Baby Boomers are overexposed to stocks in this rocky market

NEW YORK (CNNMoney)

Among 60-to-65 year olds, 30% have invested almost all of their savings in stocks, while 52% have more than 70% of their nest egg in stocks, according to an analysis of 10,000 users (split among three different age groups) of FeeX, which helps users find lower investment fees.

That's a risky move.

For a well-balanced portfolio, financial planners say that savers in this age group should have no more than 60% of their assets in stocks. The rest should be split among more conservative assets like bonds and money market funds that can cushion the blow of sell-offs like the one we're currently in.

Related: Asset allocation: Fix your mix

Amid fears surrounding Ebola and slowing global growth, both the S&P 500 and Dow Jones Industrial Index are down more than 5% from a month ago, and some experts say it could signal the start of a market correction, when the market drops by at least 10%.

While there's no way to know which direction stocks will go, older investors simply don't have the time to ride out such big market fluctuations.

"If you're a couple of years away from retirement, you're really rolling the dice at the Roulette table," said Erik Laurence, vice president of marketing and business development at FeeX.

Related: What the heck should the Fed do now?

When stocks are plunging, age-appropriate allocations can help shield older investors from such steep losses, said Scott Tiras, a Houston-based Ameriprise financial adviser who works mainly with older clients.

"Diversification is so important...especially for someone who is going to be dependent on that portfolio sooner rather than later," he said.

So what's an overexposed Boomer to do?

Now is the time to check those 401(k) statements closely and make sure you have the appropriate asset mix. To help you figure out what that mix should be, try taking this risk tolerance quiz or using our asset allocation calculator.

If you find that you're too heavily weighted in stocks, let the current market volatility serve as a friendly reminder to put a more conservative strategy in place.

Related: Get your assets in gear! Find the right investment mix

Yes, that may mean selling at a loss compared to a few months ago. But stocks are still relatively flat for the year. And they're leaps and bounds higher than they were in 2008.

Of course, you could also hold tight and see what happens in coming weeks and months. But in that case, "the market might do the re-balancing for you," said Judith Ward, a senior financial planner at T. Rowe Price.

First Published: October 16, 2014: 6:30 PM ET

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Starbucks workers get raises, new dress code and a snack

Barista Kirstie Ponce showing off her tattoos.

NEW YORK (CNNMoney)

The changes include pay raises and an updated dress code for its U.S. employees.

The dress code, especially the coffee chain's ban on visible tattoos, had rankled baristas who wanted to show ink.

The news follows a summer that's seen worker grievances directed at Starbucks (SBUX) over the tattoo policy and scheduling.

Related: Starbucks workers get clearer shift scheduling after outcry

Starting in the January, Starbucks will give a pay increase to all baristas and shift managers. It did not specify the amount of the increase. The company also expanded its annual review and merit raise program to workers who had hit the top of their pay ranges.

Starbucks will also allow workers one free pastry or other pre-made food item per shift.

Related: Starbucks to pay for 1,000 workers to go to college

Starting Oct. 20, the dress code, previously one of the more conservative ones in the coffee industry, will now permit untucked shirts, nose studs, shorts, skirts, black jeans, tan khakis and colorful scarves and ties.

Before the announcement, baristas had to keep their black-and-white uniforms tucked in and cover up any tattoos.

At the same time, the company dialed back some dress code freedoms. Baristas and supervisors will no longer be allowed to wear watches, bracelets or rings with stones (such as wedding rings).

While many workers praised the eased restrictions around clothes and body art, a vocal contingent decried the new watch and ring restrictions on a company-run Facebook (FB, Tech30) page for employees.

First Published: October 16, 2014: 5:55 PM ET

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China is poised to report its slowest growth since the financial crisis

HONG KONG (CNNMoney)

Gross domestic product is forecast to have expanded by 7.2% in the third quarter, compared to the same period last year, according to a median estimate of 15 economists. That puts economic growth at its slowest pace since the first quarter of 2009, and well short of 7.5% expansion in the second quarter.

Economists surveyed expect full-year growth to come in at 7.3%, below the government's 7.5% target. Economic growth is forecast to dip further to 7% in 2015.

The National Bureau of Statistics will announce official third quarter GDP figures on Oct. 21.

China averaged growth of around 10% a year over the past three decades, pushing it up the list of biggest economies and boosting household wealth. But now, the pace of economic expansion is languishing -- China recorded GDP growth of 7.7% in the last two years, versus 9.3% in 2011 and 10.5% in 2010.

Related: The Chinese like capitalism more than Americans

China's GDP growth remains the most comprehensive gauge of the country's economic health -- an important number to watch as the government works to reform the world's second-largest economy and shift to consumption-driven growth after years of exponential expansion.

Recent poor key economic data has added to concerns that China will fail to meet its growth target. While the government has previously said its willing to accept growth around 7.5%, it has continued to adopt incremental measures to boost the economy.

Related: The Shanghai Free Trade Zone is a dud

Six out of 10 economists surveyed identified the real estate sector as the biggest risk to the Chinese economy. After years of breakneck development, the sector now suffers from excess supply, slack investment and falling home prices.

"Given the challenging outlook of the housing sector, we expect Beijing to put forth more selective easing in order to avoid the worst," said Societe Generale's Wei Yao.

Experts are also sounding the alarm over ballooning corporate debt, according to the CNNMoney survey.

A few Chinese companies have defaulted on their debt in recent months-- a previously unheard of phenomenon -- and no government bailouts are in sight.

Worries have also escalated over the use of unconventional financing. Some firms, for example, have been using copper as collateral to secure loans. Experts are concerned that some companies are even using the same copper stockpiles to take out multiple loans, borrowing far more than they can repay.

Related: Half of China's wealthy plan to leave

Although rumors have persisted that Beijing may replace central bank governor Zhou Xiaochuan, most economists say that any move to replace Zhou would be made because he is already past retirement age, and not because of policy disagreements.

Such a personnel change is unlikely to happen this year, and isn't expected to bring a policy shift -- the priorities of presumed successor Guo Shuqing align with those of Zhou, said Mizuho analysts.

Six out of eight economists say that the Chinese economy will see no or limited short-term impact from pro-democracy protests that have shaken Hong Kong over the last three weeks.

In the long run, if Hong Kong "loses its reputation as a trusted gateway for foreign capital to enter China, then it could hurt Chinese firms' access to cheap foreign capital, and potentially hold back ... other financial reforms," said Julian Evans-Pritchard of Capital Economics.

First Published: October 16, 2014: 9:29 PM ET

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Netflix shares tank 20% on weaker subscriber growth

NEW YORK (CNNMoney)

Shares plunged more than 20% in after-hours trading Wednesday after the streaming video service reported subscriber growth that came up short of its forecasts. Netflix (NFLX, Tech30) attributed the weak growth to the $1 increase in price for new subscriptions it announced in May.

"This quarter we over-forecasted membership growth," Netflix said in a letter to shareholders. "As best we can tell, the primary cause is the slightly higher prices we now have compared to a year ago."

The company added that it has no plans to roll back the price hike, saying it "remain[s] happy with the price changes and growth in revenue."

Related: Netflix's strategy: Shows for every age

Netflix also said its costs will increase in the months to come as it expands in Europe.

Overall, Netflix earned $59 million in the third quarter and added just over three million members. It now boasts a total of 53 million subscribers worldwide, and estimates that it will add four million more in the fourth quarter.

The news comes on the same day CNN parent Time Warner (TWX) announced it will sell online streaming subscriptions to HBO starting next year. Netflix addressed this development in its letter to shareholders Wednesday, saying it was "inevitable and sensible that [HBO] would eventually offer its service as a standalone application."

Related: 'Transparent' could transform Amazon Prime

"Many people will subscribe to both Netflix and HBO since we have different shows, so we think it is likely we both prosper as consumers move to Internet TV," Netflix said.

But in fact, Netflix CEO Reed Hastings said recently that the company wants to "become HBO faster than HBO can become Netflix."

Netflix also announced Wednesday that every episode of "Friends" will be available through the service as of January 1.

And it's still aggressively ramping up its original programming. It announced a deal earlier this month to produce four original films starring Adam Sandler, and next year, it will premiere a feature film in theaters for the first time: a sequel to the 2000 hit "Crouching Tiger, Hidden Dragon."

First Published: October 15, 2014: 4:52 PM ET

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Amazon bringing on more holiday hands this year

Amazon needs some extra help to sort all those boxes.

NEW YORK (CNNMoney)

The company said Thursday it will hire 80,000 seasonal employees this year, up from 70,000 last year. Two years ago, it hired only 50,000.

The extra hands will work in the Amazon (AMZN, Tech30) network of fulfillment and sorting centers, where employees locate, pack and ship millions of orders.

Experts are predicting a significant uptick in online shopping this season. The National Retail Federation's holiday forecast calls for online sales in November and December to be between 8% and 11% more than last year.

Last year, Amazon guaranteed delivery by Christmas on some orders placed as late as Dec. 23 -- the day before Christmas Eve.

But some weren't delivered. UPS (UPS) and Amazon apologized for the snafu.

Related: Online shipping will never be 100% on time

Since then, Amazon has expanded its network of fulfillment and sorting centers. The expansion, plus a contract with the Postal Service for Sunday deliveries, will allow "later cut-off ordering times for customers," Amazon said.

The seasonal jobs so far posted to its recruitment site show wages ranging from $10 to $11.50. The company has said the average wage for regular, full-time fulfillment center workers is about $12.

Last year, it hired about 10,000 of the seasonal employees to full-time positions, and says it hopes to hire back "thousands" this year.

First Published: October 16, 2014: 12:21 AM ET

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AbbVie board abandons $55 billion Shire merger

HONG KONG (CNNMoney)

AbbVie's board is recommending shareholders reject the merger because of changes in tax regulations, the company said in a statement.

"The agreed upon valuation is no longer supported as a result of the changes to the tax rules," AbbVie said. "We did not believe it was in the best interests of our stockholders to proceed."

The announcement comes only one day after AbbVie said it planned to reconsider its recommendation that shareholders adopt the merger with Shire. AbbVie stands to pay a $1.6 billion break-up free if the deal falls apart -- now a near certainty.

The merger, announced in July, would have seen AbbVie move its headquarters outside the U.S. in order to secure lower tax rates. Once the deal cleared, AbbVie was poised to cut its effective tax rate to about 13% in 2016 from 26%.

Related: Lew: Stop firms moving abroad to dodge tax

U.S. companies can't simply relocate to nations with lower tax rates to avoid U.S. corporate taxes. To get the lower foreign tax rate, they must use a process known as "inversion," in which a merger leads to a foreign partner owning more than 20% of the stock in the combined company.

Inversions have been all the rage lately, with companies including Burger King seeking to execute the maneuver.

The U.S. Treasury announced its "first, targeted steps" last month designed to make inversions less attractive. The rules target loopholes, including one tactic to move U.S. earnings abroad by making a loan to its foreign parent company in efforts to avoid taxes. Under the new regulations, those loans will be treated as U.S. property and will be taxable in many instances.

Related: More companies bail on U.S. for lower taxes

First Published: October 16, 2014: 1:16 AM ET

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$55 billion pharma merger could fall victim to new Obama tax rules

HONG KONG (CNNMoney)

Chicago-based AbbVie said Tuesday that its board of directors is reconsidering its recommendation that shareholders adopt the merger with Shire.

The company's board will meet Oct. 20 to examine the potential financial impact of new regulations announced last month by the U.S. Treasury.

Related: 7 things you absolutely must know about corporate taxes

The merger agreement, announced in July, would have seen AbbVie cut its effective tax rate to about 13% in 2016 from 26%.

A U.S. company can't simply relocate to nations with lower tax rates to avoid U.S. corporate taxes. To get the lower foreign tax rate, it must use a process known as "inversion," in which a merger leads to a foreign partner owning more than 20% of the stock in the combined company.

Inversions have been all the rage lately, with companies including Burger King (BKW) seeking to execute the maneuver.

The Treasury's "first, targeted steps" are designed to make inversions less attractive. The rules target loopholes, including one tactic to move U.S. earnings abroad by making a loan to its foreign parent company in efforts to avoid taxes. Under the new regulations, those loans will be treated as U.S. property and will be taxable in many instances.

Related: More companies bail on the U.S. for lower taxes

Critics say the real problem is the corporate tax code, which hasn't kept pace with the transformation of global business over the past few decades.

Related: Burger King buying Tim Hortons

Related: 7 companies that keep more than $50 billion offshore

First Published: October 15, 2014: 12:17 AM ET

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Seniors lose average of $30,000 to financial scammers

NEW YORK (CNNMoney)

According to a recent survey of 2,000 seniors and other adults by Allianz Life Insurance Co., elderly victims reported losing an average of $30,000, while some suffered losses of more than $100,000.

"For a senior without the ability to earn income, that's pretty devastating to their retirement plans," said Allianz Life Chief Executive Officer Walter White. "This isn't petty crime."

But perhaps even more disturbing: more seniors said they had been swindled by someone close to them as opposed to a stranger.

Financial exploitation of seniors ranges from the theft of money by a family member or caregiver to investment fraud and schemes like the popular grandparent scam, where a fraudster impersonates a family member in distress.

"To the extent that it involves a family member, there may be a lot of reluctance to admit [that they stole money]," said White.

While only 5% of seniors age 65 and older said they had lost money to a financial scheme, roughly 20% of their younger counterparts (ages 40 to 64) that were surveyed said they knew an older person who had been a victim.

Related: 7 scams that will make your blood boil

Past studies have estimated that seniors lose nearly $3 billion to financial abuse each year, yet many victims stay silent. The Consumer Financial Protection Bureau estimates that for every one case that gets recognized, dozens more go unreported.

"There is a certain amount of embarrassment and shame associated with it," White said.

For advice on how to prevent or spot financial exploitation, check out this guide from the CFPB.

First Published: October 15, 2014: 1:02 AM ET

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India looks for love on Tinder

NEW DELHI (CNNMoney)

The app is Tinder, which despite having arrived only one year ago, is now growing its user base in India by 1% per day. The app matches users by location and then allows them to connect if both parties are interested -- and it's a huge hit in cities like New Delhi and Mumbai.

"At first I thought it was a superficial, creepy kind of concept, but what it does is broaden your options," said Shilpi Roy, a young Delhi resident who has added Tinder to her dating routine.

But is this app -- which has a reputation for facilitating more hookups than relationships -- compatible with Indian culture?

In India, 90% of marriages are arranged, and dating around or having multiple partners is frowned upon. Newspaper advertisements and matrimonial websites here still promise a "homely, God-fearing and virtuous wife."

Related: India's hot new markets

Dakshi Kushwaha, a Tinder user and friend of Roy's, insists that matchmaking on Tinder isn't all that different that traditional methods -- which often includes a heavy dose of parental input.

"Even now when you hear of people getting into arranged marriage set up, they exchange numbers, they get talking," she said. "That's exactly what you do on Tinder. It's just now you swipe profiles right and left."

Between them, Roy and Kushwaha have met a handful of men on Tinder, and they think it's the best way to find dates. They like how it simplifies potential suitors to two main criteria: looks and physical distance.

Kushwaha said she is using the app to keep her options open, even as her parents work to set up an arranged marriage.

Related: India's $74 million Mars mission cost less than 'Gravity' movie

Chetan Bhaghat, a novelist and keen cultural observer, said the app appeals to young Indians who have grown adept at behaving one way in front of their parents, and another way when they're with friends or alone.

"Young Indians want to date or have one-night stands, but at the same time they don't want to upset their parents or the societal fabric they come from," he said. "They're okay with having an arranged marriage, but ... they want to fulfill their lust and desires for which they find Tinder very useful."

Despite the cultural complications, Tinder's rising popularity in India might be due to its ability to effectively match users -- a feature with universal appeal.

Even in the cloistered world of Delhi high society—where everyone knows everyone -- the app is making inroads, said Chirag Aga, 27, who met his current girlfriend through the app.

"Once you reach your late twenties or early thirties in Delhi, your circle of friends is set, and making new friends is a big task," he said. "Tinder is a great enabler."

Related: India's new prime minister to corporate America: Come to India

First Published: October 15, 2014: 2:11 AM ET

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Extreme Fear in stock market

NEW YORK (CNNMoney)

U.S. stocks got creamed again. The Dow slid another 223 points.

CNNMoney's Fear & Greed Index is a good indicator of market momentum. Today it hit zero. That's a huge red flag and showcases extreme fear in the stock market.

The only other time the index ever touched that low point is in August 2011 -- shortly after Standard & Poor's downgraded the U.S. debt.

Volatility -- or what some are calling "market whiplash" -- is clearly back in the market. The VIX, an index that measures volatility and is one of the factors that goes into the Fear & Greed Index -- spiked again today. It's up a whopping 60% in the past week alone.

For most investors, what really matters is the bottom line. A month ago, the S&P 500 was up around 8% for the year. After a wave of sell-offs, including on Monday, the S&P 500 is only up 1.4%.

It's worse for the Dow, which is now down 1.5% for the year.

Related: Is it time to exit stocks?

What's driving the latest market slide? Many thought today would be light trading and little action because of the holiday.

Ebola was the most obvious fear factor and the worst bout of selling came in the final hour of the market.

The airlines were hit hard -- Delta (DAL) dropped over 6% and Southwest (LUV)fell 5.5% -- on worries that vacationers and businesses will curtail travel until the virus is contained.

On the flip side, Lakeland Industries (LAKE), a maker of hazmat suits -- soared nearly 50%.

But the tension is the market seems deeper than just Ebola or even ISIS. There's ongoing worry about how unhealthy Europe's economy is. There was little data out Monday, but more members of the Federal Reserve are starting to voice concern about what's going on around the globe.

The market also crossed an important barrier. The S&P 500 dipped below its 200-day moving average. That's akin to an A student suddenly scoring a B or C grade on an assignment.

Related: Stocks should fall more. Here's why you shouldn't worry

"The 200-day has not been breached since 11/08/12," said Randy Frederick, Managing Director of Trading and Derivatives at the Schwab Center for Financial Research.

The S&P 500 ended the day at 1,875.

Tech stocks get hit: Energy and tech stocks also got shaved. Oil continues to trade around $85, a low point not seen for over two years. While cheap gas could help consumers, it translates to lower profits for shareholders of energy companies. Halliburton (HAL) and Chesapeake Energy (CHK) were among the worst performers in the S&P 500 Monday.

Smaller tech companies were the first to slip in the sell-off that started in September. Now larger companies are joining the plunge. Today Twitter (TWTR, Tech30) shed 3.8%, Yahoo (YHOO, Tech30) fell 3.1%, and Netflix (NFLX, Tech30) was off 3%.

Related: It's market check time for stocks as earnings begin

What's next? No one has a crystal ball on the market. Some are calling this a buying opportunity as the market dips.

"thank all for selling i am a strong buyer here Bullish," wrote bbar on StockTwits, a social media platform for traders.

Others see a rough end to the year.

"If market doesn't catch a bid from earnings, I wager we have our first negative year since 2009," commented PharoahNC on StockTwits.

Despite being down sharply in recent days, The S&P 500 isn't even in a true "correction" yet. It's down just shy of 7% from its highs. A correction would constitute a 10% drop.

A number of prominent companies will report earnings Tuesday including JPMorgan (JPM), Citigroup (C) and Wells Fargo (WFC) in the morning and Intel (INTC, Tech30) after the bell. Their results will likely set the tone for trading.

First Published: October 13, 2014: 5:06 PM ET

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