Where to put $50,000 in emergency savings

NEW YORK (CNNMoney)

The philosopher George Santayana famously wrote that those who cannot remember the past are condemned to repeat it. Your question makes me wonder whether people are already starting to forget a key lesson of the financial crisis: Higher yields always come with higher risks.

That's true whether you're investing for the long-term in retirement accounts, like 401(k)s and IRAs, or setting aside savings you may need to tap much sooner for emergencies and such. In fact, the downside of ignoring or underestimating risk may be even higher when you're investing money you may need in the short-term, since you have less flexibility to absorb and recover from any losses.

Back in 2007, when the economy and markets were still going gangbusters, investors seeking "safe" high yields plowed their money into all sorts of investments that claimed to be as secure and liquid as cash while delivering above-average returns: auction-rate securities, bank loan funds and ultrashort-term bond funds, to name a few.

Related: Will your retirement savings last?

These investments lived up to their extra-gain-with-no-pain promise, until they didn't. When the financial crisis hit in 2008, it became clear that supposedly safe alternatives to money-market funds and savings accounts came with an unexpected downside.

The market for auction-rate securities froze up in 2008, leaving thousand of investors unable to access their money for many months and, in some cases, years. Ultrashort-term bond funds, meanwhile, lost 9% of their value during the financial crisis, while bank loan funds fell by more than 30%. It took both types of funds nearly three years to recoup their losses.

Flash forward to today: With savings accounts, money-market accounts and the like paying less than 0.10% a year on average, the impulse to reach for extra yield is still strong. And there's no shortage of people pitching products that cater to that impulse, ranging from the very ones that backfired on investors six years ago (bank-loan funds, ultrashort-term bond funds, short-term bond funds) to a variety of others offering even higher yields (short-term commercial real estate notes and promissory notes). In some cases, they are even touting double-digit returns.

My advice: When it comes to the money that absolutely, positively has to be there whenever you may need it -- emergency funds or savings you expect to tap within a short period, say, a down payment for a house you plan to buy within a few years -- you should stick to an FDIC-insured savings account or money-market account. Granted, their yields are paltry. But for the money you can't afford to put at risk, safety and access are your primary concerns, not return.

Related: The 3 biggest risks every retirement saver should know about

That said, there is a way to boost the yield you earn without sacrificing safety: do a little shopping around. By going to sites like Bankrate.com, Mint.com and NerdWallet, you can find savings accounts, money market accounts and short-term CDs that pay yields well above the average.

We're not talking blow-your-socks-off payouts, but you can get 1% or so in an FDIC-insured account, which is roughly 10 times the national average. On $50,000 of savings, that's the difference between earning $500 a year vs. just $50.

I don't recommend it, but if you want to shoot for a somewhat higher return with a portion of your "safe harbor" stash, you could move some funds into an ultrashort-term bond fund, bank loan fund or even a short-term bond fund. But if you choose to do that, I suggest you complete a risk tolerance questionnaire first. And if you decide to go ahead, make no mistake that, one way or another, you're accepting the possibility of a bigger downside.

In the case of ultrashort- and short-term bond funds, the main danger is rising interest rates. At some point, the Federal Reserve will set a higher target for short-term interest rates. When that happens, rates will rise and ultrashort- and short-term bond funds will be susceptible to setbacks.

Morningstar also noted in a recent report that some funds holding short-term debt have been juicing yields by investing in lower-quality bonds, making them even more vulnerable. Theoretically, any losses should be small, as these funds typically invest in very short-term debt. But as we saw in 2008, theory doesn't always jibe with reality.

As for other "safe" alternatives -- promissory notes, commercial bridge loans and similar products -- I don't think they should play any role in an emergency fund. They require a level of analysis and research that's beyond what most individual investors are willing or capable of doing.

Calculator: How much will I need for retirement?

If you have some money you can afford to take extra risk with in hopes of earning a higher return -- and you're willing and able to do the considerable research needed to truly understand the risks in these complex investments -- fine. But you should know that money in these investments is not as liquid and secure as funds in an FDIC-insured account.

I wish I could recommend more attractive choices, investments that offer loftier yields than money-market and savings accounts, immediate access to your money and the assurance that no matter what happens your principal and any earnings are protected against loss. But in the real world, an investment's return is a reflection of its risk.

That risk may be difficult to discern, or the person selling the investment may gloss over the potential perils. But they are there. If nothing else, the financial crisis proved that in spades.

Walter Updegrave is the editor of RealDealRetirement.com. If you have a question on retirement or investing that you would like Walter to answer online, send it to him at walter@realdealretirement.com.

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Bra Boom: Why Wall Street is hot for Victoria's Secret

NEW YORK (CNNMoney)

The stock of L Brands (LB), the lingerie retailer's parent company, is also strutting its stuff. It's up over 30% this year.

At a time when many retailers are getting squeezed by the diminished spending power of the middle class consumer, the bra business is looking sexier than ever.

International appeal: Much of L Brands' success comes from the power of its international brand appeal. The firm has made a big push overseas in recent years, and its annual runway show has become a prime-time event around the world.

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It's flagship Victoria's Secret London store has done particularly well, so much so that company executives picked the city as the site of 2014 fashion show.

Victoria's Secret even hosts viewing parties for the runway extravaganza at various store locations in the U.S. and abroad.

"They've done a good job marketing it around the world," said Susan Anderson, an analyst at FBR Capital Markets. "Everyone knows the Victoria's Secret Fashion Show."

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Branching out: After a bit of a rough 2013, Victoria's secret has greatly improved their merchandising and product innovation, Anderson asserted.

The retailer has branched out beyond its traditional lingerie niche by expanding into athletic wear. A new sports bra line has been a hit, as have its yoga pants.

Then there's the PINK brand, which is under the umbrella of Victoria's Secret but geared toward teens and college age women.

And unlike other clothing companies vying for teens' attention, PINK doesn't have much competition in the intimate apparel arena, according to Anderson.

"The teen consumer always tries to be older," she said. "Once you have that consumer in the door, they're very loyal."

First Published: December 2, 2014: 4:00 PM ET

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Switch to Sprint, cut your bill in half

Verizon and AT&T customers can cut their bills in half by switching to Sprint on Dec. 5.

NEW YORK (CNNMoney)

But the deal is only good on Friday, Dec. 5.

Here's how it works. Verizon (VZ, Tech30) and AT&T (T, Tech30) customers must upload their latest bill online and then bring a copy of it into a Sprint store on Dec. 5. The new plan will offer the same data allowance as the customer's current one. And it will include unlimited talk and text.

If the customer is currently paying $160 monthly for four lines, Sprint will charge $80.

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Sprint will also buy the customers out of their current contracts, up to $350 per line.

It's the latest move in the price war going on in the U.S. wireless industry and it is aimed at the two biggest players.

Sprint (S) brought in CEO Marcelo Claure this summer to lead the charge. Claure pledged to make Sprint more "aggressive in the marketplace" and the company has since overhauled its pricing.

But Sprint has a long way to go. Though its speeds are improving, it still has by far the slowest 4G network of its rivals. It was rated the worst cell phone service in the nation by Consumer Reports last year. On top of all that, it continues to hemorrhage money and lose customers.

First Published: December 2, 2014: 6:30 PM ET

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U.S. investigating baby seat recall timeline

U.S. regulators want to know if Graco took too long to report a defect that led to a big child-seat recall.

NEW YORK (CNNMoney)

The company could face a fine of up to $35 million if the National Highway Traffic Safety Administration's investigation finds it delayed notifying regulators of the safety defect. A manufacturer has five days to notify the agency once it is aware of a safety defect and the investigation will determine if the company took longer.

In affected car seats the buckles can become stuck, making them difficult to open. The recall was issued in July and includes car seats manufactured between July 2010 and May 2013.

There have been no reported injuries related to the recalled baby carriers.

Still, NHTSA says the problem could create "an unreasonable risk to a child's life in the event of an emergency."

Graco could not immediately be reached for comment.

First Published: December 1, 2014: 5:58 PM ET

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Despite scandal, Uber raising $1 billion at a $40 billion valuation

Uber CEO Travis Kalanick has been criticized for his company's tactics, but it's not impacting the fundraising.

NEW YORK (CNNMoney)

The company is looking to raise $1 billion in funding at a $40 billion valuation, a source with knowlege of the deal confirmed to CNNMoney. (Bloomberg first reported the valuation last week.) The company, currently valued at $17 billion, would be worth more than Netflix (NFLX, Tech30).

Additionally, Uber is working with Goldman Sachs on a separate round of funding, according to the source. The bank is offering its high net worth clients the option of convertible debt that could eventually be converted to stock. (This was first reported by Fortune.)

This comes just weeks after an Uber executive came under fire for suggesting the company dig up dirt on journalists who criticized the car service.

One investor called the recent controversies "PR misfires" that have yet to affect the business.

"The [company's] numbers are astronomical," he added.

"In terms of brand awareness, there's no company bigger than Uber right now," Bluerun Ventures Partner John Malloy told CNNMoney. "Late-stage investors have an appetite to be involved in ... what's looked at as the breakthrough company."

First Published: December 1, 2014: 7:36 PM ET

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FBI warns of hacking threat after Sony attack

The FBI is warning businesses of a new malicious software that was used to attack Sony Pictures.

NEW YORK (CNNMoney)

The threat comes from the same type of malicious software that infected Sony's computer systems, a law enforcement official told CNN.

As a result of the attack on the Hollywood studio, Brad Pitt's "Fury" and the remake of the musical "Annie," have become available on illicit web sites. Screener copies of at least five unreleased Sony films have also made their way online.

Sony is "exploring the possibility" of a North Korean link to the hacking, according to Re/code and other reports. That's because Sony is about to release "The Interview," a comedy starring James Franco and Seth Rogen. Its plot entails an attempted assassination of the North Korean leader Kim Jong-Un.

Businesses were alerted about the new threat and what the hackers could do once inside the business' computers.

The FBI routinely advises private industry of various cyber threats found during investigations, the FBI said in a statement Monday night.

This data is provided in order to help systems administrators guard against the actions of persistent cyber criminals, it said.

The alert was first reported by Reuters.

CNN's Pamela Brown contributed to this report.

First Published: December 1, 2014: 7:57 PM ET

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NBC's Dr. Nancy Snyderman still on the bench

Dr. Nancy Snyderman of NBC.

NEW YORK (CNNMoney)

NBC News said she'd return to work sometime in November, but November is over. And the network is not giving a new date for her return.

But sources at the network say she is still expected to be back on the air sometime soon.

Snyderman, NBC's chief medical editor, stoked controversy in October when she violated a voluntary Ebola-related quarantine, seemingly contradicting what she'd said on television about safe medical practices.

Snyderman had been covering the Ebola outbreak in Liberia with a team that included Ashoka Mukpo, a freelance cameraman. When Mukpo was infected with Ebola, Snyderman and the rest of the team members returned to the United States. She said they would "self-quarantine on our own."

"We'll approach this very cautiously, and probably more judiciously than other people, because we want to send the right message," Snyderman said on NBC's "Today" show on October 3.

She said the self-quarantine would last for 21 days. But within days of touching down in the U.S., Snyderman was seen outside her home in New Jersey. The sighting was soon reported by local news media, leading the state of New Jersey to enforce a mandatory quarantine.

Snyderman said in a subsequent October 13 statement that "members of our group violated those guidelines and understand that our quarantine is now mandatory until 21 days have passed." She said she was "deeply sorry for the concerns this episode caused."

Since then, Snyderman hasn't been heard from -- not a peep on television, Twitter or Facebook.

Meanwhile, people continue to leave comments on her Facebook page.

"Are you still NBC's chief medical editor?" one person asked last week.

"She violated the public trust for take-out," another person wrote on Snyderman's Facebook page, apparently addressing NBC. "Don't think we won't notice if you slip her back in."

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With Snyderman's apology in October came mounting questions about her credibility.

"NBC must now decide whether Snyderman's credibility is too damaged for her to continue reporting on Ebola or other medical issues and, if so, for how long," the Associated Press said.

But the network signaled that it still supported her. At the end of Snyderman's 21-day quarantine period, on October 22, NBC News president Deborah Turness said the correspondent and her crew would be taking some additional time off. The network had encouraged this -- partly to let some time pass before putting Snyderman back on TV.

Turness said in an internal memo, "we very much look forward to their return next month," meaning sometime in November.

But Snyderman never appeared on the network in November. Employees at NBC News, who spoke on condition of anonymity, said the only people who know her fate are the top executives of the news division. And those executives aren't talking. A network spokeswoman declined to comment on Sunday.

But several of the employees said they do expect to see Snyderman back on the air soon, in one form or another. One of the employees said Snyderman may be reintroduced through an interview on "Today" or "NBC Nightly News" that allows her to clear the air about her absence.

Snyderman did not respond to requests for comment.

In the meantime, NBC News has signed up another medical correspondent, Dr. Natalie Azar, on a part-time basis. Azar is a rheumatologist who teaches at New York University's Langone Medical Center and discusses medicine on local and national television shows.

She spoke about Ebola many times on NBC's newscasts in October, and in early November she was given the title of "NBC News medical contributor."

First Published: November 30, 2014: 4:35 PM ET

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Fewer shoppers hit the stores on Black Friday

NEW YORK (CNNMoney)

The National Retail Federation, which tracks customer visits to stores as well as sales, reported that 5.1 million fewer people were out shopping on Black Friday than last year. That was a decline of about 7%.

On Thanksgiving Day itself, when many of the largest retailers opened with doorbuster deals between 6 and 8 p.m., the retail group found that around 1.8 million fewer shoppers went out than last year.

Overall, traffic was also down over the long weekend: About 5% fewer shoppers visited stores from Thanksgiving through Sunday.

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The NRF gets its numbers from a survey of about 4,600 Americans.

But note that a separate report from Shoppertrak, which uses data from retailers rather than a survey of shoppers, actually found a 27% increase in Thanksgiving traffic over 2013.

Two things are certain: More people are shopping online, and the holiday deals (in stores and online) are less concentrated on the one four-day weekend than they used to be.

As a result, stores are bracing for "a marathon not a sprint," said Matthew Shay, president and CEO of the retail federation.

Americans are also spending less over the Thanksgiving weekend, the retail survey showed.

Shay said it was tough to predict whether consumers were spending less than they expected because they're concerned about the economy or because they believe better deals are to come. But he stood by his organization's prediction of a 4.1% increase in holiday spending over the whole season, which began on November 1 and runs through the end of December.

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Much of that will likely be driven by online spending.

Americans spent 14% more online on Thanksgiving than last year, according to data from IBM. Online shopping on Black Friday was up nearly 10%.

The National Retail Federation warned that sales numbers on Cyber Monday may also slump as retailers spread out their sales throughout the month.

"It's safe to assume that as consumer demand drives this 24/7 seamless, frictionless get-it-how-you-want-it environment that Cyber Monday will continue to evolve as well," Shay said.

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First Published: November 30, 2014: 4:59 PM ET

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Cyber Monday deals: Where to find them

NEW YORK (CNNMoney)

Target (TGT) is drawing customers into "Cyber Week." Amazon (AMZN, Tech30) is offering a slew of deals under the banner "Cyber Monday Deals Week." (A week that lasts eight days.) Best Buy (BBY) is dropping the time frame all together and offering "Cyber Savings."

Retailers are keenly aware that shoppers don't have to wait until they get into their offices on Monday to begin shopping the web. Online shopping picked up days ago, and climbed even on Thanksgiving day, when online sales climbed 14% over last year, according to IBM (IBM, Tech30).

The only real limit to the online shopping bonanza? At some point, the last order has to be hurried onto a truck so it arrives on your doorstep in time for Christmas morning.

Related: Black Thursday? Thanksgiving sales numbers growing

The mega online retailer Amazon launches its official Cyber Monday event on Sunday, when it promises to offer a new deal every 10 minutes. It is prominently advertising a 50% discount on some LeapFrog (LF) learning toys, a 40-inch HD Sony (SNE) TV for under $300 and $50 off the Nest Learning Thermostat. It is also having a fire sale on its unlocked Fire smartphone, which has been a major disappointment for the company.

Amazon said Monday proper tends to be its largest mobile shopping day of the year.

Televisions are big sale items at Best Buy and Target. Best Buy is offering up to 30% off some models, while Target slashed prices on some and offered free gift cards with others.

Many retailers are marking down TVs this season.

Walmart (WMT)'s cyber week began Saturday and offers discounts of up to 50% off. The top price cuts are available for items like small kitchen appliances and jeans. The retailer also offers a "Pay With Cash" option that allows customers without a credit or debit card to place orders online and pay in-store.

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Department stores and clothing retailers also offered deals, like 40% off at Gap (GPS) and Old Navy, up to 40% off clearance prices at Macy (M)'s, and 20% off many items at Kohl (KSS)'s.

Sears (SHLD), which is struggling to stay afloat and even closed dozens of stores before the holiday season, offered up to 70% off some tools, upwards of 40% off some televisions and 50% off some clothes. Its sister brand Kmart discounted clothing up to 25% and pared back prices on some electronics.

At a few stores, like Banana Republic, Cyber Monday isn't just on the web. That clothing retailer offered 40% off purchases both online and in-store.

Also picking up steam: Cyber Monday deals at hotels. And that isn't just a discount on the in-room WiFi. Some hotels, from the Carribbean to Las Vegas and D.C. to N.Y.C., are promoting limited-time discounts like 50% off of rooms.

First Published: November 30, 2014: 2:51 PM ET

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Madonna's 'Material Girl' look hits the auction block

NEW YORK (CNNMoney)

Several iconic pieces from Madonna's career and personal life are on the auction block, including the Marilyn Monroe-inspired dress, stole and jewelry featured in the 1984 "Material Girl" music video.

The dress is expected to go for $40,000-$60,000 and $4,000-$6,000 for the stole when the items go up for auction starting Friday in Beverly Hills.

Julien's annual Icons & Idols: Rock 'n' Roll auction has 700 items up for bid, including John Lennon's glasses, a T-shirt worn by Kurt Cobain, a guitar from David Bowie and belongings from Elvis Presley, Lady Gaga and more.

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But Madge is a top attraction of the auction, with 140 of her items up for sale, including a personal day planner, the inauguration dress she wore when she played Eva Peron in the movie "Evita" and her wedding dress and shoes from her marriage to Sean Penn. You can also get her signed, expired American Express credit card and the baseball uniform she wore in 1992's "A League of Their Own."

The deep pink satin gown had a starting bid of $20,000

"Very little of her stuff comes to auction now," said Martin Nolan, executive director of the auction house.

He said Julien's is looking to set records with the two-day auction that allows people to bid in-person, over the phone and online.

Bids come from all over the world, according to Nolan, but the face of bidders have changed significantly since 2005. "Back then, it was what we call fanatical people, the huge fans that would bid on items. Now, you still see some fans, but they don't have the big dollars that are needed. Museums are big buyers."

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A large portion of the items from The Queen of Pop up came from a private investment firm in the U.K. "They got together and pooled their money in 2007 and chose her as their blue chip icon," said Nolan. "They've now decided to liquidate their Madonna portfolio."

So how strong of a return on investment are celebrity-worn collectibles? In 2005, Julien's held a 200-lot auction of Marilyn Monroe's items that brought in $1 million. Today, Nolan said it would have sold for $10 million. "And that's being conservative." A skirt purchased in that auction for $1,500 sold for $50,000 two years ago.

First Published: November 7, 2014: 5:11 PM ET

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