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6 Money Lessons of the Great Recession
Tweet Share on Facebook August 14, 2009 Comment (7)It's unclear whether the economy has hit bottom or not. Investment markets are moving up. Jobless rates didn't get any worse. "Cash for clunkers" has given the auto industry a real boost. And stimulus funds are slowly making their way into the real world. So, at the risk of tempting fate, it's probably safe to venture outdoors once more. The sky will not be falling. Life as we know it will not be ending. There will be a World Series in the fall, and college stadiums will be jammed with fans.
Before moving on to better times, however, let's think a bit about how we've responded to the big problems that began emerging in 2006 and 2007. What are some of the clear money lessons we've learned? Almost by definition, these lessons seem very obvious today. But our children and grandchildren will forget many of them, just as we forgot the hard-knocks lessons of our parents and grandparents. Here's some starter advice:
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Maryland Builds Better Safe Driver Mousetrap
Tweet Share on Facebook August 12, 2009 Comment (2)Wouldn't it be great if there was a predictive screening process that helped identify people whose driving problems would be likely to cause future accidents and other mishaps? As the numbers of older drivers soars, so will the need for fair ways to evaluate their skills. It's possible that pressures for wholesale restrictions on older drivers will grow as well, spurred by the inevitable tragic accidents involving old drivers who clearly didn't belong behind the wheel. Well, as it turns out, if you want a solid solution to this problem, you can find one in Maryland, whose Motor Vehicle Administration (MVA) began developing predictive screening tools a decade ago. It even validated its approach with a comprehensive research project whose results were published in 2006. Why haven't other states rushed to emulate Maryland? Good question. Complicated answer.
[See Are Seniors Being Targeted as Bad Drivers?] -
Target-Date Fund Expense Fees Vary Wildly
Tweet Share on Facebook August 10, 2009 Comment (2)There is an enormous range of fees among the mutual fund companies that offer target date funds, according to a Morningstar analysis. The lowest-expense funds—Vanguard's Target Retirement series—levy an expense charge of only .19 percent of assets. At the other end of the spectrum sits the Oppenheimer Transition series of funds, which has expenses of 1.44 percent. "That's a huge disparity," Morningtsar senior analyst Josh Charlson writes in an accompanying article.
[See Target-Date Funds Finally Showing Solid Gains.] -
Keeping Teens Safe Behind The Wheel
Tweet Share on Facebook August 10, 2009 Comment (5)The Boomerater™ Report, our weekly collaboration with online baby boomer resource Boomerater, this week explores how you can help your teens to be safe, responsible drivers.
[Take a Road Test of Your Driving Skills.] -
7 Tips for Finding Right Volunteer Work
Tweet Share on Facebook August 7, 2009 Comment (4)Volunteering is one of the best ways for seniors to get involved in their local communities, share a lifetime of experiences, develop new relationships, and help make the world a little bit better. Today, there are more tools than ever to help you find the right organization and make sure that the match is a good one for you and for the group you want to help. Here are some things to consider:
You're not alone. More than 60 million Americans volunteered a median of 52 hours in 2007, according to the U.S. Bureau of Labor Statistics. This does not include the many millions of people who work as unpaid caregivers for family members or friends. Churches and schools far and away topped the list of places where people donated their time and expertise. Other areas—health, community service, civic and political organizations, sports and environmental groups—had more than 30 million volunteers.
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Great Advice on Parting with Possessions
Tweet Share on Facebook August 5, 2009 Comment (4)I recently wrote about how hard it is for many of us to downsize, get rid of possessions and prepare for new phases in our lives. Some changes are triggered by positive events but many are forced upon us by losses -- of spouses, of health, even of financial security. It can be a very tough and lonely period. Clearly, many of you agree, because you posted some absolutely marvelous personal stories and suggestions. You are the experts here, and your experiences are more instructive than my advice and even many observations from the "experts" I often quote. I'd like to share a few:
The ten-six-three rule. "I had a life change this year, and took that opportunity to start simplifying my life. At first it was little things, then it started getting easier and easier. Pretty soon, the lawn was just a giant gift shop to the world. The first obstacle to get over was holding on to things in your life you don't use, but perceive that it still has value and so you shouldn't let go of it. If you aren't using it, then its only value is as a dust collector. Start small, and force yourself to keep to your rules. My first rule was, 'If it hadn't been used in 10 years, it had to go.' That was hard at first, but I did it. Then we went to six years, then three, then a year. Eventually, we just emptied the attic. Things that I saved for heirlooms that I didn't use, I bequeathed while I can still enjoy [seeing people] receiving them. (Why hold on to it if you don't use it?). The house was empty after a few months, and I felt great and free. Now the house is too big. So much of it was just storage or "filler" furniture. Start small and see how it changes your entire outlook. It is a true domestic colonic for the soul." -
Tips to Help Loved One with Alzheimer’s
Tweet Share on Facebook August 3, 2009 Comment (4)The Boomerater™ Report, our weekly collaboration with online baby boomer resource Boomerater, this week discusses caring for a relative with Alzheimer’s Disease. We explore the role of a caregiver and financial resources to assist you.
[See New Tool to Compare Long Term Care Costs.]
