Archive for April, 2014

Women Face Financial Woes in Retirement

Posted on April 29, 2014 by Saldutti

More women than men save for retirement, and women save a larger share of their earnings, but they will still likely be worse off when they retire because they earn less and spend more time out of the workforce, a new study says.  The study of the savings rates of about 9 million U.S. employees found that about 60% of the workers saved at a rate of about 7% of their earnings, according to the study released by ADP Research Institute. Most women – 74% – saved at an average rate of 7%, while most men – 66% – saved…

Should You Pay Off Your Mortgage Early?

Posted on April 28, 2014 by Saldutti

The clear advantages of paying off your mortgage as quickly as possible have changed quite a bit over the past few years. The urgency to pay it off has somewhat diminished, as interest rates have plummeted to historical lows. It’s no longer the black and white decision it was back when interest rates hovered between 6% and 9%, and even the 11% to 13% we saw a couple of decades ago. There are many advantages for paying down the ugly mortgage beast as soon as possible. But, before you go cutting a check to the bank, there is a pecking…

Retirement 101: Teach Them While They're Young

Posted on April 25, 2014 by Saldutti

If you’re investing for retirement or if you’re working toward that goal, we don’t need to explain how you’ll benefit from it. The mere thought of a secure retirement will be enough to keep you on track. But have you thought about how your money habits could affect your kids? We’re not talking just about inheritances, IRAs and mutual funds. We’re talking about instilling behaviors and character traits that will set them up to win with money! Share Your Journey – A recent study of college students showed that nearly all the students who consistently demonstrated good financial behaviors said…

Credit Cards: One is the Loneliest Number

Posted on April 24, 2014 by Saldutti

An uncluttered living room is admirable. An uncluttered wallet, however, might not be. While one credit card means only one bill, only one company to deal with, and only one set of rewards to memorize, it also has its downsides. According to John Ulzheimer, credit expert at CreditSesame.com, there are four main problems with having a single card: It might not be accepted everywhere – “If you have one card and come across a retailer that doesn’t accept that type of card – not everyon e accepts Discover or American Express, for instance – you run the risk of not…

The Richer You Are, the Longer You'll Live

Posted on April 23, 2014 by Saldutti

Money may not buy love, but it appears to buy years. Economist Barry Bosworth at the Brookings Institution crunched the numbers and found that the richer you are, the longer you’ll live. And it’s a gap that is widening, particularly among women. Mr. Bosworth parsed this data from the University of Michigan’s Health and Retirement Study, a survey that tracks the health and work-life of 26,000 Americans as they age and retire. The data is especially valuable as it tracks the same individuals every two years in what’s known as a longitudinal study, to see how their lives unfold. The…

Will ‘Easter Shift’ Leave Retailers With Egg on Face?

Posted on April 22, 2014 by Saldutti

Have you heard about the “Easter shift?” It refers to the timing of the Easter holiday, which can make stock picking in the consumer sector trickier than grabbing a handful of jelly beans. When it falls in March, like last year, the sales of all those goodies and spring clothes are counted in one quarter for many companies. When it lands in April, like this year, another quarter gets credit for much of the bounty. It’s not just the holiday itself, it’s the tendency for schools’ spring breaks to be clustered around Easter. Consider the case of John Duffey, Six…

$1 trillion student loan debt widens US wealth gap

Posted on April 21, 2014 by Saldutti

Here’s a sobering statistic – there are roughly 37 million young workers in the U.S. saddled with $1 trillion in student debt, who may never catch up with wealthy peers who began life after college free from the burden. The disparity, experts say, is contributing to the widening of the gap between rich and everyone else in the country. “If you graduate with a B.A. or doctorate and you get the same job at the same place, you make the same amount of money,” said William Elliott III, director of the Assets and Education Initiative at the University of Kansas….

Easter Will Be More EGGspensive in 2014

Posted on April 18, 2014 by Saldutti

As you prepare for your Easter feast Sunday, get ready for some sticker shock on some of the more common items you’ll need. Eggs – The price of eggs is at a historical high. When dying those eggs crazy colors for your egg hunt, you may want to handle them with a little more care than usual. The American Farm Bureau Federation’s latest Semi-Annual Marketbasket Survey finds the average price of eggs is $1.98 a dozen, up 8% from a year ago. One reason — global demand for eggs has been on the rise. The Bureau says exports have been…

Debt Near the Bottom of Parents' Financial Concerns

Posted on April 17, 2014 by Saldutti

America’s parents worry more about inflation and setting a good financial example for their kids than taking on too much debt, a survey shows. In T. Rowe Price’s 6th annual Parents, Kids & Money Survey, concern about debt ranked seventh among the eight financial worries parents were asked about. Just over half the parents (53%) worried about debt. The top two concerns of parents were the cost of things going up (72%) and setting a good financial example for their kids (69%). When it comes to spending, only 34% of these same parents use cash most or all of the…

Chances of Getting Audited by IRS Lowest in Years

Posted on April 16, 2014 by Saldutti

As millions of Americans raced to meet yesterday’s tax deadline, their chances of getting audited are lower than they have been in years. Budget cuts and new health care responsibilities are straining the Internal Revenue Service’s ability to police tax returns. This year, the IRS will have fewer agents auditing returns than at any time since at least the 1980s. Taxpayer services are suffering, too, with millions of phone calls to the IRS going unanswered. Better technology is helping to offset some budget cuts. If you report making $40,000 in wages and your employer tells the IRS you made $50,000,…