Social Security Benefits to Rise 1.7% Next Year

Social Security benefits will rise by 1.7 percent starting in January, the Social Security Administration announced Wednesday. That’s a tad higher than this year’s 1.5 percent increase. It’s also the fourth straight year that the cost-of-living adjustment was below 2 percent for nearly 59 million retirees, disabled workers and their families. The adjustment amounts to about $22 a month for those who receive the average monthly benefit of $1,302. >> See AARP CEO Jo Ann Jenkins’ statement on the COLA “The …

Are Lenders Driving Student Loan Borrowers Into Default?

Borrowers struggling to repay private student loans say they have little choice but to default because lenders won’t revise payments to make them affordable, according to a new report by the Consumer Financial Protection Bureau. “We are hearing from consumers that they are driven into default because private student loan companies are not providing concrete loan modification options,” CFPB Director Richard Cordray said in a statement. “Struggling private student loan borrowers are finding themselves out of luck and out of …

How to Be Really Rich With Less Money

Most people define their net worth in dollars. As a financial planner, I define net worth in time. Allow me to explain. When I ask people to tell me what money means to them, I hear words like freedom, security and independence. Money, and having enough of it, allows us to do whatever it is that makes us happy. Reframing wealth as time turns some millionaires into paupers, and it makes those with $250,000 in 401(k) savings into the very …

Financial Planning for People With Dementia

As boomers move into their late 60s and beyond, the country is likely to experience a growing number of individuals with dementia who have difficulty managing their financial affairs. This means financial advisers must be trained to recognize the early signs of cognitive impairment among clients and then plan for deteriorating mental health that may occur over many years. In addition, policymakers must bolster protections against financial exploitation to protect older consumers with dementia. >> 10 Items Where Coupons Save …

Should You Sell When Your Fund Manager Quits?

So, the star manager of your mutual fund leaves. Should you bail, too? It’s a question on many investors’ minds now after famed bond manager Bill Gross announced Friday he was leaving the company he founded, Pacific Investment Management Co., to start another fund at rival Janus. The Wall Street Journal reported today that investors so far have pulled $10 billion out of Pimco —  and $90 billion more may follow. “You have to be careful not to have a knee-jerk …

The Financial Burden of Being a Family Caregiver

Caring for family or friends is not just a matter of love and time, it’s also a matter of dollars and cents. According to a new survey from Caring.com, nearly half of caregivers spend more than $5,000 per year — a whopping $25,000 over the average caregiving stint of five years. And many spend far more. Complicating things is the reluctance of caregivers to talk about finances: Seven out of 10 have not spoken with loved ones about how to …