Archive of posts filed under the Awareness category.
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60% OF AMERICANS FEAR RUNNING OUT OF MONEY OVER DEATH

8 July 2010, 11:16 am

200_piemore

Allianz Life Insurance Company released a June 2010 survey of 3,257 people to find out what scared people the most: running out of money in old age or death itself. Quite surprisingly, the results came back showing 61% of Americans between 44 and 75 fear depleting their assets over the inevitability of death. Nearly all respondents (92%) believe this fear of outliving our savings stems from the crisis facing the  retirement system in the United States.

According to the study, those who were relying on employee pensions were less concerned about their retirement future than those whose personal savings were in the bank or wrapped up in 401K plans. Since 57% of those questioned saw a major dip in their net worth because of the recent recession, results also confirmed that some 47% of respondents have found a way to lower their daily spending and 11% have told their children to expect less financial support. If you would like further information about how you and your family can manage your assets please contact our California private fiduciaries and trustees.

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WILL SOCIAL SECURITY BE THERE FOR US?

21 February 2010, 2:38 pm

By Shelley Ocaña, Private Fiduciary

For those of you new and seasoned private fiduciaries who are planning for your own financial future, you might want to take a second look at the health of the Social Security system. Whether your benefits will be there for you when you finally retire is a big question.  Most of us know that our accumulated Social Security benefits were never meant to be the only source of income in our retirement years, but the sad state economy is in may change this perception.

The stock market decline last year and it’s continuing volatility coupled with the staggering unemployment rates, cost of living increases and plunging real estate valuations has eroded nest eggs previously thought to be our future financial security.   Senior citizens all over the country are seeking or returning to work in some capacity just to make ends meet. There are some who will find themselves dependent on their Social Security benefits as their only source of income later on in life.

The serious financial problems facing the Social Security system is no secret.  In fact, in 2016 the Social Security Administration will begin paying more out in benefits to retirees than it is collecting in taxes from the younger working generations.  Without changes to the system, the Administration reports that by 2037 the Social Security Trust Fund will be exhausted.  That is only 27 years from now.

Without serious changes and reforms soon, Social Security benefits will not be available  through retirement years  to those of us who have paid into the system our entire working lives.

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BEWARE FAKE GRANDKIDS CALLING FOR CASH

5 January 2010, 3:21 pm

If someone claiming to be a relative asks you to wire money for an emergency, be suspicious. Scammers have already bilked ‘grandparents’ for more than $3.5 million.

By CreditCards.com

Dear ‘To Her Credit’:

I just got a call from someone claiming to be my granddaughter. She said she was in Montreal and had been in a car accident. She said her credit card wasn’t working in Canada. She asked me if I could send her $4,000 by Western Union so she could get her car fixed and get home. She promised to pay it back as soon as she could.

I asked her where her husband was, and she said he didn’t go with her. She didn’t want to tell him she’d been in an accident. When I asked if her parents knew about it, she said she didn’t want to tell them yet either.

I said I didn’t have $4,000 but could send her $1,000. She said that would be OK.

When I went to Wal-Mart to send the money, the clerk got suspicious when she found out I was wiring money to Montreal. She said Montreal has a reputation for fraud, and she asked if I was absolutely sure it was my granddaughter who had called. Come to think of it, I wasn’t sure at first which granddaughter it was, and she didn’t volunteer her name. But I was embarrassed to ask my own granddaughter who she was.

So I came home without sending the money, and now I don’t know what to do. If it’s my granddaughter, I can’t leave her stranded in Montreal. After all, I promised the money.

If it’s not her, I sure don’t have that kind of money to send to crooks. What should I do? I have the phone number where she is waiting for the money. — Martha

Read the editor’s response to Martha, and other relevant articles here.
This article was posted to MSN Money on Nov 30, 2009.

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LENDERS TO HALT FORECLOSURE EVICTIONS OVER THE HOLIDAYS

5 January 2010, 3:00 pm

Provided by Craig Curreri

Fannie Mae and Freddie Mac will suspend foreclosure evictions from December 19, 2009 through January 3, 2010.  To help struggling families over the holidays, both owner-occupants and tenants living in properties foreclosed upon by Fannie Mae will not be evicted.  Freddie Mac’s suspension of evictions will be limited to properties up to four units.

In a similar move, Citigroup Inc. will suspend foreclosure sales and evictions for 30 days through January 17, 2010 for loans it owns.  Citigroup’s foreclosure moratorium, however, does not extend to loans it services on behalf of other investors.  Given these developments, other lenders may follow suit, so check with the lender if appropriate.

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Smart Financial Actions to Take Before the End of 2009

15 December 2009, 5:27 pm

With only a few weeks left in 2009 its time to take a good look at your year-end finances and make sure all your investments are in order. Gift tax exclusion, donations and contributions, and distribution requirements are important aspects to consider before the end of the year. As always, we recommend you meet with a professional financial advisor regarding your finances. Happy holidays to everyone and a happy New Years!

1.       Evaluate the impact of a Roth IRA conversions – talk to your financial and tax advisors

2.       The 2009 gift tax exclusion is  $13,000 per person – each spouse can make a $13,000 gift to each of their children without any gift or estate tax consequence.

3.       Maximize contributions to your 401(k) plans

4.     A temporary tax law change waives the minimum distribution requirement for 2009, so if you do not need the funds in 2009, don’t take your minimum required distribution.

5.       Up to $4,000 of higher education costs for yourself, your spouse or a dependent can be deducted from taxable income in 2009 if you meet income limits.  Talk to your financial advisor.

6.       You can claim first year bonus depreciation equal to 50% of the cost of most new equipment and software acquired and placed in service by 12/31/09.  Take advantage of the temporary tax breaks for equipment and software purchases if you own a business.  For tax years beginning in 2009, the maximum Section 179 deduction is $250,000 with reductions in the deduction for any qualifying property that exceeds $800,000.

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