MONEY cellphones

3 Promotions That Show Sprint Is Desperate for Your Business

Sprint store sign
Andrew Harrer—Bloomberg via Getty Images

Sprint is offering crazy-sounding deals right now, including hand delivery of new phones. But that doesn't mean the wireless provider offers good value.

Sprint just announced that it will hand deliver new phones to customers’ homes and then help them set up the devices. The new promotion is set to start in Kansas City (near Sprint’s Overland Park headquarters) before rolling out to Miami, Chicago, and the rest of the United States.

Yet for anyone paying attention to the industry, the promo reads more as an act of desperation than a great deal. Though Sprint has been holding on to about 16% market share for the last few years—about the same as T-Mobile, and half as much as top-two carriers Verizon and AT&T—it has poor customer satisfaction rates and an especially high “churn” rate, or percentage of customers who dump their provider each quarter.

To be fair, the “D” word gets thrown around a lot when cellphones are being discussed. Last year, T-Mobile CEO John Legere accused AT&T of being “desperate” by offering a $450 buyout plan for customers who jumped ship from rival carriers. Then, days later, T-Mobile upped the desperation ante by offering its own $650 buyout plan—and AT&T quickly (and quietly) ended its offer. And it’s not just wireless carriers: Reviewers of HTC’s new “Uh-oh protection” program have called the deal desperate, since it offers a free replacement if you break your phone within the first year. Even iPhone users with AppleCare+ don’t get totally free phone replacements.

But Sprint in particular has garnered much attention over the years for especially desperate-sounding promotions. Here are 3 signs the company really, really wants your love.

1. Sprint will meet you at Starbucks, the gym, or wherever

The company’s new hand-delivery promotion offers a time-window precision that might make even Amazon Prime customers jealous.

“We will deliver pretty much anywhere… and it’s an exact-on-time delivery,” Sprint vice president Rod Millar told The Verge. “You can tell us ‘6:45, and meet me at McDonald’s.'”

Sounds convenient, but also potentially awkward—particularly for the Sprint “expert” who gets to roll up in this extremely cool-looking car and wait for you to finish ordering your fries.

2. Sprint will cut your AT&T or Verizon bill in half

This past December, Sprint announced it will now give you a 50% discount off whatever monthly fee you were paying AT&T or Verizon if you cancel your plan and switch.

Of course, the company also uses the promotion to get you locked into one of its various device programs. Those include the “iPhone for Life Plan,” which is not so much a chance for you to get a free new iPhone every few years (like it sounds) as it is a lease program in which you pay a monthly fee on top of your service charges—and do not technically own the phone.

3. Sprint will give you $550 to ditch T-Mobile

If you trade in your T-Mobile phone, you get $200 upfront from Sprint, plus up to $350 per line for dropping your T-Mobile contract.

Given that Sprint is in serious danger these days of slipping behind T-Mobile in the cellphone wars, this promotion makes sense. In 2014 alone, the company bought back more than 3 million phones from rival carriers.

Then again, if it wants to earn back market share, the service provider might want to focus less on promotions and more on, well, service. Sprint’s poor coverage kept it off of MONEY’s Best Cellphone Plans list last year, and despite some improvements, the company still ranks below its peers according the most recent report by RootMetrics, a company that rates mobile plans.

MONEY stocks

The Hidden Danger in Apple Stock

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China Stringer Network—Reuters

Apple's mountain of cash—which is generally considered a safety net—actually comes with risks.

Investing in Apple APPLE INC. AAPL -1.09% today seems like a smart bet by many measures.

The company broke records for the most profits for any business in a single quarter—ever—earlier this year. With nearly $180 billion in cash, management has plenty of cushion against setbacks—like, say, if the new Apple Watch doesn’t sell as well as projected. And while Apple has been criticized for not sharing that cash with shareholders as much as peers like Microsoft do, recent signals from company leaders suggest they may announce a hefty dividend hike as early as this month.

Certainly, there’s plenty of cause for investors to favor cash-rich companies like Apple, says Thomas McConville, co-portfolio manager of the Becker Value Equity fund, which holds Apple stock.

“A company having lots of cash is like a person having lots of savings,” McConville says. “If a person loses a job, savings help to weather the storm. Cash helps a company protect itself from shocks and keep investing in value-creating activities.”

But, he says, the devil is in the details of how exactly a company invests in activities—and whether those enterprises actually add value.

New projects and products can make or break a company, and it can be especially risky for a business to step out of its wheelhouse. Apple’s wheelhouse is making the best-looking and best-functioning advanced consumer tech products, says McConville.

That’s at least partly why some critics are skeptical about whether the rumored Apple car is the right new venture for the company.

“As an investor, I want to see that any product extension they announce fits under their umbrella,” McConville says. “If they get into vehicles, creating onboard technology and displays is a good fit, since visual appeal and functionality are top concerns. But if they were going to try to design seat brackets? Well, that’s probably not the perfect fit.”

That makes sense. Then again, traditional automakers already seem enthusiastic to team up with Apple—and with all that cash, the tech giant could easily just buy a company with more experience creating car parts like seat brackets. So what could go wrong?

Well, cash-rich companies have lots of buying power, says Don Wordell, portfolio manager of the RidgeWorth Mid Cap Value fund. And, as the saying goes, with power comes responsibility.

“Companies that are simply too big to grow organically can grow inorganically by buying others,” he says. “But that creates risk. Cash can be as much of a liability as an asset.”

So, for example, it worked out well when Disney bought Pixar for $7.4 billion nine years ago. That acquisition led to a spate of successful movies, a stronger brand, and happy investors who have seen total returns of more than 300% since 2006.

But when Quaker bought Snapple for $1.7 billion in 1994, it bungled the brand’s marketing campaigns and relationships with distributors; after just 27 months, Quaker sold Snapple to a holding company for about $300 million—less than a fifth of its purchase price. The whole affair left Quaker with a damaged credit rating and dragged its stock price flat during a period when the rest of the market was on fire.

Hindsight is, of course, 20/20. But a key quality investors should watch for is how patient and thoughtful a company’s leaders seem to be before deploying resources.

“Too much cash can burn a hole in management’s pocket and cause them to make a bad acquisition,” says McConville.

Apple’s record of acquisitions and product launches is not without flops. Among other failed products, there was Apple’s 2007 Bluetooth headset, which was discontinued after two years because it couldn’t compete with third-party devices. And although the company has invested millions over the years in acquiring mapping companies, like Placebase and Poly 9, Apple has still not succeeded in creating a mapping application that competes with the likes of Google Maps.

Of course, Apple’s top executives have made plenty of successful moves on behalf of the company in recent years, and sales of core products like the iPhone are still breaking records. But strong is not invincible, and if its new wristwatch doesn’t take off, Apple will soon be looking to throw cash at developing its next big product.

Investors would be wise to keep an eye on how, exactly, that cash is spent.

 

MONEY Holidays

A $49,000 Bunny and 6 Other Crazy Numbers for This Holiday Weekend

(left) Marshmallow Peeps factory; (right) Passover matzo at the Manischewitz Co. factory in Newark, New Jersey.
Kristoffer Tripplaar/Alamy (left)—Ron Antonelli/Bloomberg via Getty Images) Marshmallow Peeps factory (left) ; Passover matzo at the Manischewitz Co. factory (right).

Whether you want to spend thousands on a "prime Passover experience" or tens of thousands on a chocolate bunny, retailers have your holiday needs covered.

This year, Easter and Passover fall on the same weekend, which means grocery stores will be overrun by shoppers grabbing last minute-supplies for seders and holiday dinners. Consumers will shell out more than $2 billion just on candy alone.

Here are some other impressive numbers associated with these two holidays.

$16.4 billion
The amount consumers plan to spend this year on Easter, compared with $15.9 billion last year, according to the National Retail Federation’s annual survey. That averages out to about $140 per person.

35
The number of Peeps flavors available during Easter season. You can enjoy a sugar-coated marshmallow chick in flavors that include “party cake,” “sour watermelon,” “sweet lemonade,” and “mystery flavor.”

$49,000
Cost of a chocolate Easter bunny with diamonds for eyes being sold by chocolatier Martin Chiffers via luxury product site veryfirstto.com. Don’t worry about waste: The site states that “Once the bunny has been eaten, the diamonds can be set into a bespoke piece of jewellery (such as earrings) free of charge.”

30%
The typical premium for kosher foods versus nonkosher foods, year-round. Special “kosher-for-passover” products are even more expensive because of the extra requirements the food must meet.

$10,000
The penalty for price gouging on kosher-for-Passover products, as proposed by a new bill in the New York state Senate.

$11,000
The price of the eight-day “Prime Passover Experience” at the St. Regis Monarch Beach in Dana Point, Calif. For that sum, you get an ocean-view room and butler service, plus options for horseback riding, private sailing, limo service, yoga, spa time, and vintage wine with your Passover meal.

More than 40%

eggs
Bon Appetit/Alamy (left)—Scott &Zoe/Getty Images (right)

Increase in the sales of eggs, which feature both in Easter egg hunts and on the seder plate, in the week before Easter.

MONEY Workplace

Law Firm’s April Fool’s Joke About Work-Life Balance Backfires

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Getty Images—(c) Image Source

There are some things bosses just shouldn't joke about.

Add this to the list of April Fool’s Day stunts from Wednesday that failed spectacularly: A big New York-based law firm told employees it was instituting a new policy eliminating work emails during night and weekend hours… and then revealed the whole thing was a joke.

Hilarious, right? All you suckers must keep tabs on work no matter if it’s midnight on a Tuesday or a Sunday morning and you’re on vacation. Ha!

The way the prank played out is that Weil, Gotshal & Manges sent out a company-wide email claiming the firm was banning all work-related emails between the hours of 11 p.m. and 6 a.m., as well as on Saturdays, Sundays, and employee vacation days. According to messages obtained by legal industry blog Above the Law, associates were elated to learn of the new policy, supposedly inspired by similar practices currently catching on in Europe, until it was revealed to just be a goof.

Since employees generally don’t like it when their bosses see their work-life balance as—literally—a joke, Weil received enough backlash to send out a firm-wide mea culpa in the afternoon. The email, from executive partner Barry Wolf, reads: “We obviously got this wrong and we sincerely apologize. We know and appreciate the hard work that all of you do. We have and continue to take work-life balance seriously and are always evaluating ways to improve the quality of life here, given the intensity and demands of the profession.”

It makes sense that this joke didn’t go over well, considering how notoriously bad lawyers’ hours tend to be and how modern technology makes it hard for employees across all industries to ever fully unplug—even while on vacation.

Though American workplaces generally tend to be slow to embrace policies that make it easier for staff to have a life outside the office, it’s a good sign that Weil was quickly shamed for its tone-deaf prank. It seems even lawyers want to join the movement toward workplace flexibility and family-friendly policies.

MONEY Social Media

How to Avoid This Banking Honcho’s Snapchat Disaster

Rory Cullinan CEO of RBS Capital Resolution Group attend the Citizens Financial Group, Inc. Initial Public Offering on September 24, 2014 in New York City.
Craig Barritt—Getty Images for Citizens Financ Rory Cullinan, right, with Bruce Van Saun, CEO of Citizens Financial Group, in September 2014.

There's a simple takeaway from this cautionary tale.

Unless you’re employed in the global banking industry you probably missed the recent announcement that Royal Bank of Scotland chairman Rory Cullinan will soon be leaving his post. Bloomberg, the Guardian, and other media outlets attribute the departure to a clash with other execs over strategy.

One intriguing footnote to the story, however, puts it in “There but for the grace of God…” territory for any working stiff who uses social media for non-business purposes—or, for that matter, any parent who struggles to stay connected to his or her social-media-obsessed teen.

That’s because about a month ago, British tabloids published screenshots of Cullinan’s Snapchat selfies captioned with “Boring meeting xx,” “not a fan of board meetings,” and “Another friggin meeting.” The Sun reported that Cullinan had sent the messages to his teenage daughter, who posted the screenshots to her own Instagram feed last spring using the hashtag #daddylikestoselfie.

Compared to other notorious career-damaging social-media blunders, Cullinan’s gaffe seems pretty mild. Some might even be charmed by this high-powered banker’s efforts to bond with his daughter.

Still, the Snapchat incident couldn’t have helped Cullinan’s relationship with his employer or coworkers, as Bloomberg’s Matt Levine humorously points out.

Even if the chairman’s departure is largely unrelated to his Snapchats, there’s a lesson in the whole episode—and for once, it doesn’t have to do with managing the security settings on your accounts.

Sure, it’s always a good idea to keep privacy settings high on any social media accounts. But the truth is you can’t always maintain control over your messages. Both Instagram and Snapchat have recently seen huge breaches involving images users thought were private. Recruiters report digging deep into the online profiles of potential hires, all the way down to their grammar and spelling. And the latest incident just goes to show that even if you are circumspect, your friends or family members might not always be so careful.

The thing to do: Wait a beat before publishing words or images, no matter the audience. Remember that something that looks innocent in one context could burn you in another. From the perspective of a potential employer, what you write is indicative of your character.

“When you’re hiring for a job, you have very little data about candidates, so every piece of data that you do get carries an enormous amount of weight,” says former hiring manager Alison Green, who runs the career blog askamanager.org.

On one hand, it’s frustrating that a minor lapse of judgement can negatively impact one’s livelihood—and that even well-meaning people have to worry that an old Tweet or photo could cast a shadow over their careers. On the other hand, the transparency of certain forms of social media can be a force for good, pushing people to choose their words more carefully, kindly, and responsibly.

In Cullinan’s case, that might have meant swallowing his work gripes until after hours, and opting for a simpler message like “I miss you.”

MONEY women

10 Countries That Put Women on Cash Before the U.S.

The U.S. lags far behind several other nations when it comes to recognizing female leaders on paper currency.

As a campaign to get a woman on the $20 bill picks up steam, you might be surprised to learn just how far behind the times the United States is compared with other countries.

At least 10 other nations have already recognized female leaders on their banknotes, including Syria, the Philippines, and Israel.

Click through the gallery below to see which countries made the list. Then take MONEY’s poll to vote on the woman you’d most like to see on American currency. If you need inspiration, check out WomenOn20s official site to learn more about candidates like Susan B. Anthony, Betty Friedan, Shirley Chisholm, and Sojourner Truth.

Read next: VOTE: Who Should Be the First Woman on a Modern Dollar Bill?

  • Syria

    Queen Zenobia
    Khaled Al-Hariri—Reuters/Corbis

    Syria’s current image is that of a nation wracked by civil war and struggling against the violent militant group ISIS. But it outpaced the United States on one sign of social progress: recognizing women on official currency.

    Syrian Queen Zenobia, known for fighting back against Roman colonizers in the second century AD, appears on the 500-pound note.

     

  • Philippines

    Philipine 500 and 1000 peso notes
    Edwin Tuyay—Bloomberg via Getty Images

    During the mid-1980s, the Philippines introduced a 500-peso note featuring prominent senator Benigno Aquino Jr., who had been assassinated in 1983. His wife, Corazon Aquino, went on to become the first female president of the Philippines—and the first female president in Asia, for that matter—and her image was added to the bill after she died in 2009. Early 20th-century suffragette Josefa Llanes Escoda also appears (alongside two men) on the 1000-peso note.

  • Turkey

    Nick Fielding—Alamy

    In Turkey, the current 50-lira note features turn-of-the-century novelist and women’s rights activist Fatma Aliye Topuz on its reverse side. (The first president of Turkey, Mustafa Kemal Atatürk, appears on the front of every bill.)

  • Mexico

    500 Mexican pesos notes on a table with traditional Mexican ornament. The note has the portrait of the painter Diego Riviera on one side and Frida Kahlo on the other.
    Daniel Sambraus—Getty Images

    Mexico’s 500-peso note shows muralist Diego Rivera on the front and his wife and fellow artist Frida Kahlo on the back. Her image is a 1940 self-portrait, alongside a famous painting of hers from 1949, “Love’s Embrace of the Universe, the Earth (Mexico), Myself, Diego and Señor Xólotl.” Seventeenth-century Mexican writer Sor Juana Inés de la Cruz appears on the 200-peso note.

  • Argentina

    Eva Peron (1919-1952) on 2 Pesos 2001 Banknote from Argentina. Second wife of President Juan Peron.
    Georgios Kollidas—Alamy

    Argentina’s beloved former First Lady Eva Perón—widely known by her nickname “Evita”—appears on the current 100-peso bill. The 20-peso note depicts 19th-century Argentine political activist Manuela Rosas along with her father, politician Juan Manuel de Rosas.

  • New Zealand

    New Zealand 10 Ten Dollar Bank Note
    Glyn Thomas—Alamy

    Like many other former British colonies, New Zealand features Queen Elizabeth II on its currency—the 20-dollar note to be precise. But Kiwi banknotes also honor suffragette Kate Sheppard, who in 1893 helped New Zealand become the first country in the world with universal voting rights for both men and women. Her image appears on the 10-dollar bill.

  • Israel

    Wikimedia Commons A portrait of Israeli poet Rachel Bluwstein, who lived from 1890 to 1931.

    The Bank of Israel recently announced that it will be adding images of two female Israeli writers to forthcoming 20- and 100-New Shekel banknotes, respectively. The former will feature turn-of-the-century poet Rachel Bluwstein, and the latter author, poet, and literary expert Leah Goldberg, who died in 1970.

  • Sweden

    Artwork showing the designs of new folding Swedish krona, or kronor, currency notes due to be issued in 2014 stands on display at the Riksbank in Stockholm, Sweden, on Tuesday, Jan. 22, 2013.
    Bloomberg via Getty Images—Bloomberg via Getty Images

    Imagery on the krona celebrates several women in Sweden’s history. Currently there’s Selma Lagerlöf—the first woman to win the Nobel Prize in Literature—on the 20-krona note, as well as 19th-century opera singer Jenny Lind on the 50-krona bill. Starting this fall, a new line of banknotes will feature Pippi Longstocking author Astrid Lindgren on the 20-krona, 20th-century soprano Birgit Nilsson on the 500-krona, and classic film actress Greta Garbo on the 100-krona note.

  • Australia

    An Australian one-hundred dollar banknote
    Carla Gottgens—Bloomberg via Getty Images Dame Nellie Melba on the Australian 100-dollar banknote

    Australia has one woman on either the front or back of every banknote currently in circulation. They include Queen Elizabeth II on the front of the $5 bill, social reformer and writer Dame Mary Gilmore on the back of the $10, 19th-century businesswoman Mary Reibey on the front of the $20, politician and social worker Edith Cowan on the back of the $50, and turn-of-the-century soprano Dame Nellie Melba on the front of the $100 note.

  • England

    Jane Austen to feature on banknote. Mark Carney, the Governor of the Bank of England, with the ten pound note featuring Jane Austen at the Jane Austen House Museum in Chawton, near Alton. The Austen note will be issued within a year of the Churchill £5 note, which is targeted for issue during 2016.
    Chris Ratcliffe—PA Wire/Press Association Images The new Jane Austen £10 note will look like this.

    If featuring women on currency were a contest, the Bank of England would win, with every note since 1960 depicting Queen Elizabeth II on the front. Past bills featured nurse and statistician Florence Nightingale on the back, current 5-pound notes show 19th-century social reformer Elizabeth Fry, and the next 10-pound bill will celebrate famed 19th-century author Jane Austen.

MONEY salaries

This Easy Negotiation Trick Could Boost Your Salary

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New research shows that framing your desired pay for a new job in a particular way can help you hit your target.

A new study finds that asking for a dollar amount during a negotiation is more successful if you put it at the bottom of a range instead of just asking for it outright.

So for example, if you’re targeting a salary of $52,000, you’re best off asking a prospective employer for something between, say, $52,000 and $56,000.

The finding, by Daniel Ames and Malia Mason of Columbia University, might seem obvious at first glance—but it actually contradicts existing schools of thought. Some experts have theorized that you should not open salary negotiations with a range because doing so could make you seem either uninformed or manipulative and might cause the person you’re negotiating with to consider only the lowest number in your offer.

Instead, the new research found, couching your request in a range can actually make you seem more cooperative and flexible—and make it harder for a prospective boss to counter with a much lower salary number without seeming impolite. The key is choosing the right high and low anchor numbers so you don’t accidentally low-ball yourself.

“The lowest number is the point offer you are aiming for, and the high number is more ambitious,” says Mason. “People who want $100,000 will often ask for $90,000 to $110,000, but it is going to be most effective to ask for $100,000 to $120,000.”

Of course, there are exceptions to every rule, and sometimes a different tactic might be more effective to gain the upper hand during a salary negotiation. Another study Mason conducted showed that that asking for specific, unrounded figures in negotiations can be better than asking for rounded ones, because it makes you seem more informed. So to use the same example from above, if you want about $52,000, you might want to ask for $52,500.

Those findings aren’t necessarily inconsistent, Mason points out.

“Context is important,” she says. You might be better off using a precise number if you want to send the message that “you have done your homework. But if it seems important for you to appear flexible, then you could signal that by offering a range.”

That’s one reason to pay close attention to the cues your interviewer is sending out. If he or she drops a lot of language about adaptability and cooperation, naming a range might cast you in a more positive light. Alternatively, a specific number might be appropriate if the job description seems to emphasize preparedness, knowledge, and thorough experience in the field.

But none of this is to say you should suggest a salary without being asked about it directly, says Mason. Top recruiters agree that—when you can help it—it’s best to let a potential boss be the one to bring up a number first.

Read next: The Secret Formula That Will Set you Apart in a Salary Negotiation

MONEY interest rates

Higher Interest Rates Are Coming. Here’s Who Wins and Who Loses

150319_INV_InterestRates
Getty Images

The Fed says rate hikes will be gradual, but they'll affect everything in the economy, from your mortgage to your job to your 401(k).

Federal Reserve chair Janet Yellen has signaled, by omitting the word “patient” from her latest statement, that the central bank could begin raising interest rates as early as this summer. On Monday, Stanley Fischer also suggested in a speech that rate hikes are likely before the end of the year.

The rise is likely to be slow and bumpy. Still, the Federal Reserve’s benchmark short-term interest rate has been near zero since the financial crisis in 2008, and it’s been a long time since investors, borrowers and consumers have dealt with a rising-rate environment. The Fed’s decision to move rates in the other direction, when it comes, is something you’re sure to feel in your wallet.

So here’s a primer on who is helped and who is hurt when the Fed makes borrowing more expensive.

Helped: Anyone looking a safe place to stash money

Savings and money market accounts today offer an average interest rate of only 0.44%, according to Bankrate, but the good news for savers is that rising interest rates should buoy yields across the board. One caution is that if the Fed moves slowly, that means the interest earned on your accounts probably won’t bump up very quickly either. So if saving more this year is a big priority for you, take matters into your own hands with these moves, geared toward powering up your savings.

Hurt: New borrowers, and anyone with an adjustable loan

Rising interest rates push up borrowing costs for home and auto loans. If you already locked in a 30-year mortgage at the ultra-low rates that have prevailed over the past several years, you were probably smart. According to Freddie Mac, 30-year mortgage rates are 3.7% on average today, compared with nearly 6% a decade ago.

But the millions of Americans who hold adjustable-rate mortgages could end up paying more. Mortgages are typically pegged to the 10-year Treasury bill. While the Federal Reserve doesn’t control this rate directly, long-term rates typically rise in response to the short-term rates the central bank sets. The good news? Since Treasuries are a safe haven for global investors, yields are generally being held down by high demand—which rises every time there’s bad news in, for example, Europe. So mortgage rates might rise comparatively slowly even after the Fed takes action.

Not so clear: Anyone looking for a job or a raise

One of the Federal Reserve’s mandates is is to maintain full employment. When unemployment rises, it can try to stimulate growth by cutting rates. The idea is that cheaper borrowing makes it easier for consumers to spend and for businesses to expand and hire new workers. The flipside is that higher interest rates and tighter money supply can make hiring less likely. That’s one of the reasons the Fed has been so hesitant to raise rates in recent years, and there’s a risk that a too-early rate hike will cut off job growth.

Of course, keeping interest rates low for too long can come with its own danger: inflation. If there’s no “slack” left in the labor market—meaning that basically everyone who wants to work and can work already has a job—the easy availability of money will stop creating jobs and instead show up in the economy as higher prices. Ideally, the Fed would wait to raise rates until the precise moment when employment tops out and before inflation takes off. But where exactly that point is can be a contentious issue. At the moment inflation is very low and wages have yet to take off (suggesting some slack is left.) But a series of strong jobs reports seems to have some on the Fed wanting to get ahead of the curve.

Hurt: Owners of bonds and bond funds

You likely have a portion of your money, in a retirement portfolio such as a 401(k), invested in bonds.

Rising interest rates mean falling bond prices. Bonds typically pay a fixed coupon, so when prevailing rates rise, the value of your bond portfolio falls until its yield matches what’s available elsewhere on the market. The size of your losses depend on how steeply rates rise and the maturity, yield and other characteristics of the bonds you own. Wall Street sums up a bond’s interest rate sensitive with a figure called duration. You can look a bond fund’s average portfolio duration at sites like Morningstar. In general, duration tells you how large a capital loss you can expect for each 1% increase in rates. So Vanguard Total Bond Fund, with an average duration of 5.6, would fall about 5.6% with a 1% increase in rates.

There’s good news though: If you own a bond fund, the decline in your fund’s value will be made up with higher payouts as your fund acquires new bonds with higher yields. You’re likely to be made whole in a few years. Future bond investors benefit, too.

Not so clear: Stock investors

Whether rising interest rates will help or hurt U.S. stocks is a more complicated question.

All else being equal, a hike should hurt. One big reason is many investors choose whether to put money into either stocks or bonds, as bond yields pay more stocks become comparatively less attractive. But there are lots of other things to consider. For instance, stocks typically reflect investors’ attitudes about the overall health of the economy. And the if the Fed is signaling that it might raise rates, then it also thinks the economy is healthy enough to handle it. Other investors might view this as a bullish signal.

What does history say? The record is mixed. Stock researcher S&P Capital IQ recently examined 16 previous rate tightening cycles since World War II and found that the Fed’s moves led to stock market declines of 5% or more about four-fifths of the time. However, a separate study by T. Rowe Price looked at the question slightly differently: T. Rowe examined nine instances since 1954 that the Fed has raised rates following a recession. It found an average market gain of 14% a year later. In other words, it’s hard to know exactly how the market will react—except to say that it could be bumpy ride.

Helped: Banks

Banks make money by borrowing at low short-term interest rates (think checking and savings deposits) and lending it out at higher, longer-term rates. In an ideal world, they’d love short-term rates to remain at rock bottom, as long as longer term rates are high too. So you might not think they’d be cheering for a short-term interest rate increase.

Their problem has been that long-term rates aren’t high, but low. Meanwhile short-term interest rates can’t really go below the zero they’re stuck at. That’s left them little room in the middle. A rate hike will could give banks a window of opportunity to earn more attractive “spreads” once the Fed moves.

Helped: Anyone looking to spend U.S. dollars abroad

When interest rates rise, it pushes the value of U.S. currency up. That’s good for American consumers who want to buy foreign goods (and go on European vacations) cheaply.

Hurt: Anyone looking to sell things to foreigners.

But there are dangers in a too-strong dollar. If our currency is too strong, it means it willll be harder to sell U.S.-made products globally—which would be bad for economic growth.

Not so clear: Foreign stock funds

Most international-stock mutual funds hold assets denominated in other currencies, like the euro. The strong dollar means those assets they are worth less, all else being equal. (Some funds “hedge” their currency exposure.)

Over the past year, the MSCI All-Cap World EX-USA index is up 14.6% in local currency terms through Feb. 28. But according to Morningstar, the average foreign stock mutual fund—with roughly half its assets in Europe —has falled 0.06%.

On the other hand, the a strong buck isn’t all bad for foreign stocks. Companies in countries with weaker currencies will be able to export more goods to the U.S, boosting their earnings. And while it’s no fun to see your market winning vanish, investors are usually better off riding out such currency swings. When the dollar next weakens, your foreign stocks will have a tail wind.

One special case is emerging markets stocks. Razor-thin U.S. interest rates have been a boon for them, as U.S. investors, frustrated by dismal yields at home, have shifted money abroad. Once that changes, much of that money could rush back home.

MONEY salary

Your ER Doctor Might Get Paid As Little As a Wal-Mart Employee

Bentonville, Arkansas Walmart
Gunnar Rathbun—Invision for Walmart

Wages of about $13 an hour are one thing medical residents face in their first few years out of school.

Fourth-year medical students around the country celebrate Match Day on March 20, the day acceptances to medical residency programs roll in, and soon-to-be doctors learn of the hospitals, clinics, and cities where they will be spending the next few years of their lives.

One topic of conversation that’s less celebratory? How much they will get paid.

The average salary for a medical resident is about $51,000, according to Payscale.com. While that is close to the median household income in the United States, residents are known for working very long hours—a practice that has caused controversy, in part because of safety concerns. Rules set by the Accreditation Council for Graduate Medical Education officially limit residents’ working hours to 80 per week—though exceptions allow hours as high as 88 per week.

What this means is that in hourly terms, pay for residents can be as low as $13 an hour. That happens to be the level to which Wal-Mart announced it would increase full-time wages this year.

The good news, of course, is that doctors can expect their salaries to rise significantly once they finish training: The average pay for general practice physicians is $131,000 a year, according to Payscale—with medical specialists like orthopedic surgeons pulling in starting salaries as high as $450,000.

MONEY Entrepreneurs

Here’s a New Theory About Why People Become Entrepreneurs

mother and daughter shopkeepers
Ariel Skelley—Getty Images

Nurture beats nature when it comes to small business ambitions, according to a new study.

It’s long been known that children with entrepreneurial parents are more likely to become entrepreneurs themselves. But new research quantifies that effect—and goes a step further by suggesting why exactly that might be.

The study, published in the latest Journal of Labor Economics, found that upbringing, rather than genetics, seems to have the biggest effect on the offspring of self-started business owners. The researchers did something prior studies (which mainly focused on twins) hadn’t: They examined the career choices of thousands of Swedish children raised by either adoptive or biological parents to compare the relative effects of nature and nurture on the entrepreneurial impulse.

Adopted children, they found, were 20% more likely to become entrepreneurs if their biological parents were also entrepreneurs. But if it was their adoptive parents who were entrepreneurs, it was 45% more likely children would follow suit.

“The importance of adoptive parents is twice as large as the influence of biological parents,” wrote authors Joeri Sol and Mirjam Van Praag of the University of Amsterdam, and Matthew Lindquist of Stockholm University.

The authors controlled for the possibility that kids might just be inheriting the family business (or money to start a new business) and continued to find the same effect—which suggests that kids were simply seeing their parents as role models. That would also explain why gender had a big impact on children: Daughters in the study were most likely to become entrepreneurs if their mothers were—and sons if their fathers were.

These findings may also have implications for educators and policymakers who care about growing small businesses. The greater the effect of nurture on career choices, the authors wrote, “the larger the potential benefit of programs aimed at fostering entrepreneurship.”

The biggest takeaway for parents? If you want your kids to become start-up success stories, you should first try to become one yourself.

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