The Top 5 Money Problems Americans Face-Erika Rawes

Source: Thinkstock

Most of us are no strangers to financial issues. You may have heard about the groundbreaking AP research from last year, which found that 4 out of 5 American adults are faced with economic insecurity at some point during their lives. This means that 80 percent of us have felt the worry and anxiety associated with losing a job, living on an income that’s near the poverty level, or being reliant on some form of welfare.
This statistic is shocking to most people who hear it as we often think only the lower earners (the lower and lower-middle class) deal with serious money problems. To find out the vast majority of Americans have been in this same boat is not only surprising, it’s a bit disconcerting. Even when we achieve a level of financial security and freedom we have to wonder, is it permanent? Many Americans fear for their financial future.
A recent survey by Money-Rates asked people about their financial worries, regrets, and fears. The survey was conducted by Op4G and it polled 2,000 respondents, asking them the questions: What would you like to change most about your financial behavior? And also, how would you put a $10,000 windfall to use?
Using the result of this Money-Rates survey, coupled with information from last year’s survey and other resources, we ranked the top financial problems people are facing these days.

1. Problems making ends meet, let alone feeling comfortable

Regularly meeting essential expenses was the most common financial concern among the survey participants. More than one-third (35 percent) of the Money-Rates survey respondents said that paying regular financial obligations — bills, a mortgage or rent payment, credit card payments, etc. — was their biggest financial worry. With so many Americans living paycheck to paycheck, it’s no surprise that people having trouble paying for these essentials.
While some survey respondents worried about needs, others worried more about wants. A large portion of the men surveyed (more men than women) said financial comfort was at the top of their priority list. Last year’s survey results indicated that financial comfort was high on the priorities list, as three out of 10 (just over 30 percent) of those surveyed identified their single biggest financial worry as “ensuring I have enough to maintain a comfortable lifestyle.”

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2. Living for today

According to a Federal Reserve survey release from earlier this year, “Thirty-one percent of non-retired respondents reported having no retirement savings or pension, including 19 percent of those ages 55 to 64.”
With close to one-in-five of those near retirement having zero retirement savings, it’s no wonder so many respondents (40 percent) cited a lack of savings as their biggest financial regret, and another 36 percent of people said they feared they would not be able to retire comfortably.
On top of these individuals who regret not saving, there are also those individuals who are, for the most part, completely focused on the present. According to that same Federal Reserve release, 24 percent of people have given little thought to retirement planning and another 25 percent have given no thought to retirement planning at all.

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3. Accumulating too much debt

If $10,000 fell out of the sky and into your lap, how would you use it? Around four in 10 (41 percent) of those who participated in the Money-Rates survey would pay down debt with that money. High amounts of debt is a large concern for many Americans. Last year’s survey found that around one out of five people (20 percent) feel that accumulating too much debt is their biggest financial regret.
The average household’s credit card debt exceeds $7,000, according to Nerd Wallet. In addition to this debt, many Americans also have to worry about mortgages, car loans, and of course student loans. Last year’s Money-Rates survey also found that 8 percent of people feel that paying student loans is their biggest financial worry.

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4. Making poor purchasing and investing decisions

Some American households are still feeling the sting of the recession. According to the Federal Reserve survey, “over 60 percent of respondents reported that their families were either ‘doing okay’ or ‘living comfortably’ financially; although one-fourth said that they were ‘just getting by’ financially and another 13 percent said they were struggling to do so.”
Even those who no longer feel the impact of the economic downturn still have to face the results of their own decision making. A large portion of the survey respondents (46 percent of men and 26 percent of women) acknowledge the impact of their financial decisions and say they’d like to work towards making wiser investment or purchasing decisions.

Source: Thinkstock

5. Being unable to enjoy money

On the entirely opposite end of the spectrum, there is that handful of people out there who are completely money-conscious. These individuals are financially healthy, they budget and plan where every penny is going to go, and their financial future is secure (as much as it can be).
Nearly 12 percent respondents from last year’s survey said their biggest financial regret was being too cheap and not allowing themselves to enjoy their money. A little over 10 percent of respondents said that if they could change only one thing about the way they handle money, they would enjoy their money and spend it a bit more freely.

Source The wallstreetcheatsheet

Why Being a Millionaire At Retirement Isn’t a Big Deal Anymore-AdviceIQ

For many, millionaire status is a pipe dream. But to be reasonably comfortable in your golden years, a million dollars is only the threshold.
Celebrated in song, literature, movie plots and motivational seminars, becoming a millionaire status was a sign of financial independence. In the past, perhaps. Today, not so much.
Retiring baby boomers find, as baseball legend Yogi Berra said, “The future ain’t what is used to be,” and neither is a million dollars. It takes $6.2 million today to buy what $1 million bought in the 1970s. Over the past 40 years, inflation averaged 4.83 percent a year, with total inflation at 383 percent.
To minimize the risk of running out of money in retirement, not withdrawing more that 4 percent of principal a year, it takes $1.25 million dollars to provide $50,000 a year in cash flow. That’s $4,166 before taxes per month, hardly a princely sum.
However, the near-retirees are not even close to that baseline. The average savings of a 50 year old is $43,797, according to statisticsbrain.com. Already, 80 percent of those ages 30 to 54 do not believe they will have enough money by the time they retire. Sadly, many of them are right.
Outside of winning the lottery or a big inheritance, financial freedom is a do-it-yourself project. There is no magic, but there are strategies. Obviously, saving for the future is foundational, but you must recognize the time value of money.
To be a millionaire by 65, starting at 30 with savings growing at 6 percent annually, you need to invest $2,164 per month. Wait until 35, and you must save $3,164 per month. Starting at 40, a startling $6,102 per month. Learning to control debt and wasteful spending as well as disciplined saving and investing at a young age pays off.
How else to get there if you are not one of those big-money singers, actors, sports stars or technology wunderkinds?
The millionaires I know as a financial advisor did it the old-fashioned way through hard work and prudent and disciplined saving. They took advantage of stock options, pensions, company retirement plans and other benefits. Some built closely-held businesses with sustainable value and well-thought-out succession plans.
They invested in stocks with sufficient patience and discipline to ride through periodic downturns. In many instances, they added money to equity accounts when everybody else panicked and sold, a strategy the legendary investor Sir John Templeton advocated years ago. They invested in real estate, exercising prudence relative to long-term investing, and paying attention to market cycles.
They were not afraid to pay for good financial planning, legal and tax counsel to keep and grow more of what they earn. They answered the “what if?” questions with defensive strategies involving life, health, disability and liability insurance to secure the future. They recognized the wisdom of a comprehensive estate plan so as to not leave their family and surviving spouse in dire straits.
What is your plan for retirement security when $1million is no longer enough?

Culled from Wallstreetcheatsheet

There is literally not a single woman in this iPhone 6 queue

Smartphone launch proves a veritable sausage party

The iPhone 6 and iPhone 6 Plus finally go on sale around the world today and outside Apple's Covent Garden store in London there is already a colossal queue, albeit one with a pretty skewed gender ratio.

I've been staring at this image taken by passer-by Will Perrin for about 15 minutes now, and I still can't find a female anywhere in the snaking queue.
I guess there is somewhere, just not visible from that particular viewpoint, but one thing is for certain: Apple is absolutely nailing the 'guy wearing inoffensive navy t-shirt and wrist watch' demographic.
Early reports suggest demand is particularly high for the larger of Apple's two new devices, the iPhone 6 Plus, seen as the company's first foray into the "phablet" (shudder) market.
The latest iteration of the prized smartphone comes after iOS 8 was released earlier in the week, a new operating system already proving more popular than God.

The Independent

Reps summon Diezani, NNPC GMD, NUPENG over strike-John Ameh

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke
| credits: File copy

The House of Representatives on Wednesday summoned the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, over the ongoing strike by oil workers in the country.

Also summoned were the Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Joseph Dawah, the leadership of the Petroleum and Natural Gas Senior Staff Association of Nigeria and the Nigerian Union of Petroleum and Natural Gas Workers.

The House issued the summons through its Joint Committees on Petroleum Resources (Upstream)/Petroleum Resources (Downstream); and Gas Resources.

In a statement signed by the three chairmen of the committees in Abuja, the House said it was worried that a strike in the oil sector at this time would adversely affect the country’s economy.

Those who signed the document were Mr. Muraina Ajibola (Upstream); Mr. Dakuku Peterside (Downstream); and Mr. Bassey Ewa (Gas Resources).

The statement noted that media reports indicated that members of staff of the NNPC had already embarked on strike.

“The Joint Oil and Gas Committee of the House of Representatives is concerned by the strike, as reported in the media by members of staff of the Nigerian National Petroleum Corporation,” it said.

The lawmakers observed that as the main driver of the economy, any strike in the oil sector would be costly.

The statement added, “Alive to our constitutional responsibilities, the joint committee has decided to intervene in this matter with a view to resolving whatever the issues may be.

“Accordingly, we have invited the Minister of Petroleum Resources and the affected unions and relevant stakeholders in the sector to a meeting for tomorrow, Thursday, September 18, 2014.

“Given the urgency of this matter, it is our hope that the relevant parties will attend this meeting.

“We enjoin the parties to work with us to resolve their differences in the overall interest of the nation.”

The joint committee fixed 11am as the time of the meeting.

Members of the Nigeria Union of Petroleum and Natural Gas and Petroleum and Natural Gas Senior Staff Association of Nigeria

Media reports indicated on Monday that a major cause of the looming crisis was the dispute over compliance with the Pension Reform Act, 2014.

The National Pension Commission had already given the NNPC a 12-month grace to ensure full compliance with the law.

On Monday, the Group General Manager, NNPC Public Affairs Division, Ohi Alegbe, had stated in Abuja that the corporation would ensure that the strike was averted.

The NNPC had added that as of 2010, there was N298bn funding gap in the pension scheme, which had been reduced to N85bn in June this year.

Source Punch