Translating Savings to Retirement Income

"Determining how much money one will need in retirement is a mathematically and psychologically daunting task for many Americans. But new research has landed on a deceptively simple strategy for prodding workers to save.
Employees in an experiment at the University of Minnesota saved more for retirement after researchers provided them with a personalized chart with information similar to that shown below. Each employee’s chart translated a $100, $200, or $500 contribution, made every other week, into the amount of income each of these contributions would generate annually once they retired. If they saved more, they could see that it translated to more retirement income." Learn more about this concept at the Center for Retirement Research's "Squared Away Blog" and consider what it means to your own life: http://squaredawayblog.bc.edu/squared-away/translating-savings-to-retirement-income/

Payday Loans Cost the Economy

I expect most readers of this blog know that payday loans are toxic for consumers; unfortunately our legislators are more heavily influenced by industry lobbyists than research. Perhaps this data on the negative impact on the economy will hold some weight. “Payday loans cost the U.S. economy nearly $1 billion and thousands of jobs in 2011, according to a report from the Insight Center for Community Economic Development.”

“The study says that the burden of repaying the loans resulted in $774 million in lost consumer spending and 14,000 job losses. Bankruptcies related to payday loans numbered 56,230, taking an additional $169 million out of the economy.”  Read more at: http://www.cnbc.com/id/100701516

Financial Planning for the Middle Class

USA Today has an article, “Middle class struggles to get good financial advice,” by Christine Dugas that addresses how financial advisors and websites are beginning to cater to the needs of the middle class.  The article contains links to some great websites and resources. Check it out: http://www.usatoday.com/story/money/personalfinance/2013/05/05/middle-class-financial-advice/2090441/

Social Security retirement planning video

The "How Social Security Can Help You Plan for Retirement," video is about half an hour. You can view it (as well as other great offerings) at www.socialsecurity.gov/webinars

Start Early to Take Charge of Your Financial Future

An April 30 webinar will provide tips and tools to help college seniors and young workers learn to budget for today's needs and tomorrow's goals. "Start Early to Take Charge of Your Financial Future" will be held from 3-4 p.m. EDT on Tuesday, April 30. Participants will receive practical guidance and resources to assist with budgeting, managing debt from student loans and credit cards, saving and investing for short and long-term goals, making the most of employer-sponsored retirement and health benefits, and other aspects of personal finance management. 

"For those just starting their careers, there are a lot of demands on their income and retirement seems far away," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "However, by starting early and taking advantage of employer-sponsored benefits, young workers can take charge of their finances and begin to build retirement savings at a time in their lives when it will have the greatest impact."

The U.S. Department of Labor's Employee Benefits Security Administration will co-host the webinar with the U.S. Department of Education's Federal Student Aid office and the Certified Financial Planner Board of Standards as part of the Financial Literacy and Education Commission's Starting Early Campaign.

Members of the public can register for the free webinar at http://s.dol.gov/ZJ.

Student loans: Financial & emotional impact

"Alarming data that document the growing burden of student loans continue to pile up.  To help recent graduates and their parents work through the implications of this, here’s a recap of the issues – both financial and emotional." The Squared Away Blog provides a comprehensive look at the student loan situation with essential info for students, their parents, and for policy makers. The blog provides a comprehensive overview of the current situation and links to other blogs to help explain the factors contributing to growth in student loan debt and individudal and policy approaches to resolve the problem. http://squaredawayblog.bc.edu/squared-away/student-debt-binge-how-will-it-end/

Free online calculator for claiming Social Security benefits

"There's a lot more to Social Security than meets the eye. Consider the rules, pitfalls, and tax effects. And what you don't know could affect Social Security benefits for life. Get the facts before making a decision. Explore the options. After all, Social Security has the potential to be a $1 million decision." Watch the  2 minute video: https://www2.troweprice.com/iws/wps/portal/public_fi/advisorresources/educationandinsights/socialsecurity?van=ss_conv_domain_com

"A free online Social Security calculator from T. Rowe Price helps advisers and clients analyze various options for claiming Social Security benefits. The tool offers several financial goals, and after clients select one, the calculator suggests a Social Security benefits strategy that can help them achieve the goal." 

http://www.advisorone.com/2013/04/22/t-rowe-social-security-calculator-shows-strategies

http://individual.troweprice.com/public/Retail/Retirement/Social-Security-Tool?van=socialsecurity

How to Balance Bills, Loans and Live Well

For great resources on prudent money management, check out: 
http://www.poundstopocket.co.uk/how-to-balance-bills-loans.html

Topics include: 

• Help in Setting Financial Goals
• Help in Creating a Budget 
• Track Your Spending and Ways to Save Money 
• Frugal Living Essentials

Thanks to the Laramie, WY Public Library for pointing out this resource.

Target Date Retirement Funds

Learn about target date retirement funds from this excellent brochure produced by the Center for Retirement Research at Boston College: http://crr.bc.edu/special-projects/books/why-target-date-funds/

Social Security Ignorance Widespread

Middle-Income Boomers Unclear on Social Security

"Middle-income Americans between the ages of 55 and 75 are under-informed about Social Security. This is according to a new study, which found that in addition to misunderstanding how Social Security works, most middle-income boomers haven't considered how much money they'll need each month after retirement or how long they may expect to live. Misunderstandings about Social Security include believing that cost-of-living adjustments are guaranteed and that full benefits will be paid beginning on the 65th birthday. Only 21 percent of middle-income retirees and pre-retirees have discussed longevity with an advisor and only 21 percent have calculated a monthly retirement income goal." Thanks to the Personal Finance Employee Education Foundation. For details see: http://www.lifehealthpro.com/2013/03/12/middle-income-boomers-not-the-retiring-planning-ty?t=fixed-indexedhttp://www.benefitspro.com/2013/03/06/women-closing-retirement-gap-with-men?ref=hphttp://ebn.benefitnews.com/news/investors-worry-more-long-term-care-retirement-planning-ubs-2730488-1.html?ET=ebnbenefitnews:e6033:2131437a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=EBN_inBrief_012813
To learn more about Social Security check out the reliable resources from the Center for Retirement Research at Boston College: http://crr.bc.edu/booklets-brochures/