<ul class="summary-list"><li>Dr. Victoria Regan said parents should consult a medical professional before switching formulas.</li><li>She said the change might be simpler than parents think.</li></ul><p style="font-weight: 400;">If caring for a new baby isn't stressful enough, many parents across the US are having to deal with even more <a href="https://www.insider.com/baby-formula-shortage-parents-searching-products-2022-05">anxiety</a> because of a <a href="https://www.businessinsider.com/baby-infant-formula-shortages-got-even-worse-in-april-2022-5">formula shortage</a>.</p><p style="font-weight: 400;">After tracking inventory at more than 11,000 stores, retail analysts at <a href="https://datasembly.com/news/out-of-stock-rate-in-april-2022/">Datasembly</a> found that 40% of the nation's best-selling formula products were out of stock as of the week ending April 24. </p><p style="font-weight: 400;">Ben Reich, the data company's CEO, told "<a href="https://www.cbsnews.com/news/baby-formula-shortage-worse-ration-limit-purchase-walgreens-target-cvs-national-crisis/">CBS MoneyWatch"</a> last week that "this is a shocking number that you don't see for other categories."</p><p style="font-weight: 400;">The deficit has forced parents to scramble to buy enough formula to feed their <keyword id="12011531" type="UNKNOWN" weightage="60" keywordseo="babies" source="Orion">babies</keyword> since the demand for the product outweighs the supply.</p><p style="font-weight: 400;"><a href="https://memorialhermann.org/doctors/pediatricians/dr-victoria-regan-md-1457392672">Dr. Victoria Regan, </a>a pediatrician at Children's Memorial Hermann Hospital in Texas, told Insider that the problem had been caused by supply-chain issues during the pandemic coupled with the recall of three major formula brands earlier this year.</p><p style="font-weight: 400;">"COVID-19 was the initial trigger since it didn't allow production to be at 100%," she said, adding that the issue was "exacerbated" by the recall earlier this year of products made by a leading supplier, Abbott <keyword id="11894571" type="UNKNOWN" weightage="60" keywordseo="health" source="Orion">Health</keyword>.</p><p style="font-weight: 400;">The firm recalled select batches of its Similac, Alimentum, and Elecare formulas after they were linked to bacterial infections in babies. The Food and Drug Administration said that tainted formula "may have contributed to death in two patients."</p><p style="font-weight: 400;">But the doctor believes that concerned parents struggling to locate formula for their children can navigate their way through the <keyword id="12019080" type="UNKNOWN" weightage="60" keywordseo="shortage" source="Orion">shortage</keyword>.</p><p style="font-weight: 400;">"Our first recommendation is to call your baby's healthcare provider, usually their pediatrician, to find out which formulas may work for your baby that are more readily available," Regan said, adding that some doctors' offices offer free samples that infants can try.</p><div type="image" title="Parenting influencer Kristin Davis took this picture of empty shelves of baby formula at a Target in Brooklyn." height="480" width="640" msid="91474930" hostid="261"></div><h2>Parents can switch their babies' formula</h2><p style="font-weight: 400;">Regan said that switching to an equivalent brand of formula might not be quite as challenging as parents think.</p><p style="font-weight: 400;">"Babies can sometimes be a bit picky when you change the formula but, usually, if you give it a few days, they get used to the taste," Regan said.</p><p style="font-weight: 400;">The transition can be more complex for babies with special dietary needs, she said. "In those cases, you really do need to contact your healthcare provider before you try anything different," Regan said.</p><p style="font-weight: 400;">The doctor sounded a note of caution for parents looking overseas to purchase formulas made in other countries. She said that certain brands being shipped to the US from Europe have become popular.</p><p style="font-weight: 400;">These formulas are not reviewed by the FDA — a safety requirement for all <keyword id="11956953" type="UNKNOWN" weightage="60" keywordseo="baby-formula" source="Orion">baby formula</keyword> sold in America — and run the risk of possible contamination.</p><p style="font-weight: 400;">"The problem at this stage is that we're not always 100% sure where they're being imported from and whether they're manufactured at a plant that is secure," Regan said.</p><h2>Never water down formula to make it last longer</h2><p style="font-weight: 400;">Similarly, the doctor warned against parents attempting to make their own formula by following recipes on the internet or watering down the supply they already have in order to make it last longer, because "the baby is not getting the right nutrients," Regan said.</p><p style="font-weight: 400;">In some cases, the consequences can be serious. "You can cause the baby to have a seizure because they're not getting the vitamins they need to be normal," she said.</p><p style="font-weight: 400;">The temptation to replace hard-won formula with cow or goat milk or nut milks should also be resisted before the baby reaches the age of 1.</p><p style="font-weight: 400;">"They should really not be drinking any kind of nonhuman milk," Regan explained. "If they're not getting milk from either mom or a reputable breast-milk supplier, the essential nutrients are lacking, affecting both physical and neurodevelopment."</p><div type="image" title="A sign attached to nearly bare shelves at drugstore chain CVS says customers are limited to three containers at a time." height="2274" width="3024" msid="91474931" hostid="261"></div><p style="font-weight: 400;">Some parents have been tempted to hoard formula if they happen to come across a large supply in a store, but Regan advised them to hold back. "We need to ensure that all our babies get the proper nutrition they need."</p><p style="font-weight: 400;"><a href="https://www.businessinsider.com/target-walgreens-kroger-cvs-limiting-baby-formula-purchases-2022-4">Big chains</a> like Walgreens, CVS, and Target took steps to address hoarding last month. The drugstores are limiting purchases of formula to three products at a time; Target is allowing three to four formula products to be purchased in stores and online per transaction.</p><p style="font-weight: 400;">As for the future, Regan is cautiously optimistic that an end to the shortage is in sight. It might take "a few months," she said. "But as long as the supply-chain issues are resolved, availability should be back to full effect."</p>

Pediatrician shares tips for parents affected by the formula shortage — including never to make your own formula at home or water down formula to last longer

<ul class="summary-list"><li>A new study found that <keyword id="1160985" type="PERSON" weightage="60" keywordseo="Black-women">Black women</keyword> are three times likelier than <keyword id="932977" type="ORGANIZATION" weightage="60" keywordseo="White-men">white men</keyword> to die from COVID-19.</li><li>The findings underscore systemic inequalities that make people of color more vulnerable to COVID-19.</li><li>Data released last year showed Black people were also twice as likely as white people to contract the virus. </li></ul><p>New research suggests Black women are dying from the <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> at higher rates than any other demographic in the US, except Black men. </p><p>A team of university researchers from schools all around the country published an <a href="https://scholar.harvard.edu/files/srichard/files/11606_2021_6699_onlinepdf.pdf">analysis</a> earlier this week that found Black women are more than three times likelier to die from COVID-19 than white men. </p><p>The study, published in the Journal of Internal Medicine, examined mortality patterns in Georgia and Michigan. Researchers sorted their findings by race and gender. </p><p>"The deaths we see in the pandemic reflect pre-existing structural inequities; after the pandemic is gone, those will still be there," Heather Shattuck-Heidorn, assistant professor of gender and women studies at the University of Maine and the study's senior author, said in an interview on CBS MoneyWatch. </p><p>"Whatever is going on is probably not linked to the X chromosome or the Y chromosome," Shattuck-Heidorn added.</p><p>The coronavirus pandemic has been particularly hard on Black people, studies show. </p><p>An analysis published November in the <a href="https://www.thelancet.com/journals/eclinm/article/PIIS2589-5370(20)30374-6/fulltext">journal EClinical Medicine</a>, for example, found that Black people in both the US and the UK were <a href="https://www.businessinsider.com/black-asian-people-twice-as-likely-to-get-covid-study-2020-11">twice as likely as white people</a> to contract the coronavirus. </p><p>The findings underscore systemic inequalities that make people of color more vulnerable to COVID-19 and more likely to experience serious illness if they do get sick.</p><p>"The clear evidence of increased risk of infection amongst ethnic minority groups is of urgent public <keyword id="6354750" type="UNKNOWN" weightage="60" keywordseo="health">health</keyword> importance," Dr. Shirley Sze, National Institute for Health Research (NIHR) academic clinical lecturer and a lead author of the paper, said. </p><p>"We must work to minimize exposure to the virus in these at-risk groups by facilitating their timely access to healthcare resources and target the social and structural disparities that contribute to health inequalities," Sze continued.</p><p>And unemployment data consistently shows that Black women are among the hardest hit by the economic uncertainties brought on by the pandemic. </p><p>According to <a href="https://docs.google.com/document/d/19UkIM_LtTUj02El9Hw7U03-ybv0sCGUNTYGdnrHz7FU/edit">data</a> from Facebook COO Sheryl Sandberg's nonprofit, <a href="https://leanin.org/">Lean In</a>, a survey from last year of more than 2,600 people found that Black women are <a href="https://www.businessinsider.com/black-women-hurt-by-coronavirus-pandemic-survey-lean-in-data-2020-4">twice as likely as white men</a> to say that they'd either been laid off, furloughed, or had their hours or pay reduced because of the coronavirus pandemic.</p><p><em>Insider's <a href="https://www.businessinsider.com/author/anna-medaris-miller">Anna Medaris Miller</a>, <a href="https://www.businessinsider.com/author/marguerite-ward">Marguerite Ward</a>, and <a href="https://www.businessinsider.com/author/tyler-sonnemaker">Tyler Sonnemaker</a> contributed to this report.</em></p><p><em>Have a <keyword id="6355005" type="UNKNOWN" weightage="60" keywordseo="news">news</keyword> tip? Reach this reporter at ydzhanova@insider.com</em></p>

A new study found that Black women are 3 times more likely to die from COVID-19 when compared to white men

<h2></h2><ul class="summary-list"><li><keyword id="13620858" type="UNKNOWN" weightage="60" keywordseo="mask-requirements" source="Orion">Mask requirements</keyword> on planes became a commonality across the globe after the onset of the COVID-19 pandemic.</li><li>On Monday, a Florida federal judge struck down Biden's mask rule, and most US carriers have now made them optional.</li></ul><p>Shortly after the onset of the coronavirus pandemic, mask-wearing became the new reality for most people across the globe. For nearly two years, most everyday activities, like dining out and grocery shopping, required <keyword id="11917128" type="UNKNOWN" weightage="60" keywordseo="masks" source="Orion">masks</keyword>, even for those that are fully vaccinated.</p><p>However, the past few months have shown a decline in COVID cases, and many places around the world are dropping the <keyword id="11906064" type="UNKNOWN" weightage="60" keywordseo="mask-mandate" source="Orion">mask mandate</keyword> altogether. Despite the relaxed policies, many countries, like France and Germany, still require face coverings to be worn on public <keyword id="11894924" type="UNKNOWN" weightage="100" keywordseo="transportation" source="Orion">transportation</keyword>, including on aircraft and in airports, <a href="https://worldpopulationreview.com/country-rankings/countries-with-mask-mandates">according to data provider World Population Reviews.</a></p><p>Because of the mandate, <keyword id="11898285" type="UNKNOWN" weightage="60" keywordseo="airlines" source="Orion">airlines</keyword> have had to comply with and enforce mask rules. While a lot of people embraced the new norm, many did not take it in stride, leading to a stark uptick in unruly passenger cases, particularly in the US.</p><p>In 2021, <a href="https://www.faa.gov/data_research/passengers_cargo/unruly_passengers/">over 4,0000 mask-related reports were made to the Federal Aviation Administration</a>, with offenders seeing <a href="https://www.businessinsider.com/faa-proposes-record-fines-for-two-unruly-airplane-passengers-2022-4">fines of up to $82,000, facing criminal charges, or both.</a></p><p>The mask mandate on public transportation was implemented in January 2021 by President Joe Biden and the policy was set to expire on March 18 but was extended to April 18, and then again to May 3, frustrating travelers and surprising some analysts.</p><p>Henry Harteveldt, <keyword id="11896628" type="UNKNOWN" weightage="60" keywordseo="travel" source="Orion">travel</keyword> analyst and president of Atmosphere Research Group, told Insider in March that he is concerned about the "uneven set of policies" that makes "airlines and airports look like the bad guys."</p><p>As COVID continued to recede and countries ended mask requirements over the previous months, <a href="https://www.businessinsider.com/airline-executives-ask-biden-to-drop-mask-mandate-on-planes-2022-3">some executives called on the Biden Administration to end the federal mandate in the US</a>.</p><p>"It makes no sense that people are still required to wear masks on airplanes, yet are allowed to congregate in crowded restaurants, schools, and at sporting events without masks, despite none of these venues having the protective air filtration system that aircraft do," executives from the US' largest carriers said in a March 23 <a href="https://news.delta.com/sites/default/files/2022-03/a4a_board_letter_to_president_biden.pdf">letter</a> to Biden.</p><p>However, on Monday, <a href="https://www.businessinsider.com/trump-appointed-judge-strikes-down-mask-mandate-on-public-transit-2022-4?utmSource=twitter&amp;utmContent=referral&amp;utmTerm=topbar&amp;referrer=twitter">a Florida federal judge struck down the Administration's mandate</a>. Soon after, the TSA said it would no longer enforce mask-wearing on planes or other public transportation but noted the "CDC recommends that people continue to wear masks in indoor public transportation settings." </p><p>With the mandate now expired, several US airlines are joining a handful of European carriers by dropping the rule on aircraft. However, some British carriers have been facing staffing shortages as a result of the nixed mask policy, forcing them to cancel hundreds of flights.</p><p><a href="https://www.cbsnews.com/amp/news/airlines-face-mask-covid-rules-flights-canceled/#app">According to data provided from Cirium to CBS MoneyWatch</a>, EasyJet canceled 202 flights departing the UK between March 28 and April 3, compared to zero canceled during the same period in 2019. Meanwhile, BA canceled 393.</p><p>An EasyJet spokesperson told CBS that "higher than usual staff sickness levels" contributed to the increase in cancellations. However, a BA spokesperson said only a small number of canceled flights were COVID-related.</p><p>"There is risk we may see some of that in North America and it's all dependent on case rates," Rob Morris, head of airline analytics company Ascend by Cirium, said. "But it will be relatively short-term because airlines will adjust their capacity to manage demand and protect their network integrity."</p><p>Here are the US and European airlines that no longer require masks on aircraft.</p><h2>United Airlines</h2><div type="image" title="United 737 MAX 9." height="722" width="962" msid="90941341" hostid="261"></div><p>United said in an April 18 email to Insider that "masks are no longer required at United on domestic flights, select international flights (dependent upon the arrival country's mask requirements) or at US airports."</p><h2>Delta Air Lines</h2><div type="image" title="Delta Air Lines aircraft." height="664" width="886" msid="90941342" hostid="261"></div><p>Delta <a href="https://news.delta.com/masks-now-optional-employees-customers-following-white-house-announcement">updated</a> its mask policy on April 18 saying "masks are optional for all airport employees, crew members, and customers inside US airports and onboard all aircraft domestically, as well as on most international flights."</p><h2>American Airlines</h2><div type="image" title="American CRJ700." height="724" width="965" msid="90941343" hostid="261"></div><p>American also <a href="https://news.aa.com/news/news-details/2022/Update-on-Federal-Mask-Mandate-OPS-OTH-04/default.aspx#:~:text=In%20accordance%20with%20the%20Transportation,airports%20and%20on%20domestic%20flights.">dropped</a> the rule on Monday, saying passengers and staff will no longer be required to wear masks at the airline's airport or on domestic flights.<a href="https://amp.cnn.com/cnn/2022/04/18/business/airlines-masks/index.html"></a></p><p>"Please note face masks may still be required based on local ordinances, or when traveling to/from certain international locations based on country requirements," the airline said.</p><h2>Alaska Airlines</h2><div type="image" title="Alaska Airlines." height="724" width="965" msid="90941345" hostid="261"></div><p>Alaska is also making masks optional, but said those banned earlier for mask-related events would continue to be prohibited from flying on the carrier, <a href="https://amp.cnn.com/cnn/2022/04/18/business/airlines-masks/index.html">CNN reported</a>.</p><h2>Southwest Airlines</h2><div type="image" title="View from the wing of a Southwest Airlines Boeing 737 Max 8 aircraft on the tarmac." height="1295" width="1727" msid="90941346" hostid="261"></div><p>Southwest announced on its <a href="https://www.swamedia.com/releases/release-defa17af4847d18adaea0814f8289cf1-reactive-media-statement-federal-face-mask-mandate-lifted">website</a> that masks are optional for employees and passengers, saying "we encourage individuals to make the best decision to support their personal wellbeing." However, the carrier said the policy is dropped for "some international locations."</p><h2>JetBlue Airways</h2><div type="image" title="JetBlue A320 aircraft." height="724" width="965" msid="90941347" hostid="261"></div><p>JetBlue <a href="https://twitter.com/jetblue/status/1516225950249324544?s=21&amp;t=fSK1loE9xGiidD4-lERI6g">tweeted</a> on Monday that masks are no longer required on board, but said "while no longer required, customers and crewmembers may continue wearing masks in our terminals and onboard our aircraft."</p><h2>Frontier Airlines</h2><div type="image" title="Frontier Airlines" height="710" width="946" msid="90941348" hostid="261"></div><p>Frontier said that it was dropping the policy following the TSA's announcement, but reminded passengers that "individual airports and municipalities may still require masks so customers and team members should continue to abide by mask rules within any facility that may require it."</p><h2>Spirit Airlines</h2><div type="image" title="Spirit Airlines aircraft" height="768" width="1024" msid="90941349" hostid="261"></div><p>Masks are now optional on Spirit. "We understand some guests may want to continue wearing face coverings on flights, and that's perfectly fine under our optional policy," the airline said in a statement, <a href="https://amp.usatoday.com/amp/7362763001">USA Today</a> reported. "For our guests traveling internationally, please remember to check country-specific airport requirements before traveling."</p><h2>Hawaiian Airlines</h2><div type="image" title="Hawaiian Airlines Airbus A330 aircraft" height="724" width="965" msid="90941351" hostid="261"></div><p>Hawaiian <a href="https://twitter.com/HawaiianAir/status/1516242920759705602">tweeted</a> its new policy, making masks optional, but noted there are some origin or arrival airports that still require masks.</p><h2>Sun Country Airlines</h2><div type="image" title="Sun Country Airlines." height="2003" width="2671" msid="90941352" hostid="261"></div><p>Sun Country <a href="https://twitter.com/SunCountryAir/status/1516236124301275139">tweeted</a> on Monday that passengers and staff can wear masks if they choose. "We look forward to seeing your smiles on board &amp; encourage kindness &amp; respect for those who continue to mask," it said.</p><h2>Avelo Airlines</h2><div type="image" title="Avelo Airlines 737-700 at Tweed-New Haven Airport." height="664" width="886" msid="90941353" hostid="261"></div><p>In a <a href="https://twitter.com/AveloAir/status/1516243946950774786">tweet</a>, Avelo said masks are no longer required on board. "If you'd feel more comfortable still wearing yours ... go right ahead," the carrier said.</p><h2>Breeze Airways</h2><div type="image" title="Breeze Airways A220-300 aircraft." height="724" width="965" msid="90941354" hostid="261"></div><p>Breeze said on its <a href="https://www.flybreeze.com/support?a=COVID-19-Mask-Policy---id--y90fdvAiQEu8fjqIQbsIzQ">website</a> that masks are now optional on its flights. "Please be kind and respectful of individual choices, and remember that wearing a mask while flying on Breeze is still an option if you choose to do so," the company noted.</p><h2>British Airways</h2><div type="image" title="British Airways aircraft." height="3543" width="4724" msid="90851405" hostid="261"></div><p>Following the removal of the mask mandate in England and Wales, <a href="https://go.skimresources.com/?id=58287X1516333&amp;isjs=1&amp;jv=15.2.4-stackpath&amp;sref=https%3A%2F%2Fwww.travelandleisure.com%2Fairlines-airports%2Fthese-airlines-are-ditching-face-mask-rules&amp;url=https%3A%2F%2Fwww.britishairways.com%2Fen-us%2Finformation%2Fthe-ba-experience%2Fwelcome-onboard-faqs%23mask&amp;xs=1&amp;xtz=240&amp;xuuid=3509068591889a48ca94e76651d0eb71&amp;xjsf=other_click__contextmenu%20%5B2%5D">British Airways</a> updated its mask policy to be optional on flights where the destination does not require them. However, the airline still requires face coverings for places where the company has not been able to "clarify the local restrictions."</p><h2>EasyJet</h2><div type="image" title="EasyJet." height="723" width="964" msid="90851407" hostid="261"></div><p>Similar to BA, London-based <a href="https://www.easyjet.com/en/help/covid-19-faqs/mask-guidelines">EasyJet</a> has ended the mask requirement on flights where the origin and destination do not require them. Specifically, people on flights between England, Northern Ireland, Jersey, Isle of Man, Denmark, Sweden, Gibraltar, Switzerland, Hungary, Iceland, and Poland can ditch face coverings onboard.</p><h2>Jet2</h2><div type="image" title="A Jet2 Boeing 737 landing at Newcastle Airport." height="2000" width="2666" msid="90851408" hostid="261"></div><p>British low-cost carrier <a href="https://www.jet2.com/en/flights/safe-travel/our-face-mask-policy">Jet2</a> was the first airline in the UK to scrap mask requirements on planes, relaxing the rule on March 1. The carrier says masks are still required on flights to and from Scotland, as well as overseas countries that still require them.</p><h2>TUI</h2><div type="image" title="TUI." height="664" width="886" msid="90851409" hostid="261"></div><p>Charter airline <a href="https://www.tui.co.uk/destinations/info/preparing-to-travel">TUI</a> says masks can be dropped for those traveling to or from England, Wales, or Northern Ireland, but flights to and from Scotland and some overseas countries, like the US, still require face coverings.</p><h2>Icelandair</h2><div type="image" title="Icelandair Boeing 757" height="1666" width="2223" msid="90851410" hostid="261"></div><p><a href="https://www.icelandair.com/blog/face-masks/">Icelandair</a> has also updated its mask policy to be optional on some routes, including flights within Iceland, and to or from Europe and Greenland. However, masks are still required on service to Canada, the US, Germany (except Frankfurt), and Paris.</p><h2>Virgin Atlantic</h2><div type="image" title="Virgin Atlantic." height="724" width="965" msid="90851411" hostid="261"></div><p>As of March 16, <a href="https://help.virginatlantic.com/gb/en/news/travel-alerts/updates-to-our-onboard-face-mask-policy.html">Virgin Atlantic</a> has changed its mask rules to be optional on flights from Heathrow and Manchester to the Caribbean. Specifically, face coverings can be removed on flights to or from Barbados, St Lucia, Antigua, Grenada, The Bahamas, Jamaica, St Vincent and the Grenadines, and Trinidad &amp; Tobago.</p><h2>Scandinavian Airlines</h2><div type="image" title="SAS Scandinavian Airlines' Airbus A350-900 XWB — SAS Scandinavian Airlines Airbus A350-900 XWB Tour" height="1665" width="2220" msid="90851412" hostid="261"></div><p><a href="https://www.flysas.com/us-en/traffic-information/message/#protection-mask">Scandinavian Airlines</a>, also known as SAS, <a href="https://www.businessinsider.com/scandinavian-airlines-no-longer-requiring-face-masks-on-some-flights-2021-10">removed the mask mandate for flights in Sweden, Denmark, and Norway in October</a>, but has expanded that to all flights except to and from the US, China, and Italy as of April 4.</p><h2>Norwegian Air Shuttle</h2><div type="image" title="Norwegian Air Shuttle" height="664" width="886" msid="90851414" hostid="261"></div><p><a href="https://www.norwegian.com/us/flight-status/updates/">Norwegian Air Shuttle</a> changed its covid-era mask policy on April 4, now allowing passengers to forgo face coverings on all of its flights. However, masks may still be required on routes to certain destinations. The company said that as of February 12 when the mandate was lifted in Scandinavia, it has "noticed increased passenger demand and optimism in regards to booking ahead for both leisure and business travel."</p><h2>KLM</h2><div type="image" title="A KLM Royal Dutch Airlines Embraer E195-E2 aircraft — Embraer E195-E2" height="1665" width="2220" msid="90941355" hostid="261"></div><p><a href="https://business.gov.nl/amendment/face-masks-mandatory/">The Netherlands has scrapped the mask mandate</a> for public transportation on March 23, except for in airports and on aircraft. A Dutch flag carrier KLM <a href="https://thepointsguy.com/news/klm-face-mask-rules-boycott/">spokesperson told TPG</a> it finds the decision "inappropriate, given the phase the pandemic is in," and said it will "no longer monitor this from March 23," and instead "strongly recommend that our passengers wear a face mask on board in line with EASA and ICAO guidelines."</p><p>On its <a href="https://www.klm.no/en/information/covid-19/health-safety-measures">website</a>, KLM noted that some destinations have different mask requirements and the airline will send passengers an email "in the week before departure" with mask policy details for their destination.</p>

Delta, United, Southwest, and 18 other airlines no longer require passengers to wear masks on planes &mdash; see the full list

<ul class="summary-list"><li>Mike Bloomberg's tax bill would be nearly $4 billion cheaper under the tax plan of his chosen candidate, Joe Biden, than under Bernie Sanders.</li><li>Even after spending more than $500 million on his own campaign, Bloomberg is still one of the richest people in the country with a <a href="https://www.businessinsider.com/how-billionaire-michael-bloomberg-made-and-spends-his-fortune-2015-7">net worth of $58.4 billion</a>.</li><li>Bloomberg released his own plan to raise taxes on the wealthy before <a href="https://www.businessinsider.com/mike-bloomberg-drops-out-of-the-2020-presidential-race-2020-3">dropping out of the race on Wednesday</a>, but it was in the form of <a href="https://www.businessinsider.com/wealth-tax-bernie-sanders-elizabeth-warren-difference-explained-chart-2019-10">an income tax instead of a wealth tax</a> like the one Sanders proposed.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul><p>Mike Bloomberg blitzed the country with ads promising to raise taxes on the rich during <a href="https://www.businessinsider.com/things-mike-bloomberg-bought-in-failed-500-million-presidential-campaign-2020-3">his short-lived but expensive presidential campaign</a>.</p><p>But when he dropped out of the race after getting <a href="https://www.businessinsider.com/mike-bloomberg-disastrous-super-tuesday-results-2020-3">trounced on Super Tuesday</a>, the former New York City mayor endorsed the candidate that wants to raise taxes on billionaires like Bloomberg the least - namely, Joe Biden. Under Biden's tax plan, Bloomberg's annual tax bill would be $3.7 billion cheaper than it would be under Bernie Sanders, according to an analysis by <a href="https://www.cbsnews.com/news/bloomberg-wealth-tax-compare-sanders-buttigieg-warren-biden/">CBS MoneyWatch</a>.</p><p>Sanders' "<a href="https://berniesanders.com/issues/tax-extreme-wealth/">Tax on Extreme Wealth</a>" is the most aggressive tax proposal in the race, applying to individuals with net worths above $32 million. Elizabeth Warren proposed taxing those with net worths over $50 million in her "<a href="https://elizabethwarren.com/plans/ultra-millionaire-tax">Ultra-Millionaire Tax</a>." The senator from Massachusetts <a href="https://www.businessinsider.com/elizabeth-warren-drops-out-2020-presidential-race-2020-2">withdrew her own bid</a> for the Democratic nomination on Thursday.</p><p>Before his own withdrawal, Bloomberg proposed <a href="https://www.businessinsider.com/wealth-tax-bernie-sanders-elizabeth-warren-difference-explained-chart-2019-10">an income-based tax on ultra-wealthy Americans</a>. The former New York City mayor's tax plan included raising the tax rate for the highest-earning Americans from 37% to 39.6%, according to his <a href="https://www.mikebloomberg.com/policies/tax-policy?gclid=EAIaIQobChMI-9XWgPfg5wIViJ6zCh23YQysEAAYASAAEgKHh_D_BwE">campaign website</a>. That was the tax rate before <a href="https://www.businessinsider.com/trump-tax-plan-how-tax-brackets-work-2017-12">Trump's unpopular Tax Cuts and Jobs Act</a> took effect in 2018. Bloomberg also proposed adding an additional 5% "surtax" on incomes of more than $5 million a year, according to his <a href="https://www.mikebloomberg.com/policies/tax-policy?gclid=EAIaIQobChMI-9XWgPfg5wIViJ6zCh23YQysEAAYASAAEgKHh_D_BwE">campaign website</a>.</p><p>Biden, however, released a proposal that did not include a wealth tax. While Biden's plan does call for raising taxes, corporate rates would still be below what they were before Trump's tax bill took effect, according to <a href="https://www.washingtonpost.com/business/2019/12/04/biden-releases-trillion-tax-plan-highlighting-divisions-with-sanders-warren/">The Washington Post.</a></p><p>A <a href="https://www.businessinsider.com/majority-americans-approve-elizabeth-warren-wealth-tax-plan-2019-1">majority of the American public</a>, a group of <a href="https://www.businessinsider.com/wealth-tax-ultra-rich-americans-sign-letter-presidential-candidates-2019-6">ultra-wealthy Americans</a>, and a handful of <a href="https://www.businessinsider.com/bernie-sanders-wealth-tax-plan-ultra-rich-2019-9">presidential candidates</a> all hold the opposite view, believing that a wealth tax would help close the <a href="https://www.businessinsider.com/united-states-racial-wealth-gap-cost-economy-2019-8">growing wealth gap</a> in the United States.</p><p>Any true wealth tax proposal would face substantial headwinds before becoming law, <a href="https://www.businessinsider.com/wealth-tax-definition-explained-elizabeth-warren-2019-7">Business Insider</a> reported. The constitutionality of such a tax would likely end up debated in front of the Supreme Court, <a href="https://www.businessinsider.com/wealth-tax-definition-explained-elizabeth-warren-2019-7">according to former Department of Justice tax attorney James Mann</a>, who is now a tax partner at law firm Greenspoon Marder. The revenue raised by a potential wealth tax would also likely be much lower than its advocates expect because of tax evasion tactics the ultra-wealthy would probably undertake to avoid paying more, Mann told Business Insider.</p>

Mike Bloomberg would save nearly $4 billion on his tax bill under Joe Biden's proposed plan compared to the 'tax on extreme wealth' Bernie Sanders wants

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Thomson Reuters</span></p><p class="caption">EBOOKS</p></div><p></p></div></div>Barnes &amp; Noble's Nook business is bleeding cash. </p><p>The bookstore chain's e-reader has c<a href="http://seekingalpha.com/article/3732596-barnes-and-nobles-bks-ceo-ronald-boire-on-q2-2016-results-earnings-call-transcript?part=single">ost the company $39 million</a> in the past year, executives said on a recent conference call with analysts.</p><p>The Nook continues to put a damper on Barnes &amp; Noble's profitability even though the company's same-store sales are actually up. </p><p>In this case, the loyalty of Nook customers is actually hurting the company's business. </p><p>Barnes &amp; Noble can't abandon its Nook business because fans of the e-reader are avid customers, <span>Gabelli &amp; Co. analyst John Tinker <a href="http://snip.ly/FL2F?utm_campaign=RW%20Headlines&amp;utm_content=25380685&amp;utm_medium=social&amp;utm_source=twitter#http://www.cbsnews.com/news/whats-barnes-nobles-next-chapter/">told CBS Moneywatch.</a> </span></p><p><span><span>"You cannot just walk away from them," <a href="http://snip.ly/FL2F?utm_campaign=RW%20Headlines&amp;utm_content=25380685&amp;utm_medium=social&amp;utm_source=twitter#http://www.cbsnews.com/news/whats-barnes-nobles-next-chapter/">Tinker said</a>. </span></span></p><p><span><span>If Barnes &amp; Noble eliminated the Nook, it could risk alienating many of its customers forever.</span></span></p><p><span><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>AP</span></p></div><p></p></div></div></span></span></p><p><span><span>The Nook business has struggled to compete with Amazon's Kindle. Barnes &amp; Noble is constantly investing in new iterations of the Nook with up-to-date technology. It also sells many e-books at a loss to compete with Amazon's lower prices. </span></span></p><p><span><span>Barnes &amp; Noble is currently looking to cut costs in the e-reader department. </span></span></p><p><span><span>Barnes &amp; Noble is also going to open smaller-format stores that will cost less to operate. </span></span></p><p><span><span>It plans to close 10 of its less profitable large stores in the coming year. </span></span></p><p class="tagline">Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/hack-chipotle-burrito-double-size-2015-12">How to double the size of a Chipotle burrito for free</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="FqOWRvdzq6wNHdv9iE6iD-wBcMhyxfpZ" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Barnes & Noble has a group of insanely loyal customers - and they're killing business

<p><div class="KonaFilter image-container float_right"><div class="image on-image"></div><p></p></div>When Warren Buffett considers hiring an executive for his company Berkshire Hathaway, he assesses their intelligence and drive.</p><p>But more importantly, <a href="http://www.bengrahaminvesting.ca/Resources/Interviews_Notes/Buffett_2015.pdf">he said at a talk at the Ivey Business School in late February</a>, he judges that person's character.</p><p>"I know an individual who is definitely going to outperform the S&amp;P, but he's the last guy on earth I'd want my daughter to marry," he joked, saying that while that man may be a "winner" by all accounts, he isn't the right fit for Berkshire.</p><p>When hiring, it's best to prioritize whether you like someone above all else, <span>Buffett said</span>.</p><p>"So first and foremost, you have to feel good around them, you must enjoy their company, like a friend or a family member," he said. "If you feel good around them, it means they have characteristics you admire and are moving in the direction you want to associate with. These people represent who you'd like to be, and you may perceive them even as better than yourself."</p><p>He's used the same philosophy for the CEOs of companies he's acquired. Every leader he considers incorporating into his business must meet his standards of intellect, energy, and integrity, <a href="http://www.cbsnews.com/news/how-to-hire-like-warren-buffett/">CBS MoneyWatch reports</a>.</p><p>"You can admire their behaviour or intellect, but always judge them as a human being," Buffett said at Ivey.</p><p>When employees' values are aligned with those of their company, they will achieve their full potential.</p><p>"These people do 10 things for every one thing you ask for," Buffett said. "They go above and beyond what you expect of them."</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/invest-warren-buffett-berkshire-hathaway-2015-2">How to invest like Warren Buffett</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="s3M3ZhbDpuxZm0OsRtnfcALpwlLIe4o6" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

The most important thing Warren Buffett looks for in job candidates

<p><div class="image-container float_right" style="width:400px"><div class="image"></div><p class="source">Courtesy of Extell</p><p class="caption">A illustration of the view from a "One57"  apartment</p></div><keyword id="1334" type="COUNTRY" weightage="60" keywordseo="China">China</keyword>'s rapidly growing upper class often sends its kids overseas to earn a college degree from one of the prestigious universities of the U.S. or Europe. One mother's move to secure decent accommodation for her daughter's college years has set Chinese tongues wagging.</p>
<p>The woman, who has not been identified, reportedly dropped $6.5 million on a condo in Manhattan which hasn't even been built yet for her daughter to live in while she studies.<span style="line-height: 1.5em;"> </span></p>
<p>According to a top executive from the real estate agency which sold it to her, the intended future inhabitant was just two years old at the time of the transaction.</p>
<p><a href="http://www.cbsnews.com/8301-202_162-57576485/china-mom-buys-toddler-a-$6.5m-nyc-condo/"><strong>Read the rest at CBS MoneyWatch &gt;</strong></a></p>

Chinese Woman Buys Toddler $6.5M NYC Condo For When She's In College

<p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>In-N-Out will "never" go public or franchise its restaurants, the burger chain's president, Lynsi Snyder, told <a href="http://www.cbsnews.com/videos/behind-the-in-n-out-burger-dynasty/">CBS</a> in a rare interview.<p class="p1"><span class="s1">"The only reason we would do that is for the money, and I wouldn't do it," Snyder said in the interview. </span></p><p class="p1"><span class="s1">"M</span><span class="s1">y heart is totally connected to this company because of my family, and the fact that they are not here - I have a strong tie to keep this the way they would want it."</span></p><p class="p1"><span class="s1">That means In-N-Out probably won't be expanding to the East Coast any time soon. </span></p><p class="p1">The 304-store chain has slowly expanded eastward over its 65-year lifetime from California to Nevada, Arizona, Utah, and more recently Texas and Oregon. The company has also been holding "pop-up shops" around the world, <a href="http://www.8asians.com/2014/03/12/in-n-out-burger-opens-in-taipei-for-2-hrs/">where burgers tend to sell out within minutes</a>.</p><p class="p1"></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div>All signs would point to a plan for expansion, but without franchising or going public, it's unlikely we'll see an In-N-Out on the East Coast any time soon.<p>Here's why:</p><p><strong>1</strong>.<strong> Quality control:</strong> There are no freezers or microwaves in In-N-Out restaurants because the company has a strict policy of serving its food fresh. Therefore, all locations must be within 300 miles of the company's distribution facilities, which are in Baldwin Park, California, and Dallas.</p><p>"At In-N-Out Burger, we make all of our hamburger patties ourselves and deliver them fresh to all of our restaurants with our own delivery vehicles," In-N-Out vice president of planning and development Carl Van Fleet told Business Insider in a previous interview. "Nothing is ever frozen. Our new restaurant locations are limited by the distance we can travel from our patty-making facilities and distribution centers."</p><p><strong>2. Exclusivity:</strong> Everything has more appeal when it's not available to everyone, and the exclusivity of In-N-Out is what has helped the restaurant gain such a <a href="http://www.businessinsider.com/fast-food-menu-items-with-cult-followings-2012-11#">rabid following</a> of fans.</p><p>In response to pleading from a local politician for an In-N-Out to open in Denver, Van Fleet made it clear the company was not planning to expand farther east.</p><p>"You continue to give us the biggest compliment possible with your efforts to interest us in Colorado," he wrote in a letter obtained by <a href="http://blogs.denverpost.com/thespot/topic/carl-van-fleet/">The Denver Post</a>. "That said, at this time, we're still not looking to add a sixth state and we're just focusing our growth efforts in the five states where we currently operate."</p><p>Since then, In-N-Out has expanded to Oregon - which is the chain's sixth state of operation.</p><p><strong style="line-height: 1.5em;">3.</strong> <strong style="line-height: 1.5em;">Competition:</strong> The East Coast has numerous burger joints that would offer tough competition for In-N-Out, including Shake Shack and Five Guys.</p><p><strong>4. No franchising:</strong> A large-scale expansion without franchising would require a massive amount of up-front capital from the company.</p><p>"In-N-Out remains privately owned and the Snyder family has no plans to take the company public or franchise any units," the company reaffirms on its website.</p><p>Watch Snyder's interview:</p><p><div><embed src="http://www.cbsnews.com/common/video/cbsnews_video.swf" scale="noscale" salign="lt" type="application/x-shockwave-flash" background="#000000" width="620" height="387" allowfullscreen="true" allowscriptaccess="always" flashvars="pType=embed&amp;si=254&amp;pid=tChu4Xx3Txfn&amp;uuid=3a170e6c-20b3-468c-b458-d17bbd6a8aa1&amp;url=http://www.cbsnews.com/videos/behind-the-in-n-out-burger-dynasty/" /><div class="cbs-resources"><span class="cbs-more">View More: </span><a href="http://www.cbsnews.com/moneywatch/" class="cbs-link">MoneyWatch News</a><span class="cbs-pipe"></span><a href="http://www.cbsnews.com/live/" class="cbs-link">Live News</a><span class="cbs-pipe"></span><a href="http://www.cbsnews.com/videos/" class="cbs-link">More News Videos</a></div></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/shake-shack-secret-menu-peanut-butter-bacon-burger-2015-2">Here's what happened when I ordered Shake Shack's secret menu burger</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="xydHlmczreDMB8sHS6w6jwxtZc6PnRgQ" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

In-N-Out president explains why the burger chain probably won't expand to the East Coast

<p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>LuLaRoe, the retailer known for its brightly patterned leggings and a cult following among millennial moms, has exploded in popularity. That's making it nearly impossible for some of its sellers to turn a profit.<br><br>The company relies on "consultants" to sell the clothing it makes at parties held in their homes. Some - including one <a href="http://www.businessinsider.com/lularoe-is-making-millennial-moms-rich-2016-9">profiled by Business Insider </a>last year - say they've turned it into a six-figure income job. <br><br>But the number of consultants selling LuLaRoe products has doubled since then, from 38,277 in September to 77,491 in February, according to data obtained by Business Insider. <br><br>That's making it harder for the sellers - who buy the merchandise from LuLaRoe - to turn a profit. It's just another in a string of problems that LuLaRoe is facing after its explosive growth. The company is also dealing with a manufacturing problem that has it facing complaints from thousands of customers who say <a href="http://www.businessinsider.com/lularoe-customers-complain-popular-leggings-are-tearing-2017-2">its popular leggings are tearing apart</a> in as little as a few hours of wear.<br><br>More than 80% of LuLaRoe's representatives generated less than $5,000 in sales last month, including 10,834 who sold nothing, the data show. The average representative sold about $3,387 of LuLaRoe in the month. <a href="http://www.cbsnews.com/news/why-lularoe-can-be-a-tough-sell-for-its-many-salespeople/">CBS MoneyWatch </a>reported some of these details earlier. <br><br>LuLaRoe is a private company and does not disclose data on representatives' estimated profit.<p>The company requires an initial investment of $5,500 in inventory to become a consultant, but according to <a href="http://www.bottlesoup.com/2016/05/19/lularoe-lulano-will-investment-pay-off/">one estimate, based on figures from a LuLaRoe seller</a>, representatives must invest at least $15,000 in inventory and sell it at a markup of more than 40% to turn a profit.</p><p>LuLaRoe disputes this claim.<br><br>The company says its consultants can turn a profit on less than $5,000 in monthly sales, and noted that it gets repeated re-orders even from small sellers and has a 90% retention rate among its sellers.</br></br></p><p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div></strong>Some representatives say it's been getting harder to make money selling LuLaRoe because they are competing with so many more sellers now, and they have to run promotions to attract customers - which is a drain on profits. Some newer consultants have also complained that they are getting repeat patterns and damaged goods in their shipments from LuLaRoe.</p><p>Christina Hinks, 36, of Cary, Illinois, said she got a shipment of 290 products from the company in December and most of the dresses, leggings, and shirts were made out of the same Aztec-printed material. Representatives don't get to select the products they sell.</p><p>"I got 290 pieces of redundancy. They must have been on an Aztec kick," she told Business Insider. "I'm in Chicago. There's no way I could sell that here."</p><p>She said she ended up selling the entire batch of products to another representative on the West Coast, where the Aztec print is more popular.</p><h2>Where the real money is</h2><p>The most lucrative route at LuLaRoe is to manage a team of sellers, which is how representatives earn bonuses from the company.</p><p>Representatives try to recruit their friends and family to sell LuLaRoe with them, so they can be promoted to the status of team leader - what the company calls "sponsors" - and eventually to even higher leadership positions.</p><p>About 17% of LuLaRoe representatives qualified as sponsors - meaning they had at least one other representative under them and sold a minimum of 175 products per month - in 2015, according to a <a href="http://www.lularoe.com/income-disclosure-statement/">LuLaRoe income disclosure statement</a>. Sponsors earned an average bonus of $4,751 per person that year.</p><p>The share of qualifying sponsors fell to roughly 12%, or 8,955 people, in February of this year, according to data reviewed by Business Insider.</p><p>Higher levels of leadership come with higher bonuses. So-called "coaches," for example, earned an average bonus of $210,338 in 2015. In February, 284 people out of 77,491 representatives qualified as coaches and 46 people earned the highest rank of "mentor."</p><p>Overall, only 13% of representatives were paid bonuses in 2015, according to a <a href="http://www.lularoe.com/income-disclosure-statement/">LuLaRoe income disclosure statement</a>.</p><p>About 71% of those representatives earned an annual bonus of $1,000 or less. Roughly 3% earned bonuses of between $7,500 and $50,000.</p><p>So it's possible to make a lot of money selling LuLaRoe, but only a tiny fraction of representatives make it to the top, according to the data available.</p><div>    </div>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/report-fast-food-chicken-sandwich-wendys-mcdonalds-subway-retail-teriyaki-2017-2">REPORT: Some chicken sandwiches from popular fast food chains may not be what you think they are</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="9keGozYTE6_ZQ_dZhsc0yJ2QuSReP-yw" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div></br></br></br></br></br></br></br></br></br></br>

LuLaRoe is making some women rich, while thousands struggle to make a profit

<p><div class="KonaFilter image-container float_right click-to-enlarge"><div class="image on-image"><a title_source="Udacity" title_caption="Instructor Kunal Chawla teaching a nanodegree class on Python programming." class="zoomin" href="https://static-ssl.businessinsider.com/image/53a1ce1beab8ea7e0d291b22-960/nanodegree-class.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>Udacity</span></p><p class="caption">Instructor Kunal Chawla teaching a nanodegree class on Python programming.</p></div><p></p></div>A new initiative from online education resource <a href="http://blog.udacity.com/2014/06/announcing-nanodegrees-new-type-of.html">Udacity</a> and AT&amp;T may actually help high-school graduates without college degrees get skilled tech jobs.</p>
<p>For $200 per month, users can enroll in a <a href="https://www.udacity.com/nanodegrees/front-end-web-developer">six- to 12-month program</a> that gets them a "nanodegree," proof to job recruiters that they have successfully acquired a certain skill.</p>
<p>The initial offerings, beginning this fall, are in front-end web development, back-end web development, iOS development, and data analysis. Udacity has said another offering will be for Android development, and many more are planned.</p>
<p>AT&amp;T is <a href="http://www.attinnovationspace.com/innovation/story/a7795433">making up to 100 paid internships available</a> to top applicants with nanodegrees, and will offer full scholarships for worthy candidates who could not otherwise afford a course.</p>
<p>It has invested $1.5 million into the initiative.</p>
<p>Udacity says it plans on working closely with other companies to develop courses and application programs similar to the one they collaborated with AT&amp;T on.</p>
<p>Cloudera, salesforce.com, Autodesk, Technet, Silicon Valley Leadership Group, sf.citi, and the Business Roundtable have already agreed to recognize nanodegrees as valid job credentials.</p>
<p>While college-level online courses have been available for awhile now, research has shown that those who don't really need them - professionals who already have at least a bachelor's - <a href="http://www.nytimes.com/2014/06/18/business/economy/udacity-att-nanodegree-offers-an-entry-level-approach-to-college.html?ref=business">are the majority of those using them</a>.</p>
<p><a href="http://www.businessinsider.com/mckinsey-report-on-education-skills-gap-2012-12">A 2012 McKinsey report</a> said that the world is on track to having a shortfall of as many as 85 million high- and middle-skilled workers by 2020.</p>
<p>"Research tells us that 65% of U.S. jobs will require some form of post-secondary education by 2020, yet fewer than 40% of Americans are educated beyond high school today," Jamie P. Merisotis, president of the Lumina Foundation, <a href="http://www.cbsnews.com/news/who-is-earning-college-degrees-and-who-isnt/">told CBS MoneyWatch</a> last year.</p>
<p>If more companies like AT&amp;T help develop these talent pipelines, nanodegrees could provide entry to good-paying jobs without the investment of increasingly expensive four-year degree programs.</p>

Why 'Nanodegrees' Might Be A Real Career Solution For Those Who Can't Afford College

<div id="videoMetaInfo">
<p class="dek"><table class="image-container float_right" width="200"><tr><td><div class="image"></div><p class="source"><a href="http://helaineolen.com/">helaineolen.com</a></p></td></tr></table>We're huge fans of the new book that's stirring all kinds of controversy in the <keyword id="35448" type="UNKNOWN" weightage="60" keywordseo="personal-finance">personal finance</keyword> industry this month.</p>
<p class="dek">It's called "<a href="http://www.amazon.com/gp/product/1591844894/ref=as_li_ss_tl?ie=UTF8&amp;tag=thebusiinsi-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=1591844894">Pound Foolish</a>," and in it, author <keyword id="1773264" type="UNKNOWN" weightage="60" keywordseo="Helaine-Olen">Helaine Olen</keyword> essentially tears down some of the biggest names –– and common pieces of financial wisdom –– in business one by one. </p>
<p class="dek">She especially goes after big names like Suze Orman, Dave Ramsey, and David Bach –– all experts who have built empires based on the fact that since they have mastered the financial system, then you, the cash-strapped reader, should be able to as well. </p>
<p class="dek">A point Olen makes clear early on in the book is that experts are only putting a bandage on larger economical issues that have made it especially trying for consumers to scrape by.</p>
<p class="dek">We've shared her <a href="http://www.businessinsider.com/the-hopeless-quest-for-the-perfect-investment-helaine-olen-pound-foolish-2013-1" target="_blank">refreshing take on individual investing here</a> and are chatting with Olen soon. In the meantime, here are some of the highlights of a sit-down chat she had recently with <a href="http://www.cbsnews.com/video/watch/?id=50139586n" target="_blank">CBS Moneywatch</a>. </p>
<p class="dek"><strong>On why she loathes personal finance Gurus:</strong></p>
<p class="dek">"These people are telling us, hey, just buy a few umbrellas and sand bags and no matter what wave comes your way, you're going to be fine. And, by the way, they're the ones selling us the sandbags and umbrellas and they don't often disclose that."</p>
<p class="dek"><strong>On why tips aren't enough to save consumer finances: </strong></p>
</div>
<p class="sideScroller">"What they're doing is they're denying the pressures that are on us. Our salaries have stagnated and fallen for well over a decade now. And what they're doing is saying, you're going to be fine if you're living within your means while they ignore the fact that our heath care costs have gone up at rates beyond inflation, housing has gone up at rates beyond inflation, education has gone up at rates beyond inflation." </p>
<p class="sideScroller"><strong>On why finance gurus have so much pull with consumers:</strong> </p>
<p class="sideScroller">"We're nuts when it comes to money and all we want is someone to tell us what to do. Most of us don't want to engage with our money even though we need it, and so the idea is, hey, I'll just follow this person and they'll tell me what to do. We also, in this country, have a huge attraction to this sort of tough thinking about money –– where anybody can make it and it's your fault if you don't." </p>
<p>Check out the full video <a href="http://www.cbsnews.com/video/watch/?id=50139586n" target="_blank">here</a>. </p>
<p class="sideScroller"><strong>SEE ALSO: <a href="http://www.businessinsider.com/7-signs-youre-living-beyond-your-means-2013-1">7 signs you might be living beyond your means &gt;</a></strong></p>

This Woman Is Shredding The Personal Finance Industry And We're Loving It

<p><table class="image-container float_right" width="200"><tr><td><div class="image"></div><p class="source"><a href="http://www.hulu.com/watch/60102/the-dave-ramsey-show-february-19-2009">Hulu</a></p></td></tr></table><span style="font-size: 15px; line-height: 1.5em;">Personal finance guru <keyword id="1769067" type="UNKNOWN" weightage="60" keywordseo="Dave-Ramsey">Dave Ramsey</keyword> went on a rant Tuesday afternoon against </span>Twitter<span style="font-size: 15px; line-height: 1.5em;"> users who assailed him for promising consumers they could become millionaires by <keyword id="6370266" type="ORGANIZATION" weightage="60" keywordseo="saving">saving</keyword> $100 per month. </span></p>
<p>It's a formula Ramsey has touted for years, but he kicked off his morning by tweeting this nugget of wisdom out to more than 300,000 followers: </p>
<p><strong>"Saving only $100 per month from age 25 to age 65 at 12% growth = $1,176,000. Everyone should retire a millionaire!"</strong></p>
<p>The backlash was instant and people had one main question: <span>How can you promise a 12 percent return on investment over a 40-year period? </span></p>
<p>Ramsey defended himself <a href="http://www.daveramsey.com/radio" target="_blank">during his live show</a> Wednesday, calling the theory <span style="font-size: 15px; line-height: 1.5em;"> "inspirational" and "instructional."  But for the legion of fans who eat up his every word each day, it could be the last kind of advice they need. </span></p>
<p>Here's where we take issue with Ramsey's defense: </p>
<p><strong>Ramsey: "[I use this formula] to encourage you to save. That's why I would say it,  to encourage you to be an investor. It wasn't a political statement, although I'm not above those. It wasn't a spiritual statement, although I'm not above those. It was a mathematical formula showing that if you save money over time, you'll have some." </strong></p>
<p><strong>Our take:</strong> It's noble to want people to save. But, of course, anyone would be inspired to save if you tell them they could make a million bucks just by tucking away a small amount of cash for 40 years. The fact of the matter is that his formula relies on a 12 percent rate of investment return –– something no one in their right minds would promise for that long a time frame. </p>
<p><span>An August report by </span><a href="http://www.businessinsider.com/84-mutual-funds-underperform-2012-3" target="_blank">S&amp;P Indices</a><span> found more than 80 percent of actively managed U.S. stock funds underperformed the market. </span></p>
<p><span><span></span></span><span style="font-size: 15px; line-height: 1.5em;">Yes, Ramsey went on to say that he "didn't bring up a guarantee," later, but there no was </span><a href="https://twitter.com/DaveRamsey/status/301306319313461248" target="_blank">no such clarification in the original tweet</a><span style="font-size: 15px; line-height: 1.5em;">.</span></p>
<p>Why? The way Ramsey suggests earning that return is to invest in mutual funds (of course, he suggests listeners call his hotline for his personally-endorsed funds, but we'll get to that later). He says his team can point people to funds that have "lifetime track records of" 12 percent returns. We'd love to see the numbers to prove that. </p>
<p>According to a study published in the Journal of <keyword id="35175" type="UNKNOWN" weightage="60" keywordseo="investing">investing</keyword>, <a href="http://www.stockopedia.co.uk/clicks/?url=http://www.firstquadrant.com/downloads/The_Management.pdf">75% of investment funds under-perform the stock market averages</a><span> over the long term. The reason? High fees, taxes and trading commissions that eat up all the profit, not that most mutual fund advisors will factor those costs into their annual return estimates.  <span>T</span><span>he average mutual fund charges up to </span><a href="http://www.forbes.com/2011/04/04/real-cost-mutual-fund-taxes-fees-retirement-bernicke.html" target="_blank">3 percent of annual returns</a><span> for the privilege of divvying up your investments, according to Forbes.</span></span></p>
<p>That's the reason more conservative experts like <a href="http://www.businessinsider.com/7-ways-to-retire-a-millionaire-2012-11" target="_blank">U.S. News &amp; World Report's Kimberly Palmer</a> use a 7 percent ROI when calculating a millionaire retirement goal:</p>
<p><span>"If you start saving for retirement at age 25, you only have to save about $4,830 annually to reach $1 million by age 65, assuming an annual return of 7 percent after fees. If you wait until age 40 to start saving, you'll need to tuck away much more: $15,240 per year, assuming the same retirement age and annual return."</span></p>
<p><span>Note: That's a monthly savings goal of $400/month, a far cry from the "coffee a day" $100 Ramsey estimates. </span></p>
<p><strong><span>Ramsey: "Who could save $100 a month? People who work and stay out of debt and live on a budget. ...  Y</span></strong><strong id="internal-source-marker_0.5200869480613619">ou would have $100 if you would cut your freaking cable bill back, stay out of the coffee shop and quit spending money you don't have on a bunch of junk."</strong><span> </span></p>
<p><span><strong>Our take:</strong> Certainly, it is possible for a lot of people to tuck away that much cash per month by rejiggering their expenditures. But what about the <a href="http://www.businessinsider.com/10-most-financially-unstable-states-2013-2" target="_blank">132 million Americans</a> who don't even have enough saved for emergencies? </span></p>
<p><span>We doubt they can afford luxuries like lattes and cable, let alone investing $100 in a costly mutual fund, especially given the fact that U.S. households saw their income decrease by $49,000 between 2007 and 2010, according to the NY Fed. </span></p>
<p><span></span><span>And the sarcastic, finger-wagging tone Ramsey uses to blast people who say they can't save is insulting and a little hypocritical –– <strong>Ramsey himself declared personal bankruptcy before building his personal finance empire. </strong></span></p>
<p><strong>Ramsey: "<span>It's simple concept in a culture that has the savings rate and financial maturity of a two-year-old. To simply put out there that maybe if you save some money you would have some blows people away. </span>This is why I have a job for as long as I want one. I will never be unemployed. Just teaching people to save money and get a bunch of money and get out of debt. Me and Jenny Craig, we got a lock for life, baby. We got enough work forever." </strong></p>
<p><strong>Our take:</strong> Apart from being completely condescending, Ramsey is basically admitting here that his entire financial empire is based on the fact that people STAY in debt and need help figuring out how to make their money last longer. Why else would they need his advice? </p>
<p>Here's where some financial reform would come in handy –– much handier than letting Ramsey pick your mutual funds for you, we would guess. If enough consumers truly understood financial products like 401(k)s, Roth IRAs, and investment funds, chances are they could debunk Ramsey's advice all on their own. Unfortunately, deciphering the literature is not only difficult, time consuming labor, but it's difficult for most people to even know where to start.</p>
<p><a href="http://www.businessinsider.com/helaine-olen-on-personal-finance-gurus-2013-1" target="_blank">In an interview with CBS MoneyWatch</a>, personal finance writer Helaine Olen, hit the nail on the head: </p>
<p>"We're nuts when it comes to money and all we want is someone to tell us what to do. Most of us don't want to engage with our money even though we need it, and so the idea is, hey, I'll just follow this person and they'll tell me what to do. We also, in this country, have a huge attraction to this sort of tough thinking about money –– where anybody can make it and it's your fault if you don't." </p>
<p>If you need proof this is the kind of product Ramsey is selling, take this quote from his radio show today: <strong>"I'm just reading facts to you. I've been getting 12% on my money on average for many years. ... If you don't want to save or invest because you think the future is caving in ... then don't do it. But I'm gonna go get rich and you guys can all go gripe about it."</strong></p>
<p>And lastly, this: </p>
<p><strong>Ramsey: "If</strong><strong id="internal-source-marker_0.5200869480613619" style="font-size: 15px; line-height: 1.5em;"> you can wander onto the internet and go buy an S&amp;P 500 index fund, which you should be able to do if you can buy your potato chips over the internet, then you can. It has a</strong><strong id="internal-source-marker_0.5200869480613619" style="font-size: 15px; line-height: 1.5em;">n average of slightly under 12% but that's an idiot-proof fund."</strong></p>
<p><strong id="internal-source-marker_0.5200869480613619">Our take: </strong>This is about the only thing Ramsey gets right. <a href="http://www.businessinsider.com/hedge-fund-sp-500-correlation-2013-2" target="_blank">Low-cost index funds have been proven</a> to be the financially sound choice for most investors, given the fact that they don't come with all the high fees that typically eat up returns for mutual fund investors. But then we wonder why Ramsey is trying to sell people on his endorsed mutual funds if he basically admits here that low-cost, index funds are the way to go? </p>
<p>We asked Mark Herber, <span style="font-size: 15px; color: #000000;">President of </span><span style="font-size: 15px; color: #000000;"><a href="http://www.ifa.com/" target="_blank">Index Funds Advisors, Inc</a>. for his take: </span></p>
<p style="padding-left: 30px;"><span style="font-size: 15px; color: #000000;">"W</span><span style="font-size: 15px; color: #000000;">e have never seen any client that earned these returns over the 40 years, but our simulated <strong>index portfolios</strong>, adding $100/month, starting with high risk and reducing the equity exposure by 1% per year actually came close to his calculation.  But without passive funds, he would not even had data to make such a claim." </span></p>
<p><span>We reached out to Ramsey's rep for comment but haven't heard back since this afternoon.</span></p>

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