Jennifer Meacham,  May 31, 2007

I've just come in from helping a friend plant her first city garden. Turns out, she's not alone. She's part of a new crop of now-dubbed "energy survivalists," boomers who are returning to the land to grow their own food and chop their own wood. It's a small blip in the news media radar, but one with causes and effects scattered worldwide: middle class Americans are making withdrawals at food banks (remember when they used to make deposits?);  consumer confidence is at a 16-year low (2007 minus 16 years equals 1991, the end of the last recession); and because of rising food prices 450,000 Cambodian children are about to lose the UN program that keeps them from starving. The irony is that it's at a time when many Americans are pouring corn in the form of ethanol into their gas tanks. As the Commodity Futures Trading Commission in Washington, DC, makes public its six-month investigation into possible oil price manipulation, "energy survivalists" like us hope the probe will result in some change.

Jennifer Meacham,  May 22, 2007

It's a crazy mixed-up oil world out there. With the big-oil executives testifying on price collusion in front of the Senate, other market conditions are in a tale spin. The stock market is sinking in oil (interestingly, most oil-related stocks, other than Halliburton, are still climbing), oil sets new price records almost every day, and the prices of "economy" cars are soaring. Americans are fighters, but can our economy survive the fallout from yet another case of market leaders doing the wrong, wrong things? Pensions, sub-prime mortgages, now oil price collusion... Ah, the freedoms of democracy.

Jennifer Meacham,  May 15, 2007

I just met a friend for drinks. She left her job several months ago, and with no job replacement in near term, is cashing out her 401(k) rather than rolling it over to an IRA. She's not alone. A survey of 1,002 people over 44 found nearly a quarter are raiding their retirement savings to make ends meet. Of those, one-third have stopped putting money into their retirement accounts and 27 percent have postponed plans to retire. This paints a sobering picture: The sinking economy appears to be luring Americans into forsaking their retirement planning. That action could lead to bigger problems as we age, like more homeless elders. What else would you expect when Social Security runs out of cash, pensions are rare, and 401(k)s have been used to keep Americans fed, clothed and sheltered long before the age of retirement?

Jennifer Meacham,  May 9, 2007

The House wants to stop making pennies that cost more than they're worth - a move that "could save about $100 million a year, or roughly three dimes for every American." At a cost of 1.26 cents per penny, and 7.5 cents per nickel, the US Mint is actually contributing to the national debt. With the cost of zinc tripling in recent years - consistent with metal prices in other times of war - Congress already has proposed steel pennies and nickels like those made during World War II. Aside from metal prices, there's another reason for the penny's increased cost lurking in the background. Indeed, it's the good old paper dollar, which has fallen so far against foreign currencies. A euro cost just 87 American pennies shortly after it was introduced in 1999. Two weeks ago, it hit $1.60. If those rates hadn't changed, a penny might only cost 0.6 cents today. If the Bush administration wants to preserve the penny, it ought to start supporting the dollar. Otherwise, that may be the next piece of currency we eliminate.

Tom Murphy,  April 28, 2007

I wish I could be more optimistic about the economy. Wall Street has managed that recently, lifting the S&P 500 by 4 percent over the past couple of weeks. And certainly some big global companies have treated their investors well. But back here in the good ol' USofA, there really isn't much to cheer about, and there's plenty of reason to take extra care with your money. Unemployment is up, with no signs that companies are going to start to go on a hiring binge. Most economists think we're already in a recession, even if Mr. Bush doesn't. The dollar continues to hit new lows against the euro and other currencies. And the foreclosure rate is soaring to levels unseen since the Depression. In shorthand, that combination of conditions leads to unemployment, recession, poverty and homelessness. This is especially hard for boomers who have worked a lifetime, but haven't gotten very far ahead, and now are watching the equity in their homes wash away in the economic tides. What to do? It may sound odd, but here's just one simple idea: eating healthy local foods could help lower your grocery spending, reduce fuel consumption and improve your health, which could lead to lower medical costs in the long term. No, it won't solve the problems of the world, but it's a step in the right direction. Think about others and then share them in a letter to us.

Tom Murphy,  April 6, 2007

When those pollsters ask "Are you better off now than you were eight years ago?," please try not to laugh. The monthly jobs report isn't a laughing matter. It was bad enough that the economy as a whole lost 80,000 jobs in 30 days, but when you look at the details, the picture's even uglier. Construction jobs fell by 51,000 in March alone, and it doesn't seem likely we'll seen anything but more declines there for a long time given the steady decline in home prices and the surplus of office space with a recession coming on. The same can be said for manufacturing, which lost 48,000 jobs. The biggest gaining categories were restaurants and healthcare. Do you want to work in a restaurant or a rest home? And the government added 18,000 jobs last month, despite the almost incessant reports that the Federal debt is soaring and many states are on the financial brink. So who is better off than they were eight years ago? Well, Bill and Hillary Clinton are making a killing on the unpopularity of the current president, earning $109 million since George Bush took office. Now if we can just figure out how to get 20 or 30 million Americans on speaking tours, everything will be fine.

Tom Murphy,  March 25, 2007

Sanford Kurland - you can't make up names like that - earned his fortune by selling cheap mortgages through Countrywide, which became the nation's biggest home lender until it was brought down by the subprime mortgage mess. Now that it's be sold off to BankAmerica, Kurland has another scheme, and this one might make more sense. He wants to buy the troubled mortgages back from Wall Street investment banks, which should be happy to get rid of them at a steep discount. Then his new company, PennyMac, will "service" the loans itself, much as Countrywide used to do. By taking on the loans, PennyMac has a vested interest in keeping homeowners in the homes. So it would rather refinance the loan - at new lower rates - than foreclose on defaulters. In the end, this could be a good thing for the bankers, who will be happy to trade in their dubious real estate holdings for some cold, hard cash. But it may be even better for the homeowners, who've been getting evicted at record rates. The fact that Kurland thinks he can make another fortune by doing this, well, that's the American way, isn't it?

Tom Murphy,  March 17, 2007

America, it's time to get in shape financially. In fact, it's way past time. We've been living way beyond our means for a really long time by borrowing money - sometimes at 19-20 percent - so that we could spend it faster than we can make it. And bankers have been lending it out without really thinking whether we can pay it back. And the bankers have had little trouble selling that debt to big investors who wanted a slightly bigger yield than they could get from a much safer security. Well, guess what? The game of musical chairs is over, and some folks have no place to sit - or sleep. Home foreclosure and personal bankruptcy rates are soaring. Banks are being sold off at a fraction of their prior value. And those greedy big investors may find out some of that paper in their safe is worthless. So it goes. It's sad, but - as the saying goes - that's business. You can do better. How? You can get your own finances in shape. Never spend a dollar you don't have. Cut back your spending and pay off any existing credit card (or car loan) debt. Once you do, start saving at least 10 percent of what you take home. (If it seems hard, contemplate how much harder it would be if you lost your home.) If you still have some cash left over, consider giving to a trustworthy charity to help those who were caught short. Ask folks in Congress to recognize that the real terror threatening millions of Americans involves hunger, sickness and homelessness - not some hate-filled extremist half a world away. As current economic problems sort themselves out, the big banks will just have to take their lumps - they knew what risks they were taking. And the big investors will learn a valuable lesson that applies to us all: if you set unrealistic goals, you'll probably be disappointed in the end.

Tom Murphy,  March 3, 2007

We've lived through a remarkable time for ma-and-pa investors. If you bought a house in some parts of the country 20 years ago, its value has gone up five- to ten-fold since then. And if you bought a basket of Dow Industrial stocks at the same time, you've had about the same result. A lot of this was due to dramatic gains in American productivity that lifted the value of our products, thus lifting the dollar along with it. Well, it's been great, but as they say in all those commercials, past performance is not an indicator of future returns. Thanks to recent US trade policies, a euro that used to buy just 87 American pennies, now is worth a buck and a half. American jobs are disappearing faster than spring snowflakes. Bankers are foreclosing on American homes at a record pace. Home prices are in free fall, particularly in areas where the rose so fast. And your retirement nest egg is showing cracks from the market volatility stemming from the credit mess. We've been trained to think this, too, will pass. But it may not. We could be at the end of a good, long run, and the next 20 years may head in the opposite direction. If you feel gutsy enough to buy US stocks in this environment - and don't forget you may be buying them automatically through a 401(k) - make sure you buy after the market is near its recent lows, no matter how wrong that may feel at the time. If you wait for the market to rise back near its recent highs, you'd only be compounding your risk. And if you'd rather just stay on the sidelines right now, go for it. In fact, if you'd sat out the last 10 years, you wouldn't have missed much beyond trading commissions and a lot of anxiety.

Jennifer Meacham,  February 21 2007

In addition to news of increased boomer contributions to IRAs, there's comforting news for 401(k) savers from the Supreme Court. The high court ruled that the 50 million workers saving for retirement in company 401(k)s  - there's $2.7 trillion combined in those plans now - can sue their company for losses if the company mismanages their 401(k) funds. Mismanagement most often takes the form of neglecting to fulfill a worker's investment directives, but can extend into other areas of negligence or criminality. This decision overturns a Richmond, Va., US Circuit Court of Appeals finding that the Employee Retirement Income Security Act (ERISA) does not permit individuals to sue their 401(k) plan administrators for breaching "fiduciary duties." So, if you've suffered a loss in your 401(k) retirement plan, and can prove mismanagement, the new ruling from LaRue v. DeWolff paves the way.

John McGowan,  February 18 2007

The economic worries that plague most Americans, as reported well on RedwoodAge.com aren't hard to see. For example, I wonder about the official rate of inflation. I don’t know about you, but my cost of living has gone up more than 2 or 3 percent per year over the past 10 years even as my pay raises have been about 4 percent a year. I’m just about where I was a decade ago, and all the studies show that’s true for the vast majority of Americans. Yes, I pay less for a can of three tennis balls today than I did 20 years ago - and try hard not to think about the workers in Indonesia who make that fact possible. But housing, gasoline, food, and services all cost more, and I now spend over $3,000 a year out of my own pocket for medical expenses that my employer’s health insurance package no longer covers. No wonder Americans as a whole now spend more than they earn. To borrow a term from the environmentalists: that’s not sustainable. Our private finances increasingly look like the federal government’s finances. Deficit spending today while turning a blind eye toward what that means for our future.

Jennifer Meacham,  February 6, 2008

The Bush budget proposal has helped renew fears the American economy may be heading into a recession. Gross Domestic Product hasn't fallen yet, but it rose only 0.6 percent for the last quarter in 2007. Meanwhile, secondary indicators like retail sales, manufacturing, employment and consumer confidence are down from year-ago levels. And inflation is heading up. With the stocks tumbling again, smart investors have already taken steps to guard their retirement account portfolios. If you haven't, you might talk to an expert about hedging your bets by switching from emerging market stocks or aggressive funds to: 1) short- and intermediate-term bonds and bond funds; 2) actively managed equity funds that generate income;  and 3) contrarian funds that gain when stocks fall. And if the market keeps falling, don't panic. Remember: Buy low, sell high.

Tom Murphy,  January 19. 2008

Almost everyone seems to agree the best way to get the economy back on track is to boost consumer spending. Unfortunately, that's not the problem. Sure, consumer spending dipped just before Christmas, but the question is: why?  For some time, we've noted that average folks are having a really hard time meeting higher energy costs with shrinking US dollars, and the problem has only been getting worse as the mortgage mess pushed foreclosure rates ever higher. For boomers trying to balance the cost of caring for kids and aging parents, there's been little left to save for retirement. For 20-somethings looking for their first jobs, the pickings are slim. For retirees whose Social Security increases don't match the rate of inflation, times are particularly bleak. If any of these folks suddenly got, say, $600-800 through a tax rebate, they probably would spend it quickly - just to meet their basic expenses. But what would they do the next month? Or the next year?  The current economic problems stem from broken US trade policies, Bush's insanely expensive wars ($1 trillion and climbing?) and the financial industry's greedy sale of mortgages to people who couldn't afford them. The US economy will get back on a healthy growth track only when those problems are resolved, and that will take a serious commitment that goes far beyond the election-year quick-fixes offered by Washington. So if Uncle Sam sends you a check, go ahead and cash it. But try to make it last.

Cathie Ramey,  January 10, 2008

There's strength in numbers and when it comes to boomers and retirement, those numbers are getting a lot of attention. To put it simply, the pending exodus of this supersized generation from the workforce is catching the attention of corporate America. According to a recent survey by Robert Half International, 47 percent of senior executives surveyed cite boomers leaving the workforce as "having the greatest impact on the workforce in the next decade." Aside from the numbers of jobs that will be vacated, the amount of experience and intellectual currency that will be removed from the marketplace is going to be substantial if not devastating. In response, companies will be looking at flexible work schedules, phased retirement planning and other incentives to stop the bleeding. Historically, societal needs and expectations have decided who retires and when. Once again, boomers are changing the norm.

Jennifer Meacham,  December 29, 2007

To put it nicely, it's an interesting time for home prices. The Department of Commerce says new-home sales fell 9 percent in November to the lowest level in 12 years - that would take us back to 1995 when the country was emerging from a deep recession.  "We have the fundamental problem that we built too many houses and we charged too high a price for them," said David Wyss, chief economist at Standard & Poor's. "We have to stop building houses for a while and the prices have to come down. We are trying to make sure that process doesn't derail the rest of the economy." Meanwhile, a survey by The AP and Yahoo News found six out of 10 of those approaching retirement had already listed the economy as "extremely important" to their future. The newest home sales news can only add concern, at least in the short-term. "Housing demand is unlikely to stabilize until homes prices stop dropping," said Michael Gregory, a senior economist at BMO Capital Markets, "but home prices are unlikely to stabilize until housing demand significantly reduces the inventory overhang."

Tom Murphy,  December 20, 2007

We all recall the last time "stagflation" was an issue. It was in 1973. Nixon was president and the US was spending a LOT of blood and money trying to protect Vietnam from the Vietnamese. At that point, oil got very expensive, inflation grew, the economy didn't and someone came up with the name stagflation. Today we're spending a lot of blood and money trying to protect Iraq from the Iraqis. Oil has gotten very expensive, inflation is growing and the economy is slowing down rapidly. Could it be that one of the common problems in both situations was that we're spending an enormous amount of money abroad that should be spent on the US mainland? In all, the wars in Iraq and Afghanistan are likely to cost the US in excess of $1 trillion. These are the same wars that our president said would be paid for by oil revenue. But there is no oil revenue. Instead, oil is in short supply. And the US economy is paying the price in blood on the ground in Iraq and in dollars at the gas pump. The voters made it clear in November 2006 it was time to end the wars because of the price we were paying in blood. Perhaps Congress and the president should consider the cost is also rising in economic terms.

Jennifer Meacham,  December 12, 2007

The Fed's Open Market Committee has spoken, cutting interest rates another quarter point and sparking another sell-off on Wall Street, where many investors wanted a half-point cut. Is inflation next? That's the question on the Street. We're just hoping the move may keep a recession at bay, if one hasn't started already. In any case, now may be the time to refinance adjustable mortgages made prior to 2006. Only so-called never-late mortgages, made during 2006, are covered by the Bush Administration-led adjustable-rate freeze. If you believe inflation is coming, you may want to look into commodities as a hedge against rising prices and a weaker dollar. And now's the time to start hunting for good real estate deals - can you say "retirement home?" UBS is writing off $10 billion more in the US sub-prime market, and  Washington Mutual is closing its sub-prime division, firing 3,150 people in the process. The latest news will "have the effect of substantially eliminating speculation," says UBS CEO Marcel Rohner, which means the already sagging real estate market may slip farther downhill as demand catches up with inventories. Meanwhile, consumer borrowing is on the rise as ordinary folks try to cope with higher gas prices and holiday shopping. Hopefully, the credit companies will pass along that 1/4 percent they're saving because a lot of people may have a hard time paying it back if the economy sinks further.

Jennifer Meacham,  December 1, 2007

Speculation of another Fed rate cut not only led to a sharp stock-market rally, it provided good news for retirement nest eggs now cradled in the stock market. "Just the prospect that the Fed will cut rates typically sends the market higher ... maybe all the way back to 14,000 or more," says one industry watcher. But Bernanke and his crew at the Federal Open Market Committee still aren't exactly sure what they'll do. "The fresh wave of investor concern has contributed in recent weeks to a decline in equity values, a widening of risk spreads for many credit products, not only those related to housing and increased short-term funding pressures," said Bernanke. Sure, the big banks are now pushing back adjusting rates on ARMs to help ease a crunch, but unemployment is up. Bernanke still sees this as "consistent with moderate expansion in employment" but the truth won't be known until Dec. 7 when November's employment figures and consumer sentiment stats are released.  Both are key to the Fed's Dec. 11 decision. The bottom line? Wait until then before making any big plans.

Tom Murphy,  November 25, 2007

At first glance, the world of economics may seem a bit out of balance right now. On one hand, we see consumers flooding the malls to scoop up bargains. On the other, we hear that deepening economic problems may lead to a crisis rivaling the Great Depression. People are losing their homes in record numbers, heating oil prices are soaring as winter brings a chill, and aging boomers are just starting to put pressure on the under-funded Social Security and Medicare systems. But consider this: the very reason those early bird specials are so popular this year may be partly because of the other problems. Those early birds actually may be the canaries in the coal mine of our economy. And that's one more reason to be extra cautious in your own holiday spending until the depth of our problem becomes clearer.

Jennifer Meacham,  November 23, 2007

Now that the holiday shopping season is officially underway, it's time to start thinking about how you'll be paying for this year's gifts under the tree. While Black Friday may be the season's busiest shopping day, some people think the real shopping won't start until Dec. 22. You know what that means: impulse buys, more expensive purchases and - likely - gifts bought on credit. Boomers have an edge though; we know how to shop. Maritz Research's poll of holiday shopping preferences shows boomers likely will spend $178 less on gifts this year than their Gen X counterparts. Maybe that's because boomers don’t show much store loyalty when it comes to holiday shopping. For this crowd, it's all about the bottom line. While the cost of holiday meals are 11 percent higher this year than last, and the consumer price index shows a 3.5 percent bump in general consumables costs from October 2006 to October 2007, it's the discriminating boomer shoppers that should come out on top.

Tom Murphy,  November 17, 2007

The best things in America stem from hope - the pursuit of freedom, fame and fortune. And there's no time like Thanksgiving to contemplate our bounty. But it's also a good time to reflect on our shortcomings as a nation, including the 35 million who go hungry in America who are most likely to be women and children. Or that a quarter of homeless people served in the armed forces. Or the increasing pessimism among African-Americans who despite all our assertions about equality still die younger, face higher infant death rates and are more likely to be in prison. With oil prices soaring, it may cost $3,000 to buy home heating oil in the Northeast this winter. The wars in Iraq and Afghanistan have drained our resources, taken American lives and left tens of thousands dead in countries we claimed we wanted to help. The stock market is rocky, foreclosures are up, and a crisis is brewing as the baby boomers retire to uncertain futures. Most boomers have no pension. The average 401k is $58,000 - about enough to pay for a year in a modest assisted living center. And the Social Security and Medicare systems both will go broke without rapid intervention. We have much to be grateful for. But we also have much left to do before America lives up to our hopes.

Jennifer Meacham,  November 7, 2007

Boomers nursing their nest eggs can expect unstable financial markets and rising prices for the near future. Former Fed Chairman Alan Greenspan says these trends will turn around only if the US can sell off up to 300,000 homes, which would help resolve the subprime mortgage mess. With such a glut in the market, boomers hoping to sell their homes before retirement can expect to get less for their own properties until real estate market demand catches up to supply. They may want to, or have to, wait, if they can. Additionally, Greenspan warns that the dollar will continue to fall against foreign currencies as long as technology helps emerging countries in Asia gain ground on productivity rates in the US. Perhaps boomers need to stay in the work market later than planned - a trend given the all-too-cheery name worktirement.

Jennifer Meacham,  November 2, 2007

If you're trying to figure out what to make of falling stocks and rising oil prices, you're in good company. The Federal Reserve Board is also caught between a rock and a hard place. The Fed cut interest rates 1/4 percent and released $41 billion into the economy to help loosen the credit markets squeezed in the mortgage mess. But the rate cut immediately triggered inflation, sending crude to a record high of  $96 per barrel and sending other commodities soaring as well. Since industry needs oil and raw materials to make consumer goods, that will lead to higher prices for you and me in everything from bread to washing machines. Now, the Fed hates inflation more than just about anything, so it isn't likely to cut interest rates much further. And that realization triggered a 3 percent drop in the Dow Jones Industrial Average. If the Fed cuts rates further, it could trigger inflation. If it doesn't, stocks could fall more. So what should we boomers do in the meantime? Hang tight. Follow the Redwood Age adage and "live a whole life." Eat simple foods, live within your means and - even if things get much worse - don't lose your head.

Jennifer Meacham,  October 25, 2007

Sure, the nearly $3 per gallon that I'm paying at the pump is still 30 cents below gas' peak prices this past summer. Plus, the Energy Department's inventory report hints that it's speculative investors, not supply and demand, that are playing with the price. However, with some industry watchers predicting oil could reach a record $100, we still could be in for a bumpy ride - especially with house prices slumping to a 16-year low. Only a few boomers are yet taking Social Security, but those who are won't see Social Security helping to pick up the tab. Social Security cost-of-living adjustments went up only 2.3 percent for the year. Indeed, a Senior Citizens League study shows that, in eight spending areas, people over age 65 have lost 40 percent of their purchasing power since 2000. Can you say "Social Security Reform?"

Jennifer Meacham,  October 17, 2007

Baby boomer homeowners be warned: Treasury Secretary Henry Paulson says the housing slump is "not ending as quickly" as presumed and looks like "it will continue to adversely impact our economy, our capital markets and many homeowners for some time yet." Sure, you'll be able to buy your final retirement home for less. But if housing prices continue to drop by up to 7 percent per month then your equity will drop, too. That's not good news for those planning to finance their retirement years with cash or equity from their current home. Plus, many have already borrowed against that equity - to send their children to college or get through tight spots - leaving them in debt. Social Security won't help much either, even as the first boomers start to file. This is a double whammy for boomers: first Social Security is up in the air and now the housing market is falling. Perhaps Paulson can give us a statement telling us what to do next.

Jennifer Meacham,  October 11, 2007

While Americans worry most about foreign affairs, the economy is more of a concern now than it was four months ago, finds an AP Poll. What's most interesting is that education, an element that loosely determines "class" in America, affects how we see the nation's financial future. Without prompts, 22 percent of those with a high school education or less named the economy as the country's worst problem. Race also mattered. In July only 9 percent of minorities said the economy was their chief concern. Now, 20 percent say it's at the top on the list. Faced with falling benefits from pensions, talks of reform on Social Security, and home loans that overburden those most financially strapped, it's those with the least education or minority status that appear to have been hit the hardest in recent months. Only 8 percent of those with college degrees said the same. Perhaps those with degrees and, probably, more wealth have lost touch with the fact that it's harder to get by for most people these days.

Cecily O'Connor,  October 9, 2007

The recent GM strike and the strike threat against Chrysler have understandably dominated news about the nation's workforce in recent weeks. Yet there's also been some good news for older workers. The U.S. Department of Labor awarded four organizations more than $3.1 million to support pilot programs that benefit older Americans. Groups such as the AARP Foundation and The National Council on Aging are among the recipients. They'll partner with organizations in about 16 states to provide skills-based job training. Some programs will enable adults to earn wages while learning a new career in growing industries. The DOL hopes to gain insight into which programs are effective, possibly replicating them nationwide.

Tom Murphy,  October 6, 2007

The mortgage mess may deepen, and many believe it will. But for boomers who find themselves unable to meet house payments, some relief may come soon. Currently, if a lender forgives some portion of your debt, that is considered taxable income. But under pending legislation, the tax would be forgiven. That can be a considerable sum. If you're in a 28 percent tax bracket, and your lender forgives $50,000 in debt, you'd save $14,000. This won't help everyone, but it's one more reason that you should contact your lender at the first hint that you won't be able to make a payment. In this economic climate, it may be better for your lender to forgive than for you to forget a payment.

Jennifer Meacham,  September 30, 2007

With nearly one-third of U.S. investors between 50 and 64 years of age, the Securities and Exchange Commission sees a lot of financial abuses of this group - approximately 5 million each year. With the SEC's second annual Seniors Summit just concluded, the agency has assembled a good list of resources and links for boomer investors. Check there for answers to whether or not you should take lump-sum payouts or invest in annuities, certain types of CDs, viatical settlements, ultra-short bond funds or even promissory notes. Meanwhile, the SEC is taking comments on whether or not it should post a list online of foreign companies that masquerade as U.S. companies to sell unlicensed "Regulation S" shares or facilitate "Dateline"-style advance-fee fraud schemes. To weigh in, fill out the comment form at comment form or send an email with "File No. S7-24-07" in the subject line.

Jennifer Meacham,  September 25, 2007

There are "some alarming trends" among women investors nearing retirement age, according to RedwoodAge.com. And, to be sure, men and women are in similar boats, (To see where you stack up for retirement, try the Redwood Age Retirement Test.) Given women's longer life span, annuities could help keep them afloat. Annuities are insurance products that let you roll over a pension or pay a chunk of money up front, then receive monthly checks for the rest of your life. Variable annuity total net assets as of March 31 were nearly $1.4 trillion, according to Morningstar. A number of annuity insurers have said they're losing money because annuity holders are living longer, and others are facing SEC crackdowns for "over zealous" sales tactics. So the industry is using this time to bring out new products, like plans that increase each year with inflation or guaranteed minimum returns. These are steps in the right direction, making annuities a better investment for those worried about paying household expenses. But they're not for everyone, so make sure you consult an independent financial advisor before making a decision.

Tom Murphy,  September 19, 2007

I have two bits of news for the president. First, the Iraq war isn't going well. Second, the economy is going badly. Mr. Bush has heard the first one enough, and disagrees. But he's apparently truly ignorant of the second, so let me explain. First, the economy lost jobs last month for the first time since 9/11. Second, US home values have fallen this year for the first time since they started keeping records in 1950. Third, the credit market is such a mess that the Fed just cut its funds rate by a half-point and said it stands ready to cut it again if conditions deteriorate further (and they probably will). Fourth, foreclosures are soaring - voters are losing their homes. Yet, Bush says he thinks the economy is going well and that Alan Greenspan - one of the greatest economists of our time - was wrong to suggest anything to the contrary. Mr. President, I repeat: the economy is going badly.

Jennifer Meacham,  September 11, 2007

If you're like most people nursing a retirement portfolio, you're on at least one invitation list for those educational investment seminars that come with free lunch, snacks or dinner. Half of these seminars are on the up and up. However, the other half "featured exaggerated or misleading advertising claims," according to a new Securities and Exchange Commission report Free Lunch' Scams Target Retirement Investors.  "Unfortunately," reports the SEC's Office of Investor Education and Advocacy, too many investors go to these meetings and end up replacing "existing investments with investments that are unsuitable or have steep sales commissions, high surrender charges or tax consequences." Before accepting a free lunch, do a little research. Who's sponsoring the event? What products do they sell? Could these products have high commissions or other negative repercussions? What does your estate planner have to say about this strategy? We all know that if it sounds too good to be true, it likely is. If you take the free lunch, don't also get taken to the cleaners.

Jennifer Meacham,  September 5, 2007

With home ownership highest among the over-45 crowd, it may interest boomers to know half a dozen heavy-hitting government financial agencies turned to the companies that collect on subprime mortgages and told them it is "vital" for these loan-servicing companies to do a good deed for troubled borrowers by cutting them some slack. God forbid that any of us should fall into housing payment troubles. But in the unlikely event you do, you'll want to read Fed Urges Loan Holders to Avoid Defaults. It details the negotiating points, with government backing, you'll likely have if you're running into trouble with an ARM.

Jennifer Meacham,  August 29, 2007

RedwoodAge.com's "Longer Lives May Take Financial and Emotional Tolls," reveals that the majority of people who've already retired admit that they have not made a formal calculation of how much they can afford to spend each month to prevent outliving their savings. Is there a solution? The article talks about several strategies. Working with statistics from the Center for Retirement Research, we've also gone so far as to create the Redwood Age Retirement Check score card. Simply fill in your answers - most questions can be answered off the top of your head, and all are private and don't require a log-in or elicit sales calls. With this simple quiz, you'll find out immediately whether you're up to speed financially for your not-so-distant golden years.