Friday, July 29, 2011
Majority Now Worried About Retirement Standard of Living...
58% - Percentage of the Americans surveyed in April 2011 (more than half) are worried about their ability to maintain their current standard of living into and throughout their retirement years.
35% - Percentage of Americans who were worried about the issue in the 1st quarter 2002.
Source: Gallup
Thursday, July 28, 2011
How To Reduce The Risk of Alzheimer's...
Wednesday, July 27, 2011
Tuesday, July 26, 2011
1% of Americans Are Worth $1 Million
3.1 million Americans own investable assets worth at least $1 million (not counting the value of their primary residence).
The population of the USA is 312 million today.
Therefore, roughly 1% of Americans have a net worth of $1 million.
Source: Merrill Lynch Cap Gemini World Wealth Report, Census Bureau
Monday, July 25, 2011
Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis
On Friday, July 22, the S&P 500 closed @ 1345, and that was...
+5.7% ABOVE its 12-Month moving average which stood @ 1272.
+4.4% ABOVE its 40-Week moving average which stood @ 1288.
+2.5% ABOVE its 10-Week moving average which stood @ 1312.
Therefore, the INTERMEDIATE-Term trend IS Moderately BULLISH and the LONG-Term trend is BULLISH.
Friday, July 22, 2011
How Long Might This Bull Market Last?
The current stock bull market began its 29th month as of 07/09/11, having started when the S&P 500 bottomed at 677 on 03/09/09.
There have been 9 other bull markets since 1950.
The average length of time for these 9 previous bull markets has been 4 ½ years or 54 months.
Three of the 9 previous bulls lasted less than 3 years.
Source: BTN Research
Thursday, July 21, 2011
Baby Boomers Who Own Annuities Are More Confident About Retirement...
9 in 10 — Baby Boomers who own annuities are more confident about their retirement future than those who do not own annuities.
Wednesday, July 20, 2011
Coal, Not Oil Dominates China's Energy Consumption...
Coal powers the Chinese economy.
The country is the world’s largest coal consumer, gobbling up nearly 50% of the world’s coal consumption in 2009.
Coal accounted for 71% of China’s energy in 2008—more than 3 times the United States’ share. By contrast, oil accounts for only 19% of China's total energy consumption
The Electricity Council estimates that the country’s coal demand will reach 1.92 billion tons in 2011, up nearly +10% from 2010.
The country is the world’s largest coal consumer, gobbling up nearly 50% of the world’s coal consumption in 2009.
Coal accounted for 71% of China’s energy in 2008—more than 3 times the United States’ share. By contrast, oil accounts for only 19% of China's total energy consumption
The Electricity Council estimates that the country’s coal demand will reach 1.92 billion tons in 2011, up nearly +10% from 2010.
China hasn’t always been such a glutton for coal. In fact, coal consumption actually declined from 1996 to 2000. However, consumption has shot up +180% since then and China accounted for 80% of demand growth between 1990 and 2010.
This is because demand for electricity exploded over that time.
China’s rapid urbanization and rising middle class has led to an exponential number of new refrigerators, air conditioners and other appliances in homes. China sits atop the third-largest store of recoverable coal reserves, behind the U.S. and Russia.
China’s rapid urbanization and rising middle class has led to an exponential number of new refrigerators, air conditioners and other appliances in homes. China sits atop the third-largest store of recoverable coal reserves, behind the U.S. and Russia.
Tuesday, July 19, 2011
Why The Average Equity Fund Investor Will ALWAYS Trail The Market...
From January 1, 1990 to December 31, 2009, the S&P 500 gained +8.2% per year.
But the average equity fund investor has gained less the half of much, only +3.2%!
During the same period, the typical aggregate bond index gained +7.1% per year.
But the average fixed income investor has earned 7 times less!!!, only +1.0%!
But the average equity fund investor has gained less the half of much, only +3.2%!
During the same period, the typical aggregate bond index gained +7.1% per year.
But the average fixed income investor has earned 7 times less!!!, only +1.0%!
BOTTOM LINE:
1. Sadly, over the past 2 decades, investors haven't built any real wealth during neither the past 10 years nor the past 20 years. Taxes, inflation, fear, greed, the business cycle, financial crises and market meltdowns all conspired to, not grow, and not even maintain, but shrivel the purchasing power of the average investor.
2. The vast majority of passive investors simply don't have and never will have the psychological discipline to keep the faith during bear markets meltdowns of -30%, -40% or -50% that decimate their retirement nest eggs.
And who can blame them?
1. Sadly, over the past 2 decades, investors haven't built any real wealth during neither the past 10 years nor the past 20 years. Taxes, inflation, fear, greed, the business cycle, financial crises and market meltdowns all conspired to, not grow, and not even maintain, but shrivel the purchasing power of the average investor.
2. The vast majority of passive investors simply don't have and never will have the psychological discipline to keep the faith during bear markets meltdowns of -30%, -40% or -50% that decimate their retirement nest eggs.
And who can blame them?
Thankfully, there is a better way.
Monday, July 18, 2011
Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis
On Friday, July 15, the S&P 500 closed @ 1316, and that was...
+3.8% ABOVE its 12-Month moving average which stood @ 1268.
+2.5% ABOVE its 40-Week moving average which stood @ 1284.
+0.4% ABOVE its 10-Week moving average which stood @ 1311.
Therefore, the INTERMEDIATE-Term trend IS NEUTRAL and the LONG-Term trend is Moderately BULLISH.
Friday, July 15, 2011
Baby Boomers Giving Care To Parents Soars...
- $3 trillion — Amount Americans caregiving for their parents stand to miss out in wages, pension income and Social Security benefits.
- $324,044 — Amount women lose on average caring for their parents.
- $283,716 — Amount men lose on average caring for their parents.
Americans caregiving for their parents stand to miss out on an estimated total of $3 trillion in wages, pension income and Social Security benefits when they take time off or leave the workforce due to their caregiving responsibilities, according to a study.
The Metlife study, "Double Jeopardy for Baby Boomers Caring for Their Parents," reports that individually, average losses are $324,044 for women and $283,716 for men.
The number of adults providing care to a parent has tripled since 1994.
"Nearly 10 million adult children over the age of 50 care for their aging parents," said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute.
“Assessing the long-term financial impact of caregiving for aging parents on caregivers themselves, especially those who must curtail their working careers to do so, is especially important, since it can jeopardize their future financial security."
The study also found that:
- Americans 50 years or older who work and provide care to a parent are more likely to report that their health is fair or poor than those who do not provide care.
- Due to leaving the workforce early, women lose $142,693 in wages, $131,351 in Social Security benefits and approximately $50,000 in pension income.
- Men lose $89,107 in wages when they leave the workforce early, $144,609 in Social Security benefits and $50,000 in pension income.
"There is also evidence that caregivers experience considerable health issues as a result of their focus on caring for others. The need for flexibility in the workplace and in policies that would benefit working caregivers is likely to increase in importance as more working caregivers approach their own retirement, while still caring for their loved ones."
Source: Metlife Mature Institute
The MetLife Mature Market Institute is MetLife's center of expertise in aging, longevity and the generations and is a recognized thought leader by business, the media, opinion leaders and the public. The Institute's groundbreaking research, insights, strategic partnerships and consumer education expand the knowledge and choices for those in, approaching or working with the mature market. - Americans 50 years or older who work and provide care to a parent are more likely to report that their health is fair or poor than those who do not provide care.
Thursday, July 14, 2011
Wednesday, July 13, 2011
The Dismal State of Retirement in America: The Disturbing Facts...
1) Americans are broke,
2) the real estate market is still in a secular decline,
3) stock prices are in a decade long morass,
4) real (inflation-adjusted) incomes are falling,
5) public pension plans are insolvent,
6) our Social Security & Medicare entitlement programs are structurally unsound.
If the pillars that seniors have relied on in the past fail to miraculously regenerate (and there is certainly no reason to believe they will), all that most retirees will have will be freshly printed greenbacks that come from a never ending policy of federal deficits and an obliging Federal Reserve.
Unfortunately, the inflation that will result from such a policy will sap most of the purchasing power that those notes possess.
In other words, for most people retirement is now an illusion, and many Americans will find themselves working far longer, for far less real compensation, than they ever imagined.
The quicker we realize this, and plan accordingly, the better off we'll be.
Tuesday, July 12, 2011
Impressive Facts About China's Growth...
1. China will become the 2nd largest consumer market in the world by 2015, behind only the U.S.
2. Wal-Mart is opening one store per week in China.
3. KFC is opening one store per day in China.
4. IKEA has stopped advertising in China because its stores have become so crowded it's facing "crowd control" problems.
~James McGregor, author of the book "One Billion Customers: Lessons from the Front Lines of Doing Business in China," from his interview on NPR.
Monday, July 11, 2011
Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis
On Friday, July 8, the S&P 500 closed @ 1344, and that was...
+5.6% ABOVE its 12-Month moving average which stood @ 1272.
+5.0% ABOVE its 40-Week moving average which stood @ 1280.
+2.3% ABOVE its 10-Week moving average which stood @ 1314.
Therefore, the INTERMEDIATE-Term trend IS NEUTRAL and the LONG-Term trend is BULLISH.
Friday, July 8, 2011
Thursday, July 7, 2011
Wednesday, July 6, 2011
Women & Retirement: The Statistics (Part 1 of 3)
How would you like to start retirement with three marks against you?
That's the case for many women who...
(1) typically earn less than men during their careers
(2) are more likely to take time away from work to care for a relative (which limits contributions to retirement savings); and
(3) have a longer life expectancy, and, thus, need for a sizable nest egg.
Source: Wall Street Journal
(1) typically earn less than men during their careers
(2) are more likely to take time away from work to care for a relative (which limits contributions to retirement savings); and
(3) have a longer life expectancy, and, thus, need for a sizable nest egg.
Source: Wall Street Journal
Tuesday, July 5, 2011
Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis
On Friday, July 01, the S&P 500 closed @ 1339, and that was...
+5.3% ABOVE its 12-Month moving average which stood @ 1272.
+5.1% ABOVE its 40-Week moving average which stood @ 1275.
+1.8% ABOVE its 10-Week moving average which stood @ 1316.
Therefore, the INTERMEDIATE-Term trend IS NEUTRAL and the LONG-Term trend is BULLISH.
Friday, July 1, 2011
One Reason for High Oil Prices: Chinese Demand
China’s oil consumption per capita has increased over +350% since the early 1980s until now.
In fact, consumption per capita has risen nearly +100% in just the past decade!
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