Are Millennials Becoming a Generation of Renters?

In the aftermath of the 2008 recession, boomer parents were besieged by millennial children boomeranging home to reclaim an old bedroom. Now our adult children are leaving the nest once again as they find work and perhaps a significant other. But where are they moving? And are the making the leap to homeowner? For decades, after a sojourn in the city, young adults typically headed to suburbia with their growing families for a better lifestyle. However, while millennials flocked to …

Few African Americans Take Advantage of Retirement Planning Products

Recent research shows that most African Americans/blacks age 50-plus use financial products, such as checking accounts and savings accounts. But only 1 in 10 use retirement planning products, such as a 401(k) plan or individual retirement account (IRA). Millions of Americans haven’t saved any money for their golden years, and millions of others haven’t saved nearly enough. According to the Federal Reserve, the median balance of retirement accounts totals less than $60,000, and many African Americans/blacks have saved even less. >> AARP …

Why You Should Pay Down Your Mortgage

Many in the financial services industry will advise you not to pay down your mortgage. I can’t disagree more. Why? Because a mortgage is essentially the inverse of a bond: Mortgage: borrowed money where you pay someone principal and interest. Bond: money you lend where the borrower pays you principal and interest.   It’s that simple. For example, the high-quality bonds I wrote about here recently, or bank certificates of deposit (CDs), will pay you roughly 2 percent. The average mortgage rate is about 4 percent. My conclusion …

Jean Chatzky: Our Relationship With Money Is a ‘Hot Mess’

Jean Chatzky has a few choice words for how most folks describe their relationship with money: Confusing. Frightening. Chaotic. Stressful. Precarious. “For two decades now, I’ve been watching how we make our money, save it, spend it, borrow it, invest it and protect it,” Chatzky told an audience today at the AARP Ideas@50+ conference underway in San Diego. “And I can tell you that, overall, our relationship with money is a hot mess.” Chatzky, AARP’s financial ambassador, is a best-selling author and …

Is Rising Mortgage Debt Threatening Retirements?

Older Americans are carrying more mortgage debt and have accumulated less home equity than their peers a decade earlier, according to a report by the Consumer Financial Protection Bureau. The median mortgage debt for those age 65 and older rose 82 percent to $79,000 from 2001 to 2011, according to the agency. And though delinquencies and foreclosures have decreased since 2012, they had increased fivefold between 2007 and 2011 among older homeowners, the CFPB reports. “A home can be a place of …

Do You Worry About Money? Join the Club

Whether you’re nearing the end of your working life or still several decades away, Americans all share the same financial fear: Will I have enough money to retire? More than two in three Americans ages 30 to 64 say their top financial worry is whether they’ll be able to save enough to live reasonably well in retirement, according to a Gallup poll released this week. Not being able to pay for medical costs was the top money fear for people …