Cheat Sheet Q & A:
A few days back you had reported on how some of the state Retirement plans were doing. I'm checking with you to see if you had looked into the Florida State System (
I have an option to remain in the states retirement investment plan with my DROP funds or rolling it into another retirement vehicle of my choosing. Any opinion of the program as a hole would be appreciated.
Bottom Line: I have good news and not so good news pertaining to the overall health of
So… The not so good news is evident. The
The state did allocate an additional $500 million this year to help support the
So to your question about the options you’ve been prevented with. Without comprehensive information about both of your options I can’t make a suggestion one way or another. If the benefits were otherwise equal I would much rather have my money in a retirement account that has my name on it and that I can control. A pension is subject to the solvency of the program and the effectiveness of those who manage it.
My advice would be to talk to the advisors of the plan options and/or a personal financial advisor that can evaluate want both plans mean to you as you near retirement.
If you have a topic or question you’d like me to address email me: email@example.com
How much of the Federal Government is actually shutdown during the partial Government shutdown:
Bottom Line: So far fewer than 1 in ericans have indicated that they have personally felt impact from the partial Government shutdown. If you’re part of the 90%+ that haven’t felt the impact thus far here’s why. The CBO has stated that 83% of the Federal Government is still operational during the partial shutdown. It would appear that many in
Confirmation that we don’t have to default if we don’t raise the debt ceiling:
Bottom Line: Last week I calculated the average tax revenue coming into the Treasury daily and the mandatory obligations of the Federal Government. The quick summation if you missed that entry:
So we average enough revenue from taxes daily to support all mandatory Federal Government spending. That means that we don’t have to default on obligations even if we don’t raise the debt ceiling. Yesterday Moody’s analytics team came to a similar determination. While they didn’t produce specific numbers as I did, they did state that we should have enough revenue to meet debt obligations that would prevent a
In other words… As cited in the entry above 17% of the Federal Government is currently in shutdown mode. If we didn’t raise the debt ceiling that would need to expand to 43% of the Federal Government (or close to that figure). Those choices would certainly be more difficult to make and more Americans would feel in impact of a quasi forced balanced budget… But as this situation presents itself right now, we would only default if the Treasury would choose to have us default.
Few mortgages affected by partial shutdown:
Bottom Line: Last week I calculated that only 8.7% of all home transactions had the potential to be impacted (slowed down) by the partial Government shutdown. One week later the actual percentage of loans negatively impacted has been about 5%. Virtually all conventional loans are unaffected and even most FHA loans. Those who are most likely to be affected?: Small business owners who do need income verified by the
So for about 95% all folks who want to obtain a mortgage, fear not, you should be able to proceed with the process as usual.
Update on Wal-Mart's made in
Bottom Line: Just over a year ago Wal-Mart stated that it would strive to have at least half of all merchandise sold in their stores made in
Wal-Mart has made tangible progress. In the last year Wal-Mart has increased it’s spending on US made items by $5 billion over the prior year. A new manufacturing facility related to producing products sold in Wal-Mart stores has opened in
Poor generic financial advice:
Bottom Line: I could go through a series of examples of poor financial advice being offered through news stories since the partial government shutdown. In fact more often than not I disagree with the information that’s supposed to be helpful to you. Most stories I’ve read suggest you make certain changes to your financial plans and investments.
Unless you’re on the verge of retirement you likely shouldn’t be altering your long term financial plans and investments at all. The biggest mistake I see people who are trying to save for the future make, is changing the plan again and again. Some financial advisors will call it raising cash or rebalancing. In most cases I call it bad advice. I’ve been actively studying financial markets and investing for 22 years. There is only one time in which the average person saving for their retirement needed to dramatically make adjustments based on short term events. That was prior to the financial crisis in the fall of 2008.
It’s always good to be informed about your financial plan. It’s a good idea to ensure you’re on the same page with your financial advisor but for many if not most people it’s likely a bad idea to start making a bunch of changes to current plans.
Generation tune out?:
Bottom line: It may not surprise many that Millennials are consuming less news and information than older generations. What’s worth noting is that they are consuming less news and information than previous generations at there age. By the numbers. The
What’s worth noting is that Gen Xer’s consumed 63 minutes worth of news when they were the age of Millennials. So perhaps we do have a generation that is just starting to tune “it” out.
Don't ever share credit info on Facebook:
Bottom Line: This should be common sense for most but it wasn’t for Transunion. Transunion has started to phase out a feature that allowed consumers to share credit score information on Facebook. Yes they actually have such a feature. While it didn’t share the most sensitive personal information, it still provided enough that made some people targets.
Would be ID thieves were able to see who were good targets for fraudulent credit accounts. Those with good and clean credit made for better targets. The bottom line is that whether is a share button from a credit agency or just a posting bragging about one’s credit, we shouldn’t do it. You never know who is watching.