Beware The Biweekly Mortgage

George Yacik - INO.com Contributor - Fed & Interest Rates


A few weeks ago in this space I recommended that people investing for retirement should avoid the overpriced stock and bond markets and any imminent market correction and instead invest in themselves, namely by paying down their mortgage. It's a 100% guaranteed risk-free investment, and the amount of money you'll save will dwarf the return you might get on bank CDs. And it will make your household budget in retirement a lot easier to balance.

But one way NOT to pay off your mortgage is by calling one of those outfits that promise to help you pay off your loan early, for a fat fee, of course. They often advertise a "biweekly" mortgage in which you agree to send them one-half of your monthly mortgage payment every two weeks. By doing that, you're essentially making one extra mortgage payment a year, thus paying down your loan faster.

What the consumer is paying for, I guess, is the discipline to make those extra payments that they might not make on their own. Continue reading "Beware The Biweekly Mortgage"

Don't Let The Government Decide When You Retire

By: Amy Calistri of Street Authority

I try not to be tempted by "click-baiting" headlines on the Internet. You know what I'm talking about -- the salacious, ridiculous, or shocking headlines that you click on, only to discover mundane articles that may or may not have anything to do with the headline.

But we all have our weaknesses; mine is information about retirement planning. This explains why I clicked on the U.S. News headline, "The Perils of Retirement at Age 65."

The article didn't provide me with many new insights. For instance, I already knew that even though you are eligible to start receiving Social Security retirement benefits at age 62, most people have to be older than 65 to receive "full" benefits.

What did surprise me were the comments people posted after reading the article. They fell into two general groups.

There was a group that couldn't bear the thought of working until the age of 65 and over: Continue reading "Don't Let The Government Decide When You Retire"

Article source: http://www.streetauthority.com/node/30493370

The Perfect ETF Portfolio

Hello traders and MarketClub members everywhere! Today, I'm going to be looking at the Perfect ETF Portfolio. This is a very simple portfolio to follow and track and we provide you with all the signals and turning points before they occur.

The Perfect ETF Portfolio was designed to track and take advantage of the major financial markets we have identified as being important in the long run, stocks, gold, the Dollar and crude oil. These four ETF instruments were chosen to give your 401(k) program or retirement program the broadest possible protection, no matter what happens in the world. After all, it is your retirement money and your nest egg, so this is not money you should be gambling with. Continue reading "The Perfect ETF Portfolio"

Seeking a softer retirement landing

There is an oft-told story about what happens when a worker at the Stanley Consultants engineering firm decides to retire.

"They say you have the retirement party one day and you come back to work the next," said Mary Jo Finchum, spokeswoman for the Muscatine, Iowa-based company.

Stanley is among the U.S. employers that have offered workers a softer landing into retirement, allowing them to scale back hours as they prepare to take the plunge and move into part-time positions once it's official.

"It's really the best of all worlds," said John Sayles, a 79-year-old planner at Stanley who cut his hours before formally retiring in 2003, but who has continued to work part time in the decade since. "I'll probably do it as long as the company would like me to help out." Continue reading "Seeking a softer retirement landing"

Will Obama's Chained CPI Help Keep Inflation from Eating into Your Savings?

This week we examine ways in which inflation nibbles away at your retirement income, especially in light of the President’s proposal for Chained CPI adjustments to Social Security. The formal title is Chain-weighted Consumer Price Index and it’s a variation of how the government figures out what is what we would call "inflation." Either way, with the low rates on offer from CDs and other "safe" investments, investors who don’t take action fall behind every year.

Unfortunately, the numbers show what most people don’t want to face: the days of relying on Social Security plus a few stable bonds and CDs are long over. To earn decent and sustainable returns, investors must search beyond traditional safe havens. Continue reading "Will Obama's Chained CPI Help Keep Inflation from Eating into Your Savings?"