Employees who took a hit on their savings last year might finally be in for some welcome news: Companies are stepping up efforts to help them save more for retirement.
Recently, a wonderful, terrific, incredible thing in my life happened, but I'm still having a little trouble embracing the good news.
Question: I'm 34 and have yet to begin saving for retirement. I'm considering participating in my company's 401(k) plan, but I'm unsure whether to do so since my employer doesn't match my contribution. What do you advise? --Nikia, New York, New York
Democratic efforts to pass a health care bill have stalled a bit, and the immediate focus may be shifting toward health insurance reform instead of quickly trying to pass a comprehensive bill, White House officials signaled Sunday.
One roadblock slowing Obama's foreclosure prevention program seems to be clearing up. Bank of America, the nation's largest mortgage lender, announced Tuesday that it was the first lender to sign an agreement to lower or eliminate payments on second mortgages.
Question: My wife and I are both over 50 and plan to convert $115,000 in traditional IRAs to Roth IRAs this year to take advantage of the one-year reprieve on income limits on conversions. Our question: can we each also make regular annual contributions to a Roth IRA this year? We earn about $100,000 a year combined, but we're worried that the $115,000 of taxable income we'll have to recognize because of the conversion will put us over the income eligibility limit for annual Roth IRA contributions. Can you clear this up for us? -- Bob, Souderton, Penn.
1. Your parents may be getting sold on these
It's going to be harder to get a government-backed mortgage from now on.
Like many business owners these days, Bob and Joyce Stubbe are facing a cash crunch.
For two years, Dr. James Smouse of Atlanta Oral and Facial Surgery tried to convince his younger partners to participate in a cash balance pension plan, a unique defined-benefit plan that offers business owners the opportunity to make hefty, tax-deferred contributions toward their retirement savings. But until the recession hit, they weren't interested.
Employees who took a hit on their savings last year might finally be in for some welcome news: Companies are stepping up efforts to help them save more for retirement.
Recently, a wonderful, terrific, incredible thing in my life happened, but I'm still having a little trouble embracing the good news.
Question: I'm 34 and have yet to begin saving for retirement. I'm considering participating in my company's 401(k) plan, but I'm unsure whether to do so since my employer doesn't match my contribution. What do you advise? --Nikia, New York, New York
Democratic efforts to pass a health care bill have stalled a bit, and the immediate focus may be shifting toward health insurance reform instead of quickly trying to pass a comprehensive bill, White House officials signaled Sunday.
One roadblock slowing Obama's foreclosure prevention program seems to be clearing up. Bank of America, the nation's largest mortgage lender, announced Tuesday that it was the first lender to sign an agreement to lower or eliminate payments on second mortgages.
Question: My wife and I are both over 50 and plan to convert $115,000 in traditional IRAs to Roth IRAs this year to take advantage of the one-year reprieve on income limits on conversions. Our question: can we each also make regular annual contributions to a Roth IRA this year? We earn about $100,000 a year combined, but we're worried that the $115,000 of taxable income we'll have to recognize because of the conversion will put us over the income eligibility limit for annual Roth IRA contributions. Can you clear this up for us? -- Bob, Souderton, Penn.
1. Your parents may be getting sold on these
It's going to be harder to get a government-backed mortgage from now on.
Like many business owners these days, Bob and Joyce Stubbe are facing a cash crunch.
For two years, Dr. James Smouse of Atlanta Oral and Facial Surgery tried to convince his younger partners to participate in a cash balance pension plan, a unique defined-benefit plan that offers business owners the opportunity to make hefty, tax-deferred contributions toward their retirement savings. But until the recession hit, they weren't interested.
Question: I'm 57 and I think there's a good chance I'll be laid off this year. If that happens, I'll have to move my 401(k) balance to an IRA. On the recommendation of a finance professional, many of my former co-workers have transferred their 401(k) savings into annuities. Do you think this is the way to go? -- E.Z., Deer Park, N.Y.
The tax man has gotten a lot more aggressive in slapping liens on taxpayers who are seriously delinquent in their payments.
I know money is tight. I know you're busy. And I know tackling money issues isn't fun. But here's what I also know: You wish you could once and for all get your financial house in order.
Question: What are the appropriate ratios in a family budget for expenses such as food, transportation, entertainment, etc.? I want to keep my spending balanced and need a guideline to do so. -- L. P., Chapel Hill, N.C.
Question: If I sell a mutual fund to write off the loss on my tax return, do I face any restrictions on reinvesting the money? -- Tom M., St. Paul, Minn.
Shares of mortgage finance giants Fannie Mae and Freddie Mac soared Monday after the Treasury Department announced what essentially amounts to a blank check for their bailouts.
Most troubled homeowners view President Obama's foreclosure rescue plan as a way out of their financial troubles.
"Comprehensive health insurance is an idea whose time has come in America. There has long been a need to assure every American financial access to high quality health care. As medical costs go up, that need grows more pressing." -- Republican President Nixon's special message to Congress proposing a "Comprehensive Health Insurance Plan," February 6, 1974
Question: How do REITs work? And is it prudent to have them in a diversified retirement portfolio? --M. C., Indianapolis, Indiana
Senate Democrats are preparing to drop a compromise health-care plan that would allow 55- to 64-year-olds to buy into Medicare because of opposition from Connecticut Sen. Joe Lieberman, two senior Democratic sources said Monday.
Senate Democrats are preparing to drop a compromise health-care plan that would allow 55- to 64-year-olds to buy into Medicare because of opposition from Connecticut Sen. Joe Lieberman, two senior Democratic sources said Monday.
Lounging in his giant conference room in an otherwise bland office suite near Long Island's Nassau Coliseum, Lewis Ranieri cultivates the image of a worldly philosopher. The 62-year-old financier prides himself on being a big thinker who conjures elegant solutions to epic problems.
With stocks up more than 60% since hitting bottom last March, the red ink is finally fading on the typical 401(k) account.
Liberal and moderate Senate Democrats said Monday they may be nearing agreement on a package of alternatives to a government-run public health insurance option in the chamber's sweeping health care bill.
You are at the checkout counter with an armload of packages and as you dig into your purse or wallet, you're presented with an offer of a store credit card along with a holiday gift.
Question: My company currently matches my 401(k) contributions dollar-for-dollar up to 5% of salary. But starting in January my employer plans to do away with the match due to the poor economic conditions. I'm still early in my career and don't want to cut back on my retirement savings, so I plan on picking up the slack. I wonder, though, whether I should contribute an additional 5% of salary to my 401(k) or put the extra savings into a Roth IRA. What do you think? --Wes, Conshohocken, Pennsylvania
Millions of long-term unemployed Americans and their families are at risk of losing their health insurance, as their eligibility for a 9-month health-premium subsidy expires.
The U.S. Senate on Monday opened what is expected to be a lengthy and rancorous debate on a sweeping bill to overhaul the nation's health care system.
Under the weather and out of a job? You could be eligible for free health services like flu shots and prescription drug refills.
Only a tiny percentage of troubled homeowners have received permanent modifications under President Obama's foreclosure prevention plan, raising concerns about the effectiveness of the $75 billion effort.
QUESTION 1: I wanted to know if you could tell me how much longer the tax credit for first-time homebuyers will be available? I am a US citizen living abroad and plan to purchase a condominium in Texas-would this tax credit apply to me for that? --Anonymous
The Senate will vote Saturday on opening debate on the sweeping health care bill introduced by Democrats, Majority Leader Harry Reid said Thursday.
Thousands of people will begin to lose a major discount on their COBRA health care premiums in as little as 10 days. Here's what you can do:
Top Senate Democrats are preparing to defend their sweeping health care reform bill Thursday, one day after unveiling the measure on a sharply polarized Capitol Hill.
Senate Majority Leader Harry Reid unveiled a sweeping health care bill Wednesday that would expand health insurance coverage to 30 million more Americans at an estimated cost of $849 billion over 10 years.
Housing counselors, who've received more than $400 million in federal funds to help mitigate the mortgage crisis, are helping troubled homeowners avoid foreclosure and lower their monthly payments, a study released Wednesday has found.
Question: I lost my job, so I have my retirement savings in three separate 401(k) accounts with three different employers. Should I just leave them there, roll them over into an IRA account or do something else? --Annie, Texas
The mortgage meltdown has ravaged the finances of a crucial government agency tasked with propping up the housing industry.
With the market up more than 60% since March, you're probably feeling a lot better about your portfolio lately than you did a year ago. The worry for 2010: Will the runup run out of steam?
JPMorgan & Chase announced plans Tuesday to hire 1,200 mortgage loan officers as the bank moves to expand its home loan business.
President Obama on Sunday praised the "historic" House vote to pass a bill overhauling the nation's ailing health care system, and said now it is time for the Senate to "take the baton" and complete its work.
Consumer credit fell in September for the eighth straight month, the longest streak of declines since the Federal Reserve started keeping records in 1943.
The push to overhaul health care received a major boost Thursday as the American Medical Association and AARP endorsed legislation drafted by top House Democrats.
Giving troubled borrowers yet another way to avoid foreclosure, Fannie Mae said on Thursday it would allow eligible homeowners to rent their own homes.
Question: I'm nearing retirement, but would like to continue investing in stocks and bonds. My question: Should retirees continue to put money into the markets even after they have retired? --Lee Benge, Charlotte, North Carolina
The number of Americans filing personal bankruptcies surged 9% in October and were on target for the highest annual total in four years, according to a report issued Wednesday.
Despite losses in their own investments, 65% of grandparents plan to help their grandkids pay for college, reports the College Savings Foundation. That may spell relief for parents squeezed by the economy. But handled incorrectly, such giving could hurt your child's chances for financial aid, says Joe Hurley of savingforcollege.com. Here are the best ways for Grandma to give.
Out: credit cards. In: debit cards. As more and more Americans shun traditional credit cards, they're turning to debit cards. But you should know there are downsides to debit cards too.
In the coming weeks, Congress will attempt to forge a health care bill from proposals developed by five House and Senate committees.
Nearly half of U.S. workers who left their job last year cashed out their 401(k) accounts, according to a study released Wednesday, despite ongoing efforts to dissuade Americans from doing so.
Mortgage applications fell last week for the third week in a row, even as interest rates edged lower, an industry group said Wednesday.
Question: I'm 47 years old and would like to begin participating in my company's 401(k) plan. But I don't know if this is the right time to do so. Do you think I should start now or wait until the economy gets better? --Frank, Brighton, Mass.
Jason and Patty Simkins, both 40, have saved next to nothing for retirement in the past year. They were rattled by the rocky market, which caused the value of their portfolio to tumble 40% at its low point.
Mortgage applications plunged last week as rates ticked higher above 5%, an industry group said Wednesday, as the expiration of a home buyer tax credit drew nearer.
If you are among the 6.5 million homeowners who took out a low-rate adjustable-rate mortgage during the housing boom, you've probably spent the past couple of years waiting for your day of reckoning to come.
Question: The 4% rule seems to have become the conventional wisdom for drawing money from your savings in retirement. But I believe the rule is flawed. I think it might make more sense to choose a percentage of your savings that you will withdraw annually and then just apply that percentage to your savings balance at the beginning of each year so you would have more money to spend in years when investment returns are good and less to spend in years when returns are bad. What do you think? --E. W., East Lansing, Michigan
As health care costs rise, more employers will be nudging workers toward high-deductible health plans because they cost less. Here's what you need to know if it's among your open enrollment options.
The health care reform debate reached a new milestone Tuesday as a key congressional committee passed an $829 billion plan projected to extend coverage to an additional 29 million Americans.
Leslie Elder's eyelids fluttered open, and through the fog of pain medication, she saw the emergency room doctors pull back the curtain in her room.
Health insurance premiums for the typical American family would increase by another $4,000 by 2019 under a key Senate overhaul plan, according to an industry trade group analysis.
During the housing boom, mortgage lenders were doling out the dough, giving loans to people who could never have qualified before.
The possibility of securing a mortgage rate below 5% has greatly improved in recent weeks, in a positive sign for would-be home buyers.
Question: I always heard that you will need 80% or so of your working salary to live on in retirement. But is that a percentage of your gross income or your take-home pay? --Mary Taylor, Chalfont, Pennsylvania
Consumer credit pulled back for the seventh straight month in August, led by a steep decline in credit card usage, a government report said Wednesday, as unemployment soared and cash-strapped consumers continued to limit spending.
A compromise health care proposal widely seen as having the best chance to win Democratic and Republican support would cost $829 billion over the next 10 years, nonpartisan budget analysts concluded Wednesday.
Among the swell of bad news that occurred courtesy of the financial crisis last fall is that 401(k) investors got slammed. And a new report released Tuesday quantifies just how hard.
Mortgage applications surged last week as interest rates on home loans remained low, an industry group said Wednesday.
Top House Democrats on Tuesday slammed insurers who claim that domestic violence is a pre-existing condition that can be used to deny coverage to battered women.
Question: I'm 24 years old and feel like I've become a savings junkie. I've already maxed out my Roth 401(k) contribution for this year and now I'm thinking about opening up an IRA too. I have no debt, and I have about $13,000 in other savings as well. What do you think -- should I open the IRA? --Kyle, Boston, Mass.
Forty-five-year-old Nancy Pessler is too sick to work full time. Instead, she has turned fighting her insurance company into a full-time job. Pessler, who lives in Cincinnati, Ohio, is one of so many Americans falling through the cracks in the health care debate.
Personal bankruptcies topped the 1 million mark in the first nine months of the year, the first time it has done so in four years, according to an industry research firm released Friday.
QUESTION 1: I know that Congress is considering extending the unemployment benefits, but what about Cobra? That has been a godsend for my husband and me. Instead of paying $1,100 a month, we only pay $434. My husband has been laid off since December of 2008 after 22 years with a newspaper company. --Dawn, Ohio
The Senate Finance Committee on Tuesday rejected two amendments to include a government-run public health insurance option in the only compromise health care bill so far.
The seemingly elusive effort to reach a consensus on health care reform got a new boost Wednesday with the long-awaited launch of a plan believed to have the best hope so far of winning support from centrist Democrats and Republicans.
Just one year ago, the world's financial sector was plunged into chaos and panic as Lehman Brothers -- one of the biggest investment banks -- collapsed. Consumers learned some hard lessons, including how to cope with substantial 401(k) losses.
The struggle over health care reform intensified Thursday as President Obama sought to build on what administration officials hoped was new momentum generated by his prime-time address to Congress.
The foreclosure crisis grinds on amid signs of hope.
President Obama on Wednesday made a passionate call for Congress to fix the nation's ailing health care system in the same spirit that created Social Security and Medicare in difficult times.
Substantially fewer homes were repossessed in August than in July, but just as many Americans were behind on their mortgage payments, according to a report released Thursday.
Question: I'm 58 and have never opened any kind of a retirement account. Is it too late for me to do so now, or should I hope that Social Security will be there when I retire in a few years? --Vincent I., Denver, Colorado
A proposed health-care compromise by the powerful chairman of the Senate Finance Committee lacks a government-run insurance option favored by Democrats and would tax the most expensive health insurance plans, a source close to the discussions told CNN Monday.
A proposed health care compromise by the powerful chairman of the Senate Finance Committee lacks a government-run insurance option and would tax the most expensive health insurance plans, a source close to the discussions told CNN Monday.
On a dairy farm that Bob Topel likes to describe as "25 miles from anywhere," the term co-op is old hat.
Last year's meltdown was a sobering moment for 401(k) holders who were used to a market that only went up. Many of them thought of investing as risk free.
Earlier this year, public outrage boiled over with news of eye-popping pay to top executives on Wall Street.
Question: I'm 58 and have $30,000 sitting in an online savings account earning around 2% annually. Is there some way I can get a better return on this money? I want to use some of it within the next five years or so for travel. --Nate, Texas
It's only a couple of weeks or even days until school begins. And if you don't think you'll be able to get a handle on your college tuition bill, here with your guide to last minute money.
Question 1. Do you have to claim the money in the Cash for Clunkers program you received as income in your tax returns for next year? -- Joe, Indiana
Question: I'm 29 and I contribute 12% of my $109,000 annual pay to my 401(k). My company matches 100% up to the first 6% of salary I save. I'm concerned, though, that I could give up a lot of my 401(k) to taxes after I retire, so I'm considering diverting some of my 401(k) contributions to a Roth IRA account each year. Do you think that's a good idea and, if so, how much do you think I should be putting into the Roth? --Eric, Newark, NJ
Kristin Schlaud brimmed with pride when she became the first in her blue-collar family to make it to college. But three years after law school, she is completely broke, saddled with almost a quarter-million dollar debt.
Introduction: Use this CNN Student News financial glossary to help students understand concepts about today's U.S. economy that are currently in the news.
Borrowing money today requires impressing an increasingly hard-to-please crowd. With creditors of all kinds more cautious than ever, you need an A+ application to land the best terms -- and that means an A+ credit score, the number lenders use to judge your risk of default.
Public options? A co-op? Or how about sticking with the status quo of good old-fashioned private medical insurance plans?
Want to create jobs? Restaurant owner Rob Redfearn says send some stimulus money his way and he would create 50 jobs within three months.
A woman asked Rep. Allen Boyd at a town hall meeting the other day if health care reform proposals would force people to let the government access their bank accounts.
President Obama took his health care message to talk radio Thursday, telling listeners of Philadelphia-based host Michael Smerconish that he wants to overhaul the nation's ailing health care system out of necessity rather than politics.
For years a cardinal rule of retirement investing has been to put every penny you can into IRAs, 401(k)s, and other tax-deferred accounts. That advice rested on a commonsense assumption: that after you stopped working you'd move into a lower tax bracket. That was important because the money you take out of a tax-deferred account is subject to ordinary income taxes.
There's a reason consumers are worried about protecting their credit- and debit-card information.
A key Senate negotiator said Sunday that President Obama should drop his push for a government-funded public health insurance option because the Senate will never pass it.
Home mortgage rates were mixed this week as the Federal Reserve began easing away from its repurchase of Treasurys.
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