Sam Knight at Bloomberg reviews a new book on financial literacy that debunks the ideas of some of America’s most renowned financial experts. Despite the vast increase in financial advisers and planning resources, author Helaine Olen contends that many widespread ideas are simply false. For example, her book dispels the famous notion that forgoing that… Read More
Estate planning for every age (as reported by G.M. Filisko via bankrate.com)
Each stage in one’s life presents a different set of circumstances for estate planning. This detailed article outlines exactly what steps should be taken at each of life’s major turns—from being young and carefree and leaving the major financial or medical decisions to parents or guardians—to life as a retiree and naming a power of… Read More
Company’s change to 401(k) plans show need for savings in employee benefits (as reported by Sarah Frier via bloomberg.com)
In what is currently uncommon, IBM announced last week that it will switch to an annual lump sum contribution to its employee 401(k) retirement plans. This change will reduce IBMs retirement contribution expenses by millions. Being one of the largest companies in the world with over 400,000 employees, this change may well spread to other… Read More
Shopping for a checking account (as reported by Elizabeth Dexheimer via bankrate.com)
Consumers are facing some hard decisions when it comes to finding the right bank account. As a result of the recession and new regulations on banks, fees are on the rise. When looking for a secure place to store one’s money, consumers should do some serious research as the fees and requirements vary widely from… Read More
Scams rise after natural disasters (as reported by Paul Wagenseil via yahoo.com)
It is an unfortunately common occurrence—when people are already reeling from a natural disaster, another blow strikes—the scam artist. After many natural disasters, including the most recent Hurricane Sandy, there is a sharp increase in fraudulent activities. This article explains what people should be weary of at this time of crisis—from price gouging to false… Read More
The zip code’s influence on credit scores (as reported by Minda Zetlin via creditcards.com)
The region of the country that you live in could be affecting your credit score. That is according to Experian, one of the three leading credit bureaus. A recent report Experian released details the average credit scores for cities around the U.S., showing that local economic conditions, including unemployment levels, education levels, public perception of… Read More
U.S. taxes, a global comparison (as reported by Roberton Williams via taxpolicycenter.org)
Do Americans pay too much in taxes or too little? According to the Organization for Economic Cooperation and Development (OECD), U.S. taxes are low in comparison to other developed countries. In 2008, U.S. taxes were 26% of Gross Domestic Product (GDP), while the average for the 33 member countries was 35%. The highest percentage went… Read More
Credit default rates dropping (as reported by Anthony Mason via cbsnews.com)
Like many Americans, Sherry Maffia is working hard to pay off her debts. It was a slow and steady process but by December she will be debt free. A recent financial study showed that more and more people are managing to get rid of their debts. The study showed that the default rate for mortgages… Read More
The case for financial literacy as a school subject (as reported by Chris Kissell via bankrate.com)
Annamaria Lusardi. Ph. D., points out that financial literacy should be a main subject in school, such as math, science or history. She emphasizes that schools should offer financial literacy to their students, instead of leaving this subject to their parents. It’s proven that even many parents aren’t financial literate and hence they are unable… Read More
Investing for beginners! (as reported by kiplinger.com)
Despite the dismal performance of the stock market in recent years, over the long term investing, on average, does produce a return of 7-9%. Many people are intimidated about where to start when it comes to investing. In this article, Kiplinger outlines the three first steps to investing—setting goals and adopting a strategy, making investing… Read More