 Shrinking net worth is a "ticking time bomb" for Americans

U.S. households are still suffering from financial distress, according to the latest Consumer Distress Index, which measures housing prices, joblessness, budgeting, net worth and credit. Americans' net worth, an indicator of retirement readiness, has registered poorly since the counseling group CredAbility began the index 31 years ago. "The net worth number is the ticking time bomb," said Mark Cole of CredAbility. Read the full article on the Huffington Post.

Valentines Day Budget

Love is on a budget in 2012.   A new survey by Visa Inc. finds that Americans will spend less
on Valentine’s Day gifts, flowers, dining and other items this year. Americans plan on spending
$117 this Valentine’s Day, down 3% from $121 in 2011.   The survey indicates women are spending 14% less on their Valentines $87 in 2012 compared to $101 in 2011.   Men are actually planing on spending more this year, $149 compared to $140 in 2011---an increase of 6%.
 
There are lots of  meaningful ways to say I Love You to your Valentine, that don't put a punch to the wallet.

W-2's in the mail

You should receive your Form W-2 by January 31. If you do not receive it, or have questions about the information on your W-2, contact your employer or the IRS.

January is the month we all begin with our earnest New Year's Resolutions.  I found a list on line of Financial Resolutions which have helped me add to my list.  The 15 Simple financial resolutions listed on practical money's site are worth a read.   http://www.practicalmoneyskills.com/personalfinance/tipsandtrends/15resolutions.php
I also think the list should include revisiting our Record of Important Papers:  Updating our home inventory list;  Making sure our insurance coverage is still adequate;  Updating contact information in our address books and  electronic address files(backing them up).  Changing batteries in our home alarms.    In my financial literacy classes I remind my participants that those of us who live away from our family,  need to create a list within our address books of who they should notify should they are having to wrap up our affairs upon our death.  None of us are planning to die, but unfortunatley might.    This advise came close to home for me this past year when my brother died, I had no idea of who his friends and coworkers were and I felt badly about that.   His life had included working and residing in four different states.   Mine has been in yet another.   We saw each other at family events and talked regularly on the phone, yet I didn't know who all the people were that made up his life.     I certainly could have been more honoring of him, had I had a list of those that mattered to him ( outside of his  immediate family).  A final  suggestion---take a finacial literacy class  and learn how to use a financial literacy tool.

Baby Boomers: Caring for three generations?

Baby Boomers, are the next generation set to retire. Saving for retirement continues to be the top priority for this group also known as the Sandwich Generation.  Some of Baby Boomers’ stress could be because saving for their own retirement isn’t their only priority. According to the sixth annual Scottrade American Investor Survey, nearly one in four Baby Boomers (born 1945-1966) reported they are financially supporting an adult child and their sandwich is growing. Grandchildren are being added to their financial demands; 9 percent of Baby Boomers surveyed reported they hold a college or education savings account, an increase from 4 percent in 2010. And, while most (72 percent) continue to name retirement as their primary reason for investing, they also reported saving:

• For their own or a family member’s education expenses (11 percent)

• To build an emergency fund (36 percent)

• To reduce their debt (21 percent)

See full article from DailyFinance http://www.dailyfinance.com/2011/12/08/the-triple-threat-to-baby-boomers-retirement-plans/

A recent Wells Fargo survey finds that Americans are expecting to work longer to ensure they have enough money for retirement, 80 may be the new 65 for many American retirees. Of respondents age 40 to 59, 54% indicate they need to work in their retirement years, while only 34% of the 25 to 39 age group indicates they will be working in retirment.





At one of my last Managing Money in Tough Times workshops the financial reality facing retired Wyomingites became very apparant. We haven't been unaffected by the financial turbulance experienced in our country in recent years. It is a very real and difficult financial challenge for seniors who find themselves facing the reality of having outlived their retirement savings.





A tip from the class.... if at all possible, practice living on your retirement income before making the big decision to leave the workforce.

Retirees aren't planning far down the road, study finds

Many retirees overlook important issues such as health care costs in their planning, according to a study by the Society of Actuaries. "The study highlights the importance of retirees educating themselves on how to successfully plan for their retirement years while understanding the value of partnering with a trusted financial advisor for guidance," according to the society. Retirees with financial advisers increased to 61% this year, from 56% in 2008.