Learn The Stock Market Without Losing Your Money

This is a Sponsored post written by me on behalf of Smart Stocks. All opinions are 100% mine.

 

The stock market is a fascinating place to many people because the lure of making a quick fortune. Yet in reality the majority lose most of their money before they even catch on how the market functions and how difficult it is to show a positive return. If there were some way to get some hands on training before jumping in with real money. The website that does that is called Smartstocks.com, there they have a virtual stock market game.

 

On this virtual stock market you can buy and sell stocks just like at the real stock market. Here you buy and sell real companies and you're given $1,000,000 to get you started. As in the real market your virtual portfolio rises and falls as if you own the actual stocks.

 

As your learning to invest and develop trading strategies you are not alone. There are many other investors using the virtual trading game. They form groups where they discuss investing and you can join the groups to swap trading war stories. You will find others there, like yourself, who are trying to hone their trading skills. Already there are many trading groups of friends and classmates discussing the stock market. Many colleges and business schools are using Smartstocks.com to learn the basics and get some hands on training. 

 

Smartstocks.com ranks all investors and keeps track of who is doing the best. They are ranked by groups, your own or others. You can see the top 100 investors or the bottom 100. When checking out the rankings of others, a little competition starts and it makes it all the more interesting.

 

I signed up for a free account and did some stock trading. The interface is easy to navigate and very easy for the new investor to use. Smartstocks.com is keeping track of my portfolio and showing me my gains and loses daily. I haven't spent all of my million dollars yet because I'm still looking for some bargains. That's my trading strategy and trying it out in a virtual stock market takes away all the stress and leaves only the fun. 

 

For the beginner, the stock market can be confusing, Smartstocks.com makes learning easy and they even have interesting videos teaching core concepts. 

Baby Boomers Spending More Cash On Their Family, Than On Their Own Future

 (Photo credit: Tax Credits)In a study, released today by Ameriprise Financial, 93% of Baby Boomers have provided financial support to their adult children and 58% have assisted their aging parents.

This is a subject that I can relate to and confirm in my own life. I have parents in their 80's who do not suffer financially or health wise, thank God. But I do have the adult children side of the problem. With three in college, thankfully almost done, it has been a strain on our finances. As the study confirms the casualty of this financial help is my own retirement plans.

My income has suffered, along with many others, because of our country's economic problems. This left us scrimping and budgeting like never before. We find it difficult to save for retirement at a reasonable rate. It will definitely effect us when we are in retirement.

The study also reveals, in 2007, when the original Money Across Generations study was conducted, 44% of boomers claimed they were trying to grow their savings. Now only one in four (24%) say they’re putting away money for the future and just as many (24%) report simply trying to maintain what they have.

Many boomers have to assist their parents financially. More than half (58%) report assisting their aging parents in some way, including helping them purchase groceries (22%) or pay medical (15%) and utility bills (14%).

No one can ever say Boomers are not generous people. The Money Across Generations study says most boomers surveyed (93%) say they have provided some kind of support to their adult children. A majority have helped them pay for college tuition or loans (71%) or helped them buy a car (53%). Many are also helping their kids pay for car and health insurance, as well as cover basic expenses like rent, utility and car payments.

Impact on their retirement goals

Only 10% of boomers admit that helping their parents has slowed down their retirement savings, while one-third (34%) feel the same about the support they’ve provided their adult children.

If the Boomers aren't digging into their retirement accounts, then where are they getting this cash to help their families? Most say they are just using their income and normal cash flow. Unfortunately, they are short changing their own retirement savings plans which will only come back to bite them when they are well into their retirement.

But the problem for many boomers is that they may not have a choice in helping their families. Health care costs for their aging parents are on the rise and what child would turn down a parents request for help.

During this time of year when many college students are graduating they are finding a shortage of jobs. This is forcing many of our children to come home. With no means of support, mom and dad have to step up with financial support and even help paying back college loan debt.

Boomers are generous and do not mind helping

Despite uncertainty around meeting their own financial goals, a majority of boomers (86%) say that if they had to do it again, they would still support their adult children financially. Meanwhile, 20% express guilt about not being able to provide financial assistance to their adult children who currently need it.

What's a parent to do? Is it our job to offer unconditional financial support which can devastate our own goals and plans? It's hard to say no to a family members request for help. Part of any discussion of financial need is first the boomer should talk openly about how any financial help would effect the boomer's plans and goals. By putting all the cards on the table the party in need of help may learn their request will cause negative repercussions down the line for the other party. Openness is the key to any for any financial discussion.

Link to original discussion at Ameriprise.com

Baby Boomers Dole Out Cash to Family Members Despite Uncertainty About Their Own Financial Future

For Many 67 Is The New 65 When It Comes To Retirement

A new poll By Gallup has found 26 percent of people expect to retire before age 65, with 27 percent expecting to retire at age 65 and 39 percent after age 65.

The percentage that expects to retire after age 65 was up from 21 percent in 2002 and 12 percent in 1995. 

The Gallup poll found an increase in the average age at which retirees actually retired -- from age 57 in 1991 to age 60 today. The average retirement age first reached 60 in 2004 and has generally held there since.

That average should increase in future years if current non-retirees delay retirement, as they say they will.

The younger non-retirees were more optimistic about being able to retire at an earlier age than those closer to retirement. Those currently age 40 and under expect to retire at age 65, compared with an expected retirement age of 68 for those 40 and older

The survey also indicated a new low of 38 percent of non-retirees who said they will have enough money to live comfortably in retirement, down slightly from 42 percent last year and 59 percent in 2002.


It's easy to conclude that the dream of retirement is going to stay just a dream for many. The majority of retiree's  in their 60's, 70's, and 80's will continue to be employed out of necessity.

Korean Baby Boomers In Worse Shape Than American Counterparts

retirement (Photo credit: 401K)

A lot has been said about growing government and household debt and its risks. In a Bank of Korea study it was found that Koreans age 50 and up are responsible for fifty percent of all consumer debt.

The baby boomer generation, which refers to people born in Korea between 1955 and 1963, is falling into the poverty trap of old age. With a people that prides itself on strong family bonds, the 50-somethings are the most squeezed financially because they have to support both their parents and children.

The Bank of Korea study reaffirms the troubles confronting the retiring baby boomer. Most of them require help because of falling home prices or those that need loans to start their own businesses in the latter years of life.

Like most retirees, Koreans struggle to work longer. People with doctoral degrees and former managers at large firms, now stand in line to work as supermarket cashiers, that pay $800 a month.

Studies indicate Koreans retire at 54 years old on the average, but work until 71 years. Little wonder the nation’s notorious old-age poverty rate of 45.1 percent is more than three times higher than the world average of 13.5 percent. (In the United States the poverty rate of the elderly is at 10 percent.) If nothing is done, the baby boomer problem will provide an added source of inter-generational conflict, adding to the unemployed youth problems in Korea.

To their credit, the government isn't ignoring the situation, but it has fallen far short of solving the problem.

The Korean government has encouraged people to work longer and take a more active roll in their retirement financial needs. These are meaningful steps, but fall far short of a fundamental remedy, which is raising the retirement age. The time has long pasted for Korea to gradually extend its current age limit of 55-58 to 60-65, as is the case in Japan and many European countries.

Businesses, particularly large companies, are the strongest opponents to a prolonged working age, mentioning the high jobless rate among the young. "You are taking away the jobs of your children,” they say. But labor experts find little direct relationship between retirement age extension and the youth unemployment rate, as most companies do not fill the void left by retirees with fresh workers. These are two different employment issues to be tackled separately.

This is the first Korean generation that supported their parents but do not expect similar services from their children. Koreans and their government are facing the same kinds of retirement funding problems that we in the U.S. face. Koreans face an unrealistic reliance on the governments efforts to supplement everyone's retirement. It's interesting that the Koreans are just as unprepared for retirement as Americans are.