Are You Planning For Your Retirement Or Are You A Retirement Ostrich?

Image by Ginger Me via FlickrIn an age of faltering retirement plans and a Social Security system that is becoming insolvent, American are waking up to a new paradigm. In the old days, your savings, Social Security, and a part time job was all you needed. Today, some Americans don't give their retirement a lot of thought. They are dependent on Social Security and don't worry. They don't pay attention to their retirement because they think Social Security will always be there to take care of them.

When you feel someone is going to take care of you, you lose the ability or need to take care of yourself. A survey sponsored by ING, reveals that 55% of Americans do not know how to achieve their retirement goal.

Americans are realizing the fact that they are responsible and accountable for providing for their retirement. The stakes are higher today, retirees are facing a perfect storm of a faltering retirement systems, rising prices, a world recession, and global instability. We can no longer bury are heads in the sand any more.

According to a survey by HSBC, there are four categories of financial preparedness:

• Disengaged non-planners (35 per cent of the population) who are doing nothing, with the primary reason being a belief that they lack the necessary income.
• Advice-seeking non-planners (25 per cent) do not have a plan but do take occasional financial advice.
• Self-guided planners (13 per cent) have a plan in place but do not seek professional advice. Tend to be younger, mid to high income and internet savvy.
• Advice-seeking planners (26 per cent) have a plan and take professional advice to help manage their finances.

The worse off and most in need of help is the "Disengaged non-planners". They definitely believe they lack the money to prepare for retirement. They live paycheck to paycheck and are on a collision course with their retirement years. For them most of their working life is concerned for the present day. By choice or lack of money they will never attain a comfortable retirement.

The "Advice-seeking non-planners" are a lot better off. They are doing something for their retirement and do take financial advice. They have retirement accounts, though smaller than needed, it is still a good start. This group is able to improve their situation and address their future needs.

The "Self-guided planners" have a plan but do things on their own without professional advice. They are more aware of their future retirement needs and are taking action. They do their own investment planning and educate themselves to the financial world.

The "Advice-seeking planners" have a plan and seek professional help to help implement it. This group is the best of the 4 groups because they have the money, knowledge, and professional help to succeed.

If you are one of those that know they need to plan and save for retirement, yet are not turning this knowledge into action, you are part of the "Ostrich Generation". People need to look around and take stock of what they need to do; they can no longer rely on the state or their employers to provide for them. It's all part of taking resposibility for yourself.

The ING survey also reveals that 48% of non-planners associate retirement with financial hardship. While 23% of planners say this is a concern. Peace of mind is a side effect of proper retirement planning

Debit Cards Vs. Credit Cards - How do They Compare?

Image by MoneyBlogNewz via FlickrGetting and staying out of debt requires you to stop using your credit cards. You are so determined to avoid credit card debt, you have cut up your credit cards and have gone to exclusively using a debit card instead. You feel good about not using the credit card anymore. All is well.

But wait are there any downsides to using your debit card as your exclusive plastic? It's time to find out what's the difference between a credit card and a debit card.

Lets say your debit card number is used for some fraudulent transactions. A bad guy buys himself a nice new Rolex with your debit card number. This transaction wipes out your bank account. Your checks bounce because there isn't enough money in your checking account. By the time you find out about the illegal charges your money is gone, you have over draft fees, your bills have late fees now because the checks bounced, and your money is gone.

What can you do about all this. Does your bank take off these extra charges.? Will they put your money back into your account? How long will all this take for your account to be put back in order? What are the responsibilities of the bank? Whats the time frame for the money being put back?

Here are a few Debit card facts:

•  With a credit card, your maximum liability guaranteed under federal law in case of fraud or errors is limited to $50 if you notify the card issuer within 60 days after the statement listing the transaction is mailed. With a debit card, the $50 liability limit expires two days after the fraud, and then your liability goes up to $500. And you don't necessarily have protection against errors.
• Banks' "zero liability" promises are voluntary and squishy; they're not the law and they're not immediate.
• If you use a debit card and a fraudulent charge or a billing error causes other payments to bounce (like your mortgage or cell phone payment), you will be hit with hefty overdraft fees and will probably have difficulty getting the fees refunded.
• Credit cards offer protection under the federal Fair Credit Billing Act, meaning you can refuse to pay for products or services that you didn't get or are defective. There's no such protection with a debit card.
• Debit card authorizations can tie up your money. A merchant such as a gas station or hotel may put a three-day hold on more money than you're spending. You won't be able to use that money until the hold ends. That could cause other payments to bounce even though you have enough money in your account.
• If you buy something with a credit card and the merchant makes a mistake, say by billing you twice, the bank will fix it.
• With a debit card, however, banks are really sketchy about what protection they offer if the merchant goofs. You're protected against "unauthorized use," but many banks don't consider errors to be "unauthorized use." They say because you authorized the merchant to debit your checking account, the matter is a "billing dispute" that you need to work out with the merchant.
• If you do have a problem with a credit card transaction, you don't have to pay the amount in dispute while it's being investigated. With a debit card, the money is already gone.

If money is stolen from your checking account by the use a stolen debit card number it can take up to 2 weeks to be put back. This is frustrating for the consumer and this would not happen with a credit card.

But if it is your choice to use a debit card and not a credit card. To be on the safe side it's not smart to have a debit card linked with an account that has a lot of money in it. Or get just an ATM card with no charge card features.

Memorial Day - The Day We Remember Our Fallen Soldiers

Image via Wikipedia

Today, Memorial Day, we take time to remember the soldiers that gave the ultimate sacrifice in American wars. Millions of families will gather together to eat a meal and spend some time together. Yet many families will have an empty chair at their table because their loved one sacrificed for our country. We can 't ever forget these men and women who left friends and family behind and never returned. Let's also keep in our hearts and prayers the families that must go on in anguish because of their loss.


Here are 10 facts about the last Monday in May.

10. Memorial Day was originally known as Decoration Day.

9. It was first widely observed on May 30, 1868.

8. Originally, the day was to honor soldiers killed in the Civil War.

7. After World War I, people began to observe and honor those who were killed in all of America's wars.

6. The day was declared a national holiday by Congress in 1971.

5. The birthplace of Memorial Day is Waterloo, New York. The town first celebrated the day on May 5, 1866, by closing businesses, and residents decorated soldiers' graves with flowers.

4. Waterloo was declared Memorial Day's birthplace by President Lyndon Johnson.

3. About 5,000 people attend the Memorial Day ceremony every year at Arlington National Cemetery.

2. Some southern states set aside a special day for honoring the Confederate dead. It's known as (surprise) Confederate Memorial Day.

1. On Memorial Day, a wreath is typically laid at the Tomb of the Unknown Soldier by the president or vice president.


A video tribute to the fallen heroes:

Today we will be enjoying the freedom that has been paid for in the blood of our fallen sons and daughters. Let's remember them today and everyday.

A Flood Of Financial Risk For Homeowners

A guest post by Mike Bowman of TheQuarterRoll.com

When you review your monthly budget you may be putting money aside for items such as groceries, rent, clothing, and your gym membership, but have you ever listed flood damage on your budget? According to a spring 2010 edition of the Western Pennsylvania AAA Motorist magazine, flooding is the most prevalent natural disaster and you are 3 times more likely to be affected by flooding then fire. We certainly hear about the overwhelming flooding troubles in Tennessee, Kentucky, and Mississippi, but flooding comes in all sorts of intensities.

Except for vehicles with "comprehensive" insurance in their policy, flood damage is not part of any typical insurance coverage, and everyone is at some level of risk of financial loss due to flood damage. You can be the most financially conservative person, but one flash flood could severely harm you, financially speaking, when you consider that the average flood damage claim is $33,000.00. Most people will not have that much money set aside, even before a natural disaster hits. Also, nearly all disaster relief money is considered a loan and must be paid back to the issuing authority. Flood insurance, purchased through the National Flood Insurance Program is one of the best ways to insure yourself against the financial risk that flooding presents.

Why should you be concerned about flooding? Here are facts found from FEMA's and the CDC's websites:

-Only flood insurance will cover flood damage.

-25% of all flooding claims come from moderate to low risk areas.

-You do not need to be next to a body of water for flooding to occur on your property.

-Melting snow / poor drainage / deteriorating natural or man-made barriers are just a few of the least expected sources of flooding.

-All 50 states have been affected by flooding.

-While risks vary, we all live in a flood zone, according to www.FloodSmart.gov.


Considering buying flood insurance? Keep an eye on what is going on with this program. Flood insurance is issued by the National Flood Insurance Program and funding must be approved by Congress. Currently, funding for the National Flood Insurance Program is scheduled to stop in September 2011.

From the Insurance Information Institute

In the absence of any legislative agreement between the House and the Senate on funding the program for the long term, the NFIP was reauthorized for short periods of time under a series of continuing resolutions that extended funding for many different programs. After allowing the program to lapse four times, during which new policies could not be issued, leaving homeowners without the option of buying coverage and delaying thousands of real estate closing per day in flood-prone regions, in September 2010, as the last extension was close to its expiration date, both the House and the Senate extended the program for one year to September 30, 2011. Insurers hope that during this longer extension period Congress will take time to make significant and long-term changes in the program. http://www.iii.org/issues_updates/flood-insurance.html

About The Quarter Roll

Mike Bowman writes for TheQuarterRoll.com, whose website and magazine help readers get a quarter more for every dollar by providing personal finance tips, advice, and stories in an easy to understand and entertaining format. The tips and stories found in TheQuarterRoll.com are designed to give readers the ability to earn more, save more, and get more value for their money.