It’s pretty difficult to think of any positives that have come out of the Great Recession. But there is one – a good dose of reality. In a new study put out this week by Age Wave and SunAmerica, it was shown that 8 out of 10 Americans are more cautious than they were before the recession when it comes to their finances. Prior to the recession, it wasn’t uncommon for people to blindly invest without knowing or understanding their risks. Most of the time if the opportunity for a big payout was there, people would invest without understanding the risk they were taking. Now it appears Americans are shunning big risk investments and instead preferring low risk options with guaranteed returns.
Do you think Americans have actually learned their lesson because of the recession? Or do you think this is a temporary mindset that will be lost as soon as the market is up and stable again?
Read the full SunAmerican and Age Wave study, here.
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Did you know that almost two out of every 10 dollars that went into American’s wallets last year came directly from the US Government? Seems like a lot, right? With payments from unemployment, Social Security and food stamps, it quickly added up. And folks in states where the recession hit the hardest like Arizona, Florida, etc, saw even more money coming from the government. Unfortunately for many, these benefits are set to run out by then end of this year. The extension granted by Congress last year that allowed unemployment benefits to be paid up until 99 weeks is scheduled to come to an end this December. This spells trouble for people who live in places where job creation simply isn’t happening.
Have you ever been involved in a scam? According to the Washington-based Investor Protection Trust, 1 out of 5 Americans over the age of 65 has been. That comes out to more than 7.3 million seniors being taken advantage of financially!
Do you think it’s a wise idea to take part of your retirement savings to purchase an annuity? That’s what the US Government Accountability Office (GAO) recommends. People are living longer and it’s no secret that Social Security is nearly impossible to live on as a primary source of income. The GAO interviewed financial experts who recommend that in order for retirees to cover the expenses they may encounter further down the line, they should delay Social Security benefits, work as long as possible to continue to save and to systematically draw down their savings to purchase an annuity.
If something were to happen to you today, would your loved ones be able to access your important financial documents? Or would they be left scrambling for months attempting to locate insurance policies and bank accounts? To make life easier for you and those you love, here is a list of 25 documents that you need to keep ready and organized:
