Simply Junior

For generations, Americans have been told they would have financial stability in their ‘golden’ years with social security. In addition, we were told to invest money in the stock market for a positive growth. Conventional wisdom now tells us that social security will not be there even for the Baby Boomers. Will the stock market be a good alternative?

On January 14, 2000, the stock market closed at 11,723 points. Ten years later, in the summer of 2010, the stock market is right around 10,000 points, meaning that if you had invested 10 years ago, you’ve lost money in the market. But what is the future of the stock market?

From CNBC.com: “The Dow Jones Industrial Average will lose about half of its value over the next couple of years as it follows a Nikkei-like pattern of several sharp rallies in an overall decline”, according to Charles Nenner, founder and president of Charles Nenner research. “Stocks are currently in a bear-market rally, and looking at charts and past trends, unemployment and leading indicators suggest the Dow will drop to 5,000 in the next two to two-and-a-half years”, Nenner told CNBC in an e-mail.

Deflation will arrive, along with a sharp double-dip recession, pushing the Dow lower, although, like the Japanese market, stocks will see several jumps of 30 percent to 40 percent, he said. “Things look really bad for the next 10 years,” Nenner said.”

The bottom line is that no one really knows what the stock market is going to do during the next ten year though indicators point towards a decline. Gold is hot right now, but will it continue to grow during periods of inflation? Given the uncertainty of the market, why would anyone invest in stocks anytime soon?

The answer is to invest your retirement account in a safe Savings Account that offers you a guaranteed interest rate. A Safe Savings Account is similar to a bank CD or a Annuity in that you safely invest money for a guaranteed interest rate. It is better than a CD or Annuity in that Safe Savings Accounts offer a higher interest rates than CD, TBills, or Mutual Funds without all the money gobbling fees of an Annuity.

You cannot create a financial plan unless you have a guaranteed interest rate. A safe Savings Account is the only retirement vehicle that will allow you to calculate your earnings to the penny! Anything else is just financial guessing; and in these uncertain times, taking chances just doesn’t make any sense.

Retirement Risks

If you’re one of the “Baby Boomers,” you’re probably giving serious thought to retiring, if you haven’t already retired – and if you have already retired, you may be wondering if you’re going to be able to afford to stay retired.

Today’s economic crisis complicates the situation considerably by increasing the following retirement related risks:

1. Average Life Expectancy Has Increased

People are living longer than their parents’ generation. For example, in 1970 a 60 year old white male had a life expectancy of an additional 16.2 years; however, by 2008 his life expectancy had grown to 20 years.

So how is the Boomer going to afford retirement during those bonus 3.8 years? There are only a few likely answers to that question:

Increase current savings Work longer Move in with children or other family members Get by with a lower standard of living
2. Health Care Costs Keep Rising

Predicting and planning for ways to cover one’s health care costs are some of the most difficult, largely because requirements are so individualistic with requirements varying substantially from one person to another. Long-term care needs are even more difficult to predict and arrange adequate funding.

Health care costs have grown at a rate greater than 5% (inflation adjusted) for the past 15 years – and that is higher than the growth in family income. Medicare costs are expected to rise at a comparable rate.

3. Government Actions May Impact Retirement Benefits & Benefit Programs

It is well known that the costs associated with the major social programs (e.g., Social Security, Medicare, and Medicaid) are growing faster than other parts of the economy, and some experts question their long-term viability because of the combined effects of increased longevity, size of the Boomer population, and rising health care costs in general.

Further, immediate questions regarding ongoing health insurance in retirement, and at what benefit levels, are rampant in today’s economy – and these questions are given even more fuel by the reorganizations occurring, especially among the auto industry.

There is currently a lot of discussion about a national health care program – but such conversations have been ongoing for decades, with few benefits to show for those efforts. Although President Obama will be leading such efforts this year, most people expect a lot of opposition from Congress (although maybe it will be a bit easier now that the Senate will soon be welcoming its 60th Democratic Senator).

Most people expect that seniors over age 55 will be protected from cuts in these social programs, but maintaining full coverage for them is a two-edged sword – doing so increases the likelihood of a new value-added tax, which would likely add to the tax burden for retirees.

4. Sometimes One’s Retirement Date is Dictated, and not a Free Choice

According to a 2004 Health and Retirement Survey (HRS), 37% are forced to retire. This can occur due to poor health or economic downturns, etc.

5. 401Ks Became 201Ks

Did your 401k and other retirement savings take a major hit with the stock market meltdown last year? Mine did. Many people saw their 401k and other stock market accounts take a 50% hit, which has led many comedians to rename them “201k”. For many people, their 401k was the bulk of their retirement savings, so this stock market meltdown has really damaged their retirement plans.

Humpty Dumpty Had It Wrong

But, the news is not all bad. You can fix a broken egg – a broken retirement “Nest Egg,” that is. You can work longer, semi-retire and take a part-time job, work from home, start your own business, etc. A study by Butrica, Smith and Steuerle (2006) indicated that working just one (1) extra year can increase annual retirement income by 9%, while working a total of five (5) extra years results in an extra 56% annual retirement income.

Economy Effects Baby Boomers Retirement Plans

Over one half of all self employed workers are between the ages of 42-65. This age group commonly referred to as “baby boomers,” are faced with a situation that most of them never thought could happen. Many worked for decades at the same job, and saved money in a retirement fund, and invested in the stock market which was paramount in their retirement plan.

Until recently this type of planning seemed to be sufficient enough that they could count on being able to pay their bills and eat for the rest of their lives. However, because of the turbulent economy, for many retirees, or soon to be retirees, a permanent retirement is now out of the picture.

This type of environment has produced challenges for the baby boomer generation, but many of them are facing the challenges head on by participating in the digital revolution. They are the first generation to be tech savvy because for most, computer technology is/was either somewhat incorporated into their jobs or it is/was the basis for their day to day work.

Boomer Generation Strikes Back Via the Internet

Many boomers are working from home by creating income online. The most common of the many online opportunities is affiliate marketing. By being an affiliate, one is basically becoming a “middleman” for selling a product or service.

The affiliate creates articles, or videos, that discuss whatever it is they are helping to sell, and then posts them on the web. If an online customer (there are nearly one billion online users per day, including millions of potential customers) buys the product through clicking a link on their web postings or web sites then they get “a cut” (commission) of the sale.

Internet Affiliate Marketing

It is typical for an affiliate to receive anywhere from 25%-50% commission. Becoming an affiliate marketer is fairly simple. All you need to start is a computer with internet access, an account with a payment site (such as Clickbank which is similar to Paypal but is strictly for affiliates), and some type of word processing software for basic article writing.

Information about beginning online work can be found in e-books, on experienced marketers websites, and through online marketing universities.

Retirement plans has changed and not in a good way. Many baby boomers are facing a unique and challenging set of retirement concerns. Financial planning for retirement annuity is becoming more and more difficult due to inflation, risky investments, and the possibility of outliving your assets. So what do you need to consider to be prepared for this “New Retirement”?

Longevity Risk
A retiree has already beaten the odds of a general life expectancy; they have made it to the age of 65 through accidents, illness, stress, and raising a family. Therefore, as they retire people need to be looking at the average longevity, which is basically a question of how much longer will you live after making it to age 65. In other words, the average lifetime expectancy of about 82 years really means nothing when it comes to retirement plans, health, heredity and life stresses are what are figured into the average longevity.

Excess Withdrawal Risk
The rate that you withdraw your savings once you retire will affect how long your money will last. Until recently, retirees held the opinion that 7 or 8% withdrawals were sustainable due to rising stock prices. With the change in the stock marked lately, many have found that to be a mistake in judgment. The more you withdraw, the less you will have to live on, and with stock dropping you may be losing some of your retirement money before you even begin drawing on it.

Inflation
The standard definition of inflation is that it is the long-term tendency of money to lose purchasing power. Essentially wages stay the same and prices go up. This can have a very negative impact on your retirement savings. As well as increasing the cost of your day-to-day living, inflation also wears down the value of your retirement assets. It is very important when planning your retirement annuity to make sure that your investment annuities outpace inflation.

Health Care Costs
With longer life spans and higher medical costs, Medicare going down the drain and less employer coverage health care expenses is a critical matter for retirees to address. Experts suggest that retirees set aside a fund just for medical expenses, including co-pays, deductibles, and supplemental insurance for anything not covered by Medicare. This may be particularly important if you do not have employer coverage. This is just addressing normal health care, retirees should also set aside money for long-term care, because it has been estimated that 50% of the people who are age 65 and over will be admitted to a nursing home at some point before death.

Social Security Benefits Commencement
With the longer life span and longevity risk today, many people are choosing not to begin their social security benefits at age 62 or 65. Delaying the commencement of benefits past the minimum age and instead opting in when you reach the age when you can receive full retirement benefits may be something to consider as this can raise your benefits significantly.

All of these challenges need to be addressed and financially prepared for before retiring.

You’re about to embark on an exciting mission to find the perfect chat room. Follow these tips to save yourself a lot of time and effort… and don’t forget to have fun!

1. Search

Start by running a basic search from your favorite search engine. No doubt your search will yield thousands of results so you may want to narrow your search using a couple of key words such as free chat or adult chat. You can also look into the chat services offered by large internet service providers.

2. Get Referrals

Ask your friends which chat rooms they are enjoying. They’ll be able to steer you towards good ones and away from bad ones. As you peruse through several options, read the testimonials that users have posted. You want to gather as much information as possible about other people’s experiences before you make your choice.

3. Pick a Specialty

You’ll be able to find a chat room for about every topic under the sun. Chat rooms can be focused on a specific demographic, such as baby boomers or 20-somethings. They can also be focused on specific topics, such as gardening or traveling. Lastly, you’ll find chat rooms that have been created for a definite purpose such as dating or job searching. Think about what your ideal chat room would be – perhaps dating for single parents – and you’ll be certain to find one that’s right for you.

4. Sample

There’s no rule that says you can’t register for a couple of chat rooms and sample them. Visiting a chat room for a couple of sessions, even just to observe, will help you get the feel for the site and you’ll be able to better determine if it’s right for you.

5. Read Profiles

When you first start visiting a chat room, look at the profiles of some of the chat room participants. You can learn a lot about a chat room by its members such as where most of the members are geographically located. This will make a difference if your hope is to eventually find a relationship to take offline. You’ll want to make sure chat room members are close to home.

6. Consider Security

A good chat room site should provide some security elements. First, it should only allow access to people who have registered as members. If it provides ID verification, even better. You should also have the ability to block and report members if you feel you are being harassed. Lastly, make sure the site has published a privacy policy to ensure they intend to keep your personal details secure.

7. Visit Regularly

Chances are you won’t be able to gauge the appropriateness of a chat room until you have visited it a few times. Perhaps there wasn’t a lot of activity on your initial visit or the conversation was boring. Give sites that appeal to you a couple of chances before you rule them out. And don’t forget to try out different rooms on each site. Sometimes the adult chat may be fun, other times the friends chat room.

8. Be Patient

Just like in the real world, you can’t expect to join a chat room and instantly find a great group of friends and the love of your life. It takes time. Be patient and don’t give up too easily.