Greetings!
Aging in poverty is a very real possibility for many. According to statistics gathered by the U.S. Census Bureau in 2009, the poverty rate for all people older than 65 was 8.9 percent. For those age 85 or or older, it was 14.6 percent.
Read more
Here are 10 states where retirees have it rougher than the rest of us:
|
|
Living Below Poverty Line (1) |
Life Expectancy (1) | |
New Mexico |
12% |
78.2 years | |
Mississippi |
11.9% |
74.8 years | |
Louisiana |
11.5% |
75.4 years | |
Kentucky |
11.2% |
76.2 years | |
Alabama |
10.7% |
75.2 years | |
Georgia |
10.7% |
77.1 years | |
Texas |
10.7% |
78.3 years | |
Arkansas |
10.2% |
76.1 years | |
South Carolina |
9.8% |
76.6 years | |
Tennessee |
9.7% |
76.2 years |
Fortunately, Colorado did not make this list!
(1) Data courtesy of bankrate.com and Investment News.
The Changing 401K Landscape
As we head toward the end of August, many of you who are not retired are about to receive new notices on your 401k plan statements regarding the fees you are paying. If you would like help deciphering these data and would like to know where your plan fees are in respect to other plans, please let us know and we will do an analysis for you.
Plan Sponsors are required to make sure that their plans are reasonable, not necessarily the least expensive. Also, employers have a new set of fiduciary responsibilities that require them to make sure their employees have the information needed to make good investment decisions. Again, we offer our free second opinion service as a value-added service to you, our extended family, to help you make informed decisions that are in your best interest. |
| Weekly Economic Update | |
WILL GAS HIT $4 AGAIN?
In April, the national average price for a gallon of gas peaked at $3.94. Few analysts think prices will return to that level, though the U.S. average hit $3.67 Friday - an increase of $0.34 since July 1, translating to about $33 more a month for the typical U.S. household. (Consumer demand for gas has dipped 3.5% since the start of July.) The massive refinery fire near Oakland is but one factor - fears over a potential blockade of the Strait of Hormuz by Iran, slipping output from the North Sea and South Sudan and anxiety over the violence in Syria have also had an effect. (2,3)
OIL & GOLD MOVE IN THE SAME DIRECTION - UP
At the close Friday, NYMEX crude settled at $92.87 per barrel, +5.46% so far this month but still -6.03% YTD. Prices advanced 1.61% last week. As of Friday, gold was 0.76% improved for the month on the COMEX at $1,622.80. (4)
MORE TRANSPARENCY FOR MORTGAGE SERVICERS?
The Consumer Financial Protection Bureau proposed new rules to help borrowers last week - rules intended to crack down on robosigning, force-place insurance and inadequate consumer disclosures among mortgage servicers. These regulations could be put into place (and modified) after a comment period. (5)
A QUIET WEEK SEES STOCKS ADVANCE
Friday, the S&P 500 notched a 6-day winning streak. On the week, it gained 1.07% to 1,405.87. The Dow (+0.85% to 13,207.95) and NASDAQ (+1.78% to 3,020.86) each logged their fifth straight weekly gain. Some of this was fueled by hopes that the European Central Bank would make moves to reduce borrowing costs for Italy and Spain. The Russell 2000 rose 1.66% last week to settle at 801.53 Friday, while the CBOE VIX lost 5.31% in five days to close the week at just 14.81. (6,7)
|
| Market Summary |
|
% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+8.11 |
+23.21 |
-0.05 | |
NASDAQ |
+15.96 |
+26.87 |
+3.74 | |
S&P 500 |
+11.79 |
+25.44 |
-0.66 |
(Source: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov - 8/10/12). Past performance is no guarantee of future results. Indices are unmanaged, and investors cannot invest in them directly. |
|
Create a beautiful week!
Karl Frank, MBA, MSF
Certified Financial Planner (R)
A & I Financial Services LLC
303.690.5070
Citations:
1 - bankrate.com http://www.bankrate.com/financing/retirement
/aging-in-poverty-is-tough/#ixzz23Yh6N2f4
2 - www.boston.com/travel/destinations/2012/08/10/gas-
prices-spike-refinery-problems-cited/IpJbijPWoiI
xek94m3hIkM/story.html [8/10/12]
3 - blogs.desmoinesregister.com/dmr/index.php
/2012/08/10/211579/ [8/10/12]
4 - money.msn.com/market-news/post.aspx?post=778fc44c-
68b4-4fc5-a6e4-1fb2aad24796 [8/10/12]
5 - www.reuters.com/article/2012/08/10/us-financial-
regulation-servicers-idUSBRE87905L20120810 [8/10/12]
6 - www.cnbc.com/id/48608213 [8/10/12]
7 - montoyaregistry.com/Financial-Market.aspx?financial-
market=common-
Securities offered through Geneos Wealth Management, Inc., member FINRA/SIPC. Investment advisory services offered through A & I Financial Services LLC, registered investment advisor.
|
|
|
|
|
| Words for Thought |
"Once you really commence to see things, then you really commence to feel things."
Edward Steichen |
|
Riddle of the Week
|
A common English word refers to a person or thing not being in a place. But just by inserting a space within it, you can get two words meaning that a person or thing is present. What is this word?
Last week's riddle:
A friend wants change for a dollar. All you have in your pocket is change, and it amounts to over a dollar, but you still can't make the change correctly. What is the largest amount of money you could possibly have in this situation? What coins do you have that prevent you from making the change correctly?
Last week's answer:
$1.19 - four pennies, four dimes, and three quarter |
|
Karl Frank was interviewed by 9News on March 28th, 2012 regarding "3 Things You Should Do if You Win the Mega Millions Lottery". | |
Click Here to View Video
|
|
|
|
