It’s looking more and more that if you have discipline and want to save for the future, going to college may be a bad investment. A four year college degree costs too much and proves too little. It has become increasingly unlikely to be able to make up the cost of a college degree, even with the fact that college grads get paid more.

In an example for the New York Post as written by SmartMoney associate editor Jack Hough, if you look at two people from similar backgrounds each of whom save $16,594 for college. One decides to not go to college and invests his savings in a mutual fund that tracks the broad stock market. He ends up making an average pay that peaks at $32,538. He adds to his savings 5% of his after-tax income and it returns 8% a year.

His friend goes to college. He goes to public school and transfers to a private school. He ends up spending $48,286 in tuition and fees. These fees do not include room and board. He ends up spending $34,044 after grants. When he finishes school he owes $17,450 at 5% in student loans. He starts making just over $23,000 a year after taxes and peaks at almost $57K. Like his friend, he sets aside 5%. It will take him 12 years to pay off his loans. When he finally escapes from the debt at age 34, he starts investing in the same fund as his friend. He is able to make bigger monthly contributions. However, when they reach 65, the friend who didn’t go to college will have saved almost $1.3 million while the one with the degree will have less than a third of what his friend saved.

I believe that this all comes back to the fact that many people don’t think about saving rather they want to have a comfortable lifestyle while they can enjoy it. I’m not saying that you can’t enjoy things when you’re 65, but you can enjoy travel and have more ability to do so when you’re younger.

How does one open a Swiss bank account online and what advantages does this provide? The process of opening a foreign account may not be as complicated as it seems. Some banks may actually let consumers open an account with out a minimum initial deposit and even without any monthly maintenance charge or service fees. What are the advantages of when you open a Swiss bank account online?

Advantages include a worldwide account; one that you exercise full control over. An international or worldwide account is protected from economic troubles because it is not located in America, thus not subject to American law. Even if the American dollar should continue to sink in value you have the ability to store money in various currencies, including USD, EUR or CHF. This can also be seen as a way of diversifying your income and assets. For instance, many people believe that the U.S. government has the right to seize your assets at any time. Some predict that if the current economic crisis continues that the government will start applying more pressure on the wealthier class. This is debatable, but one thing is for sure: the U.S. government certainly does have the right to access your bank accounts at any time.

Furthermore, you as an American citizen are also subject the bank’s policies, not to mention your own country. That means that if a banking institution files for bankruptcy you could lose all of your funds, depending on the bank’s policies of insurance. The freedom to be a “multinational” businessperson, not one dependent upon a single country, is quite a privilege.

If you desire to open a Swiss bank account online then you are not under obligation to fly to Switzerland, nor do you have to be rich. The practice is not illegal, and there are no laws against opening such an account. It is very possible that the government doesn’t like the idea of not having access to your account, and this is why many American citizens are seeking out this international opportunity. Banks provide full privacy from all prying eyes. When you open a Swiss bank account online you can choose between different types of accounts like a high yield savings account, student bank account, current bank account, and business bank accounts

While it is legal to open a Swiss bank account online, it is not legal to use such an account for tax evasion purposes. The Swiss bank account will not investigate you, but the U.S. can catch up to a trail of deceit. Therefore, remember that it’s always illegal to avoid paying taxes that you earn from using American currency.

What does the choice to open a Swiss bank account online have to do with a payday loan? It’s possible that some individuals may try and open a Swiss bank account online as a means to guarantee a savings account. This is a wise move, especially considering the instability of the United States’ economy. However, withdrawing money from a savings account, even an international account, may not always be the best course of action.

The idea of a savings account is to save money—not to withdraw it if at all possible. Most people assume that they have no other options but to reach into their savings account (or even to open a Swiss bank account online) to take the money they currently need. Consider another option: payday loans. These loans are not typical bank loans. They do not require credit checks or lots of paperwork and waiting processes. Rather, they are approved online and can give borrowers up to a couple thousand dollars via instant transfer.

Borrowers can use this money to catch up on personal bills, to purchase personal expenses or to use as capital for their business. These loans are short-term loans and are usually repaid within a paycheck’s amount of time—usually 30 days or less. This minimizes on the interest and eliminates most of the long, drawn out paperwork process involved with a traditional loan or in the choice to open a Swiss bank account online.

When you open a Swiss bank account online or take money from your savings, you may affect your interest rate or incur other bank charges. Taking a payday loan is easy, fast, and doesn’t carry a great deal of risk. Don’t assume that you are all out of options whenever you meet with financial adversity. Everyone is feeling the effects of the economic crisis. Loan companies can provide fast loans without scrutinizing creditworthiness. If you can manage to use on-hand funds (even short-term loan companies) to pay for imminent expenses, and avoid dipping into your savings account or trying to open a Swiss bank account online, then you can create a more stable financial future for your retirement.

A report from Age Concern in April said that 24% of seniors in the United Kingdom, around 2.5 million citizens, think that the quality of their lives has diminished during the last year. Twelve months prior to the April 2009 study, the number of citizens who believed this was around 2 million.

The truth is that one out of every five seniors live below the poverty line. Those who are below the poverty line have to do what they can to make ends meet; which includes skipping meals or missing out on essential items. Many are going without electricity and cutting back on gas consumption.

Many seniors who lived through World War II and throughout the post war period have acquired skills that they are now employing to meet their most basic needs. Cooking from scratch instead of buying meals that are already made or going out to eat, from what they cook, eating more leftovers, sewing and fixing their own clothing and growing their own vegetables are all some of the things that seniors are finding themselves doing to save money here and there.

Sixty eight percent of those seniors surveyed feel as though they aren’t held in high reguard by politicians and most have little confidence that the government will help the senior population throughout this recession.

Worse yet, is that many of those seniors that are finding they have to go back to work to just afford those basic necessities are coming up against age discrimination. Men who are older than 50 only have a 20% chance of getting the same job two years after leaving. Then once they lose their job, for every year that goes by, their chances of finding a similar job drops by a further quarter.

In the United States, there is a similar situation. Many seniors are finding themselves going back to work, if they can find work. Some who once held jobs in manufacturing plants simply can’t do work like that anymore due to health issues. If they can do the work, then it is hard to find that kind of work. Even those who had professional desk jobs are having a difficult time finding work. Rules and regulations change over time and if someone is out of that element for any extended period of time, then new rules typically won’t be learned as opposed to someone who is in the business who will know those regulations.

Age Concern’s “One Voice” report ended with seven priorities for action in 2009 for seniors. Those priorities included banning the required retirement age (in the UK), helping with age discrimination by educating seniors in skills, and spending 1 to 2 billion pounds on social care.

You just spent the last four years preparing for the rest of your life. As the Rodney Atkins song says, you “majored in beer and girls”.  (If you did, you are part of 5.4 million college bingers. Be not ashamed.) You spent five long minutes every week writing answers on every part of your body that you can pull out of your clothes to look at during the exam. Okay, maybe some of that is exaggerated. I really do hope you did the best you could throughout those four years of college and did your best to prepare yourself for the next 45 years of your life (or more, these days).

One thing they probably did not teach you is money management. You will have a mortgage, car payment, marriage (likely complete with two or three curtain climbers), food, etc. The list goes on. Money does not buy happiness, but if you hang on to a little of it and manage it wisely, you will be a much happier and successful person. The first step is learning how to manage that dollar no matter how big a hole it is burning in your pocket.

The first thing you need to learn is that we do not have control. We can stock all the money away that we want, invest as much as we can, but the truth is that the government and the free market have total control. All we can do is try to steer clear of the obstacles the economy throws in our way. Try to plan ahead and give yourself a financial cushion.  Very much like the commercials played here in Maryland for Baltimore’s St. Joseph’s Hospital concerning their heart department‘s heart attack risk assessment program. It begins with a man they introduce by name. They mention all the things he does right– he jogs every day, eats right, smoke free and alcohol free, but in three days he will have a massive heart attack. You could do everything right but then have a financial attack. Just learn to do the absolute best you can with every dollar you earn.

Work hard at all the right things. Be proactive. Be ambitious. Raise your hand for new challenges. Experience new things. Beef up that résumé. Do something you like that is still financially rewarding. Network properly in your industry. Most importantly, look for good benefits. Example: many employers reward their employees with stock portfolios (401k) which will likely grow. Live your life toward one central financial and occupational goal and live up to it.

Decide what “rich” means to you. There is another country music song that says that you do not have to make a million dollars if you are putting food on the table and providing for your family. If you only make $60,000 per year but it pays for that townhouse you bought in Hanover, PA, pays the bills, buys the bread, and allows you a little money left over to stock away and you are okay with that, you have succeeded. Just remember to live under your means and put those extra few bucks away every month.

Understand the fiscally responsible way to live. Pay off credit cards on time, more than the monthly payment; total balance if you can. Banks should be paying you interest, not the other way around. If you are paying interest, you are wasting money. Treat your credit score like a baby. One mistake could kill that poor child. One mistake in your credit could be the difference in that loan you want. Learn how to manage your money properly. Get down to the dime if possible in your budget. As mentioned in a previous article, there are easy ways to budget. Some people swear by the envelope method. Understand the cost-benefit analysis of your investments. Take good care of your health. Remember that a million dollars is more than enough for retirement. The investment companies want you to invest a million with them but in reality, $350,000 is plenty if you are fiscally responsible. Last but not least, be giving and grateful. This all leads not only to happiness but financial security.

“Now his pension plan’s been cut in half and he can’t afford to die,” sings John Rich, of the country music duo Big & Rich, in his new, controversial song, Shutting Detroit Down. Two things nobody is ever financially ready for, especially if he or she is a money spender: retirement and death. Financially speaking, it is hard to die at the right time, unless you know much more than anyone else and can plan your death. People are so wrapped up in saving for retirement, 401k plans, life insurance plans, IRAs, money markets, or anything else they can find that will provide extra money for retirement and death. If you die too early, the paychecks your family was living off of are gone. If you die too late, you impoverish your family or confine yourself to an unpleasant local retirement home by depleting your savings.

One unexpected side effect of the recession is a jump in sales of fixed immediate annuities, which dispense guaranteed income for life. New York Life reported an 82% sales increase this quarter alone. A man at retirement age paying them $100,000 now will receive $650 a month for life, which is perfect for a retired man whose house and vehicle are paid off and bills are low. That’s equal to 7.8% of the total each year, double what most retirement investments pay out.

Christopher Blunt, who runs New York Life’s retirement division believes that annuities offer the best way to lock in guaranteed retirement income. Retirement income is  generated from a stock-and-bond portfolio requires keeping plenty of assets in reserve in case they’re needed to fund a long life or contend with a nasty bear market,” he says. The point is that you can get the same retirement income as you could from your portfolio, with 25% to 40% less principal.

The way they generate superior retirement income is by transferring it from those who do not collect it to those who do. For instance, if you pay them $100,000 and die three days later, your money is lost and goes to someone who is still collecting. However, if you live until you’re 85 and you have been collecting since you were 65, you have received $156,000 over the tenure of the relationship, over 50% profit. If you are lucky to live to 95, you have likely received $234,000, with a profit of nearly 150% of what you paid. For those who are healthy at 65, it is a good investment, especially if that person also has savings and stocks to tide over through bad times or to leave to their families. Assuming you are in good health, there are few downsides to a fixed annuity, especially if you keep your product features simple. You pay $100,000 of your savings to provide for the rest of your life. If you have been saving well for retirement, you likely still have $350,000 to leave to your family whether you collect or not.

Here is the text of the speech:

“My fellow citizens:

I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors. I thank President Bush for his service to our nation, as well as the generosity and cooperation he has shown throughout this transition.

Forty-four Americans have now taken the presidential oath. The words have been spoken during rising tides of prosperity and the still waters of peace. Yet, every so often the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because we the people have remained faithful to the ideals of our forebears, and true to our founding documents.

So it has been. So it must be with this generation of Americans.

That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.

These are the indicators of crisis, subject to data and statistics. Less measurable but no less profound is a sapping of confidence across our land — a nagging fear that America’s decline is inevitable, and that the next generation must lower its sights.

Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America — they will be met.

On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.

On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn out dogmas, that for far too long have strangled our politics.

We remain a young nation, but in the words of Scripture, the time has come to set aside childish things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free and all deserve a chance to pursue their full measure of happiness.

In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned. Our journey has never been one of shortcuts or settling for less. It has not been the path for the faint-hearted — for those who prefer leisure over work, or seek only the pleasures of riches and fame. Rather, it has been the risk-takers, the doers, the makers of things — some celebrated but more often men and women obscure in their labor, who have carried us up the long, rugged path towards prosperity and freedom.

For us, they packed up their few worldly possessions and traveled across oceans in search of a new life.

For us, they toiled in sweatshops and settled the West; endured the lash of the whip and plowed the hard earth.

For us, they fought and died, in places like Concord and Gettysburg; Normandy and Khe Sanh.

Time and again these men and women struggled and sacrificed and worked till their hands were raw so that we might live a better life. They saw America as bigger than the sum of our individual ambitions; greater than all the differences of birth or wealth or faction.

This is the journey we continue today. We remain the most prosperous, powerful nation on Earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished. But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions — that time has surely passed. Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.

For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act — not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology’s wonders to raise health care’s quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. All this we will do.

Now, there are some who question the scale of our ambitions — who suggest that our system cannot tolerate too many big plans. Their memories are short. For they have forgotten what this country has already done; what free men and women can achieve when imagination is joined to common purpose, and necessity to courage.

What the cynics fail to understand is that the ground has shifted beneath them — that the stale political arguments that have consumed us for so long no longer apply. The question we ask today is not whether our government is too big or too small, but whether it works — whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end. Those of us who manage the public’s dollars will be held to account — to spend wisely, reform bad habits, and do our business in the light of day — because only then can we restore the vital trust between a people and their government.

Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control — and that a nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our gross domestic product, but on the reach of our prosperity; on our ability to extend opportunity to every willing heart — not out of charity, but because it is the surest route to our common good.

As for our common defense, we reject as false the choice between our safety and our ideals. Our founding fathers … our found fathers, faced with perils we can scarcely imagine, drafted a charter to assure the rule of law and the rights of man, a charter expanded by the blood of generations. Those ideals still light the world, and we will not give them up for expedience’s sake. And so to all the other peoples and governments who are watching today, from the grandest capitals to the small village where my father was born: know that America is a friend of each nation and every man, woman, and child who seeks a future of peace and dignity, and that we are ready to lead once more.

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

We are the keepers of this legacy. Guided by these principles once more, we can meet those new threats that demand even greater effort — even greater cooperation and understanding between nations. We will begin to responsibly leave Iraq to its people, and forge a hard-earned peace in Afghanistan. With old friends and former foes, we will work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet. We will not apologize for our way of life, nor will we waver in its defense, and for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you.

For we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus — and non-believers. We are shaped by every language and culture, drawn from every end of this Earth; and because we have tasted the bitter swill of civil war and segregation, and emerged from that dark chapter stronger and more united, we cannot help but believe that the old hatreds shall someday pass; that the lines of tribe shall soon dissolve; that as the world grows smaller, our common humanity shall reveal itself; and that America must play its role in ushering in a new era of peace.

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society’s ills on the West — know that your people will judge you on what you can build, not what you destroy. To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist.

To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds. And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to the suffering outside our borders; nor can we consume the world’s resources without regard to effect. For the world has changed, and we must change with it.

As we consider the road that unfolds before us, we remember with humble gratitude those brave Americans who, at this very hour, patrol far-off deserts and distant mountains. They have something to tell us, just as the fallen heroes who lie in Arlington whisper through the ages. We honor them not only because they are guardians of our liberty, but because they embody the spirit of service; a willingness to find meaning in something greater than themselves. And yet, at this moment — a moment that will define a generation — it is precisely this spirit that must inhabit us all.

For as much as government can do and must do, it is ultimately the faith and determination of the American people upon which this nation relies. It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours. It is the firefighter’s courage to storm a stairway filled with smoke, but also a parent’s willingness to nurture a child, that finally decides our fate.

Our challenges may be new. The instruments with which we meet them may be new. But those values upon which our success depends — hard work and honesty, courage and fair play, tolerance and curiosity, loyalty and patriotism — these things are old. These things are true. They have been the quiet force of progress throughout our history. What is demanded then is a return to these truths. What is required of us now is a new era of responsibility — a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task.

This is the price and the promise of citizenship.

This is the source of our confidence — the knowledge that God calls on us to shape an uncertain destiny.

This is the meaning of our liberty and our creed — why men and women and children of every race and every faith can join in celebration across this magnificent Mall, and why a man whose father less than sixty years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.

So let us mark this day with remembrance, of who we are and how far we have traveled. In the year of America’s birth, in the coldest of months, a small band of patriots huddled by dying campfires on the shores of an icy river. The capital was abandoned. The enemy was advancing. The snow was stained with blood. At a moment when the outcome of our revolution was most in doubt, the father of our nation ordered these words be read to the people:

“Let it be told to the future world … that in the depth of winter, when nothing but hope and virtue could survive…that the city and the country, alarmed at one common danger, came forth to meet (it).”

America, in the face of our common dangers, in this winter of our hardship, let us remember these timeless words. With hope and virtue, let us brave once more the icy currents, and endure what storms may come. Let it be said by our children’s children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God’s grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.

Thank you. God bless you. And God bless the United States of America.”

Source

We, as United States taxpayers, have funded companies with $700 billion. It is OUR loan to THEM. However, the economy is still sub-par and there are no investments that we can put our money in for safety with the guarantee of even a tiny profit.

Short run T-bills have 0% interest rate. From what I’ve learned in my managerial finance class, when the T-bills is at 0% that means the risk free rate of interest on an investment is 0% and anything above that (such as on a corporate bond) included a default and market risk premium. (To me) that means any coupon rate on a bond (corporate, municipal, etc) is all risk…

The point I’m trying to make is that the bailout was supposed to help the economy…so when will that happen. There are thousands, if not millions, who are losing their retirement funds in the market. When will they be bailed out?

At this point I believe that investors with 401(k)s and other retirement investments are just trying to see their money stop depleting, even though in a couple of years the market will bounce back, no one likes seeing all their savings disappear.

Hopefully this will not be a deep recession and the global economy won’t suffer as much as some are thinking it may.

Desire first, and plan second. There is nothing wrong with desiring wealth, it is perfectly logical. With wealth comes power, recognition, and the ability to have or change almost anything. Dreams come true, and doors open that otherwise might have been closed. In fact, I encourage thinking about your wants and desires; it is the single most effective way to understand what you want out of life. Now that you know what you want it’s time to lay the groundwork.

Because everyone has a different desire, everyone’s plan to success will be different. Factors such as time, income, and working capital come into play, but there are many ways in which everyone’s plan should be the same. A plan must have a start and an end; without which a path cannot be made to connect the two. The start must describe you as you are now with all truths revealed, the more information you list the better. This helps to establish a “true starting point” as well as an important honest acknowledgment of you. Things that might be included could be your age, current income minus debits, working capital (savings), time frame restrictions (moving, school, retirement, etc.). The end must be equally truthful and honest if your desire is to be a millionaire, have a clothing line, run your own successful law firm, or retire in 5 years then write it down along with all other goals/desires that you have. The more the merrier, your desires need to be written out.

The correction is in the connection. I give out advice a lot to people, mostly on how to get from point A to point B, but I tell them they are looking at it wrong. The best way to from A to B is to go from A to C. A is the start, B is the middle, and C is the end. Most people can only see what they have, and know only what they want.

The middle is simple, and should start simple; the simpler the better. Baby steps helps you succeed here, because we are looking for success not failure. Want to turn $10,000 into $1,000,000 in 5 years? Sit down, grab a pen, and find out mathematically what that comes down to a month. If you hit a wall; find a solution, or an idea. Will the increase in equity come from working more hours, making good investment decisions, or starting a new business? What is your backup plan? How do you plan to carry each task out? Create. Solve. Evolve. The middle is a jigsaw puzzle, include backup plans; use real numbers not guesses for success. Do not lie to yourself in your attempt to get from A to C, it will almost always lead to failure. Create steps that are attainable in order to give yourself a sense of accomplishment when you complete them. When you are done, know that you are focused and that your goals are within your grasp. Soon you will hunger no more.

Watching this debate, I would like to know where to find a plumber that makes $250,000 a year. My father surely didn’t.

I personally didn’t think they spent enough time on focusing on how to fix the economy. There are more Nancy home makers and Steve the cubical magician than Joe plumbers…Nancy and Steve are losing their retirement funds and their children’s college funds. What about them Senators?

At least this debate is over, now all I have to do is get past November 4th and hopefully the election will be over…

Many consumers have one eye on their wallets and the other on their portfolios and retirement investments. Oil prices falling could be the only good news coming out of Wall Street in the last couple of weeks.

Oil prices have dropped so much so fast that even OPEC is thinking about dropping production just to raise prices…however I don’t believe that would help at all. If OPEC drops production and prices go up, demand will just fall and prices will stabilize.