Financial Planning

Renewable Energy Myths Myth #1: Renewables are an insignificant source Myth #2: Renewables can replace fossil fuels Myth #3: Renewables are too expensive Myth #4: Variability dooms renewables Myth #5: Cheap natural gas is an enemy of renewables Myth #6: Renewable energy means millions of new green jobs

Parents can gift a portion of their home equity each year to one or more children or relatives

By 2030, the elderly population is expected to be larger than young Americans. The pool for caregivers will be smaller. The most populous caregiver age group is 45-64; those most likely to need long-term care are those age 80+. According to AARP, the caregiver group is expected to fall to 4 (caregiver) to 1 (care needed) by 2030, compared to > 7 to 1 in 2010.

 

 

Credit bureaus sell dozens of different credit scores; some are “educational,” designed for consumers, some generic, used by lenders, and still others are designed for mortgages or car loans.

According to CEIC Data, the July 2013 estimate for the entire 2013 calendar year was that the U.S. represented ~ 22% of world GDP, China 12%, Japan 7% and Germany 5%. The U.S. consumes 13% of the world’s merchandise, China consumes 10%, Germany 6%, and Japan 5%. Australia sends 29% of all its exports to China, South Korea 24%, Chile 24%, Japan 18%, the U.S. 7%, and Germany sends just 5% of its exports to China (source: CEIC Data, WSJ article, July 2013).

 

A large number of people believe Medicare also provides long-term care. What they do not know is that those benefits are quite limited and mainly apply to brief rehab stays in nursing facilities. Because of these severe limitations, advisors should counsel their clients about the pros and cons of long-term care.

 

The 10 most common types of investor complaints the SEC resolved in fiscal 2012 are shown in the table below (source: WSJ, June 2013).

 

10 Most Frequent Complaints to the SEC

 

Complaint Type	Number
Ponzi/pyramid scheme

According to an annual Gallup survey, for households with an income of $75,000+ per year: 39% prepare a detailed budget each month, 43% prepare a long-term financial plan, 35% use a CPA or financial planning to assist in planning, and 53% use a computer or online program to manage their money. The June 2013 table below provides a sampling of average household spending, based on pretax income.

 

Annual Household Spending

 

For the 1992-1993 academic year, the average debt for a BA graduate was $10,000; for the 2010-2011 year, the number was $37,100. In 1992-93, the percentage of students graduating with student or parent loans was ~ 45%; for the academic year 2010-2011, it was 67% (source: FinAid.org).