Stocks inch higher as European debt worries ease
(AP)

AP – Stocks rose Wednesday as investors brushed of fresh worries about the health of European banks to resume a rally.

Working Past 65 is Becoming the Norm

A growing trend among older Americans is taking shape: the probability of retiring at age 65 has dropped substantially.

More Americans are also coming out of retirement than in the past, while many people planning to work past traditional retirement age cite the need for more money and health insurance benefits as the most important reason for doing so. The financial benefits of delaying retirement are obvious, but smarter financial decisions made earlier in life can help prevent the need for a later retirement.

The federal government will probably soon push the retirement age past 65 in the near future, and additional age limits will likely follow. Washington will use the fact that people are living longer to justify the move, but unfortunately for those in lower tax brackets, Social Security may eventually be phased out. People in lower income brackets tend to not see doctors as often and don’t eat as healthy as wealthier folks, so this potential change could negatively affect several million Americans as we move forward.

Regardless of the tax bracket you are in, the key is to put money to work in quality dividend-paying stocks and not be at the mercy of having the government tell you when you are able to enjoy your later years.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Halliburton Restarted as an “Outperform” at Wells Fargo (HAL)

Oilfield services giant Halliburton Company (HAL) on Wednesday saw its coverage resumed with an “Outperform” rating by analysts at Wells Fargo.

The firm also set a $35 to $37 valuation range on HAL, which represents an expected 17% to 24% upside to the stock’s Tuesday closing price of $29.84.

A Wells analyst commented, “We view HAL as a solid #2 Oilfield Service company that is well run, well capitalized, and could provide significant upside earnings surprises over the next few quarters. We think HAL is attractively valued following a selloff of the group.”

Halliburton shares were mostly flat in premarket trading Wednesday.

The Bottom Line
We had removed Halliburton from our “recommended” list July 22, 2008 when the shares were trading at $48.91. The company has a dividend yield of 1.21%, based on last night’s closing stock price of $29.84. The stock has technical support in the $26 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels. We would remain on the sidelines for now.

Halliburton Company (HAL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

World stocks drop as investors seek safety
(AFP)

AFP – World stock markets fell on Wednesday as investors sought safety amid fresh worries about the fragile economic recovery, helping propel the yen to a 15-year high against the dollar, analysts said.

Would an electric car save money?
No question you’d spend less on gasoline. But an electric car has some costs you might not have considered. Here’s how to figure out if you’d come out ahead.

Damage Your Credit in a few Simple Steps

A growing number of consumers mistakenly believe that simply handing in their keys is the best option when it comes to debts they can’t afford.

It’s not a crime to owe money, and debtors’ prisons were abolished in the United States in the 19th century. These days, creditors go after any assets you have, and if you have none, they write off the debt and promise themselves to check your credit record more carefully next time around. Technically, a creditor can petition a court to issue a summons for nonpayment of a bill. From there, things can get crazy if for some reason you defy the court order.

Two troubling trends have been in the headlines the last few years, and they are both tied to real estate. One is home foreclosures, which is the process whereby the mortgage lender takes physical possession of your home because it’s in default. The other is a “short sale” in which the lender agrees to take less than you owe on the home and consider the loan to be paid. There are different rules when it comes to lenders and how they can try to collect debts for each state. Real estate agents have built a niche around short sales, but they are not doing you any favors when it comes to your credit score.

The consensus from people I speak to is that either option will get wiped away sooner than most think and they are willing to pay the price. Unfortunately the government has made it a common occurrence to justify loan modifications and other programs that seem to reward people that have made careless decisions in many cases. There are of course special cases where unforeseen circumstances are a cause of one being unable to pay their debts, but for the most part, many of these situations could have been avoided by simple financial common sense.

Paul Rubillo is the founder and CEO of Dividend.com.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

AvalonBay Communities Downgraded at KBW Research (AVB)

Multifamily dwellings REIT AvalonBay Communities, Inc. (AVB) on Tuesday saw its shares downgraded by analysts at KBW Research as part of a valuation call.

The firm cut its rating on AVB from “Outperform” to “Market Perform” with a new $117 price target. That target represents a small expected upside of 6% to the stock’s Friday closing price of $110.39.

A KBW analyst commented, “The stock is up approximately 20% since mid-May and we think it’s time for investors to take some profits. While we view AVB as a core holding and expect above-average core growth over the next couple years, AVB’s full valuation drives our downgrade. New PT is $117, pointing to a 9% potential return; NAV and estimates remain unchanged for now.”

AvalonBay shares were mostly flat in premarket trading Tuesday.

The Bottom Line
Shares of AVB have a 3.23% dividend yield, based on Friday’s closing stock price of $110.39. The stock has technical support in the $100 price area. If the shares can firm up, we see overhead resistance around the $120 price level. We would remain on the sidelines for now.

AvalonBay Communities, Inc. (AVB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

New Purchases Can often be Avoided with Repairs Instead

If you really put your mind to it, you can come up with several ways to save money on a daily basis.

Many times you are able to offset new expenses on certain bigger ticket items by simply maintaining and repairing something that does not need to be discarded. The panic to need “new” can really gain momentum and next thing you know you find yourself on a spending binge that was simply unnecessary.

This scenario often plays out when it comes to home renovations. The minute you go “new” in one part of your home, the more the rest of the house looks dated or in need of the “new fix.” Instead, learning to get by with what works is something that can be a good practice to get into. Functionality is almost always as important as the look of something.

Of course, just “getting by” doesn’t always apply to everything, especially when it comes to potential future earnings. Simply said, don’t show up to an interview with a tattered sweater because it was functional, but rather make a smart purchase that can pay a dividend in future time.

Paul Rubillo is the founder and CEO of Dividend.com.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Solo Roth 401k Plans Can Ramp Up Your Retirement Nest Egg

The Solo Roth 401k is a new salary deferral option which is useful for a wide variety of people, especially if you are if you expect your income to increase dramatically over your career.

Regular Roth IRAs have income limits, but Solo Roth 401k plans have no income limits. Higher contribution limits are also permitted with a Roth Solo 401k. In 2009 and 2010 the total contribution limit for a Solo 401k is $49,000 or $54,500 if you’re age 50 or older. The annual Solo 401k contribution consists of 2 parts a salary deferral contribution and a profit sharing contribution. The total allowable contribution adds these 2 parts together to get to the maximum Solo 401k contribution limit.

Be sure to sit down with a tax professional to go over your ability to be able to put these higher totals away. Remember, you need to have the ability to not touch the money for years, so as to avoid a penalty. It also doesn’t hurt to consult with a financial planner, but check it out if you have the financial ability to maximize your annual contributions in a Solo 401k account.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Asian markets climb as double-dip fears ease
(AP)

AP – Stocks in Asia advanced Monday following solid gains in the U.S. as fears eased that the global economy could slip back into recession.