Personal Finance News

Latest News About Personal Finance

If You’re So smart, Why Aren’t You Rich?

Leave a Comment

The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a report last year concluded that just eight men had a total wealth equivalent to that of the world’s poorest 3.8 billion people. Why should so few people have so much wealth?

Turns out getting rich is just chance. The wealthiest individuals are not the most talented. They are the luckiest. MIT Technology Review reported:

The conventional answer is that we live in a meritocracy in which people are rewarded for their talent, intelligence, effort, and so on. Over time, many people think, this translates into the wealth distribution that we observe, although a healthy dose of luck can play a role.

But there is a problem with this idea: while wealth distribution follows a power law, the distribution of human skills generally follows a normal distribution that is symmetric about an average value. For example, intelligence, as measured by IQ tests, follows this pattern. Average IQ is 100, but nobody has an IQ of 1,000 or 10,000.

Today we get an answer thanks to the work of Alessandro Pluchino at the University of Catania in Italy and a couple of colleagues. These guys have created a computer model of human talent and the way people use it to exploit opportunities in life…

The computer model charts each individual through a working life of 40 years. During this time, the individuals experience lucky events that they can exploit to increase their wealth if they are talented enough. However, they also experience unlucky events that reduce their wealth. These events occur at random…

When the team rank individuals by wealth, the distribution is exactly like that seen in real-world societies. “The ‘80-20’ rule is respected, since 80 percent of the population owns only 20 percent of the total capital, while the remaining 20 percent owns 80 percent of the same capital,” report Pluchino and co.

New and Free Way to Find Jobs on Facebook

1 Comment

In a move to compete with LinkedIn, Facebook is rolling out facebook.com/jobs to help people find jobs and help local businesses hire the right people with the ability to apply to jobs directly on Facebook.

Facebook already introduced job postings on Facebook in the US and Canada last year. Today, it expands the service to apply to jobs directly on Facebook to more than 40 countries.

Finding a job is quick, easy and free. You can find jobs in the Jobs dashboard at facebook.com/jobs and the “Jobs” option in the “Explore” section on mobile, by clicking the Jobs icon in Marketplace, or visiting the Jobs tab of a business’ Page. When you’re ready to apply for a role, you can create an application, which will populate with job history and other information in your Facebook profile. You can edit your application before you submit it. Once you finish applying, a Messenger conversation will open with the business’ Page so you can have direct contact with the employer and confirm when your information has been received.

Meanwhile, businesses can attract the right applicants and hire quickly, easily and affordably by posting job openings to a Jobs tab on their Page with details like job title, job type (full-time, intern, part-time), salary and more. Job posts will appear in multiple places on Facebook, including on a business’ Page, in the Jobs dashboard, in Marketplace, and in News Feed. Job posts can appear in News Feed similar to other Page posts, and businesses can choose to boost posts to reach the right candidates. Businesses can also manage their applications and communicate with applicants, including scheduling interviews and sending automated reminders, directly through Messenger.

1 in 5 Americans Have More Credit-Card Debt Than Savings

Leave a Comment

Some Americans’ finances are on very thin ice. One in five Americans say they have more credit-card debt than they do in emergency savings, according to a report published Thursday from the personal-finance company Bankrate. Another 12% said they had no credit card debt, but they also had no savings. Bankrate surveyed 1,000 people during early February. Maria LaMagna writes on MarketWatch:

But the report isn’t all bad news. More than half (58%) said they had more in emergency savings funds than in credit-card debt, the highest percentage Bankrate has ever had, tied with the amount who said this in 2015.

Financial experts typically recommend that all consumers have three to six months’ worth of expenses saved in an easy-to-access emergency fund, to guard against any unexpected expenses. Bankrate did not ask exactly how much those surveyed had saved…

Consumers trying to build an emergency fund should set up an automatic savings plan, said Greg McBride, chief financial analyst at Bankrate. That will put a certain percentage of their paycheck into a savings account. After determining the amount they can put in that fund for each paycheck, they can then pay debt with whatever funds they can spare in their budget.

“Saving is all about establishing a habit,” he said.

Home Prices Hit Records

Leave a Comment

Home prices jumped to all-time highs in almost two-thirds of U.S. cities in the fourth quarter as buyers battled for a record-low supply of listings. Bloomberg reports:

Prices for single-family homes, which climbed 5.3 percent from a year earlier nationally, reached a peak in 64 percent of metropolitan areas measured, the National Association of Realtors said Tuesday. Of the 177 regions in the group’s survey, 15 percent had double-digit price growth, up from 11 percent in the third quarter.

Home values have grown steadily as the improving job market drives demand for a scarcity of properties on the market. While prices jumped 48 percent since 2011, incomes have climbed only 15 percent, putting purchases out of reach for many would-be buyers.

The consistent price gains “have certainly been great news for homeowners, and especially for those who were at one time in a negative equity situation,” Lawrence Yun, the Realtors group’s chief economist, said in a statement. “However, the shortage of new homes being built over the past decade is really burdening local markets and making homebuying less affordable.”

What Are The New Trends In Health Insurance

Leave a Comment

Medical insurance is a huge topic. It was talked about continually during the presidential election in the United States. However, we have not seen any significant changes yet. 2018 promises changes. However, experts warn us not to expect all of the changes to be positive.

What the future holds

Citizens and companies are in a holding pattern. During the recession, many people lost their jobs. Others were kept on but their hours were reduced to allow the companies to take advantage of them to the maximum point before they would be eligible for full benefits.

There was a big swing in people going back to school, and gaining training to make them more valuable. Though the recession seems to be over, experts warn another may come very soon. People are being selective about the positions they take. They refuse to be underpaid and seek positions that will be less likely cut if the recession hits again.

Benefits offered to employees is equally as important to them as their salary. The average citizen had no idea how financially difficult it would be when we suddenly faced double and triple insurance premiums, extremely expensive co-pays and deductibles, and in some cases, the loss of company shared insurance expenses altogether.

Companies are staggering and trying to get to their feet to be in the position to attract good people. If a company has less than 50 employees they usually opt for insurance policies with high deductibles. But, by law, they do not have to offer health coverage. Companies with more than 50 employees must offer “acceptable” insurance and they are expected to pay at least ½ of the premium.

Trends for 2018

  • More Increases in health insurance rate. In 2017, insurance premiums went up dramatically in 2017. They will continue to rise. The increases vary from state to state. Some show a rise of 6%-7% and others show increases well into the double digits.
  • Companies will have to balance the premium increase with the need of retaining good employees. This will mean a narrowing of the illness coverages.
  • There will be a major drop in prescription drugs (more than 80) that are covered in 2018. There will be some that have generic replacements. You should check with your insurance company to see how this affects you, Here is a list of drugs that are being dropped from coverage.

  • More use of technology. Expect chronic patients to have more virtual care. Technology will be more available to interact with their doctors without the need of going to the office. Use of devices to monitor their health through virtual means. The goal is to reduce the amount of money it cost to help them maintain.
  • Use of technology to allow doctors to work without having to document everything that is said. You surely have noticed that doctors today show up in your examination room with a laptop computer. They are typing away as you describe your concerns. They have to do this because they simply do not have the time to see their patient load and document everything. Soon, doctors will be able to wear a special pair of goggles which will streamline the visit to a data center which will create the documentation. This is a highly efficient method which will save the doctor money and lower costs of visits.

These are just some of the trends showing up just in time for the new year. If this is all a bit confusing to you, this can help you. There is much work to do. It is clear that the rise in health care costs is a critical issue. There must be a ceiling on the rise in costs. American workers need healthcare they can afford. We are all waiting for Congress to make healthcare affordable and health service better. Maybe this will be our lucky year.

Protect Your Finances From Mortgage Scams

Leave a Comment

America is being hit hard by mortgage scams and, shockingly, many individuals make the initial contact with the scammers as they seek help on the internet. Buying a house is one of the biggest financial investments an individual will make in their lifetime, and obtaining a mortgage in order to secure your dream home can be difficult. This is why con artists target vulnerable individuals who yearn to get the keys to their own property. The internet is awash with scams, including identity theft, pension, banking, social media money scams, and mortgage scams to name a few.

Common mortgage scams

Mortgage scams come in many forms. One of the most common is refinancing scams where people are targeted or enticed to contact a scammer following notification of a not-to-be missed great deal. Often, a low interest rate is offered or the deal is offered for a short time only. This is to emotionally target individuals and ensure a quick response time. However, the information the victim is asked to provide can then be used by the scammers to commit identity theft.

An even scarier scam which involves a homeowner losing their home is deed theft. This scam involves fraudsters posing as professional mortgage advisors and attorneys who get you to sign your ‘new’ mortgage terms and conditions. However, hidden somewhere amongst all the paperwork will be a transfer of deeds document.

Reverse mortgage scams

Reverse mortgage scams have been designed by thieves to scam some of the most vulnerable people in society; the elderly. The two most common types of reverse mortgage scams are equity theft and foreclosure rescue. A recurring feature of reverse mortgage scams is deception. The thieves will say and do whatever is required to lure money from or to take an elderly individual’s property off them.

Other types of mortgage fraud

Mortgage fraud is something which is also committed by individuals applying for a mortgage application. By deliberately providing false information on their application, they increase their chances of obtaining a loan. In one case, a Florida man was handed a two year prison sentence and ordered to pay $960,020 after being found guilty of inflating his income, understating his liabilities and denying he’d filed for bankruptcy.

How to protect yourself

The best way to protect yourself from mortgage fraud is to stay educated and to trust your gut instinct. If an offer lands on your doorstep or email inbox which appears too good to be true, then it probably is, even if it appears to have come from one a well known financial institution. Never contact the phone number or email address on a unexpected piece of communication from your lender. Instead, use a contact number or address which you’ve contacted them on previously.

Mortgages are great financial products which offer so many people the opportunity to own their own home. However, there are individuals out there willing to shatter people’s dreams and take it all away from them. Therefore, it’s important to stay savvy and be on your guard when it comes to anything mortgage related.

Easy and Cheap Way to Be Happy: Think Like an Old Person

Leave a Comment

Want to be happy without spending a boatload of money? Think like an old person. The New York Times reported:

Older people report higher levels of contentment or well-being than teenagers and young adults. The six elders put faces on this statistic. If they were not always gleeful, they were resilient and not paralyzed by the challenges that came their way. All had known loss and survived. None went to a job he did not like, coveted stuff she could not afford, brooded over a slight on the subway or lost sleep over events in the distant future. They set realistic goals. Only one said he was afraid to die.

Gerontologists call this the paradox of old age: that as people’s minds and bodies decline, instead of feeling worse about their lives, they feel better. In memory tests, they recall positive images better than negative; under functional magnetic resonance imaging, their brains respond more mildly to stressful images than the brains of younger people.

John Sorensen, who liked to talk, brought cheer to every conversation, even those about wanting to die. Helen Moses and Ping Wong knew exactly what they wanted: for Ms. Moses, it was her daughter and Mr. Zeimer; for Ms. Wong, it was mah-jongg and the camaraderie it entailed, even if the other players spoke a different dialect or followed the rules of a different home region. Mr. Jones, Ms. Willig and Mr. Mekas all spent their energy on the things they could still do that brought them satisfaction, not on what they had lost to age.

Steps Involved In Financial Planning – Things You Need to Know

Leave a Comment

Planning for your finances, both presently and for the future, involves a lot of thinking, analyzing and understanding. It’s never just a quick and easy process; it involves a combination of a series of steps and measures taken so that you can move closer to your future financial goals. You have to ask yourself “Where do I see myself financially in the next 30 years?”.

When you have a family, your plans become even more detailed and well-defined, because you have more than one goal to keep in mind.

The following infographic from financialplanningplatform.com highlights and further helps with understanding the different stages of planning for a secure financial future:

Life Stages of Investment

Step one starts off with your education, right from high school and all the way till you complete your university studies and/or any special courses. Banks and private institutes offer a variety of schemes for grants and student loans that can help you fund your education if you don’t have any other savings kept aside.

Step two involves launching yourself out of education mode and into career mode. In a very competitive and dynamic world, choosing the right career path for yourself is crucial. You must chart out your options and make sure that your goals and career plans are aligned. Your career is what ultimately fuels your financial security, and funds your future investments. This is where you build your foundation, and make it sturdy for your future plans.

The next phase involves starting your own family and deciding to settle down. This is when your responsibilities increase and so does your need to have a more secure financial future. Hence, you start looking at insurance policies, home loans, life insurance, health coverage schemes and so on. Your main aim is security and safety for both you and your family members. Getting older involves more risks and liabilities, and the best thing to do is to protect yourself from any impending issues.

As your kids grow older, so do your expenses. It becomes your responsibility to help them secure a safe and valuable education like you did, and prepare them for future endeavors. College savings plans like 529 plans and other schemes assist you with keeping a stipulated sum of money aside for their educational needs and expenses. This also helps with training your kids on the importance of financial planning and keeping money aside for future benefits and goals.

Growing older also takes a toll on your health, and brings you closer to retirement. Hence, it’s your duty to make sure that you have a comfortable and satisfied life when you decide to retire. The best way to do this is to invest in a safe and smart retirement plan, right from your middle age. While spending your money and enjoying it is also important, investing in lucrative savings plans also allows you to live without any worries in your old age. The whole idea behind financial planning for the future rests on the fact that a penny kept aside now could turn into a much more valuable dollar in the future. So, start planning now, because your money only grows more valuable and important with time.

Author Bio: Adam Niel is an editor at Financial Planning Platform where you can find the best financial advisors in California. He writes about how you can practice effective financial spending habits for a more fulfilling and consistent lifestyle for you and your loved ones.

Richest One Percent Made 82% of Wealth Created Last Year

Leave a Comment

The gap between the super rich and the rest of the world widened as wealth continued to be owned by a small minority, according to Oxfam report.

The world’s richest one percent raked in 82 percent of the wealth created last year while the poorest half of the population received none, Oxfam said Monday, as the world’s elite prepared to mingle at the World Economic Forum in Davos.

A new report from the charity also found that the wealth of billionaires has grown six times faster than that of ordinary workers since 2010, with another billionaire minted every two days between March 2016 and March 2017.

The report, titled “Reward Work, not Wealth”, used data from Credit Suisse to compare the returns of top executives and shareholders to that of ordinary workers.

It found that chief executives of the top five global fashion brands made in just four days what garment workers in Bangladesh earn over a lifetime.

Apple to Invest $350 Billion in USA and Create 20,000 Jobs

Leave a Comment

Apple announced on Wednesday it will invest $350 billion in the U.S. economy over the next five years while creating 20,000 new jobs thanks to the new tax law.

The company expects to pay about $38 billion in taxes in order to repatriate virtually all of its $250 billion in overseas cash. It hopes to make investment and to contribute to he U.S. economy.

It said it expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States. This implies it will repatriate virtually all of its $250 billion in overseas cash.

“We have a deep sense of responsibility to give back to our country and the people who help make our success possible,” chief executive Tim Cook said in a statement. Here’s the full text:

Apple today announced a new set of investments to build on its commitment to support the American economy and its workforce, concentrated in three areas where Apple has had the greatest impact on job creation: direct employment by Apple, spending and investment with Apple’s domestic suppliers and manufacturers, and fueling the fast-growing app economy which Apple created with iPhone and the App Store. Apple is already responsible for creating and supporting over 2 million jobs across the United States and expects to generate even more jobs as a result of the initiatives being announced today.

Combining new investments and Apple’s current pace of spending with domestic suppliers and manufacturers — an estimated $55 billion for 2018 — Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.

Planned capital expenditures in the US, investments in American manufacturing over five years and a record tax payment upon repatriation of overseas profits will account for approximately $75 billion of Apple’s direct contribution.

“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy, ” said Tim Cook, Apple’s CEO. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”

Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made.

Growing Apple’s US Operations

Apple expects to invest over $30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one. Apple already employs 84,000 people in all 50 states.

The company plans to establish an Apple campus in a new location, which will initially house technical support for customers. The location of this new facility will be announced later in the year.

Over $10 billion of Apple’s expanded capital expenditures will be investments in data centers across the US. Over the last decade, Apple has invested billions of dollars in data centers and co-located facilities in seven US states, including North Carolina, Oregon, Nevada, Arizona, and a recently announced project in Iowa.

Today, Apple is breaking ground on a new facility in downtown Reno, which will support its existing Nevada facilities.

All of Apple’s US facilities, including offices, retail stores and data centers, are powered by 100 percent renewable energy sources like solar, wind and micro-hydro power, which Apple generates or purchases from local projects. The new campus announced today will also be powered entirely by green energy.

Investing in Apple’s Domestic Suppliers and Manufacturing Partners

Building on the initial success of the Advanced Manufacturing Fund announced last spring, Apple is increasing the size of the fund from $1 billion to $5 billion. The fund was established to support innovation among American manufacturers and help others establish a presence in the US. It is already backing projects with leading manufacturers in Kentucky and rural Texas.

Apple works with over 9,000 American suppliers — large and small businesses in all 50 states — and each of Apple’s core products relies on parts or materials made in the US or provided by US-based suppliers.

Preparing Students for the App Economy

Apple, which has a 40-year history in education, also plans to accelerate its efforts across the US in support of coding education as well as programs focused on Science, Technology, Engineering, Arts and Math (STEAM).

The iOS app economy has created more than 1.6 million jobs in the US and generated $5 billion in revenue for American app developers in 2017. With demand for coding skills stronger than ever, today there are more than 500,000 unfilled programming-related positions across the country, and the US Bureau of Labor Statistics predicts that by 2020 there will be 1.4 million more software development jobs than applicants qualified to fill them.

To address the coding skills gap and help prepare more people for jobs in software development, Apple created a powerful yet easy-to-learn coding language called Swift, the free Swift Playgrounds app and a free curriculum, App Development with Swift, which are available to anyone and are already being used by millions of students at K-12 schools, summer camps and leading community colleges across the country. Over 100,000 students and teachers have also attended coding classes at Apple retail stores.

Apple will expand these initiatives and add new programs to support teachers and teacher training. The company is also increasing funding for its ConnectED program, so students in historically underserved communities have a chance to learn app coding skills and enjoy other benefits of technology in the classroom.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Get Your Finances On Track With These Three Tips

Leave a Comment

Thirty four percent of American adults have zero savings. Surprising? Actually it is not considering that half of American families have no savings for retirement at all. Americans continue to rely on debt in their everyday lives. The result is that majority of them go through their lives being unable to repay that debt; with 73 percent of Americans dying with an average debt of $61,554. The year started off with the total credit card debt hitting $1.02 trillion and credit strategists have called for Americans to focus on reducing their credit card debt.

With APR rates at an average 19 percent, savings have taken a hit. If you are one of the many Americans looking to increase your savings, there are many small adjustments you can easily incorporate into your everyday habits. Here are three simple ways to bulk up your savings.

Embrace Homemade

The DIY trend continues to gain popularity amongst consumers and it certainly has its reasons. Adopting a homemade attitude to several parts of your daily lives can save you small amounts in each category. It may seem minimal in isolation but at the end of the month, you can surprised at the total shaved off.

Batch cooking and meal prep is often a popular choice for Americans looking to live a health conscious lifestyle. However another effect of embracing home cooked meals: it can save upto $2,000 a year. Those small daily purchases add up to a sizeable amount. So while that $1.50 daily cup of coffee weekdays may not seem a lot; over the course of a week you are looking at a savings of $7.50.

Homemade meals do not have to be boring or bland either. With many online resources such as recipes, you can easily make delicious healthy lunches and sweet tooth treats.

DIY does not apply to just your meals but can also extend to other areas including homemade gifts and getting crafty with your home and car repairs yourself. Basic maintenance tasks such as oil changing and testing of your tyre pressures can easily be done yourself, saving you a pretty penny annually. By learning the basics of car maintenance, you not only save money but you are also better prepared in event of a breakdown.

Consider The Cash Envelope System

If you are struggling to get out of debt, one of the first things to do is look at your spending and where your money is going. The cash envelope system can help you get your finances in shape and allows you to achieve those savings goals while actually seeing how your cash is spent daily or weekly.

Every month, money is allocated into your various envelopes such as mortgage and groceries. The principle behind it is that you stick to using your allocated cash and when it has finished, you would have to wait until the next replenishment date. The envelope system is a great addition after creating a budget and allows you to identify how to best spend your money. Bonus point; your access to credit cards are limited which avoids your debt increasing further.

Think About It

Fifty four percent of Americans spend over $100 on impulse buys. Afterwards, 52 percent of women and 46 percent of men regretted their purchases. Instant gratification is a common mistake amongst shoppers especially those with credit cards in hand. By taking a few days (up to 30 days) to mull over the purchase, you can find often that you will change your mind about wanting the item. The end result is money saved on another impulse buy.

So get started on increasing your retirement savings and knocking down those credit card debts. With these three simple tricks, it is easier than ever.

Warren Buffett Predicts “Bad Ending” for Cryptocurrencies

Leave a Comment

With cryptocurrencies still in the news, tumbling 10 percent to 20 percent in recent days thanks in part to a change in calculating how the coins are valued, the debate rages on as to whether bitcoin, ethereum, ripple, bitcoin cash and litecoin are, in fact, money.

The Oracle of Omaha, Warren Buffett, said on CNBC that the speculation in bitcoin, and other cryptocurrencies, “will have a bad ending.”

CNBC senior analyst Ron Insana writes:

I am predisposed to view them as just speculative tokens in a cryptocurrency bubble that has inflated more quickly than any other in financial market history. Admittedly I’m green with envy for failing to foresee the explosive rally in the price of bitcoin when it was first brought to my attention several years ago. Having said that, there are many things I find quite ironic about how bitcoin and other “cryptos” are described. First, they are largely denominated, or discussed, in U.S. dollar terms.

If the dollar is archaic, as the crypto-enthusiasts believe, why not speak only in crypto-terms…? Because the dollar remains the reserve currency of the globe. Its usage remains widespread, accounts for roughly 65 percent of all global economic transactions.

It’s much easier to buy and sell dollars, stocks or commodities than it is to trade bitcoin and its brethren. The conversion of one crypto to another is relatively easy on these embryonic exchanges. But getting your digital wealth converted into cold hard cash is more problematic… And while the growth has been impressive, it remains very difficult to walk into any establishment and exchange a digital token for goods or services.

Walmart Raises Hourly Wage to $11 After Tax Reform

Leave a Comment

Walmart Stores Inc., the largest private U.S. employer, plan to raise its starting hourly wage to $11 and to give bonuses to employees to stay competitive in a tightening labor market.

Taking advantage of the recently passed tax reform that lower the corporate rate from 35% to 21%, Walmart passes on the riches to its employees to improve its image amid pressure to bolster minimum wages.

“Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.,” Chief Executive Officer Doug McMillon said in the statement.

The Bentonville, Arkansas-based retailer has more than 1 million U.S. hourly employees. Many of them will be benefited from the $11 minimum hourly wage. The wage increase takes effect in February and will cost $300 million on top of wage hikes that were already planned.

Walmart said the one-time bonuses is based on seniority and will cost the company $400 million Employees who have worked for at least 20 years will get the full $1,000.

The company is also boosting its paid maternity leave policy for full-time hourly workers to 10 weeks and increasing its paid paternity leave policy to six weeks.

Walmart would also offer financial help to employees who are seeking to adopt children.

37% of Gen X Say They Won’t Be Able to Afford to Retire

Leave a Comment

Adam Shell reported for USA Today:

Add Gen Xers to the long list of Americans who fear they won’t have a sizable enough nest egg to retire.

Nearly four out of 10 (37%) of Generation X — those born between 1965 and the late 1970s — say they would like to stop working for good and “fully retire” someday, “but will not be able to afford to,” a new survey from TD Ameritrade, an online broker based in Omaha, found.

Other gloomy Gen X retirement findings:

  • 43% say “they are behind” in their savings.
  • Half (49%) are “worried about running out of money” once they leave the workforce.
  • Nearly two out of 10 (17%) say they “aren’t saving or investing for anything.”
  • Only a third expect to be “very secure” in retirement — vs. nearly half of Baby Boomers.

Credit Card Debt Hits New Record

Leave a Comment

Americans credit card debt has just hit a disturbing record of $1.02 trillion according to the federal reserve. USA Today reported:

Americans’ outstanding credit card debt hit a new record in November, highlighting a more confident U.S. consumer but also flashing a warning signal of potential trouble down the road.

Revolving credit, mostly credit cards, increased by $11.2 billion to $1.023 trillion, the Federal Reserve said Monday. That nudged the figure past the $1.021 trillion highwater mark reached in April 2008, just before the housing and credit bubbles burst. Over the past year, revolving credit has surged by $55.1 billion, or 5.7%, according to the Fed and Contingent Macro Research.

“It’s a potential early warning sign but not a financial stability issue” for the broader economy, UBS Credit Strategist Stephen Caprio says.

“People should make 2018 the year they focus on knocking down their credit card debt,” says Matt Schulz, senior industry analyst for CreditCards.com. With the Federal Reserve continuing to raise interest rates, “that credit card debt is going to grow faster and faster,” siphoning off money Americans should be putting aside for retirement,” Schulz said.

“It’s really important that folks knock down that credit card debt when times are good.”