow Jones Industrial Average briefly above 15,000 for the first time on Friday. For the week, the Dow rose 1.8%; the S&P 500 gained 2% and the Nasdaq added 3%.

April was a strong month, with the S&P 500 advancing for the sixth consecutive month.

First Published: May 5, 2013: 12:24 PM ET

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Senate to vote on proposed Internet sales tax law

NEW YORK (CNNMoney)

The legislation would allow the 45 states (and the District of Columbia) that currently charge sales taxes to require large online retailers to collect tax on purchases made by their residents. The law would only apply to online sellers that have sales of at least $1 million in states where they don't have physical operations, like a store or a warehouse.

The bill has a good chance of becoming law. It already received broad support in the Senate during earlier procedural votes, and now must pass Senate muster a final time. After that, however, it will need to be approved by the Republican-controlled House. Proponents argue that the proposal would not create a new tax, but rather enforce the collection of taxes already charged at brick-and-mortar retailers. Some House Republicans may view that as a tax increase.

If the bill is enacted, academic studies estimate that more than $12 billion in additional sales taxes will be collected from online purchases each year.

Related: What an Internet sales tax would cost you

Under current law, online sellers are only required to collect tax in states where they have a physical presence. Otherwise, consumers who shop online and don't pay a sales tax at the time of purchase are supposed to pay the tax to their home state. But estimates are that only about 1% of buyers comply with those widely unenforced laws.

"We think this will help level the playing field," said Stephen Schatz, a spokesman for the National Retail Federation, one of the bill's largest supporters.

Close to 30% of online shoppers surveyed by advisory firm AlixPartners recently said they would shop more at brick-and-mortar retailers if the tax became reality. Nearly half, though, said that an Internet sales tax would have no effect on their online shopping habits, according to the survey of about 2,500 consumers.

Related: Internet Sales Tax: What you need to know

After years of opposition, Internet giant Amazon.com (AMZN, Fortune 500) is also supporting the bill, in part because the company is already collecting sales tax in nine of the states where it has warehouses.

Many other online retailers remain opposed to the legislation, saying that the sales tax would hurt business and create an administrative nightmare because they would have to determine tax rates for different states and localities at checkout. Anti-tax group, Americans for Tax Reform, has also come out strongly against the legislation, which it says "can only be viewed as a tax increase."

Meanwhile, eBay (EBAY, Fortune 500), which has loudly opposed the tax, is lobbying for a broader exemption for small businesses.

"The solution is simple," CEO John Donahoe said in a letter to eBay users. "If Congress passes online sales tax legislation, we believe small businesses with less than 50 employees or less than $10 million in annual out-of-state sales should be exempt from the burden of collecting sales taxes nationwide."

First Published: May 5, 2013: 3:55 PM ET

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