HealthView Retirement Planning

Look at What Credit Card Companies are Doing Now!

Some large US banks offering credit cards to consumers are instituting new credit card fees for current users who may not even be aware of these changes. CNBC’s Carmen Wong Ulrich, warned viewers of these new hidden credit card fees on Monday morning’s Today Show on NBC.

These firms have enacted new charges in a time when top line revenue and margins are being stressed.  Default rates are currently at around ten percent, which is double what they used to be. Last year, for the first time, debit card use was higher than credit card use. In the current economy, people are trying to be conservative with the use of credit. In response, banks are trying to figure out new ways to generate revenue  from their customer base in an effort to help their bottom line.

The new fees target customers who pay off their bill in full every month. Credit companies do not make any money on interest for these customers and have decided to charge them with an annual fee of $29-$99 to try to make up for some of the lost revenue. While the fee is being termed as “experimental” by some credit card companies, it is going into effect immediately to see how it works. Should customers complain or terminate the relationship with the card company, these new fees will most likely be dropped.

Another new fee is aimed at those customers who do not keep a high enough balance on their credit card. One method is to require an additional fee for customers who have a revolving balance of less than $2,400. This penalty will be in the form of an annual fee of $29-$39.

The last of the new fees is intended to target people who have cards but don’t use them regularly. Many individuals have multiple cards to build their credit, but perhaps only use one or two. The cards that are not used may be subject to a new "non useage" fee. In this situation, where turning off these cards could hurt your credit, it is important to weigh the cost of having the card.

In light of these new developments, it is important make sure you keep your eyes open for these new charges. If you do come across one, find out specifically what it is for and why you are being charged. Only about 20% of credit card companies are enacting these new penalty fees, so shop around! There are still plenty of cards that do not have these fees and are not penalizing the customer for being financially responsible during these difficult economic times.

Women Increasingly at Risk for Cardiovascular Problems

Cardiovascular illness has historically been a leading medical concern for men, but new studies show that women are increasingly at risk. A recent report in the Archives of Internal Medicine found that though heart attacks and disease continue to be more prevalent among middle aged men, their risk is decreasing whereas the risk for middle aged women is increasing.

The study looked at risk factors and heart attack incidents among a sample group of over 8,000 men and women, aged 35-54, from 1988 to 1994 and from 1999 to 2004. Researches focused on factors such as cholesterol levels, blood pressure, smoking habits, and high-density lipoprotein, all of which affect cardiovascular health. By tracking the number of heart attack incidences and evaluating risk levels based on health and lifestyle, the scientists determined individuals’ risk of having a heart attack within the next 10 years. They found that the rate of heart maladies improved from 2.5% to 2.2% among men whereas the risk for women increases from 0.7% to 1%. This, in addition to the increasing number of heart disease incidences among women, indicates that the gender differences seem to be narrowing.

The results come as a surprise to those who thought middle aged women were impervious to heart problems. “People didn’t think that women in that group were at risk for heart disease and stoke,” explained Dr. Amytis Towfighi of the University of Southern California, “But I suspect that with the growing rates of obesity, women aren’t as protected as they have been in the past.” Lifestyle seems to be the primary cause of heart problems among women, obesity being the foremost concern. The research team recommends women begin taking more preventative measures, such as improving their dietary habits, exercising, not smoking and screening, in order to decrease their risk and improve their overall health. It is clear that women must become aware of their risk for heart attacks and disease and begin to takes steps to prevent and offset future problem. 

Invest In Your Health

The uninsured are more likely to be unaware of chronic illness, compared to those with health insurance. It makes logical sense that the uninsured are not going to be diagnosed, but also brings up an important issue. Those who are not insured will ignore symptoms of a treatable illness, ultimately creating a serious issue that becomes a public expense.

A recent article from The New York Times, “Managing Disease Without Insurance”, examines the underlying issue that uninsured Americans face and the increase in overall health care costs that often result.  A new study published in the Health Affairs Journal, examines three chronic but manageable conditions: hypertension, type 2 diabetes, and high cholesterol. These conditions, when recognized and treated, are very manageable. However, when not monitored they can lead to life-threatening complications including heart attack, stroke, and kidney and liver disease. These conditions are expensive to treat.

The survey used national health data to drill down into America’s current health care situation. The study unleashed surprising statistics. Nearly 50 percent of uninsured people with type 2 diabetes are not diagnosed. This number drops significantly to 23 percent, for people who are covered under health insurance. The awareness for high cholesterol follows the same trend, as roughly 50 percent of the uninsured are not aware they have the condition. Furthermore, almost 80 percent of uninsured Americans with high cholesterol are not managing it. This percentage drops to 60 for the insured.

The objective of the study was to produce data on how controllable conditions go unrecognized in the uninsured, and create long-term problems. Along with this, the study unturned information that is perhaps even more upsetting, insured Americans who are aware they have these conditions, are not necessarily taking the initiative to control them. What else is more important than our health and well being? Americans need to take an initiative when it comes to their health. We can significantly cut down our health care costs simply but taking care of ourselves. We can protect ourselves from these manageable conditions that have become so common, just by exercise.

Regular exercise not only reduces the risk of chronic disease in adulthood, but promotes psychological well-being and a healthy body weight. The Dietary Guidelines for Americans, released by Center for Disease Control (CDC) recommends 30 minutes of physical activity, most days of the week. Go for a walk around your neighborhood. This minimum commitment could be the best thing you have ever invested in: your health.

Average Age of Retirement Increasing

Deciding when to retire is becoming an increasingly complex question and many Americans are opting to delay their retirement plans. According to a report from Sun Life Financial, 65% of Americans feel they have to put off retirement and an unprecedented 28% expect to work full-time past the age of 67. This study also found that 84% of their sample group listed financial concerns as the primary reason for continuing to work, whereas as recent as 2008 the top motivation was to remain mentally active. A growing number of people are no longer choosing to work but have to work. As a result, the expected age of retirement has jumped to 67, several years older than what most people realized."Instead of retiring at age 63, which is the retirement age of the average person, I would say 68”, Steve Sass, associate director of research for Boston College's Center for Retirement Research, explained in a recent article.

Staying in the workforce is advantageous in several ways. In addition to augmenting income, Social Security benefits increase by 7% to 8% for each year a between ages 62 and 70 someone does not sign up. Furthermore, check amounts are based on an individuals 35 highest-earning years and by working longer the impact of earlier lower salary years can be mitigated. By remaining employed, people can decrease their costs while simultaneously increasing their income. Currently, 25% of Americans aged 65 to 74 are employed and 9% of adults aged 75 to 85 continue to work. These numbers are expected to significantly increase as aging Americans adjust their retirement plans to re-coop their losses and tackle growing expenses, such as health care costs. It is clear that the necessity of remaining in the workforce during today’s economic climate will impact retirement planning strategies and the makeup of our workforce. 

Put Your Cash to Good Use

In the today’s economy, it can be unclear what to do with extra cash you may have.   A recent article for CNN Money, “What to do with $1000 now”, makes smart and easy suggestions as to how to put a little idle cash to use. 

Most importantly, make sure you have a sufficient safety net or emergency fund.  This should be your number one priority if you have extra cash sitting around. In the event of a catastrophe, such as a job loss, you should have seven months worth of expenses set aside.  Having a strong emergency fund will not only give you peace of mind, but is a smart way to put cash to good use.

 Another idea is to upgrade your home appliances. This many sounds excessive, but replacing old machines with newer, energy efficient ones, can save you money in the long run. Not only will the new machines run more effectively, cutting electricity and water bills, you can also take advantage of the government program for home appliances. Similar to cash-for-clunkers, the Obama administration started the incentive program in an effort to help stimulate the economy and better the environment, only this time for home appliances. You can receive rebates from $50 to $250 for each appliance you purchase. The government has set aside $300 million for program, so take advantage of the opportunity! One example of an eligible appliance is a GE washing machine; while the machine retails at $700, you will end up saving money in the long run with $120 in annual utility savings. 

Putting money to use now to save money in the long run, sounds like an attractive solution. Here is another money saving tip: join a gym! With extra money you have today, you can join a gym and cut health-care bills in the future.  The average obese American spends nearly $1500 more in annual health-care costs, compared to someone of a healthy weight.  Exercise is important for your health; not only will you feel better, but avoid medical bills down the road.

With today’s low interest rates and the state of the economy, there are many viable options rather than just placing extra cash in a savings account. I hope you might find one of these ideas helpful. 

What to do with $1,000 now? Top Off Your Emergency Fund

Low interest rates and the recent stock market surge make this a challenging time to find the best places for your extra cash.

Given today's shaky job picture, you need fully six months' worth of expenses set aside in a liquid account that you can raid if calamity strikes. Fall short? Adding to that stash is a no-brainer. Because yields on many of the typical cash options look rotten -- six-month Cd's are kicking off an average 0.62%, and money-market funds are hovering around 0.05% - your best bet is a high-yield on line savings account. One example: Ally Bank (ally.com; 1.75% yield; no minimum). Find other solutions at bankrate.com.

The Benefits of Working During Retirement

Retirees or those approaching their retirement may want to rethink their plans. According to a recent study released by the Journal of Occupational Health, working part-time or temporary jobs post-retirement is better for your physical and mental health. By tracking a broad range of health and lifestyle factors among a group of 12,189 aged 51 to 61 over a six year period starting in 1992, scientists from the University of Maryland concluded that those who continued to work suffer 17% fewer diseases. Furthermore, participants who worked within their previous field of employment scored higher on their mental health evaluations than their non-working peers. Interestingly, those who took on work in an unfamiliar field did not experience the same physiological benefits. “If you’re working on something your are totally not familiar with…then you have to readjust to the jobs and for older adults, it’s pretty challenging,” explained Dr. Mo Wang, who co-authored the study. Furthermore, those who leave their area of expertise typically do so for financial reasons, which can be a source of anxiety.

 

In today’s financial climate, these findings offer an extra incentive for retirees to take on bridge employment opportunities. As companies continue to look for ways to cut back on costs, they are taking on more part-time and temporary employees rather than full-time workers. Bridge-employees are becoming an increasingly attractive labor pool due to their experience and availability. Simultaneously, retirees are finding it increasingly difficult to support their lifestyle during a recession and are more open to going back to work on a limited basis. There therefore is a demand for their labor, a financial impetus and potential health benefits, all of which may lead to a change in retirement patterns.

Recent Study on Breast Cancer Screening

This October marks the 25th annual National Breast Cancer Awareness Month (NBCAM), a movement and organization dedicated to educating the public on this epidemic. To this end, a recent study undertaken by Cambridge Hospital Breast Center spear headed by Dr. Blake Cady of Harvard Medical School was released this month on the viability of regular screening as means for reducing breast cancer related deaths. By studying the correlation between screening frequency and fatality rates among a sample group of over 6,500 cases spanning a nine-year period, it was revealed that three quarters of breast cancer deaths occurred among women who do not have regular mammograms. Cady and his colleagues discovered that women who had at least two mammograms over a two year period had a 4.7% mortality rate versus a 56% for those who either infrequently or did not screen for breast cancer. Though screening has already been established as means to battle the disease, the extent of its success had not been accurately determined. Dr. Lori Pierce of the University of Michigan in Ann Arbor, confirms that these, “…results clearly support the finding of the trials, (and) that we must encourage our patients to undergo routine mammographic screening."

 

Beginning at the age of 40 it is suggested that women begin screening for breast cancer, yet many women choose not to get regular mammograms, which are key in detecting the disease in its early more curable stages. "Even among women in their 50s and 60s who are ideal candidates to be screened, there are many women who are not getting screened and really we should put lots of effort into trying to get them screened," explains Cady. It is hoped that these studies and the increasing public focus on breast cancer will persuade more women to take preventative measures and that the mortality rate will decrease.