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| Post Number: 11
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| Post Number: 12
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bianca 
Group: Members
Posts: 1882
Joined: Dec. 2006
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Posted on: Jul. 10 2009,1:16 pm |
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nphilbro- agreed, great assessment.
Not so sure on the greatest generation though jim. Most of them are/were definitely great at pinching pennies but some of them to too much of an extreme. Doesn't help stimulate the economy much when hundreds of thousands of dollars are stored in their basement freezer because they are "afraid" the banks are going bust. 
Positively, without a doubt, our children SHOULD spend time with their great grandparents just to get a clue on how things were for some of these people and WHY they are the way they are. Most of the kids don't hear about this stuff in school anymore and unless it's put on a video game they won't hear a good part of our history.
This upcoming generation scares me. Most of the kids today are so coddled. IMO, a lot of it stemmed from both parents having to work to support a family and/or divorce with mom and dad overcompensating with fast-food, video games, cell phones and "buying" them things rather than spending time together.
We are a very selfish self-serving society today, IMO, people are mostly out for themselves. How many families do you know that make a point of having dinner together and just talking everynight or even one night for that matter? Terribly sad when we can't even make time for the most important people in our lives to learn from. Some of my greatest lessons in life are from grandparents and great grandparents. Our kids today are missing out. 
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I believe in the patriotism and energy and initiative of the average man. Woodrow Wilson
Early in life, I had to choose between honest arrogance and hypocritical humility. — Frank Lloyd Wright (1868-1959)
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| Post Number: 13
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bianca
Group: Members
Posts: 1882
Joined: Dec. 2006
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Posted on: Jul. 10 2009,1:28 pm |
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CC-
Been meaning to inquire on something for awhile. Politics aside, how is business going? You are in the personal savings/ investment business, or something near that line of work, correct? I have just been wondering for sometime now how peoples spending habits are going in that sense. Have you seen any changes in the past year? What is the median ages of the investors you serve/advise etc? Do you see any younger ones inquiring say 30 yo or younger?
........just curious.
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I believe in the patriotism and energy and initiative of the average man. Woodrow Wilson
Early in life, I had to choose between honest arrogance and hypocritical humility. — Frank Lloyd Wright (1868-1959)
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| Post Number: 14
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| Post Number: 15
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Common Citizen
Group: Members
Posts: 4818
Joined: Jul. 2006
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Posted on: Jul. 10 2009,2:55 pm |
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(bianca @ Jul. 10 2009,1:28 pm)
QUOTE CC-
Been meaning to inquire on something for awhile. Politics aside, how is business going? You are in the personal savings/ investment business, or something near that line of work, correct? I have just been wondering for sometime now how peoples spending habits are going in that sense. Have you seen any changes in the past year? What is the median ages of the investors you serve/advise etc? Do you see any younger ones inquiring say 30 yo or younger?
........just curious.
Thanks for asking...this subject is a passion of mine.
I do a lot of personal financial planning for families. One thing that is always a road block is that people think they have to be rich to create a sound plan...another common reason is that many are financially embarassed to sit down with a planner.
Find a planner that you trust and that cares about making you successful. If you're successful, the planner will be successful. It doesn't matter where you are at in life financially, find one that is willing to help you. They are out there.
The financial services industry has a black cloud over it right now. Mostly due to the dip$hits on wallstreet and the regulatory bodies (We have the regulations. They just need to be enforced.) Local advisors are just as disgusted with what's going on in Wall Street just like our clients are.
The majority of people are riding it out. My company has a bi-monthly security index that is a measure of Americans’ sentiments towards their overall financial security. Based on a national telephone survey of 3,000 Americans, the index tracks how secure Americans feel about their own financial situation in relation to their stage in life. Survey questions range from taking care of short-term needs and protecting current assets to planning for the future. On a scale of 100, 100 being financially secure, it is currently at 64.6 points, down from 70 where it peaked last August.
I have been doing numerous 401(k) rollovers from people being laid off or being fired. I've noticed people getting fired from their jobs for very minor reasons. Reasons that would normally warrant a reprimand but not a firing and these are usually coming from publicly traded companies.
More and more younger familes are opting for term life insurance than they are traditional life insurance because of the cost. Even more are searching for their own health insurance because their employer has changed the benefit or people are finding new jobs that do not offer a health plan.
Numerous auto and home insurers have raised their rates in the past 6 -12 months which causes more and more people to shop to save on costs. My recommendation is to not buy insurance on cost but on quality because many of these insurers are hurting financially. You'll want to go with a company that has a strong balance sheet because you want them to be there when you need them most. Don't ignore that part of the equation.
The majority of my clients are over 40, empty nesters. They tend to have more discretionary income to put towards their finances and they are more serious about retirement. The flaw with this is that it is so much more expensive to fund retirement starting at this age then it would at age 25. My favorite clients are the enthusiastic 20 something's. They are making more money than they ever have. They haven't been loaded down with a ton of debt yet and if they're willing to take advice, they will be in excellent shape come retirement or during a catastrophic event. I would hate to see any of my clients become the subject of a local fundraiser because they weren't prepared, but it happens more than you think in our little burg.
I have also noticed a lot more NSF issues then in past when it comes to paying for insurance. This is a sign that many are having cash flow issues.
As far as spending habits...
I saw the most dramatic change in spending habits last year when gas was at $4 a gallon. Everyone was more conscience of where their money was going. Since gas has backed off I've notice an uptick in my property/casualty business insuring toys like campers, boats, motorcycles, etc... The only place I've seen a decline is insuring new autos. People are keeping their vehicles longer so not a lot of turn over there in my business.
Like I said, many clients have different priorities when it comes to financial security for their families. It is not uncommon for a family to only have $50,000 in life insurance, claim they can't afford to have any more to protect their family, yet they're paying for 3 cell phones, cable tv, the internet, own a 4 wheeler, a snowmobile or two, maybe a camper, or take a trip to (enter vacation destination) every year. It just comes down to what people think is important in their lives. The familes that can't afford the toys usually have a difficult time affording anything. 2 snowmobiles and a camper doesn't go very far when one of the income earner's dies or becomes seriously ill and now the family has 50% less income coming in. Talk about a change in lifestyle. Don't get me wrong...I love to have fun too, but most families find it challenging to balance "having fun" with protecting the family.
In my opinion, financial security has taken a back seat to the "got to have it now" gizmo of the day. Most of my friends are not wealthy by any means, but they sure do love their toys and their gadgets.
Freeborn county has been pretty stable from an economic standpoint, imo.. I'm not saying that we have a strong economy...just a stable one. Imagine what would happen to Austin if Hormel shut its doors? We do not have any one single industry supporting our town like Austin has on that type of scale. Sometimes that can be viewed as a good thing.
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| Post Number: 16
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| Post Number: 17
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bianca
Group: Members
Posts: 1882
Joined: Dec. 2006
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Posted on: Jul. 10 2009,3:21 pm |
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CC-
Thanks for all of the input, and clear response. I had been curious for some time about how this has or is changing. Very interesting information.
I had heard of people losing their jobs around here for bogus reasons for awhile. Just last week a friend had this happen to her. Their reason: Punching in (less than 5 mins) late for her lunchbreak twice in one year....and it wasn't even in the last couple of months. 
I've heard of others who have a new three strike policy. One man got all three in one day and was escorted out the door. #1 late that day #2 dropping a radio and the third he made an unsavory comment to a gal he apparently didn't want help from. My opinion, the man would've probably still had a job if he had just stayed home on his "bad hair day." This company also has a third "late" or "call-in" in one year and you're automatically fired. The sad thing is that some of these people actually try it and find out they meant business. 
I'm sure we've all heard how employers are downsizing so I was curious to know if people cash their 401's in for living expenses until they find a new job or re-invest the money.
Again, thanks for the info. 
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I believe in the patriotism and energy and initiative of the average man. Woodrow Wilson
Early in life, I had to choose between honest arrogance and hypocritical humility. — Frank Lloyd Wright (1868-1959)
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| Post Number: 18
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Common Citizen
Group: Members
Posts: 4818
Joined: Jul. 2006
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Posted on: Jul. 10 2009,3:52 pm |
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Usually people will roll everything to an IRA but I recently had an extreme case where both husband and wife lost their jobs within about a month of each other. Two small kids and a mortgage. The only savings they had was their retirement plans. They rolled them into an IRA. They took an early distribution of 75% of their money and they will leaving the other 25% in a safe investment should they need that as well in the future.
Even though they lost their job they actually won't have any less of a tax bill at the end of the year. Their distribution is counted as ordinary income plus the 10% early withdrawal penalty. In their case, they could use the distribution to pay for their health insurance premiums to avoid the 10% penalty.
Don't you just love it when the gov't kicks you when you're down? I wish the Gov't would waive taxes and penalties on qualified plan distributions for people who have lost their jobs, up to the amount of their income lost, until they can find a new job.
Only as a last resort, should people take an early withdrawal from their IRA's or 401(k)'s. Keep in mind...if you have a loan on your 401(k) and you lose your job, it becomes taxable income with a 10% penalty if you do not pay off the loan before rolling it out of the company.
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| Post Number: 19
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jimhanson
Group: Moderator
Posts: 8491
Joined: Aug. 2003
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Posted on: Jul. 10 2009,4:30 pm |
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CC--great response, good advice. I was particularly interest to read about the UPTICK in toys, campers, etc. and that consumer confidence was only down 5 points.
Despite all of the doom and gloom, we really DO ride it out fairly well here in the Midwest. We don't have the big highs of the Coasts, but we don't have the big lows, either.
Yet another example of "Nothing happens in the U.S. unless it affects the media centers." 
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"If you want to anger a Conservative, tell him a lie. If you want to anger a LIBERAL, tell him the TRUTH!"
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| Post Number: 20
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jimhanson
Group: Moderator
Posts: 8491
Joined: Aug. 2003
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Posted on: Jul. 10 2009,4:39 pm |
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(bianca @ Jul. 10 2009,2:59 pm)
QUOTE QUOTE Tom Brokaw thinks so, I think so, and enough others that the title stuck. Well.............in that case if TOM BROKAW said it and wrote about it it MUST be true.  
Maybe I need to slow down a bit for you.
Tom Brokaw wrote the eponymous book The Greatest Generation--that's why I mentioned him. Ever since he wrote the book, that's what people have been calling that generation.
You DID know that he was the author of the book, don't you? Otherwise, your response would make no sense.
Mention GREATEST GENERATION to MOST people, and that is the generation MOST people will identify with--hence QUOTE Tom Brokaw thinks so, I think so, and enough others that the title stuck.
Tom Brokaw is also a liberal--a bone I threw to you. 
You obviously disagree. I asked you pointed questions regarding YOUR selection of any OTHER generation over the "Greatest Generation." You didn't answer. Did the Hayson's raise ANY kids that know what a question or interrogatory is?
Here they are AGAIN, so you don't have to go to the effort to look them up. QUOTE
Can you name any OTHER generations that went through not only depression and the greatest worldwide war in the history of the world?
Can you think of any OTHER generation where we had that many casualties?
Can you think of any OTHER generation where the country came together to oppose a common threat?
Can you think of any OTHER generation that sacrificed material comforts for the good of others?
Can you think of any OTHER generation that sacrificed so much for their own kids and grandkids?
Can you think of any OTHER generation that progressed so quickly--from an agrarian society to a superpower?
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"If you want to anger a Conservative, tell him a lie. If you want to anger a LIBERAL, tell him the TRUTH!"
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