As we continue to see world news and statistics pointing to a global slow down it is hard to see any positive event to find hope in. The economy in the U.S. has spared no one in regards to hardship but probably the worst off have been the Millennials. More than 30 percent of younger-age households have a net worth of zero or less, due to credit card debt and student loans. Many young adults have resorted to moving in with several roomates to manage to be on their own away from mom and dad. With all this change and economic uncertainty young adults still need to live, dream and prepare for the future.
With lower salaries and low savings the amount of action that can be taken is limited for now but times will change eventually, hopefully for the better. In planning for the future young adults must realize that retirement may not resemble what it looks like now for their grandparents and parents. Although that alone might scare a few there is a high possibility that social security will not be there for the younger generation upon retirement. This requires a more strategic approach to ensure adequate funds for our golden years.
Participating in a company's 401(k) or an institution's 403(b) is a good choice because of the tax benefits and free money contributed by the employer. Being well informed about where the money is allocated is important as funds may need to be strategically moved around. This is a good choice for those not interested in being overly active in investment choices and day to day fluctuations. For those preferring to invest and learn on their own, opening a stock market account through a brokerage may be a better choice. This will require more footwork and will also require knowledge of the stock market. Utilizing both the 401(k) and a personal investment account is also a good idea. Brokerages offer IRA's which allow investors the ability to trade stocks and not pay taxes on those gains until retirement or until that money is withdrawn.
In preparing for the future it is best to remain conservative for a while since returns enjoyed before the Great Recession may not be seen anytime soon in both the real estate and stock market.
Seeing the stock market as an income investor through dividend paying stocks can also be a good alternative for young adults especially with interest rates near zero, rates may remain low even beyond 2013. Global worries are real yet the world must go on and good times will come again. If stock markets slow down or experience extreme volatility young adults have youth on their side and can ride out long storms. Not putting all their hopes on one form of investment is a healthy view and not investing cannonball style all their money at once and in one company is also wise.
Here are a few top paying dividend stocks from the Dow Jones: AT&T Inc. (T), Verizon (VZ), Merck & Company, Inc (MRK), Pfizer (PFE) and General Electric (GE). These stocks have the ability to generate income as well as capital gains for investors in the long run.
Tuesday, November 29, 2011
Tuesday, November 22, 2011
Medicare 2011
Medicare is a national health insurance program for people 65 years and older, a few younger people who qualify can also receive Medicare benefits. People with kidney failure or long term disabilities are eligible to receive Medicare. Medicare has four components: hospital insurance - Part A, medical insurance - Part B, Medicare advantage plans - Part C, prescription drug coverage - Part D.
To receive Medicare you must be a citizen or permanent resident of the U.S. at least for five years. People getting Social Security when they turn 65 do not have to apply they will automatically be enrolled for both Part A and Part B, the Medicare card will be mailed three months before their 65th birthday.
If you do not receive Social Security or Railroad Retirement benefits when you turn 65 you have seven months in which to enroll. People should enroll three months before they turn 65 by contacting the SSA. If you do not enroll within the seven month period starting three months before turning 65 you will have to wait until the next enrollment period which is January 1 to March 31 of each year, Part B will not start until July.
Medicare Part A covers inpatient hospital benefits, home health care, hospice care and skilled nursing facility care. Part A does not require the patient to pay a premium for this coverage. Part A helps pay for meals, semi-private rooms, regular nursing services, rehabilitation services, drugs, medical supplies and x rays. The 2011 Part A cost sharing deductible is $1,132 ($1216 in 2014) per benefit period and $283 ($304 in 2014) per day for days 61-90 of an inpatient stay.
Medicare Part B covers medical professional services, artificial prosthesis, injectibles, outpatient hospital services, outpatient mental healthcare, ambulance transportation, flu, pneumonia & hepatitis B vaccines. Medicare recipients are responsible for paying the annual Part B deductible. After paying the deductible Medicare pays for 80% of Medicare approved charges. The patient is responsible for paying the remaining 20% Medicare coinsurance. The monthly premium for Part B for 2011 is $115.40 per month it will drop to $99.90 in 2012 (most people in 2014 will pay $104.90), higher income individuals may pay more. Part B deductible will be $147 per year in 2014. Many patients with Medicare supplement this coverage with a secondary Medigap insurance.
Medicare Part C includes Medicare Advantage Plans. The plans must be approved by Medicare and are managed by private companies.
Medicare Part D must also be approved by Medicare as well. It is the prescription drug coverage offered by private insurance companies to aid with the costs of drugs. Part D is a voluntary benefit but if it is chosen it includes a monthly premium as well as a share of the cost of the prescriptions.
It is important to keep a record of your doctor visits and the processing of your bills as well as never giving your Medicare number to people you do not know. A word to the wise be wary of duplicate payments for the same services and of people that claim they can get Medicare to pay for a service that is not covered.
To receive Medicare you must be a citizen or permanent resident of the U.S. at least for five years. People getting Social Security when they turn 65 do not have to apply they will automatically be enrolled for both Part A and Part B, the Medicare card will be mailed three months before their 65th birthday.
If you do not receive Social Security or Railroad Retirement benefits when you turn 65 you have seven months in which to enroll. People should enroll three months before they turn 65 by contacting the SSA. If you do not enroll within the seven month period starting three months before turning 65 you will have to wait until the next enrollment period which is January 1 to March 31 of each year, Part B will not start until July.
Medicare Part A covers inpatient hospital benefits, home health care, hospice care and skilled nursing facility care. Part A does not require the patient to pay a premium for this coverage. Part A helps pay for meals, semi-private rooms, regular nursing services, rehabilitation services, drugs, medical supplies and x rays. The 2011 Part A cost sharing deductible is $1,132 ($1216 in 2014) per benefit period and $283 ($304 in 2014) per day for days 61-90 of an inpatient stay.
Medicare Part B covers medical professional services, artificial prosthesis, injectibles, outpatient hospital services, outpatient mental healthcare, ambulance transportation, flu, pneumonia & hepatitis B vaccines. Medicare recipients are responsible for paying the annual Part B deductible. After paying the deductible Medicare pays for 80% of Medicare approved charges. The patient is responsible for paying the remaining 20% Medicare coinsurance. The monthly premium for Part B for 2011 is $115.40 per month it will drop to $99.90 in 2012 (most people in 2014 will pay $104.90), higher income individuals may pay more. Part B deductible will be $147 per year in 2014. Many patients with Medicare supplement this coverage with a secondary Medigap insurance.
Medicare Part C includes Medicare Advantage Plans. The plans must be approved by Medicare and are managed by private companies.
Medicare Part D must also be approved by Medicare as well. It is the prescription drug coverage offered by private insurance companies to aid with the costs of drugs. Part D is a voluntary benefit but if it is chosen it includes a monthly premium as well as a share of the cost of the prescriptions.
It is important to keep a record of your doctor visits and the processing of your bills as well as never giving your Medicare number to people you do not know. A word to the wise be wary of duplicate payments for the same services and of people that claim they can get Medicare to pay for a service that is not covered.
Saturday, November 12, 2011
Rough Times for Young Adults
Being a young adult in this present U.S. economy is quite the challenge. With unemployment rate at 9% and quite higher for young adults, last year youth age 24 and younger had an 18.4% unemployment rate. High debt from schooling has not guaranteed a job or higher pay. Those college undergraduates that decided to go back to school and receive a graduate degree to evade the recession find themselves in just about the same position but now with much more debt.
Education should always be a positive investment, but in this economy it seems that going back to school has to be strategized and can end up being a set back. College costs have grown faster than inflation and lending practices have certainly changed. These factors have contributed to a lower amount of people going for advanced degrees. There were more men that earned doctorate degrees in 1975 than in 2005. The only reason the amount of PhDs grew during that period was because the number of women receiving doctorates tripled.
According to an annual report from the Council of Graduate Schools in Washington the doctorate degrees given in 2008-09 where 28,469 for men and 28,962 for women. The class of 2008-09 is believed to be the class to be performing the worst, employers prefer to hire recent graduates than to hire someone who has been out of work for such a long time.
Starting in the summer of 2012 the subsidized loan offered by the government will disappear for graduate students meaning they will start accruing interest on their loans the minute the money disburses. In the past low income graduate students could enjoy going to school interest free on their subsidized loan until 6 months (grace period) after graduation or their last date of attendance. Low income undergraduates will still have subsidized loans available to them. Those considering advancing their learning have to think it twice since degrees that take longer to finish will prove to be more expensive. The added costs will place a burden on the education of college students in a rather slow economy.
Education is what leads to economic growth if the present environment favors the small percentage that is wealthy, then that gives the 1% of the population more of a lead to dwarf all others. Occupy Wall Street is a sign of what young adults are going through, men and women that want to work and not feel bad because they took out a loan to pay for their education. Young men and women who want to start families in this decade and have the ability to buy a home. With little or no credit and student loans that look like mortgages it is difficult for this new generation not to feel upset. The American dream should not be impossible and young adults should not have to live with their parents until they are well into their 30's in order to be able to survive.
Our economy and society has to enhance our education and promote higher learning to all. We have to enable our society to compete at a global level to expand our growth. In a world where technology and innovation are rapidly accelerating we should encourage learning and invest in creating jobs that will enhance the quality of life of our society.
Education should always be a positive investment, but in this economy it seems that going back to school has to be strategized and can end up being a set back. College costs have grown faster than inflation and lending practices have certainly changed. These factors have contributed to a lower amount of people going for advanced degrees. There were more men that earned doctorate degrees in 1975 than in 2005. The only reason the amount of PhDs grew during that period was because the number of women receiving doctorates tripled.
According to an annual report from the Council of Graduate Schools in Washington the doctorate degrees given in 2008-09 where 28,469 for men and 28,962 for women. The class of 2008-09 is believed to be the class to be performing the worst, employers prefer to hire recent graduates than to hire someone who has been out of work for such a long time.
Starting in the summer of 2012 the subsidized loan offered by the government will disappear for graduate students meaning they will start accruing interest on their loans the minute the money disburses. In the past low income graduate students could enjoy going to school interest free on their subsidized loan until 6 months (grace period) after graduation or their last date of attendance. Low income undergraduates will still have subsidized loans available to them. Those considering advancing their learning have to think it twice since degrees that take longer to finish will prove to be more expensive. The added costs will place a burden on the education of college students in a rather slow economy.
Education is what leads to economic growth if the present environment favors the small percentage that is wealthy, then that gives the 1% of the population more of a lead to dwarf all others. Occupy Wall Street is a sign of what young adults are going through, men and women that want to work and not feel bad because they took out a loan to pay for their education. Young men and women who want to start families in this decade and have the ability to buy a home. With little or no credit and student loans that look like mortgages it is difficult for this new generation not to feel upset. The American dream should not be impossible and young adults should not have to live with their parents until they are well into their 30's in order to be able to survive.
Our economy and society has to enhance our education and promote higher learning to all. We have to enable our society to compete at a global level to expand our growth. In a world where technology and innovation are rapidly accelerating we should encourage learning and invest in creating jobs that will enhance the quality of life of our society.
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