Chicago Tribune Gail MarksJarvis column [Chicago Tribune]
By Gail MarksJarvis, Chicago Tribune | |
Source: | McClatchy-Tribune Information Services |
Polls show that in the hard times of the last few years, people have grown increasingly appreciative of these elements in their lives as financial matters have become shakier. In fact, in polls, people are stressing the importance of keeping themselves healthy, and a Gallup poll showed more exercising regularly last year than the prior year. But beyond the essentials, here are eight money matters that should make people thankful.
-- You have a job, affordable health insurance and have the money to put food on your table. As basic as this sounds, according to Gallup research, about 25 million Americans are looking for jobs, 47 percent of people 30 to 49 years old are dissatisfied with what they are having to pay for health care and an increasing number of people report there have been times in the last 12 months when they didn't have enough money for food.
-- You realize debt is not your friend and you have started to take control, paying off more than the minimum each month. This has been a painful process for many, with millions losing homes to foreclosure during the last four years. But those who realized how dangerous debt can be, and have become serious about paying it off, will have a good chance of making the most of their lives in the years ahead. If you are among them, as you pay off debt, increase savings too.
-- You had a stash of cash. There is a saying that "cash is king," and that's been especially true lately. Although people have been turned away from mortgages if they didn't come to the table with 30 percent down payments, those with cash have picked up homes at bargain-basement prices either for a primary residence, rental property or second home.
-- You were smarter than your financial adviser about bonds. For three years, advisers have been telling individuals that they were crazy to keep so much money in bonds and that bonds would crash and burn in a higher interest-rate environment. Yet, as of
-- You have an old-style pension that is either giving you guaranteed monthly income in retirement or will someday. These dependable pensions are disappearing fast, so if you have one, you are lucky. Just don't be too sure about this, because while your employer can't change what you've already earned in your pension, an employer does have the right to change rules. So make sure you are doing your bit too. Find out what to expect in monthly payments from your pension, and then see how much money you might need to accumulate in a 401(k) or IRA to supplement pension income. Try this calculator: choosetosave.org.
-- You are retired and comfortable after leaving your job at age 65. You might be the last generation to be allowed to retire at such a young age while counting on the government to deliver fully on promises for
-- You graduated from college a few years ago, you have a job and you got help from your parents. Now, with 1 in 4 homes underwater, many parents can't tap home equity to pay for college, the harsh stock market has hurt college savings and the average student with loans graduated recently with about
-- Your employer offers you training on how to invest money in your 401(k) and gives you matching money. Unfortunately, most people who are offered help don't take it. They blunder through investing and end up cutting off their potential nest egg by hundreds of thousands of dollars. And about half of people in their 20s don't put enough money in a 401(k) to get free matching money from their employer. That's telling your employer you don't want free money, likely
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