Controlling For Additional Factors That Influence A Pre Retiree 's Standard Of Living

When it comes to the data and methods, this study used the Federal Reserve Board’s Survey of Consumer Finances (SCF), which is a repeated survey that includes the information on household income and wealth holdings; the Federal Reserve conducts this survey every three years. To test the hypothesis there are

4 Statistics Canada has utilized a computer model for the purpose of gaining retirement readiness information from households. This model calculates the net replacement ratio, which is further compared with disposable income once the person has reached retirement, as well as preretirement. The replacement ratios for each household 's income is broken down, with a 75% rate being considered tolerable and low. The ideal rate, however, is above at least 95%. The small percentage of Canadians who have a readiness score that is under 75% are generally employees with a spotty employment record, or those who have not yet lived in Canada long enough for a full Old Age Security (OAS) and Guaranteed Income Supplement (GIS) benefit. Therefore, increasing the overall amount of household savings is going to do a lot more damage than good. This is because having savings now reduces all disposable income for the years that are spent working, while additional income for retirement that is generated will reduce the future GIS entitlement. In fact, the

Evaluation: This article, posted on April 1, 2016, was originally published on TheConversation.com. Throughout the article, the author cites sources that come from 2012-2017, with the majority of them coming from 2015-2016. Moreover, these cited websites are credible, well-known, and have information that can be corroborated with other sources. Some of these sites included The Wall Street Journal, the New York Times, and a report from the Federal Reserve. Moving on, the author, Mechele Dickerson, is an expert on this topic. Dickerson received both her B.A. and J.D. from Harvard University and currently works as a professor of law at the University of Texas at Austin. Here, she teaches classes on consumer law, debt and spending to law and undergraduate students. In her current research, she explores causes and consequences of consumer debt and how the culture

In the time between the end of World War II and the early 2000s, the ways consumers used debt changed significantly. However, one thing remained clear, borrowing became the new lifestyle that most Americans adopted. Borrowing allowed the average working and middle class person to purchase homes and the items that filled their interiors. It also became the fuel to a resurrecting economy. The trust between borrowers and lenders has encouraged the stimulation of the economy. Because of this, debt has played a crucial role in American history.

Part of the reason why financial experts like Ramsey suggest that you stay out of debt is because debt makes you vulnerable in an unexpected economic downturn. However, there’s more to this equation than just staying out of debt. You’ll need a cash cushion,

The Federal Reserve Board’s Survey of Consumer Finances (SCF) is a triennial cross-sectional survey of U.S. families. The study is sponsored by the Federal Reserve Board in collaboration with the Department of the Treasury. The survey data include information on family incomes, net worth, balance sheet components, credit use, pensions, income, and demographic characteristics (Bricker, et al., 2014). A strong attempt is made to select families from all economic levels. In addition, information is also included from related surveys of pension providers and the earlier surveys conducted by the Federal Reserve Board. Data from the Survey of Consumer Finances is utilized by the Federal Reserve and other branches of the government to conduct analysis. In addition, economic research centers utilize the SCF to conduct scholarly work (Board of Governors, 2014).

The Great Recession revealed the financial vulnerability of millions of US households. In its aftermath, researchers and policymakers have turned their attention to improving the next generation’s knowledge of personal finance and its access to secure financial offerings (US Department of the Treasury 2014) (Margaret 2015). While current economic conditions appear to be showing signs of improvement, 83% of American workers continue to be impacted by personal financial issues (“2013 Research Report on Employee Financial Stress,” Financial Finesse, June 2013) (Shele 2015 p. 67). The main reason so many people have personal financial issues is because of the lack of knowledge that people have about the meaning of financial terms. If you lack knowledge or don’t fully understand financial terms there is no way that you want have personal financial issues.

Pre-retirees with medical debt were expected to accumulate a lower amount of financial resources as compared to pre-retirees not burdened with medical debt. However, the payment of installment loans by the household is not a significant predictor of financial assets in the model. Moreover, the payment on the first line of credit was not a statistically significant predictor of financial assets for pre-retirees. Conversely, vehicle payments and consumer loan payments are statistically significant predictors negatively impacting financial assets. These types of debts consist of items that are consumed quickly or that consistently depreciate over a short period of time. With easy access to these forms of credit, a significant number of pre-retirees are servicing credit card debt and paying

The present economic influence in the United States has forced the role seniors and those in younger age groups to make modifications to their retirement strategy. For the nurse’s in this country with the economic status currently and current retirement plans, they may need to make an alterations in their retirement plan allowing for the potential of increased income. In this paper we will discuss the different phases of retirement and how those phases would effect a nurse’s retirement plan. It is critical for to start preparing for retirement early,

These two literature also brings attention to the topic of retirement and the need for retirement planning and decision making. Chapter 14 points out the plans that the aged needs to consider when it comes to retirement. It describes two types of plans to be considered to include the defined benefit. With the defined plan workers receive a monthly benefit based on their years of service with an establishment and their prior earnings. Then there are the defined contribution plans that workers and/or employers make contributions into a fund, which is invested on behalf of the

Before the causes and resolutions are discussed, debt must be understood. Terry Herman, a financial advisor for Edward Jones, expresses this definition: “Simply put, debt is a product bought or a service utilized that you still have a financial obligation to” (Herman). To further that definition, debt is the borrowing of money with the entitlement of repayment with interest; this explains the financial obligation Herman expressed. While family members and friends may not enforce interest, interest would not demean the situation. The current consumer-driven culture has significantly increased the amount of personal debt from decades ago. A chart derived from statistics collected by the Federal Reserve and Bureau of Labor Statistics displays the climb of debt from $1,186 per person in 1948 to $10,168 in 2010 (Indiviglio). As shown, the increase over 62 years is approaching a factor by the multiple of nine. Consumers are clearly spending irresponsibly, which Herman manipulated into the “complete difference between an investment and expenditure” (Herman). An investment is something expected to obtain an additional value while an expenditure is unnecessary spending. Thus, consumers must be acquiring expenditures more frequently than investments.

So, Long Term Care Is another key component of retirement planning. Currently, people are living longer thanks to better medicines. Which, in a way this is a bad thing because these individuals typically don’t have the money to afford this. That is why first, I plan on saving extra money, so that if I do happen to outlive my money, my loved ones can have a larger inheritance. However, there are other steps that I plan on taking advantage of.

Even though they grew up in different parts of the country neither one of the participants were aware of retirement when they were younger. According to Schultz, the idea of “retirement is relatively a new phenomenon, and it was not until the Industrial Revolution, the creation of Social Security, and company pension benefits were created in the first half of the 20th century that individuals were able to cease employment while they were still otherwise able to work” (Schultz, 2011, p. 170). Since retirement was still relatively a new concept for the participants they could plan their retirement according to their desires and not be forced to follow a certain prototype.

Today millennials are seemingly unaware of the benefits of homeownership. I know this because of the lack of effort given by most of this group to do what it takes to become a homeowner. I currently work a supervisor at a debt collection agency here in Anchorage, AK. I see more and more individuals who seem to not car about bills that are in collections. A lot of younger consumers are seeming to hang up, not care or get overwhelmed by so many bills, especially medical. It’s very unfortunate when you know someone care about their bills and credit and just happens to get in binds. However, I find this is not the case with younger consumers. Paying bills are just not a priority it seems. I was born March 27,1989. For me when I was in high

The first step in creating a retirement plan to last at least 25 years is to set short term goals, understand good debt versus bad debt, and how to prioritize paying off debt to allow the additional income to be saved for retirement. Bad debt, such as personal loans, car loans, and credit card debt carry high interest rates, and do not represent a future investment; bad debt loses value over time. Good debt, or debt with a low interest rate, can be viewed as a future investment. This type of debt includes mortgages, business loans, and student loans (Von Tobel, 2014). Paying off bad debt first reduces high interest payments, which then can be applied to an overall retirement savings plan. Approximately 50% of credit card users carry a month-to-month balance, and are required to pay accrued interest charges. According to Ghilarducci, actual credit cards should stay home, in a hard to reach place to be used only in the case of an emergency. While it is critical to pay down credit cards, high interest loans, and avoid carrying a balance, it is also important to make solid financial decisions pertaining to good debt. Paying off a mortgage in 7 or 15 years will raise the current monthly payment, but will save money overall by qualifying for lower interest rates, and