ShAARP Session: Observations from AARP

Yes, really. Yesterday, AARP kicked off its Saving Challenge, an online forum where folks will share stories of cheap skating, deals they've found and learning about creative and, yes, fun ways to cut down your spending costs.

From Nov. 10 - Dec 31, savings expert Jeff Yeager will not only be chiming in on the online conversation to give you financial advice, but will be posing a "Weekly Challenge" for folks to send in their comments, photos and videos so he can choose winners each week and give out some great prizes.

Check out more here and here for more articles and resources on how to save better.

Elizabeth Pope has a great piece on AARP.org on how to avoid very easily made mistakes when searching for work. As we already know, too many older Americans are out of work and desperately seeking employment during these tough times, but are also susceptible to making simple errors that can cost them a new job. A new study by the MetLife Mature Market Institute says so:

"'The harsh truth is, nobody cares about your experience,' says workplace expert David DeLong, author of the report 'Buddy, Can You Spare a Job?' 'In a performance-driven marketplace, you have to frame your experience and show how you can solve a company's problems. You can't expect the potential employer to figure that out.'

The study, released Oct. 13, also found that older job seekers routinely overestimate their computer skills, fail to seek extra training, and may feel ambivalent about returning to work in spite of financial need. If potential employers sense that ambivalence in an interview, it can kill any chances of a hire."

Read up and learn how to avoid this from happening!

I'm sure you've been hearing a lot of about the fact that there's no COLA for Social Security recipients this year (and maybe the next year). And there's been an equal amount of debate about how to address that, or if it even should be addressed.

The Insured Retirement Institute (IRI) released a poll earlier today showing that the vast majority of Americans aged 65+ believe that the lack of a COLA in 2010 will adversely affect their finances.

Incredibly, 71 percent of seniors said that their financial situation will be negatively impacted because their Social Security checks will not be increasing next year. With 78 percent of respondents being retired and out of the workforce, they are more likely to be living on a fixed income, and are reliant on Social Security as a primary source of retirement income.

The results of the survey not only underscore the unfortunate prominence Social Security plays in current retirement planning, but also demonstrates the very tangible impact the down market will have on recipients next year.

Now more than ever we're seeing folks rethinking their retirement strategy - looking to build a comprehensive plan that could include everything from Social Security, personal savings and insured retirement strategies which we're hearing more about.

What about you? Are you going to be impacted by the no COLA? What are you looking into to make sure you have enough money for retirement?

If this isn't a wake-up call, I don't know what is.

While the recession has forced many Americans to delay retirement, one of the hardest hit are those already retired in search of work. There are 6.6 million Americans age 65 or older who have lost their jobs in the recession, 61% more than the 4.1 million unemployed in this age group in 2000, The New York Times reports.

This is five times the number of people in this age bracket who were unemployed in the Great Depression. Making matters worse, many older Americans still owe money on their mortgages.

Check out AARP.org's section on work to get job tips and find out more about issues concerning older workers.

We received a clarion call a few years ago when we discovered that 69% of our members were still providing some level of financial support to their adult children. We realized that we had both an obligation and an opportunity to get more involved and help young adults (aged 18-34 years) understand the role that money plays throughout every stage of their lives. With that said, we have two very important developments on this front:

• This morning, we issued a report that illustrates how pervasive financial challenges are in almost every aspect of young adults' lives, including their relationships and how they use the Internet. From our prior research and what we'd heard from our members, we knew this was a serious situation, but this report shows how deeply these worries are affecting this generation.




• To help young adults confront these challenges, we are announcing a new AARP-sponsored project called LifeTuner.org, a free, online personal finance community for young adults. LifeTuner fills a major need in the financial landscape: an unbiased, inclusive resource where young adults can get free expert advice and share stories with their peers completely free of any commercial jargon.

Our research has shown that while young adults freely admit that they are worried about their financial future and that money often causes friction with their families, partners and friends, they are still reluctant to ask for help because money remains a taboo subject for the most part. Our hope is that LifeTuner will help eradicate those social boundaries and inspire a healthy, helpful dialogue about money management. Additionally, LifeTuner also provides a series of tools and calculators designed to help balance budgets, itemize spending and pay down debt.

We need your help in order to make this mission and this project a success. One of the features of LifeTuner is the "Been There" forum, a place where AARP members can share their life lessons, experiences and finance tips with LifeTuner users. Not only does this offer members a great platform for giving back, but it will also help encourage an intergenerational dialogue around finances, career and other money-related life concerns; something that is sorely lacking in this country.

Young adults play a massive role in the financial future of the United States and the more we can do to make them realize the gravity of their situation, the better we'll all be because of it. The tagline for LifeTuner is 'Your life is your greatest currency' and our goal is to use LifeTuner to help young adults realize this fact.

Click here to see key findings or to download a full copy of the report or visit LifeTuner.org for more information.

AARP Magazine has a great piece about the financial complexities involving new marriages later in life.

Often by middle age, many folks have houses, mortgages, children, debt and a ton of other financial expenses that need to be taken into account if new relationships are formed. The magazine not only talks about these difficulties but takes an actual couple planning to get married and gives us a step by step (and video) giving us an idea of how we can handle our finances when marriages result in merges of expenses.

Have your own question about money? You can also ask the experts in the magazine's Money Makeover series.

The recurring theme of older works and unemployment was in the news again this weekend. This one from the New York Times says that there are more Americans 65 and over working than any time in history: 6.6 million. And in addition to those 6.6 million in the workforce, another 500,000 seniors want to work but cannot find work. The article really delves deep into the dire situation.

"That so many of them are still trying to find work shows how bad the economic situation is. A lot of people normally give up at that age," says AARP's legislative policy director, David Certner, in the article.

The article also gives statistics from AARP's Public Policy Institute - such as the fact that unemployed older workers, on average, take 40 percent longer than the general unemployed to find work -- 36.5 weeks on average.

In addition, the issue of age discrimination is discussed, a topic that AARP has been talking about a lot lately, backing the proposed legislation, Protecting Older Workers Against Discrimination Act.

It's a very informative article that hits home on a lot of key points on unemployment and older workers - check it out.

Check out President Obama's speech to the financial industry on Tuesday, calling on them to support health care reform.

Check out Nancy LeaMond's (Executive Vice President at AARP) opinion piece on NPR.org right now.

Nancy makes the case for why lawmakers need to provide emergency relief for older Americans who find themselves on Social Security and won't be receiving a COLA this year.

"As Congress looks for solutions to help us all weather this recession, older Americans must not be overlooked. AARP believes that extending last year's $250 emergency relief is simply the right and responsible thing for Washington lawmakers to do, and we will work with members of Congress from both sides of the aisle to find a fiscally responsible way to make it happen."

Check out this great new piece by AARP's Michael Zielenziger on how the rising cost of health care is costing older workers their pay wages, and even their jobs:

"According to the Kaiser study, health insurance premiums across America have climbed 131 percent since 1999--far more rapidly than workers' wages, which rose 38 percent, or inflation, which rose 28 percent in the same period.

Only 60 percent of U.S. firms offer health benefits to any of their workers, the survey reports. Among those firms, 21 percent said they reduced health benefits or increased cost-sharing because of the economic downturn, while 15 percent reported they increased the worker's share of the premium.

Now, more workers with health insurance are paying higher deductibles when they receive medical care, the Kaiser study says. In 2006, only 10 percent of workers had to pay the first $1,000 of their medical bills before receiving insurance benefits. Today, 22 percent of workers must pay at least $1,000 out of pocket each year before their insurance starts to pay a portion of their medical bills. A demand for plans with higher deductibles frequently comes from smaller firms, with less than 200 workers."

The multiple first-hand accounts of small business employers serves as a reality check of the choices they're faced with. Check out the entire piece here.

The big news around AARP this Friday is all about the announcement that for the first time since 1975, people who rely on Social Security will not receive a cost of living adjustment, because consumer prices have remained stagnant in this economic climate. The Washington Post covers the story here - and AARP is mentioned in the article, too.

AARP released a statement on Wednesday contending that the government should provide emergency relief to older Americans by way of a $250 one time payment. The reasoning? Seniors need to spend more money on healthcare than younger generations - and the cost of health care has been increasing rapidly over consumer prices. "Without relief, millions of older Americans will be unable to afford skyrocketing health care and prescription drug costs, as well as other basic necessities," said AARP COO Tom Nelson in the statement.

AARP was also mentioned in all of these stories on the COLA announcement: get all the facts here: U.S. News and World Report, Bloomberg, AP, and Washington Times.

Other News of Interest...
I thought this blog post from CNBC was a good one - and might be useful to you if you're planning for your retirement. The author lists five common mistakes that you may identify with - from listening to the wrong people to choosing the wrong pension. Check it out for his advice on making the decision to retire stress-free!

Last week, we told you where AARP stands on the Social Security COLA issue - that is, encouraging leaders on the Hill to provide a $250 in emergency relief to the older Americans who are struggling in the economic climate. Yesterday, a story ran in U.S. News and World Report on the letter that CEO Barry Rand wrote to those leaders - check out the story here.

As AARP Director of Financial Security Cristina Martin Firvida says in the article, one thing is for sure - the sense of economic security has drastically changed for Americans who have suffered losses in the stock market and their 401(k)s since just last year.

In health care reform news in America - the Congressional Budget Office has issued the long-awaited report and have found that the Baucus bill would actually reduce the deficit over the next decade. It seems hard to fathom with a hefty price tag of $892 billion over the next ten years - but the reduced deficit would come thanks to trims in Medicare spending and new taxes. Read all about the report and the optimism that a bill will be passed here in the Wall Street Journal or here in the New York Times.

And on a lighter note, another reminder about this year's AARP Member Event - Vegas@50+! It's quickly approaching...only two weeks away! Read anther preview of the event here and find out everything you need to know from AARP's website.

Happy Monday!

Yesterday, The New York Times ran a story on the heated debate among AARP's generation gap, focusing on a dinner gathering of AARP members that took place in Wisconsin last week. That dinner was just one of 37 in Wisconsin alone over the past six weeks. AARP's intensive campaign to address the concerns of its older members has paid off, according to the article, with support for an overhaul growing as the campaign kicked into high gear over the past few months.

The article portrays the concerns of a wide range of AARP members, and also quotes David Certner, director of legislative policy for AARP and Nancy LeaMond, executive vice president of AARP.

In other news, an interesting story in the Chicago Tribune advises retirees to consider taxes when thinking of relocating in retirement. It's worth checking out. The author says, "No matter where you live, your federal taxes will be about the same. But you'd be amazed at how much your state and local tax burden may vary."

Finally, an AP story that got a lot of pickup over the weekend explained the waiver of the government required withdrawal from IRAs and employee-sponsored 401(k)s and profit sharing plans. The requirement is that once a person reaches 70 ½ years of age, they must withdraw money (called required minimum distributions) - but a law passed last year temporarily lifted that requirement to prevent retirees from having to withdraw from accounts that were hit hard by the stock market. It's temporary relief - but it's relief!

Yesterday, AARP CEO A. Barry Rand sent a letter to leaders on the Hill, encouraging them to provide $250 in emergency relief to millions of older Americans who are struggling in the current tough economic climate. AARP's support for this measure comes in response to the expected announcement that there will be no Social Security Cost of Live Adjustment (COLA) in 2010.

Here's an excerpt from the letter from Rand:

"Seniors spend a disproportionate share of their income (about 30 percent on average) on health care costs, which continue to increase well above the rate of overall inflation. The combination of higher health care costs, including prescription drug prices, and a stagnant Social Security benefit is particularly troubling and will result in lower net Social Security payments to millions of America's seniors in January 2010."

You can read the entire letter here. We'll certainly stay tuned to see what legislators decide to do for America's seniors on this issue.

In today's AARP News...

U.S. News and World Report highlighted results from an AARP survey that showed that the recession is really taking a toll on older workers in America. With a need for cash now, many people have stopped contributing to their 401(k)s and IRAs. Read the entire article here.

And don't forget about this year's member event - Vegas@50+. AARP is continuing to hype up our star-studded, three-day event taking place October 22-24. We'll have plenty more news on the event as it nears, but for now check out this preview at PlanetEye Traveler.

Have a great weekend!

USA Today featured a big story today on a survey from AARP that showed that Americans aged 45-64 are worried about having enough money for retirement and continued difficulty in paying for basic items such as food. Check out the story for all the startling statistics - there's a lot of anxiety out there about money these days.

In what some are calling a serious setback for President Obama, the Senate Finance Committee voted against the public health care option in Sen. Max Baucus' health care reform bill.

A Roll Call article reports that the White House has been "secretly drafting its own health care legislation that it may unveil at some point during the debate if officials believe it would help secure passage of a bill." Maybe that bill is an answer to the squabbling Democrats who are looking to the President to be the final arbitrator of the public option.

In retirement news, we are edging closer to January 2010, when the law enacted in 2005 - which will let anyone with a qualified retirement plan, such as a traditional IRA or 401(k) left behind at a former employer, shift those funds into a Roth - goes into effect. However, the WSJ reports that many people are confused about how Roth IRAs work. Check out the statistics - only 7% of survey respondents said they will be converting to Roth come January... I bet that number would be a lot higher if more people understood how they worked! Do you understand Roth IRAs? How did you go about learning the ropes?

You may have heard the term "public option" tossed around lately in the same breath as "health care reform.

If you're confused about what that means, be sure to check out and forward this valuable explanation from Nancy-Ann DeParle, White House Office of Health Reform, who appeared on AARP's Prime Time Radio this week.

We thought we'd fill you in on what AARP Executive Vice President, Nancy LeaMond, had to say in response to President Obama's speech today on Wall Street. You can read the full release here, but below is a snippet:

"Older Americans saw their retirement savings decimated by the economic crisis. AARP has long maintained that consumers must be armed with as much information as possible so that they can make sound financial decisions. In a world where individuals must plan for their own financial futures, information is imperative and greater protections are needed in the marketplace.

"AARP supports the creation of a Consumer Financial Protection Agency that would advocate on behalf of consumers' needs in the financial marketplace. It is important that individuals know they are buying products and getting financial advice from industry certified advisors. It is important that when individuals buy a product that has been recommended to them it is the right product for their needs.

"In a recent AARP survey, 95 percent of people 25 years and older believe in having investment services firms increase their transparency around the costs, risks and benefits of all financial products they offer. The same number of individuals believe companies that manage 401(k) plans should be required to clearly explain their fees on participant's annual statements. AARP has long advocated for transparency in 401(k) plans, having known that the majority of investors are unaware of the fees associated with their retirement savings."

It looks like the Car Allowance Rebate System (CARS) or otherwise known as "Cash for Clunkers" has launched this week.

For those who don't know, CARS basically does this: the government buys back old cars (which get a combined average mileage of 18 miles a gallon or less) from folks to scrap, and the seller gets $4,500 toward the purchase or lease of a new fuel-efficient car. Not a bad deal to help the environment, right? Via the New York Times blog Wheels:

The National Highway Transportation Safety Administration said it would eventually provide "a comprehensive list of new vehicles that meet the requirements of the program." Until then, you can use the table found here to look up the fuel economy of all vehicles dating to 1984, the earliest model-year vehicle eligible for trade-in.

Not every dealer is expected to participate in CARS. Those that do must register to be part of the program, and registrations may take a day or so to certify. So the agency recommends that consumers first call a dealer to see if it's participating (and has been certified) before going to the dealership.

The program will run until Nov. 1 or when the $1 billion that Congress has allotted to the program runs out. And consumers can expect automakers to add their own incentives on top of the federal rebates.

Check out this AARP article for more info on Cash for Clunkers and whether it's the right option for you.

USA Today had an article recently on a new study showing that 80% of couples disagree on retirement, such as what age to retire, whether they'll work in retirement or where they'll move to retire.

While the economic recession surely can't help, experts advise to be open and communicative about retirement plans, which is hard when often one partner is responsible for the finances of the household. The other thing to do is make sure both people are aware and knowledgeable of their expenses and investments. After all, only 15% of people said they were confident one partner could handle family finances if the other died.

The piece also gives some basic steps you can take when beginning to talk about retirement with your honey. Check it out.

Via Wallet Pop.

No one wants to experience a major life crisis such as job loss, divorce, death of a spouse or serious illness or disability, but the reality is that most of us will. According to a recent survey by AARP Financial, nearly 60% of Americans age 40 to 79 already have-- and in vast majority of cases, the event had a significant impact on their finances.

And no wonder. Life crises stir up emotions and can leave many of us feeling vulnerable, distracted and confused. Financial decisions are tough enough. Add a whirlwind of emotions and additional caretaking responsibilities and it's potentially overwhelming.

What if you suddenly had a life crisis? Would you survive financially? Would you know what to do? For tips on where to turn for financial guidance during a life crisis, visit this article from AARP The Magazine.

A week of scam information - not necessarily uplifting, but very important and always helpful. If you didn't tune in everyday, here's a recap of everything we talked about!

Spot a Scam
The $75,000 Lunch
Ponzi Schemes
Free Lunch Monitor Report: From The Trenches
Questions To Ask Investment Advisors?

Investors frequently get invited to lunch seminars that promise to educate them about investing strategies or managing money in retirement--often with an expensive meal provided at no cost. Just because someone buys you breakfast, lunch or dinner doesn't mean you have to buy what they are saying--or selling.

Invitations to Free Lunch Seminars can be tempting. But before you accept, make sure ask a lot of questions such as:

• What are the risks of this investment?
• Will my investment be tied up? If so, for how long?
• What happens if I decide to sell or cash in my investment? Are there surrender charges or other fees?
• What are your credentials?
• Are you licensed to sell this investment?
• Is this investment product registered?

A wise and safe investor always asks as many questions as needed to understand the investment. To learn other helpful hints go here.

Len Bach and his wife are serious about fraud. Serious about making sure that it doesn't happen to you, or anyone you know! Here's a guest blog from Len about his experience as a Free Lunch Monitor:

As longtime AARP Volunteers who make formal presentations on general investment fraud(s), getting involved in the Free Lunch Monitor (FLM) program was quite natural for my wife and me. We are also recent retirees concerned about protecting and growing our retirement savings that took a lifetime to build. A free meal and possibly finding new trustworthy avenues for investment or retirement planning was quite appealing.

We have found that the Free Lunch offers share a number of common traits such as good food and soft sales pitches, but also almost always trade on senior fears about estate issues, medical catastrophes, running out of money, probate, legal and IRS concerns. The sponsors want you to leave the meal site worried about your future. We always follow up with the firms with a second meeting and that is where we have found the hitch in almost every pitch. High commission recommendations abound on legitimate investments, outlandish promises of high returns and low risk are frequent without any formal prospectus being presented, suitability to your specific needs are most often ignored, and fine print in offered agreements can subject you to severe penalties and to unreasonable flexibility.

My wife and I will continue to voluntarily attend these free meal senior sales pitches and to report our findings to AARP and recommend that others do as well. A good free meal is rewarding, but it is uncovering fraud and abuse that we have discovered to be the real dividend for our time and effort.

Recently we have heard about the biggest ponzi schemes in history. Bernard Madoff has become a household name but these types of scams have been happening for years. In fact, they are named after Charles Ponzi who envisioned and created a massive money making scheme in the early 1920s.

Here's how they work: Investors are lured with promises of unique opportunities producing high returns, and for awhile they may get those returns. But what they don't know is that their money is not really being invested in anything at all. The "interest" they receive is money being paid in by later investors. As long as more investors sign on, which they will because of word-of-mouth advertising about the "great returns," everything seems fine. But since no real investments are being made, it can't last long and ultimately collapses.

So what should you do to make sure you don't get lured into one of these things? Do your research and ask questions! A true financial professional with legitimate investment opportunities will not only welcome your questions but they'll have great answers to them as well. Here's some things to keep in mind while considering an investment opportunity:

• Check the product and the sales person. To make sure the product is registered and the person is licensed contact your state securities regulator. Visit www.nasaa.org.
• Watch out for promises of high returns over a short term.
• Don't be pressured to act quickly. Be ready to say, "I'm not making a decision today."

And like I've been saying all week...this is exactly why AARP and NASAA partnered up to create the Free Lunch Monitor program. Check it out and protect yourself and your community.

"We were invited to a seminar where there were two main speakers. They talked about different kinds of investments to have an extra income for retirement and it was interesting. After a couple of days, they made an appointment with me to visit me in my home."

That was the beginning of a tragic story for Luis and Manuela Corona, a couple in Florida. Looking for a way to increase their retirement savings they attended a free lunch investment seminar. Attending this educational seminar led to friendly visits and ultimately pressure to invest in viaticals, a product that they knew very little about.

You can watch their whole story here...and also check out more about ponzi schemes, variable annuities, and more.

Many times investment opportunities come with a "free" lunch that really isn't free at all. That's why AARP and NASAA launched the Free Lunch Monitor program. You can learn the red flags for fraudulent investment schemes and protect yourself and other investors while you're at it.

This is the first in a week-long series of posts here on Shaarp Session that will focus on scams. Everything from spotting a scam, to preventing scams in your community will be covered, and a ton of resources and information will be shared. Let us know what you think!

It seems like every week offers and invitations to invest in a deal of a lifetime come knocking on our doors. During troubled economic times these offers become more tempting but that is precisely why we need to be even more cautious. There are no short cuts to getting rich when it comes to seriously and wisely investing for your future.

Here are some signs you should keep in mind to help detect if a deal sounds too good to be true...so think twice or better yet, run if you hear these phrases:

• "there's no risk..."
• "profit is guaranteed..."
• "you cannot afford to miss this deal..."
• "this offer is only good for today"
• "make the check out to me"

Many times the deals come with a "free" lunch that really isn't free at all. That's why AARP and NASAA launched the Free Lunch Monitor program. Learn how you can become a monitor and help make the marketplace safer for all investors.

To find out about other signs of a scam and get tips on how to protect yourself from an investment scam visit our investment fraud pages.

The New York Times blog, Room for Debate, has a great round-up of experts' thoughts on why and how older workers are struggling to get jobs during the recession. It's no big news that older adults have had difficulties (and have even been discriminated against) in the workforce way before the economy began to falter, but things are particularly hard now.

Between the idea that bosses don't want employees older and more experienced than them, to the fact that older workers cost more to a company salary-wise, to the theory that your productivity decreases as you age, these folks have a range of different reasons why older workers are having such a hard time. (Not to mention the comments section has blown up there as well.) Make sure to check it out.

On the upside, check out AARP's Best Employers for Workers Over 50 - because some folks know how valuable you are!

AP has a news story on how older workers are not only struggling to get a paycheck in this tough times, but searching the "help wanted" ads for the first time in their careers. Check it out.

If you're looking for a job, or want some job hunting advice check out Bob Skladany's columns on AARP.org or our Work pages.

AARP COO Thomas Nelson penned a "Where We Stand" column for Bulletin Today and we wanted to excerpt a bit for you since the Senate's debating the Serve America Act today and expected to vote this week.

"Even as Congress is focusing on financial practices that have badly hurt our economy, the House and Senate are acting on legislation that speaks to what is best about America: a bill to substantially expand opportunities for community and volunteer service...

We've heard a great deal lately about toxic assets. By approving this legislation, Congress and the President can mobilize a very different kind of asset, one found in abundance in every community: the American spirit of service and generosity.

We know from talking to our members and from our survey research that boomers and older Americans stand ready to do more...

AARP urges the Senate to "create the good" by passing national service legislation this week. "

Call your Senators and ask them to support the Serve America Act today. And to find ideas, opportunities and a community of others who want to do more to make a difference, visit www.AARP.org/CreateTheGood.

You know those catchy commercials where a young guy sings about how his girlfriend's bad credit has them living in her parent's basement? The commercial touts free credit reports and encourages you to visit their Web site to check it out. Well, the Federal Trade Commission is getting the word out that the service these commercials talk about aren't free at all. You have to buy another service to get the credit reports for "free."

So what's a person to do? Check out AnnualCreditReport.com - the only place you can get truly free credit reports according to the FTC - - and pass around their spoof of the popular commercials to get the word out!

Know someone over 60 who is changing the world? They could win $100,000 for their passion. Nominate them for the Purpose Prize.

The Purpose Prize awards up to $100,000 to social innovators over 60 who are creating new ways to solve pressing social issues - from education to health care, poverty to global warming. Winners are finding purpose in an encore career and putting their experience to work for the greater good.

Click Here for stories on past winners and the nomination form.

Good luck!

After signing the federal stimulus bill into law last week, the White House has convened a Fiscal Responsibility Summit. AARP's CEO Bill Novelli is attending to represent AARP's 40 million members. Here's what he had to say about today's importance:

This is great. The Columbus Dispatch has a feature that talks about the struggle older people have finding jobs during this recession, and offers a ton of sites that specifically cater to older folks trying to find work. RetiredBrains.com is one of them, which gives these tips:

• Register with temp companies. "They don't care about age but are more interested in your skills and experience," Koff says.
• Practice your interview. You might not have had a job interview in quite a while, so do a practice interview with an employer you're not that interested in working for.
• Rework the resume. Don't hide your age. Emphasize accomplishments, experience and the currency of your skills.

And these are just a few of many. Check out the sites provided in the article for more info as well as AARP's job-posting board and their list of online job resources.

While it’s been quite a dramatic year, older Americans have had many victories to celebrate as 2008 comes to an end. Here are a few reasons we have to celebrate:

• The passage of the economic stimulus package, which will extend stimulus support to about 20 million Americans who depend on Social Security.
• Our Keep Medicare Fair campaign came out victorious when Congress overrode President Bush’s veto of the Medicare reform bill.
• Most recently, a bill that would waive penalties for retirees for mandatory withdrawals in 2009 passed the House and the Senate, now awaiting Bush’s signature.

With that being said, there’s obviously a lot of nervousness about larger looming problems for the new year, such as the future of the economy and the health care crisis. With the new Obama administration to focus on change for this country, what should be America’s resolutions for 2009? More specifically, what issue means the most to you? Take our poll and let’s open up the discussion in comments!

While we've been discussing the various ways in which the economic crisis has been effecting our retirement funds, our jobs, and our financial security, we haven't really delved into the way in which these times are effecting our emotions. In the other words, is the stress of it all getting the best of us?

AARP.org has a great piece, "Losing Control: Why Money Worries Are Keeping Us Up at Night", that discusses the ways in which the economy has our stress levels sky-high:

According to an American Psychological Association (APA) poll released in October, the miserable economy "significantly stressed" a whopping 80 percent of Americans in September, up from 66 percent in April. The survey compared the stress levels of more than 2,500 adults nationwide.

Among the respondents, women reportedly felt more anguish about declining economic conditions than men did--84 percent compared with 75 percent. And those over age 63 reported more stress (86 percent) than boomers ages 44 to 62 (83 percent) and those ages 18 to 29 (71 percent). However, when it came to day-to-day pocketbook issues, the youngest age group (83 percent) reported being more worried than boomers (79 percent) and those 63-plus (73 percent).

So if you're feeling anxiety, it may be time to start thinking about ways to reduce the stress in your life. My best outlet is yoga - the perfect zen body and mind workout. How do you de-stress?

Looks like my pithy commentary about Starbucks woes got more than a few folks fired up! I, like a few of you who commented earlier, count myself among the lucky. I have another 30 years more in the workforce and am taking care of myself, not a family or even my parents...yet.

I think the most important point here, is that we're all feeling the pain...in our own ways. My mom feels it when she goes to fill up the gas tank. My father feels it when his company (where he's worked for 30 years) announces yet another round of lay-offs or buy-out opportunities.

From the comments posted, everyone's feeling the pinch everywhere you can possibly think of spending money. One reader, Peggy, left a note that struck a chord:

People having to move in with other family members or even strangers just to try to make ends meet. I for one just moved in with my daughter and grandkids hoping to be able to survive. Between the high cost of rent (even though the housing has gone down) and going to the grocrey store there goes everything. Forget trying to save a dime for retirement. Where oh where is this world going to.

So what now? If you could tell President-elect Obama to do one thing in his first 100 days...what would you tell him to do?

I went for my usual before work Starbucks run this morning and while I was standing in line I had a moment of pause. Do I really need a muffin? Aside from trying to be healthier, is it really worth the $1.65? Maybe I should get a grande instead of a venti?

Seems like these days every where I go I'm taking an extra moment to think about my purchases. I'm not planning my retirement, or even working toward buying a home right now...I'm just trying to make my dollar stretch a little further so I can see a movie this weekend!

Where are you feeling the pinch the most? Is it your utility bills? Or maybe at the grocery store (I feel your pain there!)? Share with us and I'll pull some of your stories up for highlights later today and tomorrow!

I found this Bulletin Today article really interesting, and one that applies to many more people than we think. The title, "Are Your Risking You Own Retirement If You Give Financial Help to an Adult Child?"

While some parents may think that they must always support their children no matter what, but this piece may give you some questions to think about. A couple of example:

• Was it a situation that your child couldn't control? Or are you paying to help him recover faster from financial carelessness? The most valuable help you could give toward becoming financially responsible may be not to help.
• Is it an investment that will pay off eventually in financial independence for your child? As they say: That's priceless.

And if you're a parent with a younger child, I find it incredibly important to teach your children about finance and how to manage your money, it could be an enormous tool for them as they grow up. Not to mention, the current state of our economy is all the more reason to do it!

AARP sat down not too long ago to talk with U.S. Treasury Secretary Henry Paulson, where he told them rather than focusing on the second economic stimulus, his efforts were directed towards making efforts to stable world markets and the U.S. financial system. Here's some of his thoughts:

"We have not done as good a job at communicating as we should have . . . Our objective has never been to save a particular financial institution, but to serve the public interest. "Stability in the financial system is a social good. If we don't have confidence in the financial system and our markets, the people who are the losers are the American people. And the biggest losers are those who are retired and on fixed incomes and those who are working hard to make ends meet. It's a crushing burden."

Indeed it is. Make sure to check out the whole feature.

In a recent article from the Associated Press, Howard Gruenspecht, the acting chief of the Energy Information Administration, warned of the increase in cost to heat American homes this winter as compared to only a year ago. Depending on location and fuel type, some families can expect to pay more than a 20 percent increase over last winter. And, although oil prices are dropping, we won't really feel those effects until early 2009. Because you can't wait until February to purchase your oil, there are other energy saving tactics that can help you save money all year long.

It's getting cold outside, so here are some ways you can save a few bucks and become more energy efficient:

Install a programmable thermostat. You can save up to $180 a year by installing a programmable thermostat that controls the temperature of your home while you're at work or asleep.

Choose ENERGY STAR appliances. Save money and the environment by replacing standard model appliances with ones that are ENERGY STAR-qualified. ENERGY STAR-qualified appliances use 10-50 percent less energy and water than standard models.

Update your windows. ENERGY STAR-qualified windows can reduce your energy costs by $126-$465 per year when replacing single-pane windows or $27-$111 a year when replacing double-pane, clear glass windows.

Install dimmer switches and motion detectors. Dim the lights by 25 percent and save an average of 15 percent a year on energy costs, and extend the bulb life by four times.

Install a ceiling fan - and learn to correctly rotate it. Ceiling fans aren't just for when it's hot outside.

Install insulation. According to the Department of Energy, the leading cause of energy waste in the home is inadequate insulation and air leakage.

You can check your local home improvement store like Home Depot for more tips and products and also look to the Department of Energy for more information about how you can become more energy efficient.

Hey, it's tough out there. It's even tougher with unemployment rising and all these companies going under, being bought, merging...you name it. If you find yourself in the position of having to re-start your career check out Bob Skladany's article taking a look at things you should do when you're laid off.

Hardworking Americans watching the activities of the House Monday afternoon couldn't have liked what they saw. That's because the chamber rejected a bill aimed at stabilizing our financial markets and ensuring that credit would be available in the future to those who need it, want it, and have proven they deserve it.

Of course, the parameters within which we began to debate this rescue package were set askew from the very start. That's because it was introduced to the American people as a bill to manage "illiquid assets," a plan to help "Wall Street fat-cats," and, worst of all: A "bailout." While none of that is true, the attachment of that last word very nearly preordained the bill's outcome. It hardened opposition and prevented many from actually giving the bill a second (or, in some cases, first) look.

Now, I'll admit: The concept introduced by Secretary Paulson last week was not one I was comfortable with. But having been tapped by Leader Boehner to take up that plan, restructure it, and negotiate a good deal on behalf of the American people, I took a second look at the bill and started talking to people with a much broader understanding of the consequences of inaction. It didn't take long to arrive at the realization that our economy had a real problem on its hands.

The economic stability package the House is set to consider this week would achieve a couple of key objectives. For one, it'll allow the Treasury to bring some stability to the market by providing time for assets of currently uncertain value to reach their true level of valuation. When that happens, the American taxpayer will be first in line to collect that value - and if Treasury is able to achieve what experts believe it will, it may actually make a profit on those investments and help pay down our national debt.

In the meantime, the challenges we face are significant - and the window of action available to us is closing rapidly. I hope when the House brings this bill up for a second time this week, members will have benefited from taking a second, maybe third, look at this bill. And if they do, I'm confident we'll be able to pass it.

Republican Whip Roy Blunt

On Monday, despite the support of 60% of Democrats, the House of Representatives voted down a rescue package to save our country from an economic emergency. By the end of the day, $1.2 trillion of invested wealth had been wiped out.

It's easy to think of Wall Street as almost another country, far removed from our daily lives. But think of how much of that $1.2 trillion was in pension funds, retirement accounts, or 401(k)s. What happens on Wall Street affects all of us. Bill Novelli, the head of AARP, wrote that he's found 10 ways in which a financial crisis could harm families and retirees, from higher credit card interest rates, to more home foreclosures, to layoffs, to devastated pension funds. In fact, the value of equity investments held by pensions has declined 23% over the past year--that means that nearly $600 billion in retirement savings had evaporated. This morning brought the news that the economy lost 159,000 jobs last month, and more than three-quarters of a million jobs this year.

Worse could be on the way without strong action from Congress. Fortunately, we're bringing a new version of the rescue plan to the floor of the House today. The Senate passed that version on Wednesday, and we hope to do the same.

Both Democrats and Republicans have significantly improved the President's plan. We fought to ensure that taxpayers will be the first to profit if and when those assets rise again in value.

We restricted executive compensation, because CEOs whose recklessness helped bring on this crisis do not deserve taxpayer-subsidized golden parachutes.

Finally, we will help homeowners renegotiate their mortgages, to prevent a further flood of 2 million projected foreclosures that would devastate our communities.

On Wednesday, the Senate raised federal insurance of bank accounts from, $100,000 to $250,000, and also chose to add several tax cuts.

I disagree with those tax provisions, because they will be financed irresponsibly, by borrowing more money on top of our huge national debt.

But an emergency like this is the time to compromise. For the sake of families struggling to keep their homes, workers afraid of pink slips they did nothing to earn, and millions of seniors who deserve to keep the money they saved all their lives--the House must act today.

Majority Leader Steny Hoyer

The Associated Press has a piece about how stock losses are taking a heavy toll on retirement savings:

So close and yet so far. It's a frustration being felt by Americans who thought the finish line to their working life was almost in sight.

The financial crisis that toppled major Wall Street banks and snarled credit markets around the world has also taken a toll on nest eggs, forcing people to rethink when -- and even if -- their savings will allow them to retire.

More than half of people surveyed in an Associated Press-GfK poll released Wednesday said they worry that they will have to work longer because the value of their retirement savings has declined. (Emphasis mine)

Of course this poll doesn't come as much of a surprise. The crazy thing to me is that older Americans had already begun to have second thoughts on retiring before this financial meltdown. If we were in a crisis before, what is a more adequate term for what we're in now?

Yesterday, we watched the Dow plummet 778 points. It plummeted because Congress voted down the rescue package. And frankly, they failed to offer any solution to American families.

Slowly but surely our fears are becoming reality and the cost of Congress' inaction at this moment is resulting in lower home values, retirement dreams lost and younger generations losing opportunities of their own.

Opinions are abound and vary wildly. Where do you stand on this? Have you lost a dream yet? Do you stand to lose a dream? All we know at this point, is that Congress must do something, and they must do it fast.

Studies are showing that there's been a huge spike in parents moving in with their children, reports the Chicago Sun-Times. And this goes for parents under 65 too:

The number of parents under 65 in these households increased by 75 percent, and those 65 and older were up 62 percent.

There's also been an increase in folks cohabiting with in-laws and siblings. While there a number of factors that could be behind this, researchers are saying a large reason could be the struggling economy and rising costs of living, which is forcing families to combine expenses.

Stephanie Coontz, director of research at the Council on Contemporary Families, also says that parents and children are closer than they were in the past. This can be a bad thing for what they call the "helicopter parent", who hovers too closely, but a good thing for parents and children developing close friendships in addition to child-parent dynamic.

While it's nice to think closer relationships are the reasons why more parents are moving in with their children, I don't doubt that the economic crisis in this country is a large factor as well. Regardless, giving back to your parents in this way is probably something many children do willingly and happily.

Uh-oh. A new study shows that the bankruptcy rate is apparently sky-rocketing among older Americans. Via NPR:

The Consumer Bankruptcy Project examined a sampling of noncommercial bankruptcies filed between 1991 and 2007. Researchers found that the older the age group, the more bankruptcies there were. People 65 and up were more than twice as likely to file during that period, and the filing rate for those 75 and older more than quadrupled.

Harvard Law Professor Elizabeth Warren, one of the study's authors, said older Americans are hit by a one-two punch of having to keep working but facing medical problems, and the two are often intertwined.

People are entering retirement with debt, still struggling to pay off their mortgages. Between that and paying for medical treatment, it makes sense so many are going bankrupt! Not good.

As a part of their series on retirement issues in the 21st century, USA Today had a not-so-happy piece today about how many of the 1.6 million people becoming eligible for Social Security this year are actually postponing retirement because of health care costs and other economic problems the country is currently facing. Via Kaiser:

In 2007, only 45% of large companies subsidized health insurance for early retirees, compared with 88% in 1991, according to Hewitt Associates. As a result, many employees who retire before age 65, when they become eligible for Medicare, would have to find a new source of health insurance, such as the individual coverage market, Rick McGill, head of retiree medical consulting at Hewitt, said.

A recent AARP piece has a bit more of a positive spin on the trend of delays in retirement. After all, we shouldn't assume all people will automatically want to retire once they're eligible for Social Security; many older Americans love their work, and aren't ready to give it up.

An from Anne Springer, the "Senior Lookout" columnist for the Ii>Gloucester Times (MA).

The U.S. Bureau of Labor Statistics estimates that about 76 million Baby Boomers, or 43 percent of the current work force, will be eligible to retire within the next 10 to 15 years. As they retire, the conventional wisdom is that the workforce will shrink, with employers and government alike pondering how the economy will cope. Both are said to be seeking ways in which they can encourage many of the Boomers to retire later, thus softening the blow, since the following generations are much smaller, and with a smaller percentage of qualified workers.

[E]mployers who do believe that we are facing a "boomer brain drain" are restructuring some jobs to make them less tedious and more interesting, or allowing employees to take time during the workweek to volunteer for a local charity, or get in a round of golf. Such enhancements to the fringe package may keep long-time employees from collecting their gold watch and leaving, taking all their experience and talent with them. And, it may also act to entice younger workers, some of whom would welcome some flexibility, too.

Another way companies plan to avoid the talent drain when Boomers retire is to make mentors out of them, or hire them back as consultants, trainers, or to work on special projects on a contract basis.

Over on BloggingStocks.com, personal finance expert Dan Solin offers advice on how not to react to hard times.

Rising gas and food prices, the disappearance of home equity, downsizing by large and small employers and a credit crunch are a perfect storm for cash-strapped investors. Many are tempted to tap into low-hanging fruit: their 401(k) and 403(b) plans. Is this a good idea? Other than as a last resort, this answer is "no." Even in good times, the number of employees who cash out of their retirement plans is alarming. More than 45% of departing employees cash out of their 401(k) plans.

This post is one installment of a twelve-part series called "recession moves not to make." Check it out.

This BusinessWeek piece is unbelievable. It's titled, "Would We Fire Older Workers If We Could?"

And it's certainly not a joke. Author Liz Ryan asks readers:

We DO love youth culture, here in the U.S. We celebrate fresh thinking and new ideas. Age discrimination claims in employment are on the rise. Are our anti-discrimination laws the only things that are keeping our employers from following the airline's lead and booting the oldest employees? Can new ideas and older talent pools co-exist?

Is she really asking this question? It's as if older folks are in some sort of bubble confined away from the rest of the world, incapable of thinking of fresh ideas. In the "About" part of this section of BusinessWeek, which is titled, "Generational Tension," it says, "Our experts on the millennial workplace, Liz Ryan, David Stillman, and Lynne Lancaster explain how to close the generation gap."

Well I must say, if they're interested in closing that gap, wondering aloud about firing all older employees and implying they have little to offer to the workforce is not going to do it. Rant over.

The New York Times has a new blog, "The New Old Age: Caring and Coping" penned by the great Jane Gross. Here's the description:

Thanks to the marvels of medical science, our parents are living longer than ever before. Adults over age 80 are the fastest growing segment of the population, and most will spend years dependent on others for the most basic needs. That burden falls to their baby boomer children, 77 million strong, who are flummoxed by the technicalities of eldercare, turned upside down by the changed architecture of their families, struggling to balance work and caregiving, and depleting their own retirement savings in the process.

Between Gross' insight and the Times' readership, I don't doubt The New Old Age will foster some great discussion on this intergenerational struggle; make sure to check it out.

I saw this story today about a "modern day Bonnie and Clyde" who have stolen the identities of friends and neighbors in the Philadelphia area.

In a recent statement to the public, Steve Ely, Equifax's President of Personal Information Solutions (Equifax is one of the three major credit bureaus) said:

"Consumers should not wait until they have become a victim to take steps to protect themselves. A proactive approach is the best way for consumers to protect themselves and minimize damage to their credit and financial health."

He's right! and we all know how id theft seems to be running rampant - and these unscrupulous thieves are targeting...of course...the most vulnerable members of our communities. So, in the spirit of covering our bums, here are some resources and advice for protecting your nest eggs, identities and saving your good credit!

Some advice for limiting the risk of identity theft from Equifax, AARP and other credit savvy minds includes:

• Limit the number of credit cards you carry - better yet, carry only what you need in your wallet or purse.
• Protect your social security number like it's baby! Don't give it to strangers, don't give it out on the phone unless you know who you're talking to, and certainly don't carry your card with you unless it's absolutely necessary.
• When in doubt - shred it! Your local AARP office might hold shredding parties where you can bring all of your sensitive documents for safe disposal. Visit www.aarp.org. for more information.

Depending on your personal needs, you may want to consider freezing your credit report with the three major credit agencies (Equifax, TransUnion and Experion). If that sounds a bit extreme - or maybe you're house hunting or car shopping and you need regular access to your credit report - consider a credit monitoring services.

Equifax has a nifty identity theft protection product, Equifax ID Patrol. ID Patrol lets you: lock/ unlock your Equifax credit file, receive alerts if your Social Security/ credit card numbers are found on Internet trading sites, access a trained ID Theft Resolution Specialist 24/7, and receive credit monitoring and alerts within 24 hours to key changes in credit files. Learn more at www.equifax.com/idpatrol and get other great tips for protecting your identity here.

So, we're still fired up about this idea of "de-aging" your resume.

Bulletin Today (the online version of AARP's The Bulletin) has a great article about job hunting strategies for the web. Advice ranges from the basic: don't pay for services when there are plenty of free sites out there that'll more than do the job for you. To the advanced: hunt for industry, age and location-specific sites that suits your needs.

Check it out and polish up that resume!

The New York Times had a really good (yet upsetting) piece this weekend on the severe effects that the rising gas prices are beginning to have on older folks:

"Faced with soaring gasoline prices, agencies around the country that provide services to the elderly say they are having to cut back on programs like Meals on Wheels, transportation assistance and home care, especially in rural areas that depend on volunteers who provide their own gas. In a recent survey by the National Association of Area Agencies on Aging, more than half said they had already cut back on programs because of gas costs, and 90 percent said they expected to make cuts in the 2009 fiscal year."

Without Meals on Wheels, they would need transportation or home care. Without transportation, they need home care or Meals on Wheels. So without any of the three, where exactly does that leave them? And it doesn't end there - not only are these necessary programs being cut, but it's getting more and more difficult to get volunteers, who are increasingly harder to recruit as they cut back on their miles.

The article touches on a couple of personal stories from citizens of Michigan that really hits home; we can talk prices and numbers all we want, but humanizing the problem and seeing how this is affecting real Americans is what will resonate with people.

One ray of hope is that the agencies are currently urging Congress to account for fuel inflation in reimbursement rates and reinstate special increases for providers in rural areas - a program that actually expired in 2006. It looks like we need it now more than ever.

We're on a guest blogger roll here folks! Yesterday Congressman Neal, from the fine state of Massachusetts, held a hearing about saving for retirement at work. Now, if you didn't know already, 75 million people in the United States have no way of saving for their retirement! Congressman Neal is working to change that. Read on below to see his plan.

We have all heard of the three-legged “retirement” stool meant to prop us up in our golden years -- that is, Social Security, pensions, and savings. Without one leg, that stool will be hard to sit on. Unfortunately, recent statistics show that our personal savings rate continues to decline. In fact, our personal savings rate has declined so much over the last few decades that, since 2005, it has been a paltry one-half of one percent.

Individual Retirement Accounts, or IRAs, have existed for decades, with the hopes that those without employer plans would save on their own, and yet we are still faced with underutilization by the intended targets. The Government Accountability Office (GAO) recently projected that 37% of all workers will retire with zero plan savings, and that of young and low-income workers, 63% will have no plan savings at retirement. Clearly, Congress must do more to foster personal savings.

We must begin to think more creatively and use innovation to capture this group of workers who are not saving. One of these vehicles is the Auto-IRA (HR 2167), a bipartisan bill that I have sponsored along with my colleague Rep. Phil English (R-PA). With 75 million workers with no access to a workplace retirement plan, and only 10% of these workers saving on their own, clearly the current incentives are not working.

Our bill creates automatic payroll deposit Individual Retirement Accounts for workers who do not have access to employer-provided qualified pension plans. Our bill would require employers to automatically enroll employees in an “auto IRA” unless the employee opts out. These are ‘set it and forget it’ payroll deposit accounts. The non-partisan Retirement Security Project has estimated that this proposal could raise net national savings by nearly eight billion dollars annually.

At a recent hearing before a House Ways and Means Subcommittee, Dr. Leo Estrada, a member of the Board of Directors of AARP, testified in support of this bill. He said, “Studies have shown that automatic enrollment programs provide a way of improving retirement savings by using the so-called ‘power of inertia’ to change non-savers into savers.” I am pleased to be joined by the more than 39 million members of AARP in supporting this innovative savings vehicle.

As George Foreman observed, “The question isn't at what age I want to retire, it’s at what income.” If only we all had this same observation in our 20’s, we wouldn’t be fighting so hard to save in our 50’s.

This has been quite a week for talking about money - especially for AARP. Our folks have been at conferences, talking to Congress, and popping up in the media even!

We thought we'd invite someone to guest blog with us here at Shaarp Session about your money and offer some advice. Ric Edelman has been ranked among the 100 best financial advisors in America five times and he's here to offer some advice about what do with your 401(k) when it's time to move on to a new job. Check it out below - and send us your questions about personal finance. We'll make sure Ric gets to see them.

If you’re leaving an employer, what should you do with the money in your retirement plan?

Regardless of why you’re leaving — you’re retiring, you found a new job, you quit, you were fired, whatever — we routinely recommend that you move the money to an IRA account. This is true regardless of what kind of retirement plan you have — 401(k), 403(b), 457, TSP, etc.

Moving the money from a former employer’s plan to an IRA has several advantages: You gain the ability to select from a potentially unlimited number of investment options, and you enjoy complete control over your account, with no interference from a Human Resources or plan administrator.

When people move money from an employer plan to an IRA, they frequently refer to the transaction as a “rollover.” But that term is rather inaccurate. A true rollover occurs only when your employer sends you a check for the account balance that’s made payable to you. In this case, you’d deposit the check and write a new one, which you’d forward to your IRA account. Rollovers must be completed (meaning the money must be deposited into the IRA) within 60 days; otherwise, you’ll owe taxes (plus a 10% IRS penalty if you are under age 59½ at the time of the rollover). To make matters worse, employers typically withhold 20% of the funds when sending you that check. It’s hard to roll over money that you never get — making it more likely that you’ll incur taxes and penalties!

Fortunately, there’s an easier way to move money out of that employer plan. Simply sign a form your employer can give you, authorizing a “direct transfer.” The form instructs your employer to send the money in your retirement account directly to your IRA. This is easy (you just sign the form) and stress-free (there’s no 60-day deadline). Plus, your employer will not withhold 20% of your money!

Sometimes, employers send “transfer” checks to the employee (you) instead of directly to the IRA. Have no fear: As long as the check is payable to the IRA trustee or custodian, it’s considered a transfer and not a rollover. It’s OK even if your name appears on the check. (Your name should be preceded by the initials FBO, which means “For the Benefit Of.”)

Thus, if you receive such a check, don’t deposit or sign it. Instead, just mail it to your IRA. You’ll get confirmation shortly, showing that the money has been deposited into your account.

Then, sit back and relax, knowing that your retirement assets are working for you.

By Ric Edelman

Tomorrow Congress is going to take a closer look at payday lenders and their targeting of social security beneficiaries. These crafty and unscrupulous businesses set up shop around government subsidized housing and sometimes even around retirement communities! Generally speaking, I’d say payday loans aren’t the way to go - but they are especially dangerous for Social Security recipients who are bamboozled into signing their checks over to these lenders to settle accumulating debts.

If you ARE dealing with payday lenders never, ever sign over your Social Security checks to a bank account that’s controlled by the loan company. You always have options, so talk to your family about a small loan or call your creditors and explain the situation – many are happy to develop a payment plan that works for everyone.

While you’re spreading the word, AARP will be up on Capitol Hill tomorrow talking about ways to protect ya’ll and your Social Security checks! We’ll keep you posted.

I got my stimulus payment finally, how about you?

According to a USA Today story, more than 5 million potentially eligible retirees and disabled veterans haven't received a stimulus check yet because they haven't filed a tax return. If you haven’t received your rebate, it’s not too late. You could still be eligible for several hundred dollars.

Here’s the deal: you have to file a tax return form, but not with all the mess and confusion. So what are you waiting for? Visit AARP’s Stimulus Payment Tool – it’s free and easy. The hardest part will be deciding what to do with the money …

It is a good day. We've been watching this closely and apparently so has the Huffington Post:

The Supreme Court made it easier Thursday for employees to prove they have suffered discrimination because of their age.

In a 7-1 ruling, the court said that when older workers are disproportionately affected by an employment decision, the employer bears the burden of explaining whether there was a reasonable explanation other than age for the company's action.

The lawsuit involved 26 former employees of Knolls Atomic Power Laboratory in upstate New York who were all over 40 at the time they were laid off in 1996. In fact, 30 of the 31 workers who were laid off that year were over 40 years old.

But the Age Discrimination in Employment Act protects them, and the Supreme Court justices agreed. The New York Times reports:

The issue in the case, while technical, is important for the litigation of age discrimination cases in which an employer's action or policy that appears neutral on its face has a disparate impact on older workers. David Certner, the chief legislative counsel for AARP, praised the decision and said it would prove 'vital to the creation and maintenance of a workplace that is fair and free of age bias.'

Indeed. Read the Times article for more details, and let's start celebrating.

Alexis Leondis of Bloomberg reports that a growing number of seniors are using reverse mortgages to pay for things they might never be able to afford on their own. Leondis describes reverse mortgages this way:

Reverse mortgages are for people aged at least 62. The loans, which lenders charge fees equal to as much as 6 percent of a home's value, allow borrowers to use their home equity to get cash tax free. After the borrowers die, or move, the lenders are repaid when the house is sold.

Like every other personal financial decision, the question of whether or not a taking out reverse mortgage is the right decision is a deeply personal and circumstantial one. The AARP Foundation’s Reverse Mortgage Education Project has many tools folks can use to find out if a reverse mortgage is appropriate to their particular circumstance.

Check out this Yahoo! article about aging Aussies who rallied for better pensions … in their underwear. Well, it certainly got our attention, right? How far would you go to make your voice heard? Here’s an idea – start by signing the Divided We Fail pledge to ensure that all Americans have access to health care and long-term financial security. You can also share your story and spread the word about Divided We Fail. It’s not naked, but it’s a start!

We haven’t talked about the stimulus in awhile but since checks are in the mail starting today, I thought we'd start entertaining the possibilities. New summer clothes? A new set of golf clubs? Some bills?

Share your ideas in the comments section here or if you need inspiration, check out this great website and read what other people are doing. A notable post is from Bill and Jackie Nopar in Phoenix, who are spending their stimulus on their prescription drugs. How about you?

Tonight's primary showed us more of what we have already seen. And what's that? 50 plus voters turning out to vote and economic issues topping voters' concerns. According to the exit polls, North Carolina saw 55 percent of the electorate over 50 and in Indiana, 49 percent were 50+. The economy dominated as the top issue, with 61 percent in North Carolina and 67 percent in Indiana naming it as a top concern.

Hmmm... haven't we heard this before? Seems that across the nation there are two things that are pretty consistent - half the electorate is over 50 and the top issue is clearly the economy. Let's hope the candidates are paying attention.

Interesting read from the San Francisco Chronicle today about the age gaps in the electorate. While the piece talks about the different perspective on age, it digs a little deeper and brings up the issue of socioeconomic status. According to The Numbers from ABC News, it appears that how much you make is a bigger factor than how many years you’ve got. This is a valid point, especially when you consider that key issues like health care and financial security are both connected to your finances. Regardless of age, everyone is concerned about skyrocketing health care cost, but especially those who are struggling the most financially. As for financial security, it’s no different – those who are the most concerned are those who feel least secure today.

The Planning to Retire blog over at US News and World Report peeks at a new report that throws caution to the wind for women when it comes to planning for retirement. According to the report, women are twice as likely to end up in poverty when they are older. Check it out ladies...

New survey out today from AARP Financial finds that over half of Americans don’t read financial literature because it’s too hard to understand. No kidding. Have you tried to figure this stuff out? I’m with the 73 percent surveyed who said that financial professionals use more jargon than car mechanics.

The unfortunate thing about this is that people may be missing out on opportunities, making investment mistakes, even not sign up for retirement plans at work because of confusion. I can’t solve all your problems, but there are good, easy to understand resources out there, particularly when it comes to planning retirement.

While tonight's debate began as most of the debates so far this election cycle - full of sniping and attacks - the debate finally settled down and we heard some substance. The candidates did talk about financial issues, which are weighing heavily on all Americans. But there was virtually no mention of health care tonight, which is unfortunate

The most interesting portion came when the candidates traded lobs on Social Security. While Senators Clinton and Obama are both concerned about the future of the program, they traded barbs about how to ensure the program is strong for future generations. It was a healthy discussion and it's a good thing to see the candidates willing to discuss a range of options. Getting to solvency is going to take a commitment from everyone.

The most disappointing thing about tonight's debate was that too much time was spent on the accusations and attacks that turn people off from politics. With just seven months left of the election season, it would be nice to see more substance and less fluff. Hopefully that's what we'll get.

Yes, America is stressed about the single largest source of retirement savings – our homes. This is especially true when too many people are faced with losing them, as we are seeing in today’s fragile economy. The Senate passed housing legislation today that just doesn’t do enough. While there are some good things to help with reverse mortgages in the bill, bankruptcy protections that already apply to some should be available to help all homeowners. This thing still is not over, now the House has its turn to provide relief to homeowners.

Troubling poll numbers on how middle class Americans feel about their lives, according to a new poll out from the Pew Research Center. One-third of those who responded to the poll believe they are worse off than five years ago – the highest number over the last 50 years.

If this isn’t a battle cry for change, I am not sure what is. Let’s just hope people actually hear it.

Feeling secure about personal finances is tough for everyone right now. Home values are dropping, the stock market is volatile, and the price of food and gas keeps rising. One of the ways to dodge the bullet is to plan and be smart about your dough. According to the Wall Street Journal, even Federal Reserve Chairman Ben Bernanke is pushing the financial literacy thing. He even thinks financial literacy classes should be required in all high schools before graduation. Not a bad idea, not a bad idea at all.

Think Progress today points out some confusion about Senator McCain’s position on Social Security. While in a Wall Street Journal interview a few weeks ago, McCain reiterated his support of private accounts. According to Think Progress, yesterday Senator Lieberman was out denying McCain’s stance. Hmm? Cloudy, I’d say.

Congress passed an economic stimulus package, but you gotta fill out a tax form. Confused? Check out AARP’s new tool to help with the economic stimulus payment application process. It’s easy and you might even get a few bucks from the feds for doing it.

It’s early, so I will rain on your parade and get it over with. Yesterday, the Social Security and Medicare Trustees report brought us some not very good news. The Cliff Notes version is that Medicare is facing a tough future, one that's not likely to get any easier if we contine to ignore the elephant in the room: skyrocketing heatlh care costs.
And Social Security also faces a tough outlook. It is a reminder that it’s time for our political leaders to get to work on our nation’s problems. Bottom line, the sooner we tackle these problems, the more feasible the solutions.

People say they are ready for the solution – a new survey out this week by the AFL-CIO on health care says it all. According to U.S. News and World Report:

Among those surveyed, 95 percent said health care in America needed fundamental change or a complete overhaul. Seventy-four percent of 18- to 29-year-olds said health care was a very important election issue, as did 80 percent of 50- to 64-year olds.”

Sounds like pretty much everyone is ready for a change.

An update from AARP Arkansas' Pat Jones:

Licensed payday lenders in Arkansas are receiving what some consider their walking papers from Dustin McDaniel, the state’s Attorney General, in the form of a strongly worded letter. That gives AARP Arkansas and other members of a broad-based coalition against payday lending reason to celebrate.

"These businesses have made a lot of money on the backs of Arkansas consumers, mostly the working poor. Charging consumers interest in the range of 300 to 500 percent is unlawful and unconscionable, and it is time that it stops," McDaniel reportedly said during a news conference on March 18th. "It is my hope that they comply with my demand but, if they do not, I stand ready to take them to court."

Calling payday lending a “deceptive and unconscionable trade practice” prohibited by the Arkansas Deceptive Trade Practices Act (DTP A), McDaniel’s letter demands tells payday lenders to “cease and desist” payday lending
practices immediately, void all current and past-due obligations of their borrowers, and halt any collection activities related to these type loans.

The AG’s announcement adds fuel to the fire created by two recent, precedent-setting state Supreme Court decisions on payday lending. The court rulings state that two bonding companies are liable for paying bonds to partly cover judgments against payday lenders. The state requires a $50,000 bond for every payday lending store, and the court ruling could cause bonding companies to consider bonding payday lenders too risky. Peggy Matson, executive director of the state agency which regulates payday lenders, told the Democrat-Gazette newspaper, “If they cannot obtain a bond, then we cannot grant them a license.”

The budget process is creeping along in Washington. While this may seem like a snoozer to some, it is pretty important in terms of locking Congress in to spending and/or cutting. To this end, they’ve got to do this thing right. Doing it right means rejecting the deep Medicare and Medicaid cuts proposed by the Administration and moving toward reducing America’s skyrocketing health care bill in both programs.

Bottom line, if Congress is spending our money, they should be spending it on things that matter, like improving health care and financial security for everyone.

A report on AARP’s presence in Maryland from State Director Joe DeMattos:

AARP Maryland put together their annual Lobby Day in Annapolis and it was a huge success! Over 100 AARP volunteers flooded the State House and seven AARP folks testified before various committees on some of our key issues like keeping electricity rates affordable, ensuring quality long term care, and preventing ID theft.

The sponsor of the utilities bill we are supporting, Delegate Brian McHale, addressed the crowd and he had a blast with everyone shouting "price - reliability" his 2 goal posts for electricity. Kinda dorky, I know.

I even had the opportunity to address the entire House of Delegates from the Speaker’s Rostrum, which is a special rare opportunity and honor for non-delegate. Overall, a great day and a big thanks to all of our volunteers and staff who made it happen!

In today’s Wall Street Journal, there are some excerpts from a recent interview with Senator John McCain. Included in the myriad of questions is one about Social Security. While private accounts don’t really address the problem with Social Security, McCain does bring up a key part of getting to a solution. He said:

“The way I would fix Social Security is to sit down with Republicans and Democrats together at a table, voicing my opposition to tax increases, and sitting down and negotiating a fix to Social Security, which is the only way that Social Security is going to be fixed. That's my solution to the Social Security system.”

McCain (as well as the other candidates) have ideas about how to shore up Social Security, but the good news is that he understands that a real solution is going to mean everyone gets together at the table in order to get something done.

The housing crisis has spread like wildfire and for many it can mean losing their homes. It doesn’t end there; the economy is also a victim.

The Senate is gearing up to debate legislation that can help the over half a million people who are facing foreclosure to stay in their homes while they work out a way to pay their loans. The Foreclosure Prevention Act wouldn't let people run off without being responsible. Instead, it would help them to try and save their homes by allowing them to go to court to restructure their loans. Right now, people can restructure loans on vacation homes and yachts - this protection should include a person's home.

Too many people are facing a dire financial situation today. If Congress can give them the opportunity to prevent total disaster, they should. Plain and simple.

Homes are a vital part of retirement security and any opportunity for folks to stay in their homes is an opportunity for a more secure financial future, something we're all trying for.

Yesterday, Senator Barack Obama was out on the stump talking about Social Security. It's about time we started hearing about this issue from the candidates, particularly with people so concerned about their financial futures. Reform is important and yesterday the Senator mentioned just one option when it comes to making sure Social Security is around for future generations - raising the payroll tax. There are lots of other ideas out there and with 80 million Americans likely to retire in the next 20 plus years, it seems like a great time to start looking at the ways to make sure that Social Security is around for the next generation.

Solutions will involve answering difficult questions and making tradeoffs, no doubt about it. Whoever is elected in November will have to lead in finding a solution.

I wrote about it yesterday, but U.S. News and World Report has an interesting Q and A on the Supreme Court’s 401(k) ruling from earlier this week. It gives a little more detail about how this impacts consumers, so get smart and check it out.

The papers were all over it today… the Supreme Court’s ruling that will allow employees to sue their retirement plans. But what does this mean for the average person? It means that if the people who we have entrusted our 401(K) plans to are not responsible stewards of our dough, we now have the recourse to sue them. AARP filed a brief in support of the plaintiff in the case, calling the lack of ability to sue a barrier to retirement savings – I mean, who wants to trust their money to someone that is not really accountable.

Some say it will result in more lawsuits, but clearly it is a win for consumers at the highest level.

AARP today announced it’s 2008 legislative agenda and it includes some important stuff that lawmakers need to work on this year. You can read the whole thing, but I’ll give you the Cliff Notes version. The big thing is modernizing and improving health care and containing costs by supporting things like health IT (including e-prescribing) and greater reliance on evidence-based medicine. Not to be forgotten is strengthening Medicare and Medicaid; expanding health coverage not just for children (SCHIP), but also the 50-64 set; and making prescription drugs more affordable.

Your pocketbook shouldn’t be forgotten either. The focus on the financial side will include getting lawmakers to establish programs in the workplace that help Americans save for retirement, like automatic enrollment in IRA and 401(K) plans and greater use of payroll deduction through the work place. Other things include broader protections for consumers from financial fraud and abuse and improved transportation and housing options for older Americans. On housing issues, protecting funding for federal housing programs and promote more affordable reverse mortgages will take front and center. And don’t forget about working for better utility regulations and more affordable energy.

Phew, that’s a lot of work…

Our colleagues at New Jersey AARP are working hard to curtail predatory lending practices, particularly when it comes to annuities. Instead of me explaining it, check out the video below courtesy of bluejersey.com.

Bill Novelli, AARP’s CEO, issued the following statement after the President signed into law a bipartisan economic stimulus package passed by Congress last week.

“Today is a reminder of how leaders in Washington should work together more often.

“Last month, our elected officials worked across party lines to propose a stimulus plan that focused almost entirely on tax rebates and business incentives. The American people voiced their concern that this plan would be unfair, leaving out approximately 20 million people who depend on Social Security, as well as disabled veterans. In the end, Congress listened and passed a better plan that will give these people a little help in a tough time, as well as a role in turning around our economy.

“Today, the President signed the bill into law and directed the federal government to move quickly on the package.

“All this happened in the span of three weeks – and it only happened because elected officials were willing to move past partisan politics and listen to their constituents.

“The stimulus bill, while not perfect, is a breakthrough in Washington, where partisan gridlock has stalled progress on critical issues like affordable health care and lifetime economic security. We are grateful to Congressional and Administration leaders from both parties for listening to the American people and getting this done. Now let’s keep it up.”

Today, President Bush signed the new economic stimulus rebate program you advocated for into law, but that’s not the end of this story.

As CNNMoney.com reports today, “The decision to add 20 million seniors to the ranks of Americans who'll get rebates as part of the economic stimulus plan was in the end an easy one to make. Getting the rebates in their hands may not be as simple to do.”

The deal is, nearly 12 million low-income older Americans don’t file tax returns because they normally aren’t required to. But in order to receive their tax rebate, many will have to file a 2007 federal tax return this year.

Stay tuned as we expect to hear more this afternoon. AARP is planning a campaign to let you all know what you need to do in order to get your rebate.

In the mean time if you’d like to volunteer, get free assistance with your taxes or learn more, visit AARP Tax-Aide’s website.

Three weeks ago, Congressional and Administration officials introduced an economic stimulus proposal that would have left out approximately 20 million Americans who depend primarily on Social Security and disabled veterans. Tomorrow, the President is scheduled to sign off on a better plan – one that will give these people a little help during a tough time and offers them a role in helping turn our economy around.

What happened to improve the plan? You did.

This story in today’s Politico highlights how AARP’s volunteers and other everyday Americans got fired up and let their elected officials know that any stimulus plan had to be fair. You told them providing support to these people who would otherwise be left out did two things: help those that need it most and give money to people who would put it right back into the economy. You told them it was smart policy and the right thing to do. As the Politico reports, you told them more than 215,000 times in one week alone.

You did well, and you did good. Congratulations and thank you.

AARP CEO Bill Novelli takes the the Hill in support of the plan. Here at a press conference with Senator Max Baucus.

Last night, the Senate addressed something I know concerns all of you – the sluggish economy. It is continually cited as people’s top concern, regardless of party affiliation. They did it by passing an economic stimulus bill that is fair and timely and includes help for those who need it, including the 20 million Americans who receive Social Security. And all of were a part of making it happen. Over 200,000 emails, faxes, and calls came into members of Congress to ask them to do it. Check one off for the people.

It couldn’t have happened without a little bipartisan cooperation. A unusual but welcomed thing in Washington. Maybe a sign of more to come?

I’ve blogged about the stimulus before, but here’s an update… a new poll out today by AARP finds an overwhelming majority of Americans (90%) think the government must ensure that those who rely on Social Security are included in any stimulus rebate package, even if they are divided on whether a rebate plan would effectively stimulate the economy (52% v 48%).

Sounds like the American public is saying if you are going to do this, it should be fair. Who can argue with fair? The proposed Senate plan (Baucus-Grassley) would provide rebates to most Americans, including approximately 20 million Americans that depend primarily on Social Security for retirement income.

We’ll be watching the vote as it unfolds, so stay tuned.

The White House's proposed federal budget came out today and it isn't pretty. Among the ugliness is a proposed $200 billion cut to Medicare and Medicaid over the next ten years that just ignores the real reasons for skyrocketing healthcare costs and instead passes along higher out-of-pocket costs and potentially fewer services. Another painful cut comes in the $570 million slashed from heating and energy assistance, which would leave one million low income households out in the cold.

One ray of sunshine is some additional Social Security Administration funding, which is a needed first step toward eliminating the disability backlogs and improving service. But overall, this thing needs a rehaul. Thankfully, this is the first step in the budget process and Congress has the opportunity to do a better job.

Many positioned tonight's debate as a showdown, but it was more of a discussion then a debate between Senators Clinton and Obama. There was an in-depth discussion of health care tonight and both candidates brought up a vital piece of any health care reform - reigning in skyrocketing costs. Both candidates agreed this is an important issue and both discussed a range of options to try and manage it. Sadly, it took the end of the debate cycle for the candidates to start discussing some of the specifics in the health care discussion. Things like electronic medical records and preventive measures were discussed tonight and are critical to bringing down the cost of health care for everybody.

Financial issues were mentioned, but lacked the details that voters want to hear about. Right now, economic issues are a huge motivator for people at the ballot box. We know that people are concerned not just about the shaky housing market (since homes are such a critical piece of retirement savings), but also how they can afford to retire. It was a lost opportunity for these candidates to overlook these issues tonight.

While tonight's debate was less contentious than last night's, the questions were more focused on personality than substance. Instead of falling into the trap, the candidates chose a route of talking about the issues instead of swiping barbs. This is a good thing and we can only hope this mature tone is part of things to come.

Yes, this is a soapbox. I wrote about it yesterday and the day before and the day before that too – the economic stimulus package. Today, the Senate Finance Committee agreed that Americans need help, including the approximately 20 million Americans who live primarily on Social Security and those who are unemployed and facing a tougher time getting back on the job.

What went down today in the Senate was bipartisan, thankfully, which hopefully will increase the chances of success in the full Senate. And AARP will be watching and reporting to its members how every Senator votes tomorrow. That’s more than 39 million members, in case you didn’t know. And you sent over 75,000 emails, faxes and phone calls to the Senate today, so thanks!

Breaking through the gridlock in the House yesterday was also progress. Hopefully the sentiment will extend to see the stimulus proposal all the way through so Americans can get relief and get it now.

Yes, this is a soapbox. I wrote about it yesterday and the day before and the day before that too – the economic stimulus package. Today, the Senate Finance Committee agreed that Americans need help, including the approximately 20 million Americans who live primarily on Social Security and those who are unemployed and facing a tougher time getting back on the job.

What went down today in the Senate was bipartisan, thankfully, which hopefully will increase the chances of success in the full Senate. And AARP will be watching and reporting to its members how every Senator votes tomorrow. That’s more than 39 million members, in case you didn’t know. And you sent over 75,000 emails, faxes and phone calls to the Senate today, so thanks!

Breaking through the gridlock in the House yesterday was also progress. Hopefully the sentiment will extend to see the stimulus proposal all the way through so Americans can get relief and get it now.

Last night, Floridians went to the ballot box to select their candidates in the primary. Over 60 percent of those who showed up in Florida yesterday were 50 and over, according to CNN’s exit polling.

In the Democratic race, health and financial security mattered. In the CNN exit poll of Democratic voters, 55 percent overall cited the economy as the top issue. Just as interesting: those who supported Senator Clinton, 55 percent cited health care as the top issue.

Financial concerns were important in the Republican race as well. Florida attorney Justin Sayfie, author of the online Florida political bible Sayfie Review said in a recent interview in National Review online, “Economic issues are at the forefront in Florida, as the cost of living in the state has become unaffordable for many, and we have seen our population growth go flat in the past year. Property taxes and high property insurance rates are top of mind for Florida voters.” He wasn’t wrong. In the same CNN exit poll, 45 percent of Republicans cited the economy as the top issue.

I mentioned it last night briefly when talking about the State of the Union, but it looks like chapter one of the tale of the economic stimulus package could unfold later today with an anticipated vote in the House.

In the current environment, with so many people concerned about their finances and the economy, we need relief that is quick and helps those who need it the most. And the Senate plan super sizes what the House has put on the table. It would help approximately 20 million Americans who primarily depend on Social Security for retirement income AND also enhance unemployment insurance, which is critical for 50+ workers who have a more difficult time finding new employment after a job loss.

Word today is that both Democrats and Republicans are getting behind the Senate bill, which is good news. Maybe they can break through the partisan gridlock and actually pass something.

Even though there's been a huge focus on the next occupant of 1600 Pennsylvania Avenue, tonight the current occupant had some thoughts about the state of things. The focus naturally, as on the campaign trail, was on domestic issues and in particular the economy.

While the calls tonight from the President about ending partisan gridlock are encouraging, action would be nice. It's a good thing that Washington jumped in with the stimulus package and what the Senate Finance Committee is offering up is worth another look. No matter what, quick relief is needed for the economic crisis that many Americans are facing right now and it sounds like the Administration recognizes that.

Today everyone's playing nice. Hopefully tomorrow they still will. It's the only way they can begin developing solutions to our most important domestic problems - ensuring access to affordable health care and lifetime financial security.

Here in the spin room, press are watching the debate attentively. The early focus is on financial security issues, finally. Jim Dau mentioned it yesterday and it looks like the debate moderators are finally paying attention to the issues that families across the country have been talking about. While talking about how the candidates will improve the economy is important, there are many issues that have yet to be discussed, such as retirement security or the need for help when it comes to savings. The big picture things are important, but it's the day in, day out that people are focused on.

Some thoughts from AARP's Jim Dau:

It’s hard to find a silver lining in the news coming out of Wall Street and Washington, where global economic volatility is further threatening the financial security of millions of Americans. However, we’re at least grateful that the political media is finally spending more time discussing the economic plans of various candidates (for instance here and here), rather than breathlessly dissecting horse race numbers, photo-ops and slung mud.

The campaign press is waking up to what voters already knew – economic security is a critically important issue. In the Iowa caucuses three weeks ago, voters cited economic concerns as their top issue. Even back in November, both AARP polling and Washington Post polling showed big concern from voters on financial security issues.
Voters want impartial and substantive information on the candidates’ economic plans. It may be that an economic stimulus package is less sexy than decades-old allegations of wrong-doing, but hopefully reporters get that it’s more important.

I have written about reverse mortgages before, but with folks so anxious about the economy, I thought it might be a good opportunity to mention it again. Below is an excellent piece from NBC Nightly News with AARP Foundation President Robin Talbert on the basic ins and outs of reverse mortgages. Bottom line, be wise, read the fine print and talk to someone with knowledge about reverse mortgages before moving forward. For the full scoop, check out AARP’s website.

While there is still a lot of concern and talk about mortgages overall, there’s another side of the mortgage market that folks should be aware of – the reverse mortgage market.

What’s a reverse mortgage? It’s complicated, but it’s a loan available to those 62 and over that does not have to be paid back for as long as the person lives there. Because there are no monthly payments, the amount owed grows larger over time. As the debt grows larger, the amount of cash that would be available after selling and paying off the loan (the equity) generally grows smaller.

The Senate Aging Committee is examining this issue today, as is a new AARP report that is fresh off the presses. Two things of note from the study: Use of reverse mortgages is growing; over the last seven years, the number has grown nearly threefold. Also, while reverse mortgages can be a promising way to help those who are 62 and over, there are still concerns about high costs and abusive marketing practices.

In these uncertain economic times, it is important for folks to read the fine print and learn the right and wrong reasons to get (and spend) a reverse mortgage. Also, you should talk to someone who knows about this stuff and you can trust before you make any decisions. Check out some good advice on reverse mortgages before you make any decisions for yourself or your parents.

Lots of talk on the blogs about the mortgage situation and now today’s announcement from the President. Left, right, you name it – everyone is concerned.

A sampling for your enjoyment this afternoon:

Red State gives us the lay of the land; and

Eschaton on what the mortgage rate freeze plan will do.

Often, home ownership is a key part of financial planning for the future – this is something we aren’t hearing enough about. If we can’t afford our homes, how are we ever going to be able to stop working and start enjoying our lives?

There has been some past opining about holiday fears, so I don’t want to continue to scare folks. BUT… you are out there spending and out there using your credit cards, so a reminder to be careful about identity theft. A recent AARP study found that 80 plus percent of those 50 and over are concerned about becoming a victim of identity theft, but just a third had ever read or heard about a security freeze.

One thing you can do is take advantage of a security freeze, which can stop identity thieves from fraudulently opening new lines of credit and bank accounts. More info here, but basically it requires the three consumer reporting agencies (Equifax, Experian and TransUnion) to block access to a consumer's credit information and score without the consumer's express consent or authorization.

There’s an interesting new poll today out of the Joint Center for Political and Economic Studies, sponsored by AARP, giving the pulse of African American voters just a month out of the primaries.

Two things worth noting:

Respondents named Senator Hillary Clinton over Senator Barack Obama as having the best position of the Democratic candidates on two important issues – affordable health care (47.3 percent to 18.7 percent) and strengthening Social Security (41 percent to 18.6 percent).

Among African American Republicans polled, former Mayor Rudolph Giuliani had the favored positions on Social Security (28 percent) and healthcare (25 percent). Senator John McCain ranks a distant second to Giuliani on Social Security and former Senator Fred Thompson ranks a distant second on health care.

We are featured again the Huffington Post. Check it out here.

The blogs, as well as the mainstream media, have been chatting about Social Security over the past few days mostly as a result of this column from Ruth Marcus and blog response from Paul Krugman, as well as this AP story. A sampling for your pleasure:

Heading Right's take on Krugman v. Marcus;

Clive Crook of the Atlantic, also serving as a referee; and

My DD on the language of Social Security.

There is no crisis, but Social Security needs to be there for the next generations. And this may mean tough choices that everyone should be prepared to make. Some of us are ready, now it’s time for our elected leaders to get on board.

Blogland is talking about the mortgage lending mess (here, here and here) that we are facing in this country and the need for reform in the biz. There is legislation make its’ way through the House with an expected vote tomorrow that would help. It is not perfect – is legislation ever perfect? But, it would bring some fairness and transparency to the mortgage lending industry. There are some forces that are looking to use this opportunity to eliminate even better and stronger consumer protection laws at the state level, which would hurt would be homeowners in those states.

Congress should beat back proposals to water down H.R. 3915 and this bill should move things forward, not backwards. We’ll watch tomorrow and see if they do the right thing. The status quo is untenable for America’s families, hopefully our leaders will make the right move on this one.

Blogland is talking about the mortgage lending mess (here, here and here) that we are facing in this country and the need for reform in the biz. There is legislation make its’ way through the House with an expected vote tomorrow that would help. It is not perfect – is legislation ever perfect? But, it would bring some fairness and transparency to the mortgage lending industry. There are some forces that are looking to use this opportunity to eliminate even better and stronger consumer protection laws at the state level, which would hurt would be homeowners in those states.

Congress should beat back proposals to water down H.R. 3915 and this bill should move things forward, not backwards. We’ll watch tomorrow and see if they do the right thing. The status quo is untenable for America’s families, hopefully our leaders will make the right move on this one.

Tomorrow, business leaders, unions and AARP are having a roundtable discussion about hybrid pensions plans. What is a hybrid pension plan? I wondered too, which is why I poked around for you. A good background from the BBC here but the short version is that it is an interesting cross breed between a defined benefit pension and a 401k. Sounds like an interesting idea for those who may not have a chance to save for retirement at work - the risks are shared and there is an element of personal responsibility and planning.

Hear more about it tomorrow at 9 am by clicking here. It looks like there are some interesting people attending, including folks from Honeywell and Eaton, two companies who are actually doing this. Enjoy!

AARP is cooler than you think. Today they are announcing a new public service announcement campaign featuring Ben Affleck, Garth Brooks, Dakota Fanning, Morgan Freeman, Eva Mendes, Joaquin Phoenix, Jeremy Piven and Reese Witherspoon highlighting the need for affordable, quality health care and financial security for all Americans.

This also brings two new groups under the Divided We Fail umbrella, the Entertainment Industry Foundation (EIF) and the Motion Picture & Television Fund (MPTF). Directed by actor and director Tony Goldwyn -- grandson of legendary producer and EIF Founder Samuel Goldwyn -- with music composed by Philip Glass, the PSA urges everyone to let their voice be heard on the need for affordable, quality health care and peace of mind about financial security.

Just in time for Caregiver Awareness Month, AARP has released a survey about those who are doing most of the caregiving – boomer women. Turns out these women are talking to their parents about how they want to live as they get older, but not enough are actually doing the planning. Nearly 70 percent of these women also believe their parents can afford their care, but the reality is that a nursing home can cost as much as $75,000 a year and a private home health aid about $19 an hour.

What does all this mean? It means it is not enough to have the conversation, it’s time to get a plan.

Yesterday, Senator Barack Obama was out on the campaign trail talking about economic security and he echoed his support for automatic IRAs. Not enough candidates are talking about what they can do to help American families build lifetime economic security; after all a key component to saving is saving at work and today 75 million people (too many) are not able to do this.

These two don't have to be the only ones - the nine Democratic and Republican candidates who currently serve in Congress have a chance to show Americans they are committed to helping them save by co-sponsoring the Automatic IRA Act of 2007 (S. 1141 and H.R. 2167).

Also, today the House Education and Labor Committee is having a hearing on the very same topic, so hopefully it will gain more traction. By allowing people to save at work, almost two thirds of those I just talked about could get on the savings train.

It doesn’t have to be so hard – retirement that is. A cool new tool online to help business help employees to save, check it out. After all, every little bit adds up!

It doesn’t have to be so hard – retirement that is. A cool new tool online to help business help employees to save, check it out. After all, every little bit adds up!

We read and watch so you don’t have to. Three things of note...

- The Early Show on CBS examines some of the Social Security ads that are out there.

- Paul Starr over at The American Prospect incites many over his examination of the Democratic candidates on Social Security, including Ezra Klein and Megan McArdle who both have something to say about raising the cap on taxable earnings.

- Josh Marshall over at Talking Points Memo also comments on the Democrats and Social Security, with some reaction from the National Review Online.

The House Financial Services Committee is voting on a bill today that is supposed to reform the mortgage industry and prevent the kind of abusive practices that have been widely reported over the last months.

Both the NY Times and the Wall Street Journal today have something to say about the bill. Neither of the editorial pages likes it, albeit for different reasons. The Times says the bill doesn't hold Wall Street accountable enough; the Journal says Congress is trying to punish business for the "excesses of the unscrupulous few," which will give fewer would-be home buyers a shot at the cornerstone of the American Dream.

What both editorials seem to get is that something's gotta give - bad lending practices led to the credit market crunch and reform is needed.

We'll see what comes out of the committee today, but whether you read the Times or the Journal, it's clear the bill needs stronger accountability AND opportunity for both sides. And they're not mutually exclusive.

USA Today has a call on their website today for people who are turning 62 next year. Appears they are looking at 21st Century retirement, so if you are someone who is paving a new path to retirement, check it out. The more people hear about the different ways we are retiring, the better they can plan for the next leg in the journey!

Ray linked to it this morning, but a little more context… yesterday’s Washington Post poll is echoing what we have seen from AARP members in New Hampshire and other primary states– voters see health and financial security issues as the top domestic issues. Today, AARP South Carolina is releasing a poll of AARP members in South Carolina that are likely primary voters with similar results. Both health and financial security are weighting heavily on the minds of voters, now candidates need to propose what they are going to help people manage both of these things.

Fellow bloggers over at the OMB Watch Blog put in a plug for yesterday’s testimony from AARP’s CEO Bill Novelli. Testimony here and subsequent hullaballoo here and here. Making sure that Social Security is around for the long term is a fixable problem that will involve tough choices for all generations. But the real crisis is the exploding costs of health care, and it’s good to see that there are other people that get it. I am sure this is not the end of this discussion and you can bet we’ll be keeping tabs on it as it unfolds.

More debating last night from the Democratic Presidential candidates, with Social Security taking center stage for part of the evening. For those of you who were out trick-or-treating early, AARP comments here, and a sampling of some other folks:

Marc Ambinder with a quick replay;

NBC on Senator Obama and Social Security;

The Politico on Senator Clinton and Social Security;

And just because... Ed Morrissey at Captain's Quarters on how you know there has been too many debates.

Today, the Senate Budget Committee is going to be talking about the long term challenges of Medicare and Social Security, with lotsa folks testifying, including AARP CEO Bill Novelli. Starts now, you can watch here.

Yesterday, Ray linked to the Robert Ball column in the Washington Post, which caused comments aplenty in the blogosphere yesterday.

Some highlights:

Kevin Drum, Political Animal recognizing the challenges for Social Security are not insurmountable

Jared Bernstein, TPM Café on Social Security and its’ connection to tax policy.

Brian Angliss, Scholars and Rogues calling for politicians to make the hard choices.

Enjoy!

The Clinton campaign has put together it’s own ad on Social Security- link here.

The candidates are continuing to talk about the issues… Senator Barack Obama has a new ad about Social Security and former Mayor Rudy Giuliani has a new ad on health care. Good to see candidates focusing on health and financial security; we look forward to hearing more about these issues in the coming weeks and months.

An interesting article this week in The New Republic by Jonathan Chait about what he deems “entitlement hysteria”. He brings up, correctly, that there’s a lot of talk, but not a lot of action in Washington on the long term health of Medicare and Social Security. Chait also argues that the reason for inaction is a lack of urgency and a lack of permanency. While this is somewhat true (nothing will fall apart tomorrow), what Chait is off on is the impact. For many (especially considering the housing market AND lack of savings), Social Security may be even more important in the future. While people still need to save and build a nest egg for themselves, they also need something they can rely on in retirement, which is what Social Security is all about.

When it comes to Medicare, Chait is right on – the biggest challenge to the future of Medicare, and health care more generally, is cost. That’s why it’s time the Presidential candidates start to address this issue, as well as financial security. The cost of inaction is too high, not just for us, but for the next generation.

Today, Congress is hard at work talking (not doing anything just yet) on financial security issues, including mortgage reform, retirement plans, and 401k fees. Why should we care? If you want to even think about retiring, you have to consider getting a mortgage and saving for retirement. How can Congress help? By passing legislation regulating predatory lending and ensuring everyone has an opportunity to save. We’ll keep you posted on what they’re doing.

I know it is close to 80 degrees in most of the northeast today, but eventually it will get cold. And some people have trouble affording keeping their homes heated. According to a recent blog posting by David Certner, funding for LIHEAP isn’t keeping up.

Winter doesn't mess around. That’s why Congress shouldn’t mess around either.

Presidential candidates are out and about chattering about health and financial security. The latest? Senator Biden is expected to announce his health care plan in Iowa today. And former Senator Fred Thompson was just out and about in Florida talking about Social Security yesterday.

It’s great that candidates are talking about these issues, now we need to hear some details. And see some action.

Blogs have been talking about 10 Questions, a new opportunity for people to ask the candidates questions about the issues they care about. It is sponsored by blogs from both sides of the aisle, as well as the mainstream media and looks like it will be quite interesting and, more importantly, another forum to get candidates to address health and financial security.

Intro video below, check it out!

New poll out of Florida today, with AARP members (both Democrats and Republicans) saying that they are likely to change their vote on key issues like health and financial security. What’s really interesting is that voters say they don’t know enough about candidate positions on these issues to make a choice. Sounds like voters are waiting for the candidates to talk about these issues before they are going to make any decisions.

To collect Social Security that is… Yesterday, the first Baby Boomer filed for Social Security. Behind Kathleen Casey-Kirschling are the over 80 million Americans who will retire in the next 20 plus years. Knowing this is coming, it seems like a great time to start looking at the ways to make sure that Social Security is around for the next generation.

Real solutions will involve answering difficult questions and making tradeoffs. So what’s the benefit in this? Making sure your kids will have something they can rely on when they need it.

Candidates left and right are talking about important financial security issues today. Senator Hillary Clinton unveiled a plan for universal 401ks and Senator John McCain outlined retooling job training programs for older workers. It’s great to hear the candidates bringing up these issues if only to spurn a debate and discussion among the field. Hopefully we’ll hear more from other folks in the coming weeks.

A CNBC online poll asks,” What is the most important economic issue the next president should focus on?” with the choices being taxes, free trade, government spending or health care. It’s nice to see that they included health care as an economic issue.

With the debate happening at 4 pm today, it may be a chance to impact the questions. Vote here.

IowaVotes 2008 picked up an AARP poll about likely Democratic caucus goers, which shows that health and financial security are top issues. With the caucus creeping ever closer, these results serve as a reminder about how important these issues are to the 50+ voters.

Full survey here.

Interesting column from Robert Samuelson about Social Security and Medicare. Look, we know all know the programs need to be strengthened so everyone can afford to grow older. Samuelson is missing the full point. As both Matthew Ygleasias of the Atlantic and CBO Director Peter Orszag note, the growing cost of health care is the root of the problem. That’s the real problem politicians need to start addressing.

Hispanic blogs are abuzz here and here with the latest about older Hispanics- they need Social Security and without it, more than half would be barely be able to have a decent standard of living (ie. poverty level). With companies running away from pensions obligations faster than a speeding bullet and folks not planning or saving for retirement, it makes reforming Social Security for generations to come even more important. It also makes it even more important to help people save for their future. Something like an automatic IRA would help people. Even if you saved as little as 1 percent of your salary, it adds up.

Update 3:40 PM: Original research here.

From today’s Washington Post chat, a great reminder that these issues are not just something for those who are 50 and over to be concerned about… everyone can only hope they’re lucky enough to worry about enjoying the second half of your life.

Washington, D.C.: First all, thank you for taking the time to respond to my inquiry. I am concerned about the financial affairs of my parents whom are both in their early 50s but as of now do not have a dime saved for retirement. They still have about 120K left on their mortgage. Because they do not have any savings after my dad lost his job and putting four kids through school they have discussed worst case scenario would be to sell the house and downgrade in 10 years if necessary. They now both work descent jobs making about 45K each. What would you recommend they do now to start preparing to retire comfortably. Thank you.

Click here to see the answer.