The Savage Truth on Money from Creators Syndicate

Economy Finally Turning the Corner for 08/18/2009

Tue, 18 Aug 2009 00:00:00 -0700

With apologies to David Letterman, here are the top 10 reasons to believe that the recession is over — including the one reason you might not believe it's over. And a reminder that even if the recession is officially over — which won't be declared until hindsight — you might not feel it personally for quite a few months.

10. The recession is over because it's time for t ...

Updated: Tue Aug 18, 2009

A Credit Card With Training Wheels for 08/22/2009

Sat, 22 Aug 2009 00:00:00 -0700

Q: Since credit cards will no longer be offered to students under 21 years old starting in February, should I get my daughter a credit card now? She won't be going to college until next fall.

A. As I noted in a recent column, the new Credit Card Accountability Responsibility and Disclosure Act will require anyone under age 21 to have a parent or guardian as co-signer, or else be able to ...

Updated: Sat Aug 22, 2009

Cost of Credit Card Debt Soaring for 08/25/2009

Tue, 25 Aug 2009 00:00:00 -0700

Being in debt is about to get a lot more expensive for millions of Americans. Credit card issuers have been rushing to raise rates in advance of this Thursday, when the first provisions of the Credit Card Accountability Responsibility and Disclosure Act (CARD) will go into effect, with other protections starting in February 2010.

Starting this week, card issuers need to give you more tim ...

Updated: Tue Aug 25, 2009

A Look at Inflation vs. Deflation for 09/01/2009

Tue, 01 Sep 2009 00:00:00 -0700

Inflation or deflation? Which direction will the economy — and the value of the American dollar — take in the future? This is not a theoretical economic debate. It will impact the value of your retirement savings, the prospects for your career, your children's education — and your daily lifestyle.

The American economy is on a seesaw these days — tilting between th ...

Updated: Tue Sep 01, 2009

Bonds Belong in Your Portfolio for 09/08/2009

Tue, 08 Sep 2009 00:00:00 -0700

The global bond market dwarfs the global stock market. The market for bonds is estimated at $67 trillion, with nearly half of those bonds originated in the United States. That compares to a global stock market valuation of just above $40 trillion, even after the market crash.

The $33 trillion of outstanding U.S. debt includes U.S. government bonds, corporate bonds, municipal (state and l ...

Updated: Tue Sep 08, 2009

An Oft-Told Tale of Job Survival for 09/15/2009

Tue, 15 Sep 2009 00:00:00 -0700

In honor of this Labor Day holiday, here is a little fable. And like all fables, it comes with a moral at the end.

Once upon a time, in a beautiful city by a lake, there was a company that was in the business of building outboard engines for boats. It had prospered in this town for 70 years. The factory employed 850 workers, and the world headquarters building employed an equal number of ...

Updated: Tue Sep 15, 2009

Roth Window Opens in 2010 for 09/22/2009

Tue, 22 Sep 2009 00:00:00 -0700

If you have money in an Individual Retirement Account, or an IRA rollover account, you'll be faced with a big financial decision next year. Should you convert your current IRA, on which you'll pay taxes when you withdraw the money, into a tax-free Roth IRA?

Conversions have always been available to people with income under $100,000. But in 2010 and beyond, there will be no income limit f ...

Updated: Tue Sep 22, 2009

Terry's Tips on How to Buy Gold for 09/25/2009

Fri, 25 Sep 2009 00:00:00 -0700

Q: You wrote a column about gold some time back, and now I see the price is more than $1,000. How do I buy gold?

A: The very fact that so many people are now asking how to buy gold has me a bit worried. After all, the idea of investing is to buy low and sell high! Back on March 2, with gold trading at $940 an ounce, I wrote my most recent column on gold. (You can find it in my archives a ...

Updated: Fri Sep 25, 2009

Colleges Must Cut Costs for 09/29/2009

Tue, 29 Sep 2009 00:00:00 -0700

Amid worries about job losses and problems paying the mortgage, many American families are facing another financial crisis: How to pay for college.

There's no doubt a college education will be a necessity in the economy that emerges from the current recession. Even though a college degree can't prevent a layoff, it will give an edge for the jobs of the future.

But what if American ...

Updated: Tue Sep 29, 2009

Money-Market Safety Net Folds for 10/06/2009

Tue, 06 Oct 2009 00:00:00 -0700

Why did the "chicken money" cross the road? To get into a safer money-market fund.

No joke. Very quietly, and without any of the fanfare with which it was announced a year ago, the government ended its safety guarantee for money-market mutual funds. On Sept. 18, the Treasury's Temporary Guarantee Program for Money Market Funds was allowed to expire.

You might remember th ...

Updated: Tue Oct 06, 2009

Consider Long-Term Care Insurance Now for 10/10/2009

Sat, 10 Oct 2009 00:00:00 -0700

Q: Do I really need to think about long-term care insurance?

A: Headline: Last week, the Centers for Medicare and Medicaid Services reduced Medicare funding for nursing homes by an estimated $16 billion over the next 10 years. Twenty-four states already have reduced Medicaid funding this year. And $313 billion of additional cuts have been proposed by the administration to fund health car ...

Updated: Sat Oct 10, 2009

Market's Strange Anniversary for 10/13/2009

Tue, 13 Oct 2009 00:00:00 -0700

There's a kind of masochism in "celebrating" the first anniversary of Wall Street's collapse. Yet that's what the media have been busy doing these last few weeks — recounting the scary stories of Fannie and Freddie and Lehman, along with Congress' rejection of the original $700 billion bank bailout, and the day the market lost a trillion dollars — Sept. 29, 2008.

Fu ...

Updated: Tue Oct 13, 2009

Seniors: This Is Your Savage Moment for 10/20/2009

Tue, 20 Oct 2009 00:00:00 -0700

If you're a senior fortunate enough not to need to withdraw money from your IRA, you get a special break this year. For this year only, those required withdrawals have been suspended. And even if you've already taken money out, you can return it to your IRA without penalty if you choose.

Minimum required distributions from retirement accounts after age 70-and-a-half are one of the most d ...

Updated: Tue Oct 20, 2009

Don't Go Sour on Global Stocks for 10/24/2009

Sat, 24 Oct 2009 00:00:00 -0700

Q: Since stock markets around the world all "crashed" at the same time, what's the point of international investing?

A: That's a question a lot of people are asking themselves these days. International investing always was seen as a way to "diversify" risk in an investment portfolio — on the theory that if the stock market fell in the United States, markets in o ...

Updated: Sat Oct 24, 2009

Quality Retirement Still Within Reach for 10/27/2009

Tue, 27 Oct 2009 00:00:00 -0700

It was only five years ago that people were regaling me with their plans for "early retirement" at age 62 or 60 or even in their 50s! After all, back then, their 401(k) portfolios were soaring, and so were the market values of their homes.

What a difference a recession and market crash have made on the national psychology! Now people are asking: "Will we ever be able to re ...

Updated: Tue Oct 27, 2009

Money Woes Should Be the Mother of Invention for 11/03/2009

Tue, 03 Nov 2009 00:00:00 -0800

Is there any way out of America's financial woes? If you stand back and take an honest look at the growing debt and the promises we've made, the situation seems hopeless. Not only have we promised baby boomers their Social Security and Medicare benefits, we're now close to adding health care for all and money to buy a new car.

It's no wonder that foreigners who are helping fund our nearl ...

Updated: Tue Nov 03, 2009

Importing Oil, Money Hurts U.S. for 11/07/2009

Sat, 07 Nov 2009 00:00:00 -0800

Q: What is your greatest concern for America's financial future?

A: On a national basis, the two worries that rise to the top of my list (among many others) are the twin dangers of our growing dependence on imported oil and on imported money to fund government spending. Even worse, we import both from countries that are not our friends. Here's a quick look at the basics of each situation ...

Updated: Sat Nov 07, 2009

Battered Investors Tired of Hearing Recession Is Over for 11/10/2009

Tue, 10 Nov 2009 00:00:00 -0800

The American public is starting to get more than mildly annoyed at those who tell them the economy is bouncing back.

For every economist or politician who tells you the recession is over, there are a dozen people who think we're in the midst of a depression.

For every administration official who points to the success of the stimulus plan in creating jobs, there are many thousands ...

Updated: Tue Nov 10, 2009

Hope for Those Trying To Buy or Keep a House for 11/17/2009

Tue, 17 Nov 2009 00:00:00 -0800

While mortgage foreclosures continue to rise along with the growing unemployment rate, there are a few small rays of hope for homeowners in trouble — and those looking to buy a home.

Tax credit expansion:

Last week, Congress approved the extension of the current $8,000 First-Time Homebuyer Tax Credit. Instead of expiring Nov. 30, it will be available for purchase contracts s ...

Updated: Tue Nov 17, 2009

Hold the Reins on Holiday Spending for 11/21/2009

Sat, 21 Nov 2009 00:00:00 -0800

Q: The holiday season is approaching, and I know I'll spend more than I planned. How can I maintain control this year?

A: The holiday shopping frenzy is a classic example of "mind over money." For sure, you know what you can and can't afford to spend this holiday season. But just as surely as a meal of turkey and stuffing leads to a nap on the couch, those big red signs with th ...

Updated: Sat Nov 21, 2009