According to the survey, the percentage of workers who are not too (or not at all) confident about being able to cover long-term medical and long-term care expenses has increased. According to this study, 51% of workers say they are not confident about having enough retirement money to pay for the... ... middle of paper ... ...yees. The conclusion is that even though the majority of American workers are not financially ready for retirement due to the difficult economic times, there are several steps that we can take that will begin to prepare us for long-term retirement goals. We can evaluate our family health history and create a savings plan based on possible, future health issues. We can purchase MediGap Health insurance to address those future health issues.
For one, banks could reconstruct their mortgage loan interest rates to fit each family’s situation and secondly, twice out the year, the U.S. government could possibly tax each American citizen that is working $.75 out of their paycheck each year to help decrease the $11 trillion U.S. mortgage debt that we are in. Thirdly, banks all over the U.S. could possibly lower their mortgage loan interest rates to a very low standard rate for not only people who want to buy homes but for people who already have homes. No matter what route we take, the U.S. government needs to find a solution very soon, or many more Americans will find themselves without a home.
Social Security Disability is a strong subject to research. Many people suffer because benefits get denied and this can be a long process to go through. Many will be denied time and again before they can see a law judge to be approved for benefits. According to the National Journal, social security will run short to pay full benefits by the year 2042. Sen. Lindsey Graham, Republican, South Carolina introduced legislation that would let workers invest up to $1,300 of their payroll taxes each year and would make gradual cuts in traditional benefits, reducing the payouts below what Social Security now promises.
Businesses have financial needs when they start up, expand and carry on day-to-day business activities. These needs include financing, insurance, bookkeeping, payment services, investment and general financial advice. A variety of financial institutions can provide these services banks, insurance and investment companies and firms of accountants. In this assignment I will produce a report which analyses the financial needs of three different types of customers and investigate the ways in which these needs can be satisfied by a range of financial service providers. Two of the customers are personal customers of contrasting types.
According to the Society of Actuaries, baby boomers can expect to live well into their 80,s and many will live well into there 100’s and beyond. That means someone who quits working at 65 may be looking at spending 35 years in retirement.” (www.aol.sageonline.com) The worst news about the increase in life expectancy is that people are not saving enough to maintain their high standards of living and they must adjust accordingly. So what are these people supposed to do? First, people must save as much money immediately and let go of the old notion of retirement. The basic fact is that “Social Security currently makes up about 40% of a retirees income, it is now up to the individual investor to generate the remaining 60% in order to maintain the standard of living they are accustomed to.” (Prosser 12) Some of the old rules of saving for retirement still apply, Michael McDonald, vice president of a national brokerage firm says the 60 t... ... middle of paper ... ...ill accumulate interest.
Social Security "On a daily basis senior citizens face a choice between buying food, paying the rent, or buying medicine. Senior citizens slice pills into halves because they can't afford their full prescriptions." (Federal News Service Sept. 2002) Social Security is what keeps many elderly and disabled Americans from being stricken by poverty. Without Social Security in our society 15.3 million elderly would have incomes below the poverty line, however after Social Security was added to the equation only 3.8 million elderly have incomes below poverty. Three-fourths of those elderly people who would have been poor without Social Security were removed from below the poverty line by Social Security.
Some recent studies estimate that the cost may be as high as $28 billion per year or an average of $5,500 for each teen parent. “Adverse Effects” states, “The majority of this cost is associated with teens who give birth before age 18.” Taxpayers are paying loads of money each year for improved health/ foster care, public assistance payments, increased restraint rates among children of teen parents and lost tax revenue because of lower educational attainment and income among teen mothers (Adverse Effect
Baby Boomers are beginning to phase into retirement, but do not have sufficient funds of their own, therefore are relying more on Social Security. Currently, “two-thirds of all recipients depend on it for half their income, and for 16% of beneficiaries it is their only income” (Marron 2001). The problem here is, Social Security was originally designed to be a social insurance program and not as a mean of income. People are not investing their money in savings for the future, and instead are relying on Social Security, which is an unstable source of income. With the expected lack of funds in 2033 there will not be enough money in the fund to support the retired Baby Boomers, along with all the other future retirees.
Because American citizens don’t have the money to spend they don’t spend and the consumer spending aspect of the economy takes a drastic downfall. Unemployment rates also have play in determining a recession (22). Proper money management and finances could bring an economy out of a recession. There are major flaws in the way we live that people are doing nothing to fix. Most people are in debt, in late 2005 “wage growth was shortchanged because 46 percent of the growth of total income in the corporate sector was distributed as corporate profits, far more than 20 percent in previous periods.”(24) Household income had fallen five years in a row and was 4 percent lower.
Summary of the Case Personal Finance The case represents Smith’s family financial issues, and the plans available to ensure a balance in cash inflows and outflows. The Smith family complains of a cash crunch, yet the family’s annual income is about 80,000 U.S. dollars per annum. Amber and Joel understand that the family records cash outflows that were greater than cash inflows. The two do not know where the money went and had trouble setting and meeting the future goals. Amber and Joel have sought financial advice to increase their family’s total income.