Current Events in June 2017

Back in February, popular grocery retailer ALDI announced that it would be investing $1.6 billion to remodel and expand over 1,300 of its U.S. stores by 2020. But now, the company is looking to triple down on that promise.

On Monday, the company announced that it would be investing an additional $3.6 billion, this time to expand to 2,500 stores across the U.S. by 2022. The move would make ALDI the third-largest grocery store in the U.S.

“In a turbulent retail environment, ALDI is bucking the trend plaguing many retailers by accelerating its growth of new stores with a total capital investment of $5 billion in new and remodeled stores over the next five years,” the company said in a statement, adding that the expansion will add 25,000 new store, warehouse, and office jobs.

Competition heating up

ALDI’s announcement comes at a time when one of its fiercest European competitors is set to make a splash in U.S. markets. Bloomberg reports that European discount supermarket chain Lidl will be opening its first U.S. stores this week, with plans to add up to another 100 locations by next summer.

The timing couldn’t be better for either brand. Although competition is fierce among U.S. grocery retailers like Walmart, Trader Joe’s, and Kroger Co., experts say that the market will likely see a boom in the coming years.

Ken Knudson, a partner at consulting firm Bain & Co., predicts that the “deep discount” grocery market will grow 10% annually through 2020, compared to only 2% at traditional stores. “There’s a tremendous amount of value at stake that will shift to Lidl and Aldi…Traditional grocers can’t afford to lose sales right now given how competitive it is – it will be very disruptive,” he said of the brands' expansion efforts.

All of this competition will likely continue to benefit consumers too. Experts note that food prices have already been dropping for 17 straight months due to increasing competition, the longest stretch in over 60 years. The emergence of ALDI and Lidl just might keep that streak going. 

‘Sit’ and ‘stay’ are typically among the first tricks to be added to a dog’s repertoire, but our canine companions are often eager to teach us how to do just the opposite. A pup’s prescription for a happier day? Get out and get active.

Embarking on even a brief jaunt with Fido may add years to your life, a new study suggests. Researchers say older adults who regularly walk at a moderate pace with their dog may be poised to live longer.

Dog-owning seniors walked an average of 22 minutes and 2,760 steps more than seniors without a dog, a recent study found. Those extra minutes may be enough to meet recommendations for physical activity set forth by the World Health Organization (WHO).

Dog owners less sedentary

"For good health WHO recommends at least 150 minutes of moderate to vigorous physical activity a week,” said lead researcher Dr. Philippa Dall. “Over the course of a week this additional 20 minutes walking each day may in itself be sufficient to meet these guidelines.”

To find out whether dog ownership had the potential to improve the health of older adults, researchers monitored the activity levels of 86 adults aged 65 and older. Half of the participants were dog owners, the other half were not.

The findings represented “a meaningful improvement in physical activity achieved through dog walking,” said Dall.

"This study indicates that dog ownership may play an important role in walking among older adults,” said the study’s co-author, Nancy Gee. “We found an objective method to monitor activity worked very well and recommend that future research in this field also include dog ownership and dog walking as important variables to consider."

Better quality of life

Dogs might help motivate seniors to be more active, the researchers concluded, which could in turn reduce the risk of heart disease, stroke, cancers, and depression. 

"Ultimately, our research will provide insights into how pet ownership may help older people achieve higher levels of physical activity or maintain their physical activity levels for a longer period of time, which could improve their prospects for a better quality of life, improved or maintained cognition, and perhaps, even overall longevity," Gee said.

The study is published in the journal BMC Public Health.

Maid-Rite Specialty Foods of Dunmore, Pa., is recalling approximately 174,000 pounds of various beef products containing milk, an allergen not declared on the label.

There have been no confirmed reports of adverse reactions due to consumption of these products.

The following raw and ready-to-eat beef items, produced between March 13, 2017, and May 26, 2017, are being recalled:

• 30-lb. bulk boxes of “FULLY COOKED BEEF BURGERS,” with case code 83353-52980 and lot numbers 04/04/17, 04/06/17, 04/07/17, 04/10/17, 04/18/17, 04/24/17, 04/25/17, 05/04/17, 05/08/17, 05/15/17 and 05/16/17.
• 30-lb. bulk boxes of “FULLY COOKED BEEF BURGERS,” with case code 83353-52981 and lot numbers 03/31/17 and 05/08/17.
• 30-lb. bulk boxes of “FULLY COOKED BEEF BURGERS,” with case code 83353-52982 and lot numbers 03/31/17, and 05/08/17.
• 10-lb. bulk boxes of “FULLY COOKED AND CHARBROILED SALISBURY STEAK,” with case code 48339-44914 and lot numbers 03/31/17 and 05/08/17.
• 10-lb. bulk boxes of “OUR HOMESTYLE BIG-N-BEEFY PATTIES,” with case code 70804-35001 and lot numbers 03/20/17 and 04/19/17.
• 10-lb. bulk boxes of “OUR HOMESTYLE BIG-N-BEEFY PATTIES,” with case code 70804-35005 03/20/17, 03/31/17, 04/19/17, 05/02/17, 05/05/17, and 05/19/17.
• 30-lb. bulk boxes of “FULLY COOKED BEEF MEATBALLS,” with case code 75156-33530with lot codes 03/13/17 and 04/28/17.
• 10-lb. bulk boxes of “FULLY COOKED BEEF STEAKETTE FOR SALISBURY,” with case code 75156-34914 and lot number 04/27/17.
• 10-lb. bulk boxes of “FULLY COOKED AND CHARBROILED SALISBURY STEAK,” with case code 48339-44913 and lot numbers 03/16/17, 03/28/17, 04/18/17, 05/08/17, and 05/17/17.

The recalled products, bearing establishment number “EST. 77” or “EST. 118” inside the USDA mark of inspection, were shipped to institutional locations throughout the U.S. and Canada.

What to do

Customers who purchased the recalled products should not consume them, but throw them away or returned them to the place of purchase.

Consumers with questions about the recall may contact Kurt Sorensen or Deb Weber at (570) 343-4748. 

Hyundai Motor America is recalling 17,160 model year 2017 Santa Fe Sport vehicles.

The bolt for the driver's seat belt anchor might not have been sufficiently tightened during assembly.

If the bolt was not sufficiently tightened, driver's seat belt may come unanchored in a collision, increasing the risk of injury to the occupant.

What to do

Hyundai will notify owners and dealers will verify that the driver's seat belt anchor is properly secured, free of charge. The recall is expected to begin June 30, 2017.

Owner's may contact Hyundai customer service at 1-800-633-5151. Hyundai's number for the recall is 165.

The drop in home sales in recent months has been explained by a lack of inventory. If there are fewer houses for sales, it stands to reason that fewer houses are going to be sold.

But real estate marketplace Zillow reports there may be another reason. Houses are simply not as affordable as they once were, especially in the nation's largest housing markets.

Zillow looked at the top 35 housing markets and discovered that to buy a median-valued home in more than half of them will require a bigger chunk of a homeowner's paycheck than in the past. In addition, the larger down payment that come with a more expensive purchase is also proving to be a roadblock for many would-be buyers.

This is not a situation that exists everywhere. Nationwide, Zillow reports the median-priced home for sales only requires 20% of the median income.

Down payment a top concern

"Homes have gotten so expensive in many major cities that even with low mortgage rates, monthly costs for homes that are currently for sale are starting to be unaffordable," said Zillow Chief Economist Dr. Svenja Gudell. "Down payments are a top concern for today's homebuyers, but the reality is that monthly costs are becoming unaffordable as well.”

The falling inventory of homes, a reason for lower sales, is also contributing to higher home prices. It's a simple matter of supply and demand. With a smaller supply of homes, sellers can ask for more, and if they are in a desirable housing market, usually get it.

The Zillow analysis found that the Los Angeles housing market requires the largest share of income to make the monthly mortgage payment on a median-priced home. The typical LA area home requires 46.8% of the median income for the area. That's up from 35.2% before the housing bubble.

Cleveland is even more affordable than before

At the other end of the scale, the median-priced home in the Cleveland area is very affordable. The median list price of $144,000 requires only 12.7% of the median income to make the payments. Before the housing crash, Cleveland homeowners were paying 20% of their income to pay for the typical home.

Zillow also reports nationwide, valuations seem to have gotten out of whack. The nationwide median home value is $197,000. Yet when you single out all the homes for sale, the median asking price is nearly $247,000.

This situation exists at a time when mortgage rates are historically low. After rising above the 4% mark early in the year, the average rate on a 30-year fixed-rate mortgage has fallen below 4% again. The affordability issue would likely be much worse if mortgage rates were to approach 6%, where they were during much of the housing bubble.

If you're looking for a different kind of vacation this summer, and would like to avoid the nation's increasingly busy airports, Amtrak is promoting the romance of riding the rails.

The passenger rail line says it has trains going to more than 500 destinations in all regions of the country, each with something unique to offer this summer. Instead of flying or driving, travelers go from train to train. Getting to the destination can be more enjoyable because you have plenty of room to walk around and surf the web, depending on internet availability.

In the Northeast, you can take the train to Washington, D.C.'s Union Station, which is something to see, in and of itself. In the nation's capital there are plenty of museums to see, where the admission is free.

The Smithsonian

The Smithsonian operates 11 museums and galleries on the National Mall and six other museums, along with the National Zoo, in greater Washington area. Across the Potomac you can visit Arlington National Cemetery and Mount Vernon, the home of George Washington.

Also along the Northeast, the train makes stops in Richmond, Va., Baltimore, Philadelphia, New York, and Boston. Each city has interesting attractions that will appeal to a wide variety of interests. (Warning: Track reconstruction has tied New York's Penn Station in knots and hours-long delays are common).

In Richmond, there are plenty of Civil War sites and nearby battlefields. In the city's oldest neighborhood St. John's Church still stands, famous for the venue of Patrick Henry's historic "give me liberty or give me death" speech.

There's a lot of see in Baltimore and a lot of ways to see it. The Inner Harbor is a tourist attraction with great seafood restaurants, an aquarium, and tour boat cruises.

Philadelphia has the Liberty Bell, New York has the Statue of Liberty, and Boston has the Freedom Trail, a historic walking tour.

Music in the Midwest

If you're starting in the Midwest, you can take the train to summer music festivals in Milwaukee, Chicago and St. Louis or explore the roots of jazz, rock and the blues, in Kansas City, Memphis or New Orleans.

In Milwaukee this summer, the music is free. Throughout the summer the city hosts outdoor concerts nearly every evening. The concerts feature a wide range of bands, with everything from popular local cover bands to classical ensembles.

Memphis also has plenty to see for rock music fans. You can tour Graceland, the lavish home of Elvis Presley, and go by Sun Records, where Elvis was discovered. There are also plenty of authentic blues joints on Beale Street.

On the West Coast, the summer schedule is filled with festivals, from San Diego, to Los Angeles, to Oxnard, Santa Barbara, and Gilroy, Calif. For old fashioned fun, the San Diego County Fair runs through July 3.

LA has a huge line-up of festivals this summer, and not surprisingly, many of them are film festivals. Eclectic radio station KCRW, which has a world-wide audience on the internet, sponsors the KCRW World Festival at the Hollywood Bowl June 25. The music line-up is just as diverse as the station's playlist.

The roses will be in bloom, along with rose festivals, all along the tracks, from Wasco, Calif., to Portland, Ore., this summer.

Seattle will host the annual Seafair Festival along Puget Sound, kicking things off June 14.

And you can get to all of them on the train. You can also bring the family pet along, as Amtrak welcomes dogs and cats up to 20 pounds for trips of up to seven hours on most routes. Check schedules for exceptions.  

While most of the nation was glued to the screen Thursday watching ex-FBI Director James Comey's testimony before a Senate panel, the House was passing a bill that would scrap much of the Dodd-Frank financial overhaul law, passed in 2010 in response to the financial crisis of 2008.

The measure, dubbed the Financial Choice Act, passed the House on a 233-186 vote but is given little chance of passing the Senate. Democrats unanimously opposed the measure, as did one lone Republican, Rep. Walter Jones (R-N.C.).

The bill would scrap many of the regulatory requirements imposed on banks and would subject new regulations to a cost-benefit analysis. It would also repeal rules that restrict banks from speculative trading.

Praised and denounced

Republicans spoke glowingly of the bill, with House Speaker Paul Ryan (R-Wis.) saying it "delivers the regulatory relief these small banks so desperately need."

Consumer groups were heated in their denuciations of the measure.

“Lawmakers who voted for this bill are granting Wall Street megabanks and predatory lenders a license to defraud ordinary Americans, and to put our economic security at risk for the narrow, short-term gains of a tiny elite," said Lisa Donner, executive director, Americans for Financial Reform. "Consumers, investors and anyone who felt the impact of the financial crisis and recession will want to fight to ensure that not just the whole bill, but the set of dangerous proposals it includes, die in the Senate.”

Alys Cohen, staff attorney at the National Consumer Law Center, dubbed it the Wrong Choice Act.

“The Financial Choice Act of 2017 is breathtaking in its assault on ordinary Americans, responsible companies who want a level playing field, and safeguards for the economy as a whole," she said.

“This Wrong Choice Act makes it easy for lawbreaking financial companies to deny people their day in court, for predatory lenders to put people into a debt trap, and for abusive financial enterprises of all types to go back to their reckless ways without a consumer watchdog looking out for ordinary people," Cohen said, calling the bill "a grab bag of gimmies for Wall Street and predatory lenders."

Yesterday's vote was largely symbolic, given the likelihood the measure will go nowhere in the Senate, but sponsors are likely to introduced some of its more notable provisions as separate bills later in the session. 

There are a lot of things to worry about if you own a car or truck. You worry about someone backing into it in the parking lot. You worry about something falling off the truck in front of you, cracking your windshield.

And depending on where you live, you might worry about someone stealing your car.

A new report from the National Insurance Crime Bureau (NICB) has ranked the metro areas where your car is most likely to be stolen. The list is top-heavy with smaller communities, but only because the ratings are figured on the number of incidents in relation to the population. New York City might have a lot of car thefts, but not when compared to the millions of people living in the metro area.

Topping the list of places where your car is most likely to be stolen is the Albuquerque, N.M. metro. It's followed by another smaller metro, Pueblo, Colo. You have to go all the way down to number eight on the list to find a major city – the San Francisco-Oakland metro.

The hot spots

Here are the top 10 “hot spots” for car theft in the U.S.:

1. Albuquerque, N.M.

2. Pueblo, Colo.

3. Bakersfield, Calif.

4. Modesto, Calif.

5. Riverside-San Bernardino-Ontario, Calif.

6. Anchorage, Alaska

7. Merced, Calif.

8. San Francisco-Oakland-Hayward, Calif.

9. Fresno, Calif.

10. Billings, Mont.

Thefts increasing each year

Meanwhile, vehicle theft appears to be getting worse. In its annual report, the FBI noted that car theft is up 6.6% year-over-year. It's the biggest annual increase since 2010, when it rose 7.2%.

Car thieves don't always target the newest and most expensive vehicles. Older Honda Accords, for example, are frequent targets, stripped down for their parts.

NCIB says there are things you can do to make your vehicle less likely to be stolen. The common sense steps including always taking your keys out of the ignition and always parking in a well-lit area.

Added protection

A second layer of protection might include a car alarm, a steering column collar and a lock on the steering wheel or brake pedal.

Unfortunately, as new cars have embraced technology, it has made them more vulnerable to theft.

"Vehicle theft is starting to shift because of advanced techniques introduced by the Connected Vehicle Thief," said Patrick Clancy, Vice-President of LoJack Law Enforcement, a division of the vehicle tracking and recovery company.

A tech-savvy car thief might not even have to take possession of the vehicle to get money out of it. Lojack says some car thieves are using ransomware to take over the car's computer system.

The software is able to disable functions like brakes or ignition, making the car undrivable until a ransom is paid.

It's the time of year when temperatures start spiking into the upper reaches in most of the country -- and it's a dangerous time for children, disabled people, pets, and others who are at risk of being locked in sweltering cars.

A bill introduced in Congress this week -- the Helping Overcome Trauma for Children Alone in Rear Seats Act (HOT CARS Act of 2017) -- would require cars to be equipped with a system that alerts the driver if a passenger remains in the back seat when the car is turned off. 

“Since 1990, nearly 800 children have died from heatstroke in vehicles,” said Rep. Jan Schakowsky (D-Ill.). “My colleagues Rep. Tim Ryan (D-Ohio), Rep. Peter King (R-N.Y.) and I are introducing the HOT CARS Act today in hopes of bringing that number down to zero. "Even the most attentive parent can get distracted and forget a child in the back seat of their car."

Rep. Ryan said cars already alert drivers "when they leave their keys in the car, their lights on, or their trunk open – none of which are life threatening."

"Cars are mandated to have seat belts, interior trunk-releases, and rear backup cameras. Our legislation would move us one step closer to getting this inexpensive technology in every car on the road to help save the lives of children nationwide,” Ryan said.

The bipartisan measure is being supported by more than 20 public health, consumer, and safety organizations. Its introduction coincides with the kickoff of the National Vehicular Heatstroke Prevention Campaign by the National Highway Traffic Safety Administration (NHTSA). 

The long-awaited acquisition deal of Yahoo by Verizon finally reached a conclusion on Thursday after Yahoo shareholders approved the sale of the business. That means on Tuesday, Yahoo will officially become Altaba, which will take the cash from the sale and Yahoo’s holdings in Yahoo Japan and Alibaba group.

Unfortunately, the closing of the deal isn’t going to be good news for everyone. TechCrunch reports that Verizon will cut around 15% of the staff from Yahoo and AOL after the merger closes, eliminating around 2,100 redundant jobs between the companies. The new combined entity, named Oath, will be headed by AOL CEO Tim Armstrong.

“Oath’s strategy is to lead the global brand space. With access to over 1 billion consumers upon close, we will be positioned to drive one of the most important platforms in the consumer brand space. Consistent with what we have said since the deal was announced, we will be aligning our global organization to the strategy,” said an AOL spokesperson.

Long road

Verizon’s acquisition of Yahoo faced many bumps in the road on its way to finality. An initial deal was struck between the companies last July for $4.8 billion, but the waters were muddied after news broke that Yahoo had experienced two large-scale data breaches affecting over 1.5 billion user accounts.

Verizon executives immediately backed off from the deal, saying that they needed more information about the breaches before the deal could continue. Rumors even circulated for some time that the company was seeking a $1 billion discount on its purchase.

Pressure from shareholders mounted for both companies, and eventually Verizon settled for a price cut of around $350 million and a promise that Yahoo would share responsibility for any legal ramifications connected to the breaches.  

After the vote on Thursday, the New York Times reports that Yahoo’s share price rose by $5.16, closing at $55.71. That’s at least some relief to the Yahoo employees who will lose their jobs in the transition, since it will increase the payouts they’ll earn on stock options.

For many people, getting exercise can be problematic because they can’t find the time to get enough of it. But there are some people who have the exact opposite problem – namely, that they exercise too much. It might not sound all that bad, but a recent study shows that excessive exercise comes with its own health risks.

A team of researchers have found that excessive exercise can cause intestinal injury, which could lead to exercise-induced gastrointestinal syndrome. Unfortunately, all consumers are at risk of acute or chronic health complications from this condition, regardless of their fitness level.

“As exercise intensity and duration increases, there is considerable evidence for increases in indices of intestinal injury, permeability and endotoxaemia, together with impairment of gastric emptying, slowing of small intestinal transit and malabsorption,” the researchers say.

Gut issues

In more basic terms, the study has linked excessive exercise with cell damage in the intestines. When this happens, the intestines become more porous and many pathogenic endotoxins that are usually confined to this area of the body can leech into the bloodstream, which can cause a variety of health problems.

The results of the study show that exercise stress of two hours or more at 60% VO2max – a measure of the maximum volume of oxygen that a consumer can use – was enough to cause symptoms of exercise-induced gastrointestinal syndrome. Exercising in hot ambient temperatures also seemed to exacerbate symptoms more quickly, and the researchers say that consumers with pre-existing gastrointestinal issues may be at greater risk than the average person.

“It is recommended that a full gut assessment during exercise should be undertaken by individuals with symptoms of gut disturbances during exercise, to ascertain what is causing the issue and to develop individually tailored management strategies,” said lead author Dr. Ricardo Costa.

While the study provides important insights on this health issue, Costa and his colleagues believe that further research is needed to validate their findings.

The full study has been published in Alimentary Pharmacology & Therapeutics. 

The Consumer Financial Protection Bureau (CFPB) is urging retailers to clear up some confusion surrounding store credit card promotions.

Specifically, the agency called for more transparency when retailers make promotional offers like “no interest for 90 days,” which is essentially a “deferred interest” promotion. The consumer who makes a purchase with the store's card pays no interest if they pay off the entire balance within the set time limit, such as 90 days.

But if they fail to pay off the entire balance in the prescribed time period, they are then charged the full interest on the purchase, which can blindside consumers who didn't understand the terms of the promotion.

Letters to retailers

The CFPB has fired off letters to major retailers asking them to consider more transparent promotions, like 0% interest during the introductory period. A number of credit card issuers take that approach, not charging interest for the first 12 to 21 months the account is open, if certain conditions are met, such as making a purchase during the first 60 days.

“With its back-end pricing, deferred interest can make the potential costs to consumers more confusing and less transparent,” said CFPB Director Richard Cordray. “We encourage companies to consider more straightforward credit promotions that are less risky for consumers.”

CFPB says one major retailer recently took that step, announcing it will drop its deferred-interest promotions in favor of a promotional period with 0% interest, much like the credit card companies offer. With that approach, consumers don't get hit with unexpected interest charges if they haven't paid off the balance by the time the promotional period ends.

How to tell the difference

How can you tell a deferred-interest promotion from a 0% interest one? CFPB cautions consumers to look for the word “if.” When an offer says “No interest if paid in full in 12 months,” that's a deferred-interest pitch. Escaping interest charges is fully conditional upon paying off the balance in the allotted time.

On the other hand, 0% interest offers say something like “0% intro APR on purchases for 12 months.” That means you are only on the hook for interest charges for the amount of the unpaid balance at the end of 12 months. It's a much better deal.

The problem is that consumers often confuse the two types of offers because they sound similar. The CFPB says the number of purchases using deferred-interest promotions jumped 21% between 2010 and 2013.

For consumers making a major purchase at a retailer whose store card only offers a deferred-interest promotion, consider this option: apply for a credit card, such as the Citi Diamond Preferred, that offers a lengthy introductory period at 0% interest, and purchase with that card instead.

Hyundai Motor America is recalling 161,074 model year 2015-2016 Sonata and Genesis vehicles.

The warning light to indicate that the parking brake is applied may intermittently not illuminate in the dash due to corrosion in the switch.

If the parking brake indicator is not illuminated when the parking brake is applied, the driver may operate the vehicle with the parking brake partially engaged, affecting the brake performance and increasing the risk of a crash.

What to do

Hyundai will notify owners, and dealers will replace the parking brake switch, free of charge. The recall is expected to begin on June 30, 2017.

Owners may contact Hyundai customer service at 1-855-671-3059. Hyundai's number for this recall is 164.

Toyota Motor Engineering & Manufacturing is recalling 31,824 model year 2016-2017 Tacomas equipped with a six-cylinder engine.

The vehicles have a crank position sensor that may malfunction, potentially resulting in an engine stall that may increase the risk of a crash.

What to do

Toyota will notify owners, and dealers will replace the crank position sensor with an improved design, free of charge. The recall is expected to begin July 17, 2017.

Owners may contact Toyota customer service at 1-800-331-4331. Toyota's number for this recall is H0H.

Despite numerous attempts to kill it, the so-called Fiduciary Rule goes into effect tomorrow. The Labor Department rule requires financial advisors to put their clients' financial interests ahead of their own and it is causing quite a stir among broker-dealers and the "advisors" who interact directly with clients.

Firms large and small have been taking a careful look at their portfolios and weeding out mutual funds, exchange traded funds, closed end funds, annuities, and other products that charge high fees, produce lousy returns, or otherwise perform poorly for the client, even though they may produce juicy commissions for the advisors who sell them.

To put it even more plainly, the rule requires financial advisors to actually act like advisors, not salesmen out to earn the highest possible commision. It is intended to protect workers' retirement savings from being cannibalized by high fees and shady sales practices.

AARP has strongly supported the rule, calling it critical for retirement savers. It says some advisors already adhere to a "fiduciary standard," but the standard only requires brokers to make sure recommendations to clients are "suitable," a weaker benchmark than the Fiduciary Rule.

AARP estimates conflicted advice lowers investors returns as much as a percentable point a year, a loss of $17 billion a year just for investors with individual retirement accounts (IRA).

Ameriprise trims its line-up

The latest to slash its product offerings is Ameriprise Financial Services. which earlier this week sent its brokers a list of 1,500 funds that it is cutting from its line-up, InvestmentNews reported. 

"We are further enhancing our robust due diligence standards to ensure our clients and advisers continue to have access to a broad, quality investment portfolio to achieve their goals," Ameriprise spokeswoman Kathleen McClung said in an email to InvestmentNews. "We continue to offer thousands of funds from hundreds of firms."

Ameriprise will still have more than 2,000 funds for clients to choose from. In practice, of course, most clients rely on their advisors to help them find the "best" funds. Now that the Fiduciary Rule is taking effect, advisors must find funds that are best for the client, not for themselves. 

Oddly enough, most small investors, and even many larger ones, have no idea how much they are paying in fees for their mutual funds and other products. There are at least two fees for most financial products -- the fee charged by the firm that manages the fund and the fee charged by the broker-dealer (Ameriprise, for example). 

Most fees are in the single digits but even so, with most investments these days straining to return 4 or 5 percent, a 3 percent fee package eats up most of the growth. That's one reason investors are increasingly turning to exchange-traded funds, which are minimally managed and therefore charge less.

Younger investors are increasingly turning to "robo-advisors," automated funds that cut out the human broker. TIAA became the latest to roll out an automated investment service earlier this week with its new Personal Portfolio that can be easily managed from a smartphone or laptop.

Besides Ameriprise, UBS Wealth Management Americas and Wells Fargo Advisors have recently changed compensation structures or changed their fund line-ups to comply with the new rule. 

A narrow escape

The Trump Administration and Congressional GOP factions tried to kill the rule earlier this year but finally relented and allowed it to go into effect, although the Labor Department will not be actively enforcing it until next year.

Economist Ben Zipperer of the Economic Policy Institute was among those who argued in favor of the measure, saying that people in the financial services industry are doing quite well, while most workers’ wages have been largely stagnant for 35 years.

“It’s long past the time for a common sense rule that requires the financial services industry not to rip off America’s working people who are saving for retirement,” he said.

Consumers will no longer be able to take advantage of unlimited cloud storage plans under Amazon Drive.

Now, instead of paying around $60 per year to store as much data as they want, users will have a choice between two plan tiers: a 100 GB plan for $11.99 per year or a 1 TB plan for $59.99 per year. Additional data storage space can be purchased up to a cap of 30 TB for an additional $59.99 per terabyte.

“Amazon is now providing options for customers to choose the storage plan that is right for them,” the company said in its announcement.

Plan changes

The change will be rolled out starting today, June 8, but customers who have not yet reached the expiration date on their current unlimited service plan won’t be forced to switch until their subscription runs out.

However, when that expiration date does arrive, customers who have the auto-renew subscription enabled and 1 TB or less of data will be renewed into the 1 TB plan for $59.99 per year. Those who don’t have auto-renew enabled, or who have more than 1 TB of data stored, will need to go to their account’s “Manage Storage page” to select one of the new plans.

Users will have a 180-day grace period to delete or bring their total content within the free quota if they choose not to renew into one of the new storage plans. But after that period, the company says that content over that limit will be deleted, starting with the most recent uploads first.

Amazon Prime members will still have access to unlimited photo storage as a part of their membership, and the company is offering 5 GB of additional storage for non-photo content like videos and documents. However, if the amount of non-photo content exceeds 5 GB, then Amazon will delete the most recent content until users are under their data limit.

Consumers shouldn't be too surprised by Amazon’s decision to eliminate unlimited data storage. The service was initially launched back in 2015 in an effort to compete with the likes of other services like Google Drive and Dropbox, but the creation of the two-tier system will undoubtedly be more lucrative in the long-run.

Consumers who want to learn more about the change and their options can do so by visiting Amazon’s FAQ section here.