Economists generally determine that the country has fallen into a recession after two consecutive quarters of negative gross domestic product (GDP) growth. Since 1967, the United States has experienced seven recessions.The thing is, predicting a recession is a little like predicting a tornado. Experts are never exactly sure if or when one will occur, but they can cite when conditions a ripe for one based past experience. The good news for predictors is that the economy follows a similar pattern of indicators in the months leading up to a recession.The [...]

Statistics indicate that the average life expectancy is longer than it used to be, but empirically we see this every day among elderly people who have lived much longer than they probably expected. This phenomenon spotlights a particular component of retirement planning that was not as significant in the past as it is now: long-term inflation.While we’ve not experienced annual inflation rates this century as high as the latter part of the 20th century, inflation can balloon at any time. But what can be even more devastating to a retiree [...]

If you have a relative who recently died and left you in charge of his or her finances, you are not alone. You probably have colleagues at work in the same boat. A neighbor or two (or 10) and even your millennial yoga teacher might very well be working through a quagmire of wills, probates and assets nobody can find. You are definitely not the only one.The internet has made it much easier to keep track of our checking, savings and investment accounts. But the elder generation generally missed out [...]

Laws regarding retirement savings plans don’t change all that often or all that much. Occasionally, new regulations are issued mandating disclosures that no one ever reads – and inflation-adjusted contribution limits tend to inch up each year. However, there is one phenomenon that has been increasing over the past decade, and Congress is finally starting to address it.This phenomenon is that retirees are living much longer than in the past. According to Olivia Mitchell, Wharton professor of business economics and public policy, demographers have reported that the baby who will [...]

Members of the college graduating class of 2017 owed an average of close to $30,000 each in student loan debt. Imagine starting out adult life with that kind of debt load?The prevalence of this type of mounting debt for a 21- or 22-year-old is unprecedented in U.S. history – and all the more reason why young adults need sound financial advice. Financial advisors might not necessarily market to this demographic; instead, waiting until they’re older and have assets worth their while. However, if today’s young adults don’t get off on [...]

There are a number of threats that both retirees and pre-retirees are facing right now when it comes to drawing Social Security benefits. For example, there’s a new scam this year. Seniors are being solicited by callers who claim to be with the Social Security Administration (SSA). The caller says he regrets to inform that the elderly person’s Social Security payments have been suspended. The caller says it’s either because the beneficiary has been involved in a crime or there has been suspicious activity related to their benefit. Here’s the [...]

While employers have cut back on pensions and their 401(k) plans do not offer the same level of retirement income security, they have stepped up in the area of life insurance. The majority of Americans (68 percent) have a life insurance policy through their employer. In fact, more people get it through work rather than purchasing a policy on the market for the first time in history.Most employers offer term life insurance typically at a coverage rate of anywhere from one to three times a worker’s annual salary. Term life [...]

These days, people who live to age 65 can expect to live at least another 20 years. That means many are likely to require some form of assisted caregiving. According to aging experts, the following guidelines describe characteristics of those most likely to need long-term care:Age - Risk increases as people get olderGender - Women are at higher risk because they tend to live longer than menMarital status - Single people are less likely to have family resources and will therefore need to pay for caregiversLifestyle - People who do [...]

Over a 10-day period in December 2018, the Dow Jones Industrial Average (DJIA) dropped by more than 350 points six different times. It then experienced its largest increase on record – a 1,000-point gain in one day. This dramatic volatility fueled speculation that we are on track for a long overdue market correction in the near future.Most investment advisors discourage long-term investors from engaging in market timing, which is the strategy of buying and selling based on market movement. The general consensus is that no one can accurately predict upswings [...]

The Tax Cuts and Jobs Act delivered a wealth of benefits for taxpayers at every income level, but none more so than for the very rich. The net result of huge tax breaks for both high-income and corporate taxpayers is that the government now has much reduced tax revenues coming in to help pay for government programs. It comes as no surprise then that prior to the November 2018 midterm elections, Republican leaders in Congress were calling for cuts to government “entitlement” programs, such as Medicare and Social Security.While the [...]