Women and Aging 2011: Policy Implications for an Aging Population

The United States is bracing for a dramatic cultural and economic shift sparked by our rapidly-aging population. Women over 60 make up a rapidly growing percentage of those retired or entering retirement. As this trend continues, the need for a national dialogue on the future of America’s aging women is more urgent than ever before.

Volunteers of America is excited to announce its third-annual discussion on women and aging on May 10, 2011, at the National Press Club in Washington, DC. Guest panelists include Arianna Huffington of the Huffington Post; Debra Ness, President of the National Partnership for Women & Families; Lorraine Cortés-Vázquez, Executive Vice President of Multicultural Markets and Engagement for AARP; and Mike King, National President of Volunteers of America. The discussion will focus on public policy surrounding the needs of America’s women as they age into an uncertain economic future where access to health care, income and other vital resources is often elusive. Everyone who can make it is encouraged to attend the event and participate in the discussion.

To illustrate the importance of public policy for aging seniors, consider some important facts and figures:

· Women over 60 make up 80% of the caregivers for chronically ill or aging relatives.

· Women can expect to spend 18 years caring for a parent.

· Women have a longer life expectancy than men on average.

· 66% of baby boomers feel they have not adequately prepared financially for the future.

· Nearly half of women caregivers (48 percent) say the economic situation has made providing care more difficult.

· 39% of current non-caregivers are not confident about their ability to cover the costs of their possible future care responsibilities.

Responsible public policy is crucial to meet the needs of our nation’s women. Women like Jeannette can’t afford to wait and women like her need a certain future in our society. As a community, we must start this discussion today. Please join the conversation, spread awareness and get involved today.

12 Financial Facts About Women

Image via WikipediaFed Governor Elizabeth A. Duke recently gave an interesting speech called "Women and Money: Challenging the Myths". She was nominated to the Board of Governors of the Federal Reserve by President George W. Bush on May 15, 2007. The Board of Governors of the Federal Reserve consists of 7 members with Ben Bernanke as its chairman.

One of Elizabeth A. Duke's many interests is financial education. It seems the myth is that men make most of the financial decisions in our families. But this is wrong, women overall are in the drivers seat for family finances.

Even women are under the impression that leaving it to their spouse or significant other is the norm. Elizabeth A. Duke has been integral to setting up financial education for women and encouraging them to seek it.

The following is a list of facts that indicate that most women will someday need the knowledge coming from financial literacy.

• Women are quite likely to be solely responsible for financial decision making at some point in their lives. Indeed, as women age, the probability of living alone increases.
• According to the Social Security Administration, the average life expectancy for women is 81 years, compared to 73 years for men.
• Census information tells us that the average age of widowhood is 55 years old.
• The current divorce rate is estimated at between 36 and 50 percent.
• Statistics indicate that the earlier in life one marries, the higher the probability of divorce.
• Women are more likely than men to be single parents.
• Women have lower average wages, lower lifetime earnings, and are less likely to be covered by a pension plan.
• The Bureau of Labor Statistics reports that median earnings for all women are $638 a week, compared to $798 for men–approximately 80 percent of what men earn on average.
• The Department of Labor reported in 2008 that less than half of working women participated in a pension or retirement plan.
• Women are more likely to work in part-time jobs that don’t offer retirement plans.
• The typical woman spends 10 years out of the workforce for care giving, while the typical man spends just 2 years out of the workforce,
• Nearly two-thirds of U.S. women ages 40 to 79 have already dealt with a major financial “life crisis,” such as job loss, divorce, the death of a spouse, or serious illness.

These facts indicate the importance of financial education for women. After all, women are central to our national prosperity as workers, taxpayers, voters, consumers, and financial managers. Today, half the labor force is composed of women, compared to 38 percent in 1970. While the overall civilian unemployment rate is 9.7 percent, the unemployment rate for women 20 years and older is 8.0 percent. And nearly one-third of married women workers now out-earn their husbands.

Reader: What do you think?

Want a No Money Down Home Loan Then Try USDA Rural Loans

Image by Shahram Sharif via FlickrRural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. 

Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.

How do I know if I am eligible?

As you may assume your income must have to be low. But that's not true. In my county a person can make as much as $68,000 per year. Other areas of the country you can make as much as $97,000. Low income, really! Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. 

 Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. .

What are the terms of the loan?

Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.

How long does it take to be approved?

Rural Development officials should make a decision within 30 days of the Rural Development office's receipt of the application.

Does the USDA have guaranteed loans?

Yes. Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

Approved lenders under the Single Family Housing Guaranteed Loan program include:

• State housing agency;
• Lenders approved by:
• HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities;
• the U.S. Veterans Administration as a qualified mortgagee;
• Fannie Mae for participation in family mortgage loans;
• Freddie Mac for participation in family mortgage loans;
• Any FCS (Farm Credit System) institution with direct lending authority;
• Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

What are the Terms?

Loans are for 30 years. The promissory note interest rate is set by the lender.

There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

What will they guarantee loans for?

 Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

It's amazing these kinds of loans still exist. No money down and no PMI. They are meant to serve the low income population, but are upper limits of $97,000 condidered low income? Rural is the the key word here but when you use their eligibility map most cities are eligible, but not your major cities. But some areas are in close proximity to major cities, check the sites map function to see.

To see if you and your property location is eligible go to USDA Income and Property Eligibility Site

Are You Suffering Gold And Silver Investment Envy Syndrome?

Image by hto2008 via FlickrI opened the morning paper to read the headline "Investors Stampede To Silver". What's going on? First it was the rush to gold, now it's silver. The price of silver is definitely going up. Are you participating in this modern day silver rush?

People worried about the U.S. governments soaring debt load, the Federal Reserve's easy money policy and the slumping dollar; investors have run to silver and gold as money refuges. I can't blame them they see the value of their dollar eroding and see this as the only way to keep ahead.

For those of you who have not jumped on the band wagon yet yet; do you think you should have? Are you getting that sick feeling in your stomach that you missed something big? What should you do?

The basics of investing are to buy low and sell high but do they apply in this situation. The people who are buying gold and silver are not buying as investors, they are buying as a hedge against inflation. A way to keep the value of their money. This frenzy is being fueled buy the small time players, the average guy who is afraid of the financial future ahead.

If you are already invested in gold and silver you must be pleased with your good decision. If your not invested do you feel you should be? I for one feel no need to buy gold and silver. If there is one thing that I have learned from years of investing is never buy at the top. Don't chase an investment. Every time I did buy high, I lost money. The volatility of these precious metals makes me to nervous. The general consensus is that the price of these metals still have room to appreciate, but for me I don't have the stomach for it.

I am perfectly happy investing in my index fund portfolio. I don't envy those who are investing in gold and silver. I judge all investments by the "sleep at night factor". If I have an investment and it doesn't worry me and I sleep well owning it, then it passes for me as a good investment. I believe gold and silver investing is too speculative and not an investment. Those who understand the nuances of gold and silver investing, more power to them. If you have a core holding of good investments and you want to play around with gold set aside no more than 5% of your total investment balance and buy some gold or silver.

My investing style is simple. I use stock index funds:

• 20% VTI: Vanguard Total Stock Market 
• 20% IVE: iShares S&P 500 Value Index 
• 20% IWD: iShares S&P 1000 Value Index 
• 15% IWN: iShares Russell 2000 Value Index 
• 15% IWS: iShares Russell Midcap Value Index 
• 10% DIA: DIAMONDS Trust Series 1

Also Bond Index Funds:

• 50% TIP: iShares Barclays TIPS Bond Fund 
• 50% SHY: iShares Barclays 1-3 Year Treasury Bond Fund 

With this group I get a broad spectrum of stocks across the entire market. The bonds are short term and TIPS which are inflation adjusted.

Investing should not be hard. It's made more complicated buy the equity industry. We are always being sold something. Step back from all the noise and check out index funds.

Here are some additional resources for a short course on investing:

Asset Allocation

The rule of 120 in Asset Allocation

Behavioral Biases

Why most investors don’t make money in the stock market–they do it wrong

Index Investing

Active vs. passive management
Issues with active management
Efficiency and indexing, even for small caps

Investments

TIPS, short term bonds, and inflation hedges
Fama and French’s value and small cap findings:

If your new to investing and want index funds and a simple way of implementing a saving and investing plan check out Betterment.com