You wouldn't expect Microsoft to say it has a product that's set up to kill the laptop computer. After all the laptop computer and the PC are what built Microsoft into the colossus that it is.
But here's how Panos Panay described the new Surface Pro 3 tablet device at a New York press event. The new device is the tablet that can replace your laptop."
The Surface Pro 3 is thin — 9.1 millimeters thick. It's light — just 800 grams, and it's fast, especially if you buy the version with the Intel Core I7 processor. It has a 12-inch diagonal screen, comparable to Apple's standard iPad.
You can add a keyboard to it and a pen for writing personal notes (or doing the New York Times crossword puzzle). And, unlike Apple's iPad, the Surface Pro 3 is aimed not so much at the consumer-geek crowd (and others who can find other uses for it). Instead, it's aimed squarely first at the commercial market.
It comes loaded with Windows 8.1. You can subscribe to various Microsoft aps, and other software vendors are already building applications for it, said Panay, the corporate vice president in charge of the Surface family of devices.
A big question is if it's too pricey.
With Panay in New York was Michael Gough, an Adobe Systems vice president, who showed off how the new device can run Adobe's Photoshop.
A keyboard can be easily attached, and it has an adjustable kickstand that can be set to just about any angle.
But the larger point about the device is this: It was inevitable the moment that the iPad arrived that the tablet was where PCs were headed.
The iPad destroyed the market for low-end netbooks. It then cut deeply into sales of notebook computers generally. Apple was soon selling more iPads than the combined notebook sales for Dell Inc., Hewlett-Packard and others.
Apple has understood where the tablet was going. Vendors build keyboards for the device, and Apple worked with Microsoft to make Microsoft Office available to iPad users. Already, users have downloaded 27 million copies of the software. The free downloads lets users look at Word, Excel and PowerPoint presentations. To use the software after a one-month trial requires subscribing to Office 365 for $9.99 a month.
And now comes the Surface Pro 3, which claims from the outset to be a replacement for the laptop.
The big question for Microsoft is this: Can this device generate enough demand that it can carve out a significant market share. Maybe. The stock market seemed to like what it heard. Microsoft shares were off 7 cents or 0.2%, to $39.68 — on a day when the Dow Jones Industrial Average was down 138 points, or 0.8%, to 16,374.
There remains the thorny issue of pricing. To buy a Surface Pro 3 with an Intel Core i3 processor will run you $799. But it comes without a keyboard. A keyboard that doubles as a device cover will cost an additional $129.99. A pen for the device will cost $49. The top end of the product line, with the most powerful Intel chip, lists for $1,949. Add in the keyboard and pen, and it tops out at nearly $2,130.
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What that reinforces is the idea that corporate or institutional users are the primary market. And the question is if they will bite. Some have, including BMW Group, The Coca-Cola Co. and LVMH – Moët Hennessy Louis Vuitton.
A second question, posed by ZDNet's Mary Jo Foley, is what happened to what was supposed to a smaller version of the Surface, powered by chips designed by ARM Holdings. There was no mention of it Tuesday, even though there had been reports that Tuesday's presentation would introduce the smaller version — if it exists at all.
We should note that Intel seems to have gotten a victory from the new device. Its shares were unchanged at $26 on Tuesday. ARM Holdings was down $1.11, or 2.5%, to $42.83.
European Pressphoto Agency 
Karen Roach/ShutterstockAutomated portfolios are more professional than you may think. Do you have a 401(k) plan? If so, read on. Here are seven things I wish people knew about their 401(k) plans: 1. You can rollover when you leave. When you leave your employer, you can transfer your 401(k) plan to an individual retirement account -- and it is not a taxable event. This type of transfer is called a rollover. Many 401(k) participants think that any type of distribution from their 401(k) plan is taxable and subject to penalties. That isn't true. All plans allow rollovers to an established IRA account. Usually the check is made payable to the new financial institution as the custodian, with an "for benefit of," or FBO, to you. If you have a few 401(k) plans from former employers, I'd advise consolidating them into one IRA account. It will make it far easier to handle address and beneficiary changes, manage investments, and track distributions once you are retired. 2. Automated portfolios work. Most 401(k) plans today offer either a fund choice or an online interactive tool that will make the investment decisions for you. These types of automated portfolios are great choices. If it is a single fund, it may have a retirement year in the name of the fund, such as "Target-date 2030." In that case, pick the fund that corresponds with the approximate year you think you may retire. A single fund like this is a complete diversified investment that automatically allocates your money across many asset classes. If it is an online tool, take the time to walk through the steps and it should pick the portfolio for you. This type of system often results in something like "conservative, moderate, or moderately aggressive" as a result. Using such a tool delivers a complete professionally designed portfolio. These automated portfolios make far better choices than the random way many participants pick investments -- which often seems more akin to "eeny meeny miny moe." 3. Stable value funds are a good choice. As you get closer to retirement, you'll want some of your retirement money in a safe investment option. Stable value funds, which are offered within many 401(k) plans, are a good choice. Today they are paying higher interest rates than bank savings. They won't fluctuate like stock funds, and unlike bond funds, they shouldn't go down in value if interest rates rise. How much should you keep in such a safe choice? It depends on how close you are to retirement and how much you'll need to withdraw. For example, if you are retiring in two years, and know you'll need to withdraw $20,000 a year once retired, you ought to consider moving at least your first two to three years of future withdrawals into a safe investment option. In this example, that would be $40,000 to $60,000. 4. Age 55 is special. Most people think that if they take a withdrawal from a 401(k) plan before age 59½, a 10 percent early withdrawal penalty tax will apply. This isn't always true for 401(k) plans. There is a special provision in 401(k) plans for people who leave their employer after they reach age 55, but before they reach age 59½. This rule allows you to take withdrawals that are exempt from the penalty tax without having to use the substantially equal payment provision. Beware of someone who suggests you roll funds from a 401(k) to an IRA without first explaining the age 55 provision to you. Once you move funds from your 401(k) to your IRA, the age 55 penalty-free withdrawal provision no longer applies, and you'll have to wait until age 59½. 5. You have creditor protection. Your 401(k) plans are creditor-protected by law. This is why it can be foolish to use 401(k) money to avoid foreclosure, pay off debt or start a business. In the case of future bankruptcy, your 401(k) money is a protected asset. Don't touch your 401(k) money except for retirement. 6. Designated Roth accounts are great. More and more 401(k) plans are offering the ability to make Roth contributions. In a 401(k) plan, this is called a designated Roth Account. Such contributions, unlike a regular 401(k) contribution, are not tax-deductible, but they grow tax-free, and in retirement, your withdrawals will be tax-free. There are many people who would be better off making Roth contributions, but they don't consider it because they just assume they are better off getting a deduction today. This is not always true. Check to see if your plan offers a Roth option, and if so talk to your certified public accountant, tax preparer, or other financial adviser to see which choice they think would be best for you. 7. Company stock may have special tax treatment. If your 401(k) plan has an employee stock ownership plan, or ESOP, within it, and you own a lot of company stock, a special tax rule may apply to you. This tax rule is referred to as net unrealized appreciation, or NUA. At retirement, it enables you to distribute company stock and only pay ordinary income tax on the cost basis of the stock. Then, as you sell the stock off, you can typically pay tax on the gain at the capital gains tax rate, which is lower than the ordinary income tax rate. If the NUA tax rule applies to you, that doesn't automatically mean it will be to your benefit. But you ought to at least run an analysis to see if it would save you money. I've seen cases where using the NUA tax rules saved tens of thousands of dollars, and other cases where it offered no meaningful benefit. You won't know unless you look. .