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In The Morning News

Posted on 05/21/2008 by |Archived Contributor | Comments

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AP: New Federal Budget Ignores Cost Ignores Challenges
“Democrats controlling Congress unveiled an election-year fiscal blueprint Tuesday that puts the federal budget mostly on autopilot, leaving the winner of November’s presidential election with a set of enormous challenges.” The budget “contains a host of shaky assumptions” and “does nothing to address the unsustainable growth of federal benefit programs.” But “even GOP opponents of the plan gave Democrats grudging praise for producing a budget in a difficult election-year environment, even though disagree with what’s in it.”
USA Today: Inflation Report Sparks Concerns
“Stocks, which seemed poised for an upside breakout a day earlier, took a nose dive Tuesday, raising fears that the 10-week-old rally could turn out to be a head fake.
Dragging down stocks was another record close for crude oil, which jumped $2.02 to $129.07 a barrel. Oil tycoon T. Boone Pickens, in a CNBC interview, predicted crude would hit $150 by the end of the year.”

US News And World Report: Target Funds Can Vary Widely In Assets
Emily Brandon writes, “Target-date retirement funds are designed to automatically shift investors’ portfolios to less risky assets as they age.” Yet the “‘age appropriate’ level of risk is open to interpretation. A recent analysis of target-date funds by consulting firm Watson Wyatt found that allocations to equities for employees 10 years from retirement varied from 40 percent to 80 percent among target-date funds in 2006,” and a Morningstar Direct “report found that some funds for employees expecting to retire in 2010 still have almost 70 percent of assets in equities.”