World of Finances

Japan is still the world’s third largest economy and its strength has been due to its exports to the rest of the world. A nation’s balance of trade is simply the difference in value between what it exports and what it imports; so Japan has historically enjoyed a very healthy balance of trade. However, Japan has suffered from the global financial crisis more than most because its currency was perceived as a “safe haven” – despite the fact that the Bank of Japan has been operating a “near zero” interest policy for many years (a stable currency with a decent rate of return on monies on deposit makes for a highly attractive safe haven currency).

The demand for the Yen, as a safe haven currency has pushed up its value against its major competitors. Of course, uncertainty in the Eurozone caused by the sovereign debt crisis has not helped matters; despite a recent rally, the currency is still 7.9% lower than it was a year ago and down a whopping 38.5% since its highest point against the Yen (169.75 to the Euro in July 2008).

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Pinterest has quickly become the newest social media craze. It is an online pin board that allows its users to “pin” things they like and share them with their friends and followers. According to their website, “Pinterest lets you organize and share all the beautiful things you find on the web. People use pin boards to plan their weddings, decorate their homes, and organize their favorite recipes…Browsing pin boards is a fun way to discover new things and get inspiration from people who share your interests.” 70% of Pinterest users are female; and I am not ashamed to admit that I am one of them.

To me Pinterest is a wish list, recipe file, inspiration wall, and wedding planning tool (okay I’m not even engaged yet, but that’s beside the point). I currently have 10 different boards: “Crafty Things”, “Yummy”, “Styles I Love”, and “Tying the knot”, just to name a few.

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Today the CBA committed not to offshore jobs and indicated they had no plans for major job cuts as they made their half yearly profit announcement. The bank reported a record half yearly profit of $3.6 billion up 7% from the previous half yearly results. The profits of the bank are possible only because of the contribution made by thousands of CBA employees and FSU members through their work.

CEO Ian Narev, said the bank was focusing on investing in its people and had no plan to follow some of its rivals by slashing hundreds of jobs or sending them offshore.

Today’s announcement will be welcome news to FSU members who are concerned about job security. The announcement provides some reassurance that the bank does not currently intend to engage in offshoring or major job cuts. By deciding not to slash and offshore jobs, the CBA has done the right thing by their employees and by the Australian community.

The commitment on jobs bucks the trend in the finance industry with competitors Westpac and ANZ announcing that they will cut and offshore thousands of jobs this year.

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I am a 20-year-old college student with a stable, part-time job. I haven’t contributed to a 401(k) with this company because I don’t plan to be working for it for two years, which is how long I’d have to wait for my contributions and earnings to be 100% mine. I’d like to open a Roth IRA, but I’m not sure I’m eligible. I’m listed as a dependent and our household adjusted gross income is between $145,000 and $155,000. Can I open a Roth?

Answer: The short answer is yes, although you may want to reconsider contributing to your workplace 401(k) as well.

As long as you have earned income that’s less than the Roth limits, you can contribute to a Roth account, said Mark Luscombe, principal analyst for tax research firm CCH Inc.

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