Judge orders Paul Ceglia to pay Facebook $100,000 in fees

Ceglia will have to reimburse Facebook for more than $89,000 in legal and expert fees, plus nearly $7,000 for related travel.

NEW YORK (CNNMoney) -- A federal judge has ordered Paul Ceglia, an upstate New York man who claimed he's owed 50% of Facebook, to pay the social network nearly $100,000 in legal and travel fees.

The order came after Ceglia canceled 10 planned depositions in July and August at the last minute, after Facebook had already paid its lawyers to prepare for and travel to the depositions. Seven were scrapped with less than 48 hours' notice, and three were canceled with less than 24 hours' notice.

As punishment, Ceglia will have to reimburse Facebook for more than $89,000 in legal and expert fees, plus nearly $7,000 for related travel.

The bizarre Ceglia-Facebook legal saga began in July 2010, when Ceglia filed suit in New York claiming that he paid Facebook founder Mark Zuckerberg to build a website similar to what became Facebook, and that they agreed to split the company. Both Facebook (FB) and Zuckerberg have strenuously denied Ceglia's claims.

Ceglia's credibility took a big hit last month when federal agents arrested him on charges of perpetuating a "multi-billion-dollar scheme" to defraud Facebook. If convicted, Ceglia faces up to 40 years in prison.

The government's complaint against Ceglia echoes Facebook's accusations. Ceglia "doctored, fabricated, and destroyed evidence to support his false claim," according to a statement from the U.S. attorney's office. The complaint accuses Ceglia of altering a contract and inventing emails that didn't exist.

This week a federal jury indicted Ceglia on the fraud charges. His lawyer, Dean Boland, also filed a motion to withdraw from the case -- although Ceglia is fighting to keep him. Boland did not return a call seeking comment.

Ceglia has already lost several legal teams in the past. A judge will have to decide whether Boland will be allowed to leave the case.

First Published: November 30, 2012: 12:05 PM ET

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What's my retirement 'Number'?

NEW YORK (CNNMoney) -- What number do we need to hit to retire comfortably? $1 million, $2 million, more? -- Jim Rodgers, Madison, Wisc.

Your question is timely: Mutual fund titan Fidelity recently released its estimate of how much people should have in savings to retire. The Number: eight times final salary.

That figure caught my attention because it's a lot lower than most targets you see. Just last month MONEY recommended you shoot for a nest egg of 12 times your income by retirement.

These numbers vary for many reasons, which I'll get into below. But the real issue here is that no single figure can possibly reflect your specific financial circumstances. At best this kind of number is a ballpark estimate for how much you should save, not a substitute for planning. Before you use one as even a rough guide, though, you should know what goes into it.

Fidelity assumes retirement at age 67 and figures your savings must last 25 years. We reckon you'll retire at 65 and want your savings to support you for 30 years. Those two more years on the job, which can boost your Social Security check by 15% to 20%, plus the fact that your savings don't have to last as long, shrinks your target.

Related: Why high-income savers need to put more away now

Another variable is how much you'll draw from your savings. Fidelity aims to provide 85% of your after-tax income, an approximation of what you were actually spending. After estimating how much Social Security will provide, the number crunchers calculate your withdrawals. With a $75,000 salary at retirement, you'd need to take just over $35,000 from your savings the first year.

This methodology seems reasonable to me, but then things get tricky. Pulling $35,000 from a $600,000 portfolio ($75,000 times eight) represents a withdrawal rate of almost 6%. To have a reasonable chance of your savings lasting 25 to 30 years, most advisers suggest something closer to 4%.

When I asked Fidelity senior vice president Steve Feinschreiber for the probability that a portfolio would last 25 years starting with a near-6% withdrawal rate, he estimated it "very roughly" at 70%. A Morningstar retirement-income calculator put the likelihood at about 50%.

Related: Can I afford to retire early?

Finally, the higher your income, the less of your salary Social Security will replace and the more you'll have to withdraw. In fact, Fidelity concedes that with a six-figure income your target might have to be higher than eight.

To be safe, I'd recommend you shoot to save 10 to 12 times your salary. Better yet, use an online tool like Fidelity's own Retirement Income Planner or T. Rowe Price's Retirement Income Calculator to get an estimate of your retirement readiness.

Look at The Number if you want. Just don't pin your fortunes on any single one.

First Published: November 30, 2012: 12:28 PM ET

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European bailout funds downgraded

The European Union flag flies amongst member countries' national flags in front of the European Parliament in Strasbourg, France.

NEW YORK (CNNMoney) -- Another day, another European downgrade.

Ratings agency Moody's announced a downgrade Friday of the continent's main bailout vehicle, the European Stability Mechanism, knocking it one notch from prized Aaa status to Aa1.

The ESM, which was finalized in October, is a bailout fund designed to have a lending capacity of €500 billion that can issue bonds and also receives funding from European member states. It was conceived as an eventual replacement for the European Financial Stability Facility, which has backed bailouts for Greece, Portugal and Ireland.

The EFSF received a similar one-notch downgrade Friday.

Moody's said the moves were driven by its downgrade of France earlier this month from Aaa to Aa1. France is the second-largest contributor to the two bailout vehicles after Germany, kicking in roughly 20% of the funding for each. Moody's said there was "a high correlation" between the creditworthiness of the bailout funds and that of their largest contributors.

The agency maintained its negative outlook for both the ESM and EFSF, meaning further downgrades are possible.

Klaus Regling, managing director of the ESM and CEO of the EFSF, called the downgrades "difficult to understand."

"This rating action does not inhibit ESM or EFSF in any way," he said in a statement Friday night.

Related: Europe's jobless lines keep growing

In downgrading France earlier this month, Moody's cited the country's fiscal challenges, weak growth prospects and exposure to additional eurozone shocks.

Yet Moody's said France was still in good shape when compared to its neighbors, citing its large and diverse economy and praising its commitment to structural and fiscal reform. France's borrowing costs remain low, with the country's 10-year bond yielding around 2% in recent months, suggesting investors do not view the country as a credit risk.

Fellow ratings agency Standard & Poor's downgraded France from AAA back in January.

First Published: November 30, 2012: 6:07 PM ET

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Judge orders Paul Ceglia to pay Facebook $100,000 in fees

Ceglia will have to reimburse Facebook for more than $89,000 in legal and expert fees, plus nearly $7,000 for related travel.

NEW YORK (CNNMoney) -- A federal judge has ordered Paul Ceglia, an upstate New York man who claimed he's owed 50% of Facebook, to pay the social network nearly $100,000 in legal and travel fees.

The order came after Ceglia canceled 10 planned depositions in July and August at the last minute, after Facebook had already paid its lawyers to prepare for and travel to the depositions. Seven were scrapped with less than 48 hours' notice, and three were canceled with less than 24 hours' notice.

As punishment, Ceglia will have to reimburse Facebook for more than $89,000 in legal and expert fees, plus nearly $7,000 for related travel.

The bizarre Ceglia-Facebook legal saga began in July 2010, when Ceglia filed suit in New York claiming that he paid Facebook founder Mark Zuckerberg to build a website similar to what became Facebook, and that they agreed to split the company. Both Facebook (FB) and Zuckerberg have strenuously denied Ceglia's claims.

Ceglia's credibility took a big hit last month when federal agents arrested him on charges of perpetuating a "multi-billion-dollar scheme" to defraud Facebook. If convicted, Ceglia faces up to 40 years in prison.

The government's complaint against Ceglia echoes Facebook's accusations. Ceglia "doctored, fabricated, and destroyed evidence to support his false claim," according to a statement from the U.S. attorney's office. The complaint accuses Ceglia of altering a contract and inventing emails that didn't exist.

This week a federal jury indicted Ceglia on the fraud charges. His lawyer, Dean Boland, also filed a motion to withdraw from the case -- although Ceglia is fighting to keep him. Boland did not return a call seeking comment.

Ceglia has already lost several legal teams in the past. A judge will have to decide whether Boland will be allowed to leave the case.

First Published: November 30, 2012: 12:05 PM ET

22.16 | 0 komentar | Read More

What's my retirement 'Number'?

NEW YORK (CNNMoney) -- What number do we need to hit to retire comfortably? $1 million, $2 million, more? -- Jim Rodgers, Madison, Wisc.

Your question is timely: Mutual fund titan Fidelity recently released its estimate of how much people should have in savings to retire. The Number: eight times final salary.

That figure caught my attention because it's a lot lower than most targets you see. Just last month MONEY recommended you shoot for a nest egg of 12 times your income by retirement.

These numbers vary for many reasons, which I'll get into below. But the real issue here is that no single figure can possibly reflect your specific financial circumstances. At best this kind of number is a ballpark estimate for how much you should save, not a substitute for planning. Before you use one as even a rough guide, though, you should know what goes into it.

Fidelity assumes retirement at age 67 and figures your savings must last 25 years. We reckon you'll retire at 65 and want your savings to support you for 30 years. Those two more years on the job, which can boost your Social Security check by 15% to 20%, plus the fact that your savings don't have to last as long, shrinks your target.

Related: Why high-income savers need to put more away now

Another variable is how much you'll draw from your savings. Fidelity aims to provide 85% of your after-tax income, an approximation of what you were actually spending. After estimating how much Social Security will provide, the number crunchers calculate your withdrawals. With a $75,000 salary at retirement, you'd need to take just over $35,000 from your savings the first year.

This methodology seems reasonable to me, but then things get tricky. Pulling $35,000 from a $600,000 portfolio ($75,000 times eight) represents a withdrawal rate of almost 6%. To have a reasonable chance of your savings lasting 25 to 30 years, most advisers suggest something closer to 4%.

When I asked Fidelity senior vice president Steve Feinschreiber for the probability that a portfolio would last 25 years starting with a near-6% withdrawal rate, he estimated it "very roughly" at 70%. A Morningstar retirement-income calculator put the likelihood at about 50%.

Related: Can I afford to retire early?

Finally, the higher your income, the less of your salary Social Security will replace and the more you'll have to withdraw. In fact, Fidelity concedes that with a six-figure income your target might have to be higher than eight.

To be safe, I'd recommend you shoot to save 10 to 12 times your salary. Better yet, use an online tool like Fidelity's own Retirement Income Planner or T. Rowe Price's Retirement Income Calculator to get an estimate of your retirement readiness.

Look at The Number if you want. Just don't pin your fortunes on any single one.

First Published: November 30, 2012: 12:28 PM ET

22.16 | 0 komentar | Read More

European bailout funds downgraded

The European Union flag flies amongst member countries' national flags in front of the European Parliament in Strasbourg, France.

NEW YORK (CNNMoney) -- Another day, another European downgrade.

Ratings agency Moody's announced a downgrade Friday of the continent's main bailout vehicle, the European Stability Mechanism, knocking it one notch from prized Aaa status to Aa1.

The ESM, which was finalized in October, is a bailout fund designed to have a lending capacity of €500 billion that can issue bonds and also receives funding from European member states. It was conceived as an eventual replacement for the European Financial Stability Facility, which has backed bailouts for Greece, Portugal and Ireland.

The EFSF received a similar one-notch downgrade Friday.

Moody's said the moves were driven by its downgrade of France earlier this month from Aaa to Aa1. France is the second-largest contributor to the two bailout vehicles after Germany, kicking in roughly 20% of the funding for each. Moody's said there was "a high correlation" between the creditworthiness of the bailout funds and that of their largest contributors.

The agency maintained its negative outlook for both the ESM and EFSF, meaning further downgrades are possible.

Klaus Regling, managing director of the ESM and CEO of the EFSF, called the downgrades "difficult to understand."

"This rating action does not inhibit ESM or EFSF in any way," he said in a statement Friday night.

Related: Europe's jobless lines keep growing

In downgrading France earlier this month, Moody's cited the country's fiscal challenges, weak growth prospects and exposure to additional eurozone shocks.

Yet Moody's said France was still in good shape when compared to its neighbors, citing its large and diverse economy and praising its commitment to structural and fiscal reform. France's borrowing costs remain low, with the country's 10-year bond yielding around 2% in recent months, suggesting investors do not view the country as a credit risk.

Fellow ratings agency Standard & Poor's downgraded France from AAA back in January.

First Published: November 30, 2012: 6:07 PM ET

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Stocks stuck on fiscal cliff treadmill

NEW YORK (CNNMoney) -- U.S. stocks opened little changed Friday as investors remain sidelined by political gridlock in Washington.

Investors have been grappling with uncertainty as lawmakers and President Obama engage in brinksmanship over year-end tax hikes and spending cuts. The so-called fiscal cliff could harm the economy at a time when the outlook for growth is already in question.

Economic data released Friday showed personal income remained unchanged in October, while spending declined by 0.2% in the month.

"That's a concern because the consumer has been a pillar of the economy," said Doug Cote, chief market strategist at ING Investment Management. "The numbers were clearly below consensus and the market didn't like that."

The Dow Jones industrial average, the S&P 500 and the Nasdaq all hovered near the break-even point.

Chicago's Purchasing Manager Index, a barometer of manufacturing activity in the area, is due shortly after trade begins.

Meanwhile, lawmakers in Congress have made "no substantive progress" in the fiscal cliff talks, Speaker John Boehner said Thursday. That came after Boehner said Wednesday that he's "optimistic" that a compromise will be reached "sooner rather than later."

Related: America's debt challenge

Despite the mixed signals, U.S. markets ended in positive territory on Thursday.

Few stocks made big moves in early trading Friday, though shares of St. Jude Medical (STJ, Fortune 500) were higher after the hospital's board authorized a $1 billion stock buyback. Yum! Brands (YUM, Fortune 500) sank after the firm softened its expectations for China, predicting same-store sales in that key market would decline 4% in the fourth quarter.

Zynga (ZNGA) shares slid 9% early Friday, after tumbling 13% after-hours Thursday on news that the terms of its deal with Facebook (FB) had substantially changed.

Fear & Greed Index

Research firm NPD Group reported sales of PCs running Microsoft (MSFT, Fortune 500) in the four weeks ended November 17 dropped 21% from the previous year. Microsoft released its new operating system, Windows 8, on October 26.

Verisign (VRSN), the company that makes money off the .com registration, said it reached a new agreement with the Commerce Department that bars future price increases.

Asian markets played catch-up Friday, but were also helped by the approval of a new stimulus package in Japan and expectations of strong Chinese factory data due over the weekend. Extending weekly gains, the Nikkei rose 0.48%, the Hang Seng advanced 0.49% and the Shanghai Composite jumped 0.85%.

European stocks were firmer in afternoon trade, despite news that eurozone unemployment hit a new record in October.

In other overseas news, the pace of economic growth in India slowed during the latest quarter. The country's GDP, the broadest measure of a nation's economic health, grew at a rate of 5.3%.

The dollar slipped against the euro, but was firmer against the British pound and Japanese yen.

First Published: November 30, 2012: 9:47 AM ET

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