Posted on June 30, 2011 by Erin
Investing in funds that hope for financial Armageddon? They’re a real thing and some investors believe they are a new necessity. Black swan funds, as they are often referred to, are in the simplest of terms, an insurance policy against a financial crisis. You pay money into a health plan hoping you don’t need to use the hospitalization coverage, but if you do, you know that you are covered. A Black Swan fund operates in a similiar way – you will lose the money that you’re putting into it at the time, but if anything ever happens, you stand to gain a pretty penny.
After all that has been happening with world markets in the past years, Black Swan funds sound like a must for any investor. As Zvi Bodie, a professor of finance at Boston University said, “In the last decade, we saw two stock market crashes, which wiped out any gains for investors over the decade and meant disaster for those who had to take their money out to meet big expenses at market lows.” Bodie believes that has in turn made current market investors more aware of risk. This heightened awareness could cause Black Swan funds to grow in popularity but as some point out, these funds are designed to protect against the last catastrophe – not the next one that lies ahead.
Would you put your money into these types of funds? Or do you think this is just another Wall Street fad?
Read more on Black Swan funds, here.
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Posted on June 29, 2011 by Erin
You and your spouse have been together for ages now. You’ve raised children and been together through thick and thin. Retirement will be nothing but simple and delightful. Well think again! There seems to be quite a large disconnect between couples and their retirement. Not only are people realizing that their spouses’ views of retirement may be a little bit country and theirs is a little bit condo-in-the-city, they are also beginning to realize that their views on when to actually retire also differ. In a study released today by Fidelity, it was found that 62 percent of preretirement couples disagree on when to stop working. And a whopping 73 percent of pre and post retirement couples can’t even agree on if they have a detailed retirement-income plan!
Think you and your spouse have it all figured out? Fidelity recommends sitting down with your significant other and discussing some major questions such as, what are your retirement lifestyle expectations, where do you want to live and are you both prepared for unexpected health care costs? Fidelity has even provided a six question couples quiz that is available to take. So even though you’ve navigated the waters together throughout the years, be prepared for retirement. It’s something that both of your deserve to enjoy equally.
Read the Fidelity survey or take the Couples Quiz.
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Posted on June 28, 2011 by Erin
In a recent study done by J.P. Morgan, it was found that a large number of Americans are ill-prepared when it comes to turning their retirement savings into income. The majority of those surveyed openly admitted to not understanding how their 401K plans work or how the money saved will turn into their retirement income when needed. The same study also found that a shockingly large two out of three people don’t know how much they should be saving for retirement. And almost half of the same people surveyed assume that outliving their retirement savings is a very real possibility.
Why are American’s so far behind with retirement savings? Some believe it has to do with the recession. When you have bills that need to be paid now, those will most likely take precedence over saving for the future. What do you think? Are YOU prepared for retirement? Why do you think so little people are? Let us know what you think!
Read J.P. Morgan’s report, “Searching for Certainty,” here.
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Posted on June 27, 2011 by Erin
Do you have back problems? If so, you’re not alone. It’s been estimated that up to 80 percent of Americans experience some sort of back pain in their lives. How can you help your aches and pains? You can start by following the advice your mom always gave you – stop slouching! Chin up and shoulders down will help you to maintain proper alignment. Work in an office? Force yourself to get up and stretch – remaining sedentary will cause your muscles to fatigue and the likelihood of body pain will increase. Exercises like pilates can help you strengthen your core stomach muscles (the core refers to those muscles that stabilize and align your back and abdominal). This will in turn help your posture. And according to a study that was recently published in the Journal of Social Psychology, people who have better posture have more more self-confidence. So sit up straight and feel better!
Read more tips on how to get rid of back pain in this article, “Sit Up Straight to Avoid Back Problems.”
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Posted on June 24, 2011 by Erin
This week, New Jersey lawmakers passed a bill that severely cuts the benefits of government workers and retirees. This new legislation not only decreases union’s collective bargaining rights, it also raises retirement ages, increases the amount workers must now pay for their health insurance and suspends cost-of-living (COLA) increases to retirees’ pension checks, The most shocking part of this bill is that it was passed in New Jersey, a state that is typically pro-labor with Democrats controlling both houses of the Legislature.
The move by New Jersey to strip workers of their previous benefits will save the state approximately $132 billion over the next 30 years. But many argue that the state is fixing the problem by hurting those who have worked hard their entire lives for their state. What do you think? Have union’s become out of control and it’s time to reign them back in to help fix budget problems? Or is this a case of the working class having to bear the brunt of a broken system?
Read more here in the article, “New Jersey Legislature Moves to Cut Benefits for Public Workers.”
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Posted on June 23, 2011 by Erin
Still wanting to get a Reverse Mortgage but worried about the recent news of Wells Fargo exiting the business? There’s no need to fear! According to Brian Lewand, Senior Vice President and Managing Director of MetLife, the nation’s third largest Reverse Mortgage competitor after Wells Fargo and Bank of America, is ramping up efforts to increase their growth in the market. Though they aren’t giving up their entire game plan just yet, it has been noted that they have begun to extend warehouse lines of credit to mortgage banking firms that originate reverse mortgages.
And MetLife isn’t the only company to do so. Peter Bell who heads up the National Reverse Mortgage Lenders Association has said that many new companies are moving into the Reverse Mortgage business.
Does the exit of the top two players in Reverse Mortgages still make you nervous? What are your opinions on Reverse Mortgages? Let us know your opinion!
Read the full article, here.
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Posted on June 22, 2011 by Erin
What do you do when you have multiple medical problems and no insurance? One man in North Carolina decided the solution was to rob a bank.
Richard Verone had struggled with a ruptured disk, a growth on his chest and problem with his left foot. After being laid off from his job of 17 years and working part time jobs that did not offer health insurance, Verone felt he had run out of options. So he walked into a bank, told the teller he was robbing them for $1 and then waited in the corner until the police came to arrest him. His entire plan was built on the hope of being sent to prison for three years – enough time to get his needed surgery and a release date that will coincide with his ability to collect Social Security.
Is this absolutely insane or is this what America’s healthcare system is coming to? So broken, that a person has to break the law just to get the care they need?
Posted on June 21, 2011 by Erin
Last week, AARP announced that it is in favor of “modest reductions” in Social Security benefits, which confused many. The powerhouse Senior Lobby group has always been one of the biggest opponents to any cuts to the program, which is why their new stance caught many by surprise. AARP still stands firmly by their position insisting that “Contrary to the misleading characterization in a recent media story, AARP has not changed it’s position on Social Security.”
So where does AARP stand? According to their CEO, A Barry Rand, exactly where they always have. He stated that, “We have maintained for years – to our members, the media and elected officials – that long term solvency is key to protecting and strengthening Social Security for all generations, and we have urged elected officials in Washington to address the program’s long-term challenges in a way that’s fair for all generations.” It seem the only change is that they are now opening up to the possibility of negotiations and getting a much needed dialogue started on the subject.
Do you agree with AARP or do you think they are wavering from their past stance?
Read the full New York Time’s article, here.
Read AARP’s official response to the story, here.
Optimize your Social Security benefits. Find out how here.
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Posted on June 20, 2011 by Erin
Many seniors retire to run away from their work-a-day life instead of running toward new goals and adventures. However, studies show that the healthiest (both mentally and physically) and happiest seniors are those that are actively engaged in purposeful activities.
In retirement, it is a good idea to create a daily schedule and to set goals for this time of your life.
. Do you want to wind down or gear up into new interests?
. Are there places you want to go?
. What experiences do you want?
. With whom do you want to spend your time?
Writing down these goals will automatically help you to accomplish them and insure that you are living your life to its fullest.
What’s Your Retirement Bucket List?
Posted on June 20, 2011 by Erin
As many of you have probably heard by now, last Thursday, Wells Fargo announced it will soon exit the Reverse Mortgage business. With this announcement and Bank of America’s same announcement back in February, many are wondering why exactly the two largest providers of the loan, backed out.
The best explanation of this is that the Reverse Mortgage loans were viewed as just too risky by these banks. A Reverse Mortgage allows people age 62 and older to access the equity in their home. The homeowner is required to continue to make payments of their property taxes and homeowner’s insurance – which is where Wells Fargo saw a problem. The banks are not allowed to asses the homeowner’s ability to continue to make these payments and unfortunately, many cannot afford to continue to make their payments. If the homeowner falls into default, the bank finds themselves responsible for the delinquent borrower’s payments. This risk proved too much for Wells Fargo. Fortunately, there are still many other companies that provide these much needed loans to seniors. Unfortunately, with fewer companies competing against each other, we could begin to see a rise in fees.
Wells Fargo will be taking new application for a Reverse Mortgage until June 30th.
Read more about why Wells Fargo decided to exit the Reverse Mortgage business, here.
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