Millions of homeowners face flood risks without realizing it, and climate change is making it worse

By 2050, 16.2 million properties will be at ‘substantial risk’ of flooding in a given year, report finds.

And it's not just properties along the coast or near rivers. 

"When Hurricane Harvey struck Southeast Texas in 2017, it provided a real-life stress test of the plans for flood risk in a highly vulnerable region. Southeast Texas failed that test. More than half of the homes engulfed by floodwaters were located outside city- and federally designated 100-year floodplains."

"Nationally, there are at least 6 million households that are unaware they’re living in homes that have a 1 percent chance of flooding in each year — putting them within a '100-year' flood zone. This is nearly 70 percent more homes at substantial risk of flooding than are within the Federal Emergency Management Agency’s Special Flood Hazard Areas, a designation that determines eligibility for the National Flood Insurance Program."

"This count is set to grow substantially in coming decades due to the effects of climate change, including sea level rise, which will make hurricane storm surges more damaging, as well as precipitation extremes."

"The report, from the nonprofit flood research and communications group First Street Foundation, is aimed at leveling the playing field between buyers and sellers, and democratizing specialized flood risk analyses that insurance companies and consulting firms are producing but charge hefty sums to access."

Now, a prospective buyer can see a property’s flood risk score, which First Street calls the “Flood Factor,” along with a map showing flood information, for 142 million properties in the Lower 48 states.

First Street is providing property-level mapping free on its website.

As reported by The Washington Post

https://www.washingtonpost.com/weather/2020/06/29/flood-risk-climate-change/?utm_campaign=wp_post_most&utm_medium=email&utm_source=newsletter&wpisrc=nl_most

Check out your property at: https://www.floodfactor.com/ 

How is the financial health of Americans changing over time?

If you are facing challenging financial stress due to the coronavirus, you are not alone. Even in 2019, before the virus, most Americans were not financially healthy according to research by the Financial Health Network https://finhealthnetwork.org/research/u-s-financial-health-pulse-2019-trends-report/?utm_source=nyt-paid-post&utm_medium=pulse-button&utm_campaign=nyt-paid-pulse
"In a year-over-year analysis, the second annual U.S. Financial Health Pulse report reveals that the majority of Americans are still not financially healthy, despite an economy that has continued to grow" based on 2019 data before the virus.

"The 2019 Trends Report presents findings from the second annual U.S. Financial Health Pulse consumer survey, including:
1. Only 29% of Americans are financially healthy, despite a booming economy.
2. Financial health disparities based on income, age, gender, and race have persisted since 2018.
3. Financial health changed for millions of Americans from 2018 to 2019, often dramatically.
4. People who had changes in their employment and physical health saw the largest year-over-year shifts in their financial health."
Keep in mind that these data and conclusions are from 2019 before coronavirus.

Taking the Nation's Financial Pulse in Uncertain Times

"Millions of Americans were struggling financially, even before the Covid-19 crisis." 

"The U.S. Financial Health Pulse shows that only 29 percent of Americans were financially healthy in 2019. Just over 70 percent of Americans were not financially healthy and may be unprepared for changes in their income, financial shocks or an economic downturn. These figures were roughly the same as 2018, but likely to change as the coronavirus outbreak takes its toll on the economy."

https://www.nytimes.com/paidpost/financial-health-network/taking-the-nations-financial-pulse.html?cpv_ap_id=50043239&sr_source=lift_morein&tbs_nyt=2020-March-nytnative_morein

"The U.S. Financial Health Pulse led by the Financial Health Network, is a landmark study designed to capture a more holistic picture of the financial health of Americans. The Pulse follows a large group of the same respondents year over year. It also combines survey data on spending, saving, borrowing and planning to devise a FinHealth Score™ that gives a detailed and realistic picture of how Americans are doing financially. Respondents fall into three categories: financially healthy, financially coping and financially vulnerable."

While the Financial Health Network is primarily geared to professionals in pubic policy, finance, and social networks, the knowledge that you are not alone if you are experiencing financial problems is key to taking action rather than blaming yourself. This blog is designed to for self-help and awareness of how to change one's behavior and resources for improving financial well-being.

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING ON THE EDGE

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING O 

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING ON THE EDGE

Beware for-profit colleges!

For-Profit Colleges, Long Troubled, See Surge Amid Pandemic

"The coronavirus shutdowns have made online learning more attractive. But students at some schools say they have been taken advantage of." Writing for The New York Times, Sarah Butrymowicz and Meredith Kolodner reveal a new round of abuses.

"Some have put students deep in debt while posting dismal graduation rates amid a history of investigations by state and federal agencies, including many that have led to substantial financial settlements."

As this blog has warned before, online colleges have a track record of charging high tuition, making unrealistic promises about employment and pay, while taking advantage of students. Remember Trump University? Strayer University, Ashford, Grand Canyon and Capella universities have track records of abuse causing them to pay fines but they stay in business, making profits off unsuspecting students.

"Online for-profit colleges like these have seen an opportunity to increase enrollment during the coronavirus pandemic. Their flexible programs may be newly attractive to the many workers who have lost their jobs, to college students whose campuses are closed, and to those now seeking to change careers. The colleges’ parent companies often have substantial cash reserves that they can pump into tuition discounts and marketing at a time when public universities and nonprofit colleges are seeing their budgets disintegrate."

"Few of the largest for-profit colleges operating primarily online have track records to justify the optimistic advertising pitches. Some have put students deep in debt while posting dismal graduation rates amid a history of investigations by state and federal agencies, including many that have led to substantial financial settlements."

"Eileen Connor, the legal director at the Project on Predatory Student Lending at Harvard Law School, said she was worried by the prospect of a resurgence for online, for-profit schools."

Students: Beware of for-profit universities!

College Rankings

"Among the most prominent sources for finding college rankings is the U.S. News and World Report, which offers expanded profiles for nearly 1,800 schools in America and ranks schools or programs according to different criteria. As a magazine for finding reliable business and finance information, Forbes also composes a list of “America’s Top Colleges” at the undergraduate level. Princeton Review is another popular resource that publishes rankings for the best national and regional colleges based on 62 different categories, including vibrant party scenes, beautiful campuses, comfortable college dorms, and great financial aid packages." https://www.bestdegreeprograms.org/

This website also provides lots of other information about colleges, including rankings of international programs and ow to afford your degree.

Your complete guide to a succesful and secure retirement

"Investment and personal finance experts Larry Swedroe and Kevin Grogan present uniquely comprehensive coverage of every important aspect you need to think about as you approach retirement, including:

Social Security, Medicare, investment planning strategy, portfolio maintenance, preparing your heirs, retirement issues faced by women, the threat of elder financial abuse, going beyond financials to think about your happiness, and much more.

These topics are explained with the help of specialists in each subject. And everything is based on the “science of investing” – evidenced with studies from peer-reviewed journals.

Overall, this adds up to a complete retirement guide, packed with the latest and best knowledge. Don’t enter your retirement without it."
https://www.goodreads.com/book/show/42925681-your-complete-guide-to-a-successful-secure-retirement 

Risk Less and Prosper: Your Guide to Safer Investing

During the market volatility brought on by the Coronavirus is a great time to read this classic book by Zvi Bodie and Rachelle Taqqu (2011).

A practical guide to getting personal investing right "Somewhere along the way, something has gone very wrong with the way individuals save and invest. Too often, households are drawn in by promotional suggestions masquerading as impartial investment advice. Consumers get saddled with more risk than they realize. Authors Zvi Bodie and Rachelle Taqqu understand the dilemma that today's investors face, and with Risk Less and Prosper they will help you find your financial footing.
Written in an accessible style, this practical guide skillfully explains why personal investing is all about you―your goals, your values and your career path. It shows how to understand investment risk and choose the particular blend of risk and safety that is right for you. And it lays out several simple yet powerful ways for small investors to cast a reliable safety net to achieve their financial goals and truly prosper. Coauthors Bodie and Taqqu challenge the myth that all investments require risk, then highlight some important risks that families often disregard when deciding where to put their money. Later, they connect the dots between investment and investor, showing us all how to grasp our own investment risk profiles and how we may use these insights to make more fitting investment choices.

• Outlines a straightforward way to invest by aligning your investments with your goals and the risk levels you can bear
• Provides basic investment abc's for readers who are otherwise literate
• Lays out a simple, actionable plan for achieving your goals
• Explains the role of risk-free assets and investment insurance in assuring that you reach your most essential goals

Contrary to popular belief, investing doesn't have to be complicated. You can build wealth without taking great risks. Risk Less and Prosper will show you how to make investment decisions that will make your financial life less stressful and more profitable." (Amazon.com)

The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy

I haven't read this yet but it seems like a very timely title and approach during these times of drmatic financial market volatility.
According to the Good reads website the book is :

"A detailed guide to overcoming the most frequently encountered psychological pitfalls of investing Bias, emotion, and overconfidence are just three of the many behavioral traits that can lead investors to lose money or achieve lower returns. Behavioral finance, which recognizes that there is a psychological element to all investor decision-making, can help you overcome this obstacle."

"In The Little Book of Behavioral Investing, expert James Montier takes you through some of the most important behavioral challenges faced by investors. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making."
https://www.goodreads.com/book/show/6922765-the-little-book-of-behavioral-investing

How much of your college scholarship is taxable?

Wait! What? My scholarship money is taxable?
Many students have no idea that their scholarships might be taxable.
Due to the coronavirus the income tax deadline has been extended to July 15, 2020.
Payments and interest on federal student loans for 6 months of relief....

So, about those scholarships and possible taxation.
Any aid used for living, travel and other expenses is taxable income.  The Tax Reform Act of 1986 made aid used for living (housing, food) and travel expenses taxable. Financial aid use to buy textbooks and college supplies remains free of taxation.

Calculating the amount of tax owed is confusing. Students receive a 1098-T tuition statement which shows how much a student received in total financial aid and how much they paid in tuition and fees. Check the annual IRS tax guide and guide to tax benefits for education to find out how much tax you might owe. Be informed and prepared so you aren't blind-sided by a tax bill.

See: "Reporting Scholarships and Fellowship Grants" on p. 6 of the IRS 2019 guide to tax benefits for education.

A variety of organizations have been working to restore tax-free status to financial aid used for living and travel expenses.

I remember the good old days where I earned a B.S., M.S. and Ph.D. without taking out any student loans. I was lucky to have a New York State Regent's Scholarship to pay undergrad tuition, a job as a resident assistant my junior and senior years which paid room junior year and room and board senior year. With some help from my parents and summer jobs I was able to pay for the rest of my expenses. Of course this was back when the minimum wage was wroth far more than today and before the strong anti-tax movements of the Reagan years when citizens understood the value they received for paying taxes. Of course, like most students, I didn't own a car so escaped that expense. I saved enough while earning my master's degree to be able to travel in Europe during the summers. I used to wait until the last day to pay (in person) my quarterly doctoral program tuition with my credit card. Payment wasn't due until the quarter was nearly finished so I kept earning interest on my savings, back when savings accounts paid real interest.

Protect yourself from growing credit card fraud

"Even if you’re careful, your credit card information will probably be stolen at some point. And we’re mostly on our own to protect ourselves" explains Shira Ovid, writing for The New York Times On Tech newsletter.

What you need to do: 

Sign up for email or phone alerts for each transaction.

Limit or eliminate the websites where you save card information. Instead use PayPal, Apple Pay, Google Pay or similar options that generate a temporary account number for each transaction.

Be paranoid: "Every link in an email or a too-good-to-be-true deal on an unfamiliar website could be trying to trick you to harvest credit card details or other personal information."

Report the fraudulent charge: "Tell both your credit card company and the merchant where the bogus charge was made to prevent the thief from running more stolen credit cards."

https://www.nytimes.com/2020/06/08/technology/how-to-reduce-credit-card-fraud.html?campaign_id=12&emc=edit_my_20200615&instance_id=19407&nl=your-money&regi_id=83720664&segment_id=30960&te=1&user_id=bde4c6c63beab087f13b761e1ee9fe1e

The "Perfect Storm of Stupid" and other Coronavirus stock market theories

Why has the stock market gone up dramatically (after initial plunge) during a pandemic?
Some ideas... courtesy of Planet Money

The “Perfect Storm of Stupid” Theory

Basically, Americans are super bored. They’re at home. Sports are canceled. The kids are screaming. The casinos are closed. And around 800,000 additional people have decided to plop down money on the biggest roulette table of them all: the stock market. Bloomberg columnist Matt Levine calls it “the boredom markets hypothesis.” Business Insider columnist Linette Lopez calls it “the perfect storm of stupid.” Shiller didn’t shoot this theory down. “This is just speculation," Shiller says, "but it seems like people want to do something.”

Some other theories:

The Corporate-America-Is-Immune-From-Pain Theory

"The stock market represents only a fraction of the economy: publicly traded corporations. While restaurants, mom-and-pop shops, and other small businesses have clearly been hammered, the majority of them are not listed on the stock market."

The Fed Theory

"This theory says the Fed is using its unlimited money-printing machine to single-handedly prop up the stock market."

The FOMO Theory

The fear of missing out is a prominent motivator for investors

The TINA Theory 

Then there is the “There Is No Alternative” theory, aka TINA. It basically says that with interest rates so low, stocks are the only money-making game in town. 

The Efficient Market Theory

"It paints the stock market as a supermachine for information processing, where knowledge about the happenings of the world are all aggregated by brainiac investors, who rationally buy and sell stocks based on the best information of their future performance. The theory basically says stock prices are always right. Under this theory, the rally of the stock market over the last few months reflected rational investors seeing signs that the pandemic wouldn’t be too bad and that the recovery was going to be really good."

Source: https://www.npr.org/sections/money/2020/06/16/877410547/what-is-the-stock-market-trying-to-tell-us?utm_source=npr_newsletter&utm_medium=email&utm_content=20200616&utm_term=4623696&utm_campaign=money&utm_id=44131415&orgid=