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4 September 2010

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Retirement Savings Calculated

Jul 31 at 3:03pm by Clip Finder

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Source: Long Beach Press Telegram

Like many people out there you probably worry about how much money you’ll have to spend in retirement.

 Financial planners and academics have wrestled with this question for decades and come up with a kaleidoscope of strategies and formulas. A popular one says you can safely spend 4 percent of your savings the first year in retirement, increasing the amount each year to account for inflation.

But such simplistic formulas depend on many variables and don’t work for everyone. I came up with a more satisfactory answer in one day by tweaking and expanding an expense-tracking spreadsheet I’ve used for years.

 This answer takes into account my personal circumstances and goals, with the added benefit that the numbers can be updated at any time for more accurate projections. (I suggest updating every year.)   

 A lot depends on your job prior to retirement of course, and how much you made.  That means whether you work as a Middlesex County drunk driving lawyer , the owner of an iPod repair company, an Ocean County criminal attorney, or a Texas wrongful death lawyer ,

 You may need to modify my method to suit your situation and goals. But the basic concepts apply to everyone. If nothing else, this exercise will force you to take stock of your finances.

 With patience and basic math skills, you can do what I suggest with pencil and paper. But it’s much easier and faster – and more effective – to use a computer spreadsheet program that lets you see right away how changing one number affects many others. Explaining how these programs work – I use Microsoft Excel, but any basic program will do – is beyond the scope of this column. You can find tutorials in bookstores and libraries.

 Tallying all your savings, both retirement and non-retirement accounts (let’s say they total $600,000). Don’t count annuities and pensions that cannot be converted to cash and don’t count your home equity until or unless you cash it in and have another place to live.

 Next, create not one but four columns for the money you expect to spend over the next year. The first one will be for day-to-day needs such as food, utilities, insurance and taxes; the second for “ordinary wants” such as eating out or renting movies; the third for “special” wants such as a European vacation, and the fourth for occasional needs, such as replacing an aging car in three years.

 Add all projected expenses – say they are $30,000, $15,000, $0 and $0 respectively for the next year, totaling $45,000 – and subtract them from the $600,000, leaving $555,000.

 

From that $555,000, you’ll need to keep some money – say, $30,000 – liquid and safe for daily transactions and emergencies. At today’s paltry rates, the $30,000 will earn little or no interest.

 

That still leaves you $525,000, for which you will assume an investment return. I suggest starting at 5 percent, based on a conservative portfolio, to see whether that’s enough.

 

With a 5 percent return, you’ll make $26,250 on your $525,000. Add to it any other anticipated income, such as pensions and Social Security benefits, annuities or a part-time job. Say this other annual income adds up to $30,000, leaving you with $611,250 after one year ($555,000 plus $26,250 plus $30,000).

 

Repeat the process for all the years you anticipate living in retirement to see when or whether you run out of money. Remember to increase your projected spending each year to account for inflation.

 

Potential problems? Some years you may want or need to spend more. Investment returns may be less than projected. If you must cut back on spending, start with the “special” wants. If cutting spending is not enough, you may need to shoot for higher investment returns – which means taking on greater risk – and/or increase income by working longer.

 

Send questions or comments to Humberto Cruz or c/o Tribune Media Services, 2225 Kenmore Ave., Buffalo, N.Y. 14207. Personal replies are not possible.

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My Take:  I’d be willing to bet that if I was working as a NYC wrongful death lawyer , a Houston work injury lawyer , a Bronx construction accidents lawyer  or even ran my own iPod repair service , no calculator in the world could predict for me what I would need to live on in 30 years.  The economy is so unstable, foreign governments are so much a part of the big financial picture for Americans now, and mother nature her self all have way more control of this issue than I do.  I think the best way to plan is to save and stay healthy, that way you can work until you feel like and can afford to watch golf or play it. 

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Looking for a reputable California breast implant surgeon?  Perhaps you’re considering consulting an  Oakland California (CA) tummy tuck surgeon to get rid of the “baby fat.”  Be sure to check with the California board of certified plastic surgeons first so you know if your potential surgeon has had any wrongful death suits against him or her.

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NASA Company Lays Off 1,300 Plus Workers

Jul 28 at 4:04am by Clip Finder

NASA_logo

Source:  Associated Press
In preparation for the termination of the Space Shuttle Program, a NASA contractor has announced the layoffs of more than 1,300 space shuttle workers.

Layoff notices were issued to 1,394 USA employees in all, company spokesperson Kari Fluegel told SPACE.com. The layoffs take effect Oct. 1 and were announced earlier this month by USA officials.

“Our workforce has known for several years that the Space Shuttle Program has been scheduled to end, but layoffs are always difficult for everyone involved,” said Virginia Barnes, USA president and chief executive, said in a July 6 statement. “We are committed to making this transition as smooth as possible.”

Shuttle program ending

The Houston-based United Space Alliance is a partnership between Boeing Co. and Lockheed Martin that has operated the space shuttle fleet for NASA since 1995.

Fluegel said 902 layoff notices were issued to USA workers in Florida, which is home to NASA’s Kennedy Space Center in Cape Canaveral that serves as both launch site and home port for the agency’s three shuttles. Another 478 layoffs were issued for Texas, which is home to NASA’s shuttle mission operations, with 14 more in Alabama, where NASA’s Marshall Space Flight Center is based.

About one-third of those receiving layoffs in each division nominated themselves for the cutbacks, Fluegel said.

NASA’s space shuttle fleet is set to retire next year after 30 years of launching astronauts into low-Earth orbit. The shuttles began flying in 1981 and have flown on 132 missions so far.

Two final shuttle missions are currently scheduled (in November and February, respectively) to complete the International Space Station, which has been under construction since 1998 by a consortium of 16 countries. Congress is discussing the possible addition of a third and final shuttle mission. If approved, that extra flight would likely launch next summer, NASA officials have said.

Fluegel said that if the extra shuttle flight is approved, it will not affect the impending Oct. 1 layoffs. But there could be repercussions for more layoffs ahead.

“This plan wouldn’t be affected at all, but it would affect the timing, obviously, of when we would do layoffs, and how we’d do layoffs, next year,” Fluegel said.

Debate on commercial spaceships

NASA is retiring its three space shuttles (Atlantis, Discovery and Endeavour) to make way for a new plan that aims to send astronauts to an asteroid by 2025, and then on to Mars. That new plan replaces the agency’s previous Constellation program, which sought to return astronauts to the moon in the 2020s.

President Barack Obama proposed cancelling the Constellation program, which included new rockets and spacecraft to launch astronauts. That plan would set aside $6 billion over five years to support the development of new commercial spaceships that could ferry astronauts into space.

Draft NASA authorization bills under review in both the Senate and House of Representatives, however, would cut the amount for commercial crew services, if approved.

NASA’s next space shuttle to fly will be Discovery, which is slated to launch Nov. 1 to deliver a storage room and robot assistant called Robonaut 2 to the $100 billion International Space Station.

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My Take: New York sexual harassment lawyers can’t do much to help these guys and girls out. Doubtful too that New York employment lawyers could either.  Once the money runs out for space exploration, workers pretty much reach the end of the line. But, as the say, this current economic downturn has forced a lot of careered individuals out of their comfort zones.  People are having to reinvent themselves at 40, 50 and even older, trying to find a new way to make a living as the tech world changes how we do business and the training for keeping up with that technology gets more and more expensive to latch on to.

I have a girlfriend who worked for 20 years as an executive travel agent. Her job went south after 911.  She took a year on unemployment and then moved to Southern California, where she now runs a pretty successful San Diego wedding design company.  She is a top source for San Diego CA wedding chair covers, flowers, decorations and other items you need for weddings and special events.  I know someone else who was laid off from his tax accountancy firm and now works as a trainer for a pretty good New York defensive driving course.  He teaches safety courses online and off and helps people prepare for their driving tests.  He loves it.  He says it’s better than his old job because he gets to be outdoors and makes his own hours.

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Options For Saving More

Jul 25 at 2:02pm by Clip Finder

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Source:  US World & World Report

If you’re looking for ways of saving money, why not start with money saving tips that are relatively pain free in addition to cutting down on vacations, shopping for unecessary items and eating out too often.

[Slideshow: 20 Things You Should Never Buy Used]

With a little imagination, you’ll find plenty of ways to reduce spending without making big changes to your lifestyle. And to get you started, here are eight painless ways to save money.

1. Get healthy: As someone who has struggled to stay fit, I realize that eating healthy and staying in shape is easier said than done. But for those who are in good shape, you can save a lot of money on life insurance and individual health insurance plans. And as an added bonus, you’ll feel better and have more energy.

2. Rethink auto insurance: Every year, reexamine your auto insurance policy for savings opportunities. For example, consider raising your deductible, which lowers premiums. For older vehicles, evaluate whether you really need collision coverage, which covers damage to your car when your car hits or is hit by another vehicle or object. And make it a habit to compare auto insurance quotes annually, which can be done online in minutes.

3. Improve your credit score: Of all the painless ways to save money, improving your credit score is arguably the most important. From home loans and car loans, to credit cards and auto insurance, a good credit score can save you a small fortune. Over a lifetime, the savings can easily reach tens of thousands of dollars.

4. Invest on the cheap: Whether you are a passive investor who sticks with mutual funds or an active stock and options trader, there are easy ways to save money. For mutual fund investors, stick with funds that have low expense ratios. My rule of thumb is to keep the weighted average expense ratio for all mutual funds under 50 basis points (0.50 percent). As compared to funds that charge well over 1 percent in fees annually, the savings over a lifetime of investing can be substantial. And for active traders, stick with discount brokers that charge $10 per trade or less.

5. Think triple play: One of the biggest monthly expenses for some is the cost of Internet service, cable, and phone. The major of providers today offer discounts when you bundle all three of these services together. Called a triple play, you not only save money, but you also get the convenience of a single bill each month.

[See 9 Surprising Facts About Your Credit Score.]

6. Go prepaid with your cell phone: While this option won’t be right for everybody, many can save a small fortune with prepaid cell phones. You can find prepaid cell phone plans that charge just $0.10 a minute. And because they are prepaid, you don’t have to commit to long-term contracts. Two of the more popular prepaid cell phone carriers are Net10 and Cricket.

7. Shop online: There are several benefits to shopping online, convenience being chief among them. But shopping online can also save big money. Many retailers offer special discounts to online shoppers. And virtually every company that sells products or services online offers promo codes, discounts or coupons. Particularly if you have a big purchase planned, make sure to search the internet for deals before buying.

8. Get cash back: If you have good credit, there are a number of cash back credit cards that pay up to 5 percent on purchases. The key is to use the card for monthly bills and everyday expenses, not to charge things you don’t need. Put monthly bills that accept credit cards on automatic payment, and use the card for everyday purchases such as groceries and gas. And as an extra precaution against overspending, pay the credit card bill in full several times throughout the month. It’s easy to do online, and it prevents any surprises at the end of the month.

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My Take:  This article makes about as much sense as me rushing to download sci-fi movies and buying sorority apparel online when I don’t have the money and a no longer in college.  I’ve explored every “triple play” option there is for phone, Internet and wireless and the options have never been cheaper than they are if I piecemeal them together through different carriers.  I an search online for Greek apparel and movies download for about $29 a month; discontinued my landline because I have a cell, so no costs there; and my wireless plan is about $45 a month because I watch my minutes and I don’t have to talk on the phone just to get my shopping done.

I’ve also had a gym membership and exercised religiously for years, but it’s never lowered my premiums for health insurance through my employer.  The best way to cut costs there is to opt out of them altogether, eat organic vegetables, cut out drugs and alcohol and pay attention to your body so that you know when and how to take care of it best. 

In short, to cut costs the fastest all you have to do is make lifestyle choices and changes. 

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Are Banks Liable for Internet Crime?

Nov 11 at 5:05am by Clip Catcher

Cited: FindLaw Blog

banks 1The ability to shop and conduct financial transactions online has made life easier with the Internet in more ways than just these.  However, just like in the real world, criminals work everywhere on the Internet.  They are seeking to skew your identity, personal information as well as your money.  These “Cyber” criminals are responsible for their wrongdoing according to the criminal and civil law.  But, the question is whether or not others can also be held responsible for the harm they cause as a result of their illegal activities.

The recent case of Patco Construction Company, Inc. vs People’s United Bank d/b/a Ocean Bank, filed in state court in Maine, tees up this very question for resolution.  Patco alleges that it has been a customer of Ocean Bank. Patco asserts that Ocean Bank failed to fulfill “ones of its most basic obligations, namely, to protect its customers’ funds against theft.”

According to Patco’s complaint, over the course of one week in May of this year, cyber criminals accessed Patco’s accounts at Ocean Bank and transferred hundreds of thousands of dollars to numerous banks accounts by way of the Automated Clearing House network, a system used by banks to transfer funds electronically between accounts.

Patco states that Ocean Bank purportedly informs its customers that its online banking system utilizes sophisticated “behind-the-scenes” security measures that are suppose to monitor the type, frequency and origination point of electronic transactions. However, Patco complains that the security measures on Patco’s account were structured in a manner that leaves the account vulnerable to the very attacks that occurred.

Moreover, Patco alleges that Ocean Bank did not detect the improper transfers that should have been seen as suspicious because they were larger than usual Patco transactions, they were directed to numerous accounts as to which Patco had never transferred funds, and the transfers original from Internet protocol addresses that Patco had not used before to conduct its online banking.

In addition to the foregoing, Patco complains that Ocean Bank allowed the perpetrators to draw on a line of credit Patco had with the bank in excess of more than $200,000 in additional stolen funds. Patco states that it is particularly insulted that Ocean Bank expects the repayment of this money plus interest by Patco.

Patco has asserted causes of action for negligence, breach of contract, breach of fiduciary duty, among others.  Patco’s complaint is just one side of the story, of course. Ocean Bank will have its day in court and will be able to present its defenses. How this case unfolds and resolves largely will turn on the facts.

For those sore looking for some financial assistance along the lines of mortgage assist . . .

Factual questions to be answered will include: the extent to which Ocean Bank represented and agreed that it would implement security measures to protect the funds of customers; whether Ocean Bank fulfilled its representations and promises in that regard; whether Ocean Bank acting responsibly in light of its position of trust and in light of reasonable industry standards; and whether Ocean Bank should have been on notice of improper criminal conduct based on the facts.

Other facts to be considered include the banking history of Patco with Ocean Bank, whether Patco possibly did anything to contribute to the compromised scenario as it unfolded, and whether the Cyber attacks were beyond what a reasonable financial institution could detect and prevent under these circumstances.

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My Take: This is something that every bank should worry about especially if they claim to be able to protect clients’ funds.  I definitely would not want to keep my money in a bank that could not protect it.  Businesses usually have a retail merchant account that they utilized for all of their online in credit card purchases.  If an account is not to say, then their business will not succeed.

It should not make any difference if businesses are using wireless credit card machines or telephone transfers, a bank should be able to protect the information from being stolen.  I could understand a bank not being held responsible if they could prove that the information was stolen through some other means and they had the proper security.

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