financial

Financially Struggling Baby Boomers Common

Written by adminAugust 14, 2018

When we talk about debt in the United States, and how total household debt is at its highest level of all time ($13.2 trillion), it’s easy to think, “Those darn kids and their fancy houses and useless degrees!” In reality, a lot of older folks are financially struggling as well.

We’ve constantly written about millennials and their apparent lack of financial understandings that has lead us to this point, but it’s certainly not just the younger generations. Even the oldest generation has a part to play in our current economic epidemic.

Baby boomers 55 years or older have an average of $73,211 worth of debt per household, according to a report from U.S. News.

In reality, this debt isn’t from a lack of financial literacy, but the fact that they were ill-prepared for how the rest of their life turned out. Baby boomers are living longer and are much healthier than their parents and grandparents, thanks to advances in medicine and technology.

As we’ve previously reported, women are particularly at risk, because they are living longer than their husbands and haven’t been the ones to get active about investment or saving money. That role has always belonged to the men, but it’s something that needs to change.

Americans Aren’t Saving Money

According to Bankrate, 2/3 of Americans have no money saved. They wouldn’t be able to scrape together $1,000 if they had an emergency. It’s tough out there for average Americans, who can be bankrupted by a single event, like a car accident that forces them to miss time from work.

For the older generation, the risks are much higher. They’re much more vulnerable during events, like natural disasters, a death (usually their spouse), or a crippling illness. And when these issues crop up, in a much more frequent fashion, they don’t have the time out-earn these problems.

Also: http://financialhelpers.com/you-wont-believe-how-much-debt-has-changed-since-the-great-recession/

This is a major issue that can be passed down to their children when they die. There have been numerous cases where a debtor will come knocking to collect debt owed after a parent passes, especially if they left their house and there’s money still owed.

For seniors in this situation, the solution is the same for every American. Because they are extremely vulnerable financially, they must be prepared for everything that might happen. They need to better budget their income by figuring out how much debt is owed.

Getting Help

Making a single phone call to Financial Helpers can help. We are experts at helping people just like you climb out of their debt and find financial freedom. You can call us at the number below:

Call Now 844-332-2079

Without help to consolidate or refinance your loan, you’re going to have to figure out a way to do it on your own. 1/3 of all Americans don’t even have a budget plan, and it’s hurting them later on. When an emergency happens, they’re worse off financially than they were before. This sinks many good families into bankruptcy.

Seniors have a few other areas of help they may not realize. They are the generation that is least likely to be computer literate. Various apps and programs are designed to make it easier to financially budget

One of those apps is called Tiller, which doesn’t require extreme computer skills to learn. It’s simple to use and can help you get on track with creating and maintaining a budget. There are apps like GoodRx that can save you 90%.

No matter the stage of life you’re in, it’s always a good time to learn financially good habits. You’re not exempt from needing to save, even if you’ve been around awhile and never had any problems before. Times have changed, and so has the way we need to save.

Written by adminMay 25, 2018

Saving

The secret to saving money is knowing how to spend it wisely. If you want to have a few extra bucks saved in your account for rainy days, for that family vacation you deserve, or for anything else you might need, then you have to be practical about how you spend.

Here are 5 easy ways to save money throughout the year.

1) Pay your bills early and on time.

I get it. You hate to pay bills. It’s a part of being an adult we all loathe. But, if we want things, then we need to pay for them. If you want cable and high-speed internet, it’s going to cost you a good chunk of change. The phone bill for you and the family will require a blood sacrifice and your first born.

We’re not saying you should get rid of that stuff, but if you’re going to have it, then make sure the bill is paid on time every month. Most of these accounts require commitments and if you miss a payment, you’ll be racked with late charges, penalties, and your credit score can take a hit. The last thing you need to do is shell out even more money for services.

2) Have an emergency fund.

You might think this is a waste of time and money. A lot of people don’t bother to save, either because they don’t think they can afford it, or they don’t anticipate something happening. In realty, that’s not a smart choice to make. Things WILL go wrong at some point in your life.

A recent survey said that a majority of Americans don’t even have access to $400 if something were to happen. If you got into an accident tomorrow, and you couldn’t work for a while, how tough of a situation would you be? If you’re living paycheck-to-paycheck and have nothing saved in the bank, you’d really be hurting.

The best advice is to have about 6-9 months saved up in the bank, which is the average time it takes to find a new job or get back on your feet after an accident.

3) Learn how to say no to impulse desires.

One of the biggest financial blunders Americans make is taking on more debt when they can’t even afford the debt they have. They see something they want, really can’t afford it, but mindlessly swipe the credit card and magically believe it will take care of itself later.

Monthly payments will eventually catch up to you, you’ll get late, have fees and penalties added on, it will wreck your credit score, and before you know it, you’re drowning. It happens to millions of Americans every year.

As I stated in the previous point, things happen all the time. It’s better to not have that shiny new toy and put the money in the bank for a rainy day, then to barely eek out every month. Do yourself a favor and just say no.

4) Refinance your student loans and get help paying them off.

We’ve covered this topic a lot on this blog. Student loans are a burden on so many people. They are preventing former students from getting a house and even from being able to work their dream job…the whole reason why they went to college in the first place. A lot of states will revoke your license to work if you have unpaid student loans.

If this is you, there is help out there! Government programs, refinancing loans into one payment so you’re working with a smaller interest rate, and so much more is available to you. To learn more, feel free to give us a call!

5) Don’t borrow from your retirement.

One misstep plenty of people take is borrowing from their retirement whenever they need a few bucks, but that approach is like robbing your future self of the retirement you deserve. Not only is it a risky move, you can be charged extra for pulling money out early. The big question remains: what will you do in retirement if you can’t replenish the fund?

Getting involved in this vicious cycle of poor money habits won’t offer you an ounce of financial freedom. It might make you feel good for a few days being able to buy what you want, but after some time, that joy becomes stale as you (and millions of others) regret the decision. Be smart, learn to say no, and save as much as you can. You’ll be happier for it.

Written by adminMay 23, 2018

Saving

Right now, you might be thinking it’s a precarious time to buy a vehicle, but it’s time for an upgrade. What should you do?

With auto loan rates rising, it can scare a lot of people from shopping as they sit back and wait for things to settle a bit.

That doesn’t mean you still can’t get a great deal on a car or truck that both fits your needs and is at a price you can afford. To do that though, you should do your shopping in the used car lot.

“If you really had to have a certain make and model, look at a used car. It can help with affordability, and you get a lot of the same benefits,” says Joe Pendergast, VP of lending at Navy Federal Credit Union.

It’s all about supply and demand. Over the past few years, people choosing to lease vehicles has reached an all-time high. That means when the leases are up, there’s always a flood of ‘gently used’ cars that make their way to the dealership. That bodes well for anyone hoping to get a good deal.

Vehicle prices have already seen a drop. According to the U.S. Labor Department, the cost has already started to drop, falling nearly 2% in April. Analysts expect that number will only go down as we enter the summer months.

Of course, most people want something brand new, as it offers the best of everything, from top-notch warranties to the latest technology to hit the market. Used vehicles aren’t that far off from buying brand new, but at a steep discount.

Most used vehicles are only a few years older, low mileage, and with the same great technology you’ll find in a new model. In short: you’re pretty much buying the same vehicle at a huge discount.

Trucks and SUVs often top the list as the most popular vehicles in the country to buy right now. Experts don’t believe that higher gas prices this summer will dent SUV sales too much. Navy Federal Credit Union says that the F-150 is the most popular vehicle their members get.

These types of vehicles are often higher in price, making it not uncommon to see buyers taking out 6-year loans. It’s always suggested that buyers stay on top of what they can afford and know their credit score before investing.

“Whether you’re buying new or used, don’t take the first deal you see. Be able to know that you can afford your car payment, as well as gas and maintenance,” said Pendergrast.

Written by adminMay 23, 2018

Saving

Americans are fascinated by the British royal family. To us, they are superstars and we follow them and their lives as closely as any other famous person.

On November 27th, 2017, it was announced that Prince Harry and Meghan Markle were engaged, and Americans couldn’t be happier. That meant another royal wedding was going to happen soon!

And now, that time has come! This weekend, the prince and his beautiful bride will tie the knot. Because this is a financial blog, we can’t help but ask the question: how much does a royal wedding cost?

The average American wedding can shoot upwards of $34,000! To us, that’s a lot of money, but it pales in comparison to the amount the royal family will shell out. Back in 2011, Prince William married Kate Middleton at an astounding cost of $34 million!

Let’s look at this year’s epic ceremony and breakdown what the royal family is expected to spend this time around.

1) Reception

This part of the celebration isn’t as expensive as it could be. Being the royal family has some perks, meaning they own a lot of gorgeous, historic castles and buildings. They also own fleets of cars, too. That means holding the reception at George’s Great Hall and using Queen Elizabeth’s fleet of Bentleys and Rolls-Royces for transportation won’t cost a dime.

Not every part of the reception will be free, though. According to sources, the cost of luxurious portable toilets will cost more than the average American wedding at $50,000! It’ll cost them $500,000 alone for the marquee. So, while they’re ‘saving money’ by not having to rent a place, the added costs are unfathomable!

2) Food and Catering

Could you imagine spending $70,000 on a wedding cake? That’s what the royal family just did, hiring the talents of famed pastry chef Clair Ptak from California. The catering for this event is estimated to hit nearly 700,000! That seems like a lot of money, but when you consider the bottles of Bollinger champagne, costing $115 EACH, then you start to see why it’s so expensive.

3) Entertainment

What’s a wedding with entertainment? And when you’re filthy rich as the royal family, you can virtually afford whoever you want. They’re expected to spend around $510,000 for various entertainment surprises. $129,000 of this is for the silver-plated trumpets, personalized for each guest.

They also expect to have choirs, photo booths, entertainment for the kids, a DJ, a band, and even a fireworks display worthy of royalty. For that much money spent on entertainment, let’s hope the band is good! (Rumors say Elton John is scheduled to perform)

4) Wedding Dress

We all know that the dress is one of the most important parts of the wedding. It’s also one of the most expensive. It can take a future bride several months to find the right dress for her. It’s unknown what the future princess paid for her dress, but estimates are up near the $500,000 mark.

5) Decorations and Favors

Another $700,000 was spent on the rest of the wedding, including the decorations, floral displays, invitations, seating, dance floor, security, party favors, lighting, photographers, and so on. I’m sure you can imagine a gorgeous Windsor Castle converted into a wedding palace fit for a fairytale.

The invitations alone were over $200,000 and printed in gold ink. Now that’s money!

Wedding Controversy

While the U.S. is anticipating this major event, a lot of U.K residents aren’t happy. A petition has been going around, stating that the royal wedding is nothing more than what should be a private event dressed up like a national occasion to justify spending tax dollars to cover the event.

While the royal family gets millions from the government, most of the wedding won’t be paid for by taxpayers. They will have to pay for the massive security to keep guests safe during a high-profile event, costing them $10 million.

The cost is also measured in economic output. During the 2011 royal wedding, there was a 1.6% drop in production, which amounted to $3.1 billion lost. We can expect the same to happen this time around, which makes a lot of people in the U.K. wonder why they still have a monarchy to this day.

Written by adminMay 23, 2018

Saving

Early last week, the United Way released a staggering report about the condition of the average American family. In it, it was revealed that 51 million households in the United States, about 43%, still can’t afford to take care of their basic needs.

These basic needs include food, health insurance, rent, transportation, and a cell phone.

The same study declares that 16.1 million households in the U.S. are living below the poverty line and 34.7 million who are considered limited income families, making less than what is required to pay the bills.

Several states have it worse than others. California, Hawaii, and New Mexico, for example, have half of their populations struggling to make ends meet. It’s difficult to imagine.

66% of workers make less than $20/hour, which means the large majority of people have very little, if anything, in their savings. If something bad were to happen, most Americans don’t even have access to $400 if they needed it.

If we break it down to the country level, then we start to see the discrepancy. Many counties in the U.S. are simply too expensive to live in. Not too long ago, a map of the country came out showing how much you had to make in each state just to cover the basics. A lot of the states were between $50,000-$80,000!

To make it in Seattle’s King County, you’d have to make over $40/hour to live there. If you weren’t bringing home $85,000 per year, you were living in poverty.

The homeless problem is so bad in Seattle, the city council just implemented a controversial tax on companies like Amazon to help get the homeless off the streets. Life is so expensive in San Francisco that the homeless line the streets for miles. There are literally apps that show you were to avoid human feces on the sidewalk due to the homeless situation in their city.

The economy is getting better and jobless numbers are going down, but it’s not enough. It doesn’t matter much if someone has a job if they aren’t making the money they need to even feed themselves.

There’s a reason why debt has reached all-time highs. People are borrowing more than ever just to catch up, but can’t afford to pay it back.

Written by adminMay 23, 2018

Saving

We’ve extensively covered all the news going down between China and the U.S. A trade war between the two economic superpowers is not a good idea for anyone. China knows that, as does the United States.

President Trump, once again, seemed to apply just enough pressure to get the outcome he desired. His first victory came over North Korea, who agreed to end the Korean War and step across the DMZ at the behest of Trump’s critics who warned his tactics would lead to a nuclear war.

Now, China also appears to be bowing to pressure from President Trump, agreeing not only to end threats of a trade war, but also to purchase “massive amounts” of agricultural products from U.S. farms.

China also agreed to sit down and create a new deal promising to address the massive trade deficit between them and the U.S., a problem President Trump has railed against since his campaign.

According to U.S. Treasury Secretary Steve Mnuchin, this increase in agricultural products should total an additional 40%, which is amazing news for farmers who were worried a trade war would severely hurt their income.

Stocks and Oil Prices

When news first broke that China and the U.S. were soon to be embroiled in a fight, it frightened a lot of investors. Stocks fell sharply after months of historic growth. Now that news of the trade war being behind them and new deals are in place, stocks rose early Monday morning, as did the price of oil.

For the first time since 2014, the price of oil hit the $80 per barrel mark.

OPEC and Russia agreed to cut supply, as well as promised economic sanctions on major oil producer Iran that has many experts believing we’ll see oil prices cross the $100 mark this summer, but now that the trade war talk is cooling, moods are shifting. Some of the pressure on the market is now going away.

“Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months,” said U.S. bank Morgan Stanley.

Now that the U.S. and China are on the same page economically, it can only mean good things for both countries. Trump certainly has a way with getting things done, even if his methods make everyone else nervous.

Written by adminMay 23, 2018

Saving

Money can be a touchy subject with millennials. This is the generation that is getting hit the hardest with disabling student debt, low wages, and the recession, which hit right as they were graduating college.

It wasn’t an uncommon sight to see someone in the mid-20s and lower-30s, with a college degree, living at home with their parents. Those who are making it, are barely doing so. High rent prices and the cost of living constantly outpacing their ability to get raises has made life difficult for most of our younger generations.

When the website MarketWatch wrote a piece about how much money 35-year-olds should have saved up (about twice their salary to be safe), the fury was intense. There were many responses of varying degrees, from righteous indignation to jokes to cut the tension.

The message was clear. Millennials SHOULD be saving their money, but they simply can’t afford to. We recently wrote an article talking about how Americans still can’t afford their basic needs. This is a growing problem as debt keeps piling on and wages remain stagnant. Many families still have to make tough decisions and what they can afford and what has to wait.

If you can barely afford to feed yourself, you’re not going to have enough to save, especially if you’re paying insane interest rates on loans just to keep your head above water.

The sad reality is, we can’t talk about retirement enough. This is a subject no one should pass up just because it’s a difficult conversation. No matter what we’re dealing with right now, we need to keep it a part of our thinking and budget planning. In fact, it should be a priority.

There’s no one-size-fits all approach to saving for retirement. What you’re going to need and when you’re going to need it will vary per person, but if you haven’t even begun to address the issue in your 30s, you’re in danger to fall well short by retirement age.

Social Security is dwindling and no one knows how much longer it will last. Many experts aren’t even sure what the future of the program will look in the next 30 years. It’s not a program today’s millennials can take for granted or expect to still exist. They will have no choice but to invest their own dollars into their retirement plan.

That starts now.

There are two things people can do to ensure they’re in a good spot.

The first is to save as much as you can. Ideally, you should be putting away 15% of your monthly salary. If that’s impossible, trying to cut back as much as you can. Even 5% saved is better than nothing. As the economy improves and your situation is better under control, you can up the amount you save.

The second way to better prepare yourself for retirement is to take care of your debt. Don’t keep adding more to it just because you want that shiny new car. If you know things are tough and you can barely afford to save, paying a large debt that’s mostly interest isn’t a good idea.

As of this writing, the government has put in place several programs designed to help people pay back their student loans. Most people who qualify for these programs can have what they owe significantly reduced, as well as the time it takes to pay back these loans.

The sooner you pay down your loans, the more money you’re able to save. Nothing is more important than your future and the future of your family. Paying off debts and having extra money to put away is only the first step into gaining financial freedom.

Written by adminMay 7, 2018

Saving

As we continue to recover from the last recession, there’s a lot of optimism for the future. We see unemployment numbers going down and the economy buzzing.

While optimism is strong, there’s a storm brewing. Something massive is forming out in the Atlantic, and this time, it just might be the storm of the century. No one knows when it will strike, but when it does, it will push millions of Americans over the cliff.

That storm is the next recession.

A lot of it has to do with the record high amount of personal debt we have. Almost every category you can count in the trillions of dollars.

-$1.02 trillion in credit card debt.
-$1.4 trillion in student loans.
-$1.22 trillion in auto loans.

What’s worse is a lot of us have debt in more than one of these categories, so we’re paying high interest all the way around.

What’s Going on With Our Budgets?

It’s not just debt we have to worry about. Consider the amount of money we have saved. It was recently said that most Americans don’t even have access to $400 if they really needed it in the event of an emergency. So, what happens when, not if, the economy fails?

The University of Chicago released a new study that revealed 44% of Americans avoided going to the doctor when they were sick/injured last year. That’s almost half the country! The reason? The high cost of health care!

If we can’t afford to take care of ourselves now when the economy is on a massive growth-spurt, what happens when the next recession hits? No one will be ready for the storm, which may cause a health crisis in the near future.

That brings me to my next point. When the economy is showing signs of upward trends and people are optimistic, that makes them feel safe. Of course, we all want that brand new shiny car sitting in the driveway of our beautiful home, but these are luxuries we can barely afford when things are going well.

We have to put ourselves in a heavy amount of debt and pay interest that’s tough to afford. As the economy continues to churn in an upward fashion, so do the interest rates. During the last recession, they might’ve dropped to 3%, but it wouldn’t be out of the question to see the rates rise to as much as 7%.

Over the next few years, that increase will make their almost unaffordable car loan definitely unaffordable, killing whatever savings they might have.

Doom and Gloom

The point of this blog isn’t to be a doom-and-gloom preacher who screams from the street corner that the end is coming. No, I want to encourage everyone who reads this to take the opportunity to get their debt under control before taking on new debt.

Yes, the signs point towards high optimism, but we just don’t know when the next storm will hit. If you’re going to survive the next recession, you will do it because you were prudent, have all your ducks in a row, and valued saving your money over buying the latest shiny toy.

Written by adminMay 3, 2018

Saving

We understand the temptation. From the moment you send in your taxes, your mind goes straight into thinking about how you want to spend that money.

Did you want to put that down payment on a new car? Are you thinking it’s time to upgrade your wardrobe? Are you going to sock it away for that family vacation?

Hey, you won’t receive any judgment from us! We completely get it. Yet, we’re here to advise you that maybe there is a better option for that money than buying more stuff, which is to put it towards your debt.

It’s certainly not the sexiest of options, or the most fun, but it can certainly save you a lot of heartache in the long run.

Here are three excellent reasons why you should put your tax refund towards your debt:

1) It Will Show You’re Serious About Your Debt

If you have debt, then you know that the quicker you pay it off, the less you’ll pay on it over time. The longer you have the debt, the more interest you’ll have to pay on it. The difference between paying it off early or not can be thousands of dollars in additional interest added. That means you’ll have more money in the long run.

If you have a lot of debt, it doesn’t make sense blowing your refund on a large vacation or adding to your debt by getting a new vehicle. Not to mention, paying a large chunk of it down can only help your credit score. Putting your refund towards your debt shows you’re becoming financially responsible.

2) Savings Might Get Spent

Putting money into your savings or rainy-day fund is always a good idea. You never want to go without an emergency fund stashed away. If you have no emergency savings, then it’s a decent option, but what you put into savings might be difficult NOT to spend. People have a difficult time saving money because the temptation is there to use it on frivolous things.

If you put it towards your debt, then it’s spent and a large chunk of your debt is gone, which is ultimately the best option. It might sting a little bit right now, but later on, you’ll save more money in the long run getting your debt paid off sooner.

3) There Are Better Ways to Save for a Vacation

One of the top ways people spend their refund is on a vacation. There’s no doubt that you deserve one after working hard all year, but there are just better ways to pay for it. A vacation is fleeting and won’t be something tangible to invest your money in. You might get a sick tan, but you’ll still have the same amount of debt as you did when you went in.

The best option is to pay off a chunk of debt and find another option for a vacation. Maybe take a shorter weekend trip somewhere until you have your debt paid off. Your vacation doesn’t have to be super expensive. Maybe pick up a small side job for a few months and sock away the money for a nice trip or save as much money as you can throughout the year

Either way, going on vacation while you have a ton of debt isn’t the most responsible decision someone can make. Adding to your already significant debt isn’t good either. The best thing you can do is buckle down until your debts are paid off. You’ll have a lot of time in the near future to enjoy debt-free living!

Written by adminApril 27, 2018

Saving

Amazon surprised investors on Thursday by announcing that they’ve more than doubled their first quarter profits compared to what they pulled in the first quarter of 2017.

The experts expected Amazon to lose a bit of their momentum going into this year, which is why the announcement came as a shock.

In the first three months of 2018, the mega online retailer raked in $1.6 billion. This profit is on top of several expensive investments made into original programming for their streaming service and the building of more fulfillment centers across the country.

This isn’t the first major milestone Amazon has hit this year. It has also touted a record number of paying subscribers, the amount of cloud computing sales, and advertising sales, all of which helped spur on the $1.6 billion first-quarter profit.

Because of these breakthroughs, Amazon’s stock has been soaring, putting that iconic Amazon smile on the faces of every investor.

Price of Prime to Rise 20%

Despite the absurd profits made in the last quarter, Amazon also announced via letter that they will be raising the price of Prime, their extremely popular subscription service, from $99 to $119 per year, a 20% increase.

Their justification for the increase again has to do with the increased cost of making more original content and continuously adding more “digital benefits”.

With over 100 million Prime subscribers, Amazon felt the price needed to go up, and will continue to go up as they offer more benefits to their customers. Amazon remains on the front lines of innovation, offering shipping perks, and believes it can compete with the likes of Netflix and Hulu with their streaming services.

Amazon CFO Brian Olsavsky said in a conference call on Thursday, “We continue to increase the value of Prime by adding digital benefits.”

With this news, the price of Amazon’s stocks jumped 7%. While investors are happy, one can’t help but wonder what the subscribers think of the price change. The company has record-high profits, but feels the need to increase the price of Prime by 20%?

There will be a breaking point for subscribers. If they keep raising the cost, it can become too costly and not worth the price to the average consumer.

Time will tell if this price increase will impact the number of subscribers Prime receives (or loses) in the future.

Americans Aren’t Saving Money

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